Market analysis | Business & Finance homework help
The business is based on application software that is meant to help students financially by enabling them to balance classes, homework and social life. Bloc brings discounts on food and exercise classes to students and makes it accessible in an inexpensive way. Students only need to open the app and view the deals of the day. By doing this, Bloc will generate revenue through a $0.99 charge per user for the app by advertising the revenue earned from the business. In addition, Bloc will create a stronger bond between the students and the community. The application will be distributed through app stores on phones and tablet devices. Additionally, the company will expand the channel of distribution and license the software to universities that would like the discounts.
Bloc will mainly focus on students who are willing to spend less but gets the most from their money. College students from age 18 to 24 have in average spend $500-$1000 on grocery budget. About 15 precent their total spending and is reasonably to believe that the average spending will continue to grow due to inflation and lifestyle improvement. Upperclassmen such as seniors tend to have a better plan on spending their money since they have been around the area longer than those newcomers. They can compare the price of certain product or service and gets the most value of that throughout their daily life. However, newcomers such as freshmen will not have the opportunity to do that and easily wasted their money due to their lack of local knowledge; therefore, Bloc will be particularly useful for them with precise and helpful service.
Bloc will enter the Mobile Coupon Application Industry since it is an integrated personalized coupon application and will focus on what the target market want while maintaining a good relationship with the clients. The mobile coupons provided by the company will allow small retailers to establish customer loyalty and provide them with incentives to participate in in many coupon programs. The industry is very competitive because there are many application companies competing for the same suppliers. The strengths of Bloc include extensive knowledge of the target market, differentiated focus on student’s experience and privacy protection. By advertising correctly, using inexpensive local knowledge and becoming local everywhere without inviting trouble will help prevent failures in future. By being sensitive to changes in economic, political, and socio-cultural and changes in technology, the company is going to succeed. Bloc will spend money on research and development to achieve better results on customer need s and preferences. Furthermore, block will advertise correctly to gain social knowledge that will help prevent trouble. Personalization is also going to play a big role increasing demand for Bloc. Since the customers are students and the company understands their needs, the product will generate enough revenue within the first few years of entry into the market.
In general, Bloc will compete favorably with the other companies to ensure its survival in a failing economy to increase its finances. On the whole, the company is focused on technology and as long as it improves its products and services, it is assured of success.