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BCG Hard Business Model Transformation Comparison Strategy

POS Vend

#Software #SaaS #Retail Technology #Restaurant Technology
ProHub Comment

This is a sophisticated business model transformation case that requires candidates to evaluate a legacy on-premise software company's transition to cloud-based SaaS. The case tests ability to structure complex comparisons across financial, strategic, and risk dimensions, as well as execute quantitative pricing analysis. It's particularly challenging because it combines qualitative strategy assessment with specific mathematical requirements.

Estimated Time 15 minutes
Difficulty Hard
Source PeterK
50 / 100
Our client is a U.S.-based point-of-sale (POS) software provider POS Vend that offers inventory systems for retailers and restaurants to process customer sales and track product stock levels. They work primarily with new and small businesses. Given that continuous advancements in cloud computing fuel the growing use of SaaS (Software-as-a-Service) POS systems, POS Vend is considering changing their business model and switching to cloud as well. Thanks to cloud, end-users won’t need on-site servers as all their data will be stored and processed in the datacenters of POS Vend. Should POS Vend switch to cloud?

Clarifying Information

  1. POS Vend is mostly focused on selling hardware (e.g. scanners, terminals, receipt printers, guest-facing display) and POS software that should be installed on-premise
  2. U.S. restaurant and retail POS market was valued at $12B (2020) with the share of cloud-based POS rapidly growing (see Appendix 1)
  3. 30% of restaurants and 22% of retailers currently use cloud-based POS systems
  4. The POS software space is crowded with a lot of legacy and new players (see Appendix 2)
  5. No specific goals provided