A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics / Finance / Management from the NOVA – School of Business & Economics.
It is recommended the reading of the ANNEXES BOOK in order to have a more complementary view of some topics.
BUSINESS PLAN
INTERNATIONALIZATION TO
SPAIN
“We simplify business processes by developing technologically advanced global business solutions that integrate all of the company’s main functions”
Diogo José Gomes Ferreira Pinto
Master in Management
#572
A Project carried out on the Business Consulting field lab, under the supervision of: Prof. Filipe Pamplona de Castro Soeiro
06-06-2011
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 INDEX
EXECUTIVE SUMMARY ...
1. BUSINESS DESCRIPTION
1.1. Business Idea ...
1.2. Team & Competencies ... 1.3. Opportunity ...
1.4. Mission ... 1.5. Vision ...
1.6. Strategic Objectives ... 1.7. Product & Services Offering
2. BUSINESS MODEL ANALYSIS
2.1. Competitive Advantage ... 2.1.1. PME.BOX - Firm ... 2.1.2. Pme.box - Software ... 2.2. Value Proposition ... 2.2.1. Target Segment ... 2.2.2. Revenue Structure ... 2.3. Operating Model ... 2.3.1. Value Chain Analysis ... 2.3.2. Cost Structure ...
2.3.3. Organization Design & Collaborative Arrangements
3. ENVIRONMENTAL CONTEXT 3.1. Market Analysis ... 3.2. Market Dimension ... 3.2.1. Size ... 3.2.2. Value ... 3.2.3. Growth ... 3.3. Market Trends ... 3.4. Key Drivers ... 4. MARKET SPECIFICS ... 4.1. Market Needs ... 4.2. Market Segmentation ... 4.3. Industry Map Analysis ... 4.4. Porter’s Five Forces Analysis
4.5. Competitive Assessment ... 4.6. SWOT & TOWS Analysis
5. MARKETING & SALES STRATEGY 5.1. Marketing Strategy ... 5.1.1. Marketing Mix ... 5.1.1.1. Product ... 5.1.1.2. Price ... 5.1.1.3. Place ... 5.1.1.4. Promotion ...
5.1.2. Product & Services Positioning 5.2. Sales Strategy ... 5.2.1. Sales Tactics ...
6. PROCESSES AND OPERATIONS
7. MANAGEMENT STRUCTURE 8. RISK ANALYSIS ... 9. IMPLEMENTATION PLAN 10. FINANCIAL ANALYSIS 11. CONCLUSIONS ... BIBLIOGRAPHY ...
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
... BUSINESS DESCRIPTION ... ... ... ... ... ... ...
Product & Services Offering ... BUSINESS MODEL ANALYSIS ...
... ... ... ... ... ... ... ... ... Organization Design & Collaborative Arrangements ... ENVIRONMENTAL CONTEXT ... ... ... ... ... ... ... ... ... ... ... ... Porter’s Five Forces Analysis ...
... SWOT & TOWS Analysis ... MARKETING & SALES STRATEGY ...
... ... ... ... ... ... Product & Services Positioning ... ... ... PROCESSES AND OPERATIONS ... ANAGEMENT STRUCTURE ... ... N PLAN ... FINANCIAL ANALYSIS ... ... ...
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 2
... 3 ... 4 ... 4 ... 4 ... 4 ... 5 ... 5 ... 5 ... 5 ... 7 ... 7 ... 7 ... 7 ... 8 ... 8 ... 8 ... 8 ... 8 ... 9 ... 10 ... 10 ... 10 ... 11 ... 11 ... 12 ... 12 ... 12 ... 12 ... 13 ... 13 ... 14 ... 14 ... 15 ... 17 ... 17 ... 19 ... 19 ... 19 ... 19 ... 19 ... 19 ... 20 ... 20 ... 21 ... 21 ... 21 ... 23 ... 24 ... 25 ... 26 ... 26 ... 28
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 EXECUTIVE SUMMARY
The document herein described, provides detailed information of the development of PME.BOX Business Plan regarding the expansion to
a detailed overview of the business model and strategies that PME.BOX looks to implement in order to maximize its business reach and in turn generate revenue.
PME.BOX (firm) is an IT start up firm based in Madan Par
the commercial rights of pme.box (software). Pme.box is a touch
management solution intended to help small and medium enterprises (SMEs) in their day day business. It is a software provided under
Software as a Service (SaaS).
The value proposition of PME.BOX
innovative, efficient, sustainable and affordable solutions to their customers.
PME.BOX has an important social contribution, given that it provides free software for micro-enterprises and SMEs,
to higher levels.
Although SMEs represent a dynamic and important role on
struggle for “survival” in a high global competitive context. The impending crisis has also affected SMEs severely, with a large number going into bankruptcy. This represents a huge opportunity to such affordable software as pme.box, pr
reducing their operational fixed costs, transform those into variable importance of economies of scale for those SMEs.
PME.BOX wants to grow fast and on a global scale in order to take advantage of the time market. It is looking for partnerships with available financial means and local market expertise to deal with local demands and local business expansion. Inside this objective, Spain seems to be a very attractive market to the PME.BOX business model.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
The document herein described, provides detailed information of the development of PME.BOX Business Plan regarding the expansion to Spain. The purpose is to give the reader a detailed overview of the business model and strategies that PME.BOX looks to implement in order to maximize its business reach and in turn generate revenue.
PME.BOX (firm) is an IT start up firm based in Madan Park, Caparica, Portugal, which owns the commercial rights of pme.box (software). Pme.box is a touch-screen enabled business management solution intended to help small and medium enterprises (SMEs) in their day day business. It is a software provided under the principles of Cloud Computing (CC) and
The value proposition of PME.BOX, offers an integrated software that incorporates innovative, efficient, sustainable and affordable solutions to their customers.
BOX has an important social contribution, given that it provides free software for and SMEs, promoting competitive advantages and facilitating them to grow
a dynamic and important role on the economic activity, they struggle for “survival” in a high global competitive context. The impending crisis has also affected SMEs severely, with a large number going into bankruptcy. This represents a huge opportunity to such affordable software as pme.box, promoting them the opportunity of reducing their operational fixed costs, transform those into variable
importance of economies of scale for those SMEs.
