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1. Internal analysis

In this part we are going to focus on the internal factors that give NextSense certain advantages and disadvantages in our country that will influence to our Marketing Strategy for their product Norton Antivirus Security. As following we will present the vision and mission, the 7S, and the 7P. 1.1 Company vision and mission 1.1.1 Vision The vision defines the dream that the members of NextSense Company have about its company. Their vision is actually what they intend to become or accomplish. The vision of NextSense Company is based on knowledge and innovation and by turning it into products and services, they empower their partners to achieve their goals in their communities. NextSense see themself in the future as a company acting worldwide. 1.1.2 Mision A well defined and written mission demonstrates that the company understands her own business, knows her direction and knows how to accomplish her objectives. NextSensework to translate the classic approach of doing business into an effective e-business solution. They involve ourselves in their industry so we can understand the challenges they face, and we educate them about the capabilities and requirements of the new economy.NextSense strives to improve visibility both domestic and regional market, to restructure for growth and development, expanding its product portfolio, developing new business models that will maximize value. Providing, maintaining and increasing the satisfaction of their customers is one of the important missions of the continuing work of NextSense.

1.2 7S The 7S are seven elements which need to be aligned and reinforcing in order a company to perform well.As following we will present this element:

1.2.1 Strategy NextSense specializes in building complete e-business solutions to improve business performance for wide range of companies, from start-up businesses to strategic initiatives for established companies. NextSense provides design, development and maintenance of custom tailored solutions as well as consulting

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and training services for their clients.NextSense is a Web Content Management System provider that believes in partnering with very specific companies: Interactive & Marketing agencies, web development companies and system integrators. Their strategy is to provide the leading edge web content management support that our partners need to complete their offering for their client and prospects. Horizontal focus covering many industries such as Government, Banking, Healthcare, Public sector, Education, Retails and Manufacturing. Business Partners of NextSense are Microsoft, Symantec, Crystal Decisions,Adobe, Corel and GFI.

1.2.2 Structure
CIO

NextSense is a well established NextSense company for implementatio of CEO and HR Assistant Microsoft based infrastructures in COO NextSense many large companies in NextSense Macedonia, with setting up more Administration than 1500 working stations NextSense atgeographically remote locations. The number of employees count Software 56 employees on different Sales and Marketing System department Design department development department positions The CIO is on the top of NextSense NextSense NextSense NextSense organization, he has the main power and responsibility to control the whole organization. Under the CIO is the COO , manager who is reporting only on the CIO while under his control are the four divided partition of this organization, which are development , system, design and sales&marketing section. The last and main important to us is sales&marketing section which is controlled and take order direct from the CIO. Under the CIO, there is an Assistant who is strictly respond to the request from the CIO. There is also an Administration which count 4 people responsible for the administrative tasks of this company.

1.2.3 Systems In order for your company to be competitive in today's marketplace, you need fast and accurate information available to the right people at the right time. Achieving this crucial goal requires software solutions that can take advantage of the most up-to-date technology in a format that meets your individual business needs. . Systems define the flow of activities involved in the daily operation of business, including its

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core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important work is to be done. . In the case ofNextSense, several systems are included.Human resource management system standardizes the process of employment. It builds information about the valuable resources as well as reducing time in searching through that information. Also, it is tracking system for the status of each candidate ,managing human resources for each candidate, assigning tasks for employees in the process of employment, tracking and managing status of employees and searching trough information stored about candidates and employees. . NextSense also has an Expense system. Expense system is an efficient tool for managing and reporting the expenses in your company. Through this system, the company previews budget status at a glance and makes a fast preview and on time reports for each expense made by employees. Also it can report expenses from anywhere in the world and manage all the project expenses. This system is extremely important for the budget planning. 1.2.4 Staff Staff refers to the number and types of personnel within the organization and how companies develop employees and shape basic values. NextSense people stand out from others. They can be recognized by their enthusiasm to a job, eagerness and desire for knowledge, innovating, work hard and work in teams. The company has around 56 employees, which number is constantly changing.Employees has been trained by the leading I.T. companies resulting in over 40 certificates. They are the leading training facility in Macedonia. There are 42 core personnel who respond to management who is count 8 members, admiration is count 4 members and 2 outsourcing support personnel. The company is encouraging strong team spirit to complete their tasks. NextSensestaff are enabled with Symantec technical training, exclusively available within the TAPP program. .. Expedited technical assistance NextSense staff have direct access to Symantec advanced level support in case any technical cases need to be escalated to Symantec. . Streamlined assistance our customers will receive value added services.

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1.2.5 Style

NextSensestrong team spirit helps to utilize the resources and to ensure that all the activities necessary to design, comment, develop and implement a product or service are effective and efficient with respect to the system and its performance and functionality. That is why NextSense management is dynamic and influential to all employees which are below.This is the only way to keep all employees motivated. By discovering the specifics of your business environment, understanding the market you attack and entering into your highest wishful dream, they create synergy that strengthens your ideas and further more adds value to the initially desired service. So, the style of NextSense together with its strategy makes consumers feel confident in choosing this product and makes brand awareness. 1.2.6 Skills The companys team excels in meeting the fast-changing demands and complexities of large-scale business engagements.They offer to help customers develop and use a new business model by applying cutting-edge technologies to customers business processes. Their expertise will help costumers to reduce production time and costs of their next project, so theyll gain competitive advantage and cost-effective solution. They offer several areas of technical expertise including infrastructure, networking, office automation, e-commerce, collaboration and other leading edge disciplines. Their services include consulting, training, implementation, maintenance/support, and hosting services. Next Sense offers experienced, industry-certified project managers and developers who will work with you to develop effective customized software solution. Whether it's integrating or converting their existing IT systems to client-server or Intranet/Internet solution, or developing new applications in n-tier application architecture, they are ready to provide customers with the efficient software solution their company needs. 1.2.7 Superordinate goals Next Sense is dedicated to the success of every employee. Their commitment to innovation and success in the workplace ensures that they remain a leader in the technology arena. Next Sense has open and relaxed environment that create a positive and fun ambience. They have an unprecedented culture that is created by: Casual dress Flexible and Part-time Hours Professional yet trendy office space Employee assistance services and work/life services

