Table of Contents
Opportunities & Threats by Porter’s 5 Forces Model
Business Strategies, Web 2.0 Technologies & Applications
The Business Model
References & Overview
The purpose of this report was to design a start-up strategy and IS infrastructure for Ruth & Luke (R&L) Crowdsource’s business. Research for this report identifies the focus (target market), opportunities and threats in entering the market and provides a detailed business model.
This report incorporated recent statistical data in relation to online social media, various journal articles and books obtained online.
Research for the target market indicates that the seekers comprise of mainly businesses of a variety of sizes that are familiar with the practice of crowd-sourcing. In regards to the solvers, findings suggest that university students and academics will be the dominant target market for R&L Crowdsource’s business.
Using the five-forces model to identify new market entrants, substitute products and services, customers, suppliers, and competitive rivalry, overall there is a medium-high level of threat in entering the market.
Further research recommends that R&L Crowdsource should focus more on achieving an easily accessible system with availability to an extensive range of audiences while raising reputation and credibility by advertising through online social media, the ‘Google’ search engine and newspapers. The efficiency and effectiveness of R&L Crowdsource’s business operations will be dependent on the amount of investment into the appropriate information systems, which may be financed through revenue obtained by charging a fee to seekers.
Target markets (seekers/solvers)
R&L Crowdsource will be commencing the online business initiative for clients who are seeking for their business problems to be solved through outsourcing the business solution. To identify potential target markets R&L Crowdsource needs to consider following characteristics:
Type of clients : R&L Crowdsource needs to determine the type of business that their client conducts i.e. retail companies or IT companies. Online and offline research needs to be undertaken to see which sectors of these markets need R&L Crowdsource’s business solution services. This is because a variety of companies encounter different levels of difficulty within the businesses operations. As this is a relatively new type of service, it has not widely adopted it yet. Therefore, R&L Crowdsource should focus more on those who have used this service previously or are in the same industry where their competitors have used due to the fact that they are more likely to be interested (Alzawahreh & Khasawneh, 2011). This can be done through online research and surveys.
Size of clients : Online research conducted primarily from Innocentive.com (www.Innocentive.com) suggests that the size of clients should not be prioritised. The research revealed that regardless of whether they are operating internationally or domestically, a variety of different sized companies are likely to favour outsourcing their business problems. Examples of these companies include P&G (Spradlin, 2012).
In order to target the market for seekers effectively, the directors of R&L Crowdsource should reflect on their experiences as past seekers. Primarily, different participants will conduct each project and depending on the characteristics of the projects, it may require more time and work. People who already have a full-time job are not likely to desire spending their spare time on additional works unless it has either a high level of reimbursement or it is an area of interest. Therefore, R&L Crowdsource should initially seek university students and academics that are...
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