Name- Yogita

Roll No. - 1811072

Case Analysis of PROFITLESS PC

1. What as per your analysis should Praxim do? Why?

Ans: Praxim is already in Consumer market but not doing quite well as compared to commercial segment. Praxim
now has 2 choices: Either enter consumer market fully or exit the consumer market all together. Below is what I
feel Praxim should do with regards to entering this market with a pilot to launch the PC in consumer market and
establish itself as a differentiated brand if the pilot is a success.
1. Customer Segmentation: First step of Linda’s proposition should be to segment the customers after doing
proper consumer research to understand their pain points, experiences, confusions and after gaining
these insights, they should come up with an easy to use and trouble-free product. This will also give a
crystal-clear vision of a major new category of devices that consumers will buy.
2. Brand Building: Linda should also spend time with Praxim’s commercial buyers and their end users to
understand her product’s weakness and strengths and use that to market her brand successfully. Also,
the PC market is a commodity market and to survive in this market, Praxim have to come up with a
technology innovation but if it doesn’t have the technological capability to build such a product, then it
should go forward with brand building which can be done through marketing along with good business
strategy.
3. Bundling: Since PC industry is different from consumer good industry in sense that consumers consider
their purchase in terms of features, price, value-in-use, benefits etc., it should not be ignored that at the
heart of both these industries are people and their needs. Praxim should provide bundled goods providing
services like easy of use models (color coded cables, manuals) that would achieve some level of product
differentiation.
All these above stated steps can help achieve Praxim build a brand, but in an industry where products are
becoming commodity, does building a brand and being in the consideration set will help Praxim to sustain
in the market? Well, maybe Yes. But if it doesn’t, it will have to leave the market as soon as possible after
the pilot to reduce further losses and focusing all its strengths on Commercial segment.

2. What major insights have you drawn from the case situation, including your review of the expert opinions
Ans: The most important insight from the case in terms of stakeholder’s understanding of the product is that Linda
may be good at marketing but she has not captured the heart of PC industry which is different that consumer
goods industry. Her proposal is not properly defined and does not say a lot about consumer insights. Below are
some of the insights which I gathered from the case:
 Since replication of technology is easy in PC industry, Praxim cannot bank on Technological innovation
alone to stay in this industry. Famous Brands with resources can take away the major share of the
market as they are already known brands and in consideration set of consumers.
 Economies of scale cannot be achieved in a PC industry and you cannot play on volumes since Tech is
easily replicable and is always changing according to make the previous version obsolete.
 Given the dynamic environments and fast paced nature of hi-tech industries with new product
launching every Christmas, market-oriented thinking is very important in this space. It is very different
from Consumer goods market where consumers buy products habitually and not on consideration
basis.