Market Analysis Summary
Emerging companies will be the target market for several reasons:
- They are in need of HR services as they are growing rapidly.
- They often do not have a large enough in-house solution as they are increasing in size.
- Capital is a scarce resource for emerging companies so the ability to accept stock options in replace of cash is appealing.
The emerging company market can be further broken down into two categories, technology and non-technology. The significance of the breakdown is not that significant because many of the networking activities are occurring in settings that do not differentiate between technology and non-technology.
4.1 Market Segmentation
Human Capital Maximizers market can be segmented into two different groups, emerging high-tech companies and emerging non-high tech companies. The emerging high-tech companies are going to be the larger of the two segments. Even with the Internet bubble bursting within the last year, there are still many different emerging high-tech companies proliferating. This is evidenced by the Business Journal of Portland which in their annual list of fastest growing companies for this year, 18 of the top 25 were technology companies.
There are also non-technology companies that are emerging in the Portland area and Human Capital Maximizers will be able to serve them as well.
4.2 Target Market Segment Strategy
Human Capital Maximizers' two markets will be primarily targeted through networking activities. Some networking will be conducted through the Oregon Entrepreneur Association, an association that supports entrepreneurial ventures in the local area. This organization has monthly meetings that are in round-table format, allowing members to socialize.
Human Capital Maximizers will also be networking from personal/professional contacts that Major has developed professionally in the last five years in the HR/start-up industry. HCM will also be relying on word of mouth to grow its customer base.