CompUServe is an upstart computer manufacturing and retail business. We are breaking into the computer age by developing and manufacturing personal computers designed to meet the needs of customers around the world. Personal computers, also known as microcomputers, are computers with a microprocessor as its central processing unit. They are much smaller than mainframe computers. These computers fit well on desks or tables, allowing easy access for users. The personal computer is built for a single user. Monitors, keyboards, and other devices are integrated into the design. The personal computers also come with their own power supply unit, and can run on batteries as well. Printers are available as an additional option. Each individual unit has data storage/memory built in. Our mission is to produce top quality products with affordable prices, and gain the trust and respect of our customers. We want to fulfill our potential success and meet the business demands of our customers.
CompUServe has been established for nine months. We started with a sales office in Paris, France, and a web center. After three months we opened a sales office in Sao Paulo, Brazil while maintaining our Paris office and our web center. There are currently three partners; Minh Ngo, Mary Beth McEwen, and Ashley Sicilia. Minh Ngo is Company President, Mary Beth McEwen is VP of Accounting and Finance, and Ashley Sicilia is VP of Marketing. Minh Ngo began his career with ICN, building mainframe computers for ten years. He left to complete his PhD, and began to research the market for microcomputers. He has been researching and developing microcomputers for five years. Mary Beth McEwen worked as the CFO for a high tech international firm for twelve years, and has a CPA and MBA. Ashley Sicilia has been involved in computer training for five years, specializing in cutting edge technology. She also worked as the marketing director for Orange Inc. for seven years. She has her MBA from Utica College.
We are currently manufacturing three different lines of microcomputers; the Workhorse, the Mercedes, and the Traveler Series. We face competition within all of these lines. With the Workhorse, we currently dominate the market with 43% of the market share. KMK Inc. is following with 29% of market share, and Global Tech Inc., follows closely behind with 28% of market share. In the Mercedes market, we currently have 26% of the market share, Global Tech Inc., has 33%, and both KMK Inc. and KNS Business Machines have 26% of market share. We have recently broken into the market for the Traveler computer, and we are already commanding 9% of the market for this line after only one quarter of production. KNS Business Machines currently has 90% of the market share, so we see a lot of potential for this line.
Our pricing strategy is to price our computers at market value, and to offer a rebate incentive up to $250.00. We continuously update our product to meet our customers’ needs, as evidenced by our updated product line stated above. We have just recently introduced the FLYTECH computer line, and will update this product in the next quarter based on our customer’s requirements.
Our sales promotional activity includes several business newspapers and magazines. We are currently advertising our Elitetech III and our ZTech II in business newspapers, and Executive Business magazines. We are advertising our Elitetech III in general business magazines, computer magazines, and Science & Technology magazines. We are advertising our ZTech III in leading trade magazines. We continuously update our website, and have our website listed with major search engines. In the last quarter, we spent approximately $150,000 on advertising, and $160,000 on our web site. We will continue to increase our advertising budget over the