Business Proposal

1500 Words6 Pages
Business Proposal Randy Sickmier ECO/561 September 28, 2011 Dave Sella-Villa Business Proposal This business proposal targets a new market for personal computers; senior citizens. No computer company offers a product designed exclusively for the baby boomer (“Boomer”) generation. There are “senior friendly” computers available from most of the major manufacturers, but none make a full commitment to “senior only” features. The market for computers designed to meet the unique needs of senior citizens, the oldest boomers, is a wide open field with little competition. There are 75 million Boomers in the U.S, about 29% of the population, with the first of this generation turning 64 this year (Baby Boomer Headquarters, 2011). This…show more content…
The company can then make opportunity cost decisions on whether to adjust quantities to achieve maximum profit at MR=MC. Growth in output may also be met by efficiencies and an increase in the company’s production possibilities curve. Production of these computers can be adjusted in the short-run, however, the company’s vision is to ship the same day as the order is received. There are no options with this computer and no delays for customization. Production costs are low which will limit total costs. The production strategy is to create an efficient system using proven but lower cost components. Expensive, ultra-modern technology is not required to meet consumer demand in this segment. Software packages will be smaller and less expensive. The end product will consist of a computer that performs many functions extremely well, but has limited capabilities in some business and academic applications. As examples, some assumptions made during design are that retirees do not want to create a Powerpoint briefing, nor do they need 120 different fonts for word processing. Eliminating these bulky programs save costs and increase the speed and reliability of the computer. The company does not intend to take a loss for the purpose of establishing the brand with seniors. The success of this marketing approach will be evident after the first year of production. If the computer is successful
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