Script Logic Case

ProblemScriptLogic is a software company with a product portfolio that fits under a 'Point, Click, Done!' mantra. Easy to download, to install, and to use are the distinct features of its products. Online marketing program and inside sales force of ScriptLogic have been very successful in finding and bringing in new customers because of the efforts into increasing its marketing ROI, However, ScriptLogic is facing the new challenges as it tries to find the right path for the next phase of growth. It should decide whether it takes the advantages of going after new customers by building an enterprise sales force or mining the existing customer base with an inside sales force.

Recommendation and Key reasoning

Scriptlogic's efficient and unique marketing made a create leads in the market. Main target segment of Scriptlogic is small and medium business(SMB)market. It made them to avoid fierce competition and gave the chance to get the leads in the market.

Target customer of Scriptlogic is system administrators(SA) within an organization's IT department. SMBs employed just one or two SA. This is the main reason how Scriptlogic can make good relation in short time and shorten time to close sale. Scriptlogic understands the importance and value which SA need - time efficiency and easiness of using. Typically SA used Scriptlogic products at five kinds of activities. Scriptlogic mapped out the SA's job description and built products for each facet of their job.(Exhibit 1 in the case) From the financial aspect, it has systems and capabilities to increase ROI. These infrastructures made sales forces could save their sales closing time. Although Scriptlogic has been successfully getting the leads in the market, it has much concern about expanding business area.

Then, what is current position of Scriptlogic? We used BCG matrix by dividingScriptlogic's target market into four sections.(Exhibit 1) We included not only current business area but also Quest's business area to figure out new business chance and synergy. Besides current SAs, new SAs and enterprise solution purchaser will be new customer.

First of all, Scriptlogic should strengthen current business model. There will be a chance to expand its products for up-selling to existing customer. It can be a chance to capture new SAs. However, it will be less market than up-selling. Selling enterprise solution to SAs will be possible, but it will not realistic. In the other hand, Scriptlogic can try to sell existing products to the enterprise customer. But it will not easy. Already, most of fortune 500 companies use Scriptlogic's, but no one can sure the demand by changing marketing strategy. Therefore, the most important strategy can be "broadening area by existing product" based on current business model. Next strategy is using Quest business area and starting enterprise solution to new customer.

To sum it, first we recommend reinforce the existing business model. Second, we argue to go into enterprise solution market with Quest line and finally to get synergy between Scriptlogic and Quest. This will be most reasonable strategy based on the market potential and capability of Scriptlogic.

On the other hands, there will be some negative points for enhancing existing business, due to the larger market size of enterprise solution market and low growth rate of existing SAs market. However, the existing market growth rate and download is growing even though it decreases. Furthermore,we should note thatthe amount of that growing is not a small number and "New Lic Revenue/DL" starts to grow.Besides, ROI index get well continuously. (Exhibit. 2)

Although future market of current business model will not give us conviction of quantum jump to high growth, Scriptlogic can get money from existing market. In case of enterprise solution market, even though it has a large size of transaction, it will be hard to overcome the demerit of difficulties of building good relationship and longer sales closing time.

We argue that more safe way and easy to implement is "expansion through existing product". Scriptlogic already has solid business model in its fields with high brand awareness and good relationship with SAs customers. Also, it has a room for more growth in spite of decreasing growth rate. Comparing with existing business, "Enterprise solution business"