Second-Generation is a software applications company that provides software solutions to clients in areas such as fleet management, Inventory management, contracts management, suppliers’ management, enterprise resource management, and human capital management. Second-Generation was established in 2017 in North Carolina as a limited company with three directors. At the onset, most of the company’s businesses were concentrated in North Carolina, but from 2018, Second-Generation established its online presence to reach as many customers as possible. The basis of forming the company was to help small and medium enterprises to achieve efficiency in tracking, storage, payment, and management of business information related to vendors, customers, and employees.
Second-Generation targets both small and medium enterprises that are keen to improve efficiency through the implementation of a new system. The main focus is to generate at least 500,000 USD in the coming financial year and increase the current market share (Ferrell & Hartline, 2015). The company applies cloud-based technology in developing customized software for its clients. Given that comprehensive corporate-level solutions like ERP systems are extremely expensive for most small and medium enterprises to acquire, Second-Generation bridges this gap by developing a variety of tailor-made software solutions for small and medium businesses. Since Second-Generation software solutions are cloud-based, customers can easily access them from anywhere and anytime. They are also customized to meet the customer’s specific needs.
Second-Generation operates in a highly competitive market, yet diversified and growing exponentially at the rate of 9.7% yearly. Being a new entrant, Second-Generation faces competition from US-based software giants including Microsoft, SAP, and Adobe, although they are not the direct competitors. Directly, Second-Generation faces stiff completion from companies such as Light IT, ELEKS, Capital Numbers, S-PRO, and many more. A major limitation of most of these direct competitors lies in their high-pricing strategies and rather complicated applications that are as user-friendly as Second-Generation’s applications (Lake, 2017). Others cannot be customized to meet the customer’s specific needs for most small enterprises.
Cognizant of the prevailing competition, Second-Generation has put in place powerful marketing strategies to combat competition. The company plans to take advantage of smartphone users by developing a mobile app where potential customers vie the various products of Second-Generation, features, and prices (Ferrell & Hartline, 2015). Another strategy is to market Second-Generation products through Search Engine Optimization. Finally, the company plans to hire sales representatives who will visit potential customers. Among other things, the sales agents will install the prototype version of the real software at the customer’s business and collect feedback about its effectiveness after a particular time. Second-Generation acknowledges that stiff competition can only be beaten by applying a mix of these strategies interchangeably. Thus, the plan focuses on the three growth strategies and suggests ways in which Second-Generation can leverage on the existing customers in developing new software solutions to small and medium enterprises to address emerging challenges.
Mission, Goals, and Objectives
Second-Generation mission is to provide customers with real-time software solutions that will help in tracking, storing, and managing key business information conveniently. The goals involve identifying at least five customers per month in the next five years who purchase Second-generation solutions (Lake, 2017). The next goal is to expand the market share and to increase the existing customers by 15% for the next five years. It is also the goal of Second-Generation to increase annual sales by 500,000 USD over the next five-year period.
Company’s SWOT Analysis
Given that the company provides several software applications like fleet management, inventory management, HR management, and vendors’ management, it stands to gain from economies of scale. The fact that its products can be customized and accessed from anywhere as they are cloud-based gives Second-Generation an upper hand over the competitors (Butje, 2005). Another strength of the company is the low-cost software applications and other benefits such as free subscription that are unavailable with other vendors. On the contrary, a major weakness facing the company is the weak branding. As a result, sales tend to have stagnated over the last two years of operations.
Second-Generation has massive expansion opportunities as it can either utilize the marketing strategies to increase sales or develop new applications and target new customers. Given that the demand for mobile apps continues to gain more apple, the company can add more appealing features to its mobile marketing app to reach as many customers as possible. On the other hand, software products are developed by many companies, small, medium, and large, which pose a serious threat to Second-Generation. Additionally, there is plenty of free software online, and many organizations prefer to purchase from reputable organizations like Microsoft (Butje, 2005). Another threat lies in the fact that technology is moving quite fast, and the introduction of new technology might render Second-Generation products obsolete in the future. In light of this fact, the company needs to invest more on research and development to align itself with the market developments and demands in the future.
Butje, M. (2005). Product marketing for technology companies. Amsterdam: Elsevier Butterworth-Heinemann.
Ferrell, O. C., & Hartline, M. D. (2015). Marketing strategy: Text and cases. Singapore: Cengage Learning Asia Pte Ltd.
Lake, L. (2017). Setting Marketing Objectives for Your Business. Retrieved from https://www.thebalance.com/what-is-a-marketing-objective-2295532