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Providing Professional Growth Opportunities

Next Sense is committed to providing employees with the opportunity to continually develop their professional skills through intensive in-place or world leading technical courses. Employees are always encouraged to take advantage of professional growth opportunities offered by the company. Next Sense is committed to integrity, quality, customer focus and respect for others. These core values are grounded in their corporate culture, in their employee relationships, and in their relationships with the companies partners and customers. The Next Sense human values are the driving force of the entire company.

1.3 7P We all know how important the elements of the 7Ps are, so we made a short review of NextSenses 7Ps and they are listed below. 1.3.1 Product Norton Antivirus Security

Norton Antivirus was engineered around the Intelligent Threat Protection concept: its core technology, the Norton Protection System, uses multiple layers of security that work together to proactively block attacks and remove threatssomething that traditional virus detection methods cannot achieve. In addition, all downloads, files and applications are checked before you can use them on your computer. Security holes in your operating system and browser are guarded so no infections can get to you that way. Your emails and Instant Messages are always scanned to detect potential threats. Norton Antivirus has top-notch performance: fast and light on system resources, it uses Norton Insight to scan only files that are at risk. Norton Antivirus protects you against today's "rapid-fire" attacks, for which "signatures" don't yet exist. This is done with Norton Insight Network, which uses Symantec's global security network to extract information about the very latest threats and prevent them from getting to your computer. Also, the SONAR 3 technology uses online intelligence and proactive monitoring to

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detect and block new threats. Finally, Norton Pulse Updates allow frequent, small updates of Norton Antiviruss threat database, meaning it is as current as can be in terms of latest threat detection. Norton Antivirus gives you information on threats that it has detected and removed so you know exactly what is going on with your computer, thanks to Norton Threat Insight. Norton Antivirus helps you keep your PC running at top speed with automatic and on-demand application optimization. Its Norton System Insight feature gives you a log of recent events such as downloads, installations, scans and detected threats so you can get a better understanding of what is slowing down your PC. It also provides you with resource usage graphs which help you pinpoint resource-heavy processes. So why buy Norton Antivirus 2011? Here are 5 key advantages of this award-winning product over other antivirus programs available on the market: You are protected against viruses but also spyware, which means you don't need to buy a antispyware program. That equates to more protection for the same price and less headaches to try and make different pieces of software work together. Get peace of mind: after an installation that typically lasts less than a minute, your PC is protected for one year against most online threats for just over $3 a month. Performance is unmatched by the competition, as measured by independent thirdparty test lab PassMark Software: Norton Antivirus 2011 is extremely light on system resources, using around 8 MB of working memory. It also has the fastest scans in the industry: only 61 seconds on a Hard Disk Drive and 31 seconds on a Solid State Drive. Worry-free, automated protection: thinking about trying one of these free antivirus programs? Think again, unless you are willing to update the software yourself every day to keep it current, unnecessarily slowing down your computer - when you actually don't forget to do it. On the other hand, Norton Antivirus 2011's performance impact is minimal; product updates are automatic, frequent and small in size so their download and installation are quick and unobtrusive. 24/7 technical support is always FREE and accessible directly from the user interface. You can choose between email, phone or even chat.

Functions: Enables safe surfing on internet and provides complete protection on your PC without installation of additional stand alone programs for antivirus, antispam or antispyware protection. Provides more secure and more convenient protection unlike unlicensed (pirate) versions of security packages available on internet for free download. Blocks and prevents customers Internet identity theft. Protects sensitive data and personal information (username, account number, password, pin code etc.)

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Detects and eliminates spyware, viruses and Internet worms. Protects e-mail and chat (MSN, Yahoo messenger) messages from viruses and spam. Regular database and software updates, hot fixes and virus news that enables protection from newest threats. Norton Internet Security 2008 includes: Antivirus Personal Firewall Antispyware Identity Safe Antiphishing Antispam Parental Control

Additional products: Hosting Hosting Solutions

Next sense offers hosting solutions - Application solution for fully automated web hosting, from online creation of hosting plans to complete administration, billing and statistics. Next Sense Hosting Solution as a fully automated WEB Hosting, solves many problems associated with serious WEB Hosting, including: Reduce costs for creating and maintaining WEBSite Hosting Minimize billing procedures Dealer/Reseller Control Panel which gives web-based interface to administer customers accounts, place orders online, create customized Control Panel interfaces for their customers. It is possible to control what the customers can see, what actions they can perform, and, best of all, it is possible to brand it with dealers / resellers own corporate image. Users own Control Panel with: Interface for changing privileges to folders/files DSN configuration for database access Configuration of Front Page extensions Email administration

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Human Resource Management System

HRMS is a product which automates and standardizes the process of employment. Next Sense HRMS offers many benefits for the customers like: Reducing time in searching trough informations about each candidate. Engaging all resources in your company in employment process. Building valuable resource of informations about experts.

