Begian Water Treatment Market - Coursework Example

Belgium Water Treatment Market Affiliation Belgium Water Treatment Market Water treatment is a venture that has been explored in an effort to improve the quality of water consumed by people. Most of the time people fail to realize the market potential that is available to water treatment as a business venture (EPA, 2012). Belgium for instance is a good water treatment market due to the overwhelming demand of treated water which is unable to be met because of the underwhelming supply which is able to meet the demand. As a business venture, water treatment is a very profitable venture which when pursued in the right way and with the right means can prove very profitable for the entrepreneurs in Belgium. This however points out to the particular emphasis and thoroughness that should be placed on the planning and implementation of an action plan of pursuing the Belgium Water Treatment Market since if done wrong it can also turn out to be a disastrous decision accompanied by very large losses. Market Demand Analysis What can be determined for sure is that the demand for treated water in Belgium is huge and the current supply has not satisfactorily met this demand (Lazarova, 2013). This is down to a lot of factors especially the pricing and marketing of the product. It is a fact that the pricing and marketing strategies for products have an overwhelming influence on the demand and consumption of the particular product. This is why it is necessary to be able to determine how best to price the water treated products especially through the development of a proper pricing strategy. This is why there is need to pick the right price as well as pricing strategy. Based on the current trends in the Belgium water treatment market, the best approach of determining the price of the water treated products by the company is through the consideration of the pricing of the already established market players. This is the best strategy because the likely scenario is if the prices the company comes up with are above those of the already established market players then it is likely that the people will not be attracted to these products. In using this as a strategy however it is very important that care is taken so as not to prevent the products from being noticed and appreciated in the market (Mekala, 2008). As relatively new players in the market using the strategy of starting with lower pricing to attract people to the products and attaching special packages and offers to the products could also be used to supplement the marketing strategy implemented (Radcliffe, 2006). The advantage with this is that it attracts the customers to the company products and once they are in the company can use other strategies to initiate clientele loyalty thereafter. The use of special packages and lowering of prices should also be done with the open mindedness that will allow the customers to adjust with ease to the price increment without affecting their loyalty to the company’s products. Supply Chain Management As a relatively new player in the Belgium water treatment market the best supply chain management approach would be to use the other smaller organizations and companies which are offering such services. This is advantageous because it allows the company to be able to penetrate the market a lot faster despite being a new entrant and this allows the company to establish itself faster (Mekala, 2008). This choice of supply chain should however be approached with caution because some of this so called smaller companies acting as middlemen often turn out to be brokers out to exploit the new entrants in the markets. As such the failure to regulate and carefully monitor such companies may not only result to the compromised businesses relationships but disastrous scandals that may hurt the company’s attempts to build a reputation. Based on this decision the company will use outsourcing as a means to get the product to the final consumer who are the consumers of the product. What the company will do is to get orders online through a website that will be established by the company. Once the orders are received the company will contract a sub-contractor in this case a smaller company whom will deliver the products and services requested for by the customers (Hester & Harrison, 2010). Using this as a means to carry out the company’s transactions allows them account for each and every activity since they are aware of all the orders made and who exactly is assigned the particular responsibility appertaining to the orders made. Outsourcing the delivery of products and services allow the company handle the problem of transportation which is covered by the company whom the outsourcing contract is awarded to. Although this may be temporary until the company is able to acquire assets of their own to be able to handle their own processes such as transportation, it is efficient in the short term goal of allowing the company to establish itself in the market (Stevens, 2006). With this covered the company is left to deal with insurance and payments of the companies to whom the outsourcing is done to. To cover this, the company covers all the incidences and issues that arise from the matters relating to the services related to their products. As such the company undertakes to cover all costs related to incidents occurring during the working hours when the companies are contracted. Distribution Channel To ensure quick establishment in the market the company will explore establishing relationships with the companies that are already established in the markets. The company therefore will seek to work with partners who have been in the Belgium water treatment market for a while