This is because the companies strategy is different.
It is disruptive innovation.
If you read that it pretty much explains the strategy. Disruptive innovation democratizes technology to the extent that it brings it to a new market (in this case the SME market).
It does not make tactical sense to target the companies you listed. They are already serviced by the big LMS players. And yes, the Velpic platform is superior but it is a hard bargain to try to get them to swap just yet. As an entrant we need to target the SMEs (new market) before displacing established market leaders.
This strategy is best executed through reseller agreements (on the Velpic Market Place) and strategic partnering. This provides a low cost execution to hit hard and fast.
This strategy is not new by the way. It has been around for a long time. However, it synchronizes incredibly well with this rise of SaaS based business models.
This is why you have seen companies like Xero absolutely dominate market leaders (MYOB). They used the exact same strategy. They created an easy to use, yet sophisticated product and sold it to the SME marketplace before displacing the market leader MYOB.
If you want to hear it directly from the man who coined the theory watch the video below:
VPC Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
