Chapter 1: Background 1.1 Company Introduction Webport Nepal was founded in ….. B.S as a Private Limited Company through the foresight and vision of a well knowledge team. Webport Nepal is a new company on the horizon of business which is constituted being an IT Company. Webport, being an IT company, we believe that technology should work for you. Computer technology exists to make our lives simpler and we translate this belief into our work by designing new and exciting website with database and software that meet our clients’ specific requirements, which are most effective and user friendly. Webport Nepal , a company based servers in Nepal, offers Web Solutions like Website development, Facebook Application development,Website Hosting services, Email Hosting, Software Development Customized software for clients and Network Services like Network Audit, New computer network setup along with server installations, Maintenance services based on Annual Maintenance Contracts and others to combine with your business processes to bring you the building blocks needed for your business to be successful. Webport Nepal is keeping pace with the rapid advancement in
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Transcript
Chapter 1: Background
1.1 Company Introduction
Webport Nepal was founded in ….. B.S as a Private Limited
Company through the foresight and vision of a well knowledge
team. Webport Nepal is a new company on the horizon of
business which is constituted being an IT Company. Webport,
being an IT company, we believe that technology should work
for you. Computer technology exists to make our lives
simpler and we translate this belief into our work by
designing new and exciting website with database and
software that meet our clients’ specific requirements, which
are most effective and user friendly. Webport Nepal , a
company based servers in Nepal, offers Web Solutions like
Software Development Customized software for clients and
Network Services like Network Audit, New computer network
setup along with server installations, Maintenance services
based on Annual Maintenance Contracts and others to combine
with your business processes to bring you the building
blocks needed for your business to be successful. Webport
Nepal is keeping pace with the rapid advancement in
Information Technology by continuously upgrading its skill
set with self learning and related IT training.
1.2 VisionWe lead the world in the field of Information Technology through our knowledge and skill and provide guidance in an innovative way for better future.
Provide an one stop IT solutions to business To be known as reliable, professional and a good
service provider in terms of Web solutions, Software products and Networks solutions.
Be known as a service provider whose services provide value for money for its customers.
1.3 Mission
We generate technically confident and professionally
motivated team to deliver tasks in time. We simplify,
standardize and automate the organizations technically.
Analyze, plan, develop, deploy and maintain are the major
steps for any new product or service we create. Our main
strategy is to combine best people and best equipment, to
create the best technology and product. Everything we do
reflects this mission and the values that make it possible.
1.4 Our Values:
Honesty, Trust, Freedom, Innovation, Integrity, Team spirit
and Fun are some values influence the way we meet client
needs.
1.5 Objectives:
Continuously provide professional quality services on
time and on budget.
Develop a follow-up strategy to gauge performance with
all our clients.
Implement and maintain a quality control system and
assurance policy.
To continuously formalize and measure cross-functional
working communication so as to ensure that the various
departments work harmoniously towards attainment of
company objectives.
To instill a culture of continuous improvement in
beating standards of customer satisfaction and
efficiency.
We are fully committed to supporting growth and
development in the economy.
In alignment with products
Short term goal:o Build their websites, handle their social media
activities, and handle their computer network and emails. Provide software based on their needs
Long term goalo Website: Build various packages (based on price
and functionality) suitable to various target markets
o Software: Build our own products which can be soldto mass market
o Network: Build services which are able to solve the issues of the clients on an efficient and costeffective manner.
1.6 Products and Services:Webport Nepal offers the expertise a proactive oriented andtechnologically inclined company needs to perform itsoperations efficiently and effectively, through allowing itto concentrate on its core activities whilst deploying thelatest communication implements. Its wide range of serviceswill incorporate and embrace Web page designing and Hosting,technology enabled relationship management, technologyenabled marketing, integration services and Knowledge. Hencewe intend to provide a number of necessary services to thebusiness community and general Public as well. These can besummed up in following areas:
Since our company has adopted principal of diversifying our
products to much areas but our highly emphasis will be on
Service Industry which has covered almost market share. The
composition of market share and target market is given as
follows:
a) Service Industry
b) Manufacturing Industry
c) Trading Houses
d) International Market
1.9 Company Location and Facilities:
The company will be located at Nag Pokhari Kathmandu, Nepal
since it is the heart of the city which is centrally located
and many financial, educational, Hospitals, Government
Institutions, and Corporate houses are nearer by the
company’s location. Similarly, our company is situated at
modern building with 24 hours power back up and ample space
for Parking.
