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Cambridge Software Corporation

I. Problem Statement
In November 2008 Cambridge Software Corporation (CSC) had to decide under high time pressure whether to develop and offer multiple versions of Modeler, a new cross-operating system computer-based software product as well as which customer segments to target at which price points. II. Situation Analysis
Context and Company: CSC was founded in 1993 and has accumulated a lot of experience in developing computer software up until 2008. Vice president Paula Stewards helped to transform the company from offering products to the academic market to developing and selling computer software to the commercial market, with the latter accounting for 95% of revenues and almost all of the company´s profits in 2008. Moreover, in 2008 Kennedy hired Atkinson, who had relevant experience managing product lines of a range of computer and consumer-electronic products as product manager.
Customers: The market consists of different customer segments: both the large, multidivisional organizations and the corporate and university laboratories require analytical and sophisticated software for multi-plant scheduling and experimental data analysis and show a higher willingness to pay for the industrial version compared with other segments. The consultants and professional companies and small businesses have the highest and second highest willingness to pay in the market for the student version and require less sophisticated models in order to support them with production scheduling, budgeting, and financial reporting. Students are the biggest segment in the market totaling 500.000 individuals who have a low willingness to pay for the industrial and commercial versions and also do not specifically need the features of those versions when building elementary models.
Channels: CSC is directly selling the two versions of Modeler to

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