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Custom PCs®aims to offer its customers the flexibility of a custom built computer
while providing a friendly and personal shopping experience. Unlike its
competitors, Custom PCs® will give each customer personally tailored computer
based on their particular needs, so that customers will not have to pay forwhat
they don’t need. By carefully analyzing a customer’s needs and preferences,
Custom PCs can provides perfect fit based on the customer’s intended uses, and
the computer will be built instantly in the store.
Custom PCs also aims to assist the elderly and less informed computer shopper
to make their shopping experience as pleasant as possible.
Custom PCs® is a privately held corporation run by its owner, Jack Gray. Jack
has six years of experience in computer building and repair, with two years of
employment at Computer Renaissance, where he sold, repaired, and built
computers and accessories. He has also maintained a private computer repair
service for two years. He will be supported in daily operations by an assistant
manager/computer technician and part-time assistant manager, both with
extensive experience in computer repair, sales, and management.
With technology growing rapidly and a large generation still knowing so little
about computers, there is astrong need for personal computer shopping. With
specialized technology and graphic and speed intensivePC games and software,
the lack of power in shelf bought computers calls for a more needs based
methodof computer shopping. One that doesn’t require the consumer to spend
more money than necessary on features he or she will never use. Because
computers have so many uses, many consumers spend a lot of energy trying to
find an affordable computer that will do what they need, and no more. Custom
PCs® will compete well in our market by providing the leading edge in computer
technologies, high-quality, reliable machines built by competent, certified
technicians, by delivering the highest quality in customer support
while offering a friendly and pleasant atmosphere at competitive prices, as well
as building a strong reputation with clients through unmatched service and
customer satisfaction.Custom PCs® will focus on one major shopping center:
‘Lakeside Village,’ which is a dynamic lifestyle complex located in Lakeland’s
upscale Grassland area, and offers a total of 610,000 square feet of mixed-
use space. The outdoor mall also includes a movie theater, hotel, restaurants,
and second-floor commercial office space. Our target customers will be a wide
range of ages, seeing as how nearly
everyone uses computers. However the elderly, who generally know too little
about computers to efficiently shop for one, and teenagers/young adults thatplay
PC games that require more power than the average computer, will be our
primary focus. Our services can be suited for consumers of nearly every
income class, from the lower middle-class through the high-class consumer.
We will open for business onJune 1, 2008. We project healthy revenues by the
end of the first year, and expect to triple that by the end of 2010. Our biggest
operating expenses will be rent on our facilities and the first stocking of a wide
range of computer parts and accessories. We would eventually like to grow into a
franchise, but growth will be determined based on future cash flow and earnings.
We anticipate a net profit beginning in our second year.
Company Description
1.1 Goals
1.Sales increasing to almost double first year sales by the end of Fiscal
2009.
2.Maintain a high raw gross margin by the end of Fiscal 2008.
3.Begin franchise effort by end of Fiscal 2010.
1.2 Mission
In this day in age, computers have too many different uses for consumers to
purchase computers
intended for a general market.
Technology changes rapidly, and so do the prices. Often consumers end up paying too
much for acomputereither due to lack of knowledge or lack of options. Most computers
available off the shelf today
have more features than some would ever use, especially the elderly. With an all custom
PC store, aperson with little or no knowledge in computers can purchase a totally new and
reliable computer personally suited just for them and spend the least amount of money
possible. This method of computer shopping would offer the advantages of a shelf bought
computer, such as warranties, quality, and reliability. And with a more personal than ever
customer relationship and premium customer service,
customers know they will have a reliable support service to go to if they have a problems
or questions about their product. No more calling a technical support hotline or sending
computers back to the manufacturer.
Custom PCs® is a one-stop shop for virtually any computer shopper. The store
dedicates its efforts and resources toward ensuring top-notch customer satisfaction
while meeting the needs and budgets of every shopper, from old folks to gamers.
• Patience, Understanding, and Guidance for the Less Computer Literate Shopper
1.5 Location
Custom PCs® will focus on one major shopping center: ‘Lakeside Village,’ which is a dynamic lifestyle
complex located in Lakeland’s upscale Grassland area, and offers a total of 610,000 square feet of
mixed-use space. The outdoor mall also includes a movie theater, hotel, restaurants, and second-floor
commercial office space.