Chapter 2: Product and Services
Webport Nepal offers the expertise a proactive oriented and technologically sound wide range of services will incorporate and embrace Web page designing and Hosting, technology enabled relationship management, technology enabled marketing, integration services and Knowledge. The product and services with their remarkable features and prices are shown as follows:
Packages available through Webport Nepal:
Web solutionso Website development: Static as well as dynamic
websites are developed. Static website: A simple 5-6 page website
where the user cannot change the content of the website themselves: Cost: starts from Rs.15000 to Rs. 25000
Dynamic Website: A content management driven software controls all the functions of the
website. The client can change the content ofthe website by themselves. Cost: Starts from Rs. 30000, The most expensive one: Rs 250000 (mayos 3m). on an average: Rs 50000.
o Facebook Application (Social Media marketing) Specific applications based on the marketing
campaign of the client are being developed. Fun games, quizzes and contests are developedas a platform for interaction.
Cost: starts from Rs 30000 uptoRs 80000 (The max we have charged)
o Hosting services We generally host the websites that we have
developed ourselves We also provide them with email hosting
solutions. Cost: is based on space, 100 mb is Rs 3000
per year, 1 Gb is 7000 per year. 5 Gb is 12500 per year.
Softwareo The customized software’s are build according to
the client’s needs. We have so face developed complete MIS system for a Security agency (Accounts, payrole, Employee management, leave management, inventory management). Dealer application for Hyundai, marketing planner for Hyundai. Showroom and inventory management for RB diamond.
o Cost: Starts from Rs 80000 up to 4,00,000. Since the Features keep getting added the cost relatively gets on increasing.
Network Solutionso Complete Annual maintenance support is being
provided where we take care of the web solutions, build customized software and handle all the computer and networking issues.
o Cost: For Computer and networking issues the charges range from Rs 5000 to Rs 30000. For the
web and software we get paid separately as per theassignment.
Chapter 3: Market, Client and Competitors
Market AnalysisWe are today experiencing a rapid growth in the technologyof unsurpassed nature. This has cause many organization toadopt technological based business. The current growth intechnology with the concept of Internet has emerged as thehuge revolution. Currently, Nepal Government is also keepinginformation technology as their priority. Aware of the fact that we will be operating in apredominantly infant market we intend to ensure that ourmarketing strategies are considerate of the importance ofthe fit between our services capabilities and benefits, andthe target market, so as to develop a strong sustainablecompetitive position in the market. As a result we intend toimplement a wide and aggressive marketing strategy.It should be appreciated that entering such a market is nota bed of roses, particularly considering its infancy andhence the intention will be to implement an aggressivemarketing strategy, well supported by the other businessfunctions.
Market SegmentationWe will be focusing on proactive, market seekingorganizations, who want to sell into markets in the region.These are mostly larger companies, and occasionally medium-sized companies.
Our most important group of potential clients is businessexecutives in large, medium and small corporations.Manufacturing, Service, Trading and Foreign Companies aresegmented with their potentials in market. Hence, the needto professionally market our services and business as awhole offering wide range of product and Services for ourclients keeping customer in mind.
Target Market Segment StrategyManufacturing, Service, Trading and Foreign Companies willbe our target market which will be analyzed throughobserving the market potentials. Similarly, EducationalInstitutions, Automobile Companies, Education Consultancies,Hospitals, various offices etc. will be our major targetsector. Our marketing strategy will be based mainly onmaking the right services available to the right targetcustomer. We will ensure that our services' prices take intoconsideration organizations'/peoples' budgets, and thatthese people appreciate the service and know that it exists,including where to find it. The marketing will convey thesense of quality in every picture, every promotion, andevery publication. Our intention will be to target thoseinnovative or proactive companies contemplating transferringa part of their marketing activities on the Internet, inorder to benefit from the advantages offered by this uniquesystem of communication. We realize the need to focus ourmarketing message and our service offerings. We need todevelop our message, communicate it, and make good on it.
