Business Proposal on "Cango Final Report"

Business Proposal 8 pages (3101 words) Sources: 5

[EXCERPT] . . . .

CanGo Final Report- Rev2

In 2006, Liz Bennet realized the lucrative and efficient scope of Ecommerce. Liz established an online entertainment company, CanGo Inc. that provided online video, audio, book and gaming-based entertainment. This business had a scope of capturing mass market of various market segments as it provided cheap entertainment opportunities in the current era of economic crisis and increasing inflation.

Despite of having a skilled team, CanGo Inc. lacks a concrete business plan. The long-term goals are vague and there are is a lack of clear strategic plan as to how those goals will be achieved. While a clear organization structure is present and hierarchal positions are well defined, too much centralized decision making prevails. Lack of proper communication channels results in uninformed decision making and employees are often left with little sense of clear direction. This means that there capabilities are not being utilized efficiently.

The online entertainment industry is getting saturated each day and competition is very tough. The increasing rate of uncontrolled piracy is adding extra competitive pressures. This calls for the organization to develop an aggressive marketing strategy in order to ensure its survival in the market.

Introduction

With the invention of World Wide Web, the corporate sector has evolved into new dimensions. The fast, quick, reliable, accurate and efficient internet systems of E-commerce have provided the world with new and unique business opportunities. More and more entrepreneurs are now taking keen interest in a completely online business rather than a conventional brick and mortar business. This has made the internet a multibillion dollar industry (Plant, 2000). It has also created more employment opportunities and has made lives of businesspersons, employees and the consumers much easier. Considering the lucrative opportunities offered by E-commerce, CanGo Inc. was established by Liz Bennet in 2006.

CanGo Inc. is a 100% online company that deals in providing E-commerce business solutions. The company specializes in online entertainment including books, magazines, and audio and video entertainment forums. The company aspires to make its mark in the online gaming industry as well. The company was founded in 2006 by Liz Bennet and it currently has four consultants. Since then, the company has strived to make its mark in the internet corporate industry. One of the company's major achievements includes being chosen as the Regent Business Leader of the Year in 2009. Having said that, the company still has a lot of weak areas that need to be worked on. The major pitfalls of the company include lacking a concrete business plan and serious issues with personal management.

SWOT Analysis

The SWOT analysis for CanGo Inc. is discussed under the following sections.

Strengths

CanGo Inc. is a 100% online establishment with zero brick and mortar existence. This makes the business cost efficient.

CanGo Inc. primarily caters to online entertainment industry. This is a highly profitable sector with an immense scope of growth. Online reading, magazines audio and video consumers are increasing everyday that provides CanGo Inc. with a broad consumer base.

CanGo. Inc. has a cohesive and well motivated workforce that is both skilled and innovative.

The type of business that CanGo Inc. is involved with has a scope of a lot of diversification.

Weaknesses

The most basic weakness of the organization is the lack of a concrete and cohesive business plan. Lack of business plan can pose serious problems in setting and achieving long-term strategic goals.

Despite of a well motivated and skilled workforce, CanGo Inc. is too centralized as far as decision making is concern. Often, it delays the decision making process.

Too much centralization and communication gap results in uninformed decision making. Decisions are not properly communicated to the workforce, which in turn results in lack of clear direction among employees.

Opportunities

The increasing accessibility of the internet around the world will enable the company to have an international consumer base and make its existence in other countries as well.

CanGo Inc. is planning to expand into the online gaming market. With the increasing trend of online social networking, this has immense profitability chances.

CanGo Inc. can come up with new and innovative forms of entertainment. This can include introducing interesting and innovating applications for social networking websites such as Facebook, or launching a social networking website of its own.

Threats

The online entertainment market is getting more and more saturated as more and more entrepreneurs are stepping in the industry.

The increasing piracy and easy availability of torrents attract people away from paid websites

Absence of a concrete business plan has resulted in a lack of concrete performance-based goals.

Lack of employee benefits might result in demotivation of employees in long-term.

Personnel Analysis

Since its establishment in 2006, CanGo Inc. has managed to recruit skilled and motivated employees. So far these employees have given their best to the organization. Moreover, the organization provides its employees with good employee benefits in order to keep them motivated. On the contrary, as an organization, CanGo Inc. has failed to utilize the potential of its workforce at its fullest.

Firstly, CanGo Inc. lacks a concrete business plan and clear mission and vision statements. This means that the employees will have little idea about the firm's goals and objectives. This might lead to a lack of sense of direction among employees. Many skilled and ambitious employees prefer working in organizations that provide scope for future promotions. Absence of future objectives and strategies might lead such an employee to job insecurity or dissatisfaction, which in turn might affect the employee productivity. Under such circumstances, the costs incurred in employing skilled and qualified employees will not justify the output produced by that employ. This will question the organization's cost efficiency.

The second problem that CanGo Inc. faces as far as its human resource is concerned is too much centralization. CanGo Inc. recruits employees that are highly skilled, qualified and motivated and have an ability to take their decisions. Despite of this fact, too much centralization prevails in the organization as far as decision making is concerned. The kind of business that CanGo Inc. deals with calls for a lot of innovation and creativity. This means that the management must welcome ideas from the rest of the workforce. On the contrary, little decision making and suggestions are welcomed from the workforce. As a result, the potential innovation of ideas narrows down to top of the line management only.

Thirdly, CanGo Inc. does not have clear channels of communication within its organizational structure. As a result the messages and information is often improperly communicated to the employees. Often uninformed decisions are also made. As a result, despite of having capability, employees are left with lack of clear direction. This is highly demotivating for the employees, especially for those who are ambitious and like to take responsibilities.

Market Analysis

The internet entertainment industry is now a multibillion dollar industry that is highly saturated. As far as video entertainment is concerned, YouTube holds the largest market share with an almost monopolistic existence. Online gaming is getting more popular in the form of social gaming and the major market share is held by Zynga. As far as music and Ebook is considered, easy availability of illicit pirated material attracts people away from using paid legal websites. A good marketing strategy is needed in order to combat competitive pressures. Since the market is quite saturated with additional pressures of piracy, CanGo Inc. will have to offer something unique and innovative to consumers. The major market share of online entertainment industry is controlled by giants such as You Tube and Zynga. CanGo Inc. can combat this pressure by getting into joint ventures and collaborations. Also, if financially viable, CanGo Inc. can go for mergers and acquisitions in order to expand and minimize competitor's risk.

Competitor's Analysis

As mentioned earlier, the online entertainment industry is getting more and more saturated each day. As far as online gaming is concerned, major competition comes from free online gaming sites such as Miniclip.com and social network gaming companies Zynga. It has been observed that social gaming on Facebook is getting much more popular than conventional online gaming. In order to compete, CanGo Inc. can collaborate with Facebook and develop social gaming just like Zynga. Social gaming also has an added advantage. It allows the gaming company to market other products of the company through the game and can promote the company to a large number of people registered on the social networking sites. Apart from that, CanGo Inc. also faces competitive pressures from websites that allow free downloading of pirated material and torrents (Lauden & Traver, 2008).

Marketing Strategy

Being a business that deals in the online entertainment, CanGo Inc. enjoys an edge of having a vast target market that can easily be segmented into various market segments. Apart from that this type of business also has a scope of a lot of innovation and diversification.

Target Market

Currently, the service range offered by CanGo Inc. includes online audio, video, gaming and reading services. This allows… READ MORE

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