An analysis of the use of new-product pre-announcements and how this vaporware is used to benefit the competitive and selling strategies of the company.
Written in 2008; 5,252 words; 21 sources; APA; $ 130.95
Paper Summary:
This paper defines and discusses the use of vaporware in the information technologies industry, specifically in software, as a competitive and selling strategy. It particularly analyzes how Microsoft uses vaporware to attempt to freeze enterprise software sales cycles with an enterprise-level software platform they never get close to delivering.
Table of Contents:
Executive Summary
Topic Definition
Relationship to Information Systems
Organizational Impacts/Issues
Future of the Topic
Conclusion
From the Paper:
"The future direction of VA as a strategy is going to be more vigilantly watched from the consumer and government side as the combination of consumer-generated media and fines for fraudulently misrepresenting a product have grown exponentially (Schatzel, Calantone, 2006). The net effect of the improvements in catching VA announcements is actually forcing companies to perfect their new product introduction process as well (Burkett, 2005) (Hackett, 2007). What is going to clearly happen in the future is the development of an entirely new series of disciplines in how NPPAs are coordinated throughout the public relations, analyst relations, marketing, and sales, pre-sales and forecasting functions of any organization. The use of NPPAs as a pre-announcing signaling behavior (Eliashberg, Robertson, Thomas, 1988) will continue yet it will be more closely monitored both by consumers and the government, and seen as part of a broader market development strategy. Ultimately the use of NPPAs to freeze consumer spending, even at the enterprise level, will be counterbalanced by the need for tracking the on-time performance of software companies (Gerlach, 2004). The use of a VA to increase the perception of switching costs will also be used in SaaS-based applications will be one of the greatest impediments to the growth of this aspect of enterprise software as well (Greanleaf, Lehmann, 1995)."
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