STR 581-Week 5 Implementation, Strategic Controls, and Contingency Plan

Running head: EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS 1

Weight Loss Singles Dating Agency is an online dating service tailored to provide companionship services to individuals over the age of 18 who have undergone any form of weight loss surgery. For effective strategic formulation of implementing this new business, it is critical that the company’s external and internal environmental environments are analyzed to ensure competitive advantage is achieved. The following is the analysis of the external and internal environments for the company, its competitive position and possibilities as well as the organizational structure and impact on the organizational performance.

Environmental Analysis

To perform an efficient external and internal environmental analysis it is imperative that the researcher scrutinize all factors affecting implementation of the proposed business. These factors include:

· Evaluate strategic position of Weight Loss Singles Dating Agency

· Assess the online dating market

· Assess proposed business of online dating industry

· Assess the competition

External Environmental Analysis

To provide conclusions needed for successful implementation the researcher will commence with external environmental investigation. Major factors to explore include:

· Barriers to entry

· Threats of new entrants

· Threats of substitutes

· Rivalry between existing firms and

· The power of buyers and suppliers

Barriers to Entry

The company will have very few competitors in contention. Currently, the researcher has discovered that a strong brand recognition does not currently exist as this is a relatively new niche market. Start-up costs will be kept at a minimum as investors will also provide employee assistance in operations. However, increased proposed regulations on the online dating industry will prove to be a challenge when implementing the business model. Currently the industry is not regulated by Federal law, but many US states have proposed bills in legislature to increase protection of users on online dating sites through mandating background checks of all customers (Internet Business Law Services, 2015).

Membership will also increase knowledge on identified barrier to entry to ensure strict adherence of regulations many companies avoid. Benefits also include minimizing future entrants as those who do not comply with standards are shut off and prevented from participating, thus making the online dating market less saturated. Given that business will occupy a secure and defensible position in the market, it will ensure a dominance of the market through heavy advertising for public familiarity and visibility purpose (Porter, 2008). However, with the steady growth that the industry is experiencing preparing for increased threats from new entrants is inevitable.

Threats of Substitutes

Weight Loss Singles Dating Agency will experience numerous threats from different substitute companies offering online dating services as the market continues to experience tremendous financial growth and investment (Menke, & Menke, 2012). Substitutes include paper publications such as newspapers and magazines, as well as other social media outlets. These substitutes can reach a large target audience. Most display increased investment in the online dating market as evident with the diversification exhibited. Therefore, threats identified are reaching a host of people thus posing an indirect threat to the company because of the immense popularity displayed (Menke, & Menke, 2012). These businesses also have the financial muscle and capabilities to run online dating operations in similarity to the proposed start up.

Existing Rivalries

Power of Buyers

Finally, there is the issue concerning the power of supply controlling the market for online dating. Because of increased competition, there are suppliers who are readily available to provide services including renting and web advertising to different companies who want to stand out from the rest (Porter, 2008). The company will have to outsource for specific services including web design from professionals to help in the creation of an appealing and secure website that the target customers will feel comfortable navigating.

Internal Environmental Analysis

Internal examination for the organization includes:

· SWOT Analysis

· Internal Start Up Cost Analysis

SWOT Analysis

The company has performed the SWOT analysis and has determined conclusions on all factors.

Strengths

The nature of the business promotes competitive advantage as it does not have to compete with the other online dating sites that only target match-making of common single individuals (Romm-Livermore & Setzekorn, 2009). The company will also take advantage of its reputable integrity and recognition status in its operations. This will be a salient factor in the customer’s decision-making mechanism as a long term plan for operations, thereby establishing market presence and relationships with different players in the industry including suppliers and customers (Pearce, & Robinson, 2013).

The business plan displays evidence of market leadership in terms of prices. This will prove advantageous as there are many tech-savvy and price conscious consumers ready to spend time online to meet potential partners. There is also the unique combination of the high technology and personal touch in the company’s intended use of phone supports services.

The management team is comprised of experienced and skilled founders, including a financial accountant and a computer engineer. In addition to training and development strategies put in place, the organization should have the required staff necessary for operations. Finally, the organization has enough capital to start and finance the business as there are two potential financial investors who will account for about a third of the overall financing. One third is derived from personal savings and partner contributions. The final third portion of the capital is bank loan, payable in 72 installments.

Weaknesses

Impediments to competitive position includes issues that the brand is still new in the market and as such not very recognized. This factor might hinder potential growth as the organization might need more time to promote visibility of the brand. Another potential weakness is the company’s lack of physical assets that could help in paying off the short term liabilities. As this company is in the startup phase this may prove to be a hindrance in obtaining necessary funding to launch the business.

