Business Strategies of Cellular Providers - Term Paper Example

BUSINESS PLAN FOR CELLULAR PROVIDERS OUTLINE BUSINESS PLAN FOR TELCOM WIRELESS Executive Summary Introduction 1 Objectives 1.2 Mission 1.3 Keys to success Company Summary 2.1 Ownership of the company 2.2 Location of the company Services 3.1. Service description 3.2 Competitive Comparison 3.3 Fulfillment Market Analysis Summary 4.1 Target market segment 4.2 Market Segmentation Marketing Strategy Sales forecasts Management Team 7.1 Personnel plan Financial Plan References Executive Summary Introduction Cellular providers are exploiting the opportunity of becoming a highly distinguished market leader in the communications industry through the identification of emerging trends and incorporate them in their operations. 1.4 Objectives company growth become a leading distributor of wireless communications increase the retail outlets increase revenue brand recognition increase telemarketing efforts 1.5 Mission Cellular providers are committed to continued high level customer service through progressive retail locations and outside sales representatives. 1.6 Keys to success Timing is critical to any business and such critical success factors for the cellular providers include:- Unique combination of business knowledge by management Differentiation of products to give variety Partnerships with major industry players Company Summary Cellular providers are among the leaders in the field of wireless communications. It is a leading distributor of AT&T and Sprint PCS services and it was formed to sell and distribute wireless communication services. The management philosophy of the company is based on responsibility and mutual respect to all, hence productivity (Blackwell, 2008). 2.1 Ownership of the company The company which was initially formed as a sole proprietorship has the legal name Cellular Providers, LLC. Its majority shareholder and initiator is Nick Otieno. The company was initially capitalized by first round investors to a tune of $60,000. 2.2 Location of the company Cellular has leased an office lying in 1000 square feet of land for its offices hence efficient management of its obligations. When growth takes place as expected, more office space will be sought. Services The company has developed several services targeting both businesses and their large consumer base. At the increasing complexity of business operations corporations need a number of ways to succeed. 3.1. Service description The company has created a niche as a one stop shop for wireless services with employees with a vast experience in the industry. Their sales and distribution channels are sophisticated and successful. They maintain a variety of services and accessories. 3.2 Competitive Comparison Cellular providers are positioned as a major player in both cellular and a two way radio service market place. With the variety in competition in either extreme high or low the company will survive by employing new technology as a cutting edge. 3.3 Fulfillment The company is required to comply with various rules and regulations among the various agencies. The company is legally registered locally with operating license. In addition, it employs well qualified staff who it handles with a lot of ethics. Market Analysis Summary Market analysis is conducted so that the operations of the business remain up to date through developed insights enabling the development of practical strategies of operation. 4.1 Target market segment The company derives its sources of revenue from the sales of wireless communication services and accessories as well as co-brands and it has done well so far. 4.2 Market Segmentation Form the market analysis by the firm the major segments of their clients are personal users taking the largest share followed by General Business users and the smallest users are the specialty business users. To its clients the company provides products and services that the other competitors in the industry are not able to provide hence competitive edge for survival. (McKeever, 2002) Marketing Strategy Cellular providers have developed its sales and marketing strategies through the analysis of its internal strengths while comparing the same with the current market conditions. This has enabled the firm to formulate its sales and marketing strategies in a way that it is able to create itself a niche hence enhanced competitive advantage. The appropriate strategy has enabled the firm be the leading provider of wireless products and strategies. The company is able to create a synergistic power through critical mass and brand recognition. Its current marketing strategy is that which involves the company maintaining and expanding a broad base of clients in all the territories that it is targeting. They in addition create partnerships with well developed firms (Ryan & Hiduke, 2003). Sales forecasts 2009 2010 2011 Sales Personal User Sales $1,734,283 $4,800,000 $8,000,000 Business User Sales $419,800 $960,000 $1,920,000 Total Sales $2,154,083 $5,760,000 $9,920,000 Direct Cost of Sales 2009 2010 2011 Personal User Sales $728,399 $2,030,400 $3,400,000 Business User Sales $188,910 $406,080 $812,160 Subtotal Direct Cost of Sales $917,309 $2,436,480 $4,212,160 As from the table above, when the total sales are compared to the costs of sales a significant margin is seen depicting that the business is likely to make profits. In addition, the profitability is highly progressive yearly as the revenues and costs increase proportionally (Ryan & Hiduke, 2003). Management Team The firm has a world class management team with vast and adequate knowledge of the whole industry having done extensive research and endowed with adequate administrative skills. 7.1 Personnel plan The future needs of staff by the company calls for the company to conduct a monthly evaluation on parameters such as the factors which would determine the future staffing needs like growth, increased demand, increased future capabilities and budgeting variables (Abrams & Kleiner, 2003). 2009 2010 2011 CEO $0 $150,000 $175,000 CFO $60,000 $95,000 $110,000 HR Manager $49,992 $55,000 $60,000 Regional Manager $45,000 $50,000 $55,000 Office Manager $30,000 $35,000 $40,000 Marketing Staff $69,000 $150,000 $250,000 Retail Staff #1 $54,000 $65,000 $76,000 Retail Staff #2 $34,500 $65,000 $76,000 Retail Staff #3 $18,000 $65,000 $76,000 Retail Staff #4 $0 $65,000 $76,000 Retail Staff #5 $0 $42,500 $76,000 Retail Staff #6 $0 $30,000 $76,000 Retail Staff #7 $0 $0 $32,500 Retail Staff #8 $0 $0 $20,000 Other Personnel $31,166 $84,000 $112,000 Total People 10 16 22 Total Payroll $391,658 $951,500 $1,310,500 (Blackwell, 2008) Financial Plan The financial plan for Cellular Providers is as follows: The company needs $100,000 for increasing its market share through increasing the number of its retail stores, employing more workforces and advertising and promotion of its products. Funds will be used as follows: Use of Funds Use Amount Office Furniture and Fixtures $50,000 Marketing $10,000 Inventory $20,000 Miscellaneous (Inventory Control, Service Centers, etc.) $20,000 Total $100,000 It is important to assume that corporate tax is 30% of profits and the interest figure is estimated at 10% p.a. References Abrams, R. M., & Kleiner, E. (2003). The successful business plan: secrets & strategies (4th ed.; Deluxe binder ed.). Palto Alto, Calif.: Planning Shop. Blackwell, E. (2008). How to prepare a business plan (5th ed.). London: Kogan Page. McKeever, M. P. (2002). How to write a business plan (6th ed.). Berkeley, CA: Nolo. Ryan, J. D., & Hiduke, G. P. (2003). Small business: An entrepreneur’s businesses plan (6th ed.). Mason, Ohio: South-Western/Thomson Learning. Read More