Target market – Web:
o Corporate houses (update the existing website, Build new Facebook applications and social media campaigns)
5 cores plus yearly revenue
o Medium sized business (develop new and update existing websites, Build new Facebook applicationsand social media campaigns)
1 to 5 cores revenueo Small sized business (Build new websites, Build
new Facebook applications and social media campaigns)
Below 1 cores revenue Software:
o Corporate Houses :Customized softwareo Small and medium sized business: Readymade
software Networking
o Corporate houses: Complete solutionso small and medium sized business: Specific solution
which meet their specific needs
Market Needs
The current demand of various organizations is to seek fortechnological enabled user friendly products that make workof company or organization much effective and efficient.Market needs has to be analyzed with the period of time asbecause with the dynamic nature of technology we must try tocope with changing technology for sustaining and growth.
Competition and Buying PatternsThe key element in purchase or subscription decisions madeat the company's client level is trust in the professionalreputation and reliability of the firm. The very nature ofour services dictates that occasionally the pricing of ourprojects and billing rates will be variable, as differentclients require different needs to be fulfilled in variableindustry environments.
In our line of business clients rarely compare serviceproviders directly, looking for two, or more, possibleproviders of a proposed project or job. Usually they followword-of-mouth recommendations and either go for the job ornot, rather than selecting from a menu of possibleproviders. The most important element of general competition, by far,is what it takes to keep clients for repeat business. It isworth making concessions in any single service to maintain aclient relationship that brings the client back for futureservices -- realizing customer-lifetime value.
Competitive comparison
Since Webport is an idea of young and energetic team with a core value of providing differentiated and user friendly products. According to market research made on products and services of various competitors company with the cost, we have found that our company’s product is highly diversified,user friendly, low costly and highly reliable. Similarly, our product can fit into any organisation ranging from smallto larger. This sorts of uniqueness will definitely create an edge over other competitors.
Anticipated demand –
o Web Solutions: Website: 3 new websites each month Facebook: 1 Applications each month
o Software Addition of work on the ongoing projects Add 1 new client each month
o Network Solutions Add 5small clients every month Add 1 Medium sized client
Sourcing
Our company manufactures or develops systems in our company but our long term plan is to in source from foreign companies to target large organizations in Nepal. Our onshore and offshore model of working with freelancer will also help to satisfy our clients.
Distribution PatternSince product and services are developed in our own companyso as soon as we get ordered from our clients viasalesperson, third party, clients or else, our MIS willautomatically inform our marketing team and finally they goand bring configuration of client’s desired system. Ifclient want to meet technological team then they will besend to clients and makes clear about the matter. Similarly,after the system is developed then our team will visit toclient and install the applications and make observationover time period with giving training about handling thesystem
Marketing strategy – Website:
o Build Content Management Systems for various sectors like, travel agencies, Jewelry shops, Schools, Restaurants, Products based CMS, Service Based CMS.
o Build templates so that the customer can choose the design he/she likes
o Based on the cost and functionality requirement provide them the website.
Why this works:o This strategy should work because once the
development on the CMS is done we can reuse it forall the new customers we make, thus driving the cost of production to decrease.
o The production time for each individual website decreases.
o Ability to choose from various designs and functionality help the customers to make the decision on what they want quickly.
o Ability to explain that each additional functionality cost extra money.
Facebook (Social Media)o Develop applications based on the marketing
campaigns of the clientso Develop a facebook management consoleo Develop Applications which can be used by various
clientsWhy this works
o Clients want interaction with their customers, thus the ability to come up with an application which suits their marketing strategy is just what they want right now.
o Many organization big and small have opened facebook pages but are not able to manage their pages properly due to lack of knowledge and time. Thus facebook management console provides a summary of the activities taken place, it providesthe ability to reply and track the interactions.
o Many clients want to do the same things, for example photo contest, we develop an application for photo contest which can be used by many clients. This reduces cost for the client comparedto making an application for themselves only.
