Supple Software Company is an S Corporation founded and entirely owned by Ralph and Mabel Smith. The company was established in 1993. It has not received any outside investments. Supple has three software products, which command a large market share. Ralph and Mabel would like to see the company grow by 2000.
While Supple’s goals seem ambitious, they are achievable. In 1999, sales increased by 20% and the company plans to double its output in 2000. They expect net profit and gross margin growths to be proportional. Their goal is to have one employee for every $250,000 of revenue. Their flagship product, Product X will help them maintain a 30% market share according to PC Data. This goal will be maintained by following three keys to success: Market power, customer satisfaction, the right management and the right team.
The Market
Supple has entered a $3.8B market that will experience a 20% increase in the next three year. Supple will target four customer segments: professionals, academics, home offices and small offices. These markets are growing at 2%, 5%, 8%, and 0% respectively. These markets can support 22,000, 15,000 and 10,000 potential customers, respectively. These numbers are for the USA market. The market’s major trend is towards international sales. This market has experienced a significant rise in international PC product sales, which is largely due to the Internet boom. The US market has seen a 22% growth in the last 3 years. But, it is projected that the international PC market will grow at 40%.
Products
Supple Software currently sells three products. Product X is currently the top-ranked Windows task X software, and also the quality leader. It combines an easy-to-use, step-by-step interface full of guidance, help, and glossaries, with a powerful business analysis model, complete financial analysis, and very strong cash flow analysis. Product Y is a stand-alone task Y application for Windows. It is the best product on the market for creating task Y. Their last product was Product Z, which is a creative business process application.
The Strategy
Supple follows four straightforward strategies to achieve its growth goals. They will make customized versions and offer greater value to certain customer groups. They will create a solid marketing network. This will enable them to launch their products onto the market. Supple will remain focused on small to medium size companies, the segment that has been largely ignored by the competition. Supple will also focus on technology that is more suitable for the masses than leading technology for professionals.
Management Team
Ralph and Mabel are seasoned managers who are capable of executing on their ambitious strategies. Arrog International brings Ralph 10 years of marketing and sales experience. Supple, a software distribution business, was established by Ralph in 1993. He is responsible for its growth. Mabel will also be needed to grow the company. Her years of experience as an advisor will be used.
Supple Software, a dynamic company, was founded in 1993 from humble beginnings and has since grown to $1 million with higher revenue forecasts for 2000. It is remarkable that this was possible with only investments from the owners. There was no outside capital.
1.1 Objectives
- To double sales in 2000 and increase sales by 5% in 1999.
- To increase gross margin and/or net profit margin accordingly.
- For every $250K in sales, to limit the number of full-time employees.
- To maintain at least 30% market share of Product X, as measured by PC Data.
Success keys 1.2
- Marketing power. Market share. Our products need to be available on shelves with attractive packaging.
- Quality product and customer satisfaction. Every product we sell comes with a guarantee.
- Our survival depends on long-term customer satisfaction.
- A strong management team with solid foundations in finance, marketing, and product development. Enough working capital to survive in the working-capital-intensive retail channel.
1.3 Mission
Supple Software is a company that develops, publishes, markets, and sells business tools and business knowledge together in a product which includes software and documentation. It makes business techniques accessible to millions of business users who would otherwise not have the knowledge to use them. It is profitable and generates money. It offers a fulfilling work environment, fair compensation to its employees and a fair return to its owner, as well as a fair royalty to its authors.
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