In 2001, SERIES became the most popular and widely used GIS software provider with estimated revenues of $427 million and a total worldwide market share of 34. 6%. SERIES has been a leader within the GIS industry; however with new entrants in the market, brand awareness could soon decrease. These new companies utilize the internet and offer free Internet based programs e. G. Google, Map quest, Yahoo, and other salary sites. These sites allow customers to locate businesses, get directions ND even see traffic routes In real time for free.
They also are changing the way customers use GIS software. Consumers now want cheaper solutions to run their businesses more efficiently, especially small cash strapped organizations. Small and medium sized businesses are opting to use these free internet based solutions rather than buy a suite of software from companies like SERIES which can be expensive. However these GIS solutions are limited in comparison to what SERIES has to offer. In industries requiring multiple high data layers these internet based solutions will not ark.
As management there are things we need to think about when deciding what decisions we want to make. In this case SERIES needs to think about what section of the market It wants to compete In. Sere’s strategy has been to provide market leading GIS software while continuing to Innovate and meet their customer’s changing needs. Their products are designed to solve specific problems for each customer; therefore enabling SERIES to customize each suite to their customers’ specific needs. SERIES is currently competing in a specific market geared towards larger organizations, overspent and municipalities.
SERIES could decide to enter into the segment of the market and compete with Google and Yahoo. This would create familiarity with its products and allow the consumer to eventually gravitate towards their higher end more profitable products. However, there is no way to know what kind of market share SERIES would gain. This segment of the market might be so use to using what they are currently using that they never use Sere’s software. SERIES could also look at offering a low cost to free mobile product that the everyday errors would use.
By altering Its current mobile product to features desired by small businesses and individuals, customers should be willing to pay for it at a reasonable price. I Nils would give teem another revenue stream Tanat would Nell them continue to grow and change with this fast paced business. By doing this SERIES could end up cannibalizing their higher end mobile solution. Business that really only needed and use certain aspects of the suite of products they purchased, may decide to switch to this new cheaper version.
I recommend that SERIES keep focusing on its current strategy while investing in software solutions for the future. Partnering with a company like Google will allow them to instantly gain brand awareness and allow SERIES the ability to learn what their customer’s preferences are. This will also allow SERIES to reduce its risk and use less of its resources to span a broader range of product segments. This will also allow Sere’s customers the opportunity to get familiar with their products so when they have to use it at the organization they work at they already will be familiar with it.