The Business of IT- Venture - Coursework Example

The Business of IT-Venture Report Executive Summary The pet care industry in Australia is growing rapidly. An enormous number of people are engaged in domesticating dogs and their expenditure on pets is identified to be rising at a constant speed in the nation. Scope of the Report The report represents an idea of developing the ‘Citydog’ app for dog owners and pet lovers to help them to find dog friendly locations. The prime goal of the organisation behind developing this app will be to successfully penetrate into the pet care industry and attain sustainable growth. In addition, the report determines the external and internal environment relevant to the pet care market in Australia. Findings Notably, the exernal environment related to pet care in Austrlia is favourable for developing and launching a new app for dog lovers. However, a few of the competitors are also identified to deliver similar apps for pet lovers. Hence, competition is identified to be a strong determinant for success of Citydog. Conclusion The report depicted an idea for developing an app that would assist dog lovers to find dog friendly locations. However, several national and international ventures are identified to deliver similar services within the country. Recommendations Specially mentioning, inbound marketing will be used to promote the app and a premium price based pricing strategy will be taken into accouint for successfully marketing the app. Apart from these, varied platforms of social media including Facebook, Twitter, forums and blogs will be extensively used to differentiate the app from the competitors. At the same time, three experts will be hired for performing technical architect, graphical design and sales along with marketing activities for accomplishing the desired business objectives of the technology development organisation. Table of Contents Executive Summary 2 1.0 Vision, Mission, Goals and Objectives 5 2.0 Business Model 5 3.0 Strategy 7 4.0 Competitive Analysis 12 5.0 SWOT Analysis 13 6.0 Marketing 15 7.0 Organisational Structure 18 9.0 Plan of Activities 21 Conclusion 22 References 23 1.0 Vision, Mission, Goals and Objectives Vision The vision of the organisation is to develop an application, namely ‘CityDog’, in order to organise and manage various interesting activities for dog owners. Mission The mission of the organisation is to design such an app that will help dog owners to find dog-friendly locations and places. Goals The goals of the organisation will be establishing itself as one of the leading application developers and attaining constant growth both in terms of size and revenue. Objectives The objectives of the organization have been framed in the following: Attaining 5,000 paying customers in Australia by the end of the first operating year Accomplishing 20% and higher market penetration within the first year of operation Achieving superior competitive position over the chief business market competitors Sustaining in the respective industry for longer time period 2.0 Business Model Key Partners The key partners of the technology development organisation for the business of designing an app will mainly include platform providers, content providers, publishers and mobile operators (Diehl & Nikolou, 2013). Key Activities The activities that will be performed by the organisation entail making a proper arrangement of funds and hiring employees for conducting effective marketing practices, platform management and other related activities towards the attainment of the predetermined business targets. Key Resources The key resources that will be required by the organisation to attain the aforesaid business objectives and goals include human financial resources, digital contents etc. Value Proposition Currently, there exist numerous app developers for the pet lover market. Thus, in order to differentiate the organisation from other competitors, in-app purchase (IAP), which involves purchasing apps through mobile and other devices, will be used. It is projected that the app will enable the users (dog owners) of mobile phones, smartphones and tablets to locate dog friendly locations anytime, anywhere and on the move. Customer Relationship To draw the attention of customers towards the app and also to form greater communication with the customers, automated and indirect marketing will be taken into consideration. In this regard, e-mail will be used as one of the major sources of communication with the customers. Two social media platforms, namely Twitter and Facebook, will be utilised for obtaining customer feedback and sharing latest updates. Customer Segment Citydog is a dog friendly location finder, which will assist the dog owners to locate places wherein they and their friends will be provided with a flexible environment. Thus, dog owners and pet lovers will be the major customers for the app. Besides, the pet shops dealing with dog-related businesses will also be targeted. Distribution Channel There are several ways to deliver the app to the customers. In this regard, the app will be delivered through connected portable devices such as smartphones and tablets as well as app stores. At the same time, the app will be available on diverse social media platforms as mentioned above. Revenue Stream The organisation will generate revenues through the incorporation of four major groups including per-user fees/subscriptions, pre-event charges, data access and third party funding. Besides, the company will generate revenue in the form of advertisement fees from other business. The app will be available in two versions including a free version and a pro-version. Pro-version users will have to pay 0.99 c for purchasing the app. 3.0 Strategy Macro Environment Analysis and PESTEL Analysis Political. The political system in Australia is based on the model of federal constitutional parliamentary democracy and constitutional monarchy. Two party systems are identified to be operating in Australia. The political leaders belonging to this nation have shown their championship in framing effective policies for promoting growth of new ventures and developing the general economy. Precisely, the political environment of Australia is stable. Thus, the organisation may not face any serious political pressure or challenges while framing