Bluelock

Bluelock is an IT corporation that delivers enterprises with IT infrastructure amenities with its data servers hosted in the public cloud. Services provided by the corporation help their clients make knowledgeable decisions risk agility and operational efficiency. The business offers cloud computing solutions approach for IT departments and small businesses enterprises, seeking to streamline their operations. The provided amenities encompass cloud monitoring, public cloud, load balancing, private cloud, managed hosting, hybrid cloud, IaaS, disaster recovery and virtual private cloud (Fitzek & Katz, 2014).

Bluelock complements cloud-computing services with the provision of online collaboration and video conferencing to small businesses. These facilities are critical in today’s businesses. Cloud computing involves delivery of a link to software online, so that businesses and individuals can utilize the software without necessarily having to download the software (Fitzek & Katz, 2014). This has led to numerous benefits for the businesses that comprise: decrease on the cost of technological resources, increased yield, improved accessibility, less employee training, amongst many others. This is because businesses no longer have to purchase expensive software for their processes. Video conferencing also cuts on costs needed for travel.

Owing to increased competition in the workplace, businesses are seeking to augment their efficiency. Cloud computing provides a favorable platform for businesses to lower their operational costs, while simultaneously increasing their productivity (Fitzek & Katz, 2014). Therefore, Bluelock has a sufficient market for its products and amenities. Currently, organizations offering this facility are focused on big companies and often neglect small ones that also require the services. The market opportunity for the company is high, as it is highly viable given the current trends of the workplace.

Environmental Analysis

Five Forces of Competition

Bargaining Power of Suppliers

            The company provides facilities directly to individual clients and small businesses. No intermediaries are included in the chain of acquisition amenities. The company has sufficient resources to provide small companies and individual clients with the entire infrastructure; they require augmenting their efficiency. Since the company offers services to small companies, companies cannot dictate the price of the services. Bluelock has the opportunity of setting up prices that will allow it to have a favorable profit margin (Harvard Business School, 2007). With this kind of approach that the company decided to take, high profits will be accrued to counter the expenses expected in the course of carrying out their operations. The profits maximization will further the attainment of the company’s goals.

Bargaining Power of Buyers

            Individual clients and small businesses have sufficient capital to purchase these services; they utilize the services to intensify their business operations. Therefore, they obtain sufficient capital from utilizing these products (Harvard Business School, 2007). Moreover, clients consider the acquisition of these services as an investment to their businesses and will not buy the services often. Bearing in mind that the services that are offered by the firm through the product have been proven as sufficient sources of increasing income, many buyers are expected to buy the products, although not often. Since, it is expected that more business ventures are expected to be opened up with time, more market for the firm’s products are anticipated in the near future - a factor that is also likely to increase the range of buyers. This, in turn, increases the base of the buyer’s power.

Rivalry Among Existing Competitors

The key competitors of Bluelock encompass Google, Amazon, and Rackspace. Google Cloud Computing facilities turnover as of 2013 was one billion dollars. Rackspace had a turnover of $31 million (Fitzek & Katz, 2014). Amazon had a turnover of three million eight hundred dollars. The market share for Google is at 15 percent. The competitors have large market share and huge turnovers per annum. In an attempt to augment its competitive edge, Bluelock has announced a distinctive virtual cloud-computing platform as a service. When a client’s utilization increases, the cost incurred by a client increases. When the utilization declines, the charges drop. This service provides Bluelock with a very good competitive edge since clients will opt for the facilities as it is more flexible; which means that there are no standing charges. Bluelock Company, under good management, is likely to make great strides towards competing favorably with the already well established firms in the industry.

Threat of Substitute Products

            The clients utilizing the services offered by Bluelock cannot attain these services on their own. In the event that the clients cease using the services by the company, they will have to source another service provider. Bluelock faces low risk of substitution by the clients (Harvard Business School, 2007).

Threat of New Entry

            The technological infrastructure required to provide the services offered by Bluelock are complex and expensive (Fitzek & Katz, 2014). It is, therefore, difficult for many businesses to enter this industry. Hence, the business is at a low risk of new entry by other organizations. Because of the fact that the company aims to produce unique products and services, it is anticipated that few threats will be available to compete with the products and services that the company anticipates to offer.

