TEAM PROJECT-1
(MGMT 510-92)
Company Name: AKV & Company Team:
Kinjal Chauhan
Abel Asrat
veera Company Background All IT service and products under one roof multinational
company Established in 2013 at Harrisburg. Products available online and in 100 stores all over the
world.
Ecommerce facility all around the world. Strategic Planning process
Our place in market.
Based on our research from external consumer and internal data
our company has been making steady progress in product service
as well as in product sales, we need to focus on our marketing
strategies for new products we are introducing into the market
Implementation of strategies
Maintain our product quality Improve our customer service Invest in marketing our new products to create a market base Improve our manufacturing costs and manage resources Strategic Planning process
Future goal Market leaders in product service Customer service to be 100% Improve Sales on new products
Effort to achieve goal Functional and Business strategies to help implement our
plans for the coming Fiscal Year. Business Model
Products and Service IT hardware Products
software products
enterprise applications
electronics accessories
Ecommerce
IT consultancy and support. Target market Target customers who wants to take benefit from IT consultancy
Customers who prefer latest technology products hardware or software
Customers who wants all in one stop service
Customers who wants to take benefit of Ecommerce which allow them to do all
exchange of goods and services electronically without any obstacles
of time or distance Business Model
Revenue Ecommerce payment option
Finance payment option with zero down payment Marketing strategy: Surveys accompanied to know customer preferences.
Focused on all source such as online, newspapers, magazine and Television
for marketing.
Focused on all social media marketing through creating online community
such as Facebook, Twitter, Pinterest, Instagram etc. Business Model
Competition: All IT consultancy who provides training and placements mostly from the lowrange countries.
For hardware products- Apple, Samsung etc.
For software products- Oracle, Microsoft corporation
For electronics accessories- BestBuy, Staples, amazon etc. Market Share: Due to ecommerce increase in Market share by 5% in year 2014 with added of 5
% in 2015 and by 15% compare to 2016. so gradually increasing every year in
market share.
20 % increase in Profits since the company open in the year 2013.
Current market share is 19% SWOT Analysis
Strengths Strong Technical Resources
Quality and economic Products with warranty
Strong mission and vision
Good marketing strategy Weaknesses Lack of Financial Management
Limited products in low range
Rapidly changing technology increase R & D costs anually SWOT Analysis
Opportunities Opportunity to grow our market in Ecommerce sector
It training and placement
Diversified product and services which provide flexibility and
stable competence. Threats Competition from existing Ecommerce firms
Increase competition from low-range countries
Dependency on specific supplyer To Develop Competencies
The core competencies that our company can improve to gain competitive edge on our market
competitors are as follows Innovation
Research and development of new products will take our company to the next level with cutting
edge technological innovations in our pipeline. We need to bump up our resources to meet the
deadlines and also explore options into acquiring small companies that have innovative
products. Quality
Maintaining our product quality is one of the priorities to be able to sustain in the ever growing
market with a lot of competitors. Customer Service
Being a service based company customer satisfaction falls right on the number one priorities to
be able to gain competitive advantage in this market. Flexibility
With the ever evolving businesses and the customer’s requirements being flexible to the market’s
volatility will give us an opportunity to explore new options as well as get accustomed to the
new changes that customers are expecting from our services. Competitive advantage at
functional level Our objective on functional level is to reduce the
manufacturing and shipping costs of our products so we can
deliver quality products for much higher margins at the same
time improve our cash flow do we can diversify our research
and developments for new products in the emerging markets.
To achieve superiority over the market we need to have an
edge in 4 different areas of our business superior
responsiveness, quality, innovation, efficiency. Competitive advantage at
business level In order to achieve competitive advantage on the business
level we are going to implement the matrix of Ansoff, which
helps in focusing on the marketing strategies for the new
products and market penetration of the existing products.
