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
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- Spring '17
- Rashmi Jain
- The A-Team, Porter generic strategies