The threat of Potential New Entrants

The threat of Potential New Entrants

In line with its aim of increasing online presence to attract more potential customers, unbranded keywords from Variety Design Center Inc.’s SEO strategy will continually face the threat of new entrants competing to appear first on search engines. In response to this threat, the company should conduct continuous competitive intelligence and keyword research to bolster the effects of SEO strategy (Ziakis, Vlachopoulou, Kyrkoudis, & Karagkiozidou, 2019). The three types of entrants that the firm will face are new competitors in the sector that look for priority placement on search engines, existing firms in the sector that decide to venture into active organic search, and existing businesses that increase their investment in SEO marketing. Therefore, Variety Design Center Inc. should create entry barriers for all the three types of entrants to eliminate competition. Some of the measures that the company can adopt include investing in Optimum Content Marketing Strategy (OCMS) and differentiating the organization by targeting and owning long-tail keywords that are unique and uncommon. The firm can also concentrate on specific keywords that drive customer traffic and conversion. Finally, the organization should increase advertising efforts to own the keywords across all search engines.

Degree of Competitive Rivalry

In SEO marketing, the competitive intensity and rivalry for a specific keyword changes continuously, which affects a company’s SEO strategy outcomes either positively or negatively. As described in Iskandar and Komara (2018), the different SEO tools applicable affect a business’ performance. This impact emanates from the joint effect of new entrants, substitute products, the suppliers’ bargaining power, and the buyers’ bargaining power. When a player dominates in the business and search engines by earning huge profits from the SEO strategy, new competition always emerge for the same keywords that the firm uses in its SEO strategy. However, when the organization focuses its SEO strategy on long keyword phrases that are unique to its business and brand, it continues to use the keywords to drive conversions as new entrants will need a massive investment to outrank it in the search engines (Ziakis et al., 2019).

Bargaining Power of Suppliers

In keyword competition, the search engines are the suppliers. Continuously changing algorithms of the search engines determine the keyword positions. The Penguin and Panda updates, for instance, reveal how the threat of suppliers can adversely affect a company’s keyword position in a search engine (Goyal & Goyal, 2013). In instances where such updates negatively affect Variety’s web presence while leaving the rival firms’ web presence untouched or improving them, then these organizations could have outranked Variety on the strategic keywords that it used previously. Therefore, Variety should stay ahead of the game by ensuring that it outperforms its competitors continually and invests in new search engines where its rivals could be having an edge, such as Google+.

Bargaining Power of Buyers

In this sector, the effect of customers on the ranking of a company’s keywords determines the buyers’ bargaining power. The decision of search engines such as Google and Bing to factor social engagement, social signals, and reviews into search algorithms elicits the need for the search engine providers to access a firm’s social signals, reviews, and social engagement (Goyal & Goyal, 2013). As a result, Variety should give searchers the freedom to produce social signals from its press releases, social networks, web pages, and blogs to improve its organic rankings. When the organization notes that a rival is outperforming it on social signaling, it should increase the ability of its prospects, searchers, and customers to produce social signals from its web presence. In essence, the rising significance of local search elicits the need for thinking about the strategies that rivals could be using to out-review the corporation.

Threat of Substitutes

In SEO marketing, the threat of substitutes arises when rival firms discover a better, productive way to attract prospects and increase conversion. As a new business in the SEO arena, the goal is to acquire more clients through increased content optimization (Agarwal, Birajdar & Bolia, 2019).The alternative strategies include search retargeting, paid search, email marketing, and trade shows (Johansson & Wengberg, 2017). While Variety strives to dominate Google for its unique keywords that drive traffic and conversions, it should not depend on one tactic. The company should ensure that its marketing strategy supports prospects throughout the buying process. Understanding how to communicate with potential buyers during the purchasing process, assisting them to complete their search on alternative providers, and helping them to make the final decision are some of the supplementary approaches that the company should add to dominating in search engines (Yasmin, Tasneem, & Fatema, 2015). Most importantly, Variety’s marketers should distinguish when customers use alternative solutions to make the final decision and when they use SEO.

