Case Study: Fiesta Incorporation
Student’s Name
Institutional Affiliation
Fiesta Incorporation
Fiesta Inc. is an American based technology based company that was begun in the year 2005 with its headquarters in Manhattan, New York City. The company not only focuses on the production, licensing and development of computer software and hardware such as personal computers, it also has set up shops which provide repair services, unlike other technology companies. Fiesta Inc. was founded by Andy Mason in the basement of his house, his inventions were driven by his love for technology and his passion for creating different machinery. As there are many companies in the technology industry providing similar services the company uses a very comprehensive marketing plan which involves conducting a SWOT analysis, listing the company’ goals and tactics, creating a list of the target market and competition and financial forecasting through the company’s budget.
Mission Statement
Your number one brand when it comes quality, commitment, loyalty, and customer satisfaction.
Fiesta Inc. short term and long term goals
The following are goals that I would like the company to achieve:
Short term goals
Prioritizing sales and marketing of products
Sales and marketing of the company’ products is a critical key to success. The activities can be conducted through marketing campaigns in the different available media platforms or through campaigns. Marketing will not only help increase public awareness of how the company’s products are different but also help the marketing team identify the faults that exist with the products and work towards improving them.
Establishing good customer relationship and loyalty by listening to customers
Evidently, customer needs, as well as technology, are ever changing. In order to keep up with competition, it is important to pay attention to customer feedback and address whatever issues they raise. The company should create different platforms where customers can air their views and share their experiences with their products. This will enable the company to monitor customer satisfaction and improve in areas where improvement is needed. By doing so the company will strengthen its customer relationship and improve customer loyalty.
Automation of all activities to make work easier
Automation of different activities is important for the company as less time will be spent on administrative and paperwork and more time spent on developing the company. This will improve overall customer experience with the company’s product and in the end improving productivity
Provide a conducive work environment for the purposes of attracting new qualified employees
As a technology company, they should focus on attracting new high caliber employees. With more employees, flexible working hours can be implemented and more products invented and more time will be spared brainstorming.
Long term Goals
Revenue Goals
This is an important goal for any business. Revenues keep businesses afloat and each company should, therefore, set their revenue goals. One of Fiesta’s Incorporation long term goals should be to double their revenue at the end of each financial year.
Customer Goals
The company greatly values all of its customers. To improve the overall customer experience, various platforms should be established for the purposes of collecting customer’s feedback. The company’s long term goal will be to establish at least 95% customer retention and satisfaction rate.
Employee Retention Goals
The company should acquire and retain as many talented and skilled employees as it can sustain. Retention can be done by creating a work-friendly environment. This can be done in various ways. One of the ways is by awarding hardworking employees. Promotion should also be awarded through merit. This ensures that employees will be motivated to work hard as they will feel appreciated. This is an important long-term goal that the company should achieve.
To evaluate the long-term and short-term goals employee performance evaluations should be conducted, the company finances analyzed and customer feedback, retention, and acquisition rates evaluated. This will help determine if the company is on the right path or not.
Environmental Analysis
A PESTLE/ environmental analysis is an analysis used that is used to analyze the various macro-environment external factors that influence business. The analyzed factors are responsible for influencing the market of the business in question.
Political Factors Affecting Fiesta Inc.
The political environment of a state and the nations around it deeply affect the performance of a business. The United States of America has been quite stable for a while now. Since most of the supply chains of the company are based in the US the company will be able to establish strong distribution systems. This will lead to the generation of huge profits. With this, the company will be able to easily flourish.
Economic Factors
The economic boom, recessions, fluctuations in currency exchange rates are some of the economic factors that affect a business. A country’s past and present economic status also affects businesses. As the US economy has been stable for quite some time the company will be able to develop and grow steadily. The current employment rate has enabled the company to acquire new employees without straining its resources. Prevalence of economic certainty will also encourage the company to venture into the production of a new product with the assurance that the market for such products is stable and there are able and willing buyers.
Social Factors
The social surrounding of a business has a huge impact on its development. They help the company come up with their marketing strategies. If people within the social surrounding are interested in mobile phones and computing devices then the company will be in luck. In New York individuals are engrossed in technology. This is one of the social factors that will enable the company to grow over time.
Technological Factors
As a technological company Fiesta Inc. highly depends on technological innovation. Innovation is important as it enables one to gain a competitive advantage over its competitors. Evidently, there is heavy competition in the technology industry it is therefore important that the company invests in research and development for the purposes of fostering innovation. By doing so the company can keep up with its competitors and remain relevant over time.
Environmental Factors
Sustainable development has become a worldwide concept where industries are encouraged to venture into production processes that have a low environmental impact. The company has to conform to the set environmental standards by changing various aspects of its business models. This can be done by the elimination of use of non-biodegradable materials during the production process. The company can also focus on the maintenance of water bodies around it.
Legal Factors
As a technology company, Fiesta’s business is subject to federal laws in different states both locally and internationally. The company must ensure that all prescribed rules are regulations are closely adhered to. Failure to do so may cause the company huge losses in terms of fines. Other laws such as labor, environmental and intellectual property laws must also be adhered to if not the company will be subject to liabilities.
SWOT Analysis
Strengths
Product differentiation is a critical step in any institution as it ensures that businesses stay updated and remain relevant and become successful in the long run. One of the main reasons that companies choose to venture in product differentiation is to gain a competitive advantage against other players in the market. This strategy has also proven to be quite useful in establishing a loyal and satisfied customer base. Fiesta Inc. has deeply invested in inventions and product differentiation. The process has been slow as the company is a startup but has proven to be successful over time. When the company first began it mainly conducted its businesses in a personal systems way but has grown to be enterprise over time. With the changes, customers have been able to enjoy the different readily available products and services provided by the company.
The company also engages its employees in brainstorming sessions and keenly address customer feedback, consequently, the company has been successful when it comes to product excellence. This has enabled it to gain competitive advantage and dominate i. some sectors of the market. The company sells at least three phones and one personal computer every minute. This has led the company to be among the top companies who sell personal electronic gadgets universally.
The Fiesta Incorporation Enterprise is growing to be a globally recognized product this is because the company has invested heavily in marketing and branding, this strength is advantageous as it emerges among the top technological companies during any rating process. with this, the company can easily attract new customers and control the market.
Weaknesses.
Fiesta Inc. headquarters are in New York city alone and this is where all company operations take place, evidently, the company has failed when it comes to market segmentation. The company lacks a presence in some critical sectors of the market. as much as this is disadvantageous the company can continue to focus on product differentiation as a strategy and this will ensure that the market for its products expands.
The company has not ventured into any mergers or acquisitions since it was begun. This shows lack of competency among the top managers. New acquisitions are quite important in such a business as they provide room for additional skills from the newly acquired employees. The company has room for improvement when it comes to this as it generates a lot of profit annually.
As much as the company has ventured into product differentiation it still does not appear in some market sectors of the market. Notably, the company does not produce some gadgets such as tablets. Tablets are used globally by people for various purposes both at work and at home, moreover, this is one of the most fast-growing sectors of the market as the device serves both as a mobile phone and a personal computer. Failure to produce the device means the company loses a lot of revenue and customers alike.
Opportunities
There are numerous opportunities in the technology industry that Fiesta Inc. can exploit. This is because it is a fast-growing brand, has all the needed resources and is well established. To begin with, the company can venture into the acquisition of other smaller technology companies. By doing o the company will acquire technology related patents. This will enable to it gain competitive advantage.
With the constant change in technology, people have embraced the idea of cloud services. An increase in demand for such services provides the company to expand their product differentiation strategy and invest in this market and attract new customers.
Over the past few years, the demand for 3D printers has increased over time in the different sectors of the market. This market is valued to be worth billions of shillings and its value is expected to increase. This, therefore, means that there are numerous opportunities when it comes to this sector. Fiesta Incorporation has the necessary financial resources and manpower to venture in this sector of the market. By doing so the company stands to generate huge profits
Another lucrative opportunity that the company could venture into is in the production printing and imaging solutions. This is a fast-growing sector of the economy and it will help the company penetrate in some sectors of the company.
Threat
The technology industry is one of the most fast-growing industry in the world. There are many different companies who have ventured into this business. This has consequently led to an increase in the rate at which electronic gadgets are being sold. This means that there are many companies competing for the same market as Fiesta Inc, this is a huge threat.
Technological evolution is also taking place at an unprecedented speed and this growth means that if the company does not constantly focus and invest in research and development it will be faced out of the market by its competitors. Customers always want the best products, therefore, any product made should keep up with modern technology, if not they will not have any incentive to buy the company’s products.
The market for personal electronic gadgets such as mobile phones and personal computers is saturated. This has led to a decrease in demand for the products. This is a looming threat for the company if it does not keep up with the ever-changing needs of the company.
Feasibility Test
Grossman (2009), in his article, argues that there is an increase in demand for computing and cloud services. Both individuals and companies depend on such services to store there huge sets of data. This is because when one store their data using these services it is not only safe but easily accessible.
Ghose and Han (2014) conducted a study to evaluate the demand for mobile phone applications in the modern world. The study concluded that the market for mobile applications is rapidly increasing. In the year 2013, it was estimated to be worth $50 billion (Ghose & Han, 2014). The study used an econometric model and found out that there is indeed an increase in the demand for mobile applications.
Ahmed and Shaukat (2017) conducted an extensive study on how the use of computers in the workplace affects the quality of life of oh human beings. Questionnaires were issued and analyzed. The study found out that the quality of life of employees who use a computer is quite better than the quality of life of employees who work without computers.
From the above studies, it is therefore evident that the services and product provided by Fiesta Incorporation are valuable. Technology forms part of our day to day life and as long as the company keeps up with the changing needs of customers and is up to date with modern technology it stands to perform well in the market.
References
Ahmed, I., & Shaukat, M. Z. (2017). Computer users’ ergonomics and quality of life – evidence from a developing country. International Journal of Injury Control and Safety Promotion, 25(2), 154-161. doi:10.1080/17457300.2017.1415361
Ghose, A., & Han, S. P. (2014). Estimating Demand for Mobile Applications in the New Economy. Management Science, 60(6), 1470-1488. doi:10.1287/mnsc.2014.1945
Grossman, R. L. (2009). The Case for Cloud Computing. IT Professional, 11(2), 23-27. doi:10.1109/MITP.2009.40
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