Expand a company - Assignment Example

The proposed franchise business is computer assembly and repair. The idea is taken from Dell Computers where the company has several product lines depending on one’s computing needs and budget (Dell). The proposed franchise business will customized computers depending on one’s computing needs and budget only that customers will be given greater latitude to choose the performance of their computers at a price that is way lower than Dell. The opportunity in this business lies in the changing consumer behavior where consumers are becoming more price conscious due to their unpleasant experience in the last financial crisis.

They are now looking for value and savings which the proposed franchise can offer to them (Marketing Charts Staff, 2011). The risk that the proposed business is facing is market dilution. Meaning, the market and even the end users might copy the idea and just purchase the parts and assemble the computer by themselves thus making the company irrelevant. This risk and threat could be neutralized however by forging relationship with suppliers where they will offer the franchise significant discount in computer parts so that the discounted rate can be passed on to the customers making the company more attractive.

This is very possible when the business is already expanding because the franchise can now order in scale. The reduced price can also serve as a barrier to potential competitors by making competition tougher for them. Also, The franchise has to be paired with repair service as a technical and customer support to win and customer loyalty and as an added value to entice customers to customize computers instead of buying them ready made. If customer preference towards computers wil shift towards assembly, it will be favorable to the franchise and that would mean more business.

Works CitedMarketing Charts Staff. “US Consumers Display Price Sensitivity”. November 2, 2011. Marketing Charts.com. November 19, 2012 http://www.marketingcharts.com/uncategorized/us-consumers-display-price-sensitivity-19873/Dell. Home. November 19, 2012 http://www.dell.com/