ANALYZING TO FIND A PATH FORWARD

A

Ronnie Scales had his heart set on an Internet consulting business specializing in search engine optimization (SEO), which involves designing websites with characteristics that help them appear high up in search result displays. Being on the first screen that people see can be worth a lot to a company selling on the web.

Ronnie had a strong background, with a bachelor's degree in management information systems (MIS) with a marketing minor from a university in his hometown of Dallas. He had worked in the university's lab, and had done web design and SEO for campus organizations, local nonprofits, and a few students with online businesses. When he tried a distinctive competence map with the features and benefits he and his competitors offered, such as expertise, his firm did not do well. After all, he was new to the industry so his experience was not as great as a lot of his competitors. Also, since SEO can be done remotely, he was competing with firms in India and eastern Europe who charged less than he did. He felt there had to be some advantages of being physically near the customers, but he was not sure how to leverage it.

What sort of tactics could he use to better position his SEO business for success in such a crowded industry?

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CASE DISCUSSION QUESTIONS

1. Considering the Porter model, from what sectors would Ronnie's competitors be coming? What kinds of threats do they pose to his business?
2. Pick two tactics from the list in Exhibit 7.3 and explain how they could be applied to Ronnie's business. Explain why you think those tactics would work
3. Industry experts say that SEO is an industry on the rise. What are the implications for Ronnie as he plans to run his business?