Friday, February 5, 2010

Dinamite PCs

Name of the company: Dinamite PCs
Products of the company: Cheep computers that don’t last more than a year
Horizontal Nature of the company: Our markets are all around in the world. Places that are targeted are not where the richest people are. We mainly target the middle and low class who don’t like to spend a large amount of money for electronics because their chances of breaking are high. The issue is that there are no refunds, returns, or exchanges except if the product is defective.
Our first store will be in Morocco because the majority of the people are either from the middle class or from the low class. I know from personal experience that people in Morocco from the low and middle class want personal computers for the lowest price even if they are not the best quality. This will work especially in Morocco because there is a black market where people can fix their computers. We will plant other stores in France, Germany, Russia, China, and Brazil.
Another version of our computers only last one month but is of high quality. There computers will target rich people that want to use a portable computer for a month during their vacation or when they go to places like Las-Vegas to play in the casinos for a week. This computer will have everything a high quality apple computer has. The software will be the same as the one you would find in a stock apple computer, but this one will have installed antivirus.
Another type of people this product will target are spies and astronauts. These people want their data to be erased after a while. What this computer does is break after a month or when a code is correctly typed into a special area. When they break, the computer’s memory if completely erased without, leaving any trace of anyone ever being on it.
Vertical Nature of the Company: These computers will be completely built by machine so each factory will have its own sets of stores within the country, and it will produce depending on the demand. Each factory will have an estimated 5 stores in small poor countries, 20 to 50 stores within middle class counties, and estimated 70-130 stores within really wealthy or populated countries like china, The United States of America, and Canada. The factory will produce a lot of computer so no more than 5 factories will ever be needed, maybe one in each poor country we decide to target. The computers will be transported from the factory to the stores by our trucks, so this will not drain our wealth very much.
Energy: Energy usually means money. The employees of the stores will be paid by the stores from the profit the store makes, and the employees of the factory including the driver of the truck will be paid by the factory by what it gains. The factory will play the role of the manufacturer, in other words it will not give the computers to the stores for free. It will get paid by the stores as if they were an individual company.
Raw Materials: The materials used to create this computer are the same that are used to create every other computer. There will be metals and plastics. The factory part of the company will pay for this.
Labour: There are basic workers that are permanent at each location, and there are others that can come and go. The permanent employees at the factory, there should be a manager, chef of machinery. Other people such the people that sort the materials, count what there is, clean, use smaller machines, drive the trucks are not mandatorily needing to always be the same. At the store, the permanent employee is the manager. The others are just workers. Each location will pay for its own employees. The higher someone gets in rank and the more important he/she becomes, the higher their payment is the rule.
Government and Regulations: I think that governments will welcome this sort of business because it also get profits from taxes, makes their people work at our locations, and makes other people want to work to get a personal computer. I don’t believe there will be a problem there. Of course we will follow the rules of the country and not do any illegal activities, but if the rules are going to be a problem for our money because of for example too high taxes, then we will simply leave the country because we are there for business and to gain money and not to sell computers.
Profits: As I explained earlier each location will be responsible for its money and buying and selling its products. Let’s take a store for instance. It buys its computers from the factory, which is also ours, at $50, and spends $20 to sell it by paying employees, cleaning, and paying electricity, etc…, and sells them at $140. This is a $70 profit which is 100%.
When I give all the money that I burrowed in the first place, I’m going to spend a portion of the in helping other people. I will transfer thousands of dollars to hospitals in order to offer better medical care. This is important because it could save lives. Afterwards, I’m going to build wells in Africa in order for the people to have clean water. If I build these wells, I’m going to decrease the amount of sicknesses that dirty water provides. I’m also going to help some poor people that live in places where the economic activity is low. In these places, I will build small industries and try to reconstruct lands that can be farmed. There are many different ways of helping people, but not all of them could be used. This is important because you can be more and more respected by other people while you do all these important actions. This is why one of the primary priorities is to help others.

2 comments:

  1. I think your product could sell exponentially although the idea of "breaking down" after a year isn't the best concept because of the obvious risk of losing all your files.

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  2. I like the idea of integrating your business to the advantage of the middle and lower classes, however the mentioning of the black market can make you lose the opportunity of the funds because of the illegality of your business actions. Even the concept of "breaking down" is not a very good idea because of the vast amounts of files and the poor people cant keep buying a new computer every year, your plan will actually backfire and your products wont be considered an "economizing" product after all.

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