AC Computer Shop Feasibility Studies
AC Computer Shop Feasibility Studies
AC Computer Shop Feasibility Studies
Project Summary
Introduction
Computer shop business is one of the most in demand businesses here in Bulacan.
Nowadays, internet cafes are really in demand because of the fast changing technology that the
people embraced just like here in the Philippines. Some have their own laptops and bring it to
coffee shops so that they could relax and at the same time prepare their assignments and paper
works. The people today are very busy and would want to do their jobs in a beautiful and
innovative environment that could satisfy their needs and lessen their stress due to busy
schedule.
The proposed name of the firm is “AC COMPUTER SHOP”. The owner will register the
firm with the Department of Trade and Industry (DTI) and Local Government Unit (LGU)
concerned. The firm will be registered as single proprietorship. The business is about computer
shop.
Location
The business will be renting a space along Hi-way near to Government Office, and
schools. The target consumers are students, teachers, office workers, and nearby neighborhood
especially those people whose relatives or loved ones are abroad.
The two hundred (200) meter radius requirements as provided in the existing zoning code and
other applicable rules and regulations wherein computer shops and other similar establishments
and places of amusements should be put up or constructed at least two hundred (200) meters
away from the church, schools, hospitals and other government offices shall be strictly complied
with.
The AC Computer Shop looks forward to be the most competitive shop in Bocaue and
nearby towns of Bulacan. The proponent dreams of making profit and staying long in the
business.
For operating and establishing “AC COMPUTER SHOP”, I am having some objectives.
The following are the most important criteria by which almost every subject is being
measured:
1. Raising Funds or Capital – this is the number one need of a business man in
putting up a business. Whether he will produce the money by his own pocket or he
will have a business loan in a bank.
2. Recognize profit from the business – the main reason of a person for going into
business is profit. People tend to enter into this kind of business because of their
expectation to earn money or have an income.
3. It helps the economic growth of the area – this company will give a job
opportunity to the resident of bulacan.
4. Enhance the availability of the company – the company will become stable if it
has the ability to compete to his competitor and ability to continue operations yet
there is expected risks in a business.
Market Strategies
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, bus and jeepney stations, friends, and relatives. Games and services offered will
be displayed on the store window. I will offer promo’s to attract the consumer like cheaper rate
for computer rental, and membership card. I will put a tarpaulin on the place itself where my
shop is standing, promoting the opening of my computer shop also one month before the
opening. To let the people know that there will be a new Computer Shop on the vicinity.
As the popularity of the Internet continues to grow at an exponential rate, easy and
affordable access is quickly becoming a necessity of life. “AC Computer Shop” provides
communities with the ability to access the Internet and share Internet experiences in a
comfortable environment.
People of all ages and backgrounds will come to enjoy the unique, up to date, and
innovative environment that “AC Computer Shop” provides.
Service Description
AC Computer Shop will provide its customers with full access to the Internet and
common computer software and hardware. Some of the Internet and computing services
available to AC Computer Shop are listed below:
You'll appreciate surfing and gaming at AC Computer Shop. It has super-fast Internet
connection; you'll be visiting all your favorite sites in record time. Multi-player gaming is
quicker and more exciting when you and your friends are able to do battle with no lag and plenty
of bonding for everyone.
Guidelines of Business
Ambiance
• Not too dark and bright because we want the shop more encouraging to work and
play.
• Our computer tables have a board between users for privacy purposes.
• All furniture are fully furnished and labor included.
Price Study
It is one of the considerations of the customer that enhance them to rent computers. If the
price is lower they will rent.
Internet Connection
The major cost of a computer shop is the internet connection. For providing better
service, the proposed project will use a high band width connection for better speed as the
project is going on to provide service of video chat. It is recommended that the internet
connection should be taken from the best internet service provider.
Recommended Connection
Marketing Program
AC Computer Shop has three main strategies. The first strategy focuses on
attracting novice Internet users, by providing a novice friendly environment, AC Computer Shop
hopes to educate and train a loyal customer base.
The second, and most important, strategy focuses on pulling in power Internet users.
Power Internet users are extremely familiar with the Internet and its offerings. This group of
customers serves an important function at AC Computer Shop. Power users have knowledge and
web-browsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for AC Computer Shop
customers. A social environment, that provides entertainment, will serve to attract customers that
wouldn't normally think about using the Internet. Once on location at AC Computer Shop, these
customers that came for the more standard entertainment offerings will realize the potential
entertainment value the Internet can provide.
