Creative Concepts Computer Design
Market Analysis Summary
Creative Concepts Computer Design will provide computer support in both a consulting and technical capacity to home PC users as well as small business owners. Since Creative Concepts is currently a one man operation it will be limited in growth to the capacity of work able to be completed. Personal market research indicates an available market niche able to be occupied by additional businesses of this nature. The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.
4.1 Market Segmentation
The existing computer service market is so extensive categorizing it is a rather difficult task. For our revenue-oriented purposes we will define the market into home PC users and small business clients. Home PC users will provide the majority of our business revenue. These jobs will typically consist of minor upgrades services and advising. The small business market will be defined as customers with five or more computers or a network requiring service or repair.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Home PC Users||2%||25,000||25,500||26,010||26,530||27,061||2.00%|
|Small Business Contracts||1%||10,000||10,100||10,201||10,303||10,406||1.00%|
4.2 Target Market Segment Strategy
Creative Concepts has decided to focus mainly on the home PC market for many reasons. These home customers typically requests jobs that are easier, faster, and less resource intensive then the opposing small business customer. In addition, this market tends to offer more flexibility for service times allowing a more productive workday.
4.2.1 Market Needs
As reported by ComputingNet magazine, there is a substantial need for individuals capable of performing computer upgrades and repairs in a timely and cost-effective manner in this region. Creative Concepts is directed specifically at that market niche.
4.2.2 Market Trends
Both the software and hardware side of the computer industry continue to turn out new and revised computer components at alarming rates. For Creative Concepts this means job security well into the future.
4.2.3 Market Growth
As reported by the Wall Street Journal, there seems to be no end to the development of the computer market. Business Week expects the computing industry to grow at a rate of 12% and the processor speeds to continue to expand for years to come.
4.3 Service Business Analysis
Secondary market research shows computer service customers tend to be very loyal providers that do good work and satisfy their needs. An analysis of Creative Concepts’ main competitors shows no overwhelming strengths that would be significant barriers to possible success. Likewise, identifying competitor’s weaknesses has illuminated several areas that Creative Concepts can target as marketing strategies.
4.3.1 Main Competitors
There are two main competitors for the computer upgrade business in this area.
- VOS. They are a well established provider of computer upgrades and services.
- Suntech Computers. Smaller and less known then VOS, Suntech provides many services for residents living in East and South Eugene.
Both of these companies charge rates in excess of Creative Concepts, we will be able to attract the price-sensitive market without much work. Our second main advantage is the accessibility of our services. The time conscientious customer will appreciate our swift work.
4.3.2 Competition and Buying Patterns
As previously noted, there are other providers of similar services in the area. Our services will be second to no one and our prices will be rock bottom. By providing superior service word of mouth alone will bring in many new clients. The satisfaction our consumers find will keep them as our business.