Business Plan Of Computer Business

Executive Summary

Describe about the Business Plan of Computer Business?

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, competitor’s analysis will give the current strategies of the competitors which will help to bridge the gap for the current company. 

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.

-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 software’s by double within 3^rd year

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 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)

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).

Description of the organization (Modern Computers)

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 software’s 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.

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.

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.

 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. 6^th ed. London: McGraw-Hill Education.

Fifeld, P. (2012) Marketing strategy: the difference between marketing and markets. 5^th ed. Oxford: Elsevier.

Freeman, R. E. (2010) Strategic Management: A Stakeholder Approach. 5^th ed. London: Prentice Hall.

Furnell, S. and Moore, L. (2014). Security literacy: the missing link in today’s online society?. Computer Fraud & Security, 2014(5), pp.12-18.

Lubbe, E., Mentz, E. and Kroon, J. (2014). The Impact of the Integration of Literacy Tasks on the Literacy Test Results of Computer Applications Technology Learners. Mediterranean Journal of Social Sciences.

Massey, C. and Gambrell, L. (2014). Measuring Students’ Writing Ability on a Computer-Analytic Development Scale: Orchestrating the Dance Between Technology and the Teacher. Literacy Research and Instruction, 53(2), pp.101-103.

Bolton, R. N. and Lemon, K. N. (2013) A dynamic model of customers’ usage of services: Usage as an antecedent and consequence of satisfaction. Journal of Marketing Research, 36, 171–186.

Bottomley, P. A. and Doyle, J. R. (2014) The formation of attitudes towards brand extensions: testing and generalising Aaker and Keller’s model. International Journal of Research in Marketing, 13, 4, pp. 365–377

Lim, S. C. and Lusch, R. F. (2011) Sales margin and margin capitalization rates: linking marketing activities to shareholder value. Journal of the Academy of Marketing Science, 39:5, 647-663

Lindgreen, A. & Finn, W., (2010) Value in business markets: What do we know? Where are we going? Industrial Marketing Management. 34, pp.732- 748.

Managementhelp.org, (2015). Total Quality Management (TQM). [online] Available at: https://managementhelp.org/quality/total-quality-management.htm [Accessed 14 Jan. 2015]