Anduro Company was formed with the primary aim of capitalizing on the opportunities opened up by the Internet. Internet had virtually connected the world, and with ever increasing number of users it has created platform for business and social interactions. This has also led to the creation of thousands of jobs by giant companies such as Google, Yahoo and Bing. It has also led to appearance of other small companies that deal with networks and technology. Some of these organisations have adapted 2.0 business strategy models which are associated with Internet and its dynamics.
The business model adapted is 2.0. The dot.com period did prelude this business model. However, these two work on a different principle, the 2.0 model deals mainly with improvement of web in terms of its accessibility. The main aim is to generally develop the web in order to make it easier to access. When this feature is improved, it helps to boost the web businesses tremendously. One of the advantages of the 2.0 model is the fact that they need less funding for start-up compared to others. Secondly, they have large broadband in terms of connection, hence better searching capabilities. This has helped people with little capital to easily venture into this business with and turn it into multimillion dollar business empires.
There are two types of the 2.0 that an investor can choose from. They can either select the network or technology model. The two types can also be incorporated together since they depend on each other at least partially. The former deals with the interactions with the user base, while the latter focuses on the innovations and also persuasive approaches to win a market share. This type of business is evaluated by the number of consumers that the companies have. Each time the value can fluctuate tremendously and efficiency is very paramount. This is due to the fact that the consumers can easily switch on to another firm.
On the other hand, technology model presents the great opportunity to invest on the part of the user. Regrettably, in most cases they are only available in pro upgrades and premiums. Some of the advantages of the technology model are the ability to be incorporated in other business entities making it easier for the owners of this business to forge partnerships which can increase their revenue significantly. This ability to woo investors makes it easier to raise funds for expansion.
The Anduro business strategy was to create customer base slowly. This is due to the capital constraint they had at the beginning. They are therefore focused on individual and small business in the area. Since they are a small company, it was easier to interact with their clients at personal level. This enabled them to have a full grasp of their consumers’ needs which was one of the factors that contributed to their unprecedented growth.
Their research about potential market was dynamic. They thoroughly analysed what was readily available in the market and capitalised on the gaps that were left out by other companies. Moreover, Anduro noticed that most companies had invested profoundly in the web design and complex database formulation. They had not invested in making sure that the clients access what they want easily, as a result they were forced by the circumstances to manoeuvre on their own, which is a tedious and complicated task. This enabled the management to have an edge in terms of client base because of the lack of competition.
Some of Anduro’s greatest strengths include the location of the business which was an advantage to the company in terms of the market base. They decided to set up in the city of Calgary. This city had venomous consumer’s potential due to its demographics. It contained a large number of highly educated people, which meant they were more likely to venture in the Internet marketing because they could easily grasp technology. Additionally, Internet connectivity was well developed in the area making it accessible to thousands of people.
They easily analysed the most important things in the industries in order to formulate strategies that will work for this particular business. Some of the outstanding issues that came out include the fact that there was a growing number of people who were now using Internet in the world. Internet connection had also spread evenly making it easily accessible. A good number of potential clients had ventured into the online business to search for different goods and services offered by the company. Some giant search engines like Google had introduced keyword marketing, which in essence means that companies had to venture into this form of advertisement in order to expand their market base.
Their ability to go further in analysing the effectiveness of search engine optimization created another form of revenue channel. Most of their clients would check their websites to determine their performance. This helped them to boost personal relationship between the company and their clients making a solid base in terms of customers. Anduri also had harmonised their charges, which acted as an advantage because of their clients dynamics. Most of their clients were large businesses which require planning their budgets in advance. The Anduro strategy of giving them fixed rates enabled to plan in advance.
In order to curve more market share Anduro personnel attended various presentations and workshops. This gives them opportunity to market their products more effectively. They also relied on call centres in order to establish contacts with potential customers. Additionally, for the sake of getting more clients, they also came in understanding with other local technology companies who would direct their customers to Anduro for the services they did not offer.
Some of their shortcomings include the fact that they did not have enough capital for expansion. This hindered their growth potential because their expansion had to be slow due to economic constraint. The large companies took too many months to pay for the services and this was straining for Anduro due to the fact that they had employees to pay and other expenses. The business had a cycle and they were adversely affected during the down turn period. They also relied heavily on the third part suppliers which meant that they could not control the pricing due to their lower purchasing power.
Another challenge includes difficulties in recruiting the right people for the job, especially in the marketing department. This had adverse effect on their marketing capabilities which had implications on profits. The fact that Anduro’s ideas could be easily adapted by other companies with resources to investment also added another risky aspect. Anduro continuity could not be guaranteed.
There was a business opportunity present, which was facilitated by the change in dynamics. At around two decades ago, it was difficult to locate the websites because information was not filtered. This triggered the stakeholder to ponder about how to deal with the problem, which consequently led introduction of search engine optimization concept. This is simply a manipulation of websites in a way to make them easier for the users to locate.