its strategies towards designing the app (The Australian Companion Animal Council, 2008). Economic. The economic condition of Australia is found to be quite favorable with strong growth in per capita GDP. In terms of finance, the corporate tax in Australia is charged at flat 30% rate. Correspondingly, the prosperous economic condition will serve as a catalyst for the growth and expansion of the application development organization (The Australian Companion Animal Council, 2008). Social. People from different cultures live in Australia. In other words, it can be affirmed that the country is the home for a collection of diverse society. At the same time, Australia is categorized amid the highest pet ownerships in the world. Notably, dog population owned domestically is also identified to be increasing in the country. The expenditure of pet ownership on pet care is determined to be rising in Australia. Thus, it can be argued that the application development organization will ream much benefit from this favorable conditions prevailing in the nation (The Australian Companion Animal Council, 2008; Chaseling, 2001). Technology. From the technological perspective, it can be ascertained that number of internet users is rising in Australia. In this similar context, the technology of mobile wireless broadband is emerging as a supplement to traditional computers in the nation. Thus, there exists a greater prospect for the application development organization to capture highest market share within shorter period in terms of technological aspect (Australian Communication and Media Authority, 2011a; The Australian Companion Animal Council, 2008). Environment. In the contemporary business scenario, the environmental factor has certainly emerged as an important factor across all domains. In this regard, the significance of preserving the environment is also required to be taken into account with respect to business enterprises. Thus, in order to ensure widespread acceptance and popularity, the application development organisation may engage in conducting varied corporate social responsibility (CSR) related activities (The Australian Companion Animal Council, 2008). Legal. The government of Australia has placed numerous legal requirements for start-up businesses with respect to licensing, record keeping, intellectual property and employing staff. In order to evade any legal complication, the application development organisation will ensure that all necessary legal and regulatory requirements are duly fulfilled (The Australian Companion Animal Council, 2008). Porter’s Five Forces analysis As stated earlier, pet ownership in Australia is found to be highest as compared to other countries of the world. However, different factors can be acknowledged to influence the pet care industry. In order to formulate effective strategy, the application development company needs to consider and evaluate factors exerting influence on this industry (The Australian Companion Animal Council, 2008). Thus, Porter’s five forces framework have been taken into concern for discussion in the following: Barriers to Entry. The pet care industry is growing rapidly in Australia. However, the industry is still in a growing stage. Correspondingly, there exist no such major players having considerable influence on this industry. Hence, the degree of barrier to entry associated with this industry is relatively low to medium (The Australian Companion Animal Council, 2008). Suppliers’ Bargaining Power. The continuous advancement in technologies has offered the entrepreneurs in Australia the flexibility of adopting new and emerging technologies to exploit the untapped market opportunity. Thus, currently there exist a huge number of vendors offering a broad assortment of new technologies and digital services to put new business ideas into action. Contextually, the extent of suppliers’ bargaining power of suppliers can be duly ascertained as medium to low (The Australian Companion Animal Council, 2008). Buyers’ Bargaining Power. The number of pet owners in Australia is constantly increasing. In order to exploit the opportunity arising from this rising number of pet owners, enterprises are engaged in offering numerous services to attract the attention of pet owners. Correspondingly, the buyers’ bargaining power is deemed to be medium to low in the pet industry of Australia, but this is noted to be constantly rising (The Australian Companion Animal Council, 2008). Threat of Substitutes. With respect to this particular factor, the major challenge for the application development organization with respect to pet owners can be related to the physical pet stores that are also engaged in offering various pet related services to pet lovers through online platform (The Australian Companion Animal Council, 2008). Degree of Rivalry. Although people has remained much involved in taming animals and keeping pets for a longer time period, pet care has been a recently evolved industry in Australia . Hence, the level of competition is relatively medium to low in pet care industry in Australia (The Australian Companion Animal Council, 2008). Differentiation Strategy There exist limited abilities to differentiate an app with other similar apps. However, extensive marketing and promotion strategies will be considered for differentiating the newly designed app from other competitors. In this regard, one of the imperative factors which will differentiate the newly designed app from those of the rivals can be the feature of sharing photos of the animals. Apart from offering pet owners the flexibility to locate dog friendly locations, it will also help them to locate emergency veterinary clinics (The Australian Companion Animal Council, 2008). Strategic Option Two major strategic options can be determined for the application development organization. In this regard, the first option can be the use of inbound marketing for promoting the products and creating its demand amid the dog owners. Correspondingly, the organization may also use comment marketing, online videos, word of mouth, social networking site email, SEO and blogs to promote the app. The second strategic option for the application development organization will be ensuring that the app is equipped with latest features and is upgraded regularly based on the feedback obtained