The concept of the new product is to develop a product which meets the customer demands and satisfaction level. The new product is CSS (Corporate Software Sales) which company can produce to target the large number of customers in safeguarding their interests by providing them efficient solutions. In context to this, new software product will be produced by the company in order to provide the services to small and medium enterprises and also large enterprises (Burns, 2010). Corporate software sales (CSS) will support companies in developing a corporate planning software solution. This CSS product software will provide companies with an opportunity to use the best technology for improving their business processes.
In this business plan, it is also included that company will also provide the additional services to its customers in terms of consulting services. In addition, company will also provide the training to its customers for understanding the use of solutions which is purchased by them. CSS software product is very efficient and effective for improving and developing their business and also this software consist of business planning software package which help the companies to target the consumer market with new product (Ferrell & Hartline, 2010). In addition, this CSS software product is best suitable and best-rated selling product for small business plan. This software product will be provided to the customer’s indifferent versions according to the requirements and for that product will be modified to fit the business clients need.
CSS software product will also provide the support to the company in allowing the corporate sales force and franchises to use planning tools for achieving a high efficiency in their business processes. With the help of this, corporate sales force will able to develop an effective business plan for its customers by using an extranet. The use of extranet by sales force will allow the customers to develop the collaborative plan in their own account. In like manner, franchises will also get support from the product in creating a road map for their business plan which will be monitor and adjust by the corporate managers accordingly. Moreover, there are chances that companies can customize the products in order to work with other collaborative tools such as LotusNet and client mail applicants, etc.
Corporate Software Sales (CSS) software product will perform an essential role in analyzing the planning strategies and tactics of all potential clients’ in order to provide the consulting services to them. In concern to this, it is also stated that this product will also highlight the degree of aptitude in relation to the planning software and information technology (Finch, 2013). The goal of this business plan is to analysis and get ensure that all potential clients get solution according to their needs and capabilities which is best fitted. This software product is very helpful for the customers as it will help the customers or clients in deciding to purchase the product or not as well as provide the expert advice for their planning strategies.
In today’s developing technology environment, Software Company are getting various opportunity to enter in the Information technology industry where company can develop or produce a new software products which meets the requirements as well as provide the customers with the correct software solution (Parry & Tyson, 2013). The opportunity for the company is to expand their business in Australian market by diversifying the product in different version so that company can develop and improve their business operation in more efficient manner.
The strength of the company is easily implement the software product in order to improve the business processes. In this, the software product will help the business clients to easy adapt and use the software as it is user friendly software product application. This software product will be made available in customize form and this will lead to the growth in demand for the product (Boxall & Purcell, 2011). This will add the distinctive competences for company in Australian market as software product which will be offered to the customers are using the software in the operational activities of the business. However, the distinctive competency of this new software product is that it will be used by every organization be it SMEs or large organizations.
Market environment analysis
In today’s market environment, it s analyzed that this business will operate in the e-commerce business i.e., business to business e-commerce model. In this, business to business model, company operates its business or deals with other businesses for selling its products and providing software solution services. In this section, market environment of Australian market is study in-depth by segmenting the market on the basis of size, growth rate and target market (Griffin, 2012). The market of this business will be decided by sales force in concern to the companies which will be targeted by companies in different areas.
The size of the current Australian market is wide and for establishing a new business. The current market is highly competitive and risky for new entrants to target the market and customer segment. The growth rate of the Australian market is averaged by 0.8 % which is stronger than in first quarter of same year. This growth rate indicates that it is best opportunity for the companies to establish their business as well as achieve organizational goals efficiently to some extent (Hubbard, et al., 2014). The major segment of the market is business to business sector (commercial sector) and it is segmented on the basis of size of sales force and number of company.
The target customers are segmented in terms of sales operations which are excess of 100 direct sales representatives or 100 company franchises. The market will also be segmented on the basis of geographical and regional areas in order to carry out the business operations by targeting some Australian companies for key clients contacts are developed through meetings. The target market for the company is small & medium enterprises as well as large enterprises whose sales force provides to their business clients with the business plan or proposal in which they can collaborate with the company (Shepherd & Douglas, 1999). At the same time, companies want to sell their franchise rights and take active participation for achieving the franchises success.