PME.BOX wants to grow fast and on a global scale in order to take advantage of the time market. It is looking for partnerships with available financial means and local market expertise to deal with local demands and local business expansion. Inside this objective, Spain seems to be a very attractive market to the PME.BOX business model.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 3 The document herein described, provides detailed information of the development of
Spain. The purpose is to give the reader a detailed overview of the business model and strategies that PME.BOX looks to implement
k, Caparica, Portugal, which owns screen enabled business management solution intended to help small and medium enterprises (SMEs) in their
day-to-the principles of Cloud Computing (CC) and
software that incorporates innovative, efficient, sustainable and affordable solutions to their customers. On top of that, BOX has an important social contribution, given that it provides free software for promoting competitive advantages and facilitating them to grow
omic activity, they struggle for “survival” in a high global competitive context. The impending crisis has also affected SMEs severely, with a large number going into bankruptcy. This represents a huge omoting them the opportunity of reducing their operational fixed costs, transform those into variable, and reduce the
PME.BOX wants to grow fast and on a global scale in order to take advantage of the time-to-market. It is looking for partnerships with available financial means and local market expertise to deal with local demands and local business expansion. Inside this objective, Spain
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 1. BUSINESS DESCRIPTION
1.1. Business Idea
PME.BOX is a Portuguese IT start up founded in September 2010, as a result of a spinoff from Buglos. Pme.box was first a product from Buglos portfolio but José Carlos da Graça, the sole shareholder of Buglos, saw the
Pme.box is a software provided under the principle of Pay
basis, through a fresh mix of Cloud Computing and Software as a Service. This is a new way of looking at software, because after all if we think of software (applications used to improve the performance of companies) and services (externalization of activities that are not part of core business), the key strength is having access to this combination without having actually do any initial investment.
1.2. Team & Competencies Currently PME.BOX S.A. is composed
CEO José Carlos da Graça CFO Tiago Vaz Serra, MBA COO João Carlos Henriques CSO Bruno Judas Nunes, MSc
1.3. Opportunity
With the impending economic and credit crisis, many firms across the global have experienced considerable difficulties. Such a bear
challenges to companies, large an
After several years operating in the IT market,
exploited – Mobility. In a globalized world, intercultural projects became more common and the need for mobility vital.
feature; rather, it is considered a strategic component of their business. Deploying mobile
1 For a description of the shareholders please check
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 INESS DESCRIPTION
Business Idea
PME.BOX is a Portuguese IT start up founded in September 2010, as a result of a spinoff from Buglos. Pme.box was first a product from Buglos portfolio but José Carlos da Graça, the sole shareholder of Buglos, saw the potential and the opportunity to expand outside borders. Pme.box is a software provided under the principle of Pay-Per-Use on a second by second basis, through a fresh mix of Cloud Computing and Software as a Service. This is a new way re, because after all if we think of software (applications used to improve the performance of companies) and services (externalization of activities that are not part of core business), the key strength is having access to this combination without having actually do any initial investment.
Team & Competencies1
S.A. is composed by 4 shareholders:
José Carlos da Graça, MBA - Shareholder 55%
, MBA - Shareholder 20%
João Carlos Henriques, MBA - Shareholder 20%
, MSc - Shareholder 5%
With the impending economic and credit crisis, many firms across the global have experienced considerable difficulties. Such a bear global market presents significant
large and small, to reduce operating costs and increase productivity fter several years operating in the IT market, one clear opportunity was yet to be deeply
Mobility. In a globalized world, intercultural projects became more common and For enterprises today, mobility is no longer a "nice to have" ed a strategic component of their business. Deploying mobile
For a description of the shareholders please check exhibit 1 in ANNEXES BOOK.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 4 PME.BOX is a Portuguese IT start up founded in September 2010, as a result of a spinoff from Buglos. Pme.box was first a product from Buglos portfolio but José Carlos da Graça, the potential and the opportunity to expand outside borders. Use on a second by second basis, through a fresh mix of Cloud Computing and Software as a Service. This is a new way re, because after all if we think of software (applications used to improve the performance of companies) and services (externalization of activities that are not part of core business), the key strength is having access to this combination without having to
With the impending economic and credit crisis, many firms across the global have presents significant increase productivity. one clear opportunity was yet to be deeply Mobility. In a globalized world, intercultural projects became more common and For enterprises today, mobility is no longer a "nice to have" ed a strategic component of their business. Deploying mobile
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
applications provides strong productivity improvements and offers better customer touch for the mobile workers accessing these applications in the field.
The growing magnitude of SMEs
that nowadays micro, small and medium enterprises represent around 90 country’s total number of firms.
management solution that can answer 1.4. Mission
PME.BOX offers a web-based business management solution available to all type of small and medium enterprises that need to manage their business in an efficient manner by quick access to business information.
1.5. Vision
PME.BOX looks to become more than a software distributor
management software market, promoting social justice. To become a preferred solution in the worldwide market by 2015.
1.6. Strategic Objectives PME.BOX wants to grow fast and on a glo
market. It is looking for partnerships with available financial means and local market expertise in order to deal with local demands and local business expansion.
strategic objectives of PME.BOX are as followed: Expand sales to other countries
Poland. These countries 25M€.
Take advantage of the time 2012.
Create brand awareness.
