Web Solutions, Inc.
Strategy and Implementation Summary
The Web Solutions strategy is to achieve name recognition and attract customers by aggressively pricing its services. Once customers have been acquired, the company will seek to offer them additional services which will increase margins and provide them with useful solutions they would not otherwise find.
The company will also implement a low-cost strategy. This will be achieved by working to establish and develop agreements with local media companies to exchange services for discounted advertising and other exposures. Web Solutions’ market strategy is to build on its core portfolio of products and services using the company’s expertise in the ISP industry.
The company will leverage its discounted services to help provide secondary income streams. For instance, the company plans to launch free email services, business directories, and other similar services which will attract current and potential customers to our Web pages. These “page views” will be used to generate advertising revenue, as well as increase exposure of our own products and services.
Web Solutions will be able to excel in the market because the company is small, highly focused, and motivated. The company can respond quickly to changing opportunities and take advantage of the latest technologies.
The company plans to expand its marketing efforts, service offerings, and production. It is anticipated that additional services will be offered and more personnel hired within 30 days of initial capital funding. Web Solutions plans to capitalize on the following areas of growth:
- High-speed Internet connectivity via DSL, Wireless, and other technologies.
- Web hosting and design tailored to small, local businesses.
- E-commerce and associated online databases.
5.1 Competitive Edge
Web Solutions is currently the lowest-priced provider in Phoenix for most commercial services, and its reputation has been consistently high. Size gives the company a competitive advantage, in that it can see where the industry is going and move in that direction more quickly than the competition. This also allows the company to be more efficient at recruiting and hiring highly creative and talented individuals who tend to shy away from large “corporate” environments. The company has worked to overcome old mistakes made by existing ISPs by hiring technically-savvy individuals.
5.2 Marketing Strategy
The concentrated marketing activities of Web Solutions focus on the business mission and are comprehensive in nature. The following activities are the marketing department’s mission:
- Advertising design and placement.
- Public relations schedules and press releases throughout each year.
- Creation of annual advertorial (advertisement/tutorial) themes for trade journals and industry conferences.
- Planning and execution of all industry conferences, including the reservation of space, booths, personnel, messages, literature, etc.
- Collection, analysis, and internal dissemination of competitive information.
- Creation and maintenance of all corporate literature.
- Design, maintenance, and monitoring of websites.
- Design and creation of sales support material.
- Collection and dissemination of client testimonials.
5.2.1 Marketing Programs
To generate sales, the company uses direct marketing, computer reseller and repair facilities, and high-traffic areas (e.g. store checkout stands). Currently, several local companies display the company’s CD-ROMs at their checkout stands in the Phoenix area in exchange for free Web hosting.
Marketing initiatives will focus on four areas: efficient (“Server Hotel”) facilities, Web hosting, dialup access, and content provision. Marketing activities will be concentrated in the following categories:
- Contact Campaigns. This initiative will encompass various methods of reaching potential customers to generate interest, followed by direct mail to the potential customer.
- Print Advertising. Ads will be developed and placed in several industry publications.
- Trade Shows. The company will participate in selected local and national shows that will provide an opportunity to develop exposure. This is a very effective tool in creating awareness and stimulating lead activity.
- Industry Organizations and Associates. The recommendation is to join a number of organizations that are relevant to the company as a whole. This initiative will create awareness of the company within the industry, and provide networking opportunities.
- Telemarketing Campaign. Telemarketing activities geared to identify qualified leads, follow-up on sales progress to the qualified leads, and assurance that new potential contact lists are current and accurate.
- Promotional GiveAways. This is a traditional way of advertising a company’s name by giving something away. This will be used in conjunction with community service organization fund-raising efforts and traditional advertising.
5.3 Sales Forecast
The sales forecast chart and table are presented below. Final sales forecasts are based on predictions mentioned in the Executive Summary.
| Sales Forecast | |||
| 2000 | 2001 | 2002 | |
| Sales | |||
| Dialup Internet Access | $1,155,000 | $3,015,000 | $4,275,000 |
| High-bandwidth Internet Access | $105,000 | $765,000 | $2,025,000 |
| Website and Virtual Domain Hosting | $45,000 | $135,000 | $225,000 |
| Network Services | $75,000 | $225,000 | $375,000 |
| Server Colocation | $75,000 | $225,000 | $375,000 |
| Other | $45,000 | $135,000 | $225,000 |
| Total Sales | $1,500,000 | $4,500,000 | $7,500,000 |
| Direct Cost of Sales | 2000 | 2001 | 2002 |
| Dialup Internet Access | $39,996 | $39,996 | $39,996 |
| High-bandwidth Internet Access | $22,000 | $22,000 | $22,000 |
| Website and Virtual Domain Hosting | $4,800 | $4,800 | $4,800 |
| Network Services | $6,000 | $10,000 | $12,000 |
| Server Colocation | $2,400 | $3,500 | $4,000 |
| Other | $2,400 | $4,000 | $6,000 |
| Subtotal Direct Cost of Sales | $77,596 | $84,296 | $88,796 |
5.4 Strategic Alliances
Web Solutions currently has strategic relationships with:
- World Communications for Internet service.
- Phoenix DSL Networks for DSL resale.
- Phoenix Communications for high-speed wireless.
- Internet of Phoenix for dialup connectivity (they provide wholesale pricing in the Phoenix area).
Web Solutions benefits from these relationships by receiving very competitive pricing on most of these services, allowing the company to offer competitive pricing on its services to customers.
The company is currently pursuing an agreement with a local radio station to provide Web-hosting services which will eventually include extended email services and dial-up access offered to their listeners under a co-branding agreement. There have also been discussions about this becoming a nationwide collaboration between Web Solutions and the stations’ parent company, Jordan’s Media.
The company plans to develop community calendaring and groupware applications for use by the company and the afore-mentioned radio station. This will provide a simple, useful tool for organizations, businesses, and individuals to organize, plan, announce, and track projects and events. This is being based on the Open Source project maintained at www.opendesk.com and will most likely be developed to contain both Open Source and proprietary components.
In the future, the company plans to partner with backbone providers, wholesale carriers, and other strategic organizations to:
- Reduce cost of goods and services utilized.
- Increase the number and variety of goods and services offered to customers.
- Chart the growth of the company into new territories.
At this time, the company is establishing re-seller agreements with DSL and Wireless high-bandwidth providers, and other services which will allow the company to compete in these markets, thus allowing for broader consumer recognition.
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