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Softwares diversify in
Rutvik R Malekar (PGP/19/083)
Swarup Raj Jena


Rohit Kumar




Headwaters Softwares should not

diversify in toNursing
Competition among existing rivals High
Fusion public safety systems products competed with skills tracker and
Ascend Learning priced its products $5 lesser.
Platinum education group collaborated with Brady Books, owened by

Threat of new entrants Low

Unique culture and regulation of EMS were due to the location of practice
being outside the hospital, urgent nature of care required and some
accidents of history
The courses were not offered on a regular basis

Fisdap has competitive advantage
Nobody out there competes with us across our entire set of
we are aware that some competitors are trying to increase
their penetration with slightly lower prices

Good relationship with educators, culture and scrum

75% market share.

Much of the growth was due to introduction of additional products sold to

existing target customer groups.
18% product growth per year.
Fisdap had identified several promising products and services to meet further
needs of the US EMS education community.
Fisdaps penetration at the EMT level lagged the paramedic level, and might be
International markets represented potential area for growth.
Fields coming under the Commission on Accreditation of Allied health education
programs were likely to adopt similar education philosophies, potentially
increasing the similarity of requirements across professions.
Still 25% market share to occupy.

Nursing approach in skills tracking differed significantly
from that used in EMS education
Current software was nothing similar to what Johnson
was thinking about providing.
Would loose 25% of his team in developing this
Would hamper current expansion opportunities and
would give the market to competitors.

First Mover Advantage Mirage: Lack of Unique firm

No Learning, competitors can learn from mistakes ( No insights
about the opportunities )

Mobile Resources
Other firms can acquire these resources

Applying the VRIN framework

Answering those five questions

Strategy of Related Expansions


What is our motive to expand now ?

Nursing is a large potential Market

Intrusion into main business by larger players with deeper pockets
Strong customer retention in the medical space


How attractive is the target Industry ?

Large pool of candidates taking the nursing exams ( 144358 candidate per year) up from 68759
2.6 million licensed nurses in 2008
Large number of Community college students


What are the scope economies with our existing businesses ?

Development of new materials requires ground up research and dedicated staffing and one year of time
Nursing approach differed significantly from EMS education
Different scheduling requirement ,requiring retooling of current software


What Organizational changes are necessary to exploit scope

economies ?

Reprioritization of existing plan / Steep Learning Curve

Quarter of overworked team required to be dedicated to the effort