In the ever changing business environment, MYOB, being the leader of the market faces the traditional challenge of strategic decision whether to make investment of its restricted resources in innovation of new products, or to make use of those resources so as to extend support to the existing customers and thereby retaining them. The competition is stiff in the field of their operation and if they lose the focus of their target, there are several competitors ready to takeover customers which the company has established over several decades. The situation is called as “the innovator’s dilemma” by a famous Harvard professor and consultant Clayton Christensen (Christensen, 2013).
Possible solution for this problem is to recognise the market trend and need of the hour, there must be a balance between expenses allotted for innovations and the retaining of existing customers. If the focus goes entirely on innovating products and beating the competition by launching new products before them and not taking care of the existing customers, the cause will be lost in the process as there are several competitors who would grab the opportunity by providing better customer service, similarly if the innovation is altogether ceased or delayed, the newer technologies by competitors might attract even the existing clients. Hence, there must be a strategic balance between the two. MYOB has faced this challenge in past when Xero launched its online products, while MYOB deciding to serve it 1.2 million existing customers. The company lost substantial market share and eventually had to make up the lost time by urgent technological upgradation and launches (Redrup, 2015). However, now the company claims to have 46 percent growth in online subscriptions in 2015, with about 78 percent of their SME customers opting for online solutions. They now boast of whopping 170,000 online customers (Craft, 2016).