Computer Support Business Plan

The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for I Tech Solutions to make a valuable contribution towards achieving this goal. This will result in the implementation of modern Information Technology (IT) services and techniques, transfer of knowledge, and availability of quality brands.

4.1 Market Segmentation

We will be focusing on proactive, market seeking organizations that want to ensure an efficient and effective IT system that will assist in the realization of their business objectives.

Our target companies are large enough to require the high-quality IT management we offer, but too small to have a separate computer management staff. However, our most important group of potential customers will be business executives in large, medium, and small corporations. These are marketing managers, general managers, sales managers, and other decision makers who often need to access company data and information in their various business decisions. They will not waste their time or money looking for bargain information, questionable expertise, or cheap computers and accessories. Our potential clients will include: (discussion omitted).

Another intention will be to offer an attractive development alternative to the company that is management constrained and unable to address opportunities in new markets and new market segments, due to technological shortfalls.

4.2 Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our products and services’ prices take customers’ budgets into consideration, and that these people appreciate the product/service and know that it exists, including where to find it. One of our intentions will be to target those innovative or proactive companies contemplating transferring a part of their marketing activities on the Internet, in order to benefit from the advantages offered by this unique system of communication. We realize the need to focus our marketing message and our service offerings.

4.2.1 Market Needs

Since our target market is the product and service seeker, the most important market needs are support, service, training, and installation, in that order. One of the key points of our strategy will be the focus on target segments that know and understand these needs and are willing to pay to have them filled. We realize that all personal computer users need support and service. Many of our target customers are going to be those who cannot get good products or services from the major vendors who focus on high volume orders only.

Our target businesses are dependent on reliable information technology. They use the computers for a complete range of functions, beginning with the core administration information such as accounting and record entry, communications, and personal productivity. They are not, however, large enough to have dedicated computer personnel such as the Management Information System (MIS) departments in large businesses.

4.2.2 Market Trends

The most obvious trend in the market is the increasing number of IT firms on the market. This has been true for years, but the trend seems to be accelerating. We see the major brand-name manufacturers being established on the market mainly through agents. Secondly, the computer has become a basic necessity in the office environment and business set-up. The vast improvements in computer power and storage, means that owners are mandated to up-grade or buy new and improved systems, with the former often being much cheaper. A third trend is ever-greater connectivity. Everybody wants to be on the Internet, and every office is looking at having a LAN. However, the major stumbling block for the majority of theses companies is the high cost of installing such networks.

4.3 Service Business Analysis

The following sections provided discussions on who participates in the computer industry, what the competition provides, and what the customer has been purchasing.

4.3.1 Business Participants

We are part of the computer reselling business, which includes several kinds of businesses:

1. Computer Dealers: Storefront computer resellers usually offer a minimum of software, and very little, if any service and support. They are concerned with moving as much stock as possible. Their prices are usually higher than the larger stores.
2. Chain and Computer Stores: They often occupy a large area of space, decent walk-in service, and are often warehouse-like locations where people go to find products in boxes. They often however charge exorbitant prices for their brand products and maintenance service, if they provide any at all.
3. Computer Consultants: These include consultancy companies that mainly specialize in the installation of new systems. Their consultant fees are often very high, especially for small- to medium-sized companies.

4.3.2 Competition and Buying Patterns

The vast majority of proactive, market-oriented businesses understand the value of having an efficient computer system, as well as the concept of service and support. They are much more likely to pay for them when the offering and benefits are clearly stated.

There is no doubt that we will compete more against the box pushers than other service providers. We need to effectively compete against the idea that once a computer is out-dated businesses should buy new ones, when with ongoing service and support, they can be upgraded.

The most important element of general competition, by far, is what it takes to keep clients for repeat business. It is worth making huge concessions in any single service to maintain a client relationship that brings the client back for future services.