We are also studying the possibility of newsletter or electronic newsletter services, or
perhaps special on-topic reports.
4. Market Analysis Summary
Acme will be focusing on high-technology manufacturers of computer hardware and
software, services, and networking, who want to sell into markets in the United
States, Europe, and Latin America. These are mostly larger companies, and occa-
sionally medium-sized companies.
Our most important group of potential customers is executives in larger corpora-
tions. These are marketing managers, general managers, sales managers who are
sometimes charged with international focus and sometimes charged with market or
even specific channel focus. They do not want to waste their time or risk their money
looking for bargain information or questionable expertise. As they go into markets
looking at new opportunities, they are very sensitive to risking their company’s
name and reputation.
4.1. Market Segmentation
Large manufacturer corporations: Our most important market segment is the large
manufacturer of high-technology products, such as Apple, Hewlett-Packard, IBM,
Microsoft, Siemens, or Olivetti. These companies will be calling on Acme for develop-
ment functions that are better spun off than managed in-house, for market research,
and for market forums.
Medium-sized growth companies: Particularly in software, multimedia, and some
related high-growth fields, Acme will offer an attractive development alternative to
the company that is management constrained and unable to address opportunities
in new markets and new market segments.
Market Analysis
1996 1997 1998 1999 2000
Potential Growth CAGR
U.S. High Tech 10% 5,000 5,500 6,050 6,655 7,321 10.00%
European High 15% 1,000 1,150 1,323 1,521 1,749 15.00%
Latin America 35% 250 338 456 616 832 35.07%
Other 2% 10,000 10,200 10,404 10,612 10,824 2.00%
Total 6.27% 16,250 17,188 18,233 19,404 20,726 6.27%
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4.2. Target Market Segment Strategy
As indicated by the previous table and illustration, we must focus on a few thousand
well-chosen potential customers in the United States, Europe, and Latin America.
These few thousand high-tech manufacturing companies are the key customers for
4.3. Service Business Analysis
The consulting industry is pulverized and disorganized, with thousands of smaller
consulting organizations and individual consultants for every one of the few dozen
well-known companies.
Consulting participants range from major international name-brand consultants to
tens of thousands of individuals. One of Acme’s challenges will be establishing itself
as a real consulting company, positioned as a relatively risk-free corporate purchase.
4.3.1. Business Participants
At the highest level are the few well-established major names in management con-
sulting. Most of these are organized as partnerships established in major markets
around the world, linked together by interconnecting directors and sharing the
name and corporate wisdom. Some evolved from accounting companies (for
instance, Arthur Andersen and Touche Ross) and some from management consult-
ing (McKinsey and Bain). These companies charge very high rates for consulting,
and maintain relatively high overhead and fulfillment structures based on partners
selling and junior associates fulfilling.
At the intermediate level are some function-specific or market-specific consultants,
such as the market research firms (IDC and Dataquest) or channel development
firms (ChannelCorp, Channel Strategies, and ChannelMark).
Some kinds of consulting are little more than contract expertise provided by some-
body who, while temporarily out of work, offers consulting services.
4.3.2. Distribution Patterns
Consulting is sold and purchased mainly on a word-of-mouth basis, with relation-
ships and previous experience being, by far, the most important factor.
The major name-brand houses have locations in major cities and major markets,
and executive-level managers or partners develop new business through industry
associations, business associations, chambers of commerce and industry, and so
forth, and in some cases social associations such as country clubs.
The medium-level houses are generally area specific or function specific, and are not
easily able to leverage their business through distribution.
APPENDIX A Sample Business Plan

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