Software:
Build our own products:
Why this works:o Customized software can only be afforded by big
corporate houses
o The foreign software’s are very expensive, during installation and maintenance
o Lots of complaints regarding the quality of service provided by local software companies
o We already have 3-4 customized software which can be developed into readymade software.
o Ability to convert these software’s will ableus to sell those to the customers at a reasonable cost
o Having an inhouse support team (network team)enables us to provide quick and effective support.
Networking:
Provide complete solutions:
Why this works:Corporate houses do not have an IT department which has knowledge on web services, software and computer networking. Thus it is wise for them to outsource the IT department to us who provides all the services. Doing so is cost effective for the client.
Build Specific Solutions:Why this works:
Clients are reluctant to spend on the maintenance services regularly, they have a tendency to spend only when there is a problem.
They don’t understand that formatting the computer is the solution.
Thus, our products will cater to all the specifics needs that they have like:
one time visit services one a month visit services Email services Basic: Virus cleaning solutions, software update,
files backup. Etc
Choosing from the specific packages helps the customer lower the cost and still get the service they want. It will also help us make them understand that have a regular maintenance service increases the productivity and efficiency of the company.
Industrial Analysis:
The history of Nepalease IT industry is not so long. Afterthe government taking liberalization policy in 1992, therecan be seen sustainable growth in IT sector. Mercantilecompany with the collaboration of RONAST introduced internetservice in Nepal. There after gradually, different privatecompanies came into existence and they are operating inlocal as well as foreign market. Today there are almost 280software companies operating in Nepal but many top classcompanies are opened as subsidiary company of foreigncompany so their market is generally for foreigninstitutions. Here are information about the some operatingTop class Competitors which are given as follows:
1) D2Hawkeye Services:
It is the subsidiary company of Veris Health,Inc., USA.
It is established in 2000 A.D. It has been involved in developing qualitative
software application for veris health. It develops software for following industries in
USA: Healthcare Property and casualty Mortgage.
It is certified by SEI and ISO Carnegie MellonUSA. They have been taking internee for furtherplacement. They fully provide services to its parentcompany. Focuses on quality and satisfied employees. 300 staff members Office is located at Hattisar. Marketing approach: a) Direct orders comes from parentcompany.
2) LinkTree:
Main function is to outsource product andservices.
It focuses on client relationship Believes in reengineering. Partners: -ICTC group -Global Plus Network Office is situated at Thaiba. Marketing Strategies: - Customer support service. -Customer interaction servicesthrough which huge flexibility is given to thecustomer. Cutting down the transactional cost.Increasing efficiency. -Telemarketing service. -IT helps desk service.
3) Global Plus:
A complete IT solution provider providinginternet, software solution and web solution
Marketing Strategy: -Customer relationship management. -Applying for foreign tender orders. -Depends upon its partner company
4) NEPASOFT:
It is USA based company providing services throughIndia and Nepal with opening subsidiarycompany.
Very effective team and believes in research anddevelopment
Well equipped infrastructure such as highlyskilled manpower and better working condition.
They develop and outsource system They have focused on following sectors:
DOCBLITZ PIGEON Remitron
It has targeted following sectors: Telecommunication:
NTC UTL
Financial:Nabil BankHimalayan BankBank Of Kathmandu etc.
Government: Home Ministry Ministry of finance Nepal police etc.
Its partners are: Niche JAPAL
Marketing Strategy: a) Outsourcing as per order. b) Mobilizes marketing team c) Personal building relationship.
5) Yomari:
Established in 1996 A.D Skilled manpower Operations in USA and South Asia Highly satisfied customer Located at Ekantakuna Clients are:
The World Bank UNDP NEA Government of Nepal UNICEF Soltee group
Marketing Approach a) Outsourcing as per order.
b) Mobilizes marketing team c) Personal building relationship.