and know their way around. This is because they are able to determine and know how to come up with the best ways to supply products and services offered by the company. Using this strategy will ensure that the delivery of products and services is more efficient and effective without needing the company to overspend. Although this may be temporary until the company is able to establish themselves in the market to handle their own processes such as supply and distribution of their goods and services. It is efficient since it can allow the company to achieve the making of profits over the shortest period in the markets while on the other hand allowing the company to establish itself in the market (Miller, 2006). This means that the company has effectively considered and covered all the considerations that may hamper their efforts to stamp their presence in the market. Using this distribution channel will allow the company to get their own distribution channels in place from the profit they accrue such that they are able to gradually drift to their own internal distribution mechanism that is more efficient and internally regulated. Government Regulation Concerns Belgium needs to utilize the technology that comes with treating water to reduce the challenges of water shortage and food scarcity especially, due to increase in water demand. Water treatment has been both successful and effective methods in developing a current and a sound water supply. However, the public’s health is still at risk of infection due to lack of a sound intention for treatment of water. Note that, advanced technology in treatment of wastewater is promising to come up with safer water that can be used for human consumption (Crase, 2008). This has led to the prediction of indirect potable treatment and reuse of waste water. The aim of treating waste in Belgium is to meet the growing demand of water while increasing the efficiency of water usage, which in turn, increases the chances of accomplishing the goal of potable water saving. Water treatment is the way to go because it is a developing idea which can only improve as time goes by. Water treatment and reuse guidelines and management framework that can eliminate most of the potential risks of treated water rather than relying on post-quality testing of the recycled water end product. This framework emphasizes on the assessment of the treated water system before measures to prevent and control hazards are planned and implemented (Jimenez & Asano, 2011). The aim of the assessment is to provide a comprehensive understanding of the entire system of recycled water supply from source to the endpoint or receiving environment. This way, the hazard sources can be identified early enough and preventative measures used to control the hazards. The Belgium government legislations especially with regards to the water treatment may be some of the reasons that people are scared of venturing into the businesses. Numerous legislations put in place all with the aim of securing the lives of the people sometimes hurt the business. A lot is expected of the business enterprises venturing into this field something of course that is necessary. The taxes and levies put in place by the government of Belgium hurt the business and its potential to perform exponentially due to the fact that it scares aware investors in the business (OToole et. al, 2006). Despite the genuine intentions of the government, there measures are farfetched something that warrants them to tone down a little. Three-year financial projection Include your assumptions about revenue growth and sales. Make sure to calculate the return on investment. Entry Year 1 ($) Year 2($) Year 3 ($) Capital 2,000,000 800,000 200,000 Outsourcing -800,000 -420,000 -120,000 Insurance -545,000 -300,000 -200,000 Transport -125,000 -91,000 -70,000 Permits -135,000 -52,000 -52,000 Taxes -282,000 -321,000 -400,000 Salaries -425,000 -500,000 -500,000 Sales (Goods/ Services) 1,500,000 3,705,500 5,000,000 Purchases (Assets) -365,000 -500,000 -875,000 Raw materials -1,000,000 -905,000 -1,000,000 Rent -128,000 - - TOTAL INVESTED 3,500,000 4,505,500 5,200,000 TOTAL EXPENDITURES -3,805,000 3,089,000 3,217,000 Net -305,000 1,416,500 1,983,000 Return on Investment = $(-305,000+1,416,500+1,983,000)-(2,000,000+800,000+200,000) =$ 94,500 References Crase, L. (2008). Water policy in Australia: the impact of change and uncertainty, Washington, DC: Resources for the Future. EPA, (2012). Water recycle and reuse: the environmental benefits, Water Division Region IX, 6, 11. Hester, R, E, & Harrison, R, M. (2010). Sustainable water, Cambridge: Royal Society of Chemistry. Jimenez, B, & Asano, T, (2011), Water Reuse: An International Survey of Current Practice, Issues and Needs, London: IWA Publishing. Lazarova, V, (2013), Milestones in water reuse: the best success stories, London: IWA Pub.. Mekala, G, (2008), Wastewater reuse and recycling systems a perspective into India and Australia, Colombo, Sri Lanka: International Water Management Institute. Miller, G, (2006), Integrated Concepts In Water Reuse: Managing Global Water Needs, Desalination, 187(1-3), 65-75 OToole, J, Leder, K, &Simclair, M, (2006), December 2014. Recycled water and human health effects, National Center for Biotechnology Information, Retrieved September 4, 2014, from http://www.ncbi.nlm.nih.gov/pubmed/18075621 Radcliffe, J, (2006), Future directions for water recycling in Australia, Desalination, 187(1-3), 77-87. Stevens, D, (2006), Growing crops with reclaimed wastewater, Collingwood, Vic.: CSIRO Pub. What are the potential risks associated with recycled water? 2012, March 7,Recycled Water, Retrieved September 4, 2014, from http://www.recycledwater.com.au/index.php?id=69 Read More