The argument behind this principle is derived by human nature approach in dealing with some things. The developers noticed people have a general tendency to concentrate on what appear in the first page when they open the web. This meant that those websites that were in the third page received little attention, and therefore their intended purposes are not achieved. Anduro, thus, concentrated on helping their clients in making sure that the websites of their companies appeared on the first page. This helped them to win a large proportion of market including the high profile companies, such as Sync rude Canada, Enmax Corporation and Novetel Inc.
The search optimization concept, therefore, entails a myriad of logistics that includes editing of the websites content, changing of coding system and intentionally deviating from hindrances associated with indexing. Such engines like Google, Yahoo and Bing realised that their marketability depends on their success and is determined in terms of directing their clients to their intended website. In fact, Google was invented by these notions. From then, tremendous steps have been made to improve the search optimization. Therefore, also invested heavily on the security systems of the search engines, this has helped to prevent malicious damage by unscrupulous people who attacked these websites and affected their ability of giving accurate information.
Promotion of goods and services on the Internet is known as Internet marketing. In the early years of twenty first century there was an increase in popularity of Internet marketing largely by the convergence of web 2.0 model of business. Several firms came into the market with the main purpose of promoting, selling and buying of advertisement space on the web. This entailed selling of a platform, where advertisers could use to market the products to their clients which were mainly the businesses.
For the last decade, the world has undergone massive improvement in technology accessibility which includes Internet accessibility. This has triggered mass exodus of consumers in term of their shopping characteristics. Initially they relied heavily on newspapers, televisions and radio to get information about the goods and services they needed. Currently people turn in to Internet to shop or window shop. This has led many firms to incorporate Internet advertisement in their strategy in order to widen their market base. The rapid rise in Internet advertisement has been facilitated by shortcoming of other mediums of advertisements. Newspapers, radio stations, magazines and television have tendencies to be brief in terms of information. This can be attributed to limited airtime or space they can provide for these marketing purposes.
They also do not capture much in terms of selling the company principles or offer an interactive platform where clients of the firm can easily communicate with their customers. On the other hand, Internet provides information about the company, which includes location, varieties of goods and services, their community service and contacts. They also send update to their clients about their plans and offers or even job opportunities, which presents their clients with an ability to develop a personal relationship with company.
Other advantages are promoted by the emergence of social media such as Facebook and Twitter. These social sites enable online advertisement agencies to target specific group of people. The fact that they give information such as geographical location, their age and their tastes of different services and products helps the companies to concentrate on their potential clients more effectively. The fact that Internet is timeless and has no geographical limitations like newspapers or television makes it appeal to more market base at cheaper rates. All the above factors coupled with innovation in technology which has led to production of Internet-enabled gadgets such as mobile phones means that penetration even in developing countries is incredible.
The online advertisement comes in different forms, which include the following: emailing a certain group of people about particular products, contents making where the advertisement agency may create blogs about some products, inbound marketing which means spreading of information from one person to another, using of videos to demonstrate to potential customers the usage of different products or services. In the social media, marketing companies have a platform where they can analyse the preference and the tastes of potential clients. This helps them to concentrate on a particular area in terms of marketing. One of the shortcoming of this strategy is the fact that is hard to know exactly if those people who claim to ‘like’ a particular product do actually buy it.
The marketing over the Internet is therefore closely connected to the search engine optimisation. The Internet users will key in words about what there are looking for. The dynamics of the Internet means that there might be hundreds of suppliers of the same product. The potential consumers in the most cases will concentrate on the businesses that appear on the first page. In order to win these customers, the Internet marketers are obligated to make sure their firms appear on the first page. This is where the relationship between search optimisation and Internet marketing come into play.
In my personal opinion, I think their expansion strategy is commendable and should be adopted. This will enable businesses to deal with challenges. Although the business proposal is risky and it is not tested, it should be tried. However, since it is a new project altogether, it should not be taken at the expense of their current business which is already successful. Anduro should, therefore, put their proposal on the table for potential investors to give them the necessary investment they need for deelopment.
This expansion could help them consolidate their market share because by creating their own software they could prevent entry of new firms to the market, and therefore secure their position. This could also reduce their reliance on the third party at the same time giving them a cash flow throughout the year, therefore reducing the constraints associated with delayed receivables.
Other advantages that will be realised by this proposal include ability to hire competent staff. To some extent a large company is able to attract highly skilled labour because they always have the potential to pay them. With highly skilled labour it will improve their performance significantly and this will be converted into profits in the long run. They could also be able to invest considerable amount in research, which presents the opportunity to improve the quality of their products over time. This will not only consolidate their market base, but will lead to the increased sales and creation of a successful brand, which will not have difficulties in venturing into new markets. The ever changing technology also meant that new opportunities will always come up. There will always be a demand for new software.
In summary, history has taught us that starting a new business adventure is always risky. However, some of the most successful businesses are those that dare to venture on to new territories. In situation with Anduro the case is not different and if they have ambitious dreams, they have to risk. That does not mean they do not have e to be careful in their steps and since they have a successful business, it is important not to throw it out of the window. The possibilities of trying new things with a backup plan are always important for the sake of maintaining relevance in this turbulent business world.