Datavast Inc. The Target Segment Decision Harvard Case Solution & Analysis

Question 01: Describe the data storage industry in China in this case.  Include comments on technology and issues in accepting new technology?

As the case indicates, the data storage industry in China has been growing at a very slow pace. The reason is simple; the customers in the industry are unwilling to accept the different storage products offered in the market because of their concerns over the reliability and its privacy.

Moreover, the customers are concerned over the lack of security laws installed in the country which actually resist the companies to use the services of data storage industry. Moreover, the bankruptcy laws in the country are also underdeveloped therefore the companies do not trust the data storage service providers with their private company details.

Moreover, the data storage industry of China had products such as CDs, Portable External Hard Drive, USB Flash Drive and the Cloud Storage. These have been the major products available in the Chinese data storage industry. Moreover, Datavast has recently launched a new service for storage this is the Data Security Box.

The technology in the Chinese IT industry has been growing quite slowly. People are not actually aware of availing the services offered in this market. Moreover, the element of private cloud computing is also not availed by the market players.

The companies in the industry find it difficult to accept the new technologies because they have been unaware and unfamiliar to the concept of storing data through the intranet services. The increased prices of the technology are also an issue which restricts new buyers to come over and avail the services.

Question 02: Compare the buying practices of small companies versus large companies with respect to backup technology.

The buying practices of small companies as compared to the larger companies with respect to the backup industry are quite different. As the cases, the smaller companies are rather price sensitive. They tend to prefer products that do not cost much because of the limited budget.

Moreover, the smaller companies in China do not have the technical expertise and a well equipped IT department that can run and look after the backup technology therefore they prefer using simple and easy to use, user friendly backup technology.

Along with this, the selling cycle of the small sized companies is quite fast as compared to the large companies. A complete buying and selling within a small sized company can take place in two to three weeks. As compared to large company selling and buying process which takes almost two to three months in order to lock the deal and deliver it to the customer.

On the other hand, the large companies do not have such issues of limited finance. They are actually well equipped to spend money over the backup technology. They have the IT expertise to run the services and are actually fonder of availing the services of renowned players in the market such as IBM.

Therefore, it can be said that the case depicts the fact that the spending patterns of large companies and smaller companies is quite different. The financial strength of the companies actually decides the overall situation where the companies decide upon purchasing the backup technology.

Question 03: Compare and contrast IT suppliers and system integrators (SI).  What are the implications for Datavast and the DSB technology?

The different between IT suppliers and system integrators as presented in the case are as follows:

Systems Integrators have been working collaboratively with the IT departments to actually provide the full package solutions. Large companies have been generally more loyal to the SIs. Moreover, SIs has been quite content and accustomed to their customers IT needs and wants.

Moreover the product developers have been dependent upon the Sis to introduce and also sell the products to the customers since the larger companies have been unable to connect the parties. Moreover, System Integrators have been meeting with the customers on regular basis.

They actually conduct the meetings to overcome issues and to actually improve the services of the customers.  Along with this, the SIs makes the sale and the company normally looks to provide the product.

On the other hand, IT suppliers are mainly sold to the SMEs. There are a large number of IT suppliers in the market. The IT suppliers offer lower prices and also sell component individually. The business customers more frequently avail services of the IT suppliers. Moreover, they are not very knowledgeable also...........................

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