Jakarta Business Plans

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What is a Strategic Window?

The term strategic window is the limited periods during which the “fit” between the key requirements of a market and the particular competencies of a firm competing in that market is at an optimum. In this paper we will use VXL Instrument’s case to elaborate the concept.
What is VXL’s Business?

VXL Instruments is enabling companies around the world build a flexible, secure, manageable and cost-efficient IT infrastructure. Its range of thin client devices helps enterprises beat the cycle of desktop obsolescence, free internal resources from non-productive functions, and save millions of dollars that is spent in securing systems. The thin client is a server-centric computing model in which the application software, data, and CPU power resides on a network server rather than on the client computer.VXL Instruments won “Highest IT-Hardware Exporter Award in Non-SSI category” for year 2006-2007. VXL’s Dilemma VXL Instruments is leading manufacturer of thin client devices and commands 11% share in global market. Its major chunk of sales comes from export to US and EU. The company is trying to explore new market in India for its thin client devices. Competitors like Wyse and HP offer diverse range of product not only in west but also in India. Therefore, it’s high time that company starts thinking about Indian market.
How to market TC in India?

Company’s products like TC23xx and TC73xx are reliable and cost-effective. The (thin client) TC can help in eradicating various pain in server based computing. It is very useful in case of SME’s (Small and medium scale enterprises) where computing requirements are pretty specific. In case of sectors like hospitality, we need to explore various value unlocking features so that they can charge a premium. The major challenges are following:

1. How to provide maximum utility without making product too much complex?

2. How to convince existing clients to change from fat clients to thin clients?

3. How to market TC in India?

Actually the answer of third question will give us a frame work for finding the answers for first two questions. I will consider VXL a minimum risk taking company. It’s more product centric than customer centric. Therefore, its products are world class but market penetration is not that impressive. Presently, VXL markets its products through client interaction and third party distributors like Priya Limited. This approach reduces marketing expenses but the approach has its own limitations. In 2005, Mumbai-based distributor Priya Ltd invested $2 million (around Rs 10 crore) in equity in VXL Instruments. The investment was part of the trade finance arrangement that gave VXL $9 million (around Rs 45 crore) aimed at funding its growth. VXL chalked out expansion plans and a growth strategy with a view to increase its market share of thin client to 25 percent by 2007-2008. It has made inroad in different verticals like ERP, Health, Telecom, Education and Banking with client list including SAP Belgium, Birmingham City Hospital UK, DOT India, British Telecom, IIM Lucknow, IIT Roorkie, Haga Bank Jakarta and HDFC India etc. But presently its market share is much below its target.
Product Awareness & Customer Perception

We can roughly divide the customers into two categories

* Techno Savvy Customers with financial Muscle:- These type of customers, already know about the products (TC) and we need to convince them that thin client is a better option over Fat client. For example Velankani group’s upcoming 5-Star hotel in Electronic City, Bangalore. The Velankani’s are in IT and infrastructure and they are aware about technology and its implementation. According to Mr. R. Shiva Kumar (Manager Information System, Velankani), these types of customers should better be approached when the product is in its embryonic stage. Once they acquire fat clients (FC) for their project, they won’t be interested in TC due to switch over cost. Here we need to market TC as a device which will not only reduce the total cost of ownership but also provide simple solution for all comfort requirements.

* Less Techno Savvy with Medium Range Investment Capabilities:- These types of customers don’t have their own IT department. They generally play safe and go for the fat client technology being used by other players in their segment. More over they consider their computing needs are minimal and don’t find IT investments much attractive. Here, we need to educate them about various advantage of server based computing and advantage of TC over FC. These types of firms should be approached for providing total solution.

Market Redefinition

Frequently, as markets evolve, the fundamental definition of the market changes in ways which increasingly disqualify some competitors while providing opportunity for the others. The trend towards marketing “system” of products as opposed to individual piece of equipments provides many examples of this phenomenon. We will discuss this point with the help of Docutel case.

