Part 1-The Business

1.0 Executive Summary

Custom software development is a full software production and service dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. In addition we will have services that enhance customer satisfaction by plugging small application softwares, like games. And we will also maintain a friendly, fair, and creative work environment, which introduce the current technology, which allows customers to create their own idea and hard work in order to perform their task. 1.1 Our product: Customized software is a type of software that is developed for a specific organization. It is generally not targeted to the mass market, but usually created for companies, business entities, and organizations. And also we have: Video editing: is the process of manipulating and rearranging video shots to create a new work. Software maintenance: is the updating of application programs in order to meet changing information requirements, such as adding new functions and changing data formats. It also includes fixing bugs and adapting the software to new hardware devices. Hardware maintenance: is the testing and cleaning of computer equipments. Advertisements using animation: announcing people to easily understand our products. This will help to create a clear image for our products. Internet service: providing e-mail accounts to users which allow them to communicate with one another by sending and receiving electronic messages through their ISP's servers. 1.2 Our customers: Specific organizations (small), NGOs, Private companies, Government for specific application

1.3 The team (owners): the owners of the customized software company are the teams. That is we. We organized ourselves as a team and decided to work together. And the name of the team is called ASHA.

1.3.1 Mission: To supply products and services that enhances our clients day today activity by replacing human efforts into modernized system, with the help of computer. To be the most valued provider of the customized software in the country and the world. 1.3.2 Vision To see our country from the group of the developed countries in the world in the field of software technology. 1.4 The financial plan Financial Needs: Investment funding is for capital expense and operating expenses for the first year of operation. 1.4.1 Loans: we will start by applying for loan. This loan will be the base of our customized software company. _______________________________________________________________________ EXPENSE COST Computer/Electronic equipment Office Furniture Marketing Materials/Promotions Office Lease (for first year) Utilities Inventory/Packaging Setup Salaries/benefits TOTAL Financing Needed: $10,000 $6,000 $30,000 $8,000 $4,000 $12,000 $50,000 $120,000

From the needed expense $28,000 is in our hand. So the amount of loan we expect is $92,000.

1.5 Objective The main objective of this project is to carryout feasibility study on software development business that is, whether or not it will work, and whether or not it is worth doing economically.

 To review the businesss strengths and weaknesses, its position in the marketplace, and its financial situation. This sort of overview provides small business owners and managers with an objective view of the company's current situation and opportunities. By providing information on consumer needs and how best to meet them, the feasibility study can also lead to new ideas for strategic changes. To study technical feasibility of customized software developing company. To assure and conduct market feasibility of customized software developing company. To carry out financial and organizational feasibility, so that the enterprise can meet its goal and objectives.

2.0 Enterprise description

2.1 The Industry The customized software industry has great scope for people as it provides employment to technical and non-technical graduates and has the capability to generate huge foreign exchange. Many countries also get benefits in terms of labor costs and business processes. Also, several companies are broadening the range of services being provided to the customers, which is resulting in more off shoring. Talent acquisition, development and retention initiatives taken by the companies have brought down the employee attrition rates, thereby providing more stability to the employees and increasing their job commitment. In this industry different software could be produced for a variety of purposes - the three most common purposes are to meet specific needs of a specific client/business, to meet a perceived need of some set of potential users (the case with commercial and open source software), or for personal use. Today, demand of using these products is dramatically increasing, but there is no full access to get all required softwares in our country.

2.1.1 Key people The company will be managed by the team of fur people who are graduated from Bahir Dar University in computer science and engineering. 1. Addisu damena: the External Management Team leader This section will describe the main import export categories relevant to our business, by identifying who's going to have responsibility for that category, and profile that person's skills.

Here we may find that our company needs additional management categories such as cooperation with foreign companies to our company. And such things will be handled by this key person. 2. Adisu wagaw: the Internal Management Team leader This section will describe the main business management categories relevant to our business, by identifying who's going to have responsibility for that category, and profile that person's skills. Here we may find that our company needs additional management categories such as Research and Development and/or Human Resources. All are under this key person. 3. Hewan Melaku: the market research team leader. This section studies the market situation, the competitor and what will the market needs. 4. Sintayehu Neway: the manager of the economic fairs that are all related with the income and the outcome of the system, the things that that should be purchased are controlled by this key person. 2.1.2 Require human resource

