SIT2LRN

Surname Kahlon

First Name Amanjot

Singh

Student id Number 2010000290

Name of course National

Diploma in Business L5

Facilitator Kay Jones

Assignment No. Assignment 1

US 1A-5103

Total no. of pages 13

Submission date 19/07/2010

Date received by facilitator

Date returned to student

Southern Institute of Technology

Product and Services: Hardware and

Software Technical support

Target Market: Invercargill

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Table of Contents
Product or Services.....................................................................................................3
Background and Concept for choosing this product or services:.............................3
Business Idea:.........................................................................................................3
Budget constraints:.................................................................................................3
Target Market:.........................................................................................................3
Services in offering.....................................................................................................3
KEY BUSINESS DEVELOPMENT STRATEGY..................................................................4
OBJECTIVE..................................................................................................................4
GOALS OF THE BUSINESS CAMPAIGN.........................................................................4
MARKET SEGMENTATION............................................................................................5
Home PC user market.............................................................................................5
Small Business users market...................................................................................5
COMPETITORS............................................................................................................5
Direct Competitors..................................................................................................5
INDIRECT COMPETITORS.........................................................................................6
FUNDING OF CAPITAL.................................................................................................6
ACTION PLAN:.......................................................................................................6
MANAGEMNT OF FINANCE EXPECTED COST IN RUNNING THE BUSINESS................9
MARKET RISK OBSTACLES..........................................................................................9
Risk factors..............................................................................................................9
Conclusion...............................................................................................................9
References...............................................................................................................10
References

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Product or Services: Computer Hardware and Software Repairs and

Support services.

Background and Concept for choosing this product or services:

Every computer user is affected by viruses or hardware malfunctioning. If the
customer is in warranty from the manufacturer they support the hardware
troubleshooting free of charge and replace the parts for the customers. But,
for the out of warranty or expired warranty support customers have to pay
for the services which prove to be expensive. The extended warranty
contracts from the manufacturers are expensive and do not covers a lot deal
of services. There is a huge pool of services that can be offered within this
umbrella but my focus would only be on Home and personal computer users
for these Services and to provide them immediate technical support to clean
up computer and remove viruses from their computer or backing up the data
in case the customer computer cannot boot to the operating system.

Computer repair services initially would be a one man operation. Hence, it is

pertinent that its growth would be limited to the owner’s capacity of taking
tasks and completing it. However, these first three month would be critical
as the business would derive its credibility and reputation. WOM-word of
mouth would play an important role, so it’s important that I will have to focus
on excellent services from the day 1 to the time I have portfolio of loyal
clients.

Business Idea: To provide low cost services based on the concept of “No
Fix No money” or the minimum labor charged for attempting to fix the
computer or diagnose the computer.

Budget constraints: $ 50,000.00

Target Market: Invercargill, Southland, New Zealand.

Services in offering
➢ Virus removals
➢ Operating system installation
➢ Printer installations
➢ Backing up data in case no boot situation because of virus
➢ Change up of hard drives in case hard drive has gone bad
➢ Bridging the gaps of helping customers to claim their warranty support
services
➢ Upgrading computer spare parts like memory, hard drives etch

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➢ Hardware Fault Diagnosis

➢ Sales of Accessories Like Keyboard, Mouse, Hard drives etc.

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KEY BUSINESS DEVELOPMENT STRATEGY

Developing online marketing plan.

Creating a website so that the users are aware about the services and to
create a customer base locally positioning of the website: sending the
message “No Fix No Fee”

Strategy 1: Develop a website to send across the message of “NO FIX NO

FEE”

Marketing features to include in the website:

➢ Customer experience and their testimony about the work done for
them.
➢ Question and Answers forum
➢ Contact information
➢ Briefly describe who we are and what we do.
➢ Promote “No Fix No Fee”

Strategy 2: Building website awareness

➢ Registering with Invercargill chamber of commerce

➢ All the contacts like Business cards, receipts email signature lines to
promote the website
➢ Register will all local directories, search engines and portals.
➢ Improving search engines ranking
➢ Advertising in the local print media and distributing pamphlets
regarding the services and on live available tools.
➢ To put meta tags
➢ Run classified ads to promote website and make people aware of the
website and services

OBJECTIVE
To make people aware of our product and services and reach greater
domain of the customers needing assistance but fearing cost not able to get
the services and cover almost 15 % to 20% computer users using computers
in the first year of operations.

GOALS OF THE BUSINESS CAMPAIGN

To target large number of home computer users.

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➢ To grow from 1 Technicians to 2 Technicians at work by the end of the

3rd month.
➢ To develop a robust system of Marketing via internet.
➢ To visualize the growth and make technology service affordable.
➢ To provide low cost computer repairs

MARKET SEGMENTATION
The existing computer market is so extensive that categorizing it would be
difficult. We can break the computer user market in two groups based on
their needs and requirements

Home PC user market

The home pc user market includes people who are novice and non-
technology savvy resident of Invercargill with at least one home computer.
Such people own computer to use it for emails, playing games, scan print,
photos or using the computer for the book keeping or accounting purposes
the home users hardware need would include monitors, keyboard mouse
printers and scanners.

This group is a faster growing in the region of Invercargill as the people are
getting more and more familiar with technology and use of computers and
emails.(-No secondary literature could be found)

Small Business users market

Small business users would be the market which would be using computers
for the purpose of business this is also a growing market. This market also
has a lot of potential as small business does not deploy any IT Professional
for up keeping computers and their employees lack the usage of computers.
The more intensive their computer usage is for the business the more critical
is to them that their computer work well and reliable and repairs is quickly
available at the time of need. Their hardware needs will include the same
items as home users plus servers, data backups, data storage and wireless
networking.

