The Business Concept - the Problem and Solution, Business Opportunity Assessment, and Business Model Strategy - Essay Example

Business Concept Student’s name: Institution: Instructor: Subject: Business Concept 1.0 The Business Concept: The Problem and solution Electricity has been cited as one of the key accelerator of economic growth in most countries (Sarah & Mary, 2005). Most of the countries that have been enjoying high GDP have had enough and reliable supply of electricity. On the other hand, countries that do not have adequate supply of electric energy experiences low economic growth. According to Kaiser (2001), the main hindrance to supply of electricity in most poor countries is development of power infrastructures. Power structures require highly level of expertise and large amount of resources to make the entire supply system successful. Putting up of these infrastructures in an organized manner definitely makes the electricity supply and maintenance very expensive. This has been cited as one reason why poor countries are unable to have power supplied to their homes. Further research shows that most electric power consumers are small scale users. About 80 % of the consumers of electric power all over the world use it for lighting and internal house chores while the rest percentage uses power for industrial application (Cyrus, 2003). Small scale power users use power for lighting and powering low power consuming devices like lights, computers, T.Vs among others. Most of these consumers are interested in low amount of power that is able to meet their domestic needs (Gerand, 1971). However, in many countries, majority of power producing and selling companies use expensive infrastructure that requires high level of organization and management. The companies that specialize in selling this power have one or multiple source of power then through power lines, they supply to their customers. The main problem experienced in power supply is maintenance of these infrastructures. However this problem can be solved through use of renewable and independent power systems such as solar energy. Implementation of domestic solar power systems requires lower level of skills in maintenance when compared to advanced commercial power systems such as hydroelectric power (Martin & Heywood, 2009). According to Theraja (1998), a solar power system only requires a solar panel and a battery in order to harvest power. The solar panel converts light energy to electric energy. Advanced solar panels are able to harvest light energy even when there is low amount of light. Consequently, the panels can be reliable even during rainy seasons or when the sun does not appear during the day. A battery is an electrical device that stores electric energy and only recharges when the battery is in use (Wallington & Edward, 2009). Advanced batteries such as rechargeable alkaline batteries have very high efficiency of recharging and can carry charge for many years without losing charge or getting damaged. Therefore, by ensuring that a good solar system and a good battery are properly installed in the premises of the customer, we can guarantee this customer safe and cheap electric power. 2.0 Business Opportunity Assessment 2.1. Market, Customer and Industry In the current modern world, power is one of the key components that determine the livelihood of the citizens. However, less than 60 % of the world population has access to electricity, mainly due to the lack of cheap system to acquire electric power. Most homesteads all over the world rely on use of kerosene or wood as their supply of light at night. These sources of light are accompanied by the production of smoke which is hazardous to the health of the people. These people are unable to have access to electricity because they either cannot afford the commercial power offered by huge power companies through the power grids or the power companies have been unable to develop their power lines to reach people in these areas. This is accelerated by the fact that there has been negligence in looking for alternative source of power such as solar or wind energy which would greatly reduce the overall cost. Solar energy is one way that can guarantee people efficient, reliable and clean source of light during the nights. There is also a wide market of solar energy for areas that are near to power lines supplied by power generating and distributing companies. Most of these companies have high connection rates while power bills are paid on monthly basis. Solar energy on the other hand only requires installation of the power system once while maintenance of the battery and solar panel is easier and cheaper (Peter, 2010). In some situations also, the power commercial power is often disconnected during maintenance or may be affected in a way that will inconvenience the customer. The population in these areas would require alternative sources of energy when such situation arises. The main market for our products shall be those requiring safe and reliable amount of power for home and office use. Most offices relies using computers to store and process data. The power consumed by computers and their accessories ranges from 100 to 1000 Watts (Benson, 2002). This can be adequately supplied through the solar system. Solar energy can be used for lighting, operating electrical devices at home such as television, radio, iron, fridge among others. Therefore, by the fact that our system is cheaper to