Discountech Case Study

What do you see as the pros and cons for nonprofits of engaging in large-scale earned-income ventures?
Pros:
DiscounTech is a Web-based service that distributes donated and discounted technology products, services, and support to nonprofits at the lowest possible cost to the receiving nonprofit. They offers high-demand products at the lowest possible cost by working closely with leading technology companies such as Microsoft, Cisco Systems, Symantec, and Intuit to donate or steeply discount their products especially for the nonprofit sector. They look to support parent nonprofit’s core mission, sustainability and value- added services through engaging in earning income ventures. The high costs to manufacturers for running their own in- house

Their main aim is to reach the society and one who are in need. Hence DiscounTech will help CompuMentor to keep in non-profit business so that it reaches out to more beneficiaries.
Evaluate DiscounTech’s service concept and business model. What role does effective marketing planning and execution play in ensuring continued success? What could go wrong with plans to expand sales volume and profits?
DiscounTech generates earned-income by charging an extremely low but sustainable administrative fee for each item distributed. Operating costs are kept at a minimum by directing nearly all marketing and customer transactions toward one centralized point of sale located in cyberspace on a secure e-commerce Web site and by sharing critical resources with the parent organization. DiscounTech’s business model is predicated on an innovative “triple-win” strategy. This strategy actively creates value for each of the three primary stakeholders those are receiving nonprofits, product donors, and its parent nonprofit.
The following planning strategies are important to the success of DiscounTech:
• Adding and promoting more products/vendors hence better meeting

DiscounTech represents a new product acquisition source for nonprofit organizations and also represents a new business model for the technology market, for the nonprofit sector, and for CompuMentor itself. So there are different factors associated with the newness of the program those are Economic Impact factor and Supplier-Related factor.
In order to offset economic factor, new corporate and foundation financial support options should be explored. Varieties of other sources are offering free or discounted technologies to nonprofits; hence strong emphasis should be given to potential competitors. DiscounTech needs to manage well with the specific channel for each products and service to potential customers. Rebecca Masisak should find more effective ways and channels to advertise DiscounTech. To strengthen the benefit to participating corporations and for maximum benefit to nonprofits, bundling and packaging opportunities should be actively