The Entrepreneur’s Marketing Source Inc (EMS) was started by Brent Banda to offer marketing consultations to small business in Saskatoon. He based his philosophy on a simple principle of penetrating the neglected market comprising of small businesses. The company is based in Canada.
Entrepreneur’s Marketing Source Inc (EMS) is currently faced with the dilemma of either concentrating in the consultancy services for small businesses or venturing into the pre-planned establishment of a prototype workbook targeting small businesses that lack systematic marketing skills.
The Imagine Company has offered the Entrepreneur’s Marketing Source Company an opportunity to maximise its gains from consultancy by introducing Brent to more clients needing marketing consultancy services. At the same time, Brent’s business plan for the Entrepreneur’s Marketing Source Company had been to concentrate on the prototype marketing workbook which he projects to earn more income within three years than the consultancy services.
Brent cannot offer the two services at the same time. Thus, this reflective treatise attempts to explicitly review Brent’s dilemma between continuing with the marketing consultancy services and concentrating on the marketing workbook production.
SWOT Analysis of the Entrepreneur’s Marketing Source Company
A SWOT/TOWS analysis is carried out to highlight the key strengths, weaknesses, threats and opportunities of a company (Hisrich 2011). This will also reveal any bottlenecks that are likely to affect the smooth flow of the projections of the Entrepreneur’s Marketing Source Company.
- The company has already established in the Saskatoon market so it is already into the trade and have previous experience and it offers almost half the market price for its services.
- The company has good terms with the small businesses and can deliver high quality marketing services at a reasonable price.
- The company has concentrated in the small businesses market segment in offering marketing services that have been ignored by the big marketing players.
- The company has not operated in the United States hence may not have exact projections on the sales of workbook as indicated in the plan.
- The company depends on only person as the workforce hence may not maximise its gains in the market.
- The company has the disadvantage of unreliability in service delivery since Brent has to do all the work. Apparently, he cannot keep up with the demand despite working for more than 60 hours per week.
- Too many competitors are in the market of Saskatoon, especially the big players with more credibility in offering marketing services.
- The success of the company will depend on the reception of the workbook in the markets of Canada and the United States. If the projections don’t add up, then the company may take longer to breakeven or may end up collapsing.
- Unlike other competitors, the company has the option of consultancy and handbook only. Thus, it cannot franchise to protect its future growth parameters.
- The company has an opportunity for unlimited expansion in the market with more than 100,000 small business lacking marketing skills.
- The company has the opportunity of attracting more clients through referrals since its local network is well established.
- The company has the opportunity of diversifying marketing services beyond consultancy and the marketing handbook.
Entrepreneur’s Marketing Source Company’s Current Situation
Entrepreneur’s Marketing Source Company is projecting to breakeven in the consultancy services by the end of the first year. Besides, the Imagine Company has offered an ideal expansion opportunity since Brent will use the connections at Imagine Company to reach more clients.
However, Brent cannot project the growth of the consultancy services. At the same time, the projected operating income from the workbook sale is likely to attract an operating income of $3,900 in the first year of introduction. This figure is expected to grow to $192, 314 in the third year. Brent has to deal with the dilemma of choosing to continue with the consultancy services or to venture into production of the workbook.
Alternatives Evaluation for Entrepreneur’s Marketing Source Company
Other than the direct sales of the book, the company may use franchisees. This method entails granting certain rights and powers to a corporation to sell the book hence giving Brent the opportunity to continue with consultancy services as part time (Hisrich 2011).
Some of the risks associated with this approach are difficulty in managing the franchise. In addition, there can also be mistrust over proprietary knowledge among other risks (Hisrich 2011). Brent may also decide either to abandon the consultancy services or the workbook which would translate into reduced growth of the company business.
The best alternative would be franchising the sales of the workbook while concentrating in the expansion of the consultancy services. This alternative is better than abandoning either of the services offered by Brent since it gives the company an opportunity to grow the consultancy and workbook services without having to neglect one side of the business for the other.
Hisrich, R. (2011). Entrepreneurship. New York: McGraw-Hill Education.