Web Applications, Inc.

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Online Services Business Plan

Strategy and Implementation Summary

We intend to become the leader and most creative provider of Web-based business management applications on the market. We aim to create a user-friendly application that will be an integral component in any personal or business environment. We will do this by developing an innovative and progressive development and management team. We will also accomplish our goal by using customer input to further develop our products and services.

We will leverage this new product in the computer software industry to dominate the growing Web-based applications market, especially the small businesses. We have a premium, value-added product with three different packages from which the user can choose the one that best suits their needs. These strategic product lines will enable domination of the target market. The products all share the core applications but differ in range of services.

As a company, we feel that there are a number of opportunities we can capitalize on and they include:

Small Businesses

  • Better communication. Businesses will be able to set up meetings without incurring travel costs. Our products break down the walls that are created by the distance separating team or group members.
  • Alternative for office network. With our product and its applications, there will be no need for businesses to set up office networks or purchase additional hardware.
  • Cost effective. It is cost effective in that only a monthly fee is required, as opposed to huge amounts of money for set up costs and servers.

Corporate

  • Setting up on main branch office. We will help companies to set up the system and ease the transition with no delay in ordering equipment and daily operations.
  • Control sales team activities. Our product will give those in the sales department the ability to get quick approvals and close deals faster. 
  • No laptop needed. All user information will be placed online and kept in various departments. This will eliminate the need to carry laptops when traveling, thus reducing the chance of laptop theft, which is high in airports.

Individuals

  • Eliminate need for multiple software packages. All applications needed are in one place and more can be added per user request, thus eliminating the need of purchasing individual software packages.
  • Portable personal information manager (PIM). Even as you travel, your own PIM on the server will be at work taking messages and putting them in the desired folders. The PIM becomes a personal secretary keeping you informed of special events.
  • No laptop needed. All user information will be placed online and kept in various departments. This will eliminate the need to carry laptops when traveling, thus reducing the chance of laptop theft, which is high in airports.

We will outsource all sales operations to a company to be named.

5.1 Sales Forecast

We are confident that our Online Office Manager will be eagerly embraced by mobile computer using businesses and e-commerce businesses.  We are forecasting a 10-fold revenue increase over the years covered in this plan, as shown in the table and charts below.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Online Office Manager $200,000 $1,500,000 $2,200,000
Other $0 $0 $0
Total Sales $200,000 $1,500,000 $2,200,000
Direct Cost of Sales Year 1 Year 2 Year 3
Online Office Manager $100,000 $300,000 $400,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $100,000 $300,000 $400,000

5.2 Marketing Strategy

We will outsource all marketing operations to Dynamic Communication Solutions because we feel that they have stability and marketing channels that will be effective for our product.

The message associated with our product is value-added applications. Dynamic Communication Solutions has identified a brief promotional plan that is diverse and will include a range of marketing communications including the few listed below.

  • Internet.
  • Public relations.
  • Trade shows.
  • Industry conferences and seminars.
  • Print advertising. Dynamic Communication Solutions will follow a print advertising program in publications such as Creative Loafing, Belleview Business Chronicle, and the Buckhead Local Paper. Shown below is a breakdown of the various publications.
CirculationTarget AudienceSpaceCostEst. Sales
Creative Loafing750,000Individuals.5 page$5,000$200,000
Belleview Business Chronicle1 millionBusinesses.5 page$10,000$250,000
Buckhead Local Paper750,000Businesses.5 page$10,000$250,000

5.3 Pricing Strategy

We plan to set our pricing based on competitors' pricing. Prices will also be based on market prices for similar off-the-shelf products. The automatic upgrade and product enhancement features do not affect the price of any of the services. The figure below shows our tentative pricing schedule, these are monthly rates. We will work in conjunction with Dynamic Communication Solutions to come up with a working pricing schedule. Users will have three payment options:

  • Monthly.
  • Six-month payment.
  • Yearly.

GoldSilverBronze
$29.95$25.95$12.95

5.4 Value Proposition

Web Applications offers the following value propositions for customers.

  • Collaboration. Users can work on the same document at the same time from different locations. Both will be able to edit the document and work on the cosmetics simultaneously. This collaboration ability eliminates the need to send the same document back and forth, saving time for both users.
  • Communication. Applications allow all users to keep in touch in real time and make any necessary business decisions there and then without holding down the other party involved. Communication can be through several different applications that are offered. This allows for rapid decision-making, helping managers and sales teams make and close deals with greater ease. This will also help speed up the approval process when placing orders.
  • Document management. This product allows documents to be stored, viewed, and searched at any given time. Users can create and arrange folders in a manner that will make it easy to retrieve documents. Basically, they have the ability to create their own filing system online.
  • Information sharing. With features such as online chat, information can be shared quickly and easily. In the event that sensitive information is being shared, users do not have to worry because security measures have been taken to safeguard all information from outsiders.
  • Personal virtual office. With each personal office space, users will have the ability to keep track of all daily tasks. Users have access to their office at anytime, from anywhere.

5.5 Strategic Alliances

The company plans to form strategic alliances with Dynamic Communication Solutions, For Sale By Internet, and a sales company to be announced. The company may develop research alliances to further refine the product and adapt it to new markets in different industries. Below is an explanation of key relationships:

  • Dynamic Communication Solutions. This is a company with over ten years of experience in marketing and marketing management. We will outsource all marketing operations to Dynamic Communication Solutions because we feel that they have stability and marketing channels that will be effective for our product. This relationship will eliminate the need to develop our own marketing team. 
  • For Sale By Internet. This company develops and manages company websites on a contract basis. The company is located in Kirkland, Washington and boasts a Webmaster with over seven years experience in the field. We will benefit from this relationship by having an experienced company handle all design and website management. Also, this will allow us to focus on developing applications for other industries.  
  • Sales. We will outsource all sales operations to a company to be named later.