Supple Software Company, an S Corporation, was founded by Ralph and Mabel Smith. The company was founded in 1993. No outside investments have been made. Supple sells three different software products that command impressive market share. Ralph and Mabel would like to see the company grow by 2000.
The goals of Supple are ambitious but achievable. There were sales growth in 1999. The next year, they expect to double. They expect net profit and gross margin growths to be proportional. Their goal is to hold personnel to one employee for every $250,000 in revenue. PC Data has determined that Product X is their flagship product and they will continue to hold a 30% market share. This will be achieved by adhering the three key ingredients to success, market strength, customer satisfaction, as well as the right management team.
The Market
Supple is participating in a $3.8 billion market that will have a 20% growth rate for the next three years. Supple will target four market segments: small offices at home, professional offices, academics, and professionals. These markets are growing at 2%, 5%, 8%, and 0% respectively. These markets are home to 22,000, 15,000 or 10,000 potential customers and 12,000 respectively. These are the USA markets. The major trend in the market is toward international sales. The market has seen a significant surge in international PC products primarily fueled by the recent 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 offers three product lines. Product X is currently the top-ranked Windows task X software, and also the quality leader. It offers a user-friendly interface with help and glossaries. Product Y can be used as a standalone task Y application on Windows. It’s the best product to create task Y and the only product that can manage the [omitted] function. Their last product, Product Z is a creative application for business processes.
The Strategy
Supple will adopt four specific strategies to attain the desired growth. They will create customized versions of their products to provide more value to specific customers. They will develop a strong marketing infrastructure. This will allow them to market their products. Supple will continue to focus on small and medium-sized companies, a segment that has been mostly ignored by the rest of the market. Supple will focus more on follow-up technology, which is more applicable to the masses, than on leading technology, which is better suited for specialists.
Management Team
Ralph and Mabel are seasoned managers who are capable of executing on their ambitious strategies. Ralph has 10 years of sales and marketing experience from Arrog International. In 1993 he founded Supple as a software distribution organization and is primarily responsible for its growth. Mabel will be required to help grow the company. Her years as a consultant will be drawn upon.
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. This is impressive, especially when you consider the fact that it was all possible through investments by the owners.
1.1 Objectives
- To double sales in 2000 and increase sales by 5% in 1999.
- To increase gross and net profit margins correspondingly.
- To hold personnel to 1 full-time person for every $250K in revenues.
- To maintain at least 30% market share of Product X, as measured by PC Data.
Success Keys 1.2
- Marketing power. It is important to ensure that your products are on the shelves in attractive packaging. This will allow you to retain a 30% market share as measured by PC Data.
- High quality products and customer satisfaction. We guarantee everything we sell, so the product must live up to our promises.
- To survive, we must ensure long-term customer satisfaction.
- Strong foundations in marketing, finance, and product design are essential for the right management team. Enough working capital to survive in the working-capital-intensive retail channel.
1.3 Mission
Supple Software develops software, publishes it, and markets it. It makes business skills accessible to millions who may not otherwise be able to access 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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