DataVast Harvard Case Solution & Analysis

 DataVast Case Solution

Introduction

China has been observed as the emerging market for Data Storage or backup devices. Chinese companies were following the North American standards in order to back up their data. Many companies were using old methods to store their important information. Winston Hao was an EMBA from the Rotman School of Business and he left Canada with a dream to build up his own business and found a growing opportunity in the market of data storage.

DataVast was founded by the Winston Hao with the China Telecom with an objective to provide Information backup and storage services to companies with products that are usually Public cloud. DataVast has 30 employees in their two offices in Beijing and Shanghai to sell their products in cities with high IT-infrastructure companies. (Hao, 2012)

20 percent of the SMEs in China were using CDs in order to back up their data. However, more than 30 percent of these SMEs are using external hard drives for the backup purpose and 40 percent of the SMEs were not using any type of storage or backup devices. The remaining SMEs in China use other methods of backup and storage. With the increase in technologies, the increase in the companies in China also has been observed. (Hao, 2012)

The market for the cloud computing was very slow, as many companies have doubt about the reliability and validity of related companies. The companies doubt  service providers as to whether they would sell their information in the market. DataVast is one of the developed companies in the field of cloud computing. DataVast has the credibility and reliability with the providence of Public Cloud services in China (Hao, 2012)

Problem Statement

Winston Hao; founder of DataVast, redesigned the company into a product designer company that was previously a service provider. Winston Hao has decided to launch his new product Data Security Box that has no association with its partner company, China Telecom. Data Security Box is like a hard drive that stores the large amount of information with highly secure encryption of data.

The Winston Hao was facing a problem regarding selection of  marketing strategies for both the short-term and long-term period. The market for the sale of Data Security Box was relatively unknown. Target market for the product was also unknown. There is confusion in choosing a target market of either SMEs or large companies. Winston Hao has concerns about the investment required for awareness of the product demand as well. However, all these problems were addressed to the desired level of net income.

Decision Criteria

Winston Hao has decided to retire after the period of five years. DataVast was recently facing huge losses with very little or no growth in its revenues. The first decision criteria for the solution of the problem includes the selection of a target market, which will be done on the basis of the expected net income alternatives.

The alternatives that would have a positive net income would get the company out of financial losses. The alternatives should increase the sales growth of the company for the next five years, before Winston Hao retires...................

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