What are the issues that Alias must resolve?
The Alias Company must resolve the issue of price adjustments when competition persists. The policy of the company about the pricing of products has not been favorable to the sales reps. For example, 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 the 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 the most serious competition?
The market size grew each year, and 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?
Alias Research should research the behavior of competitors to know their strategies. The company should also research strategies for product differentiation to achieve a competitive edge.
Should sales reps be allowed to negotiate prices?
The company should allow the sales reps to negotiating the prices. The competitors allow their sales reps to negotiating 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 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.