Stakeholders

Jingwen Zhang, an interior designer at Variety Design Center Inc., is the chief stakeholder in the project. The project sponsor reminisces the company’s culture of as he is devoted to developing unique, artistic, and creative ideas that not only meet client expectations but also exceed them. As the leader of other designers at the firm, Zhang has cultivated a designing culture where designers are not allowed to copy from previous work, other people’s designs, or magazines. On the contrary, the sponsor requires all designs to be unique to the client. The company’s culture is inclined on upholding a design culture of creativity and quality that impresses customers, which allows the company to sustain positive relationships with clients.

Cost/Benefit Analysis

Tangible Benefits

Benefit

1. Track rankings
2. Monitor conversions
3. Determine sales generated

Value & Probability:

$5 0.75

Assumptions Driving Value:

1. The SEO strategy is focused on keywords and will use them a lot to drive conversions.
2. Including target keywords in the domain name will improve Variety’s ranking.
3. Using links will also improve Variety’s ranking.
4. Marketing Variety on social media will improve the site’s ranking.

Intangible Benefits

Benefit:

1. Establishing Variety’s brand online.
2. Word-of-mouth advertising from previous clients that used the site to place their orders.
3. Creating a strong online reputation for the Variety brand.
4. Learning new ideas from others.

Value & Probability

$4.6 0.67

Assumptions Driving Value

1. The SEO strategy will help the company to establish its brand online.
2. Previous customers satisfied with the company’s services will market it to other prospects.
3. The SEO strategy will give Variety a platform for developing a strong brand reputation.
4. The company will learn from others after being a part of the online community.

Cos Categories Amount ($)

Internal Labor hours 150

External costs ————- 650

Labor (consultants, contract labor) 250

Equipment, hardware or software 350

List other costs such as travel & training 50

Financial Return

In this area of business, financial returns are expected over time since most of the investment and costs are only paid for at the beginning. Once the business is available and visible throughout the search engines, it will attract significant client flow. As the customers increase, the financial returns will increase. Therefore, there will be no need for additional costs to increase returns.

Assignment 3B – Work Breakdown Structure and Schedule

Project Tasks Outline

1. Project Management System

1.1 Initiation

1.1.1 Evaluation of the project scope and assessment of the target market

1.1.2 Development of the project Charter

1.1.3 Deliverable: Submission of Project Charter

1.1.4 Review of the project Charter

1.1.5 Approval/Rejection of the Charter

1.1.6 The signing of the Charter upon approval

1.2 Planning

1.2.1 Create a Prelude Scope Statement of the project

1.2.2 Determine and constitute the Project Team

1.2.3 The first meeting of the Project Team starts

1.2.4 Create the Project Plan

1.2.5 Submit Project Plan to the Supervising Management Team/Board

1.2.6 Milestone: Project Plan Approval

1.2.7 Review the Project Plan if not approved

1.3 Execution

1.3.1 Preliminary Meeting kickoff

1.3.2 Market Assessment

1.3.3 Verify and Validate Project Requirements

1.3.4 Constitute User Requirements

1.3.5 Design Management System

1.3.6 Identify and Procure Hardware/Software for the System

1.3.7 Install the Required Development System

1.3.8 Test the Completed System

1.3.9 Install Live System

1.3.10 Make User Training Workshops

1.3.11 Launch the New Company Website

1.4 Control

1.4.1 Supervising Board of Managers: Variety Design center Inc.

1.4.2 Project Sponsor

1.4.3 Project Management Team

1.4.4 Project Periodic Status Meetings

1.4.5 Risk Management Schedule

1.4.6 Periodic Update on Project Deliverables

1.4.7 Constant Review of Project Management Plan

1.5 Closeout

1.5.1 Audit Procurement Operations

1.5.2 Create and Document Lessons Learned

1.5.3 Update Records of Project Progress

1.5.4 Gain Formal Acceptance

1.5.5 Archive Documents

Work Breakdown Task Definition and Schedule

Level

WBS Code

Element Name

Definition

Due By

1

1

Project Management System

Description of all the work to implement a new company marketing website system.

01/27/2020

1.1

Initiation

Commencement of the project

01/27/2020

1.1.1

Evaluation of the Project Scope and Assessment of Market

The project manager evaluates the need for the project and its relevance to the target market.

01/30/2020

1.1.2

Development of the Project Charter

Project Manager to develop the Project Charter.

