The industry segment chosen for this work is the software industry. Software industry is a service sector aimed at providing service to all other industries. Some of the major attributes that affect the business in software industry are: this is a support industry to other industries and if they are in a recession then the software industry is also affected. Secondly, the software industry grows swiftly so much so what is today the cutting edge is no more used one year down the line. Thirdly, this is dependent on the employees in the company that would decide on the way the results are produced. Creativity of the people, agility of the industry segment that the products of the company addresses and the speed at which the company could acclimatize itself to the new technologies coming in every day.It is also important to note that any company in the software business face is the customer satisfaction. Unlike other products, where the product is clearly one that the people can see, test and accept, in case of software, even after the initial acceptance of the software, it might be found to be under performing in those areas that are critical to the buyer. Similarly, while products fail under use due to external reasons, viz., mishandling, surges in electricity, etc., in case of software, it is always viewed as the one that comes with the failures or most of the problems are manufactured with the product. This leads to customer dissatisfaction even after one to two years of use.
The software industry has been growing phenomenally in the last decade and has a number of competitors whom the upcoming company should take care of. The competition comes from all sizes of companies, from small to mega corporations. Therefore, it is essential that the company entering the market works out a niche for itself before jumping on to the growing bandwagon. The market and the economy connected with the software industry have been booming in the last two decades, driven mostly by the revolution called internet. Software is totally market driven and, in contrast to most of the other industries, in case of software industry the company spends comparatively little on research vis--vis the development. There are lots of new ideas that come in every day in the software industry. None of the companies like Microsoft, Borland, Sun or Novell, invented what they successfully made. They adopted the new technological idea in a way that people would accept and sold successfully. It is not who does it first or who does it differently; it is a question of who does it right that makes a software company successful.
b. The Company
The company that is formed will address specific software needs of verticals that are identified as strengths of the company. Such identified and short listed verticals will be clearly understood and the employees / consultants in the company will have adequate understanding and strengths in the vertical so chosen. This would help the company to identify software products for these verticals, addressing requirements that might not be easy for competitors to emulate. This niche will also ensure that the value the company gets for its products will be substantially higher than what they might get if they should do a run of the mill product. Hence, this would ensure both addressing a niche segment with little or no major competition and would also ensure that the compensation for their product will be better than what the company might get otherwise.
The concentration of the company in the product development exercise will be to do it right rather than do something new alone. It has to be new and it has to be right. Right in the sense, it will be the way the customer or the user might expect or want it to be. This would necessitate a close interaction with the customer and possibly work in tandem with the customers in those specific verticals and produce a product that is in line with their needs.
c. SWOT Analysis