Expense System

Expense system is an efficient tool for managing and reporting the expenses in your company. The key benefits of this Next Sense product are: Decentralizing the process of entering expenses Preview budget status at a glance Fast preview and on time reports for each expense made by employees. Reporting expenses in your company from everywhere in the world. Tracking and managing project expenses. Various reports for administration and budget planning. Web Builder

Web Builder is a leading product in the NextSense's range of e- business tools, designed to standardize and automate the process of creation, editing, management and publishing of contents on your Internet, Intranet and Extranet site. WebBuilder enables the web users create content and respond to the demands of the clients, partners and employees for timely and accurate business information.

The implementation of webBuilder will result in reduced costs; you will overcome the potential obstacles in web communication by facilitating the processes of creation, editing, management and publishing of the web contents and at the same time you will provide easy use, as well as accuracy and consistency of information. eBuilder

eBuilder is a tool that will enable successful building and management of your internet shop. Your complete product range will be accessible to your clients and your everyday expenses will reduce. Using the Next Sense eBuilder will provide some advantages for the company like:

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Increased productivity of your business Reduced time for marketing your product by an immediate creation and promotion Improving business decision- making. eBuilder will provide quality customer behavior analysis, ordering info and requests info of your clients. These analyses will support your decision- making process with valuable customer information.

1.3.2 Price Norton antivirus security in Macedonia is sell by partner of Nextsense , Telekom who is selling this product in two way or two prices to two different segmented markets. Depending of the way in which you are buying this product there are customers who have already sign contracts for using Telekomsservicesand customers who have never used their services. While the same product, with the same characteristic in other countries in Europe , for example UK is sold for 40.00 , because of the different level of standard integration. Discounted price and payment terms for MaxADSL customers* Norton Internet Security -price: 1.050 den for payment on first telephone bill or in cash - installment (1/12): 94 den for payment on 12 installments on telephone bill -price: 1.853 den for payment on first telephone bill or in cash - installment (1/24): 83 den for payment on 24 installments on telephone bill

Norton Internet Security 1+1

Regular price and payment terms Norton Internet Security - price: 1.280 den for payment on first telephone bill or in cash - installment (1/12): 114 den for payment on 12 installments on telephone bill

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Nortin Internet Security 1+1

- price: 2.342 den for payment on first telephone bill or in cash - installment (1/24): 104 den for payment on 24 installments on telephone bill

1.3.3 Promotion Promotion involves disseminating information about a product, product line, brand or company. It is one of the four key aspects of the marketing mix. NextSense is promoting their product online using their web sites: www.nextsense.com. NextSense is also using flayers, posters etc. It also uses the social networks Facebook and Twitter. They have Facebook page where they constantly update their information in order their customers to know what is new(http://www.facebook.com/NextsenseFB) .Also Next Sense devotes much attention to public relations by participating in many seminars, conferences and business forums. Also they have collaborations with the students. In that way they build credibility with their customers. 1.3.4 Place The distribution is an important part of the selling process for every company. The way inwhichNextSense use its distribution method is through retailers to end users.This method includes intermediaries, transport and reverse logistics. Intermediaries- NextSense products are spreader in Macedonia through their intermediary Telekom.Telekom sell the product in a package with some of their services to the final customers. Transport NextSenses product can be downloaded online for use by end users. It can be installed on a network-accessible server and software can be accessed from a network location, anywhere and in anytime. Reverse logistics - if the customers have some problems with the product, Telekom have a customer support center which is able to support the customers and to help them with their problem with the product. Customers need to give detailed explanation of their problem, so Telekom and NextSense will respond appropriately to them .

1.3.5 People Nextsense counts 56 person. Their Staffhas been trained by the leading I.T. companies resulting in over 40 certificates from which they made stuff that have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for.This company doesnt have marketing department instead they have mutual department with sales where they create marketing strategy and they are responsible to integrate marketing with the business strategy.

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1.3.6 Process Norton antivirus security is a product who is sold in physical locations of Telekom. Customer can search information for this product online, using the main portal of this company www.telekom.com.mk and from banners placed on other sites in our country. Another way to find information about this product customer can visit a store where he can find further information and if he want he can sign a contract and pay with cash or visa/maestro card and he will receive Norton antivirus security box which include: CD with software that you should install on your PC and activate with the activation key placed on the backside on you CD cover. One activation key (license) is valid only for one PC. Short installation manual (Detailed technical manual can be find on the following link) Norton Internet Security installed on your PC protects it from the internet threats 1 year period, which begins upon initial installation and activation of the software with the activation key.

1.3.7 Physical evidence Physical evidence is the material part of a service. Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations. There are many examples of physical evidence, including some of the following: Its web page; brochures; paperwork; furnishing of the company; uniforms of the employees; business cards; mailbox; and other. Web page-Next Sense has got an Internet web page. There are represented all information about the company, their work, products, customer testimonials partnerships and the services that they are offering. They have also their own profiles and groups on social networks like facebook (http://www.facebook.com/NextsenseFB) and twitter (http://www.twitter.com/Nextsense_mk). The good thing about these social networks pages is that they develop deeper relationship with the customers. Building-Next sense building, contain office spaces and is located in the city centreLeptokarija. Next Senses macro location is in Skopje, Macedonia and its micro location is on PartizanskiOdredi 62. It is the companies office, where all main events and

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meetings are taking place. There is no physical store for the products, they make contracts with their costumers in their offices and the implement their product or service in customers companies.The design of the building gives appearance as established and professional company.

