Rimini Street SWOT
The global presence of Rimini Street which spans 18 countries and over 1,800 clients shows the company's strength as a result of its global marketing efforts. The company faces threat from enterprise software vendors such as SAP, IBM, Oracle and others who are primary support service providers for their product lines.
- A major strength that Rimini Street banks on is its large client base of "over 1,800 active clients globally, including 81 Fortune 500 companies and 20 Fortune Global 100 companies across a broad range of industries".
- While Rimini Street is headquartered in the U.S., it has locations in 18 countries that show the strength of the company. The company reported that 35% of its revenue in 2018 came from outside the U.S.
- On social media, Rimini Street is active across different social media pages. They have 18.5K followers on LinkedIn, they have 2.7K followers on Facebook, and 6.6k on Twitter. This allows the company to leverage social media to drive lead generation through strategic social media marketing efforts.
- Rimini Street adopts an effective SEO strategy which is a part of the company's strength. The company has an active blog and an optimized home page which can be seen as the company website pops up on top on Google for "enterprise software support services."
- In terms of marketing spend, Rimini Street increased their sale and marketing spend from $66,759,000 in 2017 to $93,215,000 in 2018 which is the most they have spent on sales and marketing from 2014 to 2018. This reflected in the company's revenue which rose from $212,633,000 in 2017 to $252,790,000 in 2018 which is the highest they have generated between 2014 to 2018.
- In terms of business model, Rimini Street's strength stems from its offering of support services for software from enterprise vendors such as Oracle, Microsoft, IBM, SalesForce, and SAP.
- According to statistics from Similar Web, the company's website has a bounce rate of 82.66% with an average visitor time spend of 1:08 minutes and 1.60 pages. These are not positive signs for a company that is looking to generate prospects from site visitors.
- For three consecutive years, Rimini Street has recorded losses, leading to an accumulated deficit of $372.4 million. This has been attributed to the company's inability to have a sustained increase in revenue and failure to manage its costs.
- Based on the size of Rimini Street in terms of revenue, employees, locations, and others, many software licensees can be reluctant to
engage them to "provide software maintenance and support services for their enterprise application software, choosing instead to continue relying on support services provided by
their enterprise software vendor."
- The market for "independent enterprise software support products and services is large." As such, there is an opportunity for Rimini Street to expand into markets such as Africa where they currently don't have an office as they continue to make significant investments in sales and marketing.
- They can also expand into these markets by securing strategic marketing and sales partnerships in regions where they have little or no presence.
- While Rimini Street currently offers support services for "five software vendors and 23 software product families" since its inception, they have opportunities to expand their portfolio to include more vendors and product lines such as hybrid IT.
- While Rimini Street offers support services for enterprise software vendors, they also face competition from these vendors such as IBM, Microsoft, Oracle, and SAP. These vendors also offer support services themselves as the "primary support providers for their products."
- At the moment, Rimini Street depends substantially on its clients trusting an independent support provider like them to maintain and service their enterprise software rather than the software vendor.
- However, there is a risk of new competitors entering the support industry that may have advantages over Rimini in terms of "longer operating histories, significantly greater financial, technical, marketing or other resources, greater name recognition, and deeper customer relationships."
- Furthermore, the company reported in their 2018 annual report that they were facing ongoing litigation filed by Oracle which could "result in the payment of substantial damages and/or an injunction against certain of their business practices, either of which could have a material adverse effect on their business and financial results."
- Support services offered by Rimini Street to clients using Oracle products contributed 72% of the company's revenue in 2018.