Webcore Computing Business Plan - Essay Example

Being a new company in the market, Webcore has experienced a lot of competition from companies that sell computing products. The main competitors in the market include dominant companies such as Global Business Machines, Micro-Tech, and Advance technology. The main strength of these companies is that they enjoy a good reputation for having built their name over the years. In addition, the companies have more than five products while Webcore has only two products. The ability of these companies to differentiate in the market has given them an advantage over Webcore. However, just like any other company, they are already feeling the pressure of competition within the market. However, while Webcore still has the opportunity to grow, these companies have reached their optimal stage of the business cycle and are on the verge of entering a business recession. Webcore has the opportunity to penetrate deeper into both the local and international markets, and to launch new products in the industry (Rhonda, 2003). The threat that exists in the market is the high number of new companies that are entering the market and more are expected in this financial year.

Webcore has laid plans to satisfy its short-term goals by expanding its market segment and creating new distribution channels. To extend its geographical scope, the company is going to establish a new branch in California to target the growing demand for computers in this city. In New York, there are plans to open new distribution channels in this city to target the high demand for Pro-book computers in this city among middle-level customers (Rhonda, 2003). Plans are underway to establish partnerships with Whole Stock distributors in New York to develop a new channel for its products. It is expected that this move will optimize sales in this country and hence increase the company's marginal profit. Secondly, the company is establishing an online selling platform where customers can register as members and order their products online.

Currently, the company's two main products include Webcore Pro and Webcore pro-book. The company intends to differentiate by investing in non-computing products whose demand is growing in the market. With the introduction of printers and mobile phones in the market, the company aims at attracting satisfying the demand for these products that seems to grow each year. At the same time, the company intends to increase its production of Webcore Pro computers which seems to be attracting more customers into the business as compared to the Pro-book.

Webcore has laid strategies to roll out its products by investing $1000 in advertisements in the television media and newspaper. This program expects that the public will become aware of the products and services that Webcore will be offering during this financial quarter. The company advertisement will appear in the newspaper at least twice every week to allow and each day on all television service providers. By ensuring the public are aware of the products, the company will expect more buyers this year than any other year when little advertisement was evident (Rhonda, 2003).

The company has realized the merits the benefits associated with promotional plans for loyal customers. In all distribution channels, all individuals who will buy more than two products will receive a discount of 5% for every product and any customers who buy three consecutive times in the company will receive a 3% discount on the third purchase. The objective of this promotional plan is to encourage customer loyalty but to attach benefits to loyalty (Rhonda, 2003). By obtaining more loyal customers, the company expects to stabilize its cash inflow and hence improve its profits in this quarter.

The major challenge that the company has experienced is the low prices that dominant companies such as Micro-Tech have been able to offer in the market. The company intends to reduce its operation and production costs to effect price changes in this financial year. To do this the company has plans to reduce the number of employees in each branch by distributing the in the newly formed branch (Rhonda, 2003). Therefore, the company will avoid additional costs while implementing market extension. The production cost is expected to reduce by implementing night shift programs and increasing the production rate. This move is expected to reduce the prices by 6%, which will reduce the cost barriers that Webcore customers experienced during the previous financial year. These strategies of this company are all designed to contribute to the long term of Webcore computers Company to become a multinational business company.