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Inpart

Submitted by mathuriaketki on June 15, 2008

Category: Business
Words: 1056 | Pages: 5
Views: 68
Popularity Rank: 105,689
Average Member Grade: N/A (Add a Comment / Grade this Paper)

InPart

Background:

Under the profound vision of a strong executive leadership team, one year old Silicon Valley start-up, InPart, is ready to launch its innovative product, DesignSuite, an online catalog of digitized 3D standard mechanical part designs. InPart would like to establish DesignSuite as a one stop shopping for designers and engineers needing 3D part content worldwide. With an objective to scale as a market leader in technology solution as well as in sales $ volume as fast as possible, InPart is at a decision fork to choose the right sales, marketing and pricing options for their Go-to-Market strategy. Refer to Exhibit 1 for SWOT Analysis and Sales and Pricing Options for InPart.

Recommendation:

Sales: InPart should license DesignSuite content in an OEM arrangement to Parametric Technology (PTC), the best, largest and fastest growing CAD system manufacturer, for resale.
Pricing: InPart should negotiate favorable royalty rates in a bundled sales arrangement on a per sale basis. Since PTC’s customer base includes small individual designers, medium businesses and large long-term enterprise customers, InPart should propose PTC to implement its overall pricing strategy which comprises of three pricing models for end consumers: Perpetual License, Annual License and By-the-Part pricing. The overall pricing strategy will attract PTC’s different customers effectively and InPart will get royalty/commission on a transaction basis.
Future: Once established, the above Sales and Pricing model should be enhanced to other CAD System Vendors such as IBM/Dassault Systems, Structural Dynamics Research Corporation (SDRC), Computervision, Autodesk, and EDS Unigraphics.

Support:

Sales: Exhibit 2 compares pros and cons of four different Sales options for InPart. Direct Sales and Inside Salesforce options are not recommended because they demand heavy investment in...

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