Virgin Mobile
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Recommendation;
Create to new segments in CSO. One is that sales representatives take care of downstream and midstream businesses. The other is that sales representatives take care of upstream businesses.
Reasons for my recommendation;
HP CSO should make its new business units in order to make clear each sales opportunityЃfs responsibility and purpose. To increase benefits and costs down, CSO should try to provide new strategies even though HPЃfs business was growing annually by 40%. HPЃfs current sales strategies and sales processes did not optimize the total sales opportunity from customers by survey. In addition, since sales stuffs had a lot of work and responsibilities, the working efficiency and effectiveness are not high level. HP was doing quite well at capturing the downstream business and increasing its midstream business, but migration strategy and successes needed huge costs. Portfolio management matched with this situation. It is clear to execute opportunities. Since HP realized that sales and consulting are totally different, CSO needed to make specialists for each opportunity. Sales stuffs could concentrate what they should and realize responsibilities. This strategy would cause dramatically decreasing the risks that the implementation of the alternative that costs outweighs benefits.
Alternative course of actions with pros and cons;
Keep continuing current sales opportunities
Pros: It is clear for customers to know HPЃfs efforts to shift from a product focus to a customer orientation. In addition, HPЃfs brand equity for hardware quality was strong with customers.
Cons: The working time of sales reps was being drained significantly servicing existing relationship. In addition, consulting require special skills and knowledge.