Attract Power Internet Users
AC Computer Shop’s second strategy will be focused on attracting power Internet users.
Power Internet users provide an important function. AC Computer Shop plans on attracting this
type of customer by:
The large student and nearby neighborhood population will become an important part of
the AC Computer Shop customer base. The student population continues 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.
Market Growth
The market for the services AC Computer Shop will offer is growing rapidly. The
computer shop hasn't come to this area yet, but similar services are growing rapidly on a global
scale. Large cities that cater to large numbers of traveling business people have been saturated
with businesses offering the services AC Computer Shop will offer. Business people use the
Internet services to catch up on email and communications with their family. My area supports a
population that has many of the same needs and interests of this larger group. The student
population continues to grow as the University grows in popularity with high-school graduates
from out of state. These students tend to have money and an interest in up-scale social centers.
AC Computer Shop will target these groups with the use of fliers and tarpaulin.
SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths
and weaknesses AC Computer Shop must address. It also allows us to examine the opportunities
presented to AC Computer Shop as well as potential threats. AC Computer Shop has a useful
inventory of strengths that will help it succeed. These strengths include: a knowledgeable and
friendly staff, modern computer hardware, and a clear vision of the market need. Strengths are
valuable, but it is also important to realize the weaknesses AC Computer Shop must address.
These weaknesses include: a dependence on quickly changing technology and the cost factor
associated with keeping modern computer hardware. AC Computer Shop’s strengths will help it
capitalize on rising opportunities. These opportunities include, but are not limited to, a growing
population of daily Internet users, and the growing social bonds fostered by the new Internet
communities. Threats that AC Computer Shop should be aware of include, the rapidly falling
cost of Internet access, and rising local competitors.
Strengths
Weaknesses
Opportunities
Threats
1. Rapidly falling cost of Internet access – The cost of access to the Internet for
home users is dropping rapidly. Internet access may become so cheap and
affordable that nobody will be willing to pay for access to it. AC Computer Shop
is aware of this threat and will closely monitor pricing.
2. Rising local competitors – Currently, AC Computer Shop is enjoying a first-
mover advantage in the local computer shop market. However, additional
competitors are on the horizon, and I need to be prepared for their entry into the
market. Many of my programs will be designed to build customer loyalty, and it is
my hope that my quality service and up-scale ambiance won’t be easily
duplicated.
Market Needs
As the popularity of internet continues to grow at an exponential rate, easy and affordable
access 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.
Market Trends
More than ninety percent of my customers are youngsters and their only objective to get
to these is to get enjoyment.
Marketing Strategies
I create some advertising strategies like I will print a thousand of fliers printed with the
total cost of Php. 908.00 (500 pieces on small fliers that cost Php. 220.50, while the second fliers
are also 500 pieces with the cost of Php. 687.50), a month before the opening me and my staff
will distribute the fliers. I will also put tarpaulin on the place itself where my shop is standing a
month before the opening. It will promote the services offered and also the opening of my
Computer Shop. To let the people know that there will be a new Computer Shop on the vicinity.
The tarpaulin size is 64” x 100”and amounting Php. 497.75.
Management Strategies
Maintain a focus on quality products with bottom-line growth through cost reduction and
optimal performance. I also focus on technology and innovation to make sure our employees
skills are up to standard with today’s mode of production.
Demand
As you can see there is 8.08 percent of demand in internet service in year 2004 and
increase of 6.6 percent on the next year. In 2006 there is 17.28 percent of demand in internet
service and increase of 6.14 percent in year 2007 and in the year 2008 there’s a demand of 36.54
percent in internet services.
I will use the “Arithmetic Straight Line” method in projecting the demand for the next
five years.
Yc = a + Yi - 1 Yc = initial value
Yn = final value
Yi – 1 = value for past years
where: a = Yn – Yc
N-1
Computation:
a = 175,110 – 38,720 = 34,098
5–1
2009 = 34,098 + 175,110 = Php. 209,208.00 2012 = 34,098 + 277,404 = Php. 311,502.00
2010 = 34,098 + 209,208 = Php. 243,306.00 2013 = 34,098 + 311,502 = Php. 345,600.00
2011 = 34,098 + 243,360 = Php. 277,404.00
Supply
As you can see there is 8.21 percent of supply in internet service in year 2004 and
increase of 5.47 percent on the next year. In 2006 there is 16.09 percent of supply in internet
service and increase of 5.05 percent in year 2007 and in the year 2008 there’s a supply of 41.87
percent in internet services.
