Cliq-Up
Internet has now become a new frontier in regards to economic development. With the advent of the internet, new and seemingly boundless technologies have arisen. Aspects such as routine transactions at financial institutions to online dating sites have now entered into the forefront. Technology overall has enhanced the overall quality of life for civilization while also providing economic growth. It is during this expansionary period that many innovative and profitable technologies arise. CliqUp is no different in this regard. With the advent of the internet, the need for synthesis and analytics becomes very profound. As such, CliqUp has very unique value proposition for both businesses and consumers as the technology frontier continues to evolve. Using analytical data, CliqUp can provide enhanced value to businesses in terms of targets ads, customer demographics, and other analytical tools. All of which, adds value to the institution of firm who properly utilizes the technology.
As is the case with many smaller, less established companies, funding can become a very contentious issue. With many internet companies, an established network must first be created in order to return recurring value to the owners. Google had to first create a network of primary users. Facebook needed to create a network of profiles. IBM needed to create a network of companies utilizing its data storage capabilities. In each instance, the company may have incurred financial losses in an effort to create a sustainable and viable network of users. Such is the case with CliqUp. The company's main source of competitive strength is in its ability to produce quality customer research at a fraction of the cost of other providers. However, this strategy is very difficult to do in the midst of a very competitive business environment. For one, CliqUp does not have the financial resources in which to sustain being a low cost producer. IBM for instance, also operates in the same field as CliqUp. If CliqUp becomes too much of a threat, IBM could simply lower its pricing even lower than CliqUp and wait for the company to become insolvent. Wal-Mart has received much negative press for this strategy of simply lowering prices to defeat competition. However, as CliqUp is a very small firm, the likelihood of survival when competing against larger, more established companies, is very difficult.
As such, the best option for CliqUp, if it is to maintain its current pricing strategy, is that of a corporation. In this capacity, CliqUp has access to funding through the capital markets. By becoming a publically traded corporation, public funds can be used to help bolster the financial position of the company. In addition, by being a public company, the firm can attract top level manager to sit of various board positions. This allows the company to remain relevant within the overall financial community while also having the leadership ability to effectively compete with larger firms. In addition, top management and board positions also provide contacts and connections that will prove invaluable to the organization overall. These concepts are very important as they directly impact the company's survival (Business, 2008).
A negative aspect of such a structure is the lack of control for the founder members of the organization. As a public company, the original owners may be force to conduct activities that go against their personal desires. For instances, shareholders may elect to pay a dividend when the money is better served by being retained in the business. Shareholders may decide that a new chairman should be in place, when the current chairmen are better for the future growth of the business. The stock will also be subject to the natural vicissitudes of the market. As such, the company could lose a material amount of market capitalization by nothing more than rumors in the market. This can cause large disparities between the market price of CliqUp stock, the actual value of the stock.
In regards to choosing a facility location, the company should use a very distinct set of criteria. First, when analyzing...
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