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Introduction Of Salesforce Case study

Marc Benioff created Salesforce in 1999. Former Oracle executive who developed the idea while on leave in India and Hawaii. He began to formulate his own startup business plan after becoming aware of the popularity of consumer websites like and realising the potential for the Internet to be a goldmine for business consumers. His first business effort, after considering one in human resources, was Customer Relationship Management (CRM). He believed that his software would be simple to use, affordable, and a great advance over comparable products existing on the market. has evolved into a marketplace where business owners and managers may purchase software licences with a variety of business applications, including service and support, marketing, and, of course, sales.

Introduction Of Salesforce Case study

Salesforce Situation Analysis

Saleforce was forced to come up with a new way of providing its products and services in order to enter the market and survive. The best way was to not only provide on-demand web-based solutions with a 30-day initial free trial before buying but also to concentrate on small and medium-sized businesses (SMB) and cater to their needs. Competitors like Oracle, SAP, Microsoft, and others that dominated the enterprise software market, locked in almost all the large companies in the world with their products and services offerings. Customers in the SMB and Mid-Market segments valued the company's solutions since they did not require them to purchase expensive gear like servers or PCs or other applications, significantly reducing their expenditures. 

Salesforce Situation Analysis

Vision and Mission Statement of Salesforce

“We build bridges between companies and customers. Businesses succeed when they create meaningful connection. Our mission is to deliver it. We help unite every department to better focus on customers with Customer 360, the world's #1 CRM.”

As the top-ten corporate software company with the fastest growth, Salesforce offers excellent prospects for career advancement.

    Industry Structure and Economic Feature

    Between both the end of 2015 and the end of 2020, Salesforce and its ecosystem will enable the development of 1.9 million employment inside the Salesforce customer base through the usage of cloud computing.

    During the same time period, Salesforce and its ecosystem will facilitate the creation of more than 2.8 million indirect jobs, or those positions produced in supply and distribution networks that serve Salesforce clients as well as from new company employees spending money in the overall economy.

    Over the same time frame, the advantages of cloud computing that Salesforce clients will experience will boost their local economies' GDP by $389 billion.

    These advantages of cloud computing are mostly due to the facilitation of increased IT innovation.

    Salesforce Strategies

    Salesforce's marketing approach is built on utilising numerous marketing initiatives across conventional and social media channels to reach potential and existing clients, partners, and developers. Salesforce's main marketing initiatives consist of:

    Strategies for marketing communication that are aligned with a wider customer journey that use email, social media, the web, television, and other channels;

    Participation in trade exhibitions and industry events, as well as physical and virtual customer events of all sizes to increase customer and prospect awareness; proprietary events like Dreamforce and virtual Dreamforce to You, World Tours, and other virtual events. Live events and original programming on Salesforce+, the streaming service Salesforce launched in fiscal 2022, which features discussions about the future of technology in the digital-first, work-anywhere world as well as educational content to learn new skills and pursue new career opportunities; press and industry analyst relations to garner third-party validation and generate positive coverage; partner co-marketing activities with global and regional implementation plans; and other content

    Competitive Analysis and Advantage in the industry said that Salesforce "faces severe competition in all market categories" in June of 2015. Nevertheless, that same survey states that Salesforce has an 18.4% market share overall, which is 6.3% more than SAP's second-place position. This rate is significantly greater when we include the small company sector. Only the cloud is used to offer as software as a service (SaaS). On the one hand, that implies that upfront expenditures on hardware and software are never necessary. A fully SaaS platform, however, restricts the choices for network design. Some businesses choose private cloud, on-premises, or hybrid cloud infrastructures, but these are incompatible.

    Financial institutions, entertainment, biological sciences, telecommunications, retail, media, administration, manufacturing, automotive, graduate schools, and voluntary organisations are just a few of the sectors that Salesforce explicitly targets. The same sectors are targeted by a number of significant CRM rivals. Although the competition may be fierce, this fact that there is absolutely no tolerance for carelessness is more of a reality than a threat. The same is true of Salesforce's smaller and mid-sized rivals, but maybe to a lesser extent since they lack the very same breadth.

