Feasibility Analysis - Triple D - Case Study Example

Task FEASIBILITY ANALYSIS Triple D is a business that deals majorly in 3D printing complimented with distribution of documents to the public and sales of the same to its students. The company targets college students as the key customers resulting in its proximity location to the university. It sees 3D printing as the next opportunity that the young generation from engineering, fashion and design to engage in as data collected and analyzed shows positive results in the industry. Students thus, are to be educated by attending various classes at the time that suits them and are expected to purchase the printers upon conclusion of the training. The primary income for the business is the fees that are charged to students. However, the organization has diversified into printing services, sales, and supplies to enhance the income generation. Guided by the owners and the management team, they hope to succeed in the market and realize their objectives. Statement of the Problem There is desire for technology in the current world, and every person desires to be equipped with knowledge. Thus, they can be competitive in various sectors related to the technology industry. Such is the opportunity that is created by triple D. the company, however, is of the opinion to start by training the young generation so that they become more efficient as they grow. Not a bad idea anyway since they have a lot of time to acquire the necessary skills. The demand for printing services has increase and to solve the situations, they have invested in various modern printers that can offer the service to the public. Different classes have been formulated to ensure students are trained and extended business hours created to accommodate those who may have busy schedules over the day but do not miss any triple D service. Education of students on the 3D platform sounds to be one of the best ideas that will create value for the future generations. They can be able to design products that generate income for them at their tender ages (Christensen, Clayton, and Michael 2013). Thats a good idea comparing the time that students might have wasted on other unnecessary activities. The public, on the other hand, can access more quality materials inform of printing. However, the answer given doesn’t seem to be benefiting the intended customer. First, there is segregation of the students since only those from engineering and fashion are majorly considered. Thus, the rest are locked out and cannot access the training hence the business is denied of its customer base. It is only a business idea, and already more persons are being kept out, you can imagine what the future outcome would be (Stutely, 2012). The class is also tiny and can only accommodate eight members, what happens if there is an influx of the population now that they are situated next to colleges. The public printing is also limited since the printers cannot allow bulk production. Already there is inefficiency even before the customers start visiting the place. Will the customers receive value if the business starts operation? Customer analysis The business major customers are the students, public members who would require small printing facilities and sales of printers targeted at the population. The groups have been identified within the business and will undoubtedly form the major decision making in the organization. But markets never exist in ideal situations and to find the stated customers at full is an illusion. This is because there would be fluctuations to those who visit the venture. Thus, controlling the market for instance students who only take engineering, fashion, and design and excluding the rest seems not to work for me. Hence, the growth of the firm is quite limited and look even to be stagnant if not in a downward movement. The students who can access the 3D training are restricted; the business can only print up to small parts since their printers cannot allow bulk production, and how many people would wish to have printers at their doorsteps? Few I guess! Thus, the businesses are denied the opportunity of expanding its customer base and increase its sales revenue (Allen, 2015). Business growth without an increase in customers and revenue! I would cherish to come on such a venture, and it must be a genius organization! Competitive analysis of the triple D Triple D has joined with strartays a major firm influencing the 3D industry. This seems to enable the company to have a more competitive advantage over their rivals. The organization will learn and be managed by the establishment of the major organization. They will expand operations both in supplies and training and can influence the market. But the industry still has some loopholes. First, they are market exclusive since not all students are catered for. Second, their production only allows printing to small capacities. Hence, the business only serves a minor of the population. As a result, of the untapped market that creates demand; other firms will enter the market. They will invest in more powerful printers that can produce more work and increases speed of work. While the incoming organization may also provide for training that includes all students in society. Hence, the industry will be more competitive than before, and unless triple D changes strategy, they are bound to exit the market. However, triple D can be competitive in the market by changing tactics. They need to be flexible and accommodate more students from diverse sectors, and the organization can also expand its diversity more such as supplies, sell more computers and partner other firms that are already in the market. Hence, they will be able to earn more revenue that they can use to invest in more sophisticated printers that ensure they do not lose customers (Willcocks,2013). Expand on their rooms to accommodate more students and hire more staffs that are qualified to provide the training. The company can also get advice from the existing firms that enable them in critical decision-making. Financial analysis of the organization The company primary source of funds is from four major streams. Collection fees that are paid by students for attending the 3D classes that acts as the fundamental income for the organization. The firm engages in printing services for the public thus provides another avenue for revenue. It will participate in sales of the printers to the students and population at promotional prices to diversify the organization income base. Finally, the business has partnered with straatays that increase its supply to provide an extra