Game Time Decision for AppDirect, Article Review Example

The company

AppDirect is a web-based applications development company, founded in 2009 by two experienced professionals, followed by a merger of smaller design companies. The market of web-based software (software as a service) started a fast development in 1990, and the industry is still booming, with constant customer demands. The customers of the app market include individuals and customers, and the company itself mainly focuses on small business partners. With the development of mobile technology, the demand for well-optimized applications, videos and platforms is growing every day.

Decision

AppDirect had to face a difficult decision whether the company should sell its apps directly to customers, or to use channel distributors, to ensure the constant flow of new customers without any major investment into marketing campaigns. As the main competitors of the company were branded platforms and custom platforms, teaming up with different sites delivering apps seemed to be the right solution. The popularity and monopoly of large platforms, such as the Google Apps Marketplace, launched in 2010 created both difficulties and opportunities for the company. Partnering with more online content and software provider platforms and focusing on developing more competitive products seemed to be the right solution for AppDirect. Making the company’s own portal more user-friendly was another aim of the management, and Daniel Saks.

Business model

The company’s business model is built to support and satisfy potential channel partners, and the only way AppDirect is able to compete with the large corporate platforms and well-known names, such as Apple App Store and Google Apps Marketplace is to be able to set up effective partnership programs and increase its web presence through channel partners. The company has successfully created branded and custom apps, and is targeting small to medium size businesses.