Page 41 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes

Case Study Primary Market Research Leads To Market Entry
Success

Challenge
How to create new differentiated service offerings for entry into a fragmented market
with many competitors:
Landscape
A global financial services firm had set its sights on a relatively new, but already fragmented
market for a new service offering. Specifically, intelligence was needed about the market
potential and competitive landscape for derivatives processing services in the securities
industry.
It was important to understand the real and perceived competitive advantages of any
established competitors, barriers to entry for the market, winning market entry strategies,
and validation of the offering and proposed pricing model.

Process
MIDIOR conducted primary and secondary research for all of the significant competitors
to understand their product offerings, partnerships, pricing strategies and growth plans
along. This research centered on more than 20 software vendors, banks, IT, and financial
services firms and leveraged both “discussion based” interviews and in-depth analysis of
publicly available materials. From these results, competitors were categorized and ranked
according to available services, business model, and market preparedness. MIDIOR made
recommendations for a market entry strategy, opportunities for differentiation, packaging
and bundling strategies and various pricing options. Together with the new product
development team, MIDIOR created and implemented a market entry and product launch
plan that was completed in three months.

Results
With MIDIOR’s help, the company was able to enter the market sooner than anticipated,
identify specific opportunities for creating competitive barriers, and establish an early
mover advantage. Because the product team had gained a better understanding of the
market opportunity, they were able to establish a clear product roadmap and compelling,
quantified business case which resulted in appropriate funding and an optimized
development spend. By launching quickly, the firm was also able to build solid client
partnerships that were critical to the development of a robust service offering that is now
highly valued by their clients.
Question

Pen down your views on the case

Source: http://www.midior.com/case-studies/primary-market-research.html
2.4 Summary

The global securities market has been constantly evolving over the years to serve the
needs of traders.

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