COMPETITORS
Direct Competitors
There are a few direct competitors in the area of Invercargill some of them
listed are as follows

1. Sothern computer services

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This business is located on the Esk Street and has the same services to offer
but it focuses more on the small business category as their mission
statement is “Providing Business Computer Services”

E media Southern computer services, 2010 visited on 10-07-2010

Website http://www.scsl.net.nz/index.html
2. Harris PC services

Another competitor but the area of specialization is website designing some

parts of the website is still under construction

E media Harris pc , 2010 visited on 10-07-2010

http://www.harrispc.co.nz/index.html

INDIRECT COMPETITORS
There are certain indirect competitors as well their core business is based on
accounting services but also provide computer hardware support to their
core customers

Computer Manufacturers Like Dell, Acer, HP, Toshiba

Support the computer till the customers have a Hardware warranty and do
not support Software Services.

SOURCE AMOUNT OWNERS CAPITAL

SELF FUNDING $30,000 $30,000.00

BANK LOAN $20,000.00 $20,000
$50,000

FUNDING OF CAPITAL

ACTION PLAN:
Website development

A website design and updating is a continuous process the first thing for the
online marketing plan will be to get a website designed and hosted on the
World Wide Web

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This requires

➢ Creating website designs

➢ Listing website on Domain Severs
➢ Maintenance of the website on monthly bases

The cost estimates of the website development are as follows the budget

Website designs $1600- $2000.00 converted to NZD $2248.50-2810.60

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Prices are based online cost of website calculation

Elements of Your Web Site: Rates Quantity

Basic Web Design $350/homepa 1

ge + $75 per I wish to have web

each extra site(s).
page Each web site should have
5

a home page and extra

page(s).

Ecommerce Sites- New Packages! $1350 and up 0

I wish to have shopping

cart(s) on my web site.

Custom Application (ASP, Perl, $1250 and up 0

PHP) I wish to have custom

scripts on my web site.

JavaScript Programming $75/script 1

I wish to have java

scripts on my web site.

Database Development $1250 and up 0

I wish to have
database(s) on my web
site.

Flash $100-200 1

I wish to have flash

movies on my web site.

Search Engine Optimization $50/page I already have a web site,

but I would like it to come
up in the top 10 listings in
major search engines. My
6

web site consists of

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pages.

Search Engine Submission $350/50 Yes, I w ould like

major search My web

engines and site to be listed in 50
directories major search engines and
directories.

1600

Total: $

This prices are estimates and hence we have taken a margin of USD $1600-
$2000.00 converted to NZD $2248.50-2810.60
I have chosen the website designer in USA with this budget the cost of the
Domain listing and Meta Tags are Free with Site listed at 50 major search
engines. Website designing cost for this purpose as compare to New Zealand
website design is approximately same as the website designing can be done
from anywhere in the world and so is the Domain listing I have chosen the
website designers in USA as with the website designing it offers free listing
on the domain server for a year.

Creating and displaying Banner Ads

Cost 125 x 125 Size Display Banners

Idea of the pricing $250 a month = $150*3= $450.00

The whole Budgeted expenditure for the campaign is as follows:

Expense 1st 2nd 3rd Total
Month Month Month Amount
Cost of Website
Development $2,810.60 - - $2,810.60
Listing on Search
Engines - - - -
Domain Listing - -
Service
Maintenance for $100. $100.
website- updating - 00 00 $200.00
Publicity Brochure
and pamphlets $500.00 - - $500.00
News Paper
Classified $600.00 - - $600.00

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Distribution cost
for pamphlets and
Brochure ( Based
on 1 person
wages $12.75 20
hours a month) $255.00 - - $255.00
Banners
Advertisement
on line (Cost 125
x 125 Size Display $150. $150.
Banners ) $150.00 00 00 $450.00
Miscellaneous-
Business cards, $42.0 $42.0
Receipts $100.00 0 0 $100.00
$275. $275.
TOTAL $4,415.60 00 00 $5,000

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MANAGEMNT OF FINANCE EXPECTED COST IN RUNNING THE

BUSINESS

own in the excel attached. $20,000

WORKING CAPITAL MANAGEMENT $20,000
PURCHASING 2 PC $1,500
EXPENSE ON BUYING TOOLS AND
EQUIPMENT $2,000.00
MARKETING COST $5,000.00
CASH AT BANK $11,500

MARKET RISK OBSTACLES

“Risk is one of the most overlooked areas in small businesses in spite of the fact
that it is clear to most small business owners that operating any business involves
risk. While taking a risk and winning is fun, prudent business owners take care to
minimize the risk, just as you would in any other type of risky venture you
undertake. A good risk management system is a continuous process of analysis and
communication”

E source Small business notes 2010 retrieved on 01-07-2010

Risk factors
Creating an awareness to the mass market

Fear of direct and indirect competitors

Pricing strategy associated with the Technical services is challenging. We will

be using a benchmarking technique to fix our price as compare to market.

Risk of under capitalization- we can meet this challenge by quarterly

assessing our financial needs

Conclusion

We know there is a market and demand for what we offer we just need to
focus on how to present it and get it right at the first time we will achieve
what we need to achieve and grow with the success of technology and
invention.

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References
E media Southern computer services, 2010 visited on 10-07-2010

Website http://www.scsl.net.nz/index.html

E media Harris pc, 2010 visited on 10-07-2010

http://www.harrispc.co.nz/index.html

E- Media online website design 2010 retrieved on 10-07-2010

http://www.importexporthelp.com/online-web-site-advertising.htm

Source: http://www.numatek.com/web-design/estimate.html

PC magazine April, June edition

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