Quado Systems Case Study

1263 Words Dec 21st, 2014 6 Pages
Quado Systems Group Case Study 18:
Should Quado Pursue New Opportunity?

Quado systems is a systems integrator that uses two systems and is currently looking to shift their focus to the internet. The Taylor Corporation is a wholesaler of woolen products also considering to create a more interactive internet site. Taylor Corp is wanting hire either the Quado or Synectic Company. Quado is considering the job because it will help them gain references to do more internet business, but it ends up being up to them to accept the challenge of putting all their eggs in one basket or not.
The decision of Quado pursuing an industry outside of their current area of expertise could affect each stakeholder within the organization because
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The cons are that Taylor may expect top tier technicians throughout the length of the project without considering that Quado will need to hire more consultants to be able to keep up with the workload.
Selling utilizing a lower price leverage: Quado may utilize pricing as leverage against Synectics as them being a large company charge brand name premiums when Quado does not. This enables Quado to price their service below their competitor. The pros of this approach are that pricing is most of the time a very important factor in business and a lower price may seem as a great differentiator. The cons are that being Quado a small company, they stated they do not have the resources to fully develop a quota for the entire project so the pricing is an estimated projection of costs which are highly subject to change and at the end may result in Quato either having to charge a higher price, or absorb the difference and generate a loss in revenue.
For Taylor, I see that the buying team would have issues with Quado not having any recommendations in the field. It could possibly make them believe that this job was too risky if Quado failed and did not complete the job efficiently. They should look to present how qualified and capable they are to complete such a big project. Quado should give them times, dates, and estimated prices, as well as examples of what their site

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