External analysis 2.1 PEST factors 2.1.1 Political factors

InMacedoniathere arelawsandregulationswhich constitutethe regulationofinternaland external markets. With the implementation ofsuchlawsandregulations, i.e. lawsregulatingthemarket, the stateachievestoaffect on consumer protection, managedtocontrol thesafetyofproductsandso on. There are several legal regulations which must be observed by all participants in trade in order for itto besuccessfullycompleted like: the law on consumer protection, the lawonprotectionofcompetition, lawforthe safetyofproducts and the law of technicalinsection. The law on consumer protectionregulatesthe protectionofconsumer rights, conditionsandmannerof consumer protection, the terms oftradethat areofimportanceforconsumer protection, rights and obligationsofconsumersassociations andauthorities of thecountryinterms ofprotectionconsumers. The trader is obliged before the conclusion of the sale contract diligently and honestly to give to the consumer accurate information about the quality and identifying characteristics of the product or service in relation to conditions of sale and any other information requested by the consumer contained in the Declaration of Product, to informthe consumeraboutthe impactof certainproductson human healthand theenvironmentaccording toregulationsandstandardsandmeasuresforprotectionthroughinstructionsgiven by theproduct. If thetraderdoes not actaccording torulesconsumercanreturn thepurchasedproductand thetraderisobligedtopromotethe returnedproduct. It prohibitsconditioningthe purchaseofproductswithpurchase ofotherproductsorothermeansofconditioning. The trader should with clear, unequivocal and tangible way to emphasize the selling price of goods. Also there are certain rules which must be observed to advertise products. Misleadingadvertisingofproductsandservicesisnotallowed.Comparativeadvertisingispermittedonl yiftheconditionsprovidedby law are followed, alsoprohibitedisadvertisingwhichoffendshumandignityand cancausephysical, emotionalandotherdamages. Also inMacedoniathere areregulationsgoverningelectroniccommerce. Theselawsregulateinformation society servicesrelatingto electroniccommerce, the responsibilities of serviceproviders,commercialcommunicationsandrulesconcerningthe conclusionof

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contractselectronically. To sell Norton Antivirus, Next Sense has to satisfy some conditions. The company has to possess licenses. The license for Norton Antivirus is about 800 .Essentially thereare not any specific legal restrictions but barriers and limitations in the availability and distribution of NextSenseproduct.Thereis the national strategy that prevents the spread of piracy, they help NextSense in keeping the copyright.

2.1.2

Economical factors

Macedonia has maintained macroeconomic stability with low inflation, but it has so far lagged the region in attracting foreign investment and creating jobs, despite making extensive fiscal and business sector reforms. In the wake of the global economic downturn, Macedonia has experienced decreased foreign direct investment, lowered credit, and a large trade deficit.Agriculture and industry have been the two most important sectors of the economy in the past, but the services sector has gained the lead in the last few years. Economic problems persist, even as Macedonia undertakes structural reforms to finish the transition to a market-oriented economy. A largely obsolete industrial infrastructure has not seen much investment during the transition period. Labor force education and skills are competitive in some technical areas and industries but significantly lacking in others. Without adequate job opportunities, many with the best skills seek employment abroad. A relatively low standard of living, high unemployment rate, and modest economic growth rate are the central economic problems. The electronic economy in Macedonia is not developed, but it is in a growing phase. Exactly this fact is the main advantage for companies that practice e- commerce, because they dont have strong competition. Having a small, open economy makes Macedonia vulnerable to economic developments in Europe and dependent on regional integration and progress toward EU membership for continued economic growth.Macroeconomic stability was maintained by a prudent monetary policy, which kept the domestic currency at the pegged level against the euro, while interest rates were falling. As a result, GDP growth was modest, but positive, in 2010.

GDP

2010 2009 2008

GDP (purchasing power parity): $19.46 billion $19.21 billion $19.31 billion

GDP (official exchange rate): $9.17 billion / /

GDP - real growth rate: 1.3% -0.5% 4.5%

GDP - per capita (PPP) $9,400 $9,300 $9,400

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2.1.3

Social factors

Socio cultural theory emphasizes the social nature of learning and the cultural-historical contexts in which interactions take place.Through the influence process is generated and managed change in the social world.Interpersonal influence exist in literature of social science a large body of information on how, why and when the influence process works most effectively.Also there are the social norms like other psychological appearance a construct that has widespread usage because it helps describe and explain human behavior.Several norms about social and cultural behavior are: customs, traditions, standards, rules, religion, fashions and all another criteria which are standardized as consequence of the contact of individual. The price of Norton Antivirus is much lower in Macedonia than in other countries, because the social status of the people. Here the standard is lower than in other European countries. Although Norton here is cheaper it is still kind of a luxury to have it. People instead buying original Ant viruses, they often use pirate version and by doing this, they expose their computer in danger. The customersbehavior has to be changed in order buying original antivirus to move into habit. NextSense has collaboration and provides services needed by the government. They had developed some solutions for improving the e-society in Macedonia. The use of computers is a trend, daily habit, need and factor nowadays, so the most important factor that contribute this is the inevitable use of technology. Also, like mentioned before, the government provides support to NextSense with conducting anti-piracy campaign .

