Nerd Patrol (Research Paper Sample)

Nerd Patrol
Name
Institutional affiliation
Date
Executive Summary
The rate at which institutions and individuals are constantly increasing their demands for computers and their related services is always on the rise. This situation presents a ready opportunity for entry into such a service industry to counter the demand with provision of top notch services. Nerd Patrol has identified this gap and intends to fill it by establishing a company that will flourish.
Overview
Nerd Patrol is a company founded with the aim of providing its potential customers with quality computer services. The company will limit its services to both local small businesses and home personal computer users with a wide range of networking and computer services. Some of the services and support they will provide include upgrades of hardware and software, hardware repairs, debugging software problems, network problems, and training. The business will begin by launching a fully-fledged operation. It intends to lease an office in a metropolitan area with plenty parking space and access to the major highways. This will ensure steady sales from the onset and throughout the lease period which is five years. New personnel will be hired to meet the additional service and support as the sales increase.
Nerd Patrol’s business strategy will be to offer the best services and support to customers at affordable prices. The goal of the business is set the standards of computer solutions via fast, convenient service and response. Customers will always receive the undivided personal attention and the highest quality of customer service. In addition, Nerd Patrol will endeavor to meet the needs of its customers. It will do so by outsourcing skilled technicians where the need may arise. This will happen mostly where there will be a rise in demand from customers due to new technology in the market. It will do so at the most affordable prices to help mitigate such contingencies during their operations.
Nerd Patrol has two main competitors which it intends to outdo by identifying and exploiting their weaknesses. It will do so by advertising initially in the local newspaper. The ads in the newspaper will include Nerd Patrol’s grand opening and coupons that offer free computer diagnostics and discounts for repair or software updates to the first 25 customers to step through the doors. The intent will be to grow their customer base and ensure that keep they retain the customer once he gets their services.
Environmental Scan
When venturing into new territory like the company intends to, it is important to analyze the market that they will be operating. By understanding the dynamics of the industry, the company will be better placed to compete favorably against the other players. Nerd Patrol Company is likely to encounter the five forces that control business competition. The first force that Nerd Patrol Company will face in entering the market is the threat to market entry. These are threats that newcomers face against established firms. Numerous factors cause barriers to entry of new firms. For instance, Nerd Patrol needs large capital investments to penetrate the markets. They need large capital investments to counter established firms in the business. Secondly, Nerd Patrol faces threats from the bargaining power of its suppliers. Strong supplier bargaining power is a threat to Nerd Patrol Company because it will trim down its profit margins. Strong power of suppliers will also imply that it cannot alter its product and service prices. Thirdly, the company faces threats from strong bargaining power of consumers. Consumers may demand products and services from Nerd Patrol Company at reduced prices. If consumers in the new market have strong bargaining powers, this may also reduce the profit margin of Nerd Patrol.
The other threat to industry competition is the threat of substitutes. Nerd Patrol will face competition in the new market if there are other companies providing similar IT products and services. Consumers may opt to use these substitutes especially if they are readily available and inexpensive as compared to Nerd’s services. Lastly, Nerd Patrol faces the threat of rivalry among established firms. Nerd’s competitors may offer their services at large discounts to outdo it in the market. Such a rivalry will lead to low profitability for the computer business. The intensified competition might also render it bankrupt or out of the business.
Sources of competitive advantage
The company has various sources of competitive advantage. For example, Nerd Patrol relies on its human capital for competitive advantage. The company has a competent leadership that will steer it towards success. The three partners in the company possess different skills in ICT and management. They will combine these skills for the mutual benefit of the firm. The company is also recruiting skilled employees in its workforce. They also intend to train and educate their employees on sophisticated information and communication technologies. Through their human capital, Nerd Patrol will provide superior computer services to their clients. They also derive their competitive advantage from strategic marketing. The company’s employees and management are engaging in tactical marketing. They are promoting their services in the local newspapers. They also plan to offer free diagnostic services to their first 25 clients. Through this strategy, they will attract more customers and retain their new clients.
International entry modes
The most appropriate international entry mode that Nerd Patrol Company can employ in entering the Canadian market is through joint ventures. The company should look for another established computer firm in Canada and enter into an agreement with it. This strategy is appropriate because it will enjoy the already existing markets. By forming a joint venture, Nerd Patrol will overcome most of the aforementioned threats to entry. The company and its partner will also have reinforced abilities to counter competition in the market. Numerous factors could affect the entry into the Canadian market. Political and legal factors may affect the entry of Nerd Company into the market. For example, the Canadian Government stipulations require highly skilled participants in the ICT industry. Therefore, the company has to ensure that all their employees are highly experienced and educated in the field of ICT. The social factors in the country include lower birth rates and aging population. This implies that Nerd will have trouble in recruiting new employees in the country. The aging population also suggests that they will fall short of clients. Economic issues in the country include a high GDP. This will play to the advantage of Nerd Patrol. The country has also grown technologically. This factor will help Nerd Patrol in different ways.
Environmental analysis and forecasting
Nerd Patrol Company will use the four models of environmental analysis before engaging in the ICT business. The company will scan the environment to determine all potential obstacles. Potential barriers include insufficient capital investment and unskilled personnel. However, it can overcome these hurdles. The company will monitor the environment to establish emerging patterns and trends in the ICT industry. Monitoring will also give Nerd Patrol the chance to carry out in-depth analysis of pertinent environmental patterns in the ICT business. It can engage in forecasting to predict future patterns and changes.
Forecasting helps companies in predicting future threat and opportunities in their operations. By performing forecasts, the company will identify critical variables that affect IT businesses. Lastly, Nerd Patrol Company should do assessments to establish the impacts of the firm’s operations. The potential impacts involve creating job opportunities for youths and other unemployed populations. Other impacts include improving the living standards of Nerd Patrol’s employees and management. By consolidating all these features, Nerd Patrol Company is in the right position to revolutionize the ICT industry in the US and Canada.
Marketing Plan
Through the development of the business plan, this stage proves to be the most crucial in determining how well the company will be poised to take off on the right track towards continued profitability, and success on service delivery. A proper marketing plan entails understanding the target market the position to be taken in regard to other competitors that are already operational in the industry (Cohen, 2006). The tactics to be used will differentiate Nerd Patrol Company from the competition in the market and help them reach the intended goals set in term of sales and penetration. Before developing a marketing plan, we will need to evaluate the budgetary allowance for such an undertaking. This will allow the management at Nerd patrol to analyze the costs of the marketing plan within a set timeframe. The marketing plan will be focal in the penetration of the company to a new market. The key to achieving success with a marketing plan is to be flexible and not restrict the company to the set budgetary allocation or criteria (Cohen, 2006).
Nerd Patrol Company is targeting supply of computers and provision of after sales and maintenance services to small and medium sized companies in the local area. They also have their sights on sales to individuals on a retail basis. The emergence of new companies is on the rise with more and more people venturing into entrepreneurial ventures. These new ventures are modernized and desire to expand their reach to a wider reach of customers through the internet. This can be achievable through the use of computers and the internet. Individuals are also getting varied uses for the personal computer apart from the traditional document wr...