    More than any rival, Salesforce's global sales increased by 28.2% between 2013 and 2014. More recent financial reports reveal that the growth rate remained constant until FY 2016. Let's change the phrase from that was previously quoted to read, "Salesforce delivers fierce competition to all market areas," in light of this. Although the revised version identifies the true uniqueness of Salesforce CRM, the original version is at least equally correct. No other CRM competes as fiercely in every market as Salesforce.

    SWOT Analysis


    Salesforce, Inc., one of the top businesses in its sector, has many advantages that set it apart from competitors. These advantages not only aid in expanding your market share in already established areas but also aid in market penetration.

    High Free Cash Flow: The firm has access to resources to develop into new initiatives thanks to its strong free cash flow.

    Good ROI: By generating new revenue streams, it is reasonably successful in new initiatives and offers a high return on capital investments.

    Strong Brand Portfolio: Salesforce has made investments over the years to develop a strong brand portfolio. If a company wishes to diversify into other product categories, this brand portfolio may be quite helpful.

    Outstanding Performance in New Markets: Salesforce has acquired the necessary experience to successfully enter new markets. The expansion has aided businesses in diversifying their business cycle risks in the markets where they compete and generating new income sources.


    Choices are what strategy is all about, and weaknesses are areas where businesses may use SWOT analysis to strengthen, so maximising their competitive advantage and strategic positioning.

    More Funding is Required for New Technologies The overall cost of integrating processes for Salesforce is higher due to the size of the growth and the number of different geographic areas the firm will expand to. The company's current technological investments are not in line with its objectives.

    Financial Planning Isn't Done Correctly or Effectively: The liquidity ratio and liquid asset ratio show that a business can utilise its cash more effectively than it is.

    High Labour Outflow: Salesforce has higher dropout rates compared to other companies in the sector, and it must spend a lot more money on staff training.


    Opportunities are prospective areas that businesses may concentrate on to enhance performance, boost sales, and eventually profit.

    New Environmental Policy: New possibilities will level the playing field for all participants in the sector. This is a fantastic chance for Salesforce, Inc. to profit from cutting-edge technology and expand its market share in fresh product categories.

    New Tax Laws: New tax laws may significantly affect how Salesforce does business and provide them with new chances to boost their profitability.

    Open New Countries Through Government Agreements: Salesforce has been given the opportunity to enter newly developed markets through the provision of new technological standards and government free trade agreements.


    Environmental factors that just might hinder a performance of the business constitute dangers. Here are a few dangers posed by Salesforce:

    Legal Actions: Given the ongoing changes to various laws and product standards in certain areas, the Company may be subject to legal action there.

    Fierce Competition: Over the last two years, the market has seen a rise in participants due to strong profitability, which has decreased both profitability and overall revenue.

    Liability Laws: Different in each nation As a result of these changes in market policy, Salesforce may be subject to several liability claims.

    Quantitative spikes in commodity prices: Salesforce's profitability may be in jeopardy. Salesforce's ability to maintain its current rate of market revenue growth is threatened by a lack of competent labour in several international regions.

    PESTLE Analysis

    The elements that can affect, Inc.'s long-term profitability in a particular nation or market are heavily influenced by political issues. The application software business that, Inc. does in more than a dozen nations exposes it to a variety of political system and environment hazards. Diversifying the systemic risks of the political environment is necessary to succeed in such a dynamic application software sector across many nations.

    The aggregate demand and aggregate investment in an economy are determined by the macroenvironmental variables, such as the inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle. While microenvironmental elements like industry standards have an influence on the firm's competitive edge., Inc. may anticipate the growth trajectory of both the organisation and the —sectoryname— sector by using economic factors related to the nation, such as growth rate, inflation, and industry, such as application software industry growth rate, consumer spending, etc.

    The organisational culture in a specific situation is influenced by the way of life and culture of the society., Inc. marketers in the application software industry understand a market's customers and develop marketing messages for consumers under the effect of the shared values and mindsets of the population.

