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Alias Case

Outline

What are the issues that Alias must resolve?
Describe Alias’ advantages and disadvantages.

Where are Alias’ opportunities and most serious competition?

How should Alias Research proceed?
Should sales reps be allowed to negotiate prices?
The Company

Competitors
Customers

Recommendations
A SWOT Analysis

Alias Case

What are the issues that Alias must resolve?

The Alias Company must resolve the issue of price adjustments when competition persists. Isaac Babbs was disappointed when he lost a contract to Wavefront. This was the fourth time to lose a sale contract due to the high prices. The company has fixed prices, which the sales reps should follow.

Describe Alias’ advantages and disadvantages.

Advantages
The products of the company could be designed in different forms. The products did not require extensive training. The company has a strong culture that allows the employees to be innovative.
Disadvantages
The company has fixed prices that hinder sales reps from competing with other companies. The products of the company were not compatible with many other products.

Where are Alias’ opportunities and most serious competition?

The market size grew each year, and the Alias acquired additional customers.
The emergence of many companies using the Alias software offered a good opportunity to expand its business. Alias experienced serious price competition from other companies.

How should Alias Research proceed?

The Alias Research should conduct research about the behavior of competitors in order to know their strategies. The company should also research on strategies for product differentiation so as to achieve a competitive edge.

Should sales reps be allowed to negotiate prices?

The company should allow the sales reps to negotiate the prices. The competitors allow their sales reps to negotiate the prices, and they sell products easily. The company has lost many contracts because the prices are fixed. Allowing the sales reps to negotiate the prices will help create a bargaining power.
The Company
The Alias Research Company was introduced in 1983. The founders are Stephen Bingham, Nigel McGrath, Susan McKenna, and David Springer. The founders had few resources when establishing the company. Thus, they had to borrow money to get enough resources. Alias grew fast because the founders and employees were willing to achieve the goals of the company. The company applied informal culture in the management of all activities. The company had a strong team spirit, which allowed the employees to unite and consult each other.
Competitors
The major competitors were Wavefront, TDI, and E&S.
Customers
The company served automobile companies.
Recommendations
The management should allow the sales reps to fix prices depending on the pricing strategies of the competitors. The culture of the company should be changed to allow innovations into different products.
A SWOT Analysis

Strengths
Weaknesses

The products of the Alias were used in many fields.
About 70% of the automobile companies applied Alias in designing products.
The products of Alias were unique, and could be used on various appliances
The company had a professional marketing team to ensure that customers were aware about the new products in the market.

 

The company was not flexible in its pricing strategy
The products of Alias could only be used on Silicon Graphics hardware.
In addition, IBM workstations were also compatible with the Alias products.

Opportunities
Threats

The market size grew each year.
The emergence of many companies using the Alias software offered a good opportunity to expand business.
There was intense competition from other companies.
The competitors provide low prices for their products.
The informal culture might not attract companies that require a formal system.
The company is exposed to copyright infringement because people can copy and resell the software.

 
 

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