from users of the app (Andersen et al., 2009). Strategic Capability While determining the strategic capability of the application development organization, it would be vital for it to ensure that adequate resources and competencies are effectively utilized to meet the customers’ (dog owners) expectations and needs. This particular strategic capability may assist this organization to attain superior competitive position as compared to others operating in the similar industry. Focus will be more on acquiring talented pool of human resources who are able to deliver their dedicated efforts towards the accomplishment of the organizations’ vision and mission. Employees with specific skills will be hired for developing effective corporate culture as well as training will be provided to them during their initial recruitment. Innovation is the other major factor, which will significantly aid in determining the success of the organization. In this regard, immense importance will be placed on creating culture wherein innovation fosters. Every individual within the company will be provided with an opportunity to share their ideas freely. At the same time, efforts need to be made on developing the core competencies of the application development organization. The app, which will be offered to the dog owners will be unique in a sense that it will not only assist dog owners and pet lovers to find dog-friendly locations, but will also enable them to share the photos of different breeds of dog along with their family members through accessing diverse social networking sites (The Australian Companion Animal Council, 2008). 4.0 Competitive Analysis The market for pet care is ascertained to be constantly increasing in Australia. More specifically, over the previous few years, the number of dog owners in the country has witnessed significant growth. At the same time, the expenditure of dog owners on pet care is also ascertained to be increasing rapidly. Correspondingly, in order to reap the advantage of ever-increasing market size of dog owners and pet lovers, numerous app development companies have emerged in the nation (Cohen, 2013). In this regard, competition is a major factor, which may influence the growth and expansion of the application development organization. Currently, it can be apparently observed that numerous app development companies are operating in Australia that are engaged in providing diverse apps to different users. In this regard, a few of the major app development companies include MobilePundits, iTunes app store, Apple, Google and Air NZ mobile app. It is projected that these companies will provide intense competition for the application development organization (Cohen, 2013). There exist different applications that are available for dog owners and pet lovers including PetMinder, Pet Services Finder and Cesar Says among others in Australia. All these apps possess unique features and are amid the most downloaded apps in Australia. For instance, Pet Services Finder offers dog owners and pet lovers with the flexibility to locate dog parks, emergency clinics, dog walkers, groomers, veterinarians, daycare centers and information pertaining to dog sitters. Correspondingly, the availability of these apps may impose serious threat to the success of the application development organization (Cohen, 2013). 5.0 SWOT Analysis With reference to the above discussion, it is evident that the proposed business report would provide a number of business opportunities to the application development organisation, ensuring its long-term sustainability in the respective industry. According to an in-depth understanding of the facts, the analysis regarding the proposed business model and strategic measures can be broken down into few major categories that have been discussed below. It is anticipated that these categories may support the organisation to attain superior competitive position in the industry wherein it tends to operate. The following discussion critically explores the SWOT analysis for the application development organization by considering its different aspects and business attributes. Strengths According to the present day context, an increasing number of dog owners are often observed throughout varied communities of Australia. In this regard, the fiercely increasing number of dog owners can be one of the major strengths of the organization for developing its exceptional application ‘CityDog’ in accordance with the needs of the customers i.e. the dog owners. The key availability of the partners including the platform providers, content providers and publishers can also be regarded as a major set of strengths for the organization to successfully achieve its desired business goals. The existence of certain dominant mobile operators across the Australian communities would also act as a major strength of the organization to widely extend its application programs to the target users (Australian Communication and Media Authority, 2011a). Weaknesses Being a new entrant in the highly competitive application business market, attracting customers can be a major problem for the application development organisation. Moreover, easy accessibility of various digital contents at the start-up stage would also be a major weakness for the organisation. Making irrelevant decisions concerning making substantial investments may also act as another major obstacle for the organisation. By taking into account the fact that being a new marketer operating in the highly competitive Australian application developing industry, the organisation might not be able to obtain substantial number of investors or other group of stakeholders (Vries et al., 2011). Opportunities In this particular segment, it can be stated that the increasing number of Australian dog owners can be duly considered as one of the key opportunities for the application development organization to easily acquire potential users for its advanced CityDog mobile application. The rising number of populaces in Australia regarding the usage of different mobile apps is also a major factor for the organization to be taken into concern for targeting a huge figure of dog owners throughout diverse communities of Australia (Australian Communication and Media Authority, 2011b). The availability of skilled workforce and application developers in