Growth Opportunities and Strategies for RGB Communications

This report discusses the growth opportunities and strategies for RGB Communications, including the use of Porter's generic strategy, Ansoff's growth vector matrix, potential sources of funding and their merits and demerits, and succession and exit options for small businesses. It also includes a business plan for RGB Communications to grow in the market.

Workflow

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK1.............................................................................................................................................4
Identify the growth opportunities with pros and cons. ...............................................................4
TASK2.............................................................................................................................................6
Opportunities for growth through applying Ansoff's growth vector matrix...............................6
TASK3.............................................................................................................................................8
Potential source of funding and their availability in business, along with discussion of merits
or demerits of each source. .......................................................................................................8
TASK4.............................................................................................................................................9
Succession and exit options for small business with their pros and cons...................................9
TASK5...........................................................................................................................................10
Business plan to Grow in the market........................................................................................10
CONCLUSION .............................................................................................................................14
REFERENCES:.............................................................................................................................15
Books and Journals:..................................................................................................................15

INTRODUCTION
To achieve the set objectives and goals of an organisation it is important for an
individual to make a proper plan and follow the plan to achieve them in a very effective manner.
Planing is act as an important factor for every organisation. Without planning the different
business activities cannot be perform in a proper manner. These plans and strategies help the
company to stand in the market for a long period of time(Bovens and et. al., 2019) (. SME's play
a very important role in developing the economic condition of a country and with the help of
planing and strategies they are able to gain then market share in a very effective manner. The
following report is based on RGB communications which are specialized in offering technical
audiovisual product. The company provide their services within the UK. This report also give the
information about the Ansoff's matrix with their pros and cons. Furthermore discussion will be
based on the many sources of the funds available to develop a business with their merits and
demerits and along with this different exit and succession will also be covered.
MAIN BODY
TASK1
Identify the growth opportunities with pros and cons.
Different things need to be considered when an organisation looking forward to expand
their business in the competitive market. Specific framework is required by the small and
medium enterprises in this competitive environment in order to gain growth opportunities from
the market. In relation to RGB Communication, the company use the Porter’ generic strategy
method to expand the business all over the globe and to enhance the market growth. The model
is discussed below:-
Porter’s generic strategy
This strategy is used by the organization not only in identifying the competitive
advantage for the business but also help in determining the direction for the company. As the
RGB Communication has captured the good market within the UK they have a great chance to
grow their business all over the globe(Celesti and et.al., 2020). This strategy involves the
followings things:-

 Cost leadership- this simple means that produce the good and services of the company at
a very low cost. By doing this they can offer the the product to the consumer at very low
cost and enjoy the competitive advantage within the market. In relation to the RGB
Communications the company need to focus on the new technology and their supply
chain to assess this factor. The high volume of producing the goods helps in achieving the
economic of scale (Crusoe and et .al., 2021).
◦ High volume of producing the goods with the new technology not only help the
company in reducing the per unit cost but also help them in increasing their profit
margin and market base.
◦ This causes the financial cuts in the crucial areas of the business like in product
innovation and development which encourage the company to offer low quality of
goods.
 Differentiation strategy:- With the help of this strategy, a company can offers different
product and services to their customer, which help them in differentiate the product from
the competitor product dealing in the same market. In relation to the RGB
Communication, the company deals in different types of product and services. The
company can add more things and uniqueness in their products so that the consumer can
easily differentiate the product.
◦ The uniqueness of the product not only help the RGB Communication in increasing
the brand loyalty in the market but also help them in increasing the profit margin of
the company (Du and et. al., 2019).
◦ Developing or adding new things in the product require lots of time, money, efforts
and resources which are generally not available anytime for the small business.
 Cost Focus:- in this strategy the organization have to focus on the niche market and offer
the goods and services at the lower price. In relation to the RGB Communication, the
company is needed to focus on the specific market segment rather then competing in the
niche market.
◦ This helps the RGB Communication developing strong relationship with the target
market segment and also help in improving the pricing structure.
◦ By targeting a particular market it stops an limits the future growth of the company.

