Salesforce.com’s business model and business strategy
The type and nature of business model depends and relies on the business strategy of the company. The business strategy guides and governs the selection of business model should be adopted by the company in order to sell the products and services. The company had adopted on demand model of software distribution under which software is leased on the internet of the companies, thereby preventing them from the task of purchasing and installing software in their systems. This innovative and unique approach of on demand model of software distribution enables the company to acquire a distinct approach in the market place.
The need for purchasing and maintaining hardware and software is removed or eliminated under the usage of this model. The expenses on the installation of the operating systems, database servers and application servers, staff and consultants, expensive licensing and maintenance fee will get zero. The company is giving the service on monthly charges for using the software, wireless handhelds and web to monitor the activities of the customers (Laudon and Laudon 2012).
Salesforce updates its software regularly and also customizes the features of the software to support the company’s unique business process. The business strategy of the sales force is to make optimum utilisation of the capabilities of the enterprise and competitively attracting the clients. The idea is to make the working of the software companies’ hassle free and secured. The previous happenings although negative but Salesforce managed to secure the trust of the clients. The additional benefits are reaped through the alliances with Apple to distribute the applications to be used on the iphone and Google to help the customers to use the web to do their tasks. At present, salesforce is providing software as a service. To tap further opportunities, there is a planning to provide the platform as a service. The competition in the market is not only from top companies but also smaller companies. They have started giving the tougher competition to the Salesforce. So in order to remain in the competition an organization has to regularly innovate and extraordinary to win the hearts of the customers to make them loyal customers (Sosinsky 2010).
Use of Cloud Computing
Cloud computing is the technique in which an organization delivers the services of software or hardware directly to the customers without purchasing it. In cloud computing the client can use the software to serve their purpose of customer relationship management (CRM) and also provided with the platform to create their applications to use for their own benefit. The cloud computing allows the company to maintain the pool of information of the customers connected with the company and utilizing their services.
Salesforce is vigorously reaching the prospective buyers through cloud computing. The company make the use of cloud computing services through dividing the available information into three small clouds. The clouds are divided in three further small clouds among which one is sales cloud in which there is service to improve the sales by recording the list of the customers, their details, and their further classification into regular, privilege customers. Another one is service cloud which helps to improve the customer service and build reputation with client; they both are very helpful for the customers of Salesforce (Antonopoulos and Gillam 2010).
The third one is Custom cloud which is also known as Force.com application development program. This cloud is helpful in integrating the creativity of the companies interested in availing Salesforce services under which the customers can develop their own application within the given salesforce network. The option helps the companies to prepare their own software to maintain the information of the buyers and they will able to make them their regular customer through customer satisfaction. Force.com is being opened for independent software developers and their programs get listed on AppsExchange. The small scale business can download the software application from AppsExchange. The reports have suggested that force.com platform helps the user to build and run applications many times faster than on the non-cloud options. The costing is according to the traffic on the site. There are many cases where the charges have reduced by 75-80%.The clients are not required to maintain the records with them. The responsibility lies with the Force.com to maintain the data centre .This helps the organizations to expand their businesses and with the previous number of employees. Salesforce has tie up with Amazon to give the benefit of it to the Force.com’s customers.
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