LEARNING OBJECTIVES

This case is intended for Master's level students. The case highlights the challenges faced by a software production company in various stages of its life cycle. We discuss the evolution of the company, its product offerings and consequent changes in its business model.

In this case, we use a systematic framework, derived from earlier literature and verified with empirical research in companies, for evaluating the business model of a software product company. This business model framework, which is documented in (Rajala et al., 2001) is based on Kotler's (1991) whole product concept and Cravens' (1987) product life cycle ideas, and used to analyze the options available for a software company. After completing the case, students should be able:

• To define the business models of software companies

• To evaluate the options available for a given company, related to its:

  • product development model

  • revenue logic

  • distribution and sales model

  • servicing and implementation model

• To discuss both growth and product strategies of software companies