the current Australian market can also provide greater opportunity to the application development organization in the context of offering quality based mobile app and satisfy the desires of the customers. Moreover, the strategy of building strong relationship with the potential users would also enable the organization to accumulate its expected rate of users for its exceptional CityDog app in the Australian app developing business industry (Australian Communication and Media Authority, 2011b; Vries et al., 2011). Threats Rising competition in the Australian application development market can be one of the crucial threats to the application development organisation, which might restrict it from successfully marketing its exceptional CityDog application. In this context, the existence of local and global competitors along with their innovative mobile applications and large market share can emerge as the other threat for the organization. Correspondingly, the marketing and promotional strategies of the existing rivals along with their already established strong customer base may also create obstacles for the organization to successfully market it’s newly designed or developed app for the dog owners (Vries et al., 2011). 6.0 Marketing The marketing strategy for the application development organization will be customer oriented. The major focus of the marketing plan will be providing more value to the customers and positioning itself as one of the leading mobile application development organization in emerging Australian IT business industry. The marketing objective of the venture will be to establish the brand name, enhance sales and membership along with maximizing the demand of the newly designed app to its targeted customers. These objectives can be accomplished through the incorporation of an effective digital marketing strategy. The digital marketing strategy for the proposed IT venture will therefore include the below mentioned five major steps to successfully market and promote its mobile application, i.e. CityDog. Planning The planning stage of the digital marketing strategy for CityDog will include analyzing and understanding the needs along with behavioral characteristics of the customers. The stage will also include executing effective channels and media in order to communicate a wide range of benefits that can be enjoyed by the customers through the use of CityDog mobile application. In order to obtain a huge base of potential users for the application, the strategy of providing relevant experience through different media channels will also be implemented. Reaching to the Potential customers In order to reach a substantial level of potential buyers, the digital marketing activities will be performed in both web and social perspectives. The strategy will enable the application development venture to accumulate customers irrespective of their web and social presence. In this process, it will be more convenient for the organisation to identify unique purchasers along with valuable groups of customers for its exceptional application. Encouraging Actions The step will involve a strategy, which can enable the organisation to lead the generation. In this regard, the strategy of leading generation will be focused on obtaining both online and offline opportunity with high volume. In addition, the customer-centric measure of providing value as per the expectations of the customer will also be focused on, which will enable the organisation to encourage its potential users. The digital marketing strategy will focus on encouraging customers by providing them with relevant experience and knowledge about the product. Converting Into Sale The proposed digital marketing strategy for the CityDog mobile application will further focus on converting the users into a potential group of customers. In this context, providing an easy process of purchasing the application and a quick process of delivery options will be focused upon, which will enable the organisation to convert visitors into a valuable group of customers. Engaging Customers for a Long Term The final stage of the digital marketing strategy will accordingly focus on engaging customers in increasing their level of satisfaction in a sustainable manner. In order to increase customer engagement with the product, the process of enhancing online and offline communication techniques will also be a major set of activities. The engagement strategy will therefore include increasing customer interaction processes by direct mailing and providing relevant and appropriate information through different social media tools. Marketing Mix Strategy Product. The product development process of the application development organization will highly focus on meeting the expectations of the target users. Therefore, CityDog App will centrally focus on including effective technological features that can enable the users to easily locate places through the involvement of GPS service facilities. Moreover, GPS service of the application would also provide an appropriate location of different areas in accordance with the queries of the users. (Kotler & Keller, 2006). Price. A value based pricing strategy has been determined for CatchDog. The primary aim of this pricing strategy will be to build a strong and valuable group of customers across different Australian communities. Moreover, the implementation of a value based strategy would also facilitate the organization to gain the interest of the potential users towards the newly designed application (Kotler & Keller, 2006). Place. In order to attract a huge figure of potential users for the mobile application, the inclusion of web-based stores will be a key strategy for CityDog. The strategy would enable the application development organization to attract extensive level of potential buyers from diverse geographical locations. Moreover, the mobile application will also be offered to the final users through their individual telecommunication service providers, which can further attract the potential buyers towards using the application immensely (Kotler & Keller, 2006). Promotion. The promotional strategy for CityDog will be focused on accumulating potential users through adopting an effective advertising strategy. In order to grab maximum figure of potential buyers for the mobile app, the product will be promoted through different electronic and social media networks (Kotler & Keller, 2006). 