Ronnie Scales had his heart set on an Internet consulting business specializing in SE0 (search engine opti-mization), which involves getting websites the 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 MIS with a marketing minor from a uni-versity 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 per¬ceptual map with cost and value benefits like 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 SE0 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 to the customer, but he was not sure how to leverage it.
What sort of tactics could he use to better position his SE0 business for success in such a crowded industry?
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 and explain how they could be applied to Ronnie's business. Explain why you think those tactics would work.
3. Industry experts say that SE0 is an industry on the rise. What are the implications for Ronnie as he plans to run his business?