Targeting and Positioning Basics of a Software Firm
Case Analysis Note
A. Major decision issues in this case:
1. How would you position ThoughtWorks to the target of Type A firms? 2. What assumptions about Type A firms underlie the positioning that you propose and how can market research explore the validity of those assumptions?
B. Recommendation / inferences on the major issues, including supporting analysis:
1. Position ThoughtWorks for Type A companies.
2. Position ThoughtWorks as a visionary in technology and delivery in the market.
C. Summary of Analysis (quantitative and qualitative) supporting above recommendations 1. How would you position ThoughtWorks to the target of Type A firms?
Some of the Type A companies are present in current clients of ThoughtWorks due to their fit in the Niche market. Reviewing ThoughtWorks place in the IT consulting market, it is positioning itself as a leader in its success rate with high-risk high reward projects by combining their innovative methods and staff with superior capabilities on technology front.
ThoughtWorks views itself as a leader among its competitors in market for technology savvy projects with mission critical delivery. This is based on its previous success rate, the word of mouth of clients, its current relationship with IT industry analysts, and the growth of Agile Methods in the Global 1000 IT organizations. This is supported by Gartner Consulting ranking ThoughtWorks as a key Niche player and Visionary company, even though it is by far the smallest company among its competitors.
a) Industry: How to position ThoughtWorks for Type A organizations: As per Gartner’s report (Strategic Technology Planning, Picking the Winners, July 9, 2003): “Some industries have a higher-than-average proportion of type A organizations (such as financial services and pharmaceuticals) compared to other, less-aggressive industries (such as retail or manufacturing).”
This leads to conclusion that if ThoughtWorks plans to position itself for Type A organizations, ThoughtWorks should get into such domains / verticals where there is high probability of organizations adopting latest technology early.
Apart from industries mentioned in Exhibit 2: Thoughtworks 3.0 Vertical “Lite” Strategy, Thoughtworks can explore further opportunities of Type A in additional verticals.
b) Process: How to position ThoughtWorks for Type A organizations: As per Gartner’s report (Strategic Technology Planning, Picking the Winners, July 9, 2003): Most of Type A organizations have separate groups (called ATG) who decide on technology adoption.
Gartner’s’ report refers to STREET method adopted by these groups to evaluate a new technology. This method involves preparing technology portfolio and technology profile for evaluating its fitment with the business objectives:
To position itself for Type A organizations, ThoughtWorks can prepare such technology profiles for the industry (vertical) in which it is operating. This will enable target companies to understand technology fitment better.
2. What assumptions about Type A firms underlie the positioning that you propose and how can market research explore the validity of those assumptions?
To enterprises utilizing cutting edge technologies ThoughtWorks gives you capabilities in completing complex projects without delays among integrators because we have the right people and the right capabilities
Target Market: Type A Segment
Targeting the Type A segment is recommended due to the following listed below: o Type A Firms, characteristic of adopting high-risk strategies to gain the high-potential rewards goes hand in hand with Thoughtworks processes and characteristics. o High skilled nature of Thoughtworks.
o Quick and Efficient delivery process compared to other...
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