Case Study report on the famous Salesforce.com CRM strategy

1. SALESFORCE.COM: CREATING A BLUE
OCEAN IN THE B2B SPACE
GROUP 7
DEBOJIT | RAKESH | ASHISH | SACHIN | PIYUSH

2. Background
• Founded in 1999 by former Oracle executive
Marc Benioff
• Revolutionary tagline “ The End of Software”
• Founded with 10 employees, $2 million
investment
• World’s Largest hosted CRM service provider,
87,200 customers in 2010 with $1.3 billion
revenue

3. WHAT ARE
THE
TRADITIONAL
CRM
PRODUCTS?
Customer Relationship Management (CRM) is a strategic
solution to manage the relationship with customers and
prospects
Technological tools to help businesses manage the customer
facing processes
Across different lines and via multiple channels
Traditional CRM model is delivered by established players such
as SAP, Oracle, Siebel etc.
Software is installed, configured and customised on the
premises of individual company’s use, needed significant
internal expertise and external professional services

4. WHO WERE THE CUSTOMERS OF THE
TRADITIONAL CRM PRODUCTS?
Mainly the large businesses that had complex
requirements and systems infrastructure to
be integrated with the applications were the
major customers of this kind of traditional
CRM products.

5. WHO WERE THE NON-CUSTOMERS?
• Small and medium sized businesses which simply
could not afford the cost of basic CRM applications
or accommodate the lengthy deployment process
were used to be the non-customers.

6. WHAT WERE THE BLOCKS TO BUYER UTILITY
IN TRADITIONAL CRM OFFERINGS?
Time consuming Expensive
Integration with
legacy process
Complexity and
lack of
understanding
Required great
customization
High failure rate

7. HOW DID SALESFORCE.COM CREATE NEW
MARKET SPACE?
ON PREMISE OFFLINE
IMPLEMENTATION
B2B online CRM
software
On demand
subscription Model
Cost and
Installation time
dropped down
Lower risks & Failure
Rates
HOW DID SALESFORCE.COM CREATE NEW
MARKET SPACE?
ON PREMISE OFFLINE
IMPLEMENTATION
B2B online CRM
software
On demand
subscription Model
Cost and
Installation time
dropped down
Lower risks & Failure
Rates

8. WHAT VALUE DOES IT OFFER TO CUSTOMERS?
Freed from the need of
purchasing software license Flexible Platform Lower Cost
On demand solution Focusing on Core featuresSimple and easy user interface

9. HOW WAS SALESFORCE.COM ABLE TO SUSTAIN MARKET
LEADERSHIP IN THE ON-DEMAND CRM MARKET FOR MORE
THAN A DECADE?
• Traditional CRM vendors started offering hybrid on-demand solution
• SAP on-demand, on-premise to existing customers
• Oracle acquired Siebel and upgraded to an on-demand CRM solution
• New entrants such as ZOHO, RightNow, Salesnet etc. quickly copied salesforce model

10. HOW WAS SALESFORCE.COM ABLE TO SUSTAIN MARKET
LEADERSHIP IN THE ON-DEMAND CRM MARKET FOR MORE
THAN A DECADE?
• Traditional vendors on-demand hybrid offering incompatible with legacy systems
• New entrants offered customers a smooth migration to the next gen solutions
• Salesforce adopted re-integration strategy

11. THANK YOU!!