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Google Bike - Essay Example

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Name Instructor Course Date Good ride business plan Executive Summary Good ride is a Dallas based company determined to provide quality motor bike and vehicle spare parts. The company’s management team and its board members propose the company to stock Google bikes at affordable prices…
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Google Bike
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"Google Bike"

Download file to see previous pages Our current market research indicates that 20 inch wheel diameter is not comfortable with the majority of the rides; hence we will stoke bikes with wider wheel diameter to beat our competitors. Further, more our bikes will cost relatively low for the first years to attract more customers as we brand our company. Market Research And Analysis Our store will be located in Dallas and California among other mountainous regions. This would help attract more customers. Our team conducted a comprehensive market research and the findings will be applied in making major decisions. The company will stock bikes with wider diameter wheels for good speed and comfort. Currently, our competitors are stocking a 20 inch diameter wheel, and this is not appreciated by the customers. Customers complain of carrying huge amount of cash to such stores in major parts of the US, hence, will incorporate Visa services to enable easy and comfortable transactions. A good number of US citizens suffer from obesity and respiratory complications due to lack sufficient exercise. Google bikes would provide them a good opportunity to burn some calories and maintain good health. The majority of US citizens prefers cycling or walking to work places due to several reasons like expensive fuel, environmental conservation strategy and enjoying the natural weather among others, hence the company will stock quality Google bikes with comfortable design at affordable prices to workers or individual who prefer cycling to driving to work places (Abrams, 216). There is an increasing trend of collages establishment, this would mean increased number of students who prefer cycling to school, thus increased demand or market. Our competitors are prone of running out of stock mores o during summer or other holidays. Our company will adopt a supply chain that ensures that orders are made in good time to limit chances of running out of stock, customers are always turned away whenever they visit any store only to realize their preferred item is out of stock. Our biggest competitor will be Mashable Company whose bikes is expensive and uncomfortable, since they come in 20 inch wheel diameter. Financial Plan The latest Good ride’s financial report indicates that the company made a net profit of about $ 3 billion in the year 2012, from the sales of spare parts. To venture into Google bike business, it is estimated that a total of $ 2.5 million will be needed. The company financial team has done the financial analysis and ascertained that the company will employ both equity and debit capital. The equity capital will see the company raise about $ 1.5 million from its asset liquidification or from previous profits. The debit capital would see the company seek about $ 1.0 million loan from regional or national banks among other loaning institutions. It is estimated that the company is likely to make an annual net profit of $2.0 billion from the sale of Google bikes. The company will use 0.005% of the profit to settle the loan, however, the company will seek more loans to further expand the business while repaying the current loan, but all this will depend on the customers