In addition, market needs will also be identified and included in the business plan for strengthening the brand or customized products according to their needs and requirement. The market needs plays an important role in developing the speed, efficiency and information of the product of the company (Lee, 2011). The software product will allow the client to make efficient and quick business decisions and receive feedback from their end-customers. In simple words, identifying the market needs will help the managers to monitor the progress of the business and profitability and efficiency of employee.
Competitor analysis (Porter’s five forces Model)
Threat of new entrants
As Corporate Software Sales (CSS) software products deals with other business clients and this creates moderate situation of barriers of entry as Australian government have some well-defined rules and policies which new entrants company need to follow to establish their business sin Australian market (Alihodzic, 2013). For establishing a new business, there is high to produce a highly innovative product which attracts the target market easily towards it.
Bargaining power of suppliers
Bargaining power of suppliers is moderate in the It companies as there are large number of companies which are producing new application on frequents in different version for targeting large numbers of businesses process.
Bargaining power of buyers
Bargaining power of buyers is moderate as there are large numbers of sellers or suppliers who provides similar or different innovative software application which helps the companies to manage and develop their efficiency of business processes.
Threat of substitute
Threat of substitute products and services is high in the Australian market as the market of Australia is wide and highly competitive in the economy (McCartney, 2011). There are large numbers of information technology companies which are producing new applications software or hardware which provide satisfaction to business clients.
The industry rivalries of IT firms are high in today’s developing market environment as there are companies who are focusing to develop a new innovative product which satisfy the customer wants and desire. In Australian market, there are companies who are using an efficient and effective software application by updating their version in order to improve and develop their operational efficiency of businesses.
In this, competitive strategy is developed according to the business plan in order to achieve the competitive edge in the highly competitive market. The Australian market is highly competitive as there are so many firms which are already operating their business in same industry successfully. In regards to this, competitive strategy will be focused in-depth in order to develop competitive environment by marketing the business with different and innovative product (Cameron & Quinn, 2011). Under this, differentiation strategy will help the company to develop and achieve a competitive edge for the software product.
Differentiation strategy is competitive strategy which can adopts with an intention to create a products or services which satisfy the customers and add value to the customer preferences by providing unique products and better additional services in comparison to its competitors. With the help of this strategy, company will able to develop the products which innovative and unique features which meets the requirements of different customer segments.
Moreover, this competitive strategy will also support the software product in becoming a market leader in sales and consumer rating. In addition to this, company will focus on developing an innovative product so that it will become easy for other businesses to reach and differentiate product from other software products available in the market (Walker, et al., 2010). The software product will required to be produced by analyzing the market and customer needs so that company can develop a customize software products which provides high benefits and profit to the company.
To position in the highly competitive market then there is a high need to provide the customers with best quality of innovative product at a reasonable price so that large number of clients get easily get benefits of using the software in their business operations or processes. For successful market position, company will use the best competitive strategy and market strategy which will provide the support to the company in understanding the market trends and needs efficiently.
From the above diagram, it can be demonstrated easily that there are some companies which are also providing the similar products and serves in the similar market by targeting the similar or different market segment. But, through this, it will be analyzed easily that our CSS software product will develop its market position easily as company will provide the best superior quality of product at affordable prices in comparison to other competitors. The name of the competitor who produces software products are Callbox, Atlassian, Krux Digital, etc.
To position the company in the highly competitive market is very difficult, this states that company need to market their product and services efficiently so that it competitive with the existing products and services which are offered to customers for meeting their requirements (Boxall & Purcell, 2011). However, this study helps in determining that marketing strategies which support the company in launching a new product with innovative features. For positioning the CSS software product in the market, we will require to target the large organizations who are interested in desktop software applications which we customize and sell.
In market, the demand for software products similar to CSS software is high which indicates that there are some software products which are already reputations in the market. So, in this case, there will be need to focus and understand the needs of small, medium and large enterprises and their franchises needs so that this software product can provide them with the benefits (Kotler & Keller, 2009). In concern to this, it can be stated easily that while developing a new CSS software products, for that there will need to translate the requirements of organizations in to the correct software solution.
The organization structure of the company will be developed by considering a different segment of department which plays an important role in establishing a business successfully.
Organization Structure of Software Company
The above stated organization structure of software company illustrates that there are separate departments which are supervised by the general manager and CEO of the company. the departments will play major role are accounting department, administrative department, human resource department, manufacturing department. These all department will have their separate division of sub-department which will help the main department to make decisions and coordinates with superiors and subordinates efficiently.
