Question

Fill in the difference in the 7 strategic business variables for a software company compared to a traditional manufacturing company.

• Market segment:

Software Company –

Manufacturing Company –

• Products and Services to be offered, developed, discontinued:

Software Company –

Manufacturing Company -

• Distribution and promotion channels:

Software Company –

Manufacturing Company -

• Pricing Policies:

Software Company –

Manufacturing Company -

• Company investment policy on capital expenditure and divestment:

Software Company –

Manufacturing Company -

• How strategy will be financed:

Software Company –

Manufacturing Company -

• Identification of key people:

Software Company –

Manufacturing Company -

Answer 1

MARKET SEGMENT:- Software Companies- Market segmentations for software companies can be segmented in four ways pyscographic segmentation based on personality, values etc., job-to-be-done segmentation based on what the audience needs to do, demographic segmentation based on how old are the customers, their education etc., firmographic segmentation based on how big the company is? and their location etc., These segmentations sets you up for a successful marketing to the type of customerts that you need and these are the basis for your customers personas.

Manufacturing Companies- Market segmentations help a manufacturing company to personalize their marketing compaigns to target potential customers. With the help of market segmentations strategy the clients can segment the customers based on their needs, wants and demands. It helps the clients to determine the market trends and segment the market based on variables such as geography, demography, and psychographics.   

PRODUCTS AND SERVICES TO BE OFFERED, DEVELOPED, DISCONTINUED: - Software Companies:- A software company should offer primary products such as various forms of software, Software technology, software distribution and software product development. Software companies should provide programming services, networking srvices, security, solving IT problems, website design and maintenance, collecting and storing up data. The product which no longendr fits your brand image that particular product should be discontinued. Manufacturing Companies:- Manufacaturing companies provides products like manufacturing papers, manufacturing soap and detergent, biscuit etc., The product development should focus on customer needs rather than technology improvements and deep understanding of the customers needs. The product which is disliked by the customers should be stopped.   

DISTRIBUTION AND PROMOTION CHANNELS:- Software Companies:-   Software companies tend to focus on the technical software developers and technical part of their services, they work out a social media strategy, web designing,video marketing and media relations. Manufacturing Companies:- Manufacturing companies promote their business by advertising , infographics etc the four basic channels of distribution are producer, wholesaler, retailer and end consumer.   

PRICING POLICIES:- Software Companies:  Software companies pricing policy allows you to hit revvenue targets, accomplish market share goals, offer value etc., Pricing is one of the defining feature of software companies. Manufacturing Companies: In a manufacutring companies the manufacturer must understand the differenet types of costs and how they behave. The "best" price is one that will maximise the profits of the company. The best selling price should be cost oriented and market oriented.

COMPANY INVESTMENT POLICY ON CAPITAL EXPENDITURE AND DISINVESTMENT:- Software Companies:- Capital expenditure refers to the fund that are used by company for purchase and improvement of their business. The high return on investment opportunities and it is a long term investment which gives revenue to the company. They will mainly invest for profit making and will not invest in business which does not give them revenue.   Manufacturing Companies:- The capital investment of manufacturing comapanies will always invest in land, labour and heavy machines which is the main important factors for manufacturing and the backbone of the manufacturing industry.   

HOW STRATEGY WILL BE FINANCED:- Software Companies:- In software companies the strategies will be formalized in a written document or balance scorecard. Its strategic goals should mirror business projects and it will be implemented step by step by their managing directors. Manufacturing Companies:- In manufacturing companies the strategies will be implemented by the top level management to the lower level management. In such a way that they will identify consumer needs and by knowing the trends in the market they will improve their product design and etc.,

IDENTIFICATION OF KEY PEOPLE:-

Software Companies:- Company secretary, Managing Director, General Manager,Manager are the key people in software companies.

Manufacturing Companies:- Manufacturer, Producer, Buyer and consumers are the key people..