Overview of Mitalio Software - Essay Example

Overview of Mitalio Software Table of Contents Table of Contents 1 Overview of Essential Case Facts 2 Identification of Major Issues/Dilemmas 4 Positives and Negatives of Two Alternative Paths of Action 5 Recommendations 6 Essential Concepts 6 References 8 8 8 Overview of Essential Case Facts Mitalio Software Inc is a reputed organization of California operating in the technology sector aiming to render services related to the ‘enterprise business software’. It is located in Sunnyvale region of California. By the end of the year 2005, the company was recorded to earn a net income of US $ 12,116 (in dollar thousands). Mitalio mainly attempts to offer its Business Process Management (BPM) software related services to varied industries dealing in telecom as well as banking sector, financial services, insurances and healthcare sector with the prime intention to satisfy the requirements of the international business environment. Moreover, Mitalio also endeavors to offer varied types of inventive software packages in order to enhance the perceived dependency and consistency level of its customers among other competing firms in the market. In order to attain the desired leading position in the international technology industry, the higher authority of Mitalio had decided to offer ERP software packages along with BPM software facilities to enhance its corporate image and identity through innovation in the increasingly competitive industry structure. It was expected by the company officials that this particular strategy would facilitate Mitalio to enhance its total sales along with profitability in the long-run by rewarding its competitive benefits in the short-run processes (Zerio & Nair, 2007). Moreover, to position itself as a market leader in the sector of business software services, the management of Mitalio and its sales team decided to offer more attention over advertisement and promotional activities. This might prove beneficial for Mitalio to increase the awareness of the customers towards its products, ensuing augmentation of prospective leads and reduction of business threats (Zerio & Nair, 2007). Identification of Major Issues/Dilemmas Mitalio is a renowned organization of California which fundamentally attempts to offer cost-efficient software packages to enhance the reliability of its business customers. The prime objective of Mitalio is to augment its supremacy and brand visibility among other apparent players operating within the market. In order to accomplish the underlining desire, the management of Mitalio had decided to offer both BPM and ERP software packages in the international markets of United States, Europe and Asia. Besides, the management of Mitalio also decided to offer differentiated products allied with BPM software services according to the varying requirements of its customers in order to amplify its value proposition within their perceptions (Zerio & Nair, 2007). Moreover, the reason behind this decision is to cope up with its core competitor Fuego, which was able to attain a sudden augmentation in its market share by acquiring a small-sized software vendor, named BEA. Due to this acquisition procedure, the extent of threat from competition and uncertainty enhanced significantly, resulting in the amplification of business risks. Certainly, the announcement of the acquisition resulted in the creation of BEA-Fuego, which apparently created a panic among the employees of Mitalio, to retain its value in the market of California. Consequently, it also offered a significant impact over the current and potential customers of Mitalio, enhancing the switching cost of its loyal consumers. With due regard to the fact, the management of Mitalio decided to offer high attention towards advertising and effectual promotion of its software packages to diminish the threat of the competing firm, BEA-Fuego. Thus, it facilitated Mitalio to augment its brand uniqueness and productivity in global scenario (Zerio & Nair, 2007). Positives and Negatives of Two Alternative Paths of Action The two alternative courses of activities identified by Mitalio was promotion of ERP along with BPM software packages with a substantially increased concentration over publicity procedures. In order to augment its position and distinctiveness in the international markets, Mitalio decided to advertise fully automated ERP software packages and thus effectually satisfy the requirements of the business organizations and its customers. An ERP software package comprises of varied products which are promoted to integrate varied business processes of both small and large scale organizations in an efficient and competent way. This facilitated Mitalio to attract a large number of new customers and to retain the previous ones, resulting in amplification of customer loyalty and trust which is extremely essential to sustain for long run (Zerio & Nair, 2007). The discussion therefore highlights the advantages of ERP packages, even though it comprises of diverse limitations as well. In its later performances, it was identified that promotion of ERP software package augmented its total sales and profit margin amplifying the operating revenue of Mitalio by a considerable extent. In addition, utilization of diverse types of promotional modes such as newsletters, emails, ERP and BPM blogs, press releases and podcasting surely enhanced the demand of the products of Mitalio in its later performances, thereby accomplishing the determined organizational objectives. Thus, it can be revealed that these drivers are taken as sources of high-tech marketing processes which are extremely essential to promote a software product such as ERP, as compared to marketing of Fast Moving Consumer Goods (FMCG). It might also facilitate Mitalio to enhance its range of customers which is highly valuable to retain its dominance over other competing organizations (Zerio & Nair, 2007). Recommendations In this era of globalization and industrialization, it is extremely essential to cope up with alternating demands of the business customers and to retain the market value held by an organization. With this intention, Mitalio can attempt to promote the software packages of ERP and BPM taking the assistance of other media options such as e-marketing sites, for example, eBay auctions or classified advertisements, to attract greater traffic towards these products. These methods might also prove beneficial for Mitalio to enhance its total sales and demand. Moreover, it might also not require high promotional expenses, leading to amplification of its profitability (South African Government Online, 2002). Furthermore, government or commercial white-paper advertisement methods or CXO blogs could have also been utilized by Mitalio to promote its software packages to increase the demand of its products. Thus, to increase the visibility of the press releases, mainly the benefits of the software package offered should be highlighted by the organization in comparison to other existing players (South African Government Online, 2002). Essential Concepts To handle the irregular challenges of the environment, Mitalio attempted to offer higher attention towards promotion of the ERP along with BPM software packages. In the long-run, it might further facilitate Mitalio to amplify its market share and productivity among other competing companies operating in this segment. Moreover, ERP software packages were also promoted by the organization in order to maintain its leadership position in the related sector which in turn played a vital role in ensuing amplification of its brand equity and individuality in the global market. Thus, this decision also facilitated the organization of Mitalio to augment its corporate image and brand portfolio amid its customers and stakeholders. Hence, the alternatives acted as a catalyst to enhance its sustainability and competitive advantage over other firms (Zerio & Nair, 2007). References Doerr, A. D., 1971. The Role of White Papers. In: Doern, G.B. and Peter Aucoin. South African Government Online, 2002. Department Of Minerals and Energy. White Paper on the Promotion of Renewable Energy and Clean Energy Development. [Online]Available at: http://www.info.gov.za/whitepapers/2002/rewp220802.pdf [Accessed 31 May, 2012]. Zerio, J. & Nair, E., 2007. Mitalio Software. Thunderbird School of Global Management. Read More