Supple Software Company, an S Corporation, was founded by Ralph and Mabel Smith. The company was started in 1993, and has never received outside investment. Supple offers three different software products and commands a significant market share. Ralph and Mabel are interested to grow the company’s sales until 2000.

Supple’s objectives are ambitious yet achievable. In 1999, sales increased by 20% and the company plans to double its output in 2000. They expect net profit and gross margin growths to be proportional. Their goal is for one employee to be paid $250,000 per year in revenue. PC Data estimates that Product X, their flagship product will keep them at 30% market share. This will be achieved by adhering the three key ingredients to success, market strength, customer satisfaction, as well as the right management team.

The Market

Supple will be participating in a $3.8billion market with a 20% growth rate over three years. Supple is targeting four customer segments, including small offices, professionals, academics and home offices. These markets are experiencing growth of 2%, 5% and 8% respectively. These markets have 22,000, 15,000, 10,000, and 12,000 potential customers respectively. These are the USA markets. The market’s major trend is towards international sales. International sales have seen a dramatic increase, primarily due to the Internet boom. The US market has experienced a 22% increase over the last three year, but it is predicted that the international market will see a 40% growth.

Products

Supple Software currently offers three products. Product X ranks second in Windows task X software rankings and is the quality leader. It is easy to use and has a step-by-step interface. This interface includes guidance, help and glossaries. Product Y for Windows is a standalone task management application. It is the best product for creating task Y. And it’s also the only product that allows you to manage the [omitted] function day-to-day. Their last product is Product Z, a creative business process application.

Strategy

Supple will employ four clear strategies to help them achieve their growth goals. They will develop customized versions for their standard products that offer more value for certain customers. They will establish a solid marketing infrastructure. This will enable them to launch their products onto the market. Supple will continue to focus on small and medium-sized companies, a segment that has been mostly ignored by the rest of the market. Supple will also focus on technology that is more suitable for the masses than leading technology for professionals.

The Management Team

Mabel and Ralph have a wealth of experience as managers, capable of executing ambitious strategies. Arrog International’s Ralph has 10 years experience in marketing and sales. Supple was started by Ralph as a distributor of software in 1993. Mabel will be required to help grow the company. Her experience as a consultant can be used.

Supple Software has been a growing company since 1993. From humble beginnings, the company has grown to $1million and increased revenues forecasts for 2000. It is remarkable that this was possible with only investments from the owners. There was no outside capital.

1.1 Objectives

1. To increase sales in 1999, and to double sales in 2000.
2. To increase gross margins and net profit margins in a similar manner.
3. Limit the number of employees to one full-time employee for every $250K in revenue.
4. Maintain at least 30% market share for Product X, according to PC Data.

1.2 Keys to Success

1. Marketing power. It is important to ensure that your products are on the shelves in attractive packaging. This will allow you to retain a 30% market share as measured by PC Data.
2. High quality products and customer satisfaction. Every product we sell comes with a guarantee.
3. To survive, we must ensure long-term customer satisfaction.
4. The right management team, with strong foundations in marketing, management, finance, and product development. Enough working capital to survive in the working-capital-intensive retail channel.

1.3 Mission

Supple Software creates, publishes and markets business tools as well as business knowledge in a single software product that includes documentation and software. It makes business skills accessible to millions who may not otherwise be able to access them. It is profitable and generates money. It offers a fulfilling work environment, fair compensation to its employees and a fair return to its owner, as well as a fair royalty to its authors.