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Austin Kinetic

Market Analysis Summary

The Information and Technology Service industry is expected to grow at 8.58% per year through 2010.
    –U.S. Department of Labor (2003)

We will be primarily focusing on mid-sized companies with 500 or fewer employers.  These companies typically do not have large internal IT departments and could benefit the greatest from our offerings.

4.1 Market Segmentation

The information in the market analysis table gained from the U.S. Census Bureau,  Though the data is based upon 1997 data, it is representative of the local market’s potential.

Outsourced computer support business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Retail trade 8% 2,925 3,159 3,412 3,685 3,980 8.00%
Professional, scientific, & technical services 8% 3,128 3,378 3,648 3,940 4,255 8.00%
Health care & social assistance 8% 1,705 1,841 1,988 2,147 2,319 7.99%
Total 8.00% 7,758 8,378 9,048 9,772 10,554 8.00%

4.2 Target Market Segment Strategy

Austin Kinetic is interested in servicing companies that are large enough to show direct P&L benefit from information technology investment, but not large enough to maintain their own permanent IT staff.  The business groups targeted in the market analysis table represent the largest groups in our target area that fit our interests.

4.3 Service Business Analysis

Austin Kinetic is in the business of satisfying companies’ information technology infrastructure needs.  We will provide service at various levels from consulting to installation. Services will be sold on a per-customer/case basis with heavy personal interaction between Austin Kinetic sales representatives and prospective customers.

4.3.1 Competition and Buying Patterns

In this industry that Austin Kinetic, word of mouth and reputation are king. While a limited amount of highly focused marketing will be effective, most contracts are gleaned from social contacts and networking.