Strengths: national image, high volume, aggressive pricing, economies of scale. Weaknesses: lack of product, service and support knowledge, lack of personal attention. Opportunities: skilled personnels, wide scope of market and a variety of products. Threats: decentralisation of their services in the city, poor means of communication. The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. Value Chain Analysis The primary value chain activities of Focus HighTech.
Com are: • The Inbound Logistics: the receiving and warehousing of finished products, and their distribution to subsidiaries/clients as they are required. • Operations: the processes of transforming inputs/ideas/skills into finished products and services. • Outbound Logistics: the warehousing and distribution of finished goods. • Marketing/Sales: the identification of clients needs and the generation of sales. • Service: the provision of support of customers after the products and services are sold to them.
The primary activities are supported by these secondary activities to help achieve the firm’s goals: • The infrastructure of the firm: the unique organizational structure, control systems, company culture are key to success of Focus HighTech. Com. • Human resource management: this involve employees’ recruiting, hiring, training, development, and compensation. • Technology development: technologies to support value-creating activities. • Procurement: purchasing inputs such as materials, supplies, and equipment.
The firm’s margin or profit highly depends on its effectiveness in performing these activities efficiently, and effectively, so that the amount that the customer is willing to pay for the products exceeds the cost of the activities in the value chain. It is in these activities that a firm has the opportunity to generate superior value. A competitive advantage for Focus HighTech. Com may be achieved by reconfiguring the value chain to provide lower cost or better differentiation. Technology Focus HighTech.
Com have for years supported both Windows and Macintosh technology for CPUs, though the company switched vendors many times for the Windows, and previously DOS lines. The company is now also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products in the market. Future Products and Services The company has vowed to remain on top of the new technologies, since this is its bread and butter. For networking, Focus HighTech. Com need to provide better knowledge of cross platform technologies.
Moreover, the company is under pressure to improve its understanding of direct-connect internet and related communications. Besides the company having a good command of desktop publishing, its also concerned about getting better at the integration of technologies that creates fax, copier, printer, and voice mail as part of the computer system. 4. 0. Market Analysis Summary Focus HighTech. Com usually focus on local markets, small business and home office. Focus HighTech. Com has always adopted a fairly intently focused market strategy. This should has been done through:
a) A logical segmentation breaks the market down into: i) Home Office Businesses ii) Small Businesses, Medium Businesses and iii) Large Businesses. Descriptions are provided below. b) The largest and most logical target markets for Focus HighTech. Com has always been the Home Office and Small Businesses. These businesses mostly have a need for temporary technical aid, usually billed at an hourly rate. c) There has been a fair number of competitors in the local market area, they seem to be widely specialized and widely sized, leaving ample opportunity for Focus HighTech.
Com to create and expand a niche in the chosen market segments. d) The growth trend for this market, projected at around 9 to 10 percent annually through the beginning of the next year. Target Market Segment Strategy Six market segments have been suggested for expansion target points: • Businesses which are not using computers • The Small entrepreneurial businesses using one or more computers • Small to medium sized corps using computers on networks • Large corps that are seeking problem-solving assistance with specific projects
• Government agencies, companies and NGOs in search of computer training • Businesses which are in search of custom computer programming services For efficiency in its expansion activities Focus HighTech. Com will focus on the top market segments only, which is an intently focused marketing strategy. Market Segmentation The chart and table below shows reflection of the market segmentation for Focus HighTech. Com business. The size and growth numbers are based on US Census data for the local region.
• Home Office Businesses – This is the largest and fastest growing segment, this segment is obviously defined as small businesses that are based primarily out of the owner’s home. T • Small Businesses – Defined by the government as businesses with 1 to 99 employees, this is the second largest and fastest growing segment in New York City. • Medium Businesses – 100 to 499 employees. • Large Businesses – 500 or more employees. • Market Trends The three main primary market trends seem to be most important in this industry include:
a) Most important. The rapid growth in technology, need for continuous upgrades in both hardware and software. b) Moderately important. The predicted continued growth in consulting and outsourcing , since most companies are unwilling to pay fixed costs of salaries, choosing instead to treat computer upgrades and repair as variable costs. c) Least important. The rapid growth in ratio of SOHO businesses to traditional medium sized businesses. These trends have been predicted by industry experts to continue well into the next year.