1.7. Product & Services Offering
Pme.box is a fully mobile business management software that is intended to solve business related problems in small and medium enterprises. It provides you with an enhanced touch
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
applications provides strong productivity improvements and offers better customer touch for the mobile workers accessing these applications in the field.
of SMEs makes this segment highly valuable, it is important to notice that nowadays micro, small and medium enterprises represent around 90
country’s total number of firms. Moreover, it is also latent the lack of an affordable management solution that can answer to SMEs’ needs.
based business management solution available to all type of small and medium enterprises that need to manage their business in an efficient manner by quick access to business information.
looks to become more than a software distributor – a pioneer in the business management software market, promoting social justice. To become a preferred solution in the
Strategic Objectives
wants to grow fast and on a global scale in order to take advantage of the time market. It is looking for partnerships with available financial means and local market expertise in order to deal with local demands and local business expansion.
f PME.BOX are as followed:
Expand sales to other countries – close joint ventures in Spain, Brazil, Great Britain and represent attractive markets that have a combined value of advantage of the time-to-market – this expansion is to be closed until the end of
& Services Offering
mobile business management software that is intended to solve business related problems in small and medium enterprises. It provides you with an enhanced touch
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 5 applications provides strong productivity improvements and offers better customer touch for
segment highly valuable, it is important to notice that nowadays micro, small and medium enterprises represent around 90-95% of each , it is also latent the lack of an affordable
based business management solution available to all type of small and medium enterprises that need to manage their business in an efficient manner by quick
a pioneer in the business management software market, promoting social justice. To become a preferred solution in the
r to take advantage of the time-to-market. It is looking for partnerships with available financial means and local market expertise in order to deal with local demands and local business expansion. Provided that, the
close joint ventures in Spain, Brazil, Great Britain and represent attractive markets that have a combined value of is to be closed until the end of
mobile business management software that is intended to solve business related problems in small and medium enterprises. It provides you with an enhanced touch
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 screen interface and it is completely web
anywhere using a device, whether it is a pc,
following browsers: Mozilla Firefox, Internet Explorer, Safari, Opera and Google Chrome. How does it work? Very simple, first a customer acquires a license number free of charge and then, they just have to register
advantage of pme.box software
Pme.box gives a lifetime license that enables your company to growth steadily and sustainably, with an unlimited number of users.
integrated Marketing, Management and Internet solutions into one application features and capabilities are already being programmed
Management - Pme.box manages every process in your company. Pme.box Management
combines Supply Chain Management (SCM) and Enterprise Resource Planning (ERP) solutions together.
Marketing - With pme.box, you can manage your Business Contacts, Customer Relations
(CRM), Telemarketing, Email marketing and Mobile marketing actions.
Internet - Pme.box website, e
effective manner to individuals, groups, customers, partners and vendors. In addition, PME.BOX also offers
backups, dedicated servers, helpdesk, programming services, IT consultancy, customized solutions, training, design, banners, public relations
PME.BOX is based on a “freemium” concept
registration, customers get 20 hours of free use, on the first day of each month an additional 5 hours for free, 250 MB of free space, free online training, updates and backups. Unused time will be transferred to the next mo
per hour, taxed by the second, or
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
screen interface and it is completely web-based. It can be managed effortlessly from sing a device, whether it is a pc, laptop, palmtop or smartphone
following browsers: Mozilla Firefox, Internet Explorer, Safari, Opera and Google Chrome. How does it work? Very simple, first a customer acquires a license number free of charge and
register at www.pme-box.com and immediately start to take full software.
gives a lifetime license that enables your company to growth steadily and sustainably, with an unlimited number of users. For now, the software bundles a fully integrated Marketing, Management and Internet solutions into one application
ures and capabilities are already being programmed.
Pme.box manages every process in your company. Pme.box Management combines Supply Chain Management (SCM) and Enterprise Resource Planning (ERP)
With pme.box, you can manage your Business Contacts, Customer Relations (CRM), Telemarketing, Email marketing and Mobile marketing actions.
Pme.box website, e-commerce and portal present documents and contents in an als, groups, customers, partners and vendors.
also offers a vast number of added services to their customers, namely backups, dedicated servers, helpdesk, programming services, IT consultancy, customized
nners, public relations and social networking.
“freemium” concept, offering free use of its software. Upon registration, customers get 20 hours of free use, on the first day of each month an additional 5 hours for free, 250 MB of free space, free online training, updates and backups. Unused time will be transferred to the next month. Intensive users can buy a bundle of 100 hours for 0.49 per hour, taxed by the second, or choose a 39 € monthly fee without any limitations.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 6 based. It can be managed effortlessly from
martphone, and one of the following browsers: Mozilla Firefox, Internet Explorer, Safari, Opera and Google Chrome. How does it work? Very simple, first a customer acquires a license number free of charge and
and immediately start to take full
gives a lifetime license that enables your company to growth steadily and he software bundles a fully integrated Marketing, Management and Internet solutions into one application, although new
Pme.box manages every process in your company. Pme.box Management combines Supply Chain Management (SCM) and Enterprise Resource Planning (ERP)
With pme.box, you can manage your Business Contacts, Customer Relations
commerce and portal present documents and contents in an
added services to their customers, namely backups, dedicated servers, helpdesk, programming services, IT consultancy, customized
and social networking.
free use of its software. Upon registration, customers get 20 hours of free use, on the first day of each month an additional 5 hours for free, 250 MB of free space, free online training, updates and backups. Unused time nth. Intensive users can buy a bundle of 100 hours for 0.49€ ly fee without any limitations.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
Regarding the extra services that PME.BOX offers, there is no payment scale attached, everything is made by budgeting.
2. BUSINESS MODEL ANALYSIS
2.1. Competitive Advantage Firstly, it is important to differentiate
sustainable along time and provides long time benefits, and those that are temporary, could be copied or imitated. These ou
commercialize solutions with a high customer focus and 2.1.1. PME.BOX - Firm
Sustainable:
Innovation – It means PME.BOX’s culture and set creativity and innovation.
Temporary:
Partnerships – The synergies created between PME.BOX and its’ partners can also provide an advantage regarding clients, distribution channels and share of knowledge and experiences. To see the current partners of PME.
Organizational Design & Collaborative Arrangements. 2.1.2. Pme.box - Software
Sustainable:
All-In-One – Before, customers limited offline software.
your business components in
Temporary:
Mobility - Thanks to the usability of companies from miles away.
car or on holidays in Dubai
Touch Screen - The easy flow of information, the ability to flick throug
ability to zoom into a specific transformer and read all the key performance indicators,
2 For an overview of the Business Model please chec
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
Regarding the extra services that PME.BOX offers, there is no payment scale attached, dgeting.
BUSINESS MODEL ANALYSIS2 Competitive Advantage
Firstly, it is important to differentiate two types of competitive advantages, those that are sustainable along time and provides long time benefits, and those that are temporary, could be
mitated. These outcomes are attached to the capacity to commercialize solutions with a high customer focus and a competitive mode.
