I interviewed two business leaders and one HR leader. The Two
business both communicated that an alternative to my services would be for them
to simply engage more external recruiting firms to help fill their open positions.
Their mindset was more tactical about quickly filling the positions and
potentially saving overhead costs by outsourcing their talent acquisition
function. The HR leader said she would send her team to more industry conferences
and pay for skills training and certifications in order to increase the skills
of her team.
All three interviewees communicated that ultimately, their
CFO and Procurement team are responsible for negotiating and making final
buying decisions. They will typically go through an RFP process to get
competing bids and demos from competitors in the same space. They will then
build out internal requirements of the need they are hoping the vendors can
solve and then rate the bids and demos in key areas in order to come to a final
business decision. Once the decision has been made, they then move forward with
the implementation. Part of their agreements include yearly evaluations of
expectations versus outcomes in order to see if they need additional vendor
support. They do pay for yearly support through an annual licensing agreement.
I would say this segment has a solid process in place to buy
a product/select a vendor. I believe this is the case out of necessity since
each interviewee came from medium-sized companies that are growing, which means
they are constantly evaluating new partnerships to help continue their growth.
Justin, nice job specifically stating the interviewees alternatives. You also explained the segment well and why they might chose the alternatives over your product. I thought it was interesting how the HR leader said she would rather pay for skill training and certification training over searching for candidates that might already have those qualifications. Nice job summarizing your conclusions as well.
ReplyDeleteHey Justin, I think you did a great job identifying your alternatives and explaining the segment you are studying. Its interesting to see that the HR worker will spend money to train her employees and better the company. This makes sense because the best way to invest, is to invest in your yourself or the company in this exmaple.
ReplyDelete