Considering the current position and competitive advantages of ScriptLogic, we recommend that ScriptLogic should focus on up-selling and customer expansion in the existing market as their next step. However, in the long-term, ScriptLogic should prepare to alter their organizational structure to a certain extent in order to expand their targets and selling capabilities for diverse and complex products, as summarized in Exhibit 1.
Since it has focused on SMB market, ScriptLogic has developed a very efficient and organized sales force, selling process, and campaign management system to tackle that market. Following the company’s motto, “Point, Click, Done!”, ScriptLogic has provided infrastructure software that is easy to download, install, and use.
The sales pipeline starts from the advertising campaigns through both ...view middle of the document...
However, the current internal sales forces with only 10 specialists, is not familiar with complex products and is not ideal to sell the newly expanded product set. Additionally, the company has low levels of experience in selling enterprise products, which is a whole new ball game as compared to the SMB focused products, both in terms of the deal size and the position of the client who makes the decision to buy a product or a solution suit.
Although ScriptLogic could exploit the synergies it has with Quest Software’s enterprise sales forces, it would still remain a challenge for ScriptLogic’s current sales team to become comfortable with Quest’s complex product line.
As mentioned above, looking at the current scenario, we recommend that firstly the company should focus on existing market to upsell the current products and minimize the churn rate of existing customers. Specifically, to increase revenue within the existing customer base, the company should emphasize the importance of improving the retention rate amongst the sales team members. Furthermore, by collaborating with more value-added resellers (VARs), the company should try to expand its reach and geographical presence in the SMB markets.
The firm, as a short-term strategy, should look to expand its product set and modify the current sales process to a certain extent so that it would be compatible with the new strategy of cross selling. In the long run, the management team needs to extend its product line into the Enterprise market. This market diversification is inevitable in order to sustain growth. To achieve this goal, the company needs to nurture more specialists who have extensive product training and more technical skills than their average salesperson. In line with securing more specialists, the company should expend more on education and training. Some investment of time and capital will also be required to develop diverse customized product packages and value-added services