Sy.Med Development Inc. Harvard Case Solution & Analysis

In March out of in 2001, the president out of Sy.Med of Development, Inc (Sy.Med), a small health-sanitary means of software firm, was concerned about about sales productivity by its company in the year-to-'s date. Nine units have been projected, but only three were sold. As the result of, Sy.Med had 66 percent below the unit of forecast of the president's website, 210 percent below the his forecast of net income, and lost a $ 40.000. The president wondered, is whether change of to the base price out of software had been the necessary to boost sales. The case of introduces the notion of "the value pricing,", then there is, pricing on basis from the a value obtained by customers, not pricing on the basis of from value, providing the product or service. The concept of value pricing by at Sy.Med requires the simultaneous the consideration of out of by the client segments of the and sales information by force the selection in the with high-tech the setting. With careful the calculation, students of the can define, in favor of to a concrete by the client from with the adjustment software OneApp. Some the sensitivity analysis is required because, that not all sizes practice are equivalent, and they not to face with those same costs on labor power. Despite the fact, pricing decision of the is in the center of attention case, strategy (eg,, relating to, to by the client selection, strategic focus) and questions is, sales by force inextricably connected among themselves to this decision. After addition, as discussions in the classroom is of complete, students should understand, that pricing decisions did not can be crafted in isolation; strategy and the structure of the market must be considered. Case of the well works in marketing of Of course the kernel MBA, to introduce the concept out of to the value pricing, and equally well into the course are concentrated on pricing, to emphasize the intercommunications among organizational of questions, competitive market and pricing decision. Case is also can be used in the orientation of program or a as an introductory case, to help by train by students in the given the art from the the preparation by quantitative analysis in case. «Hide
on Randle D. Raggio Source: Richard Ivey school of business Foundation 20 pages. Publication Date: May 26, 2009. Prod. #: 909A10-PDF-ENG

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