Position Secretary Accountant Software engineer Genitor Security guard

skill diploma in secretary science BSC in accounting first degree in computer engineering /science grade 12 complete grade 12 complete

number of person

2.1.3 Keys to Success The key to success in our business are:

Location: providing an easily accessible location for customers. The company runs with the name ASHA corporation capital structure. Locate at Bahir Dar kebele 04 next to somewhere and in front of some other where, supported by this consultant. Environment: providing an environment conductive to giving relaxing and professional service. Convenience: offering clients a wide range of services in one setting, and extended business ours. Reputation: reputations of the owner and other beauticians as providing superior personal service

2.2 The organization concept 2.2.1 Background In the last ten years has seen a dramatic growth in information technology in Ethiopia. Developing IT service private companies, increasing import of computers and introducing with the Internet are some of the changes. Despite these developments, the impact of information and communication technologies on the quality of Ethiopians remains minimum. It is important to create enabling environment for the information and communication technologies to diffuse into the social thread of the society. The lack of communication and information policy was the main causes of backwardness in information technology in the country. Also the country faces the highest shortage of programmers in custom and new systems development. Indigenous efforts on systems development, system analysis and design, network development, application development and language interface design have been very limited. However, the establishment of a few private training schools such as HILCOE has shown a significant potential for the future of information and communication technology growth in Ethiopia especially in software development field. On the other hand, international organizations and development aid agencies have played a significant role in information technology diffusion in the country. The existence of many international organizations in the capital city has created opportunities for demonstrations of key information technology, transfer of ideas, sponsoring structural development projects and a potential market segment for emerging small and medium enterprises in the field. Information communication as industry could lead to a substantial source of revenue to the country with a minimum investment. There is a considerable potential for ICT (Information and Communication Technologies) based jobs ranging from ordinary data entry to software development that can lead to substantial foreign earnings. Ethiopia sits at equal distance between North America and Asia, has 13 months of sunshine that makes telecommuting easier. In addition the growing population pressure and policy on rural economic development requires considerable investment and attention to ICTs to achieve sustainable growth in the long term. The immediate potential benefits of information technology in Ethiopia include:

efficient communications for manufacturing, service and tourism sector fast response to natural disasters and effective rural health and family planning services effective governance and administrative effectiveness efficient education, research and communication of research results access to global market and research information employment opportunities for small and medium enterprises effective and enhanced data and information gathering and distribution for better planning enhanced national cohesion and integration of heterogeneous social composition or geographical dispersal

2.2.2 Type of Enterprise

The form of the enterprise is private limed company (Ltd). 2.3 Reasons for the startup of the enterprise: the reason that motivates us to start this costume software is the advancement in information technology and internet penetration of the world. Computerization/automation of our world services has greatly enhanced various business processes and their communication between companies, service providers and each individual is not left out. Especially in our country Ethiopia the system is unknown.

2.3 The products and services

3.0 Market analysis

3.1 customers
ASHA provides different services to the customer, which implies different behavior of customers. Our services are designed to satisfy the need of the customer in anyways. Every customer comes with different need and interest, to be competitive it have to solve the required need. Even if they are not capable of getting something they want, they will have an opportunity to choose among similar products. Services are named with one name hence they are done with the help of the customers interest and need. Some of the services require loyal customers, those who revisit the organization over times, since they are satisfied with the service. Our software seller has its own impulse customers, so that they can buy among the different supplied software. Some of our customers are frequent or need based customers, implies the services will satisfy their need otherwise will handle positively by showing them ways and reasons to switch to other similar products and brands and initiating them to buy these. The service does not simply allow wandering customers go with no help, instead we will spent some time with them since they are real voice for the company in the community.

3.2 Market size and trends The size &scope of the custom software industry depends on the following points: Number of employees Availability of Finance Demands of the customer Capital investment Current technology situation on our country

Also institutions are providing funds for the expansion of custom software businesses. In order to support IT the Ethiopian Government is also taking different measures.