 Differentiation focus: In this approach the organization attempts to give competition to
their rivals by offering the product which is consumed by the customer even if the price is
higher from the competitive product.
◦ This strategy help in reducing the competition from the market because of the
uniqueness of the product (Esposito and et .al., 2021) .
◦ This doesn't provide guaranteed to an organization whether the consumer is able to
differentiate their product from the competitor product.
TASK2
Opportunities for growth through applying Ansoff's growth vector matrix.
This matrix is proposed by the H. Igor Ansoff. This matrix may be define as the
marketing technique which are used by the different types of the firms and organisation in order
to examine the their growth strategies and product(Wang and et .al., 2020). This tool indicate
an organisation, that hoe to grow in the new market and existing market with the new product
and existing product. This matrix is used by the RGB communication in order to develop their
product and strategies. This matrix is briefly discussed below:-
 Market Penetration: In this process the organisation focus on increasing the sale by
attracting the new base of customer through various tactics and scheme. In relation to
RGB communication, by using this strategy i.e. selling existing products in existing
markets, the company is able to increase its market share. As the company deals in the

technology sector, so they have a big chance to grow their business in a very effective
manner. The RGB communication can influence their customer by providing them
excellent quality of goods and services(Lin and et .al., 2019) . This ultimately help them
in increasing their profit margin.
 Product development: In this strategy, the organisation have to bring the new product
into the market to expand their business. By using this strategy i.e. introduction of the
new product into the existing market which help the organisation to make or design new
item or development in the existing product according to the need and demand of the
consumer or marketplace. In relation to RGB communication, in order to grow in the
market the company have to add some new features in their product. With help of
uniqueness and special features they can get the better result. Apart from this they can
also do some changes in their existing services which help them in improving the overall
productivity.
 Market development: This strategy focus of developing the new market area for the
existing product of the organisation. This strategy i.e. selling the existing product of the
company into the new area help the firm to expand their business in different countries
or all across the globe. In context to RGB communication, it has been identified that the
owner of the firm always use different strategies and tactics in order to reach to the new
market with the existing product(Maia and et.al., 2020). This not only help in increasing
the overall sale of the organisation but also help in increasing the productivity along with
the profits of the company.
 Diversification: the implementation of theses strategies is very hard. This strategy i.e.
trading of the new product to new consumer, is not an easy job for the company. In
relation to the RGB Communications, this is not an effective strategy for the company.
The firm introduce their product and services in the market with proper strategy ad
planing. Therefore the company is not able to adopt this strategy because of the
investment of the fund at the higher level.
From the above discussion it have been concluded that product development is an
excellent option for the RGB Communication in order to acquire all the market opportunities.
This help the company not only in increasing the profit margin of the company because of the
introduction of the new product in the market but also help then in increasing the sales.

TASK3
Potential source of funding and their availability in business, along with discussion of merits or
demerits of each source.
The growth of the business is totally based on the availability of the fund in the market.
It is necessary for an individual to find and identified the different source of fund available in the
market. Whenever the firm looking forward to grow their business within the market, it is
necessary for them to make proper strategies for the generation of funds. In context to the RGB
Communications they can make unique strategies to generate the fund from the market which
help them to stand in the market for a long period of time(Nutkiewicz, Yang and Jain, 2018) .
Following are options by which funds can be generated:
 Bank loans: This the most common form of generating the fund for the SME 's
business. A loan can be medium term or long term. This term may be define as a loan
which are offered by the bank to the consumer for a certain period of time at a certain
rate of interest.
◦ Merits:- it is flexible in nature. When an SME's received a loan from bank, they
don't ask from an organisation how they spend their money. Bank provides
flexibility to their consumer to spend their money according to their requirement.
◦ Demerits:- this is very time consuming process. An organisation have to fill all the
paper work to get a loan from bank. This will take several months to obtain fund
from bank.
 Debentures:- A debenture is a long term bond which are issued by the company
without a pledge of security. The holder of the debenture is called as the creditor of the
business.
◦ Merits:- generating fund by issuing the debenture is very cost effective when it
compared to the other source .
◦ Demerits:- as it is not flexible in nature, the organisation have to pay the interest to
the debenture holder of the company whether they earn profit or not.
 Overdrafts:- this may be define as an extension, when bank allows the account holder
to withdraw the money from bank even when they insufficient fund(Ozik and et. al.,
2021).

