JIA Computers: Strategic Business Plan for US Market Analysis

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This report provides a detailed strategic business plan for JIA Computers, focusing on its entry into the US market. It begins with an executive summary outlining the company's objectives, including offering quality computer products and building shareholder value through sustainable practices. The report covers staffing policies, emphasizing the use of Hofstede's Cultural Dimensions to inform HR decisions, and corporate social responsibility initiatives. It then explores the Blue Ocean strategy, Internet of Everything integration, and the consumer market analysis. Porter's Five Forces and a cost leadership generic strategy are used to analyze the competitive landscape. The report also includes a Fishbone analysis to identify competitive advantages and opportunities, a TOWS matrix comparing JIA Computers to Amazon, and the international entry mode of direct exporting. Marketing strategies, including product, price, place, promotion, and people, are discussed. The report concludes with intermodal transportation and financial analysis, including a value chain analysis, and recommendations for successful market entry.
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Running head: STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Strategic business plan of Canada based JIA Computers in US
Name of the University:
Name of the Student:
Authors Note:
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1STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Executive Summary
JIA Computers will offer a wide range of quality and value aadded computer pryducts to its
consumers in US. It will offer them with custm built desktop computer thaat will ptuvude a
friendly and psonaal sshopping experience. The ndw business of JIA Computers will be centered
on developing long-term shareholder values through decreasing envirimental, social and
economic impacts in US. The new business will focuss on pruvuding exceptional opportunity to
bring people together through supporying charity and community project in US. To attain
competute aadvantages, JIA Computers will consider analysing the competition within the US
market along wwith evaluating the manners in which the marjet will react to the bottom line
along with strategic future planning.
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2STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Table of Contents
Staffing Policies...............................................................................................................................3
Corporate Social Responsibility......................................................................................................3
Blue Ocean Strategy........................................................................................................................3
Internet of Everything......................................................................................................................4
Consumer Market............................................................................................................................4
Porter's industry force and generic strategy.....................................................................................5
Fishbone Analysis............................................................................................................................6
TOWS Matrix..................................................................................................................................7
International Entry Mode.................................................................................................................9
Marketing Strategy..........................................................................................................................9
Intermodal Transportation.............................................................................................................11
Financial analysis...........................................................................................................................11
Value chain analysis......................................................................................................................14
Recommendations..........................................................................................................................15
References......................................................................................................................................17
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3STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Staffing Policies
Through implementing “Hofstreeds Cultural Dimensions Theory” the human resource
selection or staffing policies will be decided for the business of JIA Computers. It is observed
that Canadian employees score high in uncertainty avoidance that indicates they have easy
acceptance ability to new ideas and business practices , whereas, employee culture in US also
has fair score in this aspect here thy do not require new rules and readily accepts new
technologies (Board, 2016). For this reason, the host nationals will be preferred by the new
business as it can eliminate the employee adaptation issues within company’s culture and the
business can flourish in US.
Corporate Social Responsibility
The new business of JIA Computers will be centered on developing long-term
shareholder values through decreasing environmental, social and economic impacts in US. The
new business will focus on providing exceptional opportunity to bring people together through
supporting charity and community project in US (Burns, 2016). CSR initiatives of JIA
Computers will also include developing eco-friendly customized computers in US. Moreover,
the corporate culture of the company will have values related with diversity and developing
effective corporate governance through implementing sustainable business practices.
Blue Ocean Strategy
Blue Ocean strategy will be followed by JIA Computers in ensuring competitive
advantages in US market. This strategy will be implemented by the news business that will be
focused on generating new consumer value along with maintaining decreased costs (Burns &
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4STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Dewhurst, 2016). This strategy can be beneficial for the business at the time the supply exceeds
demand. Based on this strategy the new business will focus on developing products such as
mountain computers and sporty computers that can encourage consumers to employ the
confortable, ergonomic utilitarian upright computer. Moreover, such computers will be
manufactured in US in an affordable manner through eliminating production wastes along with
along with generating awareness for the eco-friendly computers.