7.0 Organisational Structure In order to enhance the efficiency level of the business functions, the organisational structure of the proposed application development organisation will be focused on maintaining a functional structure. In this regard, the operational, marketing and strategic functions will be directed by different individuals in accordance with their job positions and capabilities. The business operations of the organization will be characterized into an effective number of functional areas that can enable it to accomplish each operational goal. Mike Young could be CEO of the proposed IT venture, who will be responsible to make decisions associated with each functional area of the organisation. In addition, CEO will also be accountable to develop effective strategic measures and practices engaging the other personnel of the organisation as per their experiences and knowledge base. The process of maintaining an effective functional structure will certainly enable the organization or the leaders from different functional areas to obtain better control of each process to be conducted. Moreover, the structure would also provide the leaders and other group of stakeholders to apparently understand the roles along with the responsibilities of each individual staff member within the organization (Shtub & Karni, 2010). The following diagram demonstrates the functional structure of the proposed application development organization with different purposeful position of the staff members. 8.0 Technical Architecture The architecture design, which will be used for the development of CityDog app, has been depicted below. 9.0 Plan of Activities Human Resource Plan The prime intent of the application development organization will be to earn substantial revenue by offering CityDog app to dog owners and pet lovers so that they are able to locate dog friendly places along with accessing other relevant services. In order to develop the app, it would be vital to hire experts for designing it. Thus, three people will be hired in order to perform the task. In this regard, Brad Willis will be responsible for technical architect, Helen Daniels will be accountable for graphic design and Scott Robinson will be in charge for sales and marketing related activities. Marketing Plan The marketing plan will be based on marketing mix framework. The app will be targeted to dog owners and pet lovers. Accordingly, the dog owners as well as the pet lovers with the use of the newly designed app will be able to acquire information related to dog friendly places such as dog parks, emergency clinics, dog walkers, groomers, veterinarians and daycare centers. The price of the app will be based on premium type. Customers will be required to pay based on the data access as well as subscription basis. In order to promote the app, extensive use of inbound marketing will be used such as Facebook, Twitter, Blogs, emails and forums. The app will be delivered through various stores such as Apple store, Google store and itune store to the customers. Platform Management Plan In order to ensure effective platform management, physical along with virtual server will be installed. Specific attention will be allocated on storage capacity. Besides, Intrusion Detection System will be placed in order to ensure security of database from malicious codes. Besides, continuous feedback from users will be obtained in order to bring likely improvements and upgrade the app according to their expectations. A group of experts will be hired in order to monitor the activities related to the functioning of the app and for research along with development tasks. The following tabular representation portrays a brief idea about the plan of activities to be followed while designing the app. Areas Activities Human Resource Recruitment and Selection Marketing Pricing, Promotion and Distribution Platform management Server Installation and Security device Installation Conclusion Citydog is an app, which will enable pet lovers and dog owners to find dog friendly locations. Notably, the external as well as internal business setting of Australia is extremely favorable for launching the app. Nevertheless, the intensity of competition within the pet industry is identified to be relatively high due to the presence of numerous international and local app development based companies. Thus, in order to differentiate the app from those of the competitors, the strategies such as extensive use of digital marketing will be embraced. At the same time, to attain greater competitive position, significant attention will be placed on hiring a talented pool of human resources. The app will be available in two versions including free and premium version. The premium version users will have to pay nominal price for using the app. Twitter, Facebook and other related social sites will be extensively used to promote the product, while iTunestore, Googlestore and Applestore will be used to distribute the app to the users. Technical experts will also be hired for conducting operational management and upgrade-related activities. It is anticipated that the introduction of the app will be highly appreciated by the pet lovers and the dog owners. References Andersen, K., Bilditt, Collins, E., McCurry, T., & Swanson, C. (2009). Diversified communication services. Industry Report, 1-24. Australian Communication and Media Authority. (2011a). Emerging business models in the digital economy - The mobile applications market Occasional paper. Retrieved from http://www.acma.gov.au/webwr/_assets/main/lib310665/emerging_business_models.pdf Australian Communication and Media Authority. (2011b). The internet service market and Australians in the online environment. Retrieved from http://www.acma.gov.au/webwr/_assets/main/lib310665/the_internet_service_market_in_australia.pdf Cohen, S. (2013). App purchases by Australian consumers on mobile and handheld devices. 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Foley, P., Szkuta, K., OConnor., & Whitehouse, W. (2011). Pricing of public sector information study Apps market snapshot (D). Retrieved from file:///C:/Users/WIN/Downloads/PricingofPublicSectorInformationStudyPOPSIS-AppsmarketsnapshotD-finalreport.pdf Read More