Business Plan of Computer Business

Question: Describe about the Business Plan of Computer Business? Answer: Executive Summary This report attempts to reflect the business plan of computer technology in a day to day life and modern business organizations. The ideas of business plan for opening of computer stores is came out of the existing gap in the services offered by the existing companies. The name of the store would be Modern computer who will be selecting of the computers, hardware, and software with warranty of 1 year warranty of free services. The company will have customers from the general people to the medium organizations. Apart from that, MC will be also be using the penetration pricing strategies in order to outperform the existing competitors. Moreover, company will be base sole proprietorship with investment worth of the 120,000 for opening of the stores. Lastly, competitors analysis will give the current strategies of the competitors which will help to bridge the gap for the current company. Description of the organization (Modern Computers) In the contemporary business, scenario computers have taught us how to make complex calculations within the shortest possible span of time whether it is calculating the total monthly grocery or electricity bill and etc (Analoui and Karami, 2014). In corporate houses the computers play a major role in maintaining database of the employees, developing payrolls for the employees, storing their appraisals, track each and every transaction. While assessing the opportunity, the sole proprietors has opened new computer store known as the Modern computers. Modern computers will be into selling of the hardware and software to the corporate and general customers (Dess and Lumpkin, 2009). Company will be private limited located in London at Camden lock market where the general footfall is nearly more than 30, 000 each days on weekdays and more than 50, 000 at weekends. Objectives -One of the major objectives of the MC is to generate profit margin by more than 25%. -MC will be providing fast and reliable technical assistance to the customers -Increase in the sales of hardware and softwares by double within 3rd year Products and services Today almost each one of us possesses a personal computer or a laptop at home. It is used for various purposes. Every office whether big or small uses the various computer applications to successfully operates in the short and long run. Hardware Hardware refers to all the physical and tangible components of the computer. These include the monitor, the keyboard, the mouse, the printer, hard disk drive etc. These are the main frameworks which support the software (Massey and gambrel, 2014). Company will be dealing in selling of the hardware such as the motherboards, hard disks, graphic cards, sound cards, RAMs, monitors and peripheral hardware such as the mouse and keyboard are also getting updated daily. The major companies like Intel and AMD are competing with each other in order to develop processors which will be fast and reliable in handling such complex operations. (Lubbe et al. 2014). Fig.1: Various types of hardware (Source: Freeman, 2010, pp-330) Software There has been immense development in the field of data storage and processing (Gazibara et al. 2015). MC will be selling of computers that has storage capacity of over 30 GB of memory with ease. The innovation in various operating system (OS), like Microsoft Windows, Linux, etc have made it possible to handle and process complex data multi tasking for the corporate business houses. Modern computer will also be dealing in installing the various software like Internet Explorer, Chrome, Firefox help us to use the internet. They are also slowly integrated into technologies such as GPS. The software like Microsoft Word, Excel and PowerPoint has made computing fun and easier (Furnell et al. 2014). Fig.2: Software services given by Modern computers (Source: Fifeld, 2012, pp-213) Years Demand of Hardware (million) Demand of Software (million) Demand of assemble Computers (million) 2014 3171 2760 5956 2013 2047 2361 4587 2012 1021 1458 3451 2011 1371 1185 3108 2010 961 1057 2515 Graph 1: Demand of computers in UK market (Source: Bolton and Lemon, 2013, pp- 172) From the above , it has been found that rise in the demand of the assembled computers and hardware and softwares are all time high. This because of the rise in the small and medium scale enterprise in UK from 2,10, 0000 to more than 9,45, 000 (Bolton and Lemon, 2013). Apart from that, the major gap in the computer or peripherals business ins services offered which is been very poorly served by the existing computers company. Figure 3: Pricing strategies of Modern computers (Source: Dess and Lumpkin, 2009, pp-334) One of the major pricing strategies would be by the MP computers would be penetration pricing strategies which would helps the company to gain the