Magex: Downtime of a Quasi-Monopoly

Description

Magex: Downtime of a Quasi-Monopoly: Abstract

Magex Technologies is a small Canadian company specializing in the creation and distribution of proprietary housing management software, primarily designed for rentals. Magex’s typical customers are landlords, property management companies, and housing cooperatives. Most of the tenants of local low-cost rentals are students. July and August are poor rental months as students leave the various campuses for the summer and holidays. Users of Magex products see their rental occupancy and revenues fall significantly during these months, which means less servicing business for Magex. Despite having a quasi-monopoly in Sherbrooke, Magex finds itself in a precarious position during the summer months. What might this small business do to ensure that its resources are used to full capacity throughout the year?

Teaching objectives

This case is suited for first-year marketing students learning to develop a marketing plan. The case is simple and is designed to generate discussion and promote imaginative ideas.

Main themes covered

• Marketing strategy
• Sales
• Software
• Real estate

Concepts and theories related to the case

• Marketing strategy
• Idle times
• Sales
• Attention, interest, desire, and action (AIDA)

Additional information

Also available in French.

Teaching notes are available for teachers only. Contact the HEC Montréal Case Centre for more information.