ZUORA IN 2013 Harvard Case Solution & Analysis

ZUORA IN 2013 Case Solution

Introduction

The company was founded by three talented founders in the year 2007. Mr. Tien Tzou was the CEO of the company, who came from Sales force.com and the remaining two founders are Cheng Zou and K.V. Rao, who came from WebEx. With the help of their experiences and the innovative mind, they came up with the solution for providing software as a service within their respective companies, which could provide billing solutions in form of Z-Billing products and the Z-Business Solution.

SaaS Business and its Potential Benfits:

In order to compute the viability of SaaS Business to make any recommendation for the Zuora Company, the first and the foremost step is to judge the profitability of the company in the long run. It can be seen that the company, with the help of this new model,meet the needs of the customers in the most efficient manner than the traditional approach, which requires more time and money. Looking at the stats of the current company, it can be seen that the lifetime value of a typical customer of the company is higher than the cost to acquire a typical customer.

In addition to this, the other method is to check the time to profitability as well as the cash flows. The current company is relatively a larger business as compared to the competitors and it requires more time to recover the cost to acquire that particular customer. It can be seen that the major concerns of the customers in such type of business includes the reliability, security and cost effectiveness for the large businesses.

It can be seen that technology is rapidly increasing, which strongly concludes the fact that Cloud system offered by the company can bring in more reliability for its customers. In addition to this, as far as security is concerned, the company provides economies of scale through its products, with which the customers cannot think of losing the current company unlike its competitors. Last but not the least, concern of the large business could be easily managed because they take this as a real option to operate the business effectively and efficiently.

Challenges this type of Business Face

The significant challenge the business faces is related to the weak control of the provider, which could introduce a malicious program that could negatively affect the security of other tenants. In addition to this, in order to provide economic solutions in the multiple customer environments on the same server, the data destruction could be a possible threat.  In the case, if multiple tenants are working at the same time, then the capacity optimization could create issues of quality for the other tenants. Zoursa also faces a challenge because of the flexible nature of this service business,which should be managed efficiently because it could otherwise create abuse of resource, which ultimately could cause the failure of services.

The company should utilize the encryption method in order to secure the authentication of data and help in eliminating any malicious programs that could hurt its integrity. It can be easily adopted in the SaaS model applied by Zuora Company.

Recommendation

By deeply analyzing the overall strategies of Zuora Company in this report, it can be seen that the key success factor of the company is its CEO and his strong vision of taking the business to the next level. The company has currently employed  600 people, who are provided with utmost care,This is also its key for growth of the company; the company refers these employees as ZEOs. In addition to this, the company utilizes 9 key elements that could provide the competitive edge in the industry, which includes the services, sales, marketing, customer success etc...................

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