Firm
It means PME.BOX’s culture and set-of-mind, always creativity and innovation.
The synergies created between PME.BOX and its’ partners can also provide an advantage regarding clients, distribution channels and share of knowledge and experiences. To see the current partners of PME.BOX please check section 2 Organizational Design & Collaborative Arrangements.
Software
customers had to manage their business data
. Pme.box provides a software that gives a clear overview of all your business components in only one solution.
the usability of pme.box, customers are able to manage from miles away. Pme.box provides its customers full mobil
in Dubai, pme.box can travel with them.
The easy flow of information, the ability to flick throug
to a specific transformer and read all the key performance indicators,
For an overview of the Business Model please check exhibit 2 in ANNEXES BOOK.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 7 Regarding the extra services that PME.BOX offers, there is no payment scale attached,
two types of competitive advantages, those that are sustainable along time and provides long time benefits, and those that are temporary, could be comes are attached to the capacity to innovate and
competitive mode.
mind, always encouraging
The synergies created between PME.BOX and its’ partners can also provide an advantage regarding clients, distribution channels and share of knowledge and please check section 2.3.3.
business data manually or with that gives a clear overview of all
are able to manage their mers full mobility, if they are in a The easy flow of information, the ability to flick through pages, the to a specific transformer and read all the key performance indicators,
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 these are some of the ‘wow’ moments
present moment, PME.BOX management solution.
Pay-Per-Use – This payment method is becoming very popular among
solutions, because it promotes a healthier and sustainable growth not just to the solution provider but also to the customer. Please check section
to better understand PME.BOX 2.2. Value Proposition
2.2.1. Target Segment Taking into consideration what
company, targeting Micro, Small and Medium Enterprises with 1 to 100 all different sectors, ranging from
2.2.2. Revenue Structure
Presented the payment method, it is also relevant to illustrate the t revenues, and their respective weights:
from Extra Services.
Other sources of revenue can appear during the natural course of the business, it is expected that Commissions that PME.BOX
imbedded in the software can
regarding revenues are detailed in section 1 2.3. Operating Model
2.3.1. Value Chain Analysis
First of all it is important to state that there is a big difference regarding the costs associated with the value chain, if pme.box is sold directly to the customers by
through partners. Regarding the first option, direct selling,
45% given that the Distribution Costs will be very low. However, Management costs will be higher
3 For an overview of the Value Chain please check
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 these are some of the ‘wow’ moments customers get when they launch
PME.BOX is the only provider of software that generates a t This payment method is becoming very popular among
solutions, because it promotes a healthier and sustainable growth not just to the solution provider but also to the customer. Please check section 1.7. Products &
PME.BOX’s PPU model. Value Proposition
Target Segment
consideration what has been said, it becomes very clear that PME.BOX Micro, Small and Medium Enterprises with 1 to 100 employee
ranging from industrial and commercial to services. Structure
payment method, it is also relevant to illustrate the two revenues, and their respective weights: 65% of revenues from Licenses; and
of revenue can appear during the natural course of the business, it is expected PME.BOX receives from its’ partners for selling
the software can become an important source of revenue in the future regarding revenues are detailed in section 10. Financial Analysis.
Operating Model Value Chain Analysis3
important to state that there is a big difference regarding the costs associated , if pme.box is sold directly to the customers by PME.BOX
through partners. Regarding the first option, direct selling, PME.BOX can gain margins up to given that the Distribution Costs will be very low. However, the Human Resources higher because without partners, PME.BOX would have to invest
For an overview of the Value Chain please check exhibit 3 in ANNEXES BOOK.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 8 launch pme.box. At the is the only provider of software that generates a touch-screen This payment method is becoming very popular among SMEs and SaaS solutions, because it promotes a healthier and sustainable growth not just to the solution & Services Offering
PME.BOX is a B2B employees and from
relevant sources of and 35% of revenues
of revenue can appear during the natural course of the business, it is expected selling their products become an important source of revenue in the future. Figures
important to state that there is a big difference regarding the costs associated PME.BOX or if it is sold can gain margins up to the Human Resources PME.BOX would have to invest
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 in a larger commercial team
PME.BOX a much larger client base, reaching many channels that otherwise could not be reached. This option will provide a lower margin,
with partnering with other companies
Marketing will be essential to penetrate the Spanish market
to find an institutional partner that will finance Sales and Marketing initiatives (
Finally, it is pertinent to refer that all the Research & Development activities, specifically Project Analysis & Evaluation
Validation, are outsourced from Buglos, sole share
and respective investors and partners, will be granted the exclusive rights, to distribute pme.box software in a given territory, in exchange for
2.3.2. Cost Structure
PME.BOX has low fixed costs since it requires a low investment the fact that it has a small infrastructure and
from partners. For example, the R&D is made thr commercial partners, and accounting
The majority of PME.BOX’s costs are variable, as the number of
decreases, so do the costs associated to them. For example, fees paid to partners, in average are 25% of revenues from licenses
comparison with new entrants
were already made, representing sunk costs. To summarize, the expansion to Spain w
no big investment to be made regarding infrastructures. section 10. Financial Analysis.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
in a larger commercial team. On the other hand, selling through partners will provide a much larger client base, reaching many channels that otherwise could not be reached. This option will provide a lower margin, around 25%, because of the costs associated with partnering with other companies.
Marketing will be essential to penetrate the Spanish market. For this step, it will be essential partner that will finance Sales and Marketing initiatives (
Finally, it is pertinent to refer that all the Research & Development activities, specifically Project Analysis & Evaluation, Software Development, Prototyping & Testing and
sourced from Buglos, sole shareholder of pme.box source code.
and respective investors and partners, will be granted the exclusive rights, to distribute pme.box software in a given territory, in exchange for a 10% royalty over PME.BOX’s
Structure
has low fixed costs since it requires a low investment to keep its operations
the fact that it has a small infrastructure and a part of the human resources are outsourced partners. For example, the R&D is made through Buglos, Sales agent
and accounting is outsourced.
