Salesforce.com: B2B blue ocean strategy
- 1. SALESFORCE.COM: CREATING A BLUE OCEAN IN THE B2B SPACE GROUP 7 DEBOJIT | RAKESH | ASHISH | SACHIN | PIYUSH
- 2. Background • Founded in 1999 by former Oracle executive Marc Benioff • Revolutionary tagline “ The End of Software” • Founded with 10 employees, $2 million investment • World’s Largest hosted CRM service provider, 87,200 customers in 2010 with $1.3 billion revenue
- 3. WHAT ARE THE TRADITIONAL CRM PRODUCTS? Customer Relationship Management (CRM) is a strategic solution to manage the relationship with customers and prospects Technological tools to help businesses manage the customer facing processes Across different lines and via multiple channels Traditional CRM model is delivered by established players such as SAP, Oracle, Siebel etc. Software is installed, configured and customised on the premises of individual company’s use, needed significant internal expertise and external professional services
- 4. WHO WERE THE CUSTOMERS OF THE TRADITIONAL CRM PRODUCTS? Mainly the large businesses that had complex requirements and systems infrastructure to be integrated with the applications were the major customers of this kind of traditional CRM products.
- 5. WHO WERE THE NON-CUSTOMERS? • Small and medium sized businesses which simply could not afford the cost of basic CRM applications or accommodate the lengthy deployment process were used to be the non-customers.
- 6. WHAT WERE THE BLOCKS TO BUYER UTILITY IN TRADITIONAL CRM OFFERINGS? Time consuming Expensive Integration with legacy process Complexity and lack of understanding Required great customization High failure rate
- 7. HOW DID SALESFORCE.COM CREATE NEW MARKET SPACE? ON PREMISE OFFLINE IMPLEMENTATION B2B online CRM software On demand subscription Model Cost and Installation time dropped down Lower risks & Failure Rates HOW DID SALESFORCE.COM CREATE NEW MARKET SPACE? ON PREMISE OFFLINE IMPLEMENTATION B2B online CRM software On demand subscription Model Cost and Installation time dropped down Lower risks & Failure Rates
- 8. WHAT VALUE DOES IT OFFER TO CUSTOMERS? Freed from the need of purchasing software license Flexible Platform Lower Cost On demand solution Focusing on Core featuresSimple and easy user interface
- 9. HOW WAS SALESFORCE.COM ABLE TO SUSTAIN MARKET LEADERSHIP IN THE ON-DEMAND CRM MARKET FOR MORE THAN A DECADE? • Traditional CRM vendors started offering hybrid on-demand solution • SAP on-demand, on-premise to existing customers • Oracle acquired Siebel and upgraded to an on-demand CRM solution • New entrants such as ZOHO, RightNow, Salesnet etc. quickly copied salesforce model
- 10. HOW WAS SALESFORCE.COM ABLE TO SUSTAIN MARKET LEADERSHIP IN THE ON-DEMAND CRM MARKET FOR MORE THAN A DECADE? • Traditional vendors on-demand hybrid offering incompatible with legacy systems • New entrants offered customers a smooth migration to the next gen solutions • Salesforce adopted re-integration strategy
- 11. THANK YOU!!