Money-Air: Instant Money - Case Study Example

 Instant Money Product Business involves identifying a niche and exploiting it (Blackwell, 2008). Therefore, it is imperative for any entrepreneur to establish an ingenious product or service that possesses a huge market base. In the same vein, Money-Air Inc. strives to produce a product that has its basis on information technology. Needless to know, Money-Air is a business that premises itself on technology based solutions like mobile application development and problem solving products and services (Blackwell, 2008). Examples of products and services that it offers include networking services for its clients, distribution of computer accessories and products, and development of mobile applications. As a result of an emerging need for real time transfer of money between people, Money-Air identifies a business opportunity. Consequently, it is developing a product that will use mobile phones as a medium of transferring money from one individual to the other (Schaeffer, 2008). Money-Air has given this problem solving product the name Instant-money. This product is geared towards covering all individuals with mobile phones. Consequently, the customer base is broad and has the potential to expand (Blackwell, 2008). As stated above, instant-money is a product that has its bases on information technology. Mobile phones are platforms that instant-money is used in order to effect its intentions. Therefore, instant-money has enjoyed a potentially big market for almost nearly all adults in the United States of America possess a mobile phone (Barrow & Barrow, 2012). The formulation of this product was intrigued by the need to transfer money between individuals with ease and faster. Instant-money is of importance especially when an individual in dire need of quick money from another person. Consequently, the product is based on real time processing. Therefore, customers make cash transfers in considerably very little time. That notwithstanding, instant-money has a greater competitive advantage as compared to its competitor. Competitors, use a rather time consuming way of transferring money (Blackwell, 2008). As a result, most people prefer products like instant-money since they are fast and can easy to use from whatever place. For every product to thrive in the market, target customers are supposed to identify with the product. Therefore, instant-money targets individuals with little money and depend on cash from others (Barrow & Barrow, 2012). Since there are a lot of emergency situations that need quick money, people prefer instant-money due to its quick fit ability. Therefore, business people do not need to worry about going short of money when making a purchase (Schaeffer, 2008). They are only required to call the finance manager so that he can channel the money instantly through instant-money. Since instant-money has its basis on real time money transfer, it is imperative to consider casual laborers and huge number of adults as the major target market. However, school going children and university students also come in as a potential customer base (Blackwell, 2008). The number of students joining university is gradually increasing, resulting in an increase in the number of parents sending pocket money to their children. Therefore, instant-money targets this market by offering a quick fix to the hustles that parents and employers undergo in order to send money. Money-Air considers banks and other money transfer agents as the primary competitors. Since cash banks are the fundamental custodian of people’s money, it becomes somewhat a task to compete with them. Moreover, Money-Air’s product offers less tedious and quick transfer of cash. Important to note, instant-money cash enables a customer to send money to the target recipient using mobile phones. On the other hand, individuals need to go through the hustle of queuing in the banks and agency stalls in order to transfer money. Money-Air identifies technology as a fundamental driving force in the money transfer industry (Ryan & Jones, 2009). Therefore, it considers all mobile owners as potential customers for their product, instant-money (Ryan & Jones, 2009). However, mobile owners are segmented according to money transaction they make. These segments include casual labors, university students and small business owner. Business owners require adequate cash flows in order to ensure that their daily activities are accomplished (Barrow & Barrow, 2012). Although a business person may always be in consistent supply of cash, there are times that cash runs short in the process of purchase. Therefore, prompt supply of money is important in order to accomplish all the activities. On the other hand, Parents of university students send their offspring pocket money (Blackwell, 2008). For some students, school is far from their parents’ homes, and it becomes difficult for physical cash delivery to take place. Parents prefer giving their children student allowances is small bits. Therefore, parents will welcome any service or product that relieves them the agony of sending money to their children. Pricing is a dynamic process that varies over time. Therefore, Money-Air considers all economic and non-economic factors while constituting the price (Ryan & Jones, 2009). For instance, university students’ parents demand for Instant-money is big. That notwithstanding, the banks and other competitors are charging arguably high prices. Therefore, the lower pricing for instant-money, saves money and agony for the parents. However, pricing is done using the cost pricing method. In this method a considerable amount of margin is increased on the coast of production in order to get the selling price. Since the organization is a technology firm, individuals working on this product are meant to possess greater technological skills. Therefore, a system developer is critical when developing instant-money. While developing the product the system developer requires the assistance of financial offer. The financial officer is quite vast with banking and money transfer processes (Schaeffer, 2008). That notwithstanding, there is a qualified lawyer. The lawyer ensures that all the undertakings by Money-Air strives at mitigating legal liability from all possible quarters. An operations manager ensures that the lawyer, financial officer and system developer work harmoniously (Ryan & Jones, 2009). Other than supervising the three, the operations manager ensures that all employees a salary that is commensurate with their work input. To promote the product, sales persons employ effective marketing method that wins customers. Therefore, the company has a sales representative team that is supervised by a sales manager. Needless to say, a chief executive officer uses his skills and powers to ensure that the company’s goals and aspirations are met. From an objective view, the product is poised to solve a social problem of time management. Instant-money use helps customers avoid the long queues witnessed in banks and cash transfer agencies. That notwithstanding, instant-money is facing security threats from cyber criminals’ consistent trials to access client’s money. To curb these threats, Money-Air has a team of staffs that posse hands-on skill to deal with any perceived threat. Money-Air management concludes that Instant-money is viable and has immense potential for growth. References Barrow, C., & Barrow, P. (2012). The business plan workbook (Seventh Ed.). London: Kogan Page. Top of Form Bottom of Form Blackwell, E. (2008). How to prepare a business plan (5th Ed.). London: Kogan Page. Top of Form Bottom of Form Ryan, D., & Jones, C. (2009). Understanding digital marketing marketing strategies for engaging the digital generation. London: Kogan Page. Top of Form Bottom of Form Schaeffer, P. (2008). Commodity modeling and pricing methods for analyzing resource market behavior. Hoboken, N.J.: Wiley. Read More