02/03/2020

1.1.3

Deliverable: Submission of Project Charter

The project manager delivers the Project Charter to the Project Sponsor.

02/05/2020

1.1.4

Review of the Project Charter

The project sponsor reviews the Project Charter.

02/11/2020

1.1.5

Approval/Rejection of the Project Charter

The Project Sponsor signs the Project Charter upon approval to authorize the Project Manager to move to the next phase.

Rejection of the Project Charter calls for a review and reevaluation of the Project.

02/15/2020

1.1.6

The signing of the Charter

Project Sponsor signs the final Project Charter to usher in the planning phase.

02/15/2020

1.2

Planning

The project team initiates the plan of the project.

02/17/2020

1.2.1

Create a Prelude Scope Statement of the Project

Project Manager creates a Prelude Scope Statement.

02/17/2020

1.2.2

Determine and Constitute the Project Team

The Project Manager determines the project team and identifies the required resources.

02/17/2020

1.2.3

The first meeting of the Project Team starts

All stakeholders, including project manager, sponsor, and team, engage in project planning process.

02/19/2020

1.2.4

Create the Project Plan

Project Manager guides the Project Team in the process of creating the Project Plan

02/19/2020

1.2.5

Submit the Project Plan

Project Sponsor receives the project plan from the Project Manager

02/24/2020

1.2.6

Milestone: Project Plan Approval

The project plan is approved, and the Project Manager has permission to proceed to execute the project according to the project plan.

02/28/2020

1.3

Execution

Constitutes all the work involved in implementing the project plan.

03/01/2020

1.3.1

Preliminary Meeting Kickoff

Project execution formally begins.

03/01/2020

1.3.2

Market Assessment

Project Team conducts surveys to determine the market demands to align the project deliverables to specific user requirements.

03/02/2020

1.3.3

Verify & Validate User Requirements

Project team verifies and validates user requirements

With findings from the review, the project team makes recommendations based on project findings.

03/11/2020

1.3.4

Constitute User Requirements

The technical resources design the new website management system.

03/12/2020

1.3.5

Design Management System

Project Team designs the website management system using wix.com.

03/15/2020

1.3.6

Identify and Procure Hardware and Software for the System

The procurement team procures the hardware and software for the developed system.

03/19/2020

1.3.7

Install the Required Development System

The actual system is installed and configured.

03/22/2020

1.3.8

Test the Completed System

Conduct a system test.

03/30/2020

1.3.9

Install Live System

Make the system ready for launch.

04/09/2020

1.3.10

Conduct User Training Workshops

All the users are provided with a three hours training class. Managers are allowed to take up to five hours to cover the advance aspect of the website system.

04/13/2020

1.3.11

Go Live

The system goes live with all users.

04/23/2020

1.4

Control

This section enumerates the control centers and processes for the project.

1.4.1

Supervising Board of Managers

Variety Design Center Inc. Management oversees the project processes.

All through the project execution.

1.4.2

Project Sponsor

The project sponsor oversees the project processes.

All through the project execution.

1.4.3

Project Management Team

Project Management team evaluates the pace of execution of the project.

All through the project execution.

1.4.4

Project Periodic Status Meetings

Meetings help in the assessment of project progress.

To be scheduled periodically

1.4.5

Risk Management Mechanisms

The project manager incorporates risk management systems in the project execution.

02/01/2020

1.4.6

Periodic Update on Project Deliverables

Project team updates stakeholders on the project progress.

To be scheduled periodically

1.4.7

Constant Review of Project Management Plan

Project Team, Project Manager, Sponsors, and all stakeholders make reviews on the project deliverables.

To be scheduled periodically

1.5

Closeout

The work to close-out the project.

04/28/2020

1.5.1

Audit Procurement Operations

All the procurement operations are audited.

04/25/2020

1.5.2

Create lesson-learned files

The project team details all the lessons learned during the project execution and files them.

All through the project execution

1.5.3

Update Records of Project Progress

The project team continually updates the lesson-learned files.

All through the project execution

1.5.4

Gain Formal Acceptance

The project sponsor accepts and signs the acceptance form after confirming that the project attains its objectives

04/30/2020

1.5.5

Archive all project files

All project documentation archived.

05/01/2020