Business strategy for introduction of affordcomp+

Abstract

The objective of the project is to study and evaluate the need for the product AffordComp+. Also , to study the value chain and analyze its viability and sustainability in the long run Affordcomp was incorporated in 2004, and has devised a device computing and communication device called Affordcomp+. It is solution which takes care of cable TV, internet communication, documentation, basic gaming etc. thus substituting a PC in any family. It is priced at Rs.5000 thus revolutionizing the PC industry. The Affordcomp team sees Affordcomp+ to be a product targeted at the bottom of the pyramid. “Given its price performance capability and also it`s ability to scale to very large deployments and with greater tolerance to failure, AffordComp+`s solution has a very very large market potential”. Relevant Issues 1. Identify the relevant market segments and the perceived value proposition. 2. Identify the value chain of the model and the various relaionships 3. Analyze various scenarios and identify profit and risk sharing propositions. Value Chain The final objective of our report was to look at the value chain and suggest an effective way to rationalize the value chain with Affordocmp`s profit generation as the most important objective. In this section, we have analyzed the value chain from Affordcomp to the final consumer and generated scenarios for value creation for every member of the chain and checked every scenario for its long term implications on Affordcomp and other entities and sustainability. Conclusion The sales & distribution for AffordComp+ thus is like a content provider in the Cable TV industry like ZEE, StarPlus, ESPN or BBC Afford will provide and maintain the infrastructure for the Affordcomp+ network throughout the chain with the help of the manufacture and his after-sales service team. Afford will have a Direct sales team to approach LMIs to start partnerships. The LMO will host the Afford Server, and interface with the customer providing last mile connectivity installation and support of the STBs (access devices) at homes. The LMO will, therefore, act like a salesman for Afford and will earn a commission on sales of STBs and a share of the revenue from the subscription. Current plans envisage use of the existing Internet service for high-speed connectivity to customer home. The Multi System operator(MSO) will provide the backbone of the network (the prime rib of a MAN), aggregating the Last Mile Operator`s (LMO) networks and will be the gateway to the internet. The C&F agent distributes the STBs to the LMOs in its area. The MSO will also play the role of a C&F agent for the devices (Affordcmp+). We have analyzed the value chain in sufficient detail and highlighted how to create value for every player in the chain in the short and long run, keeping sustainability in mind, and also retaining substantial control it . We see, thus that in the long run everyone is likely to generate profits (with affordocmp and the manufacturer generating incremental profiles), and every player is incentivized to play this part well to ensure profitability.