Small business owners who use cash and their personal credit or debit cards for small or unexpected expenses may be doing themselves a disservice. For example, each time you put gas in your car to use for business, you should be using a business credit card. This allows you to keep track of the amounts you actually are spending. It also makes it easier to do the books. When you use cash, you could lose a receipt that is stuffed away. If you don’t keep track of all expenses, you may not be making as much money as you thought.

An added bonus, many business credit cards offer some type of reward for purchases, such as cash back. Different cards have different offers, so chose the one that benefits you the most. If your main business expense is your automobile, get a gasoline business credit card that offers cash back for each purchase. If you fly, get a card that offers reward miles.

Business credit should always be used for unexpected expenses as well. If you don’t have a business credit line already in place, get one now. It takes time to establish business credit, so start before you need the credit. A business credit line is essential for keeping track of business expenses properly.

You could come up with lots of considerations and valuable opinions, which shed light on many bad aspects of online auctions. At the end of a dinner, you also managed to persuade your best friends that they should stop wrecking their eyes in face of Ebay.

It’s time consuming and packed with useless objects. In just digit word, you substantiate your argument rattling well and now everybody thinks of online auctions as a derisory fad. Here, we shew that, far from being a mania, online auctions are digit of the most valuable resources that Internet brought to us. How do we know that? History and economics tell us so! Throughout history, auctions never played a primary role in digit of the most important process of human interaction: the practice of price-setting. Usually, auctions have been confined to agricultural products or rare commodities (see paintings).

Of course, nowadays many kinds of financial securities are also exchanged through auctions. The reality is that two other ways of setting prices have dominated the economic life. First, one-to-one negotiation and, second, the list of prices fixed by sellers.

However, economic theory demonstrated that these two methods have flaws that need to be taken into account. For instance, in the case of a fixed list, the vender necessitates of a rattling beatific noesis of demand conditions. Otherwise, nobody would accept those prices. Negotiation also presents a big risk: how do you simply know whether the vender is the digit who offers the lower prices?

On the opposite, auction is a virtuous process that avoids these deficiencies. In 1880, the French economist Leon Walras, developed a price theory in which the auctioneer call out a price and, if buyers and sellers do not balance, he/she then adjusts the price until equilibrium is reached.As a result, auctions represent efficient mechanisms that turn the ‘invisible hand’ into reality. They overcome the inefficiencies of the above-mentioned price-setting dynamics, by calling for a broad range of bids from many people.

The opening and the management of a small company require large the motivation, desire, and talent. It also takes research and planning. To increase your chances for success, should take time to you to explore and evaluate your personal businesses and goals, and employ this information to establish a complete action plan and lengthily matured to help you to achieve these goals. The following ends to open a small company can increase your chances of success considerably.

Initially, you know. Before investing much time, energy, and money, it is important to make self-analysis. You raise these important matters: Do I have the talent of management? Am I tested enough in this industry? The studies proved that the contractors are persistent, succeed with a provocant environment, and have a great need to be in the order. They are also risk-takers which take the responsability and can laid out and to make decisions. The successful contractors can patient and to wait until the good moment to begin businesses. They can also learn from their errors and trust their own judgement. In conclusion, the successful contractors adopt positive attitudes. Be objective about yourself and of your aptitude. If these features match your personality, identify what you have pleasure to make the majority and then find an opportunity commercial which makes use of your personality, qualifications, and interests.

In the second place, envisage your business. Good deals do not depend on the cost or the size of a its contents but action plan. An effective plan is important management tools to envisage your business, to fix goals, and to measure the execution of businesses. Although your plan depends on the type and the size of your business, all the plans should be organized in various sections: a general summary, a description of the product or the service, a market research and a plan of sale, a description of the leadership team, a finance strategy, and an appendix. A plan of high-quality shows a careful analysis and a realistic plan for the future of your business. The setting of your thoughts downwards on paper will help to clarify the goals of your businesses, your customers and competitors, and your forces, weaknesses, threats, and occasions. This helps you fixed realistic goals and directs your business towards the meeting they.