’s costs are variable, as the number of user’s
decreases, so do the costs associated to them. For example, fees paid to partners, in average licenses sales. Another advantage that PME.BOX
entrants is that the majority of initial investment and development costs were already made, representing sunk costs.
To summarize, the expansion to Spain will not lead to a big increase on costs, since there is no big investment to be made regarding infrastructures. Figures regarding costs are det
. Financial Analysis.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 9 . On the other hand, selling through partners will provide a much larger client base, reaching many channels that otherwise could not be %, because of the costs associated
For this step, it will be essential partner that will finance Sales and Marketing initiatives (≈1 Million €). Finally, it is pertinent to refer that all the Research & Development activities, specifically
Prototyping & Testing and holder of pme.box source code. PME.BOX and respective investors and partners, will be granted the exclusive rights, to distribute a 10% royalty over PME.BOX’s sales.
to keep its operations, given sources are outsourced ough Buglos, Sales agents belong to
user’s increases and decreases, so do the costs associated to them. For example, fees paid to partners, in average PME.BOX may have in vestment and development costs
n costs, since there is Figures regarding costs are detailed in
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 2.3.3. Organization
Concerning the organizational structure, Holding S.A.) fully owned by Buglos country. For Portugal you have PYME.BOX S.A. (Pequeñas
ventures, always on a 60/40 basis, with position. Each country would have its’ PME.BOX looks to replicate the same st The general criteria used to identify dimension (size, market share, growth), the
channel and commercial team, and finally, if it is SME table shows the main partners in Portugal
partners for the expansion to Spain:
Channel
Telecommunication Portugal Telecom
Banking Banco Popular
Insurance Hardware
3. ENVIRONMENTAL CONTEXT 3.1. Market Analysis
Spain is one of the European countries that most grow
as the ninth world largest economy. It represents a strategic location to PME.BOX because it is Portugal biggest client and supplier. With a population four times bigger than Portugal
4 For an overview of PME.BOX’s structure please check
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 Design & Collaborative Arrangements4
Concerning the organizational structure, PME.BOX will have a holding company (
fully owned by Buglos, which will be subdivided in several branches, one by For Portugal you have PME.BOX S.A. and for Spain it can be
S.A. (Pequeñas Y Medianas Empresas). Each branch will be opened to joint ventures, always on a 60/40 basis, with PME.BOX Holding S.A. maintaining the larger
would have its’ respective branch and, potentially, different partners. looks to replicate the same strategy in Spain that has implemented in Portugal.
used to identify suitable options for partnering relates to
dimension (size, market share, growth), the geographic dispersion, capacity of its distribution mercial team, and finally, if it is SME-oriented. Having this in mind, the next table shows the main partners in Portugal, their respective channels and
to Spain:
Portugal
Spain 1st choice
Portugal Telecom Telefonica
Banco Popular Banco Popular
Liberty Liberty
HP HP
ENVIRONMENTAL CONTEXT Market Analysis
Spain is one of the European countries that most grown in the last decade, ranking
as the ninth world largest economy. It represents a strategic location to PME.BOX because it is Portugal biggest client and supplier. With a population four times bigger than Portugal
For an overview of PME.BOX’s structure please check exhibit 4 in ANNEXES BOOK.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 10 will have a holding company (PME.BOX , which will be subdivided in several branches, one by can be for example, ). Each branch will be opened to joint Holding S.A. maintaining the larger
different partners. as implemented in Portugal. for partnering relates to the company’s , capacity of its distribution Having this in mind, the next , their respective channels and some potential
Spain 2nd choice Orange La Caixa Mapfre HP
last decade, ranking currently as the ninth world largest economy. It represents a strategic location to PME.BOX because it is Portugal biggest client and supplier. With a population four times bigger than Portugal
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 (46,8M) and a workforce of 23,1M people,
Portuguese companies.
In 2009, the Spanish IT market was the fifth largest in Europe, having experienced a strong growth in the years before5. Like the majority of the industries, the IT market has not been immune to the global crisis but it was not severely affected by it
on a year-by-year basis between 2002
€ in 2009. Although it is an industry that has a lot of
and medium-sized enterprises, with only 4% registering more than 50 employees Spain has several advantages that attract this type of companies to its territory:
Availability of skilled human resources at a very competitive cost. Ability to scale though Latin American
Modern transport and telecommunication infrastructures, coupled with an extensive network of Scientific and Technology Parks and Higher Education Centers.
Strong Government support Exceptional value – cost –
It boosts one of the biggest groups of developers in Europe, which are well connected to their European peers, opening new markets to exploit.
The regions of Madrid, Catalonia, Andalusia and Valencia in Spain.
3.2. Market Dimension 3.2.1. Size
From the supply side, it is not possible to estimate the exact number of companies that will compete, directly or indirectly, with PME.BOX in Spain
Five Forces Analysis and section 4.5. Competitive Assessment to better understand the market rivalry. However, from the demand side, and having in mind the market segment that
5
For more detailed information please check
6 Data gathered from “Business Opportunities
España, Ministerio De Industria, Turismo Y Comercio.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
(46,8M) and a workforce of 23,1M people, Spain represents an attractive market to
In 2009, the Spanish IT market was the fifth largest in Europe, having experienced a strong . Like the majority of the industries, the IT market has not been but it was not severely affected by it, registering a 4% growth rate year basis between 2002-2009, and combining for a market value of 100 Billion € in 2009. Although it is an industry that has a lot of supply, it is mostly dominated by small
sized enterprises, with only 4% registering more than 50 employees advantages that attract this type of companies to its territory: Availability of skilled human resources at a very competitive cost.
Latin American resources.
Modern transport and telecommunication infrastructures, coupled with an extensive network of Scientific and Technology Parks and Higher Education Centers.
Government support. For example, the ENISA fund for SMEs. – risk alignment.
boosts one of the biggest groups of developers in Europe, which are well connected to opening new markets to exploit.
