Business Plan For Digital Business Strategy

Canvas for Business Model

Discuss about the Business Plan for Digital Business Strategy.

The name of the business is ‘Webstar’. This is a web and graphic design solution company. The company is primarily focused on the web design and development solution delivery. In addition to that the other solutions related to web and internet such as the web content writing, social media promotional post design and SEO (search engine optimisation) are also part of the service pack that the company offers to its customer. In the recent time the growth in the web traffic, access to internet through the mobile devices and faster network provided the growth opportunity of the online content. The market is expected to reach more than $1bn by the year 2017 (Ibisworld.com.au, 2017). The growth and demand for the quality and creative service in the industry is high. There the business would try to provide the highly satisfying, creative and up to date design and development solution for the web sites and web based services.

The main focus of the business is the business customer. in recent time every business need to make some online presence to become successful. There the primary requirement is the well developed and mobile friendly website of the business. in the geography based segment the business primarily focus on the city based businesses for the development of website or the up-gradation of the current  web site. In the recent time the mobile devices became the main contributor of web traffic. There every business needs to have a mobile friendly optimised design. That is why there is a large demand for the existing website up gradation work (Sharma and Lambert, 2013). That is why the business would primarily focus on this segment. The other segment that the business would focus is the online promotion of the businesses. Basically the service would be given to increase the traffic in the main business website of the client. There the SEO service, content creation for the blog, and the social media promotional post would be designed for the promotion.

The main value that the business would provide the business clients is the one stop solution for the online presence and promotion development. Generally the web design companies are more focused on the website development and the maintenance of it. The businesses have to look for other service provider for the online promotion activity. There the ‘Webstar’ would provide unique solution where all the online related promotional solution would be delivered by the company (Anderson et al., 2006).

Customer Segment

The minimum value product of the business is the ‘complete service pack’ or CSP for making online presence. This CSP would provide the services related to website design and development, web site maintenance, developing online content, designing social media and online promotional graphics. This highly differentiated service would be useful to persuade the business clients to buy the service. This CSP would be useful for the retention of the customer. The reason is that the most of the service that this pack is providing is long term and the clients would be asked to renew the service pack occasionally (Moogk, 2012). At the time of renewal the feedback provided by the clients would be used for the future service pack development.

‘Webstar’ is providing the specialised web related service to business clients. Here the main channel that the business would use is the direct sales channels (De Vries, 2006). The sales personnel of the company would directly interact with the business clients for selling the CSP. The business buying behaviour is technical and complicated and time consuming. There the sales personnel to provide them valuable information to them for making the purchase related decisions.

Customer relationship is one of the important aspects for the service marketing to the business clients. ‘Webstar’ would aggressively try to pursue the customer acquisition process. But the business needs to retain the customer in the long run of the business. There the business would collect and store the customer related data. The information related to purchase, type of service used, customisation delivered and purchase decision making factor would also be developed. The feedback of the delivered services would also be stored and used for the future service development (Sharma and Lambert, 2013). Based on this information the customer service executive and the sales personnel would interact with the clients on regular basis to retain them in the long run.

The key resources that are required for the business are the financial resource, resource related to business infrastructure, human capital (Johnson et al., 2008). These are the following requirements of the resource.

The first activity would be the direct sales related activity.  The sales personnel would develop the data base related to the clients. Based on the data base the sales personnel would make call and fixed appointment for the meeting. Then they would visit the customer and complete the sales process.

The key activities for the value positioning are the service development and delivery related activity (Meertens et al., 2012).  The designing team would look for the requirements of the client, the resource availability and price quote for the design development. Based on this information the design team would develop the website design. Then that design would go for the development process. The other promotional activity would also be done this type of process.

Value Proposition

The sales personnel would acquire all the customer related information and provide those to the office personnel for storing. The sales personnel would also generate feedback of the service from the client on periodic based (Meertens et al., 2012).  This would be useful for the customer relation maintenance.

After the completion of the sales process the sales personnel would collect the fee of the service and submit to the accounts department.