Flagship solutions by Industry Govt: e-Cabinet Government of the Republic of Macedonia Government of the Republic of Albania e-Parliament Parliament of the Republic of Macedonia Assessment - Parliament of the Republic of Kosovo Assessment - Parliament of the Republic of Albania Government Process Management System Cabinet of the Prime Minister of the Government of the Republic of Macedonia General Secretariat of the Government of the Republic of Macedonia Ministries of the Government of the Republic of Macedonia Ministries of the Government of the Republic of Albania (in process) Legislative Knowledge Management Official Gazette of the Republic of Macedonia Online Services Portal Uslugi.gov.mk - the Government of the Republic of Macedonia

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Apply Online Civil Servants Agency of the Republic of Macedonia Automatic Distribution of Licenses Ministry of Transport & Communication of the Republic of Macedonia Government HRMS Civil Servants Agency of Macedonia Ministries of the Government of Macedonia Employment Service Agency of Macedonia Anticorruption asset declaration management information system Anticorruption agency, Macedonia e-Employment Portal Employment Service Agency of Macedonia 2.1.4 Technological factors

Technological factors include technological aspects such as, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Norton is well affirmed brand in Internet security. Because it is a technical product it is updated constantly so it can meet customers needs. In 2009 in Macedonia there were 1 057 000 millions Internet users. This is opening a lot of opportunities for selling them Antivirus program. However, the rate of technological changes in Macedonia is lower than in other European countries. That leaves place for innovations and bringing on our market quality brands such as Norton Security. NextSense follows the latest technological innovations and in accordance with the law, the quality and prove, it represents a product that would selected the most of the consumers in Macedonia.

2.2 Porter 5 competitive forces This framework will help us to determine the competitive intensity and the attractiveness of a market for Norton Antivirus Security. 2.2.1 Bargain power of buyers

Bargaining power is the ability to influence the setting of prices. For our product , we have a market where there are a few more products or substitute that can be bought instead of Norton Antivirus Security . The bargain power of buyer is high because if Norton antivirus security does not fulfill the desire of buyers they can easily substitute this product with product with the almost same performances but with lower price. In addition to this in the fact that in our
The bargain power of buyers

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country most of the potential buyers are using free samples of this product or substitute of it and they dont understand that or realize that they have to buy the product to be fully protected from malware and viruses. . Furthermore the switching costs or the cost of switching from one sellers product to another sellers product are low which gives high power of buyers to influence in the whole process. The market for this kind of product is increasing and have a great potential to grow. This mean that the buyers are not concentrated and their power to bargain is low but it is moving to medium. No threat of backward integration because buyer arent capable of producing the sellers product themselves the bargain power of customers is low. As we can see there are far more factor that indicate high bargaining power of BARGAIN buyers and we have two factors that indicated low buyer bargaining power, POWER OF SUPPLIERS from which we can conclude that bargain power of buyers is medium to high. 2.2.2 Bargain power of suppliers

The bargaining power of the supplier in an industry affects the competitive environment for the company and influences the companys ability to achieve profitability. Strong suppliers can pressure companies (buyers) by raising prices, lowering product quality, and reducing product availability. All of these things represent costs to the buyer. A strong supplier can make an industry more competitive and decrease profit potential for the buyer. On the other hand, a weak supplier, one who is at the mercy of the buyer in terms of quality and price, makes an industry less competitive and increases profit potential for the company. In our case the company operates with finished product so the suppliers that provide the inputs for making the product are insignificant. Also the company gets its product directly from the manufacturing company so the suppliers have no impact on the price and the quality of the product. Other determining factors about the bargaining power of the suppliers are: the buyer price sensitivity, product differentiation and substitutes available. For our company specifically for our product (Norton antivirus) the buyer is price sensitive or the lower the price the higher the likelihood of buying. Also mostly the product is undifferentiated or the customers know that they need that kind of product and know what it is used for but they dont make a difference among the products that perform the same work and they are not familiar of the features of the specific product (Norton antivirus). And last, Substitutes are available at the market. So judging by the previously exposed analysis we can decide that the bargaining power of suppliers is low which makes the industry more attractive and less THREAT OF NEW competitive.
ENTRY

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2.2.3

Threat of New Entry

The competition in an industry will be the higher the easier it is for other companies to enter this industry. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it. The threat of new entries will depend on the extent to which there are barriers to entry. These are typically economies of scale, or decline in unit costs of the product, which force the entrant to enter on a large scale and risk a strong reaction from firms already in the industry, or disadvantage of costs, or product differentiation, or brand identification and customer loyalty, or capital requirements for entry (the investment of large capital, switching costs, or the cost the buyer has to absorb to switch from one supplier to another),or access to distribution channels and cost disadvantages. . . Norton AntiVirus has a Low Threat of new entry. The possibility for a new company to entry in this business and produce a similar Antivirus like Norton is difficult because first the time and cost of entry are too high, that means that the high capital requirements for entry presents a significant risk for the company, than they need employers with experience, they need time to differentiate the product, to indetificate a brand and achieve customer loyalty. Another important fact that makes the threat of new entry low are the cost disadvantages, Next Sense already has product technology, access to raw materials, favorable sites, advantages in the form of government subsidies, and experience. The access to distribution channels is not easy. New entrants have to establish their distribution in a market with established distribution channels to secure a space for their product. Distribution channels are controlled by existing players and the existing Threats of players have close customer relations.
substitute

2.2.4

Treats of substitutes

Norton Antivirus, developed and distributed by Symantec Corporation, provides malware prevention and removal during a subscription period. It uses signatures and heuristics to identify viruses. Other features include e-mail spam filtering and phishing protection. Norton is not alone on the market in Macedonia. There are substitutes that can easily replace it, and take its place on the Macedonian market.For example we have Kaspersky Antivirus and McAfee.Kaspersky Anti-Virus is an antivirus program developed by Kaspersky Lab. It is designed to protect users from malware and is primarily designed for computers running Microsoft Windows and Mac OS X, though a version for Linux is available for business consumers. In Macedonia , you can buy Kaspersky from KableTel for 1100 denars and licence for KIS for 3200 denars for 1 year. Kaspersky Anti-Virus features include real-time protection, detection and removal of viruses, trojans, worms, spyware, adware, keyloggers malicious tools