◦ Merits :- this give an immediate access to get the extra fund from the bank when
needed by an SME's.
◦ Demerits:- the interest which id charged by bank on overdraft is very high. This is
an expensive way of generating the long term fund for the business.
According to the above discussion it has been observed that there are different source of
available in the market from which an organisation can generate the fund. In relation to the RGB
Communication, the company need different types of sources like venture capital, debenture,
overdrafts and may more to expand their business all across the globe. They can chose the
appropriate method of raising the fund in order to achieve a successive growth in the market.
Therefore all the terms is very important for the respective organisation.
TASK4
Succession and exit options for small business with their pros and cons.
It have been seen that to achieve a successful position in the market it is important for an
organisation to perform their different business operations in a very effective manner. To achieve
a long sustainability in the market or to achieve the set goals an organisation must have to
flexible in nature (Sánchez-Gallegos and et. al., 2021) . There are different types of methods or
techniques which can adopt by the different types of organisation to gain succession and exit
from the market. Some of the options are as follows:-
 Liquidation:- This is the process of exit the business by distributing their assets and
liabilities. In this process the asset of the company are used to pay off the debts and
liabilities of the organisation. This can be done because of the poor performance of the
business in the market or they don't able to satisfy the need and demand of the consumer.
◦ It helps in removing the responsibility of the business from the head of owner or the
director.
◦ The owner of the business is not able to trade by using the similar company name in
the future.
 Acquisition:- This term may be define as a process when a firm acquire most of its share
or all the company share and get hold or control over the company. Purchasing more
then 50 % share of the target company allow the firm to take decision in their different
business functions.

◦ The acquisition of the another company of same field help the parent organisation in
increasing their market share and along with reducing the competition in the market.
◦ This increase the debts of the company. If the company is not aware about the
liability of the acquire company then this can be act as a burden for the firm in
future.
 Merger:- a merger may be define as the process of combining the two firms into a single
company. This can be done either by closing the old one and merge them into the new
one or by absorbing the other firm(Viratham, Pulsawatdi and et .al., 2020).
◦ This help the firms in increasing the market share which ultimately increases the
economics of scale along with the profit for the company.
◦ In merger when two firms joins, the chances of increasing the conflicts between the
firms will be increase and this directly affect the working of the business.
TASK5
Business plan to Grow in the market
 Business plan:- a business plan may be define as a written document in which company
describe their different activities, objectives and plan to achieve the objectives of the
company.
 Smart analysis-
◦ Executive summery:- In relation to the RGB Communication, the company is a UK
base deals in audio and visual service. The company also deals in various services
and technologies and with the of this they want to expand their business all across the
globe.
◦ Company summery:- the company trading name is RGB Communication Ltd. The
company mostly serves their products and services to their customer within the
United Kingdom.
◦ Products:- The RGB Communication deals in different types of product range like
room and lighting control,audio and video conferencing, network connectivity and
many more.
◦ Market analysis summery:- to analyse and identify the marketplace the RGB
Communication use the marketing mix strategies which include the product, price

place, promotion, people, process and physical evidence. This strategy help them in
stand in the market for a long period of time.
◦ Strategy and Implementation:- The RGB Communication use the Ansoff strategies
in order to grow in the competitive market. This strategy help them in achieving the
different objectives which are as follows:
▪ this help in increasing the sale of the company by 30%
▪ this help in increasing the market share by 10%
▪ this help in increasing the profit margin by 20 %
◦ Management Summary: The RGB Communication use the hierarchical
organisational structure in order to manage the different functions of the organisation.
This help the company in better communications between the different business areas.
◦ Financial plan:- RGB Communication requires require huge amount of fund in order
to develop their products and services. Company need £35000 for investing and
£300000 to expand the business all across the globe.
◦ Budget Formulation: the budgeting method of RGB Communication is designe and
explained below:
cash budget for six months, discussed below:

Post launching cash budget

From the above budget it has been specified the cash flow statement of the company. The RGB
Communications pays the tax in each and every year.
CONCLUSION
From the above report it has been concluded that planing played a very important role in
the development of the organisation. Without proper planning an organisation cannot perform
their different business functions in a very effective manner. This report concluded that, how an
organisation identifies the different growth opportunities and this can be done by Porters generic
strategy in related to the RGB Communications. This report also concluded the Ansoff matrix in
related to the respective company. Further this report concluded the different option for exit and
succession of the firm along with the availability of the different sources of fund for the company
in the market. And in the end business has been made for the growth of the business.

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