unforeseen negative side effects, Kingo would have to contract with developers again in
order to change the application to better suit the company’s needs. One unique aspect
of the custom application is that once completed, there could be the potential to market
the application to other small companies within the industry, creating an additional
income source.
If Kingo’s only focus was to stay in line with the business’ cost focus strategy, Google
Docs would provide a quality option. While among the most cost-effective options,
Google Docs does not meet all of the needs of the company. The primary concern for
Kingo would have been that all of the information would be on one large document that
could be edited by anyone. The document cannot be subdivided into sections specific to

each department, leading to a significant amount of unnecessary information being
available to different departments. Google also has the ability to suspend their services,
which would make any sensitive information unavailable for the company to access.
This option also lacked formal customer support aside from blogs and forums.
Platform as a Service (PaaS) is delivered on a cloud-computing infrastructure, similar to
Google Docs, but is significantly more costly than the three previous options. This
option would provide Kingo with the freedom to build his own applications, which would
lend well to continued differentiation between 1-888-JUNK-VAN and its competitors. An
additional advantage was that long-term contracts were not required, meaning Kingo
could abandon this option if the costs could not be justified moving forward. Conversely,
Kingo was unsure if he possessed the IT skills necessary to take advantage of the
independence that this service offered, so a paid developer would most likely need to
be brought in, adding to the expected costs.
Enterprise Resource Planning (ERP) was by far the most expensive option and is built
around a central database that is accessible remotely. This system claimed to provide
options for small businesses, such as 1-888-JUNK-VAN; however, the license costs
would most likely be even higher for companies with fewer users. This option could
have a positive impact on fuel costs, one of the most significant costs incurred by the
company, by installing a GPS system that the drivers could use in the trucks to help
improve route efficiency. The estimates for this option, unfortunately also include


You've reached the end of your free preview.
Want to read all 4 pages?
- Spring '17
- Rashmi Jain
- The A-Team, Porter generic strategies