Scaled Agile SAFe-APM Exam - Topic 8 Question 27 Discussion

Actual exam question for Scaled Agile's SAFe-APM exam

Question #: 27
Topic #: 8

A company that typically markets to small companies has a growth strategy to sell to larger organizations. The Product Manager is in charge of a new application and must recommend which of the following segments to address first.

Segment 1: Top 1,000 very large companies (over 25,000 employees); dominated by large Enterprise application vendors who sell the app as an add-on module but need to be better integrated into their other applications. Customer anecdotes indicate low satisfaction.

Segment 2: 5.8 million US-based small businesses (under 500 employees); tasks are often done in spreadsheets. Competitors are small privately-owned software companies offering desktop-based solutions. The company already has a good market share in this segment.

What should be the recommendation for the next 12 months?

AChoose segment 2

BChoose segment 1

CFind another segment

DChoose both

Show Suggested Answer

Suggested Answer: B

A milestone is a specific point in time that marks a significant event or achievement for the ART or Solution Train. A milestone can indicate a market window occurrence during a PI, which is a limited period of time in which a product or service can be launched to gain a competitive advantage or meet a customer demand. A milestone can help the ART or Solution Train align their delivery with the market window, and communicate their progress and readiness to the stakeholders.

Milestones: This article from the Scaled Agile Framework explains the concept and purpose of milestones, and describes the four types of milestones: Program Increment (PI), Fixed-Date, Learning, and Benefits.

ART Planning Board: This article from the Scaled Agile Framework describes the role and structure of the ART Planning Board, and how it supports the PI Planning process and the Program Board.

ART Planning Board - PI Planning: This article from Ivar Jacobson International provides practical advice and examples of how to use the ART Planning Board during the Management Review, and what to look for in terms of market windows, dependencies, risks, and objectives.

by Holley at Jan 15, 2025, 06:13 AM

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Delisa

5 months ago

Both segments could work, but focus on Segment 2 first!

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Stephaine

5 months ago

Really? Are small businesses ready for a new app?

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Jill

5 months ago

Totally agree, small businesses are often overlooked!

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Colene

5 months ago

I think Segment 1 could be more profitable in the long run.

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Merilyn

6 months ago

Segment 2 has a huge market potential with small businesses.

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Meaghan

6 months ago

Segment 1 sounds appealing because of the low satisfaction, but I worry about the integration challenges mentioned.

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Ashton

6 months ago

I feel like we practiced a similar question where choosing both segments seemed like a good strategy, but it could stretch resources too thin.

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Natalie

6 months ago

I think segment 2 might be safer since we already have a foothold there, but I’m not sure if it’s enough for growth.

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Maurine

6 months ago

I remember discussing how targeting larger companies could be risky due to the competition from established vendors.

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Margart

6 months ago

Hmm, I'm not sure. The question mentions the enterprise segment is dominated by large vendors, which could make it really challenging to break into. I might look for a different segment that's not as saturated.

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Carma

6 months ago

I'm leaning towards choosing both segments. The small business segment is already established, and the enterprise segment has significant growth potential. If the resources are available, I think targeting both could be a smart move.

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Basilia

6 months ago

I'm a bit torn on this one. The enterprise segment seems promising, but the low customer satisfaction is a concern. I'd want to dig deeper into the reasons behind that before making a recommendation.

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Basilia

6 months ago

This seems like a pretty straightforward decision. The company already has a good market share in the small business segment, so I'd recommend focusing on the larger enterprise segment where there's more potential for growth.

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Leah

11 months ago

Segment 1, no doubt! Those big enterprise customers have deep pockets. The company just needs to get their product to 'work with' the other apps. What could go wrong? *wink wink*

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Kanisha

11 months ago

C'mon, guys. Finding another segment is the only way to go. The company is already strong in small businesses, and the enterprise market is too competitive. They need to think outside the box and find a new, untapped opportunity.

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Deonna

9 months ago

D) Choose both

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Tomas

10 months ago

C) Find another segment

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Gilma

10 months ago

B) Choose segment 1

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Wilson

11 months ago

A) Choose segment 2

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Sonia

11 months ago

Hmm, I'm not so sure. Choosing both segments seems like the best approach to me. That way, they can continue to dominate the small business market while also dipping their toes into the larger enterprise space.

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Kenia

10 months ago

But segment 2 already has a good market share, so focusing on that could also be beneficial.

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Ressie

11 months ago

Segment 1 seems like a good opportunity to improve customer satisfaction.

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Louann

11 months ago

I think choosing both segments is a good idea. It allows them to expand their reach.

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Latrice

11 months ago

I'd have to disagree. The growth potential in Segment 1 is much larger, even though the competition is tougher. If the company can get their product better integrated with the enterprise vendors, they could really make a big impact.

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Junita

10 months ago

That's true, covering both segments could be a good strategy to maximize our market reach and potential growth.

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Cortney

10 months ago

But Segment 2 already has a good market share for us. Maybe we should consider both segments to cover all bases.

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Maurine

11 months ago

I think we should go for Segment 1. The potential for growth is huge, even with the tough competition.

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Laurene

12 months ago

Segment 2 seems like the obvious choice here. The company already has a good market share in that segment, and the competitors are smaller software companies. Going after the larger enterprises in Segment 1 might be too ambitious for the next 12 months.

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