Oversight Systems Answers
Oversight Systems Answers
B2B MARKETING
(MKT641)
MBA 2019-21
SUBMITTED BY:
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PARTNERSHIP WITH ESG:
In general, ESG offers ERP solutions for all the business functions of the company. So,
the company must connect with all Functional Heads to persuade in the decision process.
While IOD has different buying decision maker’s group, the relationship established
through ESG might be beneficial.
Oversights IOD stood as a major differentiator for ESG in terms of upselling and to fill
gaps over its competitors which means as a product the partnership adding value to both
the companies.
ESG scrutiny and certification compliance helped Oversights to build competencies in
terms of scaling and business cases.
Despite the fact of controlled relationship, Oversights managed to have a controlled over
the pricing. However, because of excess commissions (40%) which hurt the oversight
margins the partnership could not sustain for longer time. In a way this proved that ESG
has more power in this channel.
The ESG reps owned the relationship with the clients and later it was discovered that
their reps were using the Oversight business case to push the solution that used ESG
products so that they can made commission on the full price instead of ESG’s 40% share.
GC AS A CHANNEL PARTNER:
Advantages:
Large customer base of GC.
IOD will be part of GC’s star product i.e., GCP. So, GC will be more focused in bringing
the businesses for GCP which implicitly brings for IOD.
Because of GC’s retention dependencies, Oversights also gets continuous business in
terms of post-sale services.
Disadvantages
IOD is a value-added differentiator which means if Customers are price sensitive then
margins may be subjective.
Unlike in Concur, GC ‘s executive will pitch the IOD behalf of Oversights. So, which
means there is a chance of information loss in the process. And no scope for establishing
the relationship with clients.
GC’s ecosystem was most likely as ESG where the Oversight employees must run behind
GC’s managers for updates on the Sales calls.
No control on End user pricing.
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CONCLUSION
According to us Oversight should not get into partnership with GC. Because a successful
partnership should give below mentioned benefits for Oversights:
Like in case of Concur, the reputation of IOD was renowned and reached executive level
importance for the product. So, in a bundle this may not suit with the major business
interest. Especially in case of GC where control must be transferred, Oversight may not
win any credit for the product.
Dedicated Hierarchy to support the Channel relations by helping each other in closing the
Sales cycles and generating the leads.
In a way concur managers have worked as the Salesforce of Oversights, so comprising
margin cuts for these kinds of leads is more worthy than the hefty 40% cuts likewise in
ESG.
To sustain in the channel relation, it is required to have a control over End price; But
which Oversights may lose.
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