Business Plan for an Imaginary Business Plan
- Length: 16 pages
- Sources: 16
- Subject: Business
- Type: Business Plan
- Paper: #43837479
Excerpt from Business Plan :
There are minor differences in prices, quality, and features of these products. Therefore, consumers can choose those products that best match their current needs. In the new market, Technosoft will need to strive hard for building a strong customer base by producing and promoting innovative technology solutions.
v. The Bargaining Power of Suppliers:
The bargaining power of suppliers is strong against new and small scale software manufacturers while very low against top market leaders. Reason being, large scale manufacturers take advantage of their financial strength and make long-term collaborations with the raw material suppliers in a view to get regular and non-stop supply. On the other hand, small manufacturers can neither make strategic collaborations nor make bulk purchases for getting discount on raw material. As a result, the bargaining power of suppliers increases against these small manufacturers.
Section 3: Marketing Plan
3.1: Potential Target Market
Technosoft specializes in operating system designing and development. Therefore, it will enter into the new market with this product and target all individual and corporate consumers. The target market can be segmented on the basis of age groups, individual requirements, and purchasing power parity. The operating system developed by Technosoft will be targeted towards students and professional people who have personal computers, notebooks, and laptops. Therefore, Technosoft will target consumers between 18 to 55 years of age from both the genders. There will be no geographical segmentation for this market as the company will target all the potential locations in one country at the same time (Mu-hlbacher, Dahringer, & Leihs, 2006).
3.2: 4 Ps of Marketing (the Marketing Mix)
The marketing mix consists of four different types of strategies which help the company in presenting its products to its potential target market in the most effective way. These are: product strategies, pricing strategies, promotional strategies, and place or distribution strategies.
i. Product Strategies:
Technosoft will design and develop its operating system by keeping in view the features and advantages of its competitor operating systems, e.g. those developed by Microsoft, Apple, Google, etc. The most important product strategy for Technosoft is to bring something unique and highly innovative in its operating system which is not yet developed or introduced by any of its competitors. Secondly, it will have to ensure that its operating system is equally steadfast and reliable for the target consumers in order to build brand equity in the new target market.
ii. Pricing Strategies:
The pricing strategies will also be made in the light of competitor analysis and demographical patterns in the target market. In order to establish its presence in the shortest possible span of time, Technosoft will not only have to develop a high quality operating system, but also charge a competitive price which can give it attractive returns as well as attract a large number of potential customers. The competitive pricing strategy will help it in beating the competition from top industry rivals.
iii. Promotional Strategies:
Technosoft will promote its operating system on all the major marketing mediums; like electronic media, print media, and internet platform using social media networking sites, search engines, and advertising websites. The most effective promotional medium for this operating system is the company's own websites and the major search engines. It can attract potential consumers by using advertisements and promotional campaigns which communicate the features and advantages of this operating system for the individual and corporate consumers (Canzer, 2006).
iv. Place Strategies:
Technosoft will make its operating system available in all the potential markets in the every target country. The operating system DVDs, complete installation suits, and user guides will be available at stores which sell technology related products and services. The company will also provide an option to the individual and corporate consumers to order the operating system at its own website and make payment through online banking channels. In the initial phase of its business expansion into South Asian markets, Technosoft will only promote its products in big cities and towns. With the passage of time, it will continue to target new markets in small cities.
3.3: CAGE Distance Framework
Technosoft will also have to understand and address the cultural, administrative, geographical, and economic differences between its existing and the newly targeted markets while crafting its business, corporate, and marketing strategies. First of all, it will find huge differences in the social, cultural, and demographical patterns in the South Asian markets; like cultural values, languages, ethnic and social networks, etc. Secondly, there will be different administrative and legal frameworks for business organizations in the new markets. Technosoft will have to follow these frameworks in order to avoid critical issues and negative consequences on its profitability and sustainability (Lancaster & Withey, 2007). The geographic dimensions like time zones, climates, physical distance, etc. will not have any significant impact on the company. On the other hand, economic distances like income levels, poverty level, unemployment, access of the general public to technology markets, and overall economic conditions of the target countries will directly impact its operational and financial performance at large (Paley, 2006).
3.4: Trends and Future Outlook
The Information Technology industry in the South Asian region has been showing an increasing trend for the last few years due to rapid advancements in technological products and services and the entry of large scale software giants in its fastest growing markets like China, Hong Kong, and India. Technosoft can penetrate into this market with its operating system and continue to deliver innovative features in this product and introduce other products with the passage of time (the New York Times, 2011). The company will have to keep an eye on the changing technological trends and consumer requirements in order to move forward in the industry in the most competitive way (Sanders, 2007). It can ensure a sustainable future in the South Asian market if it continues to develop innovative products and compete with its industry rivals with the help of its core competencies and competitive advantages.
Section 4: Organizational Plan
4.1: The Management Team
The Technosoft team in the new region will consists of Board of Directors and the top management that will collectively supervise and direct the whole organizational setup. The team will be headed by the President or CEO of the company in the South Asian region. He will be reported by a team of eight divisional heads; including EVP Operations, EVP Sales and Marketing, EVP Branding, EVP Supply Chain, EVP Financial Officer, EVP HR, Chief Operations Officer, and the Chairman of the company. These team members will be specialized and experienced in their respective fields. In the supervision of these team members, Technosoft will observe a tremendous growth in its South Asian operations.
Director Social Media
Director Diversity Management
Director Supply Chain
Director Brand Management
Director Legal Affairs
Director Design and Development
EVP Supply Chain
EVP, Chief HR Officer
EVP Sales and Marketing
Chief Operating Officer
Chief Financial Officer
President and CEO4.2: Organizational Chart
4.3: The McKinsey 7S Framework for Technosoft
The company's strategy is to establish its presence in the new market by offering innovative and advanced operating system to a large customer base. In addition to high level of profitability, the company also aims to develop a strong brand image in the minds of target consumers. Its strategy is completely aligned with the environmental, economic, demographical, other forces in the new market.
The company will develop a functional team in the new market. The whole organizational setup will be under the supreme supervision of the Board of Directors who will formulate policies and strategies for the organization's short-term and long-term future. The Top management will implement these strategies while the lower level managers and employees will be responsible to accomplish the assigned targets. There will be an effective communication system and coordination between all the departments of the organization so that each and every operational activity can be performed in the most effective and efficient way.
Technosoft will function using the most advanced enterprise resource planning systems like financial management system, strategic human resource management system, customer relationship management system, database management system, etc. These systems will enable its workforce to work more efficiently and help it in achieving cost leadership in the industry.
iv. Shared Values:
Technosoft also recognizes the importance of strong organizational culture for the success and prosperity of its business. Therefore, it will promote strong values and cooperation among its team members and low level workers so that they can work more productively at the workplace. It will institute conflict and diversity management programs in order to avoid issues which are normally observed by MNCs in their international operations (DuBrin, 2009).
The management team will use both transformational and transactional leadership styles to motivate, direct, and lead the organizational members towards one common direction. The managers will use different…