The regions of Madrid, Catalonia, Andalusia and Valencia account for 70% of the IT supply
Market Dimension
From the supply side, it is not possible to estimate the exact number of companies that will compete, directly or indirectly, with PME.BOX in Spain – please check section 4.4. Porter’s orces Analysis and section 4.5. Competitive Assessment to better understand the market rivalry. However, from the demand side, and having in mind the market segment that
For more detailed information please check exhibit 5 in ANNEXES BOOK.
Data gathered from “Business Opportunities – Free Software Activities.” Invest In Spain España, Ministerio De Industria, Turismo Y Comercio.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 11 Spain represents an attractive market to
In 2009, the Spanish IT market was the fifth largest in Europe, having experienced a strong . Like the majority of the industries, the IT market has not been , registering a 4% growth rate 2009, and combining for a market value of 100 Billion y dominated by small sized enterprises, with only 4% registering more than 50 employees6.
advantages that attract this type of companies to its territory:
Modern transport and telecommunication infrastructures, coupled with an extensive network of Scientific and Technology Parks and Higher Education Centers.
boosts one of the biggest groups of developers in Europe, which are well connected to
account for 70% of the IT supply
From the supply side, it is not possible to estimate the exact number of companies that will please check section 4.4. Porter’s orces Analysis and section 4.5. Competitive Assessment to better understand the market rivalry. However, from the demand side, and having in mind the market segment that
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
PME.BOX targets, micro, small and medium enterprises represent 99% of the Spanish companies, 3,350,972 out of a total 3,346,903 companies
3.2.2. Value
According to the last IDC España report, the SaaS market was worth 153M estimated to reach 475M€ in 2014
3.2.3. Growth
According, still, to the same IDC España report, in 2010 the SaaS
rate of 48%, based on 2009. Furthermore, IDC forecasts that this market will grow five times faster than the traditional software market in the next three years. This urge also demonstrates that companies that select SaaS to acqui
more traditional models. 3.3. Market Trends
Nowadays, there are three main trends that influence the market: Cloud Computing (information stored in the “cloud”), Software as a Service (think of software as a service the customer gets and not as a product the customer buys) and Pay
Around 68% of Spanish companies are aware of both CC and SaaS principles, with 8% already using and 11% planning to use, according to IDC.
also been growing in popularity, with software companies leaving the traditiona
choosing alternative subscription models. In fact, only one in four Spanish companies prefers perpetual licenses.
3.4. Key Drivers
There are five key factors that could make the difference between success and failure:
Innovation – In any IT relate
competitors by offering a differentiated product.
7
Data gathered from “Retrato De Las PYMES 2010.” De España, Ministerio De Industria, Turismo Y Comercio
8 Data gathered from “SaaS: aumenta la adopción, se dispara el conocimiento
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
PME.BOX targets, micro, small and medium enterprises represent 99% of the Spanish anies, 3,350,972 out of a total 3,346,903 companies7.
According to the last IDC España report, the SaaS market was worth 153M € in 20148.
According, still, to the same IDC España report, in 2010 the SaaS market achieved a growth rate of 48%, based on 2009. Furthermore, IDC forecasts that this market will grow five times faster than the traditional software market in the next three years. This urge also demonstrates that companies that select SaaS to acquire software are growing faster than those that opt for
Market Trends
Nowadays, there are three main trends that influence the market: Cloud Computing (information stored in the “cloud”), Software as a Service (think of software as a service the customer gets and not as a product the customer buys) and Pay-Per-Use (pay as yo Around 68% of Spanish companies are aware of both CC and SaaS principles, with 8% already using and 11% planning to use, according to IDC. The adoption of PPU models has also been growing in popularity, with software companies leaving the traditiona
choosing alternative subscription models. In fact, only one in four Spanish companies prefers
There are five key factors that could make the difference between success and failure: In any IT related business the ability to innovate is key to stay i
offering a differentiated product.
“Retrato De Las PYMES 2010.” Dirección General de Política de la PYME De España, Ministerio De Industria, Turismo Y Comercio.
“SaaS: aumenta la adopción, se dispara el conocimiento.” IDC España
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 12 PME.BOX targets, micro, small and medium enterprises represent 99% of the Spanish
According to the last IDC España report, the SaaS market was worth 153M€ in 2010, and is
market achieved a growth rate of 48%, based on 2009. Furthermore, IDC forecasts that this market will grow five times faster than the traditional software market in the next three years. This urge also demonstrates re software are growing faster than those that opt for
Nowadays, there are three main trends that influence the market: Cloud Computing (information stored in the “cloud”), Software as a Service (think of software as a service the Use (pay as you go). Around 68% of Spanish companies are aware of both CC and SaaS principles, with 8% The adoption of PPU models has also been growing in popularity, with software companies leaving the traditional license and choosing alternative subscription models. In fact, only one in four Spanish companies prefers
There are five key factors that could make the difference between success and failure:
d business the ability to innovate is key to stay in front of the
Dirección General de Política de la PYME – Gobierno IDC España.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
Partnerships & Distribution
company to take full advantage of synergies, have ac brand awareness.
Time-to-Market – If a company takes too long to reach the market it could lose its
competitive advantage.
Brand Awareness – It is always essential when entering new markets where the company is
not yet known.
Customer Support – Due to the characteristics of this market and the low switching costs,
customer satisfaction must be a priority. By promoting a collaborative relation with clients and providing them help in using the software, we are able to
customer.
4. MARKET SPECIFICS 4.1. Market Needs
With the current global crisis, price flexibility has become the key choosing factor, even more when dealing with SMEs. In order to cut costs, a PPU model like the one presented by PME.BOX can definitely help SMEs during th
Another inherent need in the business management solution friendly solution that could,
efficiency. It is no good if a company provides a cutting edge technology if the interface is not easy to use.
Has said before, mobility has become one of the most important needs in this market, and the least exploited one.
