Case Study – Company XYZ consists of two individuals with a background in software

Subject: Business / General Business
Question
Week 11 Case Study
Case Study:
Company XYZ consists of two individuals with a background in software and development who
have successfully developed and marketed apps. One other member of the company has a
background in marketing, and has recently completed their MBA. All three co-owners have
chipped in personal funds to support the founding of the company and development of their
business. No outside funding has been necessary at this point, but with the technology
application ready, the company is uncertain if additional funding sources will be necessary to
hire additional staff and secure B2B purchases of their technology.
Company XYZ produces a technology that uses voice recognition to control kitchen appliances.
The company does not sell appliances, but has developed the technology and plans to sell B2B to
companies who currently manufacture appliances. In this way, Company XYZ expects they will
have multiple manufacturers who would be interested in their technology, and integration into
several different appliances.
The end users using this technology would be primarily residential customers; however, the
customers for Company XYZ would be appliance manufacturers. The technology would be
explained to these manufacturers and initially sold, and the individual manufacturers would
responsible for explaining and justifying the technology to their residential customers.
Manufacturers would also be responsible for maintaining any warranties offered on the product,
even if the technology were to have any issues.
Company XYZ plans on using sales reps to reach the B2B customers for this technology. Some
small models have been developed to show those manufactures possibilities for integration, and
the manufacturers will be able to determine which appliances would best serve their end users
for the appliances. These sales people will be trained in the technological aspects of the product
and will have a sales background. These individuals will personally meet with these
manufactures to sell the technology.
The primary model used will show how a refrigerator could respond to customers about current
contents in the refrigerator. Meal planning or cooking would be made easier by asking what was
inside, and the accompanying app could help while grocery shopping to ensure consumers were
not purchasing items they already had at home. The demonstration would be very limited based
on the model size and limitation of one device; the voice recognition capabilities would be the
primary display for selling the product.
Previous consumer behavior for this type of technology has had some questionable outcomes.
Many customers are very interested in interactive “Smart Homes” with various technology such
as app-controlled devices like garage doors, door locks, or thermostats. In addition, the voice
activated Echo by Amazon has been very successful. The primary issue has been ensuring
customers know what the product is, what it can do, and ensuring the customers targeted can
afford the product price. The Pricing plan focuses price skimming, initially offering the product at a high price point, one
the company hopes technology enthusiasts and visionaries will be willing to pay. After the
product has been on the market for two year, the price will drop by 75%. Company XYZ is
unsure how this price skimming plan will make early customers feel about their own purchase,
and is marketing is unsure if the drop in price will indicate a drop in quality to the next
customers who purchase the product.
At the point of this case study, we are assuming there are no other voice recognition technologies
integrated into home appliances. (In reality, this may or may not be the case).
Questions to Answer:
1. Critique the pricing strategy.
2. Critique the advertising and promotion strategy.
3. Does it make sense to focus on the stated industry? Why or why not? (If not, who is the
target market and why?)
4. Is this characterized as market oriented? Why or why not? (If not, what should they do
differently).
5. Name two core competencies. Are they (or will they be) effectively leveraging these?
6. According to “Crossing the Chasm” described by Blank (2013), will this be successful?
What will it take (or has it taken) to penetrate the mass market?
7. Is this considered a disruptive technology? (Explain/support your reasoning).
8. Who should take the lead (Research & Development or Marketing) with this product?
9. Does this product have a foundation for competitive advantage? Why or why not?
10. Is this a success? Will it be successful in the future? Why? What else needs to be done
to ensure ongoing success?
Requirements:
Your submission will be a Word document, typed in 12 point Times New Roman Font. Your
submission will be graded on spelling, grammar, and adherence to APA formatting rules. Please
make sure to use references to support your statements (a minimum of two required), and
properly cite both in-text and in a references list. You are permitted to reply to each of the
questions above as a paragraph for each to ensure you have the question covered. Please
remember a paragraph has a three-sentence minimum per APA standards.

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