Gov.com strategic model for success
The competitive forces model was developed by Michael Porter's in analyzing industries and their competitors and how they perform business in a competitive market scenario. Every organization operating in a competitive market is defined by porter's competitive forces model as in an environment full of threats and opportunities from external influences. Therefore, these forces are the responsible factors behind shaping firm's corporate operations in an industrial set up. The forces are the responsible behind the determination of industrial attractiveness with regard to market activity level (competition) and consequently the firm's profitability. The competitive forces in porter's model are the threat of new entrants in the market, threat of substitute goods and services, competitive rivalry within the industry, bargaining power of suppliers and bargaining power of customers. The Gov.com's strategy for success based on the forces of porter's competitive model is analyzed as below.
The Gov.com recognized the threat posed by other firms in the industry like the Old West and large firms like KPMG, MunicipalNet Inc and EDS. Therefore, it strived to maintain a market frontier in the market of both business and technology. To minimize the competitive behavior within the industry by other firms, it has developed advanced technology that allow it's operations to be carried out online like the access of citizens to pay their fines online is a major step towards strategically placing and maintaining its competitive position in the industry. In addition, much of its operations are carried out online; (for instance the office supply stores and bidding for contracts locally), minimizing delays and enhancing efficiency and effectiveness thereby overcoming challenges in the highly competitive industry. The diversification strategy adopted and implemented in the Gov.com has allowed it to coup up with the threat of increasing customers with time.
It has been in a position to enhance collection of taxes and other services from a wide variety of customers through harmonized online activity. Other suppliers in the market are also thrilling with unprecedented force in the industry like the MunicipalNet Inc. Therefore, Gov.com has devised to make supplies of its services to as many units as possible through provision of advanced options as well as extra services to corporate bodies and other suppliers. The absence of close substitute in provision of such service or rather their inefficiency like the use of red tape and bureaucratic procedures, provides Gov.com project to success. Well developed market plans helped Gov.com to be a market leader even when economic situation wasn't favorable for instance during a recession, people relied on government finances and money as a safe way to transact their incomes. This not only placed it in a better competitive position from within the industry, but also gave it an upper hand from entrants in the market.
SWOT Analysis of Gov.com
This represents the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis which aims at examining the company's internal and external factors as well as its positive and negative influence. The strengths and weaknesses of an organization form the internal components of the organization. The external potential opportunities and threats facing an organization are examined and dealt with in the external component of the SWOT analysis. The benefits of SWOT analysis allows companies or organizations management and leadership team to devise means and ways of increasing businesses activity levels and drawing strategies aimed at maximizing profits and revenues.
The strengths of an organization are the essential factors inherent in the internal operations geared towards the success of the company. It is due to strengths that organizations hold on to the market despite strong and stiff competition. The Gov.com enjoys hefty cash and capital base from the government's exchequer which allows it to carry out massive investments in the services delivery and provision to diversified supplies. The introduction of e-government was a major boost to the Gov.com program as well as a wide network base in the government operations. The public confidence to the government money during tough business cycles offers Gov.com a major boost in the market.
These are the adverse and detrimental factors coupled with forces experienced by organizations in the market operations. They are the internal negative forces facing the organization. The major weakness for the Gov.com program is the political motive behind the implementation of e-government exercised by the Governors and municipal council mayors, councilors and other government officials who are involved in the program implementation. In addition, lack of commitments by the implementing officials concerned with the program poses a great set back to the established efforts of making the Gov.com a market leader in the business and technology world. The weak organizational and institutional culture in the municipalities offers a disadvantage in the program implementation which consequently results to business and client loss. Although strengths of an organization should be given a top priority, weaknesses should equally receive proper consideration since they provide loop holes in the operations and structure of an organization.
Opportunities in the market allow an organization to increase the market output consequently increasing revenue and profitability level increases as well. Any chance to reduce costs of operation and expand market should be exploited. The wide variety of localities in the country presents an opportunity for Gov.com to expand its program. Many of these localities are either in the process of introducing or launching e-government which should be exploited. Other service providers in the industry do not target large municipalities thereby leaving a wide and vast opportunity for Gov.com for expansion.
These are the negative forces and factors with detrimental effects to the organizations operations especially when the organization is unable to mitigate their effects. The Gov.com faces the threats of new entrant in the market like the KPMG consulting and the EDS. The program has witnessed stiff competition from these companies coupled with government officials reluctant in the implementation of e-government program to boost the Gov.com.
Achievement of a competitive advantage
In order for an organization or a business to remain in the market's profitable stand, it must strive to maintain and achieve a sustainable client base especially in a highly competitive market. The Gov.com program has targeted the numerous municipalities which other companies and firms have disregarded. They have also maintained their money as the only reliable transaction means and medium of transactions during hard and challenge businesses cycles like recessions and depressions. The online ease of transacting many services with the citizens has also place Gov.com program as the preferred market leader by all the stakeholders due to its efficiency and effectiveness. The program has also employed the use of modern and advanced easier to use technology which has presented it as a market leader able reach vast variety of customers. In order to be preferred to all, it has incorporated the women, minority groups and small businesses gaining widespread popularity to all.
Bottom line: Their Failure
Many startups in the market never last for long and survives for a maximum of four or so years before going bust either during boom or bad periods. Many of these startups do fail due to organizational structure. Many startups originate from the entrepreneur's dream with a passionate eager to implement it. However, after sometimes, very vital issues and organizational component of fundamental consideration for startup survival in the market are completely ignored. In the organizational set up, many entrepreneurs abstain from operational activities of their own startups and leave them at the hand of professional who do not have the core values and vision at heart for implementation consequently leading to their bust. When they participate in their dreams (startups), in addition of professionals, the situation could be otherwise.
Therefore, the founder's ability to objectively participate in operations, inputs of his attitudes, and be involved in the management of the startup is of fundamental importance in the success of the startup. Lack of internal control systems to evaluate the startups from time to time poses another major contribution for startup failure. They do not at all encourage self evaluation and criticism therefore absence of weak area identification for rectification in good time. Another major organizational weakness that startups do not consider is threats of internal competition in the industry. They do not institute marketing departmental to devise market strategies to sustain startups in highly competitive market. They often ignore the notion of competition in the market. Finally, many startups do not have proper marketing structures to introduce their products and services in the market.