MM IT Solutions Case Study (Essay Sample)

MM IT Solutions Case Study
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SWOT analysis on MM IT Solutions
SWOT analysis refers to a framework for analysing the internal and external environment, as well as the resources available to a business. SWOT analysis is a crucial tool for strategic planning and identifies four key aspects. Firstly, it identifies the internal strengths such as unique resources, strong brand name, and financial capabilities among others. Next, the analysis considers the internal weaknesses such as poor organizational cultures, lack of key managerial staff and operational inefficiency among others. Thirdly, the analysis evaluates the existing opportunities in the external environment such as market niches and unsatisfied demand. The final aspect that SWOT analysis considers is any threats from outside the business. Threats may include changes in market preferences, increase in competition and legal regulations among others.
Strengths
MM IT Solutions has qualified IT staff to move the business forward. The business mainly involves general and specialist programming, assembling and repair of computers, network solutions, system design, broadband installation, and system maintenance. These activities require expertise in computer technology that the business already has. The founder of the business, Millom, is an IT expert, and so are the IT engineers. This shows that the business has a great future; in as far as, the nature of the business is concerned.
Weaknesses
The management of MM IT Solutions lack various key skills required for the business to grow. For instance, the recent appointment of a financial director has revealed that the management lacks key financial skills, which is evident in the findings of the new financial director. According to the director, the business lacks sufficient control over general expenses and credit facilities. The business has poor purchasing facilities and budgetary control. The management has given too mush focus on the technical part of the business such that areas such as marketing have been neglected.
The resistance to the Millom’s action to bring most of the systems under the same roof by employees indicate an internal weakness. According to the case study, some have even threatened to leave. The disunity between Millom and the workers may have negative impact on the business.
The business has been expanding rapidly giving rise to the need for a bigger premise. The current premise is congested, and this will continue since the business is expanding each day. The current environment is not conducive for fruitful business operations.
Opportunities
The current growth in the IT industry is a great opportunity of the business. The industry is growing rapidly giving rise to the need for new IT systems and solutions. What could be a new IT technology today could be outdated within months or weeks. From the case study, it is evident that MM IT Solutions has been receiving numerous enquiries regarding emerging IT aspects such as e marketing, e-auctions, and e-procurements among others. According to Millom, the business must grasp this opportunity.
Threats
The rate at which the nature of the IT industry is changing is alarming, and poses a threat to MM IT Solutions. The systems that the business offers might be required in future owing to the emergence of new and better systems. This means that the business will at one-point experience shortages in demand for their current systems. This means that the business will have to conduct continuous research in order to offer current systems and technologies in the industry.
Areas of major concern
Financial management is a vital area that the business has neglected. This has resulted in poor budgetary control and poor accounting practices among others. The business should hire competent financial staff to maintain the books of accounts. This will give clear details of the business’s revenue and expenses, as well as measures to maximize revenues and minimise expenses. A qualified financial manager will be responsible for making budgetary allocations and advising on the financial feasibility of key business projects.
Marketing is vital to any business since it communicates the products and services of the business to potential and existing customers. This calls for a competent marketing team to market the business. The business should also give sufficient budgetary allocations to the department in order to allow for extensive marketing activities. This will result in increase in sales, and consequently profitability for the business.
Owing to the constant changes in the nature of the business, the business will have to set up a research and development unit. This unit will be responsible for tracking the changes in the industry’s technology. The unit will analyse emerging technologies, and recommend a course of action for the business depending on the feasibility of the technology. This will ensure that the business has the best current technology offers for customers.
The business is growing at a rapid rate and the growth will continue in the future. Therefore, the business will have purchase a new premise that will accommodate all business comfortably without cramping. The business should consider the feasibility of buying a premise, or taking the offer by the Local Business Development Agency to lease a premise for 10 years.
The location of the business is also of significance. The location of the various systems will obviously affect the operations of the business. For instance, locating all systems under the same roof experienced a lot of resistance from workers. The business should focus on a location or locations that workers are satisfied with, and that affects positively on the business.
Market segmentation and targeting
Segmentation is a marketing concept that involves dividing prospective buyers into several segments or groups. The market has segments according to the different needs of customers such that each group represents similar needs. This way satisfying the needs of each segment becomes easier since a business will target the needs that are common in a specific segment by use of the media available to that segment. Market segmentation enables businesses to respond to the needs of various market categories of customers who have different perceptions of the value of a product or service. Market targeting, on the other hand, refers to the process in which a business identifies the needs of a specific segment for which to market its products or services. Targeting specific segments allows a business to focus on a small segment of the market, connect with customers, and increase sales. For this reason, MM IT Solutions will have to engage in market segmentation and targeting.
Segmentation will help MM IT Solutions understand the needs of customers in a better way. This will involve understanding the needs of different customers, and the differences in their perceptions of value. Segmentation will assist the business develop the profiles of profiles of the different types of customers. Such profiles are useful when developing products for the target customers, as well as the marketing strategies. Segmentation will also help develop the best messages for the different market segments. Customers like to receive information or messages that are relevant to their needs. Segmentation will help MM IT Solutions to determine which customers are low, medium, or high value customers.
Market segmentation will also assist the business in developing distribution systems that are more efficient. Different segments will have different buying patterns and behaviours. Studying such behaviours will help the business determine whether customers prefer buying from the business premise or via the internet. This way, the business can focus resources on the most popular avenue in order to maximise profits.
Targeting, on the other hand, will enable MM IT Solutions to concentrate resources on particular segments identified during segmentation. Targeting will enable the business to strengthen its brand name. This is because the business will have a clear idea on its customers, their needs and preferences, and their buying patterns.
Targeting ensures that a business focuses its advertising efforts depending on the needs of each market segment. Targeting will help the business focus on the different demographics of customers. They include age, income, gender, household size, and geographical location among others. Different groups of customers will require different approaches of advertising. Targeting will assist the marketing department of MM IT Solutions to determine the best marketing messages for each segment. This way, the business can create promotional and advertising campaigns to communicate the brand message to a particular segment effectively. This will lead to increased sales, and consequently increased profitability.
Market segmentation for MM IT Solutions
MM IT Solutions will segment its market into four segments namely; online customers, business customers, students and households. Each of the four segments have similar needs concerning why they demand computers or computer services. Segmenting makes the targeting of each segment easier for the benefit of the business.
Online customers
These customers order, as well make payments for the orders online. Such customers have a reliable access to the internet and online payment systems. Such customers mainly demand software programs mainly for business purposes. The main type of advertisement for this segment involves digital marketing.
Business customers
These customers demand business solutions and equipment. The computers demanded by this segment are usually for business purposes. Such customers need computers with high speeds to avoid slowin...