Tuesday, October 9, 2012

Michael David – Week 04 – Application Assignment - Interview


Michael David – Week 04 – Application Assignment - Interview







uSamp (www.usamp.com)

Founded in 2008, uSamp creates online survey software and recruits panelists to complete online surveys. The data collected is furnished to market research firms and organizations desiring target specific data on consumer habits and demographics. uSamp employs 145 people in 5 locations worldwide.  Annual revenues in 2010 were over $22 million. For more information, visit www.usamp.com.

Rodney Lazar

Mr. Lazar is the vice-president of finance for uSamp at the corporate office located in Encino, California. Mr. Lazar holds an MBA from Pepperdine University and prior to working at uSamp was a consultant with DLC, Inc. His extensive financial resume has included roles as analyst, vice-president and business development.


1.    In today’s business world, strategic alliances can make or break an organization. In your personal opinion, can you give us some of the advantages of building an alliance?

“It’s cheaper to find partners that bring to uSamp, those resources that would too costly to do in-house.  We can’t re-create what they have already place.  From a financial perspective it makes more sense to partner up with an entity that can reduce the cost of acquiring those resources.  Their C.O.A. (cost of acquisition) is lower than ours would be to accomplish the same things.  Some of them have the reputation and name recognition that would be too costly for uSamp to attempt.”


2.    What can be some of the drawbacks or destructive aspects of an alliance?

“Sometimes it just doesn’t work out.  Our partners need to drive panelists to our online surveys.  If you align with a partner that doesn’t fulfill their part of the agreement, our clients will not get the information they pay us for, and that can be a black eye for uSamp.  It hurts our credibility and could cost uSamp future business.”
3.    uSamp currently seeks to create alliances with online publishers, what were some of the motivating factors for uSamp to seek these alliances? Why was this necessary?

“They can do something that uSamp can’t do efficiently.  Our partnerships with online publishers reduce the cost of our company going out and sourcing a diverse base of panelists.  It just didn’t make sense for us to start a panel recruiting campaign.  Partnerships with online publishers made the best sense from a cost perspective.”

4.    How are these alliances structured?

“Market research firms are hired by clients to discover strategic information about people.  For example, a clothing company wants to design a new style of jeans.  They don’t want to gamble with their designs and want to know what their perspective customer base wants in a pair of jeans.  They hire a market research firm to discover the current trends in jean fashion.  When they approach uSamp for panel responses, we turn to our partners and ask them to send us anyone who wears jeans so we can survey them.  I can’t tell you who our publishers are for reasons of confidentiality, but I can tell you that they can be social media sites, professional association sites and niche sites like websites that cater to parents or college students.”

5.    Can you give a brief explanation of how uSamp has benefited from these partnerships and also what limitations have been experienced?

“A small company needs many people to drive traffic and complete panels.  Benefits of publisher ramps up the traffic and cuts the time to get the accomplished result. A limitation is that it costs money and there is an element of reduced control of the actual publisher”

6.    Alliances are dynamic in nature, can you explain some of the ways the alliance had to change to adapt to changes that were not present when the partnership was created?

“As uSamp grew, the company yielded more power in the industry and had the reputation to flex to it’s muscle and control publishers to force them to complete their obligation and guarantee quality panels.”

7.    How has this partnership affected the human factor for those involved?  Was there a benefit or a loss associated with it?

“The partnerships we create are relatively free from human burden.  In other words, people are not cut out of the process and also there isn’t any extra work created for them.  It benefits both sides which contributes to our success.”

8.    How have government regulations impact the alliances?  Were they in uSamp’s favor or against?

“Because some of the surveys can include minors and also since some of the surveys may not be appropriate for minors, several steps had to be taken to protect minors from things that are not appropriate. Also, the lack of enforcement always draws the attention of regulation agencies and watch dog groups. uSamp operates in accordance with the law and complies with the regulations as dictated by the governments where we operate.”

9.    In your personal experience, how could this alliance be improved for both sides?

“Publisher partnerships can always be improved by increasing communication between the partner and all aspects of uSamp.  Although uSamp is dedicated to employing the latest technology, we can always benefit from a free-flowing line of communication between our companies.”


Interview analysis:
In my interview with Mr. Lazar, I discovered that alliances bridge the gap between the desired result and the cost associated in attaining it.  Clearly in this case, finding partners that will continually source panelists is a cost-effective way of keeping a fresh flow of survey takers.  uSamp has created a valuable component of market research and must continually source new partnerships to stay competitive. 

Drawing from the week 4 reading, it’s easy to see the correlations of theory and practice.  I made every effort to try and incorporate some of the basic components of the reading to the interview questions.  While I didn’t ask him to name the “key issues in alliance management,” I tailored the questions as best as I could to pull from him the necessary responses that would satisfy theory application. 

His responses were consistent with the topics of the reading with the exception of the international aspect since he would have little to contribute with respects to overseas operations.  In the questions asked, I attempted to explore uSamp’s partnership philosophy with theory.  The questions were designed to explore why uSamp decided to create a strategic alliance, how they felt about it, how it has affected the corporate culture and any drawbacks.  His overall responses confirmed the similarities that were covered in week 4.


References

Gomes-Casseres, B. (1993). "Managing International Alliances: A Conceptual Framework." Harvard Business School. pp. 1-20.

Kanter, R. (2010). "Collaborative Advantage: The Art of Alliances." Harvard Business Review. pp. 1-16.

(2011). “2011 America’s Most Promising Companies.” Retrieved from  http://www.forbes.com/lists/2011/28/most-promising-companies-11_uSamp_CQWA.html


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