DATAVAST INC.: THE TARGET SEGMENT DECISION Harvard Case Solution & Analysis

DATAVAST INC.: THE TARGET SEGMENT DECISION Case Solution

Introduction

Datavast is a China based company and it was founded by its present general manager Winston. Datavast is operating in a data storage industry through public cloud with having thirty employees and a strategic partner China telecom. The management of the company considered that having partnership with China’s largest telecommunication could help the company in order to achieve a strong customer base in the Chinese data storage market.

Datavast replaced its public cloud storage with its newly launched Data Security Box product,which helped the company to change its operations from a service provider to a product designer and manufacturer. Moreover, Datavast is also considered as an established player in this comparatively unfamiliar market.

It is expected that establishing backup copies of important data is relatively a new concept in China which could allow the users to store digital files in a secondary location in order to minimize the risk of loss of important data. In addition to this,Datavast Security box will be achievements it is addressing the ultimate need of Chinese people looking for a storage solution which resembles a personal storage solution. Furthermore, it is expected that the company will provide personal storage solution at cheap rate as compared to other players in the Chinese data storage market.

It is expected that the owner of the company does not have so much resource in order to target the whole market as there is a significant room in Chinese business industry, therefore the general manager of the company is considering for an appropriate and suitable segment which could help the company to achieve profitability as currently company is operating at loss.

Target Market

In order to attain the organizational goals of the company, it is mandatory for the company to work towards attaining their objectives in order to remain competent in the industry. For operating effectively in the industry, it is essential for the company to strategically target the most feasible segment of the market with effective means and methods of engaging with the customers. Efficient interaction with the customer will enable the company in communicating their intended message and content to the customer of the market (JR., 1998).

Keeping in mind the intentions of the top management of the company, it would be most feasible for the company to target the organizations performing business activities on a scale of small and medium. Targeting organizations which belong to such standards of operations will enable the company in meeting their organizational objectives behind entering the market and the expenses of the company would also be under the control of the company as the operations of the companies or organizations would easily be manageable by the firm (M. C. Cant, 2009 ).

Data Vast INC The Target Segment Decision Case Solution

In addition, the cost incurred in targeting the specific segment would not require the company to invest more in their business operations. In comparison with the segment of large firms, low cost would be accounted towards the company and allow them to invest a large proportion of their resources in other primary and essential activities.

Data Vast INC The Target Segment Decision Case Solution

Market Needs

The customers of newly entered market are the most important and essential aspect for the company’s growth and future. The performance of the company heavily depends upon their value delivery to the customer of the market. The needs of the market are transforming and can never be expected to remain the same in all the circumstances. It is imperative for the company to effectively identify the needs of the market as they cannot be overlooked by the company or else they will directly influence the performance of the company (SAXENA, 2009).

The market is currently inclined towards products that can ensure them of safe and secure storage, while keeping the costs incursions in mind. The company can heavily benefit from such needs of the market and increase their performance in the market...........

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