Marketing Plan

            Bluelock has three elements in the target market. The first comprises small businesses that need the amenities offered by Bluelock to run their daily operations (Fitzek & Katz, 2014). This component is the main target market that utilizes a majority of the services offered. This is since small businesses need the facilities and seeking a substitute to the facilities would be costly. Small businesses hence request for prearranged services from Bluelock and Bluelock invoices them at the end of every month. The revenue resulting from this target group solely is sufficient to make Bluelock profitable (Fitzek & Katz, 2014)

The second element in the target market involves the working-class people that have enormous data storage requirements owing to the nature of their job. For example, people that are in photography and filmmaking industry need huge storage space to store their raw data files before they convert them to appropriate formats. A two-hour raw video clip may be 100 gigabytes in space before it is converted. Given the limitations on hard disk space of personal computers, these individuals need huge storage space that the company offers. The raw data files are uploaded to the cloud and converted from there. The files are subsequently retrieved after they have been converted (Fitzek & Katz, 2014).

Purchasing external hard disks is a costly way for these individuals to solve their business needs. Hence, these people would use the facilities of Bluelock to handle their huge data (Harvard Business School, 2007). A novel target market targeted by the company involves young adults who have a passion for watching movies, documentaries, and videos. The multimedia above usually consumes huge disk space. These people could store the movies in the cloud and even share them simply with their friends. Bluelock intends to unlock this target group aiming to obtain maximum revenue from its operations. Predictions indicate that by 2016, the global market for cloud services will rise to over $4 billion (Fitzek & Katz, 2014). This will be one of the opportunities that the company expects to lean on in order to maximize the company’s benefits.

4P’s of Marketing

Product

Cloud facilities are the innovative way of conducting businesses today (Harvard Business School, 2007). The benefits linked with the services encompass increased productivity by companies. This is because the company does not require buying numerous hardware. Fewer people are also needed in cloud computing and can hence lessen the costs incurred by Bluelock in paying employees. The company only needs to hire technology experts who will be able to maintain and aid in the innovation of the products that will be produced by the firm. The company is expected to produce unique products that will further increase the profitability.

Pricing

         The prices of all the facilities provided by Bluelock are considerably low compared to the other cloud service providers. Furthermore, the costs are very flexible succeeding the invention of the novel service by Bluelock. This service makes it probable for the corporation to scale up or scale down the prices depending on the clients’ utilization of amenities (Fitzek & Katz, 2014).

Promotion

            The company primarily employs internet marketing to reach the target audience. The online approach is preferred owing to the advantages associated with internet marketing. The company employs the use of SEO to locate clients who search for cloud services via the internet. After obtaining information on the clients requesting cloud-computing services, the company sends them personal offers on the services they offer via their emails (Fitzek & Katz, 2014).

Place

The amenities offered by the company are placed on the mobile application. Clients can access the services at any time regardless of their location. The products will be customized to support either the ordinary computers or the mobile phones. This fact will enhance the use as well as its mobility.

Organizational Plan

The executive team of Bluelock has many years of appropriate industry knowledge. Ackerman has over ten years’ experience in the facility supply chain. Fedele has over ten years’ experience in retail management. This experience enables them to make accurate choices that yield brilliant results. The business launched their services after refining their economic model over a three-year period. They verified the scheme and took two years to create a distribution network, data processing facility and find the staff required for operations. The business utilizes offers and incentives to entice customers (Fitzek & Katz, 2014).

The smooth functioning of the business is the reason behind the high quality and low prices. Through attaining cloud facilities directly from producers, Bluelock can reduce the cost of its final amenities to customers (Fitzek & Katz, 2014). A mobile application has been developed to offer exquisite comfort to clients. Clients can obtain the facilities offered by Bluelock from their smart phones and other Internet-enabled gadgets. Clients can utilize the smart phones at hotspots to acquire the services easily unlike the desktops that are not portable.