Industry Analysis
2.1 Description of Industry
The personal computer industry is a vast and rapidly growing market. With very few, if any, businesses
offering our services, there is little or no competition in the custom computer niche. However, we will
have to compete on some level with off-the-shelf retailers. Personal computer sales have been
expanding since the 1980s, and further growth in the industry is almost guaranteed.
2.2 Trends
Older baby boomers are beginning to buy computers, especially for basic functions such
as banking and
emailing. In addition, gaming is becoming very popular among the younger generation.
2.3 Strategic Opportunities
Off the shelf computers do not meet the needs for these groups. Custom PCs® will take
advantage of
these unmet needs while redefining the standards of computer retailing.
Target Market
3.1 Target Market
Our target market is any potential computer buyer. While our services may appeal most to the less
informed shopper and gaming community, our target market will remain broad, because every
consumer
can benefit from a custom computer. This includes professionals using processor and graphic
intensive software, or anyone that uses any kind of specialized application:
• Graphic designers
• Video editors
• Visual artists
• Architects
• Scientists
○ Biologists
○ Physicists
○ Chemists
Researchers
• Software Developers
• Engineers
The number of uses for computers is so vast, and because they make nearly any process more
efficient (for both businesses and consumers), that number will continue to grow. Consequently, the
need for specialized computers is significant, and will continue to grow.
With technology in computers advancing at such a high rate, the computer retail business is prospering.
Baby boomers and elders continue to enter into the age of computing. As hardware capabilities develop,
so does software and games. Businesses and corporations are finding more and more uses for
computers every day.
3.4 Sensitivities
Each of the following are sensitive factors pertaining to the industry, which could
potentially affect the
buying behavior of consumers:
• Technological advances
• Increased capabilities and functionality
• New ideas
Competition
2.Best Buy:
○ Strengths: Convenience. Competitive prices. Name recognition. National marketing.
Financial resources.
○ Weaknesses: Sales staff lacks knowledge and experience. Impersonal. Understaffed.
Poor
customer service.
3.Internet
Retailers:
○ Strengths: Competitive prices. Convenience.
○ Weaknesses: Lack of personal service. Product intangibility. Little or no technical
support.
Inconvenient to return or repair. Cost and inconvenience of shipping.
Operations
We will have a wide assortment of computer parts and accessories in inventory in order to build a
specialized computer of any number of configurations. Keeping a large inventory will allow larger
availability of parts and accessories for shoppers, and will allow the needs of the customer to be met
by ensuring the availability of the necessary parts to build a specialized computer in a timely manner.
The aim for Custom PCs® is to discover a customer’s needs, and then determine the right computer
for the customer. The computer specifications and detailed price summary is then put on paper and
explained for the customer, who will then be able to adjust specifications and details of the purchase
according to their budget. Once the customer decides on the right configuration, a technician will build
the computer instantly, in the store. Building the computer, installing software, and testing should take
around an hour, so the customer may choose to enjoy Lakeside Village’s many shops, restaurants,
café’s, or ice-creameries while they wait. Accessories will also be sold in the store including monitors
to make Custom PCs® a source for a broad range of computer shoppers.
Our staff will consist of the Owner/Manager, an Assistant Manager/Technician, and a part-
time Assistant
Manager.
Technology will not have a significant impact on the operations of our business, however
it will have a
considerable impact on growth prospects.
7.2 Recruiting
• Skill
An interview will be conducted to determine the applicant’s ability to work well with
others, judge his or
her attitude, competence, and friendliness, as well as how well he or she is with
customers.
7.3 Compensation & Incentives Plans
Bonuses will be offered based on employee performance and overall production goals. Managers will
be salaried. Other employees will be paid on an hourly basis. To recruit and retain superior staff,
compensation will need to be very competitive.
As of now, our current financial status precludes us from offering any employee incentives, however as
the business grows and more employees are hired, we intend on providing basic benefits such as
retirementplans and group health insurance.
Long-term Development
8.3 Strategy
• Instill into the company the importance of high quality customer relationships
• Profit as a business
• Make plans to expand