The challenges facing USCloud

The challenges facing USCloud

The challenges facing USCloud bid of sale of services in Brazil includes The payment system preferred in the country which is referred to ‘Boleto’ or a ticket where a document having similarities to an invoice is used. Whereby the client uses it at the bank or at authorized processors for payment of services, this payment system is commonly used in Brazil as it provides security against fraud. US Cloud plans to address this challenge by establishing an office in Sao Paulo and opening the company’s bank account in the country as it will enable them to offer Bolete payment system option to clients.

Another challenge facing USCloud is the lack of existing personal relationships with their targeted market as compared to their competitors the IT local service providers in Brazil who have created relationships with the market enabling them to have a competitive advantage. US Cloud, therefore, plans to develop personal relationships with their potential clients in Brazil through holding face to face meetings and development of a physical office in Sau Paulo where they will transact directly with Brazil software providers. This is important as it will enable them to create a reputation and good image for their company. Implementation of USCloud strategy of sale and establishing of local contacts will enable the company to bridge the gap between them and Brazil local IT providers (Mühlbacher et al. .2006).

Existence of laws that are complicated required for the navigation of the market in Brazil poses a barrier to the sale of services by USCloud in Brazil. In addressing this, the company aims at holding a meeting with Brazils local trade commission that will enlighten them on the laws and gain the support needed that is crucial for market navigation.

The services price set by USCloud is another barrier to the sale of their services so the company will have to competitively infiltrate the market due to the local IT service providers a competitive advantage over them. In addressing this, the company plans to gather and analyze a lot of information before setting their prices to ensure success in the new market entry.

Q2. US Cloud chose direct sales as an entry sales channel. Describe a possible second sales channel option for the ICT company to implement as it gains credibility in the new market.

Direct sales channel refers to the sale of USCloud services directly to its end users who can be consumers or business without the use of third parties who act as middlemen. This entry sales channel is advantageous to USCloud as it will enable them to gather crucial client information such as their buying habits and form a way of establishing personal relationships with them. This channel will also allow to company to respond to client’s feedback enabling them to improve their performance.

Channel sales strategy is a possible second option for USCloud to implement. Using this strategy, USCloud will be able to make use of middlemen such as distributors and resellers to get their services to the potential buyers in the new market. This option can be very beneficial to the company as the use of local Brazilian middlemen whose presence is established in the market, and potential consumers know and trust the person will be a cost-effective way for the company to obtain new clients for their services. The distribution of the company’s services will also be done at a fairly low cost (Dent & White,2018).

Through the use of channel sales strategy, USCloud services will be advertised by the local middlemen to potential consumers. Aiding them in the effective establishment of their company’s presence in the new market using relatively low investments as compared to what the company would use using the direct sales channel, therefore, risks occurrence are low. This option will also be beneficial in addressing some barriers, such as language barriers in sales of US Cloud services.

Channel sales strategy ensures efficiency in the sales process as the manager in charge of sales of USCloud is at liberty of selecting different partners who will get the company’s services to the end-user. In this sales strategy, USCloud will choose to either sell their services with the selected partner who sells complementary services, selling through them where the selected partner sells similar services to those of the company or incorporation of USCloud brand into the selected partner acting as the middle man.

Q3. List the information USCloud will need to gather to determine the best pricing strategy and price to enter the Brazilian market.

Determination and selection of a price strategy is crucial to USCloud as it will determine their market entry and performance in the new market. The information must be gathered from various legit sources and analyzed critically to aid in price strategy selection and setting of prices.

• Information on their competitors – this is important as local IT service providers play a huge role in the selection of the pricing strategy and setting of USCloud services pricing. The strength of these competitors in the IT market in Brazil will enable the company to determine whether they will independently set the prices of their products or they have to follow the local IT service providers trend when determining their prices. This will ensure that strategic prices are set, and the entry in the Brazilian market is successful (Smith,2012).
• Information on the economic state of Brazil- services to be provided by USCloud are influenced by changes in end consumers wages and unemployment such that if the economy is down the company will have to lower the prices of the services. This information is, therefore, crucial in determining the pricing strategy that USCloud will adopt and the prices to be set.
• Information on the target market and its bargaining power- in the determination of the pricing strategy to be used and the prices to be set by USCloud, information of who they re targeting must be gathered and analyzed. Buyers of high quantities of the company’s services have an influence on prices whereby they can request for special prices of the services to be set.
• Information on the state of the IT services market whereby the news that Brazil is a large technology market. Can affect the pricing in that the high demand for these services can lead to USCloud setting high prices of their services. The high market consideration of American technology and brands will also influence the pricing strategy selected and the prices set.

Q4. When preparing sales presentations for potential clients, what information will be important for the USCloud representatives to research?

Sales presentations to potential clients are outstanding as they help discover whether the potential client will purchase the company’s services, or they will acquire them from the local IT services providers. These presentations must be relevant, direct to the point and develop a connection between USCloud services and products offered and the potential client. Information required for preparation of the sales presentations to be researched information regarding to the potential client’s business.

US Cloud representations should research to know what products and services the prospect client deals in, the industry they are located in and its trend, the problems faced and the criteria of decision making that they follow. They should gather information from sources such as the internet, newsletters, the company’s annual report and publications of trade on the competitors of the potential client business. They should aim to know much about the potential client to ensure the success of the presentation.

Information on familiar colleagues or sports references between USCloud and the potential clients should also be researched on. This will enable the company’s representatives to build rapport with the potential client effectively. Enough information on this will ensure that the rapport is authentic and sincere. This connection is essential in ensuring the success of the report (Malcolm,2012).

US Cloud representatives should research on the needs of the potential clients that they are seeking to fulfil through the use of the services provided by the US Cloud. The representatives should have adequate information on these needs that will enable them to evaluate the most critical requirements that will make the prospective client get into business with the company. This will give them adequate information to allow them to ask keenly structured questions to the potential client during the presentation to bring out their needs that USCloud services can fill.