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and auto-dialers, as well as detection and removal of rootkits. It also includes instantaneous automatic updates via the "Kaspersky Security Network" service. You can also download Kaspersky from its official web site. . McAfee VirusScan is an antivirus program created and maintained by McAfee Inc. The product is not available as a standalone package, but is included in the McAfee VirusScan Plus package or as part of McAfee Internet Security Suite. McAfee also produces a similar product for Mac OS X under the name of VirusScan for Mac. Additionally, BSkyB and McAfee have produced a "Sky Broadband" branded version of VirusScan, offered free to Sky Digital customers upon broadband modem installation. . BitDefender is an antivirus software suite developed by Romania-based software company Softwin. It was launched in November 2001, and is currently in its thirteenth version. It is pretty cheaper from Kaspersky, for 650 denars for year and a half. You can find BitDefender in Anchoch Computers. Norton Anti Virushas the capability to detect both Macintosh and Windows malware. Other features include a vulnerability scanner, which blocks attackers from leveraging software exploits. It also includes the ability to scan within compressed or archived files. Although Norton has many advantages and features that differs it from its substitutes, the threat of substitutes is high and Norton should develop a strategy that will Rivalry help influencing customers into choosing Norton instead the competitors among products. existing
firms

2.2.5 Rivalry among existing firms

Among the products of NextSenses competitors there are some differences that make the rivalry lower, because in industries where exists differentiation the rivalry is low. As we have seen there are some differences between the substitutes and switching costs reduced the rivalry. As we can see in the table for the competitors products, the level of differences between their products are low, so on this field the rivalry is high. The economies of scales effect provide low fixed costs, so in this field the rivalry is medium. From our point of view we can say that the rivalry among existing firms is medium and it is moving to high.

Bargaining power of buyers

Bargaining power of suppliers low

Threat of new entrants

Threat of substitutes

Rivalry among existing firms

Medium to high

Low

high

Medium and it is moving to high

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2.3 Customers& Competitors 2.3.1 Customers Next sense is a company that has a license for selling Norton antivirus Security in our country. The main intermediary is Telecom which sells this product alone and in a package with some of the services they offer. The customers can purchase the product in a package with 3 Max, Call & Surf, Optic and MaxADSLservices.The product is available by Telecom only to business customers. Our assignment is to reach companies that could sell the product and wider customers that need antivirus services. Ways and manners in which we will attract this target group are explained later, so now we will focus on the current customers and the ways in which NextSense manages to retain them. Identifying the key customers and their needs is essential for reaching a good position in the market. Potential customers are people who are using services of Telecom and generally internet users who want to protect their computers from malware and viruses. Of great importance to NextSense is to build and retain an excellent relationship with its customers, which leads to spreading this product and satisfying the current customers. 2.3.1.1 Current customers NextSense works with companies and business customers and their main goal is to provide better services for their customers in order to increase their satisfaction and loyalty. The company did research about the satisfaction and loyalty of their costumers and they got the least results.

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2.3.2

Competitors Description Norton Internet Security was engineered around the Intelligent Threat Protection concept: its core technology, the Norton Protection System, uses multiple layers of security that work together to proactively block attacks and remove threats- something that traditional virus detection methods cannot achieve. Norton Internet Security gets top ratings among Internet security suites, which combine antivirus software with a firewall, spyware protection, spam filters and parental controls. Instead of purchasing individual software, an Internet security suite is a one-stop solution. Adventage
has top-notch performance: fast and light on system resources, it uses Norton Insight to scan only files that are at risk. provides complete protection on your PC without installation of additional stand alone programs for antivirus, antispam or antispyware protection. Blocks and prevents customers Internet identity theft protects you against today's "rapid-fire" attacks, for which "signatures" don't yet exist has the fastest scans in the industry: only 61 seconds on a Hard Disk Drive and 31 seconds on a Solid State Drive. Protects sensitive data and personal information (username, account number, password, pin code etc.)

Competitors Product Symantec Norton Internet Security

Kaspersky Lab

Kaspersky Anti VIrus

Kaspersky Anti-Virus features include real-time protection, detection and removal of viruses, Trojans , worms, spyware, adware, key loggers malicious tools and auto-dialers, as well as detection and removal of rootkits. According to Kaspersky, "Kaspersky Security Network service allows users of Kaspersky Lab security products from around the world to help facilitate malware identification and reduce the time it takes to provide protection against new (in the wild) security risks targeting your computer

Advanced antispam technologies. Rapid reaction to new spam mailing Convenience for administrators. Efciency and scalability

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McAfee In

McAfee VirusScan

McAfee markets VirusScan to home and home-office users; McAfee also develops VirusScan Enterprise for use in corporate environments. The product is not available as a standalone package, but is included in the McAfee VirusScan Plus package or as part of McAfee Internet Security Suite.McAfee also produces a similar product for Mac OS X under the name of VirusScan for Mac. Additionally, BSkyB and McAfee have produced a "Sky Broadband" branded version of VirusScan, offered free to Sky Digital customers upon broadband modem installation.

