Why a Software Company Moved on Multiple Fronts to Protect its Business Model

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Why a Software Company Moved on Multiple Fronts to Protect its Business Model

CASE STUDY

WHY A SOFTWARE COMPANY MOVED ON MULTIPLE FRONTS TO PROTECT ITS BUSINESS MODEL WWW.FULD.COM

This Means War

A software company enjoying majority market share for an in-demand computing capability found itself threatened on several sides by a range of competitors and potential market entrants. To develop a point of view on the market and competitors, and effective positioning to be used against them, the company turned to Fuld + Company to conduct a war game. From the war game, there emerged a comprehensive and detailed strategy, now being implemented, that is designed to defend and expand the client’s market on all fronts.

Case Overview

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The Next Battleground in Computing Key Business Challenges

With demand heating up for products and services in this innovative computing area, heightened competition was inevitable. A relatively new entrant in the market space had suddenly become highly aggressive, announcing new products, making acquisitions and entering into partnerships with hardware and software companies. At the same time, another major software company announced its intention to offer new products in the space. In addition, two internet giants and a number of start-ups had the potential to disrupt the market in the short- to medium- term.



Worrisome Vulnerabilities Key Business Challenges

As with many innovative software solutions, improvements come fast and our client had not stood still. But a recent alteration of their products’ architecture had created some transition costs and investments of time for their customers, reducing the switching cost barrier for competitors. At the same time, the aggressive new entrant was pushing its existing customers toward a range of different platforms for its products.



Building the Right Framework The Fuld Approach

Applying war game facilitation skills honed over three decades, Fuld + Company conducted a war game, with client executives placed on one of three teams – their company, the new entrant, or the major software company. Using proven strategic frameworks for analyzing competitors, markets, and strategies, we led the participants through a complex and multi-dimensional exploration of the moves and counter-moves that might occur in the fierce competition to come. Participants built strategies for the companies they represented. They addressed competitive issues and responses and identified risks and opportunities. Most importantly, they concluded by creating a detailed strategic action plan.



Strategy Into Action Key Business Impact

The client is now implementing the comprehensive strategy: clear differentiation of the company’s products; new approaches to direct sales, industry verticals, and existing channel partners; and the identification, segmentation, and cultivation of new channels and partners. As the company implements the strategy, it is conducting follow-up meetings with Fuld + Company to ensure smooth strategy execution and to discuss ongoing competitor monitoring.



A Game with Real-World Consequences The Fuld Review

In this engagement, as in the many similar strategic exercises we’ve conducted, the client was able to:

Reduce the risk of being unprepared for changes in the market

Understand the macro-economic factors that affect industry structure and dynamics

Expose corporate blind spots and assumptions

Understand their strengths and weaknesses and those of their competitors

Stress test existing strategies

Efficiently assess issues, develop options, build consensus, and assign action items to individuals or teams

In addition, by working through strategy in a large team, the client has created widely shared ownership of the strategy that is essential for successful implementation.



Think a similar solution could work for your organization?

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About Fuld + Company

WHO WE ARE

Since 1979 Fuld + Company have pioneered competitive intelligence, and today we work with leading companies worldwide to deliver the competitive and market insights they need to make better business decisions. We don’t rest on our history and past successes. This means working hard to deliver uncompromising analysis that generates sound advice and earns us enduring partnerships with our clients.

WHY CHOOSE US

We are driven to expose our clients to insights about their industry, their competition and a changing market; designed to help avoid surprises and industry shocks. Through deep research, penetrating analysis and strategic gaming + advisory expertise, our team of professionals help you identify and solve tactical and strategic challenges. We help reduce the risks associated with business-critical decision making.

COMPETITIVE + MARKET INTELLIGENCE

Competitive + Brand Insights

War Games / Competitive Simulations

Market Analysis, Share + Sizing

Supply Chain Mapping

GO-TO-MARKET STRATEGY

Brand + Product Positioning / Launch Support

Product Portfolio Roadmap

New Market Entry / Segmentation

Value Chain Analysis

Life Cycle Management

Win / Loss Bid Support

CORPORATE STRATEGIC PLANNING

Early Warning + Scenario Planning

Sales Force Effectiveness

Merger/Acquisition + Licensing

Innovation Strategy

Business Model / Industry Convergence



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Why a Software Company Moved on Multiple Fronts to Protect its Business Model