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 ...