The organization structure of the company will also involve a separate IT department which will help the company in developing new version or software which protect the confidential and important data from any fraud or misplacement (Prasad, 2011). For this business, there will be high need of separate IT professional departments who will lead the business to move to next level successfully. IRT department will include the IT professional management team, IT team leader and so on.
The ownership structure of Software Company is a proprietorship firm in which there is single owner who will invest to start up the business. The owner of the company will need to follow all rules and regulation which are to be considered and important for establishing a business in different market and in different country. The owner of the company will be obliged under a legal contract with a firm that he will be not use the profit of the company for personal use and invest more in business to make the company grow and develop globally. The owner of the company must need to understand that there will be chances that company will not achieve a profit from the business in first coming years.
The financial summary for this business plan is that for stating up a new business in Australian market, company will required some initial capital for establishing a business in the competitive market. In concern to this, company will need approx. $150000 for starting up a business efficiently and successfully. In this initial investment, the owner of the company will invest $90000 and remaining $60000 will be arranged from the investors who will invest in the company.
|Furniture and fixtures||33000|
The above stated table demonstrates the list of expenses which will incur during the establishment of the business in Australian market. At the same time, this table will be prepared on the basis of assumption of expenses and investment will incur in the business. This assumption will help in determining that financial performance and expenditure which can will incur while operating a business in the competitive market (Tysver, 2015). The scenario of establishment of the business is that owner of the company need to understand the market trends and customer requirements in advance before starting up business and making any expenditure.
|PRO FORMA PROFIT AND LOSS|
|YEAR 1||YEAR 2||YEAR 3|
|Direct Cost of Sales||$18,235||$22,564||$35,000|
|TOTAL COST OF SALES||$18,235||$22,564||$35,000|
|Total Operating Expenses||$74,920||$87,290||$110,290|
|Profit Before Interest and Taxes||$61,845||$71,426||$83,796|
From above forecast table, it can be determined easily that establishment of business in software development market will be profitable as company will start earning good profit from the first year, and will be increasing in coming year continuously.
|PRO FORMA CASH FLOW|
|YEAR 1||YEAR 2||YEAR 3|
|Cash from Operations|
|Cash from Receivables||$76,000||$85,500||$98,970|
|SUBTOTAL CASH FROM OPERATIONS||$156,475||$171,090||$209,018|
|Additional Cash Received|
|New Long-term Liabilities||$20,000||$22,500||$27,500|
|New Investment Received||$25,000||$45,560||$65,000|
|SUBTOTAL CASH RECEIVED||$201,475||$239,150||$301,518|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$118,500||$135,770||$150,207|
|Additional Cash Spent|
|Purchase Long-term Assets||$50,000||$70,000||$80,000|
|SUBTOTAL CASH SPENT||$168,600||$205,870||$230,407|
|Net Cash Flow||$32,875||$33,280||$71,111|
From stated above table, it can be interpreted that the cash flow assumption is highly somewhere accurate to establish or start-up any business. From this forecasted calculation, it can also be determined easily that cash flow of the company is stable as this will helps the company in maintaining an efficient liquidity position.
|PRO FORMA BALANCE SHEET|
|YEAR 1||YEAR 2||YEAR 3|
|Other Current Assets||$1,500||$2,321||$7,197|
|TOTAL CURRENT ASSETS||$34,955||$36,242||$79,248|
|TOTAL LONG-TERM ASSETS||$44,540||$63,245||$71,455|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$3,500||$5,645||$7,750|
|SUBTOTAL CURRENT LIABILITIES||$38,119||$42,304||$48,228|
|TOTAL LIABILITIES AND CAPITAL||$79,495||$99,487||$150,703|
From this projected balance sheet pro-forma, it can be determined that company will easily maintain a stable position in the highly competitive market as company has less liability in terms of total assets. This denotes that financial position of the company is efficient and effective for last three years.
In this section of business plan, ask is the bid price of the products which will be offered by the company from its customers. But, Software Company will keep the price of the software products after analyzing and understanding the other business client’s needs and amount which they can pay for the software product which will be offered to them (Parry & Tyson, 2013). Moreover, the offer price will be the price of the product which will be offered to the clients or customers who are prestige for the business growth and development or taking the first services of the product. The offer and ask are the bid price which will be potential buyers apply for using the company’s products and services.
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