On-access file scanner (McAfee OAS) Inbound and outbound firewall protection Spyware protection Daily definition updates McAfee X-Ray rootkit detection McAfee SiteAdvisor displays a safety rating for websites based on tests for evidence of spam, malware and phishing McAfee SystemGuards monitors a computer for activity that may be caused by virus infection or hacker activity Detection advantages Performance advantages Protection from the Unknown Built for Speed Finds Malware Other AV Companies Missed

ESET

NOD32 Antivirus

ESET NOD32 Antivirus, consistently achieves the highest accolades in all types of comparative testing and is the foundational product that builds out the ESET product line to include ESET Smart Security. ESET NOD32 combines punctuality, speed and an extremely small system footprint to create the most effective security solution in the industry. NOD32 is antispyware, antivirus without slowing down computer while work.

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SWOT analysis

In this section we explored the Strengths, Weaknesses, Opportunities and Threats. We used the information in the internal analysis section to draw the Strengths and Weaknesses; and the information from the external analysis to draw the Opportunities and Threats. These three attributes and external conditions we place them in a matrix called SWOT Matrix.

O Opportunities

O1

O2

O3 Governments campaign antipiracy

T1 Strong competition

T2 Low switching cost

T3

Growing demand for IT products

SWOT MATRIX

S S1

Strengths Well organized internal structure and management Strong brand awareness Strong customer network Weakness 2,6,6,6,6,6 2,6,6,6,6,6 2,2,6,4,2,2 5,3 5,3 3 4,2,4,2,4,2 6,4,2,4,4,4 6,6,4,6,6,6 3 4 5,6 6,4,2,4,2,4 4,2,4,2,2,2 4,4,2,2,4,4 3,6 2,6 3,3 2,2,2,2,4,2 4,2,2,2,2,4 2,2,6,6,4,2 2,3 2,6 3,6 4,4,4,4,2,4 6,4,4,4,4,2 4,4,2,2,6,4 3,6 4 3,6 6,6,6,6,6,6 2,6,6,6,6,6 6,6,4,4,2,6 6 5,3 4,6 6,6,6,6,6,2 6,2,2,2,4,2 2,2,2,2,2,2 5.3 3 2 2,2,4,2,2,6 2,2,4,2,2,2 2,2,2,2,2,4 3 2,3 2,3

S2 S3

2,2,2,2,2,4 4,6,4,4,4,6 4,4,4,4,4,4 2,3 4,6 4 4,4,4,4,4,6 2,4,6,6,2,4 6,6,6,6,6,6 4,3 4 6

4,4,2,4,4,2 4,4,6,4,4,4 4,4,4,4,6,2 3,3 4,3 4 6,6,6,6,6,4 6,6,4,6,6,6 6,6,6,6,4,6 5,6 5,6 5,6

W1 Lack of distribution channel W2 Low level of promotional activities W3 Price sensitivity

Growing bargain power of buyers

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Arrival of new technology

Threats

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3.1 Strategic options SO1 : Use the advantage of well organized internal structure and management to incorporate the arrival of new technology in the work. ( S1, O1 ) SO2 : They should use their strong customer network to take advantage of the governments antipiracy campaign. ( S3, O3 ) SO3 : Next Sense should use the well established brand name to avoid the growing of bargain power of buyers. ( S2, T2 ) SO4 : Strong customer network should be used to deal with competitors, to maintain low switching costs and to minimize the bargain power of buyers. ( S3, T1, T2, T3 ) SO5 : The arrival of new technology and growing demand for IT products will increase if the number of distribution channel increases too. (W3, O1, O2 ) SO6 : Next Sense should reinforce the level of promotional activities in order to facilitate the governments antipiracy campaigns. ( W2, O3 ) S07 : They have to improve the level of promotional activities to face the exiting competition, to minimize the switching costs and to reduce the bargain power of buyers. ( W2, T1, T2, T3 ) SO8 : Be aware of the low switching costs and offer post purchase service to stay competitive and keep pace with the competition. ( W3, T1, T2 ) SO9 :Use of strong consumers network to beat competition.We must use our strong customers network in order to avoid price wars with competitors and to attract customers (S3 T1) 3.2 Strategic formulation After evaluating the strategic options we came to a conclusion that SO5 and SO7 are most appropriate options to create an effective and successful strategy. In order to respond to the strong demand for IT products ,NextSenseshould use their strong customer network and strong brand awareness on the Macedonian market and should increase their promotion activities as soon as possible. With the increase of the promotional activities on the Macedonian marketit is expected thatthe result will be differentiation of the product and increasedsales in the near future.

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4 . Communication and Marketing Objectives

The objectives following our strategy should be SMART which means specific, measurable, achievable, realistic and time-related. From this option we will later develop the objective, the strategy and the communication mix. From our strategic options we created the following options: Corporate objectives Through marketing activities brand differentiation will increase for additional 40 % till the end of this year Improving NextSenses web site in order to satisfy the customers needs Marketing objectives Toprovide integrated marketing activities to increase the sale for 20 % during 2011 In 2012 increasing sales of additional 10 % Communication objectives Increasing awareness toward the product by 60 % till the end of the year Increasing the number of trial downloads by 40 % till the end of the year Change attitude toward the product by 20 % during 2011

5 Determining the target market: segmentation, targeting and positioning

NextSense specializes in building complete e-business solutions in order to improve business performance for wide range of companies, from start-up businesses to strategic initiativesfor established companies.Very important is the fact that is very sophisticated company where the perfection is a starting point. The success is proven by the spread on international level and the earned confidence of its customers. 5.1 STR(Strategy, Tactics, Positiong) Segmentation: Customer market Region : Macedonia Level of education: Fundamental education, medium education and higher education. Income: 10 000 -15 000 denars ; 15 000-20 000 denars and above 20 000 denars User status: None users, users that use indirect substitutes, users that use direct substitutes (competitors users)

Business market Size of the company: Small enterprises; Medium enterprises and Large companies

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Users status: None users, users that use indirect substitutes, users that use direct substitutes (competitors users) Type of industries: transportation equipment, including automobiles, ships, and aircraft;airplanes; armaments; textiles and apparel; cement; chemicals; consumer products; electronics;IT companies; telecommunications equipment, real estate, tourism.

