The aim of venturing in this business shall be to tap on theever-growing market in the world. The business will be dealing withdeveloping new hand held smart phone Apps, Apps, code and script. Thecompany will be designing the Apps and selling them directly to thecustomers as well as outsourcing expertise to other companies indeveloping Apps. The outsourcing business is expected to be themainstream of the business. This is because many companies that haveonline sites do not have enough expertise of making Apps out of thesesites. The in-developed Apps will be sold on the ‘Apps Store’where the customers will be able to download into their smart phonesand other gadgets. The ‘Apps Store’ is accessible to any personwho has iPhone, iPad, and any other handheld device capable ofdownloading from App stores.
The current market trend is shifting from the computers usage intothe use of more reduced gadgets. A high number of the people arecurrently using the smart phone and while a big number is switchingto the smartphones. This creates a much-expanded market.Companies Apps will target a specific need that is in thesociety. The needs that shall be targeted mainly are thesocialization need. The company shall develop advanced Apps and sellthem to companies like Facebook, Twitter and what’s App. This shallserve as the company’s differentiation method. In order toenhance innovation in the company, the company shall come up withvarious programmes for encouraging youths to be more innovative. Thecompany shall buy Apps from the youths who develop most innovativeApps.
A team of five people shall lead the company. The first person shallbe in charge of general management. The functions of the generalmanager shall be to coordinate, plan organize, direct and assist inbudgeting. He shall be in charge of ensuring that all the processwithin the business goes in line with the mission of the company. Themanager shall liaise the company with the external partners andensure that the activities are run in a smooth way. The other leadershall be in charge of marketing. The marketing personnel shall ensurethat the developed products are received well in the market. He/sheshall collect the market statistics, do research on the currentmarket need and advise the development team accordingly. The personin charge of the marketing will ensure that all the best channelsthat can easily reach the target customers are used. He/she shallalso serve as a public relations officer charged with cultivating therelationship between the company and the external parties (Sinofsky &Iansiti, 2010).
The third person shall be in charge of finances. The person shalldevelop innovative ways of getting fund for the company. He shall beanalysing all the available sources of fund and advice the companyaccordingly on the best way to use. He will be responsible forkeeping the books of accounts as well as preparing the financialstatements for the management use and for the use by an externalstakeholder. The finance officer shall appropriate the available fundto all the units as per their budgets. The fourth person shall be incharge of logistics within the company. He shall facilitate the flowof information, ordering of products and ensure that the developedApps reach the target customers in the most efficient way. The finalperson shall be in charge of innovation in the company. He/she shallbe charged with the mandate of ensuring that innovation is boosted(Sinofsky & Iansiti, 2010). He/she shall come up with the mostinnovative techniques of facilitating participation of members of thepublic and the company’s internal staff during the development ofthe innovative Apps.
On top of the management team, the company shall also have tentechnical persons. They shall be charged with developing thetechnical work such as developing Apps, acting as consultants toother companies and designing Apps as per the request ofexternal parties. They shall also do any other duty that shall beassigned. The company shall be located in a strategic place where theconsulting companies can easily access it. In order to facilitatecommunication with customers all over the world, the company shalldevelop and online communication platform, which will allow the staffoffer response to all customers’ queries.
The company shall institute various marketing campaigns that will beaimed at ensuring that the customers have the knowledge about theApps. The first campaign strategy shall be to get the first group ofusers who shall be required to rate Company’s Apps. Therating shall be used in the marketing Adverts The Company shallliaise with Google Company to run its adverts on the most visitedwebsites. Although the company targets all the people who use smartphone, the statistics indicate that youths form the majority of thepeople who use smart phones. As such, the company shall place theiradverts on the websites that are mostly visited by the youths thesewebsites include social sites, Universities and colleges sites andother websites that target the youth (Boulos et el, 2013).
Print and electronic media shall also be used in the first phase ofthe advertisement. Although, the print and electronic media come at acost and are limited in the number of people that they reach, thecompany shall use them to target a certain region. In the printmedia, the company shall place adverts about its services and itsdevelopment products on the leading magazines, newspapers and otherknown print media. This will help to reach people who do not visitwebsites on a regular basis. The electronic media will be used toreach areas that do have a well development internet system, whichfacilitates online interaction. In the area where internet is veryexpensive, the most efficient way of reaching people will by theelectronic media. The company shall seek to develop high quality Apps(Leontiadis et el, 2013). The development of quality Apps andoffering high quality services will make the company benefitfrom the word of mouth marketing.
Different sources of financing shall be used. The company shall needa starting capital of $5000. This will cater for ten computers, whichshall be used as the starting Assets. The high quality computer isexpected to trade at a cost of $370 each. This makes the total coatof all the computers to be $ 3700. All the other office equipmentssuch as chairs, tables, telephone connection lines and licensing areestimated to cost a total of £1000. A good programming programme isexpected to trade at $ 200. Other miscellaneous costs including thecost of internet are expected to cost a total of $100. This meansthat the beginning capital of the company will be $5000.
The company is expecting to source half of its money from thecontribution of the five leaders who will be the main shareholders.They shall contribute $500 each. $ 500 of the money is expected tocome from the venture capitalist who shall have interest inthe business (Brigham & Ehrhardt, 2014). The company shallthen apply for a loan from a bank for the remaining amount of money.The company expects to operate at a loss in the first three monthsthen the profit of the company shall start to increase gradually. Theprofit growth is expected to be contributed by the establishment ofthe company and development of the company’s reputation in themarket. The company shall use the growing profit to expand itsoperations.
App development is very new sector. The sector is dominated by veryfew firms and individuals. Given that many people are shifting fromthe use of features phone to the use of smartphone, the Apps sectoris expected to grow exponentially. The company intends to enter themarket when it is at the early development stage so that it canestablish itself before the sector becomes too competitive. Thecompany intend to capitalize on innovation in order to positionourselves in the market. The Apps market is wide as it deals withboth outsourcing consultative services to the companies as well asdeveloping and designing Apps for direct sell to the customers.Therefore, the company is expected to grow very fast and earn itselfmany customers.
Boulos, M. N., Wheeler, S., Tavares, C., & Jones, R. (2013).tTHow smartphones are changing the face of mobile and participatoryhealthcare: an overview, with example from eCAALYX. Biomedicalengineering online, 10(1), 24.
Brigham, E. & Ehrhardt, M. (2014). Financial management:theory and practice. Mason, Ohio: South-Western.
Leontiadis, I., Efstratiou, C., Picone, M., & Mascolo, C. (2013,February). Don`t kill my ads!: balancing privacy in anad-supported mobile application market. InProceedings of the TwelfthWorkshop on Mobile Computing Systems & Applications. NewYork: ACM.
Sinofsky, S. & Iansiti, M. (2010). One strategy organization,planning, and decision making. Hoboken, N.J: Wiley.