    Numerous sectors are being rapidly disrupted by technology. The transportation sector is a wonderful example to demonstrate this idea. The business has been changing quite quickly over the past five years, without even allowing the established firms a chance to adapt. Uber and Lyft are currently the dominant players in the taxi market. Technology companies like Google are driving the automation of the automotive sector, while Tesla, which has declared an electrical vehicle revolution, is upending production.

    Different markets offer various norms or environmental requirements, which might have an effect on an organization's profitability there. States can have differing liability and environmental regulations even within the same nation. For instance, in the United States, Florida and Texas have differing responsibility provisions in the event of accidents or environmental catastrophes. Similar to this, several European nations offer substantial tax incentives to businesses engaged in the renewable energy industry.

    Target Market Analysis of Salesforce

    Large corporations and enterprises make up the majority of the Salesforce target market. Companies with more than 1000 workers make up the vast bulk of Salesforce clients. Salesforce is used by businesses all around the world, but the US market is the biggest. Salesforce architects and developers have advanced degrees and make good money. They often have aspirations for their careers and are highly drawn to the Salesforce brand's reputation as a "trailblazer."

    Marketing Mix of Salesforce

    Salesforce began as a software as a service (SaaS) company. The sales automation software was created by the team as a whole. It was introduced in 1999, and it quickly became quite popular. The business created and released its customer success platform in October 2014. It integrated all of Salesforce's offerings into a single platform. Products for customer relationship management provide for the majority of its income.

    The models include performance, group, professional, enterprise, and contact manager. It varies in terms of its characteristics and length. The firm provides businesses with specialised solutions and bills them in accordance with the level of development and solutions needed.

    San Francisco is home to Salesforce's corporate headquarters. Additionally, it has regional offices in some of its key markets, including Switzerland, the Middle East, India, Tokyo, London, Sydney, Oregon, and others. Since it is a cloud computing corporation, all of its services may be accessed through websites and specialised applications. They offer consultancy and client service.

    The Salesforce marketing strategy's promotional and advertising approach is as follows:

    Salesforce advertises their business through a variety of corporate and B2B channels. Through strong social media presence and internet advertising, it advertises its business. It doesn't employ endorsements from famous people. however publishes advertisements as posters and videos in pertinent print and internet media.

    Salesforce Competitive Analysis

    Salesforce Competitive Analysis Image

    Over the past 20 years, Salesforce revenue has increased at a CAGR of 51.22%. Compound yearly sales increase over the previous ten years is 29.04%.

    Key success factors

    Development in the pipeline, client loyalty, and customer retention are all impacted by customer success. Customer success managers (CSMs) are crucial to operationalizing your business's commitment to assisting clients in getting the most out of their expenditures. Customer engagement specialists are thus in great demand.

    According to a 2019 Gainsight report on the State of Customer Success:

    Between 2015 and 2018, there were 8 times as many customer success manager job ads on LinkedIn in the US.

    Within the US, the number of customer success manager job listings on LinkedIn increased by 10x during 2019 and 2018.

    Throughout 2017 and 2018, there were 84% more customer engagement job posts on LinkedIn.

    Problems and Issues in Salesforce’s Organization

    Salesforce is a flexible platform that gives users access to a wide range of goods and services to meet essential business requirements. It's crucial to properly plan and prepare for CRM deployment if you want to benefit as much as possible from Salesforce use. Here are a few of the most typical Salesforce issues that a company may run into when preparing to instal CRM.

    Costs and Non-Technical CRM Challenges

    One of any business owner's primary worries has always been the cost of deploying any programme. 

    Financial Analysis

    Salesforce Third Quarter Fiscal Result 2023


    Salesforce, the world's top CRM and customer success platform, enables businesses to engage with customers in entirely new ways. Three revolutionary concepts served as the foundation for the firm: a new cloud computing technology model, a pay-as-you-go business model, and a new integrated corporate philanthropy approach. These fundamental ideals have led our business to tremendous heights, including being voted the #1 FORTUNE '100 Best Companies to Work For®' and one of Forbes' "World's Most Innovative Companies" for eight consecutive years.

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