Market penetration strategy’s aim is to increase the sales of
our existing products without becoming part of a new
market. Our strategy is to pull out a part of our customer
base, to achieve this company needs to spend a little more on
product promotion and for quality increase of the product. Develop strategy at Industry
Level Our business strategic plan has started when we submit the
team statement with a basic company overview describing
the nature and business model with long and short term
objectives of the company. We stated the vision and mission
statements of the company to elucidate the purposes the
company serves during its lifecycle and the reasons for its
existence. In this document we further elucidate the business
strategic plan using various graphic techniques such as
Porter’s Five Forces Assessment, Business objective chart. Goals, Objectives, metrics and risk
No Goals High level objectives Measure/Metrics Risks 1 Expanding service by
providing diversified
Information Technology
products and services. Company plans to expand its branches to
Canada, Germany and Australia by
providing
*The
expansion is expected to be in operation
with the new branches functional no late
than the 1QRT Year 5. The existence of
operational branches in
Canada, Germany and
Australia within 5 years Foreign regulations and
compliance; economic or
geopolitical
landscape/constraints 2 Being a major digital
enterprise by not only
providing but also
extensively utilizing state of
the art Information
Technology products and
services. Company will offer an integrated web
portal for all its services and will be
made available to the customers within
the specified timeframes:
The
service is expected to be available to
customers by 1QRT Year 5. The availability of a
central web portal for the
services the company
provides in the 1QRT
Year The availability of a
central web portal for the
services the company
provides in the 1QRT
Year Company is planning to be a full fledged
digital enterprise provide all its services
via the internet in addition to the
transactions at the company facilities.
The service is expected to be available to
customers by 1QRT Year 5. The availability of a
central web portal for the
services the company
provides in the 1QRT
Year All the internal and
external risks associated
with transforming a
business into a digital
enterprise apply here 2 3 Eventually replacing the
current small IT business by a
new major IT company with
sustainable presence in the IT
industry. Company is planning to be
a multinational IT
enterprise provide all the
major IT services via the
web in addition to the
transactions at the
company facilities. The
service is expected to be
available to customers by
1QRT Year 10. The availability of a
services to the
worldwide market via
the company's
strategic branches in
major world cities.
These services are
expected to be
functional by 1QRT
Year 10. Foreign regulations and
compliance; economic or
geopolitical
landscape/constraints 4 Perform a thorough analysis on
the current business and create a
strategic planning and resource
management design which will
serve as road map for the
envisioned new enterprise. To complete the detail
strategic planning for the
new company The availability of clear
and documented
business strategy by the
end of the second year. Changes in the business
environment which may
force for significant or total
redesign of the business
plan. 5 Design and implement the basic
structure of the new enterprise
within the coming two years. Implement the core features
within the next two years. The presence of a
visible structure of the
strategic plan in the
organizational
framework by the end
of the second year. . Changes in the business
environment which may
force for significant or total
redesign of the business
plan. Relation to Michael porter’s
model
Competitive Rivalry
Threat of New Market Entry
• Moderately challenging for new
entrants
• Requires specialized knowledge in IT
products and services
• Average economies of scale
• Average cost benefits for long term
• Strong technology protection
Moderate barrier of entry
Supplier
Power •
•
•
•
•
• Supplier Power
High number of suppliers
Huge suppliers with diverse products
and services
Low uniqueness of products and services
Substitutable products and services
Changeable products and services
Neutral supplier power Thr
eat
of
New
Entr
y
Comp
etitiv
e
Rivalr
y
Thre
at of
Sub
stitu
tion •
•
•
•
• Several competitors
Below average switching costs
Below average customer loyalty
Above average cost of leaving market
Low quality differences Buyer
Power Threat of Substitution
• High cross-product
substitution
• Some cost of change
• High tendency of
substitution Buyer Power
• Individual customers to large
retailers
• Average orders
• Diverse products
• High price sensitivity
• High substitutability
• Low cost of changing
• High customer power Porter’s Five Forces
Assessment Summary
These appear to be the main concerns of the company based on the analysis: Threat of new entry: Is moderately challenging hence ensuring some profit sustainability.
But it is not impossible for devoted new companies to enter the market and succeed in
relatively short time. So there is still a risk of profit instability. Competitive rivalry: is extremely high: A rising number of competitor companies with
similar products and services and a limited market creates an intense competition with
frequent price cuts and various efforts to attract customers. So careful business planning is
vital. Buyer Power: is very strong: Buyers have a number of options and prices to choose from.
This situation with the high competitive rivalry creates high customer mobility and
business uncertainty Threat of substitution: Even though the supply flow is stable the risk of substitution of
undesirable or less desirable products and services may cause customer dissatisfaction and
hence profit loss. References http://annals.seap.usv.ro/index.php/annals/article/viewFile/4
11/423
https://domingoesalazarg.wordpress.com/2010/11/08/building
-competitive-advantage-through-business-level-strategy/
ISEM Project 1 part A business strategic plan summary
document – by Abel Aklilu Asrat
ISEM Project 1 part A business-it strategic planning
workbook – by Abel Aklilu Asrat Thank you

 

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