install and maintain, many low power consuming customers will find the power more reliable. The electric power industry is one that has experienced low growth in many countries when compared to other industries. The main drivers in the industry are few expertise in the electrical engineering field. Hydroelectric and geothermal power productions have been the main source of electric power from for many years. This is mainly due to the fact that these are sources of power that can be used for industrial application. Nuclear energy production is another mean that produces large amount of power for a short period of time. However there is high level of management required in the production of this power since it can result to disastrous situations if it is not properly managed. Wind power energy can only be produced in areas that are windy. This form of energy is often not very reliable because it cannot guarantee reliable source of energy. You may not be sure when there will be enough weed to generate power. Additionally, the mechanical systems required to harvest this form of energy are expensive. In general, electric energy industry has large market though the means of production are different. A cheap and efficient source of power would definitely be welcomed by the customers in this field. Solar energy is one source that can be managed to do this. 2.2. Product/ Services The product that we are selling is a solar power system that is fully installed. The customers are interested in having power. Our product will compose of an efficient solar panel to harvest power, a battery for storage of the harvested power and electrical wiring in the premises that the system is intended to work. We shall also offer services of maintaining the entire system to our customers for a period of time. 2.3 Organization and Management team Synthia (2002) observes that proper organization and management structure is the is very important in making any venture a success. The company shall be managed through three departments; marketing department, operations department and quality and control department. The marketing department would be responsible for marketing our products to the customer and making them aware of what we are capable of doing in terms of power supplies and accessories. The operations department will be responsible for carrying out installations and maintenance of our products in the premises of the customer. The quality control department shall coordinate the two departments through ensuring that we meet the needs of the customer while using the least cost. 3. Business Model Strategy The business shall start with three offices which shall manage all the operations of the venture. The operations department shall have a store where all the components used for installation shall be kept. It shall be equipped with alkaline batteries, solar panels wiring equipment and accessories. The driver of this department shall be ensuring that it provides quality services to the customer. The rate of expansion of any business heavily depends on the kind of marketing (Synthia, Larry & Romulo, 2003). Marketing includes advertisements, promotions and anything else that will contribute to the sales of services or goods to the customer. To market the solar panel electrical system, the marketing department shall consist of creative markets in the industry capable of marketing the products of the company. The expansion strategy shall be focus on opening different branches at different regions where our customers can easily get access to our product. The coordination of the two departments shall be very critical in ensuring the success of the venture. The customers shall judge the company based on the quality of the products and service delivered. To ensure that there is proper coordination, the quality control department shall oversee the operations of all the units of the different departments ensuring that they meet the customers’ expectations. This office shall direct the other departments on how they should collectively carry out their responsibilities in order to ensure the customers trust their products and operations. In the expansion strategy, different branches will need to be opened at different regions and countries. The quality and control department shall be responsible of ensuring there is proper product and service delivery in all the region and branches. References Benson, N. (2002). Alternative sources of Electric Energy, 3-12. Cyrus, L (2003). Breaking innovations, Energy Management, 7 (2), 14-50. Gerand, A. (1971). Entrepreneurship, Manila: Cardinal Book Store Kaiser, U. (2001). Product innovation and product innovation marketing, Theory and micro econometric evidence, European Economic Research, 5 (24), 1-13. Martin, & Heywood, K (2009). Growth in the electrical supply systems, Journal of electrical engineering, 5(4), 414-516. Peter, K. (2010). Solar Energy, Manila: Cardinal Book Store Sarah . C., & Mary, J. (2005). Marketing of Service Products, International Journal of Marketing, 5 (24), 1-13. Synthia, C., Larry, D., & Romulo, R. (2003). Developing new Ideas: Factors and Influences, Entrepreneurship, 5 (2), 4-50. Synthia, P (2012). Business Management, India: Quantil publisher Theraja, A, & Theraja B. (1998). Electrical Technology, London: S Chad & Campany Ltd Wallington S. C., & Edward, J. (2009). Designs and Implementation of Electrical Systems, Journal on Electrical Energy, 3 (4), 111-113. Read More