Last but not least, the security factor and maintenance (updates, upgrades, assistance) will always be a concern that customers will
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
Partnerships & Distribution – Identify and partnering with the right companies allows a
company to take full advantage of synergies, have access to distribution channels and create
If a company takes too long to reach the market it could lose its
It is always essential when entering new markets where the company is
Due to the characteristics of this market and the low switching costs, customer satisfaction must be a priority. By promoting a collaborative relation with clients and providing them help in using the software, we are able to defend and better serve the
Market Needs
With the current global crisis, price flexibility has become the key choosing factor, even more when dealing with SMEs. In order to cut costs, a PPU model like the one presented by
can definitely help SMEs during these difficult times.
nother inherent need in the business management solution market is providing a user , in the end, translate into good performance and improved a company provides a cutting edge technology if the interface is not
Has said before, mobility has become one of the most important needs in this market, and the
Last but not least, the security factor and maintenance (updates, upgrades, assistance) will always be a concern that customers will take into account.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 13 Identify and partnering with the right companies allows a
cess to distribution channels and create
If a company takes too long to reach the market it could lose its
It is always essential when entering new markets where the company is
Due to the characteristics of this market and the low switching costs, customer satisfaction must be a priority. By promoting a collaborative relation with clients defend and better serve the
With the current global crisis, price flexibility has become the key choosing factor, even more when dealing with SMEs. In order to cut costs, a PPU model like the one presented by
market is providing a user in the end, translate into good performance and improved a company provides a cutting edge technology if the interface is not
Has said before, mobility has become one of the most important needs in this market, and the
Last but not least, the security factor and maintenance (updates, upgrades, and technical
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 4.2. Market Segmentation
In Spain, SMEs represent 99% of the business environment, with 7.3 S inhabitants. The majority of these companies
by commerce (24.7%), construction (13.2%) and industrial sector (7.3%) the industrial (27%), banking (11%) and consumption (17%) s
in IT10. Pme.box can be used by SMEs operating in all different sectors, and it can also provide customized tools to reach other niche markets.
Spain has 17 different regions with a certain degree of autonomy
important to choose wisely the region to start the operations in Spanish territory because each region has its specificities. There are two key regions in
Catalonia. In 2006, both regions combined for 65% majority of IT start ups seem to prefer Catalonia has the and establish their operations.
4.3. Industry Map Analysis
Regarding the Industry Map, the Spanish environment can be more
Portuguese one. Given the previously mentioned heterogeneity and regionalization, the relationship with regional governments and local partners has to be managed with some caution. Here are the key stakeholders
Buglos – mutual sharing of knowledge and services between respective main investor;
Investors – Venture Capitalists, Business Angels and other companies, that are willing to create Joint Ventures and finance
Partners – prestigious and local
grant access to their distribution channels;
Customers – Micro, Small and Medium Enterprises
9 Data gathered from “Retrato De Las PYMES 2010.”
De España, Ministerio De Industria, Turismo Y Comercio
10
Data gathered from “Análisis del Mercado Español Software.”
11 For more detailed information please check 12 For an overview of the Industry Map please
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 Market Segmentation
In Spain, SMEs represent 99% of the business environment, with 7.3 S inhabitants. The majority of these companies operate in the services sector
by commerce (24.7%), construction (13.2%) and industrial sector (7.3%)9. However, in 2007, the industrial (27%), banking (11%) and consumption (17%) sectors were the main investors Pme.box can be used by SMEs operating in all different sectors, and it can also provide customized tools to reach other niche markets.
Spain has 17 different regions with a certain degree of autonomy. So, unlike
important to choose wisely the region to start the operations in Spanish territory because each region has its specificities. There are two key regions in the IT market in Spain: Madrid and
In 2006, both regions combined for 65% of the IT market in Spain
to prefer Catalonia has the place to penetrate the Spanish market and establish their operations.
Industry Map Analysis12
Regarding the Industry Map, the Spanish environment can be more
Portuguese one. Given the previously mentioned heterogeneity and regionalization, the relationship with regional governments and local partners has to be managed with some caution. Here are the key stakeholders PME.BOX considers in its Business Model
mutual sharing of knowledge and services between PME.BOX
Venture Capitalists, Business Angels and other companies, that are willing to create Joint Ventures and finance PME.BOX operations;
and local companies that distribute the product to its clients and grant access to their distribution channels;
Micro, Small and Medium Enterprises;
“Retrato De Las PYMES 2010.” Dirección General de Política de la PYME De España, Ministerio De Industria, Turismo Y Comercio.
“Análisis del Mercado Español Software.” IDC España. For more detailed information please check exhibit 6 in ANNEXES BOOK. For an overview of the Industry Map please check exhibit 7 in ANNEXES BOOK.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 14 In Spain, SMEs represent 99% of the business environment, with 7.3 SMEs per 100
in the services sector (54.8%), followed . However, in 2007, s were the main investors Pme.box can be used by SMEs operating in all different sectors, and it can also
unlike Portugal, it is important to choose wisely the region to start the operations in Spanish territory because each IT market in Spain: Madrid and market in Spain11. However, the place to penetrate the Spanish market
Regarding the Industry Map, the Spanish environment can be more complex than the Portuguese one. Given the previously mentioned heterogeneity and regionalization, the relationship with regional governments and local partners has to be managed with some
iness Model:
PME.BOX and the Venture Capitalists, Business Angels and other companies, that are willing to companies that distribute the product to its clients and
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 Competitors – IT companies providing similar or substitute products and
same target-market;
Regional Community Government laws and regulations, and financing busine Outsourced Services Suppliers
outsourcing activities (solicitors, accountants, etc). 4.4. Porter’s Five Forces Analysis
The Porter’s Five Forces Framework helps understand better the attractiv particular market, because it gives an overall picture of the environment that PME.BOX, and helps to better shape the
Threat of New Entrants – HIGH
Although this is a sector that requires a significant initial investment, in time and capital, t Spanish Software Market is very attractive
expand internationally, like PME.BOX.
barriers, mainly to companies inside the EU. Furthermore, it is a market that support by the government, mainly through
The labor costs in Spain Labor costs in Spain are well below the European average in this sector, in comparison with UK and Germany, Spain’s labor costs are 50% bel
France, 35% below.
