, both of which are very expensive to develop and / or obtain. Many startup IT companies begin their business plan with their exit strategy, knowing or hoping that they will be purchased by a large organization such as Microsoft or one of the big six consulting firms. Because there are low barriers to exit, acquisition provides an easy and profitable market exit for the company's principles. Company Strategy EBM is currently looking for a secure strategy in a rapidly changing industry. They are trying to adjust their profit margin accordingly to remain competitive in their contestable market. They will be more dependent on customer loyalty then ever before. If they intend to survive past the point of zero economic profit in the price-searches market curve, their new corporate strategy should force them to operate more efficiently, cater to the preferences of their clients, and develop better/ more improved products at a lower cost. They must also evaluate and implement the type of corporate structure and size that will maximize economic efficiency. Because entry is low and activity is high, new competition will continually appearing. These new rivals will attempt to increase their market share. This can only be accomplished by taking clients away from other firms. Therefore EBM must be committed to customer satisfaction and should look to develop an incentive program for existing clients. EBM should implement an incentive program that will entice their existing clientele to buy IT related goods and services exclusively from them. For example, discounts and added services would be available to customers whose purchases exceed a predetermined amount of sales annually. A referral program for clients that recommend new or potential clients to EBM would be an example of another idea. EBM should look to cater to the specific needs of their customers. This can be done in several different areas. They currently provide that extra service and su...