Targeting Customer market Customers with medium education and higher education Customers with incomes from 15 000-20 000denars and above 20 000 denars None users and users that use direct substitute Business market Size of the company: Small enterprises; Medium enterprises and Large companies Type of industries: IT companies

Positioning

This product is low involvement and we will use functional positioning by stressing the features and benefits of our product. We will use pull strategy which will provide to use to increase level of awareness, change and reinforce attitudes and reducing the risk about purchasing this product. Pull strategy The first and most important step is getting the attention and awareness of the end-users. The brand of NextSense is well developed and familiar in our country which give us potential advantage to extend awareness about our product to medium level. For this purpose we will use Advertisement and Direct marketing.

6 New Marketing mix

6.1 Product Norton Internet Security provides virus threat prevention, detection, and repair software for your computer. It automatically detects and repairs known viruses and threats. Norton Internet Security detects threats in instant messenger attachments as well as in email messages, Internet downloads, and other files. Norton Internet Security includes expanded detection and repair of both known and emerging security risks, such as spyware and other files that could put your computer at risk. Easy updating of the virus definitions over the Internet keeps Norton Internet Security prepared for the latest security risk. Norton Internet Security continually monitors your computer and protects it from known and unknown risks. Norton Internet Security is a very impressive security solution, offering a complete lineup of robust features and a whole new approach to online security. As one of the best antivirus software available, Norton Internet Security continues to improve their software, and in turn improve customer security. With continued innovation and effective implementation Norton should keep customers happy.

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We think that there is no need for some significant modifications because Norton Internet Security is easy to use because it dont requires previous knowled ge in computers or antivirus software, it automatically detects and repairs viruses. Norton should only continue improving the products features in time.

6.2 Price The price for Norton Internet security is 89 denars per month or 1.054 denars for one year and in our opinion we thing that this price is suitable for Macedonian market, which in total gives a brand recognition for this product because it is not the product with the lowest price , but product with medium price which will provide this product to be purchased not only by the highest class but purchase from the middle as well. Furthermore if we decrease the price we may create brand erosion. 6.3 People Today NextSences company counts 56 employees. The employee structure is well organized and should be remained like it is. The only changes that should be done is employing more people in the sales & marketing department, whose main occupation will be developing marketing campaign and promotions of the products. 6.4 Place NextSense distributes its product through retailers to the end users. This method includes intermediaries, transport and reverse logistics. Once the company has made their presence, it is important for them to have a quality product and service delivery. NextSense is already proven company on the Macedonian market and its products are used widely. There is no need for additional locations, so there is no need for change in this element of the marketing mix. 6.5 Process This part includes the process of delivering Norton Internet Security to the end consumer. In our opinion, we think that NextSense should not make any changes in the process of delivering and it should stay as it is.

6.6 Physical evidence Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. We suggest that NextSense should build web page which should include case studies, testimonials or demonstrations about the product. The web page should remain to be easy-to-use so it wont frustrate the customers and destroy their experience. The expectations of the customer can be successfully met in the future with

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the providing of personalization so the experience of the customer on the web site becomes more satisfying.

6.7 Promotion Communication objectives Increasing awareness toward the product by 60 % till the end of the year Increasing the number of trial downloads by 40 % till the end of the year Change attitude toward the product by 20 % during 2011

Our suggestions on this field is using will be a combination of online and offline advertising and direct marketing in order to build awareness and change the attitudes toward the product. Offline advertising promotion Considering the fact that people spend most of their time in the real world, we will use some of the offline techniques in order to generate site traffic. Offline advertising is going to be pursued through commercials created mostly for the print media. The commercials will contain the web site address where customers can find the needed information about the company and the product and build awareness in the target market. Magazines: Commercials will be placed in well known IT magazines as well as in magazines with business content. More precisely, in the following magazines: We use advertising in the magazines because we can better target female population and reach them more easily. We suggest using commercial in this magazines: Kapital (Macedonian economic oriented magazine), Enter (Macedonian magazine oriented to IT content)

Leaflets:

We suggest sharing leaflets on events such as charity events , public places, seminars, presentations and even in the Telekom's stores .

Online advertising promotion As we know our target audience is user who use computers and most of the time are connected to the internet.In addition to this we decided to use Banners and Links on internet websites which will increase the awareness of the potential customers toward our product. Placing interesting and dynamic banners on the most visited sites will provoke interest for clicking on it and visiting the site.

Banners: www.t-mobile.com.mk; www.kajgana.com; www.on.net.mk www.tocka.com.mk;

www.idividi.com.mk; www.zazabava.com.mk; www.t-home.com.mk

Social networks: using the fun page for t-home

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Direct marketing

Direct mail
We will use this online promotion by using the existing customers list from Telekom. According to the researches more than 70 % of Telekoms customers have access to the Internet and have active e-mail address. We think that this instrument will be very effective because are active Internet users are potential readers of e mail ads and potential buyers of our product. When used wisely e-mail advertising can be very cost-effective method for acquiring customers and supporting the existing clients. First, there must be different databases categorized separately (for ex users and for current users) because different groups need different information. E-mails send to different customers will be with different background in order to attract them for further reading. Creative solution

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