Video Business - Adobe Company - Case Study Example

BUSINЕSS САРSTОNЕ: VIDЕО BUSINЕSS САSЕ RЕРОRТ АSSЕSSМЕNТ Name Course Instructor’s Name Date of Submission Table of Contents Executive Summary 3 1.0Issues 4 2.0Causes 5 3.0 Alternatives 5 4.0 Decision creteria 7 5.0 Recommendation 9 6.0 Implementation and Implication 10 7.0 Conclusion 11 Bibliography 11 BUSINЕSS САРSTОNЕ: VIDЕО BUSINЕSS САSЕ RЕРОRТ АSSЕSSМЕNТ Executive Summary Company's entry into the new market is characterised by a lot of issues. Some of the most significant issues include flat market growth and captured markets which are the most conspicuous issues in this report. These issues have caused to stagnated growth of Adobe Company. The report also identifies user base and market exaggeration. The report also gives alternatives for this issue which include scalability which is the most conspicuous alternative for these issues. The report goes to detail on the other alternative to solve the captured market problem by explain how focusing on a specific target market can be a viable solution. On the other hand, the report also covers the alternative for a large user base where it claims that the company should use this large user base and convert it to a long term and viable solution. The report also covers the discussion on how these alternatives are viable for the company performance. It also covers the alternative for market exaggeration and how the company can brace itself n this type of market taking up of strategies that ensure that the company is able to scale out of this market issue. The report also covers the recommendations on how these alternatives can best be put into action. In this case it focuses on the implementation of these solutions and the best path to be taken up by the company in order to ensure that these solutions are viable for the Company in regards to the pointed out issues and causes of these issues. The report also covers a conclusion that outlines all the significant issue in the whole report and providing a backup to the suggested solution and strategies to take up in line with the pointed out issues and causes of these issues in Adobe Company. 1.0 Issues The main issue as evident in the video is flat growth that the Adobe software business has been experiencing in South East Asia. Flat growth, in this case, means that there is minimal change in the gross business revenue that can be pointed. A flat growth implies that the businesses net profit, number and size of customers and its employees is stagnating for a quite long period of time.1 Flat growth, in this case, can constitute a plateau however, for this case flat growth needs to last longer in order to be referred to as a plateau .2 Flat growth is as a direct result of businesses energy levels being stagnant. In this case, the business might not have its initial vibrant taste of innovation as it had sometimes back. Thus, the growth of Adobe software business emergence into the South East Asia has been quite slow and this can be blamed on different varying factors which have slowed down this process as well as the growth of the business in this area. The other main issue evident in the video is a captured market problem. This is a market which has constrained potential customers to purchase the software services from Adobe Company.3 Constraints in this market is majorly caused by high prices in competitors, present of uniqueness in products and services, lack of competition and the service seller owning the services buying entity.4 2.0 Causes The main cause of the issues spelt out in the video is a large user base.5 There are a lot of people using the service from Abobe software company. As some people might perceive a large user base is not necessarily a competitive advantage especially if the users are not connected. In order for the large user base to be a competitive advantage for an organisation, it has to have some value or leverage to the business.6 As evident in the case of Adobe the large user base has not proven to be quite valuable for the company as it might be perceived. Therefore, the large user base might not be as valuable as though if it is not monetized effectively.7 The other cause leading to the issue mentioned in the video is the market exaggeration. This cause results from market sentiments which are unbalanced. In this case, Adobe exagerated counter market swings to the opposite direction since it has lost its momentum.8 3.0 Alternatives One significant alternative for the flat growth rate issue facing the Adobe software business is Scalability. By ensuring revenue growth and expansion of an organisation while on the other hand minimising its operation costs. Through adopting scalability, the business will focus on building a solid foundation, focusing on scalable solutions, embrace strategic planning and be patient.9 The other solution for the flat market is the creation of system-oriented services which cater for a larger scope. In this case, Adope software business will be able to leverage its strength to its advantage hence creating a service business solution that solves the user's problems. The other alternative for a captured market issue is Adobe software business to target a specific market for its services. In this case, it should select a target market with common characteristics with the main focus being solving of the client's problems. In line with this alternative, Adobe software business should also develop a portfolio of configuration and design based on the software reliability, component requirement and its efficiency to its users.10 Alternatively, for the large user base adobe should come up with a strategy to utilise the large customer base. The company should understand that large customer base does not necessarily mean that the company has a large market share.11 In this case, the company should target the micro-universe market in order to ensure that the large market base is constant for the company. The company should also ensure that its service is embeddable. This particular alternative ensures that the large user base does not get desensitised.12 Consequently, the company should also ensure that they derive value out of the product in order to ensure that the large user base competitive advantage it is enjoying is made more valuable to the company by converting it to actual sales.13 Under market exaggeration the company can utilise optimisation as an alternative. In this case, the company ensures that it works with first-hand figures regarding its market performance and trends. The organisation should ensure that it creates a momentum in the organisation market performance.14 On the other hand, the company should ensure that the price action of its services remains constant in order to ensure there is no any sort of exaggeration in the market. 