Existing Good or Service Business Proposal

Existing dear(p) or serve up Business Proposal T. J. s potty Business Plan Tresa Milton ECO 561 skirt 25, 2013 Dr. Guthlac Kirk Anyalezu T. Js Corporation Business Plan T. J. s Corporation Business Plan In today society the development of engine room, which be gunpoints that individual normally pulmonary tuberculosis beingness transferred into a different era. These be the items which, individuals use every day forward-lookingspapers, magazines, and now books has been auxiliary to the technology world in the form of Kindle, Nook, eBook, or on CDs. T. J. s Corporation allow for produce a technology which, ordain include a book, which the corporation can use and scan it into an eBook on with an finished synthetic voice for individuals to listen. However, T. J. s Corporation allow show how the receipts will shake up up, determine the profit- maximize amount, and marginal tax to maximize profit. in addition T. J. s Corporation will analyze mix of set and non-pr icing. T. J. s Corporation will be looking for a location to field on the proposal and buzz off the supplementary employees to garter with transportation of books to the digital format. T. J. s is currently working(a)(a) forth of a miniature building and with the new proposal needs something bigger. Working in a small building puts the employees in the situation where he or she is working with little run to work. With the new location it will allow T. J. s Corporation to work on the new design and mother the consumers product out faster. Assumptions and Market Structure Although other corporation rescue books out in eBook, the books are merely only accessible in the switch provided by that company. T. J. s Corporation merchandise consumers will have the filling of reading the book quite or read along with the digital sound track.Since, T. J. s owns a patent on their technology their company is turned monopoly, because T. J. s is permitted the only pipeline that is sell ing this type of merchandise (McConnell, Brue, Flynn, 2013). Also thither is an assumption that any employee which will be working in a calendar month is about $300 based on gross revenue. T. J. s Corporation has to generate another digitizer for their workers to have so more books can be downloaded quicker. Growth of Revenues TJs Corporation requires an amend marketing strategy for their digitized books this approach will allow sales to emergence. If T.J. s alters the costs of their books their revenue will also sum up. T. J. s Corporation is using a small website and on the sight the prices are as follow $10 for books with failed copyright ( oldish books), and $15 for books containing an copyright (new books). T. J. s Corporation sold 1,000 old books and 2,000 new books in the first six months. T. J. s did some research, demonstrate the new books could be brought for $5 charge and CD are $20 (R. L. Copple, 2013). With this instruction the company can rise their new books p rice to $18 to add a $3 profit and lower their senior books to $7.The change in price could actually help boost the sales of the books because the older books are at a lower price which could profit revenues and the increase in price on the newer books will increase the profit. In addition, if block were to market his books to high check and college students in that location could be an increase of revenue. lay to rest would need to add text books to the books being digitized but if students have the option of listening to some atomic number 53 read the books the information might be easier for them to understand.The pricing on the books would have to be increased because of the actual price of the textbook and a higher copyright fee. The addition of the books would help to increase revenue and bring more traffic to his site for the other books. Profit maximizing Will eat up would need to look at his fixed be (those be that do not change the output) and the variable costs ( costs that do change based on the level of output). Burys variable costs are the five dollars for the copyrighted books that will help to expand his catalog and the costs associated with his website.This can be in the form of number of transactions or purchases and the fees associated from them. In addition, Bury will need to hire an assistant and the $40,000 that he pays will include taxes and benefits, the purchase of $14,000 in computer equipment to advance his technology, and $6,000 in advertising. This would be $60,000 a year or about $7,000 a month of fixed costs. Marginal costs and marginal revenue If there is an increase in output there will almodal values be a raise in profit as long as marginal revenue is greater than marginal cost.thither will always be a need for books to be digitized so there will always be ane more unit of good to be produced and sold. There will always be new books being written and this means that there will be a constant need for books to be digiti zed. There will be many choices for customers especially when new books are released. price and non pricing There are many types of pricing that Bury could use and needs to take a look at all to fill what would fit his business. Bury could tour single or multi unit pricing, quantity discounts, and any specials or discounts that he feels he could offer during holidays.Bury could offer promotional discounts as a way to increase revenue and bring in more customers. If Bury was to look at when book fairs or sales occur he could set up a table with information and computers for customers to purchase or look at his database. With non pricing the strategy is to grass the price less of a factor with customer purchase and make product difference a greater factor (McConnell, Brue, & Flynn, 2009). Marketing research, new product development, and advertisement could be considered non pricing competition because Bury is assay to find ways to increase his sales. Barriers to entrySince, Burys business is considered a monopoly and is the only one with the technology therefore there should be no restrictions. A barrier occurs when there are other companies that exist in the marketplace and have established patents that will make it difficult for the product being copied (McConnell, Brue, Flynn, 2009). Since, Bury does have a patent that means that he will out skill his competitors and with his new technology he will dominate his industry. With these barriers there could be a problem at the beginning but at one era the company is establish Bury wont have any problems. ingathering DifferentiationWill Burys product is very different from what is out in the market because it is a digital and voice synthesized is more convenient than eBooks or books and CDs. With his product he offers customers a more convenient way to listen and read books in one place. In addition, for those avid readers the conception of eBooks will allow for seven-fold books to be housed in one loca tion. Minimized costs Mr. Bury will need to find ways to minimize his costs so he can increase his revenues. At the present time Mr. Bury will not be able to hire a full time assistant but once he has an established revenue then he can hire a full time assistant.Another way to save money would be to have his children or wife help with digitizing the book. In addition, if Bury was willing to train and work with high school and college students he can have multiple people to work let out time and can have the books digitized faster. This means that he can increase his catalog of books fast and he will be able to offer more books for his customers. Conclusion At present, Mr. Bury has many options available to him that he can implement to have a successful business. The main item that he has to consider is the price, cost, and the manufacture level for creating the digital books. Mr.Bury has done a great job of identifying the costs associated with copyrighted material and the price th at he would want to sell his books. One item that he would want to consider is the fact that he could change the price of the old and new books to increase his revenue and he can look to see if could lower the price that he pays for the royalty of the book. Currently the market is small and with Mr. Bury being a monopoly with his patented technology, he can really expand his market. The one item the Mr. Bury has to watch is the economy and has to remember that he has to vex on top of the competition. References Copple, R. 2012). How do ebooks cost. Retrieved from http//graspingforthewind. com McConnell, C. R. , Brue, L. S. , Flynn, S. M. (2009). Economics Principles, Problems, and Policies (18th ed. ). New York, NY McGraw-Hill Company. New Good or service business proposalThis assignment focuses on introduction of a new product in the existent line of business and explains the method for development of goods for generating more revenue. The concepts of elasticity of demands, marke t structures in addition to profit maxi maximizing techniques are also discussed which are steadying for the good and also to counter the barriers