Business Management for Case Study on Lightwire

Discuss about the Business Management for Case Study on Lightwire.

Introduction:

The report mainly evaluates the growth prospects and scope of Lightwire organisation situated in New Zealand. Furthermore, the study effectively evaluates the overall challenges faced by the company for increasing its brand presence among potential customers. In addition, the study also helps in depicting solutions, which was used by the Lightwire company reduce overall challenges. Moreover, the study also portrays the overall result that was achieved by the Lightwire Company after implementation of adequate solutions. Furthermore, the study also depicts the overall brand awareness that was generated after the implementation of adequate marketing strategies.  

Evaluating company background:

Lightwire was founded in 2006 because of a single issue: Dr Murray Pearson could not source a reliable broadband internet connection to his rural property in the Waikato (Lightwire 2016). This led Dr Pearson to undertake a research project through the University of Waikato and to develop No 8 Wireless, which would later become Lightwire. We take our mission of connecting people and businesses with the fastest internet and best network technologies very seriously.

Challenges faced by Lightwire:

The lack of a cohesive marketing strategy meant prospective and existing customers were not aware of the extent of Lightwire’s solutions and offerings. That is, until the Waikato-based broadband provider chose to employ HGB to attain its marketing and design services. Andrew Johnson, Lightwire Director, was frustrated with the lack of uncertainty around his company’s brand. “Our logo had recently been updated but we had no clear definition of our values to communicate internally or externally,” he recalls (Lightwire 2016). As a result, marketing strategies and business objectives did not align. “Our marketing and design activities were adhoc,” he says. “There was no structure around our brand and it was all much uncoordinated (Lightwire 2016).  We wanted to find someone who we could build a relationship with and would go out of their way to understand us, and evolve with us.”

Solutions for the challenges:

Andrew sought out the services of HGB and when the marketing consultancy delivered a piece of work that exceeded his expectations, a new partnership was born. “HGB convinced us to put more emphasis on getting the marketing strategy right, followed by design work (Lightwire 2016). They helped us define our values more clearly, which meant they flowed into our marketing materials. This clarification has helped us define our identity.”

HGB now provide Lightwire with graphic design and content writing expertise, which gives the company a more professional approach to its advertising and marketing materials (Lightwire 2016). “By having HGB as an extra resource, we are able to expand our advertising to all areas of the business and build the right marketing materials to benefit our customers, our Sales Team and the rest of the company,” Andrew says.

Overall results of the solutions:

Andrew’s decision to seek assistance from HGB has proved to be a resounding success, demonstrated through growth in their rural broadband product, which consistently grew each month HGB were involved (Lightwire 2016). Furthermore, by converting rural leads and using marketing to generate sales leads, Lightwire has been able to build an upwards momentum, thus cementing their position as one of the Waikato’s leading rural broadband and internet providers. “HGB have a genuine desire to understand the business and therefore do right by us,” Andrew says. “I feel they have our backs and are part of our team.”

Future growth prospects in Decatur:

Today, Lightwire Solutions has six full-time employees and manages the computer networks for about 25 area companies. It grossed $360,000 in sales last year and is on track to exceed that this year, Starr said. Its customers include the radiology group at Decatur Hospital and the E-Center itself (Lightwire 2016). He attributes the rapid growth to a need for IT support companies in Decatur and the company’s focus on customer relations, not just technical issues. The company provides IT support for the E-Center and is being tapped to provide internet to the new Lawrence County extension in Hillsboro. They have to prove themselves.”Since its creation more than five years ago, the E-Center has helped create 385 jobs that generate more than $8 million in payroll annually, Waye calculated as of May (Lightwire 2016).

Analysing growth and cost incurred of Lightwire:

The overall growth structure of Lightwire Company has been gradually increasing from 2012, which has enabled them to make adequate investment decisions. Moreover, boost in growth can be seen in 2014, due to the implementation of increased infrastructure and marketing strategies. Solomon (2014) stated that with effective marketing strategies companies are able to boost their overall sales by attracting and creating brand awareness among potential customers. Furthermore, the overall expenditure of Lightwire Company in rural frontier is relatively lower as compared to its competitors. This upper hand mainly helps Lightwire to attain higher profits by providing competitive pricing to its customers. On the other hand, Sah and Fugh (2013) criticises that without brand promotion companies are not able to boost their capability to generate higher revenue.

