Nathaniel Mc Murray
Managerial Economics and Globali/ ECO 550
Dr. V. Dolgopolov
Program1 is an on-line music store that specializes in custom made music appliances programming, repairs, and the sale of personal computers, laptops, I-Pod’s, MP3 players, CD’s, instruments, and other devices associated with music. Program1 will use revenue from studio time sold along with any cash generated from entertainment events to help satisfy the entertainment services in the on-ground stores. The on-line feature will allow a convenient shopping experience for customers to purchase all of the products on-line. In addition, Program 1 will differentiate their products and services by having a variety of all genres of music from the 60’s through current day selections. Finally, Program 1 will provide a niche unlike its competitors by serving communities on a global frontier which will be an effective method for accomplishing their mission.
Program1 will deal honestly, fairly, and friendly with stakeholder, shareholder, employees, suppliers, and the valued customer to ensure their demands and concerns are addressed in a timely fashion to build long-lasting business relationships. Working in communities and making strong commitments towards education, family, harmony and customer service through the innovative entertainment services the organization provides is the cornerstone of the company’s brand. Program1 will abide by all regulatory laws to ensure their integrity and ethical obligations are solidified. Holding true to these values will help the organization to establish a healthy share of the market to satisfy all stakeholders and build a winning brand for Program1.
Program1 has determined three internal and four external forces and trends that impact the success of Program1. The legal and regulatory system is the one of the forces Program1 identified as critical in aiding the organization in achieving their objectives. A strength in this force is that the barriers to entry relatively non-existent. Stores like RadioShack, and Guitar Center have already been established. A weakness that arises due to regulation is when zoning and internet privacy issues become a problem. Program1 has an opportunity to learn from their competitors and attempt to avoid any mistakes concerning laws that could be costly. The trends on music stores of this magnitude are none and little competition exists so threats are minimal. Another external force that affects Program1 is the ability to effectively expand globally. The strength of globalization is that this business is innovative and being able to adjust to each global market will be a challenge that Program1 will have a clear advantage in because their product will be the fastest to penetrate. One weakness of globalization is the ability find management in the different countries that Program1 will occupy. Again no trend has been established globally other that downloads and ringtones which Program1 will use in their strategy as well. This is an opportunity to make an outlet for the serious music lover and have a unique niche. The threats are competitors that will follow in Program1’s footsteps and have different innovation with their product. The final, factor that Program1 has to effectively manage to accomplish the mission is technology. Program1 strength in technology is the IT department. The information technology department will set up state of the art systems to ensure that Program1 will have seamless operation. Understanding how to integrate all of the processes on a single system may become a weakness should management not be fully trained on all systems. This is an opportunity to become a powerhouse in not only the music business but take a seriously look at ventures into the electronic industry. Program1 is not totally sure of the risk associated with trends at this time but other technology-based businesses are strong competition....