6) DeerWalk:
a) Company with USA based team.b) Located at Sifal.c) Low cost with higher quality with speed delivery.d) Marketing Strategy:
a) Outsourcing as per order. b) Mobilizes marketing team c) Personal building relationship.
7) WorldLink:
Located at Pulchowk Better customer relationship management. Offshore development and unshore development.
Clients:Government and large Private companies
Marketing strategy: a) Outsourcing as per order.
b) Mobilizes marketing team c) Personal building relationship.
Market Positioning:
Our company’s Positioning statement is “Makes you believeworld can come to your hands”. Webport Nepal intends to beuniquely positioned to help customers apply communicationand information technology products and skills to meet thechallenges facing their businesses today. Our competitiveedge will be our dominance of the market as resourcefulentrants, customer orientation and traditional hard work.Though our clients might range from large corporations tomedium or even small businesses, what is important to theclient irrespective of the size or industry is totalsatisfaction with the end product matched to theircapabilities and resources. Position the business as acompany which can provide solutions to high-end, competitive
and a low-cost alternative to those offered by yourcompetitors. We want to provide choices to our customers andthey should be able to receive good service.
Marketing Strategy:
One core element of our strategy will be that ofdifferentiation from our competitors. In terms of marketing,we intend to sell our company as a differentiated strategically, not just our services. In price, we intend to offerreasonable and competitive prices in comparison tocompetition and we need to be able to sustain that. Marketpenetration through lower prices shall be undertaken whereneed be whilst premium pricing in the case of high qualityservices targeted at the upper-end of the market. Ourservice marketing will strive to ensure that we establishlong-term relationships with clients. Our primary intentionwill be to sell a relationship more than services.
Value to customer –o Website: (in between luxury and necessity) Is a
must have because everyone has a website. With theregards to functionality and making it interactivethe clients are not too concerned. So the price quoted needs to justify the purpose of them havinga website.
o Facebook Application: (Necessity) A must have because it is the most happening thing in the world. Ability to interact with the customers makes impact measurement a lot easier.
o Software:(in between luxury and necessity) The customized software help them reduce the time taken to complete the task, proper record keeping and report generation make it a must have for them. The cost is justified by the result of effective seen in the working process and outcome.
o Network Solutions: (necessity) Outsourcing the complete IT department is highly cost effective
and the value is also very high as they receive overall support for a reasonable cost.
4p’s of Market is explained as below:
Pricing Strategy
Webport Nepal will be competitively priced in relation tothe dictates of the market. The pricing fits with thegeneral positioning of Webport Nepal as providing high-levelquality service and expertise. Due to the introductorynature of the vast majority of our services we intend toimplement a penetration pricing strategy which will ensurethat potential clients are not frightened away by our pricesup until our services are appreciated and fully operational.The fee will be worked out in such a way that it covers foroperations. Pricing strategy –
o Websites: Come up with various packages based on functionality so that the customer can choose froma price range.
Cost: start from 10000, 15000, 20000, 25000, 35000, 50000, 70000 and above
o Facebook (Social Media marketing) Maintain the starting price of Rs 30000 and
above. The customers are willing to explore and send more on this platform.
o Software: Customised software: Based on the time and
expertise taken to complete the project Readymade: Start from 15000 and above. Make
software which are resalable to many customers.
o Network Solutions Complete IT solution: Charge based on the
number of computers and support time and expertise that is required.
Specific Package: Start from 1500 and above. Get an entry point in the business and try tobuild more revenue from the company.
Products and Services:
Webport Nepal offers the expertise a proactive oriented andtechnologically sound wide range of services willincorporate and embrace Web page designing and Hosting,technology enabled relationship management, technologyenabled marketing, integration services and Knowledge. Thesecan be summed up in following areas:
Web page designing and hosting Domain registration Software solution Mobile Applications Development Out sourcing Technological enabled Internet marketing Networking services Online News Portal IT Training
Place:
The company will be located at New Baneshwor Kathmandu,
Nepal since it is the heart of the city which is centrally
located and Many financial, educational, Hospitals,
Government Institutions, and Corporate houses are nearer by
the company’s location. Similarly, our company is situated
at modern building with 24 hours power back up, presence of
lifts, and huge space for Parking.
