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Strategies for Dominating the UK Market with Affordable Web-Based Accountancy Solutions

This report identifies the gap in the market for low-end web-based accountancy packages targeting small and new businesses. It explores the favorable political and economic environment, the rising dependence on IT, and the competitive landscape defined by high customer bargaining power and threats from substitutes. Internal strengths include a customer-oriented approach and reliable service, while weaknesses involve perceived reliability. The strategic focus is on brand awareness, market penetration, and growth to achieve significant turnover and profitability objectives within a specified timeframe.

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Strategies for Dominating the UK Market with Affordable Web-Based Accountancy Solutions

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  1. EJP Software Marketing Report

  2. EJP Software • Web-based accountancy packages for small businesses • Gap in the market for low-end web solutions • Software deployment & hosted SAAS • Support & installation services

  3. PESTEL • Political – generally favourable free trade • Economic – businesses growing quickly • Social – increasingly au fait & dependence on IT • Technology – improving comms & web • Environmental – global warming • Legal – Issue of digital piracy

  4. 5 Forces • Bargaining power of Customers – High – lots of accountancy packages • Bargaining power of suppliers – Low – in house development • Threat of substitutes – High – competitive market • Threat of new entries – High – low barriers to entry • Competitive Rivalry - High

  5. 3 C’s – Kenichi Ohmae • Customers • Small businesses (generic & specific) • Reliability & stability • User friendliness • Corporation • Good leadership • Good niche in market • Dedication to customer needs • Competition • More expensive providers • Better brands, and more reliable appearance

  6. SWOT • Strengths • Customer oriented perspective • Good quality reliable service • Niche market • Leadership (Vision) • Good communications • Weaknesses • Small • Perceived as less reliable than IBM/SAP

  7. Opportunities • Growing IT skills – predominance of web services & easy access • Cheaper computers • 100k new small businesses each year – all need accounting software • Threats • Legislation unfavourable to new start ups & taxation costs • Competition • Global warming (environmental costs of data centre)

  8. Objectives • Marketing Objective • “Growing brand awareness in New SMEs within UK to 90% prompted in 2 years” • “Increase turnover by 25% within 1 year” • “Increase profitability by 10% within 1 year”

  9. STP • Segmentation • Market segmented by localised area • Focus on local SMEs • Targeting • New SMEs • Positioning • Low cost competitor

  10. PLC (BCG Matrix) • Introduction – question mark phase • Market penetration • Focus on local area offering quality services to small business & specifically new business • Expand awareness out to rest of UK

  11. Gap analysis • £25k shortfall in turnover • £1k shortfall in profit • 65% shortfall prompted BA • How to close Gap • Ingor Ansoff - Growth Strategies • Market Development (focus on new business, build UK BA)

  12. Strategy • Low cost • Targeted SME low cost • Reliable but low cost • Market Development

  13. Marketing Mix • Product – reliable software • Price – low cost • Place – Internet & personal sales • Promotion - BTL • People – Technically skilled sales staff • Process – reliable; integrated CS • Physical Evidence – Good website

  14. Place • UK growth • Local area focus

  15. Budget • Year 1 - 10% of £100k - £10k first year • B2B = BTL • Exhibition for start up businesses • Flyers • Business cards • Incentivise referals

  16. Balanced Scorecard • Financial • Expected acquisitions returning within 2 yrs - £4bn/quarter - growth • Customer perspective • Brand recognition in Chinese market • 95% brand recognition & customer satisfaction from year 1 • Learning & growth • Skills development in customer service • Innovation • Improved processes for supply chain management and CRM

  17. Controls • If balanced scorecard targets are missed • Increase expenditure on ATL • Given extremely high planned growth extra investment over and above the planned rates are contingent • Push promotions across China

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