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Vecima Networks Inc

Issue 1: Introduction

Vecima NetworksInc. ( Vecima ) is a Canadian company headquartered in Victoria, British Columbia with ISO 9001 certified fabricating operations in Saskatoon, Saskatchewan and an Asia-Pacific Regional Gross saless Headquarters in Parramatta, Australia.

Vecima Networks designs, industries and sells merchandises in telecommunication industry that enable broadband entree to overseas telegram, radio and telephone webs. Multi System Operations, Cable Television Suppliers, Internet Service Providers ( Service suppliers ) use Vecima ‘s solutions to present services to a meeting world-wide broadband market, including what are normally known as “ ternary drama ” ( voice, picture and information ) and “ quadruplicate drama ” ( voice, picture, informations and radio ) services.

Vecima ‘s merchandises are directed at two chief markets: Converged Wired Solutions ( Broadband Data over Cable “ Wired ” ) and Broadband Wireless. Data over Cable merchandises include a household of upconverters and modulators that process informations from routers and change over it to higher frequences for transmittal over overseas telegram to endorsers. Broadband Wireless merchandises include senders and transceivers that process informations from routers, switches and modems and convey it to endorsers over wireless substructure.

Value Proposition: Vecima Networks Vision is “to be the taking Last Mile Solution® supplier for broadband wired and wireless webs through Customer centric, Innovative products” ( www.Vecima.com ) clearly depicts that Vecima has adopted a blend of merchandise & A ; selling orientation ( Marketing Management 2010 p.1-16 ) towards its selling scheme.

The accent on “Customer Centric” depicts marketing orientation whereby it differentiates itself from its clients by developing merchandises as required by the client. At Vecima accent is laid on developing a merchandise after understanding the demands of the of all time altering telecommunication industry instead than coming up with a merchandise which the RnD section can develop.

The accent on “Innovative Products” shows a merchandise orientation by presenting high quality, cutting border merchandises as per germinating demands of the telecommunication industry which is really much influenced by regional telecommunication regulative organic structure.

Issue 2: 5Cs Analysis

Company: Vecima Network is a $ 165 Million company listed on the Toronto Stock Exchange ( TSX: VCM ) . With one-year year-on-year growing of 22 % and 21 back-to-back old ages of proftability ( Fiscal Year Ending 2009 Net incomes: $ 17.2 million ) with a 12,000 square pes dedicated province of the art R & A ; D lab with 37 % ( 450+ ) employees in R & A ; D section has helped it to place itself as a taking provider of cutting-edge telecommunications equipment. Table 1.1 below depicts a SWOT ( Marketing Management 2010 p. 1- 25 ) analysis for Vecima

Customers: Vecima Products are used by service suppliers to bridge the concluding web, normally referred to as “the last mile” to supply services to End users. Vecima is a B2B merchandise company which has adopted a Concentrated selling mix towards it diverse clients base around the universe whose demands ( proficient specifications ) are governed by local communicating authorization. Buying determination by Vecima ‘s Customers is really much influenced by Product Specification, Quality and client services.

Rivals: Telecommunications industry is extremely competitory and regulated by the authorities. Using Porters ‘Five Forces ‘ ( Marketing Management 2010 p. 1- 26 ) model to analyse the competition we see that Vecima faces menaces from new entrants as the barriers to entry is really low and the hazard from replacement merchandises are high once the patent on the cardinal merchandise line expires. Vecima besides faces menaces from its purchasers ( Cisco – 60 % of gross ) who might backward integrate to bring forth the merchandises in house. Therefore to extenuate these hazards Vecima keeps itself abreast of the industry & A ; rivals advancement through market research.

