Question: Salesforce.com, inc.
Instructions: To complete this assignment, you will need to:
• Re-read the analyst report "May the Force be With You: Wide-Moat Salesforce.com is the Newest Software Empire"
• Read the 2016 Salesforce.com Annual Report (Pages 3-11)
• Review additional Salesforce.com valuation and financial data available on the Morningstar.com website by following this link.
Also, you will find it helpful to review the Moat Analysis and Value Creation Checklist, and the Value Investing and Growth Investing Checklist as the categories for the questions below are summarized in those checklists.
This assignment is organized around the FIVE areas of analysis in the "May the Force be With You: Wide-Moat Salesforce.com is the Newest Software Empire" report. Refer to each section of the report as identified below and answer the questions that follow.
1. Review the section on "CRM Opportunity"
a. In what stage of the Competitive Life Cycle is the company?
b. What are the most significant barriers to entry that competitors face? Explain.
2. Review the section on "Sales Cloud Analysis"
a. What are the 5 key moat considerations that Salesforce.com must address in this market?
b. Which of these are most important? Explain.
3. Review the section on "Service Cloud Analysis"
a. Briefly summarize how Porter's Five Forces apply to this market.
b. What are the most important competitive advantages that Salesforce.com has in this market? Explain.
4. Review the section on "Marketing Cloud Analysis"
a. Briefly summarize the Lay of the Land in this market.
b. What are the most important customer advantages (product attributes, horizontal differentiation, etc.) to doing business with Salesforce.com? Explain.
5. Review the section on "Commerce Cloud Analysis"
a. What technology or process disruptions/disintegrations exist that could create challenges in this market?
b. Which of these present the most realistic threats/opportunities? Explain.