In the wall street journal mentioned that the software companies have to cut the prices of products because of the increasing competition and customer pressure. This price cut is also made on the software maintenance costs …
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Moreover due to lack of interest of customers in the software products owing to their high prices, the software companies have started offering web-based services in which the software programs are not installed on the computer of the customers but services are offered to the customers on web. The customers have started to think that they are not getting the proper business value from the software programs because they think that they are spending more and the return is less. One of the reasons behind this thinking of the customers is the large maintenance costs that they have to pay when the subscription expires. The proof of this lack of interest on part of the customers is the discount offers by various software companies and the increase in the use of web-based software services. The article Six IT Decisions Your IT People Shouldn’t Make, I have observed that the most disastrous practice which is very common in the IT organizations these days is letting IT people prioritize the projects according to their business magnitude. No doubt IT people are best at their work and can actually carry out projects successfully but deciding about the projects that which project is the most beneficial for the company is not the job of IT people.
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Insights 1. Carr says that “abandoning the old model becomes a competitive necessity” (Carr, 68), but fails to explain the competitive forces through which this need might be established. In fact this notion might be challenged on grounds of IT based services’ vulnerability to security issues.
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This paper has followed a critical and argumentative approach where different theories have been put forward to reach a conclusive statement regarding the topic of discussion. The author has also used several real life examples of market strategies of international companies and how they conduct their marketing activities in developing countries.
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