Management Exercise Basedon Neoforma Master- Case, Added

¶ … management exercise basedon Neoforma master- case, added case practice marketing management skills.) Smart Card LLC expertise smart cards magnetic stripe tech- nology develop applications solutions meet rapidly growing demand marketing frequency programs.

In my opinion, the management could have done some additional research on the market to quantify the size of the market. There are several issues that are relevant in this case. One is that there are still questions whether the card will work or not, something that is obviously likely change the size of the market itself.

At the same time, there doesn't seem to be enough research into whether or not companies would actually be interested in such technology. Obviously, customer retention is a great topic for different businesses on the market. However, many of the companies already have their own internal programs and solutions that they use and have been using for a significant period of time. Smart Card LLC should also consider, in its market research, how to compete with such solutions and, moreover, how to tailor the marketing/communication message so that the potential clients understand the benefits of the product.

One thing that the management has also not covered in its market research are the factors that are likely to influence the market in the short and medium-term, a period that will be fundamental for the success or failure of the company. The way that the market is likely to vary during this period of time should be covered in an initial marketing research.

The problem with a LLC, from a financial and investor-related perspective, is that there is a reticence to invest in a company that does not have a clear corporate structure or immediate perspectives to develop something like that. At the same time, the investors want to see this company evolving towards a potential IPO, something that a LLC will not be able to do.

However, this does not mean that an LLC will be unable to attract funding. There are several ways to do so, including angel investors and bank credit, although the letter will need to also take into consideration the financial leverage that the company can afford over a certain period of time. Another solution is to eventually transform the LLC into a corporate-like structure, after the initial months of operation.

There are several threats on the market for Smart Card LLC, some of these having already been discussed. One source is the existing solutions on the market, including internal solutions that some of the companies already have. With this type of threat in mind, the company will face alternative solutions that the companies already have. The disadvantage for Smart Card is that the implementation of a new process is a costly and difficult action and some of these companies may decide that it is in their better interest to retain the solutions they already have rather than implement a new one.

Another threat is the innovation capacity and budget of other competing firms on the market. As seen, Smart Card provides an interesting solution, but it already has problems in terms of whether the solution will work or not etc. Other companies on the market could already have the necessary budget to fund a research that would produce a more secure, more efficient solutions. These companies would also, likely, afford to spend more on advertising and marketing to help the product, as well as on the necessary informational instruments that will make potential clients better understand the added value of this tool.

Another threat that should also be under the company's scrutiny is the situation of the economy. If the difficult economic situation continues, many companies are likely to internalize many of their costs and to refuse outside, more costly, in their opinion, solutions for their companies. This would obviously translate in a preference for some of the cheaper in-house solutions rather than an application such as the one that Smart Card proposed.

All these considered, an investment in the company is definitely to be considered. The main reason for this is that Smart Card LLC seems to bring an innovating service on the market, something that is likely to be embraced by potential clients, if the factors involved do not become overly negative and the impact on the company is neutral.