The key partner of the business is the web hosting company. The web hosting company would provide the service related to technology and service for the developed website to be seen over the internet. This service would cost the company high to develop. The partnership would reduce the resource needed and risk factor of the business, but this one of the important aspect of the total service delivery (Bharadwaj et al., 2013). The existence and functioning of the website is dependent on this partnership for the business. To have a effective service from this tie up the business need to maintain good relationship and communication with the web hosting service provider.

A better part of the cost of the business would be incurred in the desktops, laptop and multimedia equipments purchase. This equipment would be of high quality to provide effective and quality service to the clients. The business is value driven. That is why the business would recruit quality designer and developer for the service design and development (Muhtaroglu et al., 2013). The necessary expenses for the human resource would be incurred.

The organisation would sale the CSP and also the individual services as per the requirements of the clients. The general contribution figure of the different selling of service would contribute in the above mentioned manner. For the revenue generation the penetrating pricing policy would be used for the CSP. The competition in the Web design and development field is high as the entry cost in the industry is low. To attain good market share the business would use low price (Muhtaroglu et al., 2013). On the other had the individual service would use the value based pricing approach.

The main technical support that the business need are the quality electronic equipments, different technology service provider like the ISP and the website hosting services. The electronic and multimedia equipments can be procured form the market easily. The availability of the quality professional for the service development is adequate because of the proliferation of university and related courses. The technical service providers for the process are reliable and available in the market. Competitive market also pushes them to deliver quality services.  

Minimum Product Value

Qualified professional for service development are the critical human resource that the business needs (Guerrero et al., 2008). The designer recruitment for the business would select from the people from the commercial art background or people with computer graphics designing skills. The developer would be selected from the local technical and engineering colleges and university. There are technical sales personnel available in the job market.  

Total cost of start-up for the business is $74,500. The funding of the capital would be done through the sources like the personal finance, bank load and the leasing procedure. Projected net profit for the year-1 is $12078. The expected net profit for the second year is $16967. The growth in net profit figure is around 40%. I n the 1^st year the business needs to do the hard work to for the customer acquisition (Guerrero et al., 2008). The result can be seen from the second year. 

Expected profit figures for the business for first and second figure

Reference

Anderson, J. C., Narus, J. A., and Van Rossum, W. (2006). Customer value propositions in business markets. Harvard business review, 84, 1-4.

Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., and Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights.

De Vries, E. J. (2006). Innovation in services in networks of organizations and in the distribution of services. Research policy, 35(7), 1037-1051.

Guerrero, M., Rialp, J., and Urbano, D. (2008). The impact of desirability and feasibility on entrepreneurial intentions: A structural equation model. International Entrepreneurship and Management Journal, 4(1), 35-50.

Ibisworld.com.au. (2017). Web Design Services in Australia Market Research | IBISWorld. [online] Available at: https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/technology/web-design-services.html [Accessed 19 May 2017].

Johnson, M. W., Christensen, C. M., and Kagermann, H. (2008). Reinventing your business model. Harvard business review, 86(12), 57-68.

Katz, J. A., and Green, R. P. (2009). Entrepreneurial small business (Vol. 200). McGraw-Hill/Irwin.

Meertens, L. O., Iacob, M. E., Nieuwenhuis, L. J., Van Sinderen, M. J., Jonkers, H., and Quartel, D. (2012, March). Mapping the business model canvas to archimate. In Proceedings of the 27th annual ACM symposium on applied computing (pp. 1694-1701). ACM.

Moogk, D. R. (2012). Minimum viable product and the importance of experimentation in technology startups. Technology Innovation Management Review, 2(3), 23.

Muhtaroglu, F. C. P., Demir, S., Obali, M., and Girgin, C. (2013, October). Business model canvas perspective on big data applications. In Big Data, 2013 IEEE International Conference on (pp. 32-37). IEEE.

Sharma, A., and Lambert, D. M. (2013). Segmentation of markets based on customer service. International Journal of Physical Distribution & Logistics Management.

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