Broad Vision Today Broad Visions Software enables Mass
Broad. Vision Today • Broad. Vision’s Software enables – Mass customization of Internet marketing • Provides interactive, targeted marketing for every customer • Better than direct marketing or database marketing • Attracts & engages customers, retains them, and allows you to transact with them – Also allow you to predict their needs • Currently penetrating telecom, financial services, and Web retailers • Software uses Rule-based concepts versus collaborative filtering – Most of customer’s customers do not care what other person bought, trusts experts more, and have more at stake – Customers are usually not impartial distributors and want to change prices with different profiles
Steps to Enhance Competitive Position • Is retailing a good market space to penetrate – Collaborative Filtering has proved successful there and Broad. Vision does not excel in CF – Some rationalization of this market space is necessary • Have they considered strategic partnerships with ERP software companies? – Rule-Based might be more effective in B 2 B • Is the R&D structured to lock-in current customers?
Steps to Enhance Shareholder Value • In a rapidly evolving industry, it is imperative to turn a profit before the industry direction changes • Although revenues increased approximately 3 x (see statement of operations), cost of license revenues increased 4 x (cost controls in place? ) • Although Broad. Vision claims to want to follow Cisco by servicing repeat customer base, sales and marketing expenses have almost doubled (currently has 300 customers … how many more do they need? … )
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