Opportunities

The company has a host of opportunities including the capability of obtaining more users/customers through advertising the site to other weight loss sites. Those who consult these sites are potential clients as he or she has experienced a personal weight loss journey and are viable candidates for the services offered by the business.

Another opportunity presents itself as a result of the growing number of persons using the Internet within the company’s target age demographics. These individuals are heavily dependent on the internet in daily activities and would most likely use the dating site more often (Wallace, 2009).

The business has an appealing marketing strategy and as such, minimal time is necessary for services to be recognized by the target market (Webb, 2013). The marketing strategy exhibits techniques in which the business will connect and help develop new relationships, following the notion of having gone through a similar experience and journey of weight loss.

Threats

One potential threat presented is associated with low product diversification. The business has chosen to concentrate on match making services targeted solely on individuals who have gone through weight loss surgery. Diversification can present an increase in market share. However, the company has decided this move is too risky the first year of startup operations and has chosen to examine other possibilities upon review of financial data over the next two years.

Another problem involves adherence to online dating service regulations. As previously mentioned regulators are trying to establish protection for the growing number of the people using these sights. The company will experience challenges as a player in the industry as administration will need to build a database of users from scratch (Romm-Livermore & Setzekorn, 2009).

Financial Budget /expected expenses

The following is a hypothetical data analysis exhibiting estimates of costs associated with startup operations. Stated amounts can vary during implementation.

Competitive Position

The online dating industry has been dominated by quite a number of large corporations who already have established websites. Aggressive competition of the well-known, publicly traded competitors include InterActive Corp (Match.Com, OK Cupid, Chemistry.Com), Jiayuan.com, Spark Networks, Inc. (Christian Mingle, JDate), and Friend Finders Network, Incorporated. These companies have market capitalization of about $713 million, $44 million, $58 million, and $197 million respectively (Fulcrum Financial Inquiry, LLP., 2015). The main competitive edge is the niche market that is currently untapped. As of 2013 the average number of bariatric weight loss surgery patients exceeded 179,000 (ASMBS, 2015). This potential market is currently unexplored and can promote huge growth potential.

Another competitive edge that the organization has is the ability to provide weight loss support services to members. The company will partner with other weight loss sites to provide valuable services to include weight loss support groups, health supplements, organic food/produce, and etcetera.

Organizational Structure

Weight loss Singles Dating Agency adopts a functional organizational structure which comprises of the Board of Directors to oversee the operations of the company through the help of the Chief Executive Officer (Thompson, & McHugh, 2002). The corporate structure will be as follows:

· Chief Executive Officer

· Chief Financial Officer – Also acting President

· Managers

· Marketing

· Customer Service

· Information Technology

· Accounting/Finance

· Human Resources

· Personnel supporting each department

Organizational charts will be available online for the purpose of being interactive and updating any changes. This structure should increase efficiencies as there will be specialization in every department, which is consequential to improved performance. The structure should also enhance easy subscription, accessibility, and use by members. This ensures availability of support team to monitor the site for any fraudulent activities. This structure has been chosen for the purpose of increasing customer satisfaction through specialization of different areas of the business.

References

http://connect.asmbs.org/may-2014-bariatric-surgery-growth.html

Centers for Disease Control and Prevention. (2015). Retrieved from http://www.cdc.gov/obesity/data/adult.html

http://www.fulcrum.com/onlinedating_appraisal.htm#_ftnref23

Info Please: US Census Data. (2015). http://www.infoplease.com/us/census/data/demographic.html

Marsden, R, (2010). Would Like to Meet: The Truth About Internet Dating'. Retrieved from http://www.independent.co.uk/life-style/love-sex/romance-passion/would-like-to-meet-the-truth-about-internet-dating-2124529.html

Menke, W., & Menke, J. E. (2012). Environmental data analysis with MatLab. Amsterdam: Elsevier.

Pearce, J. A., & Robinson, R. B. (Eds.). (2013). Strategic management: Planning for domestic and global competition (13th ed.). New York, NY: McGraw Hill.

Porter, M.E. (2008), On Competition: Updated and Expanded Version, Harvard Business School Publishing: Boston, US.

Romm-Livermore, C., & Setzekorn, K. (2009). Social networking communities and e-dating services: Concepts and implications. Hershey: Information Science Reference.

Thompson, P. & McHugh, D. (2002). Work Organization: A Critical Introduction (3rd Edn). Basingstoke: Palgrave.

Wallace, Earl C. (2009). The Three-dimensional Leader: Negotiating Your Mission, Resources, and Context. Tate Pub & Enterprises Llc

Webb, A. (2013). Data, a love story: How I gamed online dating to meet my match.