Promotion Strategy
Webport intends to utilize an aggressive promotional
campaign to introduce its business units to the market. The
intention will be to take advantage of several media sources
in announcing the services and in the process reinforcing
awareness of its existence. It should be stressed that these
promotional campaigns shall be designed in such a way that
they do not undermine the organization's current corporate
image but instead enhance it.
Our promotional activities shall be focused towards driving
the organization's overall strategy relentlessly,
developing internal consistency and preparing it to
confront any radical changes that may arise. This strategy
will be based primarily on informing potential customers of
the existence of our services and making the right
information available to our target customer.
We intend to spread the word about our business through the
following:
1. Advertising through FM stations, Daily newspaper like:
Kantipur, THT and Nagarik and Holding or Bill Boards
2. Personal Selling through sending salesperson to respected
segmented areas
3. Public Relations through keeping relation with other
organizations including other local IT companies
4. Events through Trade fairs, exhibitions
5. Internet and Telemarketing
6. Third party commission agreement through giving 30%
commission to third party which will bring order for us.
In all the above we intend to communicate our ability to
deliver a service of uncompromised nature and high quality
that will satisfy the client’s needs. Hence our messages
will influence the decisions of prospective clients by
prospective clients that we are different from our
competitors. All the above promotional tools shall be well
integrated and utilized in concert so as to maximize their
effect.
Competitive Strategy
1) Internal Resources:
Better infrastructure like: Continuous flow of
power, internet.
Recruit technical staff with calling them as
internee in long run
Innovative and updated product and services
Outsourcing product from abroad
Business reengineering
Focuses on total quality management
Has to make affiliation with foreign partners
like: Microsoft for creating reliable
environment in the market.
Very effective research and development team.
2) Marketing strategy approach:
Customer support services.
Telemarketing
Customer interaction services (online).
Better customer relationship management.
Applying for orders for tenders.
Mobilizing marketing team.
Orders through personal relationship.
Various promotional activities like
demonstration, direct selling, advertisement,
online purchasing facility.
Market Penetrating strategy in short term
Focus on High quality and huge customer
satisfaction.
Chapter: 4 Business management and Organisation
The organization structure the business units shall takewill be that of a management by Objective(MBO) structurewhere staff and manager together works with healthy co-ordination for attainment of organizational goal. In a
highly volatile environment, with increased competition andmarket entry, we recognize the need to be constantlychanging so as to adapt to the prevailing environment. Hencewe intend to have in place a highly flexible structureallowing for the above to be undertaken swiftly and smoothlyThe following main functional groupings are to berecommended:
Sales & Marketing Administration Customer Service Finance HR Department Research and Development Production Department
Profile of Management Team
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Organizational Structure:
CEO
COO
Research &Development
Chapter 5: Legal Framework, and Environmental factor
Company Ownership and Legal Plans:
The company is a private limited company with single
shareholder in nature owned by Mr. David Pradhan. The
following legal provisions were strictly maintained before
operating Business:
Name of the Business: Webport Nepal Pvt. Ltd.
Nature of Business: IT Company
Location: Nag Pokhari, Kathmandu
Amount of Capital: Rs.
Registration of the Company:
IT
DEPARMENT (IT HEAD)
MARKETINGDEPARTMENT(MARKETINGMANAGER)
PROGRAMERS DESIGNER MARKETING OFFICER
MARKETEXECUTIVES
HRMANAGER
Company was registered at Office of Register,
Ministry of Commerce, and Department of Revenue for
VAT and PAN.
Total capital structure was showed to Rs.