Internet of Everything
Internet of Everything is focused on linking internet with the external world that includes
people, process, things and data. Focused on this strategy, new business of JIA Computers will
offer its target consumers in US to with the service of purchasing from the company’s online
stores (Harris, 2019). The company will also ensure that it has a well-developed website that will
offer the current and potential consumers with details related with its computer products
descriptions. This can further facilitate JIA Computers in in increasing ore brand awareness in
the new market along with enabling new connections with consumers. “Enhancers” IoE strategy
will be implemented by the company in developing its own value added services to the
consumers through offering them customized computers as per their desired specifications.
Consumer Market
The consumer market for JIA Computers in US includes majorly young generating from
the age group of 18 to 43 years (Heo, Kang & Kim, 2018). The consumer market of US is
observed to include a huge number of home office businesses that are simple home computer
users and look for custom based devices ass per their needs. This consumer base is observed to
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5STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
need assistance regarding their desired computers as these shoppers are generally less informed
and look for a pleasant shopping experience through efficient sales assistance.
Porter's industry force and generic strategy
To attain competitive advantages, JIA Computers will consider analyzing the competition
within the US market along with evaluating the manners in which the market will react to the
bottom line along with strategic future planning (Hopp & Greene, 2018). For analyzing the
business market situation in US, Porter’s five forces analysis will be carried out based on which
generic strategy will be developed in ensuring successful business operations of the company in
its new market.
Bargaining Power of Suppliers: This is observed to have weak force in US as there is
less number of suppliers in the nation, weak overall supply and decrease ratio of
company concentration to the supplier concentration that will ensure value and supply
chain effectiveness of JIA Computers (Hutchinson, 2017).
Bargaining Power of Buyers: This force is deemed to be strong in US as the purchase
preferences and perceptions can impact the business. Strong buyers bargaining power can
be faced by the company because of existence of low switching cost along with strong
force of high buyer information.
Threat of Competition: This force is observed to be string in US as market entry of JIA
Computers in the nation can face competitive threat from high aggressiveness of existing
companies along with low product differentiation from Staples, Amazon and BestBuy
(Ivanisevic, Katic, Buchmeister & Leber, 2016).
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6STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Threat of New Entrants: This force is observed to be moderate as new entrants can face
barriers of high capital requirements, increased costs of brand development and high
capitalization needed for setting up successful business in US. Innovation and marketing
strategies of JIA Computers must be string in attaining competitive edge.
Threat of Substitutes: This force is observed to be weak in US as JIA Computers will
offer unique products such as customized computers that will be developed as per
specifications and needs demanded by each consumer. Offering unique product each time
makes availability of substitutes low in the market (Kusumaningrum & Hidayat, 2016).
Based on the competitive business environment situation in US, JIA Computers will
consider implementing cost leadership strategy in which it will offer its custom developed
compute products through at a reasonable price. This strategy will be successful for this new
business as it will be able to maintain its cost leadership position through decreasing
manufacturing expenses as it will export its products from Canada to US that can facilitate in
attaining costs savings from eliminating any middleperson (Mariani, Morelli & Bartoloni, 2019).
Fishbone Analysis
Fishbone analysis of JIA Computers will be focused on recognizing competitive
advantages and opportunities along with evaluating the marketing strategy of its business rivals.
Attaining such information can facilitate the company in analyzing competition based issues in
US along with analyzing its business process and effectiveness in attaing competitive edge
(McKeever, 2016). The business will address the issue of fierce competition through offering
computers with their specified features so that thy do not have to pay for features they do not
need.
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7STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
Figure 1: Fishbone Analysis of JIA Computers
(Source: McKenzie, 2015)
TOWS Matrix
Through analyzing strategic plan of a competitor Amazon, JIA Computers will compare,
generate and choose strategies that will be considered by this new business in successfully
entering US market (Milani, 2019).
