2. What do you think are the strengths, weaknesses, opportunities and threats of the Jamcracker model?
Strengths:
* It was a well-financed start-up, as $42 Billion were financed for the company by the Internet Capital group and Fleet equity partners
* It was a new business model. So, the company can have the first mover advantage
* It has got low customer acquisition costs compared to typical ASPs
* Company has short implementation times and low cost
Weaknesses:
* As it is a start-up, it can be difficult for the company to promote its new business model
* The fear Dotcom crash may lead customers to go away from the Jamcracker
* Branding can be an issue as it is a small company and in the IT sector branding is considered very important
Opportunities:
* Repeat purchases can give Jamcracker higher margins
* If the company can expand its supplier base, it can automatically can improve its customer base
* The data of usage patterns can be marketed to get additional revenues
Threats:
* The IT sector is itself a very volatile sector in the economy
* The threat of new entrants and as well as substitutes is very high
* If the market giants like Accenture start competing with Jamcracker, it can be difficult for the company to compete with them
3. What would be your suggestions to Chandra for future growth of the company?
* If the company assure the security of the data, it can gain the competitive advantage over the other competitors, who may raise at any point of time
* The company should plan for the future problem of integration that may arise due to increase in the scale of operation
* The company should also increase the awareness of the business model to the clients, as it is a new business model
* The competitors may get start at any point of time. So, the company should be careful while going the contract writing and pact makings.
* The company can also market the data regarding the...