Confederates: Vecima ‘s confederates ( both upstream & A ; downstream ) play an of import function in Vecima ‘s Marketing scheme to place itself as the taking last mile solution supplier by tie ining itself with companies which portions its vision of advanced merchandises ( providers e.g. Intel ) and those who provide exceeding Pre & A ; Post gross revenues service support ( resellers/OEM spouses – Cisco, Motorola )

Context: The impact of current enviorment Vecima Networks is runing in can be summarized by a PESTLE ( Marketing Management 2010 p. 1-29 ) analysis summarized in tabular array below

Issue 3: Market Research

Vecima ‘s primary beginning of roll uping information is through client feedback as its clients require extremely customized telecommunications equipment whose specification are influenced by two factors chiefly

– Telecom regulator ‘s specification & A ;

– End user ‘s demands.

The client feedback information is collected by different sections for the same client through the assorted phases of client ‘s purchasing procedure as the Sale rhythm can change from 6-8 months based on specification of the undertaking. This aggregation of informations at multiple degrees helps in measure uping the consistence of information and provides changeless feedback if traveling in the right way. Information collected by pre-sales section is fed to the R & A ; D squad which customizes the solution, the information collected by Post-Sales squad is fed to the Support section to ease the execution of the undertaking.

This aggregation of client information besides helps to accommodate Vecima selling scheme traveling frontward along with its clients.

The 2nd beginning of market information is through market research ( Marketing Management 2010 p. 4-16 ) . Vecima takes portion in assorted Trade shows & A ; conferences to advance & amp ; maintain abreast to the latest technological promotion. Trade shows besides helps to garner information about rivals scheme and how we should accommodate our scheme to extenuate any menaces from them. Geographically its hard to go to all the trade shows due to high costs and conflicting timings, therefore some trade shows are attended through collaboators ( Suppliers – WaveSat ) or even OEM spouses ( eg Motorola ) .

Vecima besides conducts market research about any regulative proficient specification alterations through RFI or white documents published by the regulator. Telecom ordinances varies from state to state. Information collected from regulative organic structure drives the merchandise specifications to be developed. For eg Change from Analog to Digital Television signals in Australia by ACMA means parallel merchandises by Vecima buzzword be used after 2013. Thus alterations in the Australian market ( context ) has influenced the selling scheme of Vecima for Australia. Therefore development of new digital merchandises for Australian Service suppliers ( eg Foxtel )

Vecima besides publishes white documents and collects feedback on them from Regulatory governments and Industries key participants which helps the selling section to sketch merchandise development scheme in the long term ( 3-4 old ages ) .

Issue 4: S.t.p.

Vecima ‘s has adopted a concentrated selling ( Marketing Management 2010 p. 5-10 ) mix towards it clients base which is ‘heterogeneous between ‘ . Vecima fundamentally segments its clients based on the proficient specifications which are governed by the local regulator therefore Vecima uses Geographic cleavage ( Marketing Management 2010 p. 5-15 ) in specifying its selling scheme. Though Geographic cleavage is the umbrella under which farther cleavages can be done for illustration some of the criterions used by different sections ( states ) are the same. A good illustration here of the cleavage procedure is that both America & A ; Canada uses the same Television criterions i.e. NTSC but different spirit of the same. USA uses NTSC M but Canada uses NTSC I.

Using Ansoff ‘s growing matrix ( Marketing Management 2010 p. 6-12 ) Vecima ‘s growing scheme can be identified as Product development. Vecima has been concentrating chiefly on its bing client base through enhanced characteristic development or new merchandise development for the bing market sections as per the alterations in the regulative specifications. The grounds for this aiming attack are: – a ) the clients finds its easier to migrate from one merchandise to another merchandise from the same maker B ) nucleus expertness in development means the bend around clip for any merchandise sweetening is really less ( by and large 4-8 hebdomads ) and therefore more profitable due to higher borders as compared to have development by our rivals.

Vecima has been successfully able to place its ego as a supplier of cutting border telecommunication equipment to supply the last mile solutions through a figure of positioning methods like by developing enhanced merchandise characteristics as required by the altering demand of the industry. Another attack has been through its association with the industry taking service suppliers like Cisco, Motorola, Comcast, Warner Cable etc.