source of fund. From the enterprise position, the organization funds do not seem to grow. Their primary market is the sale of the printers to the trained students, it is just a mere chance since the majority of the students are already locked out of the venture, and the number is significantly reduced. So even if the students were to buy the products, they will not buy more compared to when the population was inclusive. The public will also tend to shy away since their needs are not fully met due to low turnout of the printers. So the possibility of income growth, as the business stands, is very minimal. Other costs such as the training of labor, purchases of more equipment like laptop that will be used to train the students, cables and many more are not included in the budget estimates. Hence, there is high chance that the operational expenses will be higher and may hurt the business especially if they do not have other avenues to generate the excess capital Clearly the business has $20000 capital to start operations. They need to construct classes, purchase the printers, employee staffs and incur the fixed costs before they can begin. Some of the costs like labor and expenses such as electricity are not easy to maintain. The business cash inflows are majorly expected to come from tuition fee collected from classes and the plan; the margin is approximately $17000 which is a deficit. This clearly indicates that the organization is insolvent at its inception. With an increase of 6% annually, it is quite minimal for the business to recover both at short term and long term and may end up in a closure in the near future if not sooner. However, the organization can increase its intake capacity by allowing other students from other faculties to join. It will increase its revenue so that it can meet the expenses with ease. (Olson, and Jesse, 2012) Distribution channeling analysis Triple D has stock of four computers for a start and plans to acquire more as the business continues to become stable. They do not have a unique particular idea for delivery of products to their customers but have compensated that with more than enough time for their accessibility. They open very early and close late relative to their competitors that ensure that all of their customers are served. Nevertheless, if the firm is to become one of the most sellers of printers in the market to enable the students practice more of the 3D, they must design other ways of distributions. From their websites, the company can formulate on how individuals can order the property without having to attend to them, practice delivery as such as door to door so that you reach a majority. They firm will make more sales and increase their revenue relative to the competitors. Capital access and the cost of essential resources analysis The organization has eight employees with four owners who make it twelve in the firm. However, the two managers seem not to be from the industry or have enough experience to guide the organization to its objectives. Triple D is a specialized firm and requires the use of the same in an expertise capacity to make critical decisions. These members should be complemented with the technicians, triple D should be able to succeed in the market. The firm has also partnered with other businesses that provide other avenues of decision-making to understand the industry better. By triple D having such capital, they will be stable in the market and will gain trust from major financial institutions. Through excess revenues they generate, they can invest more in capital formulation that enables the business to access facilities such as loans in case there is a need. Thus, the firm will be able to acquire critical resources that it needs in the operations. Commitment of the owners The owners are quietly focused to see the business grow. They have diversified activities in the organization to provide a wider base of income, and their classes are structured to suit all the targeted students so that they can customize on the existing market. The organization has even gone an additional mile to work more hours to ensure that all customers need is met relative to their competitors. A future plan is in place to hire additional labor as the business grows. Such is the vision that an aspiring firm would have in any industry (Hacklin, Fredrik, and Maria, 2012). Apart from the excludability of the students from more faculties such as business, low quality printers that only serves a small work, that if corrected by allowing all students from all departments to train so long as they have the interest, and invest in quality printers so that the public can maximize from the business, triple D is in good position to succeed in the industry. Conclusion Triple D has a magnificent business idea and if well harnessed can make the firm be one of the biggest in the 3D industry. However, the business is it still based on possibilities and nothing concrete can be said has been achieved. The position of the organization is fantastic, market exists so long as they will not be exclusive, and thus, the chance is real. Diversity measures have been stated that ensures the firm does not rely on individual income, partnerships are evidenced which will only make the organization better in the industry as it will more competitive. Hence, if all the proposals in the plan are taken care of and slight strategy changes proposed above are used in the organization to start operations, no doubt it will become a force to reckon within the 3D industry. Work cited Hacklin, Fredrik, and Maria Wallnöfer. "The business model in the practice of strategic decision making: insights from a case study." Management Decision 50.2 (2012): 166-188. Christensen, Clayton, and Michael Raynor. The innovators solution: Creating and sustaining successful growth. Harvard Business Review Press, 2013. Stutely, Richard. The definitive business plan: the fast track to intelligent planning for executives and entrepreneurs. Pearson UK, 2012. Willcocks, L. P. "9 Evaluating the Outcomes of Information Systems Plans Managing information technology evaluation—techniques and processes"." Strategic Information Management (2013): 239. Allen, Kathleen R. Launching new ventures: an entrepreneurial approach. Cengage Learning, 2015. Zikmund, William, et al. Business research methods. Cengage Learning, 2012. Olson, David L., and Jesse Staley. "Case study of open-source enterprise resource planning implementation in a small business." Enterprise Information Systems 6.1 (2012): 79-94. Rosenblatt, Harry J. Systems Analysis and Design. Cengage Learning, 2013. Read More