Amazon Company
Strengths Weaknesses
Strong international
brand
Offering diverse
No existence of the
physical stores and
presence
Internal Factor
External Factor
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8STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
products
Strong focus on the
research and
development
Strategic location
Implemented advanced
technology
Consumer centric
visions
Skilled workforce
Efficient logistics
Low profit margins
Low cash flows
Weak performance
within US market
Opportunities SO Strategies WO Strategies
Growth in the internet
usage within US
Advancement in the
digital media
Increasing e-commerce
sales
Growth in social
networking
Increased opportunities
of acquisitions
High consumer
Using such strengths
for making sure as
much as new
expenditure as possible
is spent
Diversifying within
new markets through
association
Promoting the
company through such
means
Review and enhancing
the current strategy in
US
Tapping into the
identified opportunities
for increasing the
profit margins within
an increasingly
competitive market
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9STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
spending in US
Threats ST Strategies WT Strategies
Increased dependence
on the vendors
Association of the
patent violation
disputes
Pressure groups on
being highly
environment friendly
Improving the recent
delivery strategy
process for being
highly environment
friendly.
Enhancing the recent
delivery process in
order to remain
competitive
Enhancing the same in
order to stay ahead of
its competitors
Decreasing such
disputes for ensuring
retained earnings
increase
International Entry Mode
JIA Computers business will enter into US market through the international market entry
mode of “Direct Exporting” (Piovesan, Schmitz & Hersch, 2016). In this strategy, the business
will export its computer products directly to the consumers in US based on their preferences and
custom based requirements from the computers. This market entry strategy will be advantageous
for the new business as it will be responsible for handling all the business establishment
activities such as foreign distribution, market research, shipment logistics and invoicing that can
ensure cost saving from eliminating any intermediaries. Moreover, through operating business by
means of direct exporting, JIA Computers new business in US will attain competitive advantages
of attaining better understanding of its new marketplace and attain high flexibility for ensuring
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10STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
further improvement and redirection of marketing efforts for selling its custom based computers
(Schramm, 2018).
Marketing Strategy
Marketing mix strategies will be implemented by JIA Computers in ensuring successful
market entry through attaining competitive advantages by offering exceptional consumer value
in the form of product, price, place, promotion, people, physical evidence and process in US
market (TC, 2017).
Product- JIA Computers will offer a wide range of quality and value added computer
products to its consumers in US. It will offer them with custom built desktop computer
that will provide a friendly and personal shopping experience.
Price- JIA Computers will consider implementing cost leadership strategy in which it
will offer its custom developed compute products through at a reasonable price (Türko,
2016).
Place- The new business will distribute its custom made computers through direct
exporting and in their showroom within US and also through online shopping website.
Corporate culture of the company will have values related with diversity and developing
effective corporate governance through implementing sustainable business practices.
Promotion- In promoting the business of customized computer product offerings to the
target consumers in US, JIA Computers will advertise its value added offerings in the
social media channels such as Facebook, Twitter and Instagram. Moreover, personalized
e-mails will also be sent to the consumers visiting its store in US regarding discount
codes or seasonal offers (Vandervalk & Snyder, 2017). The company’s website will also
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11STRATEGIC BUSINESS PLAN OF JIA COMPUTERS
promote business launch promo code offers to its consumers those prefer to shop from
their shopping sites.
People- The host nationals will be preferred by the new business as it can eliminate the
employee adaptation issues within company’s culture and the business can flourish in
US.
Physical evidence- Unlike its existing competitors in US market, the company will offer
its consumers with options to customize their own computers based on their specific
requirements and specifications so that they do not have to pay for features they do not
need (Watson, McGowan & Cooper, 2016).
Process- To ensure smooth running of operations and making sure constant supply of its
products to consumers, the business will include transportation methods of ships and
airplanes.
Intermodal Transportation
The intermodal transportation strategy will be employed by JIA Computers in employing
more than two modes of transporting computer products. The company will consider
manufacturing its custom based computers in Canada and will transport it to US market (Watson,
Deece & Smith, 2015). To ensure smooth running of operations and making sure constant supply
of its products to consumers, the business will include transportation methods of ships and
airplanes. Moreover, intermodal brokers will also be employed by the company in effectively
managing intermodal freight shipments as they charge base rate for efficient service. Moreover,
as the distance from Canada to US is 2260 kms so employing intermodal transform strategy for
its computer goods is considered viable (Watson, McGowan & Cooper, 2016).
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