T.A.G. Partners System Case Analysis

*TAG Partners System*, Inc. TAG’s business plan is to provide small trucking companies complete back office solutions and strategic alliances to eliminate the competitive advantage large trucking companies’ benefit from. The small trucking companies will receive greater revenue per mile and have lower operational expenses through TAG’s services, which are gained by leveraging a large client base, forming strategic alliances, and implementing their software. TAG’s management team is offering a 20% stake in the company for $100,000 in equity funding. Management’s perceived value based on the 20% stake for $100,000 indicates a valuation of $500,000 would be necessary in order for an investment to be considered. SWOT Analysis Strengths TAG will offer a complete back office solution for small trucking companies. TAG would fill a niche, as there are no companies who offer complete back office solutions for small trucking companies. TAG offers a business model which cuts out intermediaries, and can increase margins for small trucking companies with no leverage. Strategic alliances have been acquired in order to offer a complete end-to-end business solution. Partner companies are already established and specialize in their respective area of business. Weaknesses TAG’s software has not been patented. Receiving a patent is not an easy task and leaves risk of the software infringing upon an existing patent, or someone copying the software prior to a patent being applied for. Management has no experience successfully carrying out a business plan and does not have a detailed exit strategy. High volumes are necessary to obtain any competitive advantage. The dramatic increase in sales in TAG’s financial summary is not adequately justified. Customers could go directly to the suppliers on their own and possibly save more money. Opportunities An