4.0 Decision creteria For the scalability alternative, the organisation should understand this concept before applying it. Thus, the company should understand that scalability is essentially doing what the company does only that now it is doing this in a much bigger way. Hence, the company should ensure that the software is usable by a wider user margin. The company should also be prepared to handle larger number of users. One advantage of scalability is that it guarantees reliability and security of the companys performance in the market. However, the company’s adoption of scalability varies depending on the level it has to be adopted.The company should chose to adopt either of the two types of scalability; vertical and horizontal scalability.15 Vertical scalability adds resources to the company in the same logical unit in order to increase the company’s general capacity. Horizontal scalability, on the other hand, is where multiple logical units of resources are added however they are made to work in a single unit. However, scalability also has some drawbacks with the most significant one being that it is too demanding and expensive. In this case the company is forced in investing in infrastructure, workforce training and new expertise services inorder to ensure that scalaability is effectively implemented in the company.16 This is a viable plan that is easy for the company to adopt however, it should only carry out extensive research to understand the type of scalability factor that works best for the company before arriving at a decison. Evidently, capture market has proved to be an issue for adobe company,it is characterised by potential buyers having a quite limited choice preference. One solution for capture market is for the company to come up with unique new market innovations, this alternative will guarantee uniqness in service provision hence, distinguishing Adobe Company’s services with those of other players in the market.17 The other benefit is that the market will get a direct connection with this service. In this case, Adobe Software Company can come up with innovation which makes them increasing important to the public and potential customers. This will help the company to diversify the number of risks in order to ensure that the market is not hugely influence by a single player. As evidently seen a large user base is an important aspect of business, however, it has to be used well in order for it to have an actual value and impact to the business. The company should, therefore, adopt strategies to make the large user base more valuable to the company. The benefit of adopting strategies that make the company’s user base more valuable is the company will be able to convert this competitive advantage to a viable long-term solution in terms of both the revenue margin and growth. On the other hand, the company should also come up with strategies to ensure that they retain the user base, this come down to ensuring that the company’s customers are satisfied with the company’s service, therefore, they are more likely to return. However, the company should also understand the drawbacks of this alternative with the most significant one being, the revenues are significant metrics that fosters the large user base, and therefore a lot of investment is required for this alternative. This is viable decision especially if the company guarantees that its software service is quite valuable in the market thus guaranteeing the large user base which will be advantageous in the long term.18 Thus, the decision to invest more funds on innovations and new product development to propel the company to greater heights 5.0 Recommendation The company should take up a scalability action. This will ensure that the company does not suffer due to the flat growth rate in the company’s software market. Scalability, thus, will ensure that the company is able to scale through the flat market.19 Additionally, the organisation should invest in scalability through carrying out market research on how scalability can be integrated into the company’s performance thus; the company can seek consultation from experts. On the other hand, the company should ensure that it creates a business plan that is integrated into its scalability action. In this case, the company’s should minimise its staff and low support margin.20 The company should also enlighten its employees and workforce on scalability in order to prevent any setback before embarking on its implementation. 6.0 Implementation and Implication Through the implementation of scalability, the company’s low performance should be aligned with the company’s scalability approaches. A range of workforce and company resources have to be used in the scale up interventions for the company. The company should also invest in infrastructure and expertise workforce in order to ensure that the implementation process of scalability in the company is smooth.21 In the course of its implementation, it will also review the management of structures fostering the scalability process in the company. Interventions will also be considered in the course of implementing scalability in the company.22 7.0 Conclusion There are evident issues in the video covering Adobe’s entry into some parts of the Asian market. Some of these issues include; flat growth and captured market. These issues have clearly been a barrier for Adobe expansion strategy in this market which has resulted in its stagnated growth. Additionally, these issues are triggered by market exaggeration and large user base in this market that adobe has failed to capitalize on. However, there is need of a strategic framework to be adopted in the course of finding solutions for these issues if adobe has to succeed in penetrating and capturing this market. As pointed out if these solutions are carried out strategically they can end up being viable solutions for the company. Bibliography Alagoa, Hans E. "Managerial Decision-Making In International Business: Corporate Governance Issues In Emerging Markets". SSRN Electronic Journal, 2015 Aman Singh .7 Key Digital Marketing Trends in South East Asia in 2015, 2016. "Agreement Between Laird Technologies And ITEQ Corporation Provides Unique Solution For Flat Panel Display Market". Microelectronics International 25 (1), 2009. Chen, Roger and Zhan Li."An Interview With Chuck Geschke And John Warnock, Founders And Chairmen Of Adobe Systems". J Of Asia Business Studies, 2006. Marasco, Joe. The Software Development Edge. Upper Saddle River, NJ: Addison Wesley, 2005. Nishant Agnihotri. "Evaluating PAAS scalability and improving performance using scalability improvement systems". International Journal of Research In Engineering And Technology 03 (03): 598-602, 2014. Lara Poethig, Mette Berger, Gerald Howard . "Capture Your Market". Burns 35: CO2. Lausanne, Switzerland, 2009. Fetzer, James J. "A Partial Equilibrium Approach Of Modeling Vertical Linkages In The U.S. Flat Rolled Steel Market". SSRN Electronic Journal.. Nielsen, Christian and Morten Lund. "The Concept of Business Model Scalability". SSRN Electronic Journal. 2015 Overby, Eric M. and Chris Forman. "The Market Is Flat: How Buyers Use Electronic Channels To Extend Purchasing Reach And Reduce Geographic Price Variance". SSRN Electronic Journal. 2014 Overby, Eric M. and Forman, Chris, The Effect of Electronic Commerce on Geographic Purchasing Patterns and Price Dispersion. Management Science 61(2):431-453, 2015. Thomas, Randall S. "Explaining The International CEO Pay Gap: Board Capture Or Market Driven?". SSRN Electronic Journal, 2003. Video Business Case - Stephen Hamill; Managing Director; South East Asia; Adobe. 2016. https://www.youtube.com/watch?v=AqXRrrrnZlk&feature=youtu.be Read More