Game Time Decision for AppDirect

AppDirect is a start-up that offers small businesses software-as-a-service solutions through a business app marketplace and portal. Daniel Saks, cofounder and co-CEO, is faced with the key question of deciding distribution strategy: should AppDirect find channel partners or create a self-branded platform? The case describes the evolving business app market by analyzing the strategies and business models of competitors for both the marketplace and portal products. The marketplace offers small businesses search, trial, and purchase of software-as-a-service apps for a wide range of business needs, from customer management to human resources, while the portal service gives businesses the ability to manage all their apps in one place, from user management to single sign-on. The case encourages discussion on the evolution and future direction of this nascent market. Learning Objective: The case is designed for use in an advanced, elective strategy or entrepreneurship course focusing on two-sided platforms, technology-intensive businesses and distribution strategies