3.2.2 Market segments The IT products can also have different market segments to satisfy the demands of the customer & to get acceptance at different level of living standard. So, the possible market segments are: Full version software or game( powerful, fully functional, and secured from any attack e.g. virus, long lived working) Trial version software or game(it works for some fixed time after installation time) Safe version software or game(normal software between the above mentioned) Language different(on most use languages) software or game Support each model of the brand (compatibility for each brands series)

3.2.3 Future direction of custom software industry The customized software will continue to gain momentum; telecom and wireless will follow the trend. The immense expansion in software technologies is expected to continue into the next decade also. IT will bring about a drastic improvement in the quality of life as it impacts application domains and global competitiveness. There are a number of emerging trends that will have significant combined impact on the development of technology, the nature of business and the way in which society interacts. Globalization and its effects in the global economy have a profound effect in shaping the global custom software industry. There is great, unceasing demand for technology-enabled business transformation constant innovation in technology and technology-intensive products and services across all sectors. The rise of social computing and the creation of new technologies to form and extend networks will shape future IT products, services and skills. The major social factors influencing the direction of the custom software sector include the rise of social computing, increased consumer power in determining content and services and the impact of the new generation of digital natives and the expectations they bring to the workplace and the world market.

3.2.4 Nature of the industry

Today IT is at the heart of several large industries. Weve seen the industry evolve from system administrators being a bunch of doctoral and masters students to kids graduating from high school knowing how to program in a number of languages with different certification. It is hard to imagine what the next decades will bring; the change has been rapid and amazing. 3.2.5 Life cycle of the industry The industry life cycle refers to the succession of stage an industry goes through. It is away to trace the stages of industrys product acceptance from its introduction to its demise (end or fall). Identifying the life cycle helps the industry in the following ways: To know where the product exist at this moment. Predict what may happen in the future. To select the appropriate strategies to be followed. To identify competitors at different stages.

All manufacturing industry can involve in different stages of life cycle. This are: 1. Emerging state 3. Maturity stage 2. Growth stage 4. Decline stage

The life cycle of the industry depends on the types of product. Therefore the life cycle of any industry has direct relation with the life cycle of the product. The most common product life cycle in IT is the Systems Development Life Cycle (SDLC), which represents the sequential phases or stages an information system follows throughout its useful life. The SDLC establishes a logical order or sequence in which the system development activities occur and indicates whether to proceed from one system development activity to the next. i. Emerging state

At emerging stage the enterprise have the following characteristics: Sales of the product grows slowly High production cost Skimming price to recover development costs Selective distribution of the product until customer show acceptance of it

On marketing, communication seeks to build product awareness to educate potential customers about products

ii.

Maturity stage. At this stage the product sales is decrease or not as such grow, due competitors with the

same product. So it is better to use different technique to compete at this stage. Some of them are: Try to differentiate product type by adding different features. Offer incentives to encourage preference towards the products. The product line will be widened. Utilize high capacity to produce quality product. Generally product or industry life cycle used to determine the life cycle of the production market with respect to the business or commercial costs &sales measures. 3.2 Enterprise competitiveness To explore some barriers /ease of entry of competitors into our industry are: Lack of knowhow among end users. It needs individuals that have good capability on software programming skill. The business is occasional It needs longer time and effort to be well known by the society and to stay in the industry in a sustainable manner The probability that the software developed by this business can easily be copied by others is very risk. With the aspect of concentration and competitiveness of suppliers, we analyzed that there is no any input for our business that have to receive from other source in order to run. But in the aspect of buyers there are a number of buyers that buys our software products and services like Internet caf and software and hardware maintenance. Where as in the aspect of price competitiveness while we develop software based on customers request we will not encounter large price computation since there are only few companies that can develop the same kind of software with less money. While producing other popular software products we will encounter price computation to overcome this we will increase number of products and use advertisement techniques. Some of estimated competitors currently are:

INSA (Information Network Security Agency) CIBER (Centers for International Business Education and Research)

3.3 Market potential What is the potential global market for various computing products, and how does it breakdown by region and country? This is a question of interest to many IT firms whether producing PCs, cell phones, game consoles or other devices, or selling Internet or wireless services. Market potential is a sophisticated estimate of demand based on the size of a country, the distribution of income among the population, the infrastructure to support IT products and the utility of such products to a countrys consumers and organizations. As we know our population approach towards computer and computer products is increasing day to day with the technology. For instance financial services have more inherent demand for computing than others and For information and communication products, the necessary infrastructure can include telephone lines, wireless networks, Internet service providers, and human resources such as skilled programmers, technicians and users. Automation of manual services is also more popular. When we notice the potential market opportunities, our focus area is an emerging firm but it has very high potential to develop and sustain in the future with satisfaction.

4.0 Marketing Plan