Impact of market leader in marketing system software products of small scale industries
It has been around for sometime now, the nagging little idea of being an entrepreneur. I term it as 'little' but we all know how big it is on its entirety. I should say it is a dream, often dusted. I use to contemplate about using my IT exposure to feed the idea. My experience is almost bound entirely to a single IT concern as I have been working in the current concern for past five years. They are generally into services for embedded system softwares and have an engineering strength just over 200.
Whenever I think of the dusty dream, I wanted to see how things are being done. I loved to tread in a laid road rather than leaving footsteps for someone to follow. I label such steps as 'data collection'. I have been employed with the same concern so I have little knowledge of the standard industry strategies. But, the strategy deployed by my current organisation is as transparent as water. The organisation is mainly into services but often has ventured into system software products. I should say all their efforts in making products were futile.
Generally, system software products have life-span ranging in 4-8 years including the maintenance activities. For developing such products from core, market analysis forms the backbone. Market for software products is dispersed through-out the world and the requirements of any organisation for such products as such are not generally divulged. Such requirements or the leads for product business are generally gathered in technical conferences and other ESC (Embedded Systems Conference) shows.
ESC shows are conducted frequently in various parts of the world throughout the year. Making presence in all the conferences cannot be affordable because of the high-cost factor especially for small-scale industries. On the other hand, market analysis also cannot be totally neglected. So, my current organisation chooses to take part in selected conferences. Leads from these conferences are generally encouraging but the requirements are not always soothing. The influence of market leader in the target segment has a very high impact. For example, considering there is a substantial market for products for 8051 micro-controllers, Keil is the market leader who keeps 85-90% of the market share.
The complexity of the products clubbed with their longevity divert the focus towards market leader. Complexity in developing the products involves requires good intellectual base and venturing into the products without a proper customer base is almost impossible because of their longevity. Small-scale industries cannot consider deploying the intellectual base for a product without a proper customer base. Bettering the market leader (in any aspect) also becomes impossible since product is yet to evolve. The old-day proven strategies like penetration pricing fail here. Such constraints paves way for the market leader.
Pricing has been the most effective tool for Indian IT business. So, our organisation tried using the low-cost pricing model. Such pricing fetches low-end supporting products but, the core business they are seeking is often flooded by the legacy of the market leader. So, the possibility of them entering into the market is frequently held up.
Such thoughts and analysis also affects my dusty dream to bite the dust often.
Whenever I think of the dusty dream, I wanted to see how things are being done. I loved to tread in a laid road rather than leaving footsteps for someone to follow. I label such steps as 'data collection'. I have been employed with the same concern so I have little knowledge of the standard industry strategies. But, the strategy deployed by my current organisation is as transparent as water. The organisation is mainly into services but often has ventured into system software products. I should say all their efforts in making products were futile.
Generally, system software products have life-span ranging in 4-8 years including the maintenance activities. For developing such products from core, market analysis forms the backbone. Market for software products is dispersed through-out the world and the requirements of any organisation for such products as such are not generally divulged. Such requirements or the leads for product business are generally gathered in technical conferences and other ESC (Embedded Systems Conference) shows.
ESC shows are conducted frequently in various parts of the world throughout the year. Making presence in all the conferences cannot be affordable because of the high-cost factor especially for small-scale industries. On the other hand, market analysis also cannot be totally neglected. So, my current organisation chooses to take part in selected conferences. Leads from these conferences are generally encouraging but the requirements are not always soothing. The influence of market leader in the target segment has a very high impact. For example, considering there is a substantial market for products for 8051 micro-controllers, Keil is the market leader who keeps 85-90% of the market share.
The complexity of the products clubbed with their longevity divert the focus towards market leader. Complexity in developing the products involves requires good intellectual base and venturing into the products without a proper customer base is almost impossible because of their longevity. Small-scale industries cannot consider deploying the intellectual base for a product without a proper customer base. Bettering the market leader (in any aspect) also becomes impossible since product is yet to evolve. The old-day proven strategies like penetration pricing fail here. Such constraints paves way for the market leader.
Pricing has been the most effective tool for Indian IT business. So, our organisation tried using the low-cost pricing model. Such pricing fetches low-end supporting products but, the core business they are seeking is often flooded by the legacy of the market leader. So, the possibility of them entering into the market is frequently held up.
Such thoughts and analysis also affects my dusty dream to bite the dust often.
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