Opportunities to create value through improving the quality of the product and innovating business plan

Executive Summary

Demand media aims at increasing the number of people and the hours they spend on their web pages. This will enable demand media generate more revenue from the increasing number of adverts that will come as a result. Demand media should aim at filtering information such that people who visit their web pages get what they want quickly. This will encourage more people to visit their web pages and even spend more time on the web pages. This though might be limited should the information available be too filtered as to not to give enough information which might tempt the to person try out another web page.

Product strategy

Use low cost articles but those which have a bulk of information. Old books that contain relevant information can be blended with the current information to provide significant knowledge on a variety of disciplines. The idea of creating low cost video will also increase the value of the product. Some information needs to be presented in pictorial form for better understanding. This is not provided by many internet search sites.

Have a wide network of freelance writers and researchers working independently.

It will not be that easy to access these old books. Even if they are accessed, they will have to be schemed through since there might be a lot of irrelevant information in them.

Creation of video as in writing articles will not require just anyone but professionals who might be expensive to manage.

Freelance writers may provide low quality work since they are under no authority or obligation.

Price strategy

Reduce the cost of advertising with the reducing cost of available information to attract as many advertisers as possible. Ensure that your price is in line with your expenditure but more attractive when compared to other search engines.

Limited space especially on the first page which might cause advertisers to seek alternative first page spaces.

Promotion strategy

To ensure that each person using demand media search engine spends more time and thus money on their web page, they should link up with other social networks such that one can cruise through the search page and the social network page with ease without having to log out. Create some space for extra free information that might be relevant to a person to ensure consumer loyalty.

Provide some subsidized space to advertisers.

A lot of personnel will be needed to manage all the available information to be contained on the web page.

Intensive research to link up relevant topics on when on a page.

Marketing strategy

Use available social networks to create awareness of the search engine. These sites are often visited frequently.

Most companies have yet to register with these social networks since they are considered to be personalized, but the personnel of these companies have so they can help in spreading information.

Opportunity Overview

Having created a stable niche by attracting more advertisers in demand media’s search engine, it would be easier to retain writers by offering them lucrative wages from the high returns accrued. The use of thousands of non-patented old materials will also go a long way in providing people with a lot of information thus ensuring customer loyalty. People will now rely on the search engine in quest for knowledge.

Barrier Summary

Barriers facing Demand media will mostly be from other search engines which may use the same strategies as Demand Media but in a better way. Demand media should focus on porter’s force model of intensity of competitive rivalry. This requires that you be fully aware of other companies providing the same services or products as yours and determine ways of always being ahead of them. This would by ensuring that you always insist on quality that is also affordable to maintain consumer loyalty.

Recommendations

Demand Media should ensure that there are very few portals or none at all on their links and web pages. People do not like wasting their time being redirected to various pages for information. Most people prefer a search engine where you type in what you want and you get your information at the click of a button. Ensure also that detailed and well arranged information is presented on the web pages. Jumbled up information in a page may discourage one from using the search engine