Product details

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Case
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Reference no. 9B01E002
Subject category: Entrepreneurship
Published by: Ivey Publishing
Originally published in: 2000
Version: 2009-12-17
Length: 10 pages
Data source: Field research

Abstract

SalesDriver.com (SalesDriver) was a Boston-based e-commerce application service provider that provided a turnkey solution for sales managers to manage their sales contests online. It had just achieved its 1,000th user mark and had the opportunity to snag software giant Lorimer Development Corporation (Lorimer) as a new client. The solution Lorimer had requested would alter SalesDriver''s current product by including functionality that other users might not need. The general manager had to evaluate the economies of scale by keeping one product for all users, and the economies of scope by tailoring the product for individual customers. Developing the added function as a one-off would take significantly less development time than adding the function to the site and making it available to all customers. He had to decide which approach was best in the long run.
Location:
Industry:
Size:
Small
Other setting(s):
2000

About

Abstract

SalesDriver.com (SalesDriver) was a Boston-based e-commerce application service provider that provided a turnkey solution for sales managers to manage their sales contests online. It had just achieved its 1,000th user mark and had the opportunity to snag software giant Lorimer Development Corporation (Lorimer) as a new client. The solution Lorimer had requested would alter SalesDriver''s current product by including functionality that other users might not need. The general manager had to evaluate the economies of scale by keeping one product for all users, and the economies of scope by tailoring the product for individual customers. Developing the added function as a one-off would take significantly less development time than adding the function to the site and making it available to all customers. He had to decide which approach was best in the long run.

Settings

Location:
Industry:
Size:
Small
Other setting(s):
2000

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