Bargaining Power of Suppliers
This is a market where the suppliers have little or no bargaining power. Software developers need very few suppliers, even more if the service is Cloud
outsourced service suppliers, it does not need any type they will never have a big power over the firm
13 For an overview of the Porter’s Five Forces Framework please check
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 IT companies providing similar or substitute products and
Regional Community Government – impacting in the business with the creation of
d financing business activities;
Suppliers – providing hardware to support pme.box software;
outsourcing activities (solicitors, accountants, etc). Porter’s Five Forces Analysis13
The Porter’s Five Forces Framework helps understand better the attractiv particular market, because it gives an overall picture of the environment that PME.BOX, and helps to better shape the implementation strategy.
HIGH
Although this is a sector that requires a significant initial investment, in time and capital, t is very attractive to already established companies lo expand internationally, like PME.BOX. It is an easy access market with no considerable barriers, mainly to companies inside the EU. Furthermore, it is a market that
support by the government, mainly through funding solutions but also through tax benefits. The labor costs in Spain Labor costs in Spain are well below the European average in this sector, in comparison with UK and Germany, Spain’s labor costs are 50% bel
Power of Suppliers – LOW
This is a market where the suppliers have little or no bargaining power. Software developers need very few suppliers, even more if the service is Cloud-based. PME.BOX has only outsourced service suppliers, it does not need any type of raw material or consumables
ve a big power over the firm.
For an overview of the Porter’s Five Forces Framework please check exhibit 8 in ANNEXES
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 15 IT companies providing similar or substitute products and services to the
iness with the creation of providing hardware to support pme.box software; also
The Porter’s Five Forces Framework helps understand better the attractiveness of this particular market, because it gives an overall picture of the environment that surrounds
Although this is a sector that requires a significant initial investment, in time and capital, the companies looking to no considerable entry barriers, mainly to companies inside the EU. Furthermore, it is a market that has much funding solutions but also through tax benefits. The labor costs in Spain Labor costs in Spain are well below the European average in this sector, in comparison with UK and Germany, Spain’s labor costs are 50% below, and with
This is a market where the suppliers have little or no bargaining power. Software developers PME.BOX has only of raw material or consumables, so
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
Bargaining Power of Buyers
Even though there are a large number of potential customers and they have little bargaining power over the software providers, with
sensitive, this represents a huge opportunity regarding the price positioning of PME.BOX. Offering such price flexibility, PME.BOX can definitely attain much more clients than a traditional fixed license payment.
Threat of Substitutes – MEDIUM
Indirect competitors are mainly traditio clearly gives advantage to web however it is very important to
and enjoy a very solid position in the market.
a non web-based solution have high switching costs, mainly because they have done a huge investment in those software, keep in mind that these are normally associated to
continuous licenses.
Industry Rivalry – HIGH
This is a trendy and high growth market, with a significant amount of competitors taking advantage of the market needs
innovation would become crucial to PME.BOX success
good that pme.box is targeted for SMEs because the availability of potential customers is much bigger. However, this in
PME.BOX so the offering of
the competitors could make the difference between success and failure costs are virtually none.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572
Bargaining Power of Buyers – MEDIUM
Even though there are a large number of potential customers and they have little bargaining power over the software providers, with the recent crisis buyers have become very price this represents a huge opportunity regarding the price positioning of PME.BOX. Offering such price flexibility, PME.BOX can definitely attain much more clients than a
ent.
MEDIUM
Indirect competitors are mainly traditional offline software providers. The CC and SaaS trend clearly gives advantage to web-based solutions that are starting to appear on this market, however it is very important to state that traditional software are already very well establish and enjoy a very solid position in the market. Regarding switching costs, customers that have based solution have high switching costs, mainly because they have done a huge
n those software, keep in mind that these are normally associated to
This is a trendy and high growth market, with a significant amount of competitors taking advantage of the market needs, so again, taking advantage of
time-to-innovation would become crucial to PME.BOX success. In such an aggressive industry, it is good that pme.box is targeted for SMEs because the availability of potential customers is
However, this industry is dominated by small and medium-sized enterprises an integrated software with more features and applications than the competitors could make the difference between success and failure, since the switching
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 16 Even though there are a large number of potential customers and they have little bargaining
ave become very price this represents a huge opportunity regarding the price positioning of PME.BOX. Offering such price flexibility, PME.BOX can definitely attain much more clients than a
. The CC and SaaS trend based solutions that are starting to appear on this market, traditional software are already very well establish Regarding switching costs, customers that have based solution have high switching costs, mainly because they have done a huge n those software, keep in mind that these are normally associated to expensive
This is a trendy and high growth market, with a significant amount of competitors taking -market and sustain In such an aggressive industry, it is good that pme.box is targeted for SMEs because the availability of potential customers is sized enterprises like e features and applications than , since the switching
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 4.5. Competitive Assessment
The next table summarizes the Spanish market.
4.6. SWOT & TOWS Analysis Within this section an analysis of hinder the PME.BOX solution pme.box software, strategies can be can be set in motion.
Strengths In te rn a l fa ct o rs
Highly innovative service
solution which positioned itself a contender in the European marketplace; Pay-as-you-go model provides cost
flexibility to PMEs;
Aggressive growth development plan The PME.BOX product does not have
geographic boundaries in terms of sales; Substantial ROI for clients.
14 For a summary of the TOWS tool please check
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 Competitive Assessment
The next table summarizes the characteristics of the key direct competitors operating in the
SWOT & TOWS Analysis14
an analysis of the current internal and external factors which
solution is made. By understanding the service and the market for the software, strategies can be further developed and an adequate implementation
Weaknesses Highly innovative service – integrated
solution which positioned itself a contender in the European marketplace;
go model provides cost
Aggressive growth development plan product does not have
es in terms of sales; for clients.
Weak/new brand name presents limited recognition within the marketplace;
Lack of access to key distribution partners, agents and partners;
Clients can be slow and skeptical to adopt this type of solution, concerns over data security.
For a summary of the TOWS tool please check exhibit 9 in ANNEXES BOOK.
NOVA School of Business & Economics | Field Lab in Business Consulting | Diogo Pinto #572 17 key direct competitors operating in the
the current internal and external factors which favor or . By understanding the service and the market for the implementation plan
Weaknesses
new brand name presents limited recognition within the marketplace;
Lack of access to key distribution partners, agents
Clients can be slow and skeptical to adopt this of solution, concerns over data security.
