PFMP · Question #629
Assume you are the portfolio manager for a legacy software company. For many years, your company was one of the top five leaders in software development, but as newer and more efficient software was…
The correct answer is A. Focus on channel partnerships. The legacy software company's core competency is in legacy system conversion and integration-a diminishing but still real market need. To gain market share without the time and cost of hiring or retraining an entire workforce for Cloud computing, the most effective portfolio…
Question
Assume you are the portfolio manager for a legacy software company. For many years, your company was one of the top five leaders in software development, but as newer and more efficient software was invented, it began to lose market share. Your company then found its services were needed as legacy systems were converted, especially since Cloud computing now is so popular. But it has lost revenues increasingly over the years. To gain market share and provide greater portfolio value, the executive team decided it should:
Options
- AFocus on channel partnerships
- BHire people with competencies in Cloud computing and enter this market
- CRecognize change takes time but retrain employees to enhance customer satisfaction
- DFocus on supplier value by partnering agreements
How the community answered
(26 responses)- A81% (21)
- B4% (1)
- C4% (1)
- D12% (3)
Explanation
The legacy software company's core competency is in legacy system conversion and integration-a diminishing but still real market need. To gain market share without the time and cost of hiring or retraining an entire workforce for Cloud computing, the most effective portfolio strategy is to focus on channel partnerships. Partnering with Cloud-native vendors or system integrators allows the company to offer broader solutions to clients by combining its legacy expertise with partners' Cloud capabilities, thereby extending market reach quickly and cost-effectively. Option B (hire Cloud computing talent) is expensive and slow, and would compete against established Cloud vendors. Option C (retrain employees) takes significant time and the outcome is uncertain, particularly in a declining revenue environment. Option D (supplier value partnering) focuses on the supply side rather than market growth.
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