Chapter II

Market Feasibility

Industry Description

Computer business is one of the most in demand business nowadays, because of the

popularity of the internet continues to grow at an exponential rate, easy and affordable access to

internet is quickly becoming a necessity of life. Public wants access to the methods of

communication and volumes of information now available on the internet, and access at a cost

they can afford and in such a way that they are not socially, economically and politically

isolated. Life cycle of the market would be stable because computer users are rapidly increasing.

Industry Competitiveness

Nowadays, computer business is one of the booming industries, and can be found

everywhere and because of this many competitors and already exist. Majority of the computer

shops are operating on a similar kind of services, some prefer to have an extra service to have

high prices in exchange.

Market Potential

To penetrate the target market, different marketing strategies and promotions will be

considered. Leaflets will be distributed and handed out to various business establishments,

offices, schools, friends and relatives.

 Games and services offered will be displayed on the store window. This computer shop

business will offer promo’s to attract the customers like cheaper rate for computer rental, and

membership card.

Sales Projection

Table 2.0 Price list of services offered

Services Price

Computer Rental (Internet, Games, Chat) P 10.00/hr

Tutorial P 50/hr

Printing (black and white) P 3.00/page

Printing (colored) P 5.00 up/page

Photo Printing (wallet size) P 3.00

Photo Printing (3R) P 5.00

Photo Printing (4R) P 10.00

CD Burning P 30.00

Table 2.1 Total Gross Income

Service Price Daily Weekly Monthly Annually

Computer Rental (Internet, P 10/hr 2,100 14,700 63,000 766,500

Games, Chat)

Tutorial P 50/hr 100 700 3000 36,500

Printing (black and white) P 3/page 150 1050 4,500 54,750

Printing (colored) P 5 up/page 100 700 3000 36,500

Photo Printing (wallet size) P3 15 105 450 5,475

Photo Printing (3R) P5 25 175 150 9,125

Photo Printing (4R) P 10 30 210 300 10,950

CD Burning P 30 60 420 1800 21,900

Total 2,580 18,060 76,200 941,700

Table 2.3 Projected Sales for 3 years

Annual Gross Income Year Total

P 941,700 1 P 941,700

P 1,883,400 2 P 1,883,400

P 2,825,100 3 P 2,825,100

Accessibility to Market Outlets

 The target markets of this computer shop business are the large number of student and

nearby neighborhood population. Because the student population continue to grow with the

success of the educational institutes. Access to the internet, entertainment, and the upscale

ambiance will attract the students. Business community is growing rapidly with the addition of

new companies day by day.