Tuesday, August 27, 2019
Competitive Advantage of Sales force.com Case Study
Competitive Advantage of Sales force.com - Case Study Example Finally, the paper will outline the action plan about how to implement the suggested recommendations. Basically, SWOT refers to strengths, weaknesses, opportunities and threats and this is a widely used technique by managers to determine the strategies that can be implemented by the firm in its operations (Strydom, 2004). As noted, Salesforce.com specialises in providing the CRM services and the section below outlines its SWOT analysis. The company is facing problems related to competition and its inability to realise profits from its operations. Essentially, businesses are primarily concerned with generating profits in their operations as their main goal. However, in this particular case, the main problem is related to intense competition facing the company in its operations. Indeed, competition is inevitable as a result of the fact that there are also other players in the environment in which organizations operate. Porter (1985) has suggested that there are companies with viable strategies that can hardly matched by their competitors and this gives them competitive advantage. Thus according to this concept, strategies such as differentiation, diversification low cost leader as well as focus can give the firm competitive advantage depending on how they are implemented. In the case of Saleforce.com, differentiation and low cost leader are viable alternatives that can be implemented. Differentiation entails that the company ought to design its products and services in a unique way in order to gain customer superior value. This will help the company to gain more revenue by virtue of charging high prices for quality products offered.