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Orchestrate explored markets for a new service

When Bas Kleinveld was toying with the idea of starting a company, i.e. Orchestrate, he was following a course on Strategy, Business Models and Enterprise Architecture. He saw that there was a need for a company that could orchestrate IT-sourcing from a client perspective. Orchestrate would create customer value by realizing carefree IT operations and by helping IT departments in operating and delivering better IT services to their (internal) customers.

To put his ideas in practice he utilised Porter’s Five Forces analysis, and combined a SWOT and PESTLE analysis before he started looking into the business model. Bas analysed the bargaining power of buyers and suppliers, and the threats of new entrants. Based on a detailed analysis, he concluded that competition, i.e. rivalry and diversity and the number of competitors would be low. Large players wouldn’t be interested to offer this specific service. He expected the growth rate to be medium, and product differentiation low, but switching costs for customers and exit barriers would be high. Bas considered a Porter analysis to be crucial in his decision to continue with developing Orchestrate’s Business Model. Bas established Orchestrate in 2014 and his business is flourishing.