Tax Revenue: 25%
VAT: 13%
Webport Nepal for the Society:
Webport Nepal as carrying with the value of serving Society,its our good fortune that we have been fulfilling its socialresponsibility even before we are thinking to be actuallyinstitutionalized as highly established Institution. As anEnterprise, it will be conducting lots of activities in thefield of health, education and fulfilling Human needs.Webport Social Policy is committed to operate and conductall its business activities in a socially andenvironmentally responsible manner. We understand theimportance of good relationship with all its employees,customers, partners and the community at large andprioritize its initiatives towards sustainable developmentfocusing on areas within its local spheres of influence. ForSocial cause, our policy is to allocate Rs.100 from each ofthe product sale.
Environmental Risk:
Since environmental factor is very important that is to be
considered before and after starting business because
business is done in dynamic environment so political,
Economical, Social and Legal environment has to be analyzed
and considered strictly for ensuring smooth operation of
business. Therefore, SWOT analysis is done below to
understand market.
SWOT ANALYSIS
Strengths:
A new, innovative product or service. Location of Business. Quality processes and procedures. Other aspect of our business that adds value to our
product or services. Qualitative and Diversifies product in reasonable cost Strong and qualified team members
Weaknesses:
Lack of marketing expertise. Lack of qualified manpower. Undifferentiated products or services (i.e. in relation
to our competitors). Highly depends upon the advertisement. Employee turnover rate would be problematic situation
for company.
Opportunities:
A developing market such as the Internet and e-commerce Moving into new market segments that offer improved
profits. People getting lots of information about IT and its
uses. Trends on advertising on portal sites by service
seekers. Market Penetration strategy would give a Competitive
edge to the Company.
Foreign country in sourcing our local made Software andApplications.
Threats:
The biggest threat for all web-based organization iscompetition. Huge profits attract investors, innovatorsand entrepreneurs.
Price wars with competitors. Competitors have superior access to channels of
distribution. Established huge competitors.
Strategies to counteract these threats converting intoopportunities:
Customer support services and Customer interactionservices has to be done in order to give propercustomer care.
Telemarketing and online marketing has to be carriedout by the Marketing department for further promotionof company
Has to give more emphasis on customer relationshipmanagement as customer retention strategy is lesscostly and effective than to acquire new customer
Company has to apply for national tenders in short runwhile international in long run.
Effective and result oriented marketing team has to bemobilized
Personal relationship is the easiest and resultoriented task so it has to be given more emphasis
Since company is in initial phase therefore marketpenetration strategy is very important to enter intothe competitive environment. In short run, Cost of theproducts has to be less than competitors.
Even with market penetration strategy, company shouldconsider customer satisfaction with excellent serviceand quality.
Chapter 6: Financial Planning
We want to finance growth mainly through cash flow. Werecognize that this means we will have to grow more slowlythan we might like.The most important factor in our case is collection days. Wecan't give credits to our clients hard on collection days,because allowing credit would create problem on operation onnewly opened company like ours so we don’t follow system ofreceivables financing. The revenue Source for the company isthrough Web page designing and Software development andnetwork management in the initial stage. Compatibility inthis regard means:
A fundamental respect for giving our customers value,and for maintaining a healthy and congenial workplace.
Respect for realistic forecasts, and conservative cashflow and financial management.
Cash flow as first priority, growth second, profitsthird.
Willingness to follow the project objectives andcontribute valuable input to strategy andimplementation decisions.
With sufficient working capital the forecasted revenues andsales should be within the forecasted market demands for thecompany's services. From the second yearly time, the various
divisions should be able to bring in adequate salesrevenues. 7.1 Important AssumptionsThe financial plan depends on important assumptions. Fromthe beginning, we recognize that getting order for webpagedesigning, software development and network management arecritical, but we will overcome the situation easily. Atleast we can have better planning on the problem and dealingwith it. Some of the more important underlying assumptions are:
No system of Account Receivables Sales increasing with …% each period Growth and profit simultaneously No loss at initial period of time Diversifying on investment on different product lines Continuous Cash flow Scenario for better rate of return We assume a healthy economy, without major Political
setbacks. Reliable and cost effective services Relationship management