Transport Development Corporation

934 Words4 Pages
Technical Data Business Plan Answer 1 Pros: 1. The fixed income securities market has been growing rapidly over the past ten years with higher price volatility, increasing interest rate, increased volume and a large number of participants. 2. Since most of the fixed income issues are in large denominations by dominant market participants, they would be willing to pay a reasonable price for up-to-date information and market data. 3. There is dearth of reliable market information at competitive prices. Thus exploiting this significant demand-supply gap would prove to be a highly rewarding opportunity. 4. Technical Data Corp had the opportunity to start publishing their data with the Telerate Systems Incorporated which had 3900 separate keyboards installed worldwide as of August 1980 and had planned further expansion. Technical Data Corp could surely end up getting a large boost and benefitting from its wide customer base. 5. The competition is scattered and provides its services at extremely high rates. Moreover, Technical Data Corp enjoyed an advantage over its competition in the sense that it provided a very targeted and customer friendly approach towards data provision. 6. The management’s experience, expertise and reputation in this field would help them capture a large chunk of the market. 7. Parker already has a strong base, the necessary software and historical data, having an estimated fair market value of $50,000. Cons: There may be a certain amount of scepticism regarding the quality of information provided by Technical Data Corp, as it offering the information at very low prices in comparison to its competitors. One cannot help but wonder how Parker is managing to source the information at such low costs. Conclusion: I believe that this is a good business model especially given the current market circumstances. Even though there are
Open Document