Furthermore, Lightwire is able to provide its rural customer with high-speed internet services with relatively low prices, which helps the company to attract potential customers. In addition, the low cost advantage has mainly helped Lightwire Company to sustain in the competitive market. Green et al. (2012) mentioned that companies having low expenditure could mainly quote more competitive prices than its competitors, which could help in maximising their profitability.     

Suggesting future expansion or confinement to four markets for Lightwire Company:

Lightwire Company could current focus on the four markets to maintain the level of profitability from its operations. In addition, the continued supply of 20Gbps speed at competitive prices could help Lightwire Company to capture adequate market share, which could help in attain sustainable growth. In addition, the growth prospects in the four market is massive and continued operations could help Lightwire company to attract more customers and increase its customer base. Gabrielsson et al. (2012) cited that strategic development manly helps companies to increase their productivity and reduce overall cost of production. On the other hand, Kunc (2012) criticises that increased productivity without adequate increment in demand could only block capital of the company and increase its inventory cost.    

Laying out the future prospects of Lightwire:

Lightwire Company could effectively expand its operations in New Zealand and reach different parts in rural and urban areas. The expansion of coverage area could eventually help Lightwire company to attain higher profits and increase its customer base. Furthermore, the low cost incurred by the company in current operations could help in generating higher cash inflow, which might in turn help in supporting its expansion plans. Eliasson and Lundberg (2012) stated that the use of investment appraisal techniques could help companies in making adequate investment decision, which could support their expansion plans. On the other hand, Lumme et al. (2013) criticises that investment appraisal techniques mainly loses its friction during an economic crises and hampers growth prospects of the company.      

Conclusion:   

The report manly helps in portraying the effective use of marketing strategies that was implemented by Lightwire Company to increase their brand image. Furthermore, the study also depicts the use of adequate surveillance, which could be helps in increasing productivity of the workforce. Furthermore, the major challenge that was faced by the Lightwire was the absence of brand image, which eventually improved with the help of increased productivity and marketing strategies. Lastly, the novice effectively evaluates the overall significance of growth and cost, which was used by Lightwire to increase its overall brand presence.

Reference:

Eliasson, J. and Lundberg, M., 2012. Do cost–benefit analyses influence transport investment decisions? Experiences from the Swedish Transport Investment Plan 2010–21. Transport reviews, 32(1), pp.29-48.

Gabrielsson, P., Gabrielsson, M. and Seppälä, T., 2012. Marketing strategies for foreign expansion of companies originating in small and open economies: the consequences of strategic fit and performance. Journal of International Marketing, 20(2), pp.25-48.

Green, K.W., Whitten, D. and Inman, R.A., 2012. Aligning marketing strategies throughout the supply chain to enhance performance. Industrial Marketing Management, 41(6), pp.1008-1018.

Kunc, M., 2012. Teaching strategic thinking using system dynamics: lessons from a strategic development course. System Dynamics Review, 28(1), pp.28-45.

Lightwire. 2016. Rural Broadband Coverage | Lightwire | Hamilton - Waikato - NZ. Available at: https://www.lightwire.co.nz/rural-coverage-map/ [Accessed on 2 Aug. 2016].

Lumme, A., Mason, C. and Suomi, M., 2013. Informal venture capital: Investors, investments and policy issues in Finland. Springer Science & Business Media.

Sah, S. and Fugh?Berman, A., 2013. Physicians under the influence: social psychology and industry marketing strategies. The Journal of Law, Medicine & Ethics, 41(3), pp.665-672.

Solomon, M.R., 2014. Consumer behavior: Buying, having, and being. Engelwood Cliffs, NJ: prentice Hall.