Vecima ‘s investing into R & A ; D has besides helped it to place itself in the market by low bend around times on development and protection on new characteristics as required by the industry through patents.

The tabular array below high spots the selling mix for Vecima Networks

Marketing Mix

Merchandise

High End with Enhanced characteristic set

Monetary value

Cost Based Approach

Promotion

Direct & A ; Gross saless

Topographic point

Through local channel spouses

Issue 5: Findingss & A ; Recommendations

Vecima selling scheme though a mix of both merchandise & A ; selling orientation but is more tipped towards merchandise. Vecima scheme is still really much influenced and driven by what happens in R & A ; D section than concentrating on industry demands. The growing scheme is really much focused on what a peculiar client might desire instead Vecima webs should follow more of a selling attack where it tries to happen out what does the industry ( Segment ) as a whole demand. A demand for a peculiar characteristic by the market section ( End Users – Derived Demand ) can be identified otherwise by different service suppliers in the same market sections. Vecima webs should put more into roll uping information through market research and market intelligence.

Vecima ‘s OEM Customers ( the clients who have private labeled the merchandises ) are rivals in certain market sections ( Thomson private labels Vecima merchandises and sells them in Taiwan as a competition merchandise to Vecima ) and poses a large menace in signifier of loss of concern either straight ( loss of a cardinal client history ) or indirectly ( Loss of possible market section to competition in that section ) . Thus Vecima should follow differentiated selling scheme alternatively of a concentrated and should follow a selling mix based on a more finer cleavage attack. Vecima should profile them consequently instead than merely based on geographic cleavage.

Though Vecima segments its markets based on the geographic cleavage but some of the cardinal characteristics presented by those sections reflect the same properties. Therefore Vecima can and should section its clients base besides based on ‘Standards ‘ .

As highlighted in table above the similar sections are grouped in same colour based on the criterion.

Vecima ‘s primary focal point of merchandise development has meant that other cardinal sections specially Gross saless have been short staffed. So merely a smattering of Gross saless people are given the gigantic undertaking of covering the client bases which are spread across 18 clip zones around the universe are non ever to roll up the relevant information foremost manus i.e. from the client but have to trust on 3rd party resellers for that information whose involvements many a times biased by the net income borders. Thus the information collected by Gross saless section which is fed to the selling director is non ever correct which is reflected in the selling scheme of the company to concentrate more on merchandise development and neglect the other high growing chance – Market development.

Vecima ‘s 70 % gross comes from North American market, 24 per centum from the Asia Pacific and the 4 % from Africa & A ; 2 % from Europe which reflects a immense potency of growing specially in European market after the fusion of criterions under the European Union. Using Quester merchandise life rhythm – gross revenues & A ; net income theoretical account high spots some of they cardinal merchandises are in the bing market have surpassed their growing phase.

The same merchandises if introduced into new markets will hold more possible of growing with small or no cost towards product/feature development. This is can achieved by opening an office in Europe or by staffing more gross revenues people who merely target new markets and are able to feed right information to the selling section in inventing the market scheme both for a section and a company as a whole.

The entry into the new market might intend initial spending of financess and consequences might take longer to come as compared to a merchandise development. These hazards can be mitigated by making initial market research either through a 3rd party or go toing trade shows in Europe.

Vecima ‘s should besides implement IMC both for its go outing markets every bit good for the new markets to place itself as a taking last mile solution supplier. This can be achieved by showcasing merchandises during industry seminars, printing white documents for new merchandise characteristics, working more closely with industry regulator in developing Technical specification ( eg IEEE ) .

Reference List

Marketing Management ( Intensive ) 2010, AGSM, Executive MBA plan, Graduate Diploma in Management.

About Vecima, Vecima Networks & lt ; hypertext transfer protocol: //www.vecima.com/about.php & gt ; ( Accessed 26th April 2010 )

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