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Nuway Software: Making the New Way Sustainable

Susan J. Van Weelden; Laurie George Busuttil

Product #:9B20M104
Supplier:Ivey
Discipline:Strategy
Setting:Canada, 2020
Details:Case (PDF) • 12 pages • 2020-05-26

Subjects:

Strategy

Industries:

Business services sector

Geography:

North AmericaCanada
Your Price:$9.71

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Nuway Software (Nuway) specialized in custom mobile software. While it had procured many contracts over its 15 year history, mostly for the less than truckload and courier sectors of the transportation industry, by the beginning of 2020, it had not found a way to be consistently profitable. Therefore, the goal of Peter Neely, the company’s president, was to develop recurring revenue streams. The question was how best to accomplish this goal. Should the company continue with its current business model of building custom software using its Nulogic framework but focus on a diversification strategy? Should it move fully into the creation of an off the shelf software package? Should it utilize a hybrid approach of customizing off the shelf software?

Learning Objectives

After working through the case and assignment questions, students will be able to
  • classify and evaluate Nuway’s current strategy using Porter’s generic strategies; Blue Ocean versus Red Ocean strategies, and VRIO (value, rarity, imitability, and organization) analysis;
  • assess the attractiveness of various potential client sectors in the mobility segment of three related software development industries (custom software, customized software, and off-the-shelf packaged software) using Porter’s Five Forces analysis;
  • evaluate a differentiation strategy;
  • evaluate the potential addition of a new product;
  • consider whether a hybrid strategy combining some differentiated services with a standard product would be advisable or even possible;
  • make profitability projections for various strategic alternatives;
  • make a recommendation for the best way forward for a company whose goal is to achieve consistent profitability; and
  • prepare an implementation plan.
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Case Study: Nuway Software: Making the New Way Sustainable (English version) | Ivey Publishing