Data safety and reliability is significant at Bluelock. Data safety is founded on the cautious progress, certification, and execution of data security procedures existing online and offline (Fitzek & Katz, 2014). It includes identification of plausible data safety threats, quality criteria, and regulatory criteria for both production and supply of amenities. Blue solutions go an extra mile to decrease hazards to a safe level and possibly eliminate all of them. Clients expect safety for their data that is kept in the cloud. There is an extremely high standard of data integrity at Bluelock.

7-S assessment model

Strategy

The company has a long-term strategy of charging clients based on the amount of services they utilize. Bluelock does not have any standing charges that have to be paid every month. This strategy is aimed at attracting more clients and retaining current clients (Fitzek & Katz, 2014).

Structure

Bluelock has a reputable code of ethics that determine how employees relate to each other and with customers. It offers rules on what is anticipated of the management and employees. The consequences of going against the code of ethics are outlined in the structure (Fitzek & Katz, 2014).

Systems

The systems at Bluelock are well organized. The company obtains cloud-computing infrastructure from service providers. The bulk of the amenities are provided to clients via the internet and mobile application that was developed by the company. The systems are highly efficient as they offer quick service delivery.

Skills

Bluelock has employees who have the skills to execute the company’s strategy. The skills include knowledge on SaaS. This concept allows the organization to adjust the monthly charges of the customers depending on their usage.

Staff 

The company ensures that the employees are well skilled from the recruitment process. The employees of the company are well conversant with programming and networking concepts. Moreover, the company offers employee training on numerous occasions. The training are meant to enable the employees acquire competent skills that will enable them perform their current job description more effectively (Fitzek & Katz, 2014).

Style

Bluelock has a sufficient structure. There is no bureaucracy within the organization. Information from higher levels of management is quickly passed to workers at lower levels of management. The workers give prompt feedback on the structure of the organization to the leaders.

Shared values

             Bluelock places emphasis on sufficient delivery of services to clients. The company greatly considers data integrity of the data stored in the cloud. Both the employees and customers enforce security measures. Respect for colleagues and customers are highly practiced by the organization which ultimately forms the basis of mutual respect and harmonious working.

Organizational Chart

Executive Managers 

Departmental Managers ⤸

Business Development Managers ⤸

Business technology department

Marketing team

Product development department

Finance team

Commercial team

Operation and training department

 

 

Operational Plan

Bluelock will be secondary at the value chain. The organization will be subsequent from the primary cloud providers that are at the core of the cloud computing facilities. The organization aims to sustain the quality of amenities before it offers the customers (Fitzek & Katz, 2014). This move will enable the business capture the value it will create through the facility. This concept will be achieved through the company obtaining extra revenue through the various target market customers that will increase their cloud services usage. All customers can retrieve their data from the company’s cloud so that they can use it for their instant needs. This move increases customer satisfaction.

Financial Plan

 

2015

2016

2017

Services

$1,000,000

$2,500,000

$4,000,000

Cost of services

$350,000

$700,000

$1,000,000

Net profit before tax

$650,000

$1,800,000

$3,000,000

Profit after tax

$500,000

$1,500,000

$2,500,000

Employees

10

20

50

 

Break-Even Point

 

 

 

Break-Even Units (X)

X = TFC / (P - V)

 

6,955 units

Break-Even Sales (S)

S = X * P = TFC / CMR

 $83,454.55

The business will need a total of 100 million dollars ($ 100M) in funding that will be utilized to purchase cloud-computing equipment and intensifying the existing service to other counties. The sources of funds will comprise the government and grants from NGOs. The funding will enable the business increase its amenities and the number of clients.

Strategic Leadership and Entrepreneurship Analysis

The executive employs concepts of transformational leadership. The leaders are concerned with the workers both work and non-work needs. This process motivates employees to improve their performance.

SWOT analysis market diagram

Strengths

  • increased efficiency
  • lower cost of infrastructure
  • time saving

 

 

Weaknesses

  • unwillingness to change
  • expensive equipment

 

 

Opportunities

  • network support
  • database development

 

 

Threats

  • Cyber attack