I will use the “Arithmetic Straight Line” method in projecting the supply for the next five
years.
Yc = a + Yi - 1 Yc = initial value
Yn = final value
Yi – 1 = value for past years
where: a = Yn – Yc
N-1
Computation:
a = 107,770 – 21,120 = 21,663
5–1
2009 = 21,663 + 107,770= Php. 129,433.00 2012 = 21,663 + 172,759= Php. 194,422.00
2010 = 21,663 +129,433 = Php. 151,096.00 2013 = 21,663 + 194,422= Php. 216,085.00
2011 = 21,663 + 151,096= Php. 172,759.00
Projected Supply for five years:
The table and figure below will shows the projected demand and supply of AC Computer
Shop for the next five years in percentage.
Table 3
Percentage of Percentage of
Year Quantity Quantity
Demand Supplied
2009 15.08 14.98
2010 17.54 17.49
2011 20 20
2012 22.46 22.51
2013 24.92 25.02
100% 100%
Figure 3
The figure 3 shows the projected demand and supply of AC Computer Shop for the next
five years.
In year 2009 there is a 15.08% of demand on internet services, that’s why AC Computer
Shop needs a 14.98% to supply the demand. In 2010 there is 17.54% in demand and 17.49% in
supply, while in 2011 it has a 20% both in demand and in supply. And in 2012 there is 22.46% in
demand and 22.51% in supply. For the fifth year 2013 it has a 24.92% in demand and 25.02% of
supply.
In totality, every year AC Computer Shop will increase of 2.46% in demand and 2.51%
in supply.
Chapter 3
Technical Feasibility
In this chapter, I will discuss the product, the manufacturing process of my business
including the plant size and production schedule. I will also discuss the machinery and
equipment and also the other computer application that I will use in the business.
In order for me to lessen my expenses, I purchase equipment in packages. I focus much in
the hardware and software. I research on how much the hardware and software will cost me,
through net surfing.
The Services
For gaming I will install popular online games like Warcraft, Counter strike, Battle
Realms, Dance Audition, and Autojam. In typing I will install original Operating System of MS
Office Professional 2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I will
have printer, Scanner, Photocopier, and Fax Machine for the Printing, Photo copying, and faxing.
AC Computer Shop will also offer other services like DVD/CD burning, Pay phone, and
Computer Repair.
Manufacturing Process
The “AC Computer Shop” will provide the product and services to the customers, and
then the customer will give income or profit to AC Computer Shop in return. The income or
profit that the customer gave in return will used to provide the product and services.
The “AC Computer Shop” will operate seven days a week. AC Computer Shop opens at
8:00 am ahead to the other competitors. This will lead my shop of being known. My goal is to
give the needs of the students and others in early manner of time.
The proposed project is going to be of 10 units of computer systems and the details of the
equipment required for the project is given below:
The project is based on Pentium-4 computer systems. Second hand systems are also
available in the market at much lower prices. The reason for using the latest system is the new
software coming in the market that requires more powerful systems which will provide better
service to the customer. The price of computer systems varies with the introduction of new
technology in the market.
Description Quantity Unit Price Total Price
Computer Cabinet 10 250 Php. 2,500.00
Table for waiting area 1 400 400.00
Air Conditioner 1 6,500 6,500.00
Mono block chair 10 230.5 2,305.00
office chair for server 1 745.75 745.75
Cabinet for the supplies 1 950 950.00
Pad Lock 2 750 1,500.00
Total Furniture and
Fixtures Cost Php. 14,900.75
Plant Location
Plant Layout
“AC Computer Shop”
Description Amount
Rent ( 2,500*12) Php. 30000.00
Construction of the Shop 3,000.00
Total Building and facility Cost Php. 33,000.00
Utilities
Description Monthly Cost Total Amount (year)
Electricity Php. 5,000.00 Php. 60,000.00
Water 117.50 1,410.00
Total Utility Cost Php. 61,410.00
Waste Disposal
AC Computer Shop can manage the waste disposal properly, because every Monday,
Wednesday, Friday and Sunday is the schedule in collecting all the garbage in barangay
Poblacion, Bocaue.
Legal Requirements
Production Cost
The details of production cost for the project are given below:
Labor Requirements