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Compton Geotechnical Associates

Strategy and Implementation Summary

Compton Geotechnical Associates’ business strategy is to enter into a limited geographical area where it can leverage its staff’s existing collective reputation into long-term contracts centered on employee service and cost effectiveness. We believe that we can service this limited market better than larger firms and we have better service packages at a more reasonable cost than existing competitors of equal size.

5.1 Marketing Strategy

In order to attract clients, CGA will begin to contact promising organizations and offer free consultations, and an initial contract at reduced prices. These promotions will allow us to begin to make our reputation. In addition, Mr. Compton and Ms. Bathory will be traveling to six conventions across the eastern part of the country during the first year of operations where we will have booths to advertise our services. Finally we will be setting up cold calls to potential clients and have half- and full-page advertisements in various publications that address our clients needs.

5.2 Sales Strategy

CGA’s management will be focusing on leveraging its extensive contacts in its various market segments to generate contracts. In October of 2002 the Wiscasset Utility district announced it was accepting bids for a new long-term geotechnical contract focusing on groundwater and soil studies. CGA’s founder Mr. Martin Compton has been aggressively pursuing this contact and based on recent events, it is likely that our firm will win the bid, to be announced in February 2003. This will generate both much needed revenue, and if successful, will generate the reputation CGA needs for further contracts. In addition, Mr. Gillen will be pursuing a number of other open-ended contracts through his contacts with real estate companies. At the current time, Amherst County has entered into negotiations with CGA for its Coastal Processes Studies Project (CPSP), which is expected to have a project life of five years.

5.2.1 Sales Forecast

Sales are based on the various contract projects we anticipate acquiring in the various market segments. Revenues are based on average costs per project based on estimated time and complexity of project plus and undisclosed profit margin. The company does not have any significant direct costs of sales.

Sbp, engineering business plan, strategy and implementation summary chart image

Sbp, engineering business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Local and state governments $93,000 $145,000 $224,000
Real estate companies $33,000 $56,000 $98,000
Construction companies $69,000 $110,000 $93,000
Utility companies $68,000 $85,000 $90,000
Other projects $36,000 $45,000 $45,000
Total Sales $299,000 $441,000 $550,000
Direct Cost of Sales Year 1 Year 2 Year 3
Row 1 $1,200 $0 $0
Other $1,200 $0 $0
Subtotal Direct Cost of Sales $2,400 $0 $0