large customer base. Pricing strategies of the existing customer are very much price skimming and or economy pricing (Lim and Lusch, 2011). Penetration pricing offered by the modern computers will give them high quality of products with higher guaranteed free services of 1 year would increase the customer base. Place: Segmentation bases Target customers segment of Fast food industry Geographic Region London Density Urban territory (24 million customer base) Age All age category Gender Male, females and others Income High and middle income groups Occupation Employees and professionals Demographic Social status Working class, middle class and higher class Size of customers Family (Single, nuclear, joint family) and corporate houses (includes small and medium size enterprise too) Psychographic Lifestyle Modern business and family Occasions Regular Behavioural Benefits Price advantages and diversify products under one roof. Occasions Any kind of occasion specifically in Christmas and thanks giving special offers will kept Modern computers will be selling its products one of the largest footfall area called Camden market which is very has crowded with more than 30,000 footfall on daily basis on week days and more than 65, 000 at weekends (Lindgreen and Finn, 2010). Besides that, company will have operations presence in Yorkshire , Westen Coyney and at Howden for free services. Promotions strategy Promotional strategies Expenditure (%) Social media (Face Book, Twitter , YouTube) 58.01% Televisions 32.02% Websites 28% Ambient 21.03% Magazines and news paper 14.11% Offers and discounts 9.07% Graph 2: Expenditure on promotional strategies (Source: Bottomley and Doyle, 2014, pp- 367) Social media: With the of sharp rise in the internet users , Modern computers are looking to promote their products in the in social media platform like Face book and Twitter fan page in order to gain the popularity and high brand value (Managementhelp.org, 2015). Online selling: Since 2005, intent users are being rise from 26% to 57% in UK has been one of the reasons for the online selling of computer, hardware and software (Lindgreen, and Finn, 2010). Apart from the above, it has been found that, another major advertisement avenues for the companies are magazines like tech fare and Tech world would helps the company to gain the large customer base. Competitor analysis Since, there are already more than 15, 000 stores of the computer seller in the UK market, therefore, Modern computers has introduce new form of strategies which will help the company to gain the large customer base (Bottomley and Doyle, 2014). With the help of penetration strategies and free service for one year will be one of the major tactic of the create niche market strategies among the existing competitors. Some of the major computer of the MC would be Jennings , tech extra and masters computers has already been able to capture large market base of computers market in London. Besides that, brand stores like Apple, Lenovo and Acer and HP captive stores are some of the other major competitors for the company. Vendors Market share % Electronic Masters 9.35% Jennings computers services Ltd. 7% Tech extra Ltd 6.24% Creative computing 5.4% PC services 4% Mp media 2.7% Graph 3: Market share of the existing competitors (Source: Bolton and Lemon, 2013) From the above , it has been found that, there is huge gap in the exiting market because of the poor services which is why most of the corporate houses and the medium term enterprise are not purchasing the products from these stores. Besides that, general customer are looking for cheaper price products with long duration that is not been supplied by the existing suppliers (Lindgreen, and Finn, 2010). Although Jennings computer uses economy pricing but company uses Chinese and poor parts to sell their brand that has decreases its market value. Therefore, Modern computer will using the penetration pricing to sell their computer with high quality and free services for 1 year which reduce the gap and increase the high brand value for the company in the long run. Vendors Price () (excluding VAT) Electronic Masters 239 Jennings computers services Ltd. 440 Tech extra Ltd 429 Creative computing 450 PC services 380 Mp media 400 Modern computers 299 From the above , in order to capture the large market base , MC Ltd will be using value pricing in order to supply the right kind of materials to right kind of client or the businesses as per their needs and requirements. Reference list Analoui, F. and Karami, A. (2014) Strategic management in small and medium enterprises - Page 74, London: Thomson learning Dess, G. and Lumpkin, G. (2009) Strategic Management: Creating Competitive Advantages. 6th ed. London: McGraw-Hill Education. Fifeld, P. (2012) Marketing strategy: the difference between marketing and markets. 5th ed. 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