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WebSpective Software, Inc. (A) Case Solution & Answer

WebSpective Software, Inc. (A) Case Solution  

Introduction

A software company –WebSpective is engaged in manufacturing  products to help the origination-sin effectively managing the network of servers that support their websites. Despite the continuous success and growth in the market; the company is unable to gather customers. By October 1997, the only customer of WebSpective was Fiduciary Investment Corporation. The company interviewed prospective customers,including its only customer Fiduciary and identified a specific set of the requirements of products,and it prioritized those-requirements as a basis for marketing and product strategy that appealed to such broader customer sample and developed products on the basis of these requirements.

When House joins the company, why aren’t the company’s products selling? How have the founding team gotten into this position?

When House joined the company, the company was not successful in selling the products due to many reasons, such as: the company didn’t stress over the significance of collecting the information related to the customers’ needs and it didn’t translate such needs into product features or specific requirements. Thereby, the company and the founding team were not effectively addressing and identifying the needs of the customers, which are essential for any company to make sure that they have achieved customers’ loyalty and their satisfaction. The negligence of such factors was the main reason behind the company being unable to attract the new customers as well as to retain its existing customers.(Barabba, 2019).

Additionally, the company’s founding team was engaged in building highly customized versions of the system management software for the applications of corporate clients while working at the prominent Information Technology consulting company, due to which the team realized the need to have a more powerful system management software. It is because of the proliferation’s ofe-commerce practices, which have forced the corporate Intranets and Internet to emerge. Thus, the lack of information about the customers’ needs as well as the need for the more powerful system management software, were the reasons behind the significant decline in the company’s sales.

What are the strengths and weaknesses of the new development/planning process House has introduced into WebSpective? At the end of the case, why aren’t the company’s products selling? What should House and Shah do about it?

Glenn House is the CEO of WebSpective, who was exposed to product planning process i.e. Concept Engineering (CE) but had faced many challenges in the midst of the situation when the company had only one customer, and it was concerned about selling the highly technical products. Additionally, one of the reasons behind the reduced sales volume of the products, was high resistance from the customers and the sales force. He tried to address this problem by hiring smart people with good product marketing skills, but it didn’t work out the way he had expected. The overconfidence of the team as they believed that they had enough information regarding customer needs and their buying behavior, had contributed to the failure in understanding what the company’s partners needed and how fast the market tended to penetrate or get developed over the period of time………………….

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