Its major product is a business software that is fitted to every need of Sage clients.
Sage helps its clients make business operations run smoothly and harmoniously by giving them software technology with lasting benefits by automating monetary transactions. Sage also offers after sales maintenance services to clients that have purchased their products.
The Sage organization chart is concentrated on encouraging entrepreneurship, innovation, spirit of working as a team and using local software United Kingdom experts to make state of the art business programs.
The strategy (Campbell, 1998) that the company must focus on is based its marketing (Churchill, 1995) actions on the available resources of the company. This simply means that the company will sell only what it can produce. The environmental factors such as competitors, and the clients are ranked in priority second and third after the available resources of the business.
According to Porter " Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. There are two basic types of competitive advantage: cost leadership and differentiation."
-- Michael Porter, Competitive Advantage, 1985, p.3
The above quote simply means that the customer's priority is not the price of the goods they are buying but rather the QUALITY of the goods purchased by them. One way to lure new clients from competitors is to offer low prices for HIGH quality goods.
ANALYSIS OF GRAPH, Based on the above graph, it shows that even though Sage has been doing a fine job of generating income for the past five years, but still the income the have earned is still far below the FTSE 100 index. Therefore, the graph above is a wake up call to the management of Sage that they must double their efforts to make reach the benchmark above. The above graph is actual proof that its competitors(Weston, 1993) are doing BETTER than what the Sage company is doing. Therefore this shows that Sage company does not have the biggest share because of its below par sales performance. The graph states clearly that the most appropriate index against which the TSR of the Company should be measure is the FTSE 100 index because of the size comparison of the company.
Present Marketing Strategy. Small and medium scale enterprises have shown strong needs to purchase business (specifically accounting ) software in order hasten and make more accurate current manual accounting business transactions. Such companies have back offices where accounting and bookkeeping (Larson, 1995) services are being processed. The medium and larger companies do need software that can make their tasks easier. When the accounting system is accurate and is