Zuora in 2017: Leading the Subscription Economy Revolution Description
Long before Spotify had become a household name, and when Netflix was still mailing off DVDs to customers' homes, Tien Tzuo had foreseen a major transformation in the business world: from one-off sales to subscription business models. He realized that no one was making billing software to serve the complex needs of such companies, so he founded Zuora in 2007 to automate billing, commerce, and finance operations for companies built on a recurring revenue model. Initially, Zuora catered mostly to start-ups, but the world rapidly evolved. By 2017 its customers included companies such as Box, the Financial Times, Ford, GM, GE, Caterpillar, and Zendesk. In 2016, Zuora had crossed a major threshold: $100 million in annual recurring revenue. In 2017, Tzuo could see that Zuora was positioned to hit $300 million, and before then, he believed he would take Zuora public. The company was growing rapidly, and Tzuo had begun that he needed to approach this next phase of scaling more deliberately than he had with Zuora's early growth. "A company that is going from $100 million to $300 million has to be different than a company going from $30 million to $100 million," said Tzuo. "That $30 million to $100 million was a sprint; making the transition from $30 million, we were not so thoughtful. I wanted to be more thoughtful this time." In 2014, Tzuo had identified four major areas in which the company needed to transform: sales, finance, products, and people. Tzuo knew the transformation plan meant he would have to make a wave of leadership changes, managing hirings and terminations. And he would have to change his own leadership style to match the company's increasing size. Meanwhile, he had to think strategically about how Zuora could fend off challenges both from software behemoths like Salesforce.com and Oracle, and nimble upstarts. To successfully IPO, and satisfy investors over the long term, Tzuo knew that Zuora had to deliver consistency and predictability. "What's at the top of my mind is how do we build predictability into the machine?" he said. "Can we build a company that just consistently is very boring, that delivers 30 percent annual growth over the next decade?"
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Case Analysis of Zuora in 2017: Leading the Subscription Economy Revolution
Zuora in 2017: Leading the Subscription Economy Revolution is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Zuora in 2017: Leading the Subscription Economy Revolution is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Zuora in 2017: Leading the Subscription Economy Revolution case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Zuora in 2017: Leading the Subscription Economy Revolution will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Zuora in 2017: Leading the Subscription Economy Revolution
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Zuora in 2017: Leading the Subscription Economy Revolution, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Zuora in 2017: Leading the Subscription Economy Revolution case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Leadership & Managing People Solutions
In the Texas Business School, Zuora in 2017: Leading the Subscription Economy Revolution case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Zuora in 2017: Leading the Subscription Economy Revolution
Step 1 – Problem Identification of Zuora in 2017: Leading the Subscription Economy Revolution - Harvard Business School Case Study
The first step to solve HBR Zuora in 2017: Leading the Subscription Economy Revolution case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Zuora Tzuo is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Zuora Tzuo, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Zuora in 2017: Leading the Subscription Economy Revolution.
The external environment analysis of Zuora in 2017: Leading the Subscription Economy Revolution will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Zuora in 2017: Leading the Subscription Economy Revolution case study. PESTEL analysis of " Zuora in 2017: Leading the Subscription Economy Revolution" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Zuora in 2017: Leading the Subscription Economy Revolution macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Zuora in 2017: Leading the Subscription Economy Revolution
To do comprehensive PESTEL analysis of case study – Zuora in 2017: Leading the Subscription Economy Revolution , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Zuora in 2017: Leading the Subscription Economy Revolution
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Zuora in 2017: Leading the Subscription Economy Revolution
Government policies have significant impact on the business environment of any country. The firm in “ Zuora in 2017: Leading the Subscription Economy Revolution ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Zuora Tzuo is operating, firms are required to store customer data within the premises of the country. Zuora Tzuo needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Zuora in 2017: Leading the Subscription Economy Revolution has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Zuora Tzuo in case study Zuora in 2017: Leading the Subscription Economy Revolution" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Zuora Tzuo in case study “ Zuora in 2017: Leading the Subscription Economy Revolution ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Zuora Tzuo in case study “ Zuora in 2017: Leading the Subscription Economy Revolution ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Zuora in 2017: Leading the Subscription Economy Revolution
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Zuora in 2017: Leading the Subscription Economy Revolution ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Zuora Tzuo can compete against other competitors.
Government Scheme & Subsidies Impact on Zuora in 2017: Leading the Subscription Economy Revolution
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Zuora in 2017: Leading the Subscription Economy Revolution case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Zuora in 2017: Leading the Subscription Economy Revolution
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Zuora Tzuo needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Zuora in 2017: Leading the Subscription Economy Revolution
Social Factors that Impact Zuora in 2017: Leading the Subscription Economy Revolution
Technological Factors that Impact Zuora in 2017: Leading the Subscription Economy Revolution
Environmental Factors that Impact Zuora in 2017: Leading the Subscription Economy Revolution
Legal Factors that Impact Zuora in 2017: Leading the Subscription Economy Revolution
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Zuora in 2017: Leading the Subscription Economy Revolution case study. PESTEL analysis of " Zuora in 2017: Leading the Subscription Economy Revolution" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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