Due in 8 hours. Grade A+ needed.

We are requesting the use of MIK guitars brand name to open repair centers in New York and Pretoria in the United States and South Africa respectively. We will utilize materials from the main company in order to retain the brand in all aspects. We are requesting the ability to conduct the research necessary to fulfill the request.

Problem:

The manufacturing and sale of musical instruments have grown over the past years. There is emergence of new firms making and supplying guitars in almost every country around the world.  We have been able to maintain the brand name and market share during this time.

Increases in competition from similar businesses have resulted in the eroding of the customer base. (Jim Cockrum, 2011)  Our competitors have been able to capitalize on our errors in marketing and lack of repairs from the original company.  The company currently lacks manufacturer specific repair facilities to address manufacturer errors. (American Bar Association, 2005)

Solution:

We propose to establish a fully equipped repair center with both materials and human capital in the heart of New York City in U.S and Pretoria in South Africa.  These locations are strategic as we have both manufacturing facilities and market share in these locations.

Our product is an international brand and research has shown that a closer proximity to the customer base will provide a competitive advantage. (Anna McGrail, 2008)   The company will be able to compete with competitive brands that have expanded into these markets.

Benefits:

Benefit #1

The expansion will provide locally available repairs to our products.  By establishing the repair center in both cities it will make our product easier to sell without the fear from our customers receiving counterfeit guitars after repairs are completed.  This will help maintain our brand product as original as it was before the guitar malfunctioned increasing the level of reliance and maintenance of brand.   The result will be an increase in market share and an increase to the revenue of the company.

Benefit #2

Customer satisfaction and brand loyalty will increase as a result of the repair centers.  Customer satisfaction is the key to the business model.  The repair center will alleviate the customer worry of guitar malfunctions.  The repair center will also save customers time and money by utilizing a repair center that specializes in their specific instrument.

Benefit #3

The repair centers will provide the company with a new source of revenue.  The company will increase annual sales by introducing a new service to the customer base.  The customer currently obtains service from repair shops that do not specialize in our product line.  These repair centers will provide expert craftsmanship and factory certified parts to ensure the customer receives the highest quality repair.  

Cost analysis:

The following costs will be incurred to efficiently run and operate the repair centers.  We estimate that the repair centers will be financially viable after 3 months of operation.  The costs include rent and employee salary for the 3 months.

Item	Qty	@	Total in dollars
professional fee	2	118	$236
locating office/store	2	300	$600
Partitioning	1	488	$488
Equipments	2	1176	$2352
Rent	1	1764	$1764
employee training	8	118	$944
business license	2	235	$470
Uniforms	10	26	$260
Salary	10	569	$5690
administrative expenses	1	352	$352
Maintenance	1	706	$706
Miscellaneous	1	600	$600
Total	$14392

CONCLUSION:

MIK Guitars is losing market share and competitive advantages by not having specific repair centers available to our customers.  Opening repair centers in our top markets will provide the customer base with facilities that will ensure brand integrity.  This will increase customer satisfaction which will result in increased revenue for the company.  The start-up costs total $14,392 and includes 3 months of rent.  We estimate that the repair facilities will be financially viable after 3 months of operation.  The request is to conduct the research necessary to determine if opening repair facilities are the correct option to address the issues facing the company.

 

 

References 

American Bar Association, (2005), Franchise Law Journal, American Bar Association 

Forum Committee on Franchising

Anna McGrail, (2008), The Essential Business Guide, Essential Business

Jim Cockrum, (2011), Free Marketing: 101 Low and No-Cost Ways to Grow Your 

 

Business, John Wiley & Sons

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American Bar Association, (2005), Franchise Law Journal, American Bar Association Forum Committee on Franchising

This kind of the article describes the legal issues that are involved in the process of franchising a business. From the perspective of the legal it’s important and necessary to give the draft of the documents on the legal for success attainment in the system. The article outlines the contents of the franchisor legal counsel. Finally the franchisor prospective is also required to look on the additional issues that surround the business and the capability of the operations to be franchised besides the contents that are outlined in the legal counsel of the franchisor (American Bar Association, 2005). 

Anna McGrail, (2008), The Essential Business Guide, Essential Business

This article describes the advantages and the disadvantages that are involved in the process of franchising your business. This article gives a guideline to examine the pros and cons that are involved in the process of franchising the business and helps entrepreneurs to be able to plan well before entering into the expansion of the business. The information in the article also makes the entrepreneurs to make the decisions that are right (Anna, 2008).The pros that are discussed in the article includes: accessing to the talents that are better, expanding the capital easily and limiting the risk on the growth.  The disadvantages involved in the article includes: limited control over the managers, core to the community becomes weaker and challenges on the innovation ensues.

 

 Jim Cockrum, (2011), Free Marketing: 101 Low and No-Cost Ways to Grow Your Business, John Wiley & Sons         This kind of the article gives ways on how one can grow his or her business. It explains ten practical ways on how to grow business from one to another. This helps the people who have already started business and need to take their business to the next step and grow it. The ways that are explained includes: opening another location of the business, giving the business as a franchise or an opportunity to the business, licensing the product, creation of an alliance with the similar kind of business to yours, diversifying the operations of the business, creating other market targets for the business, trying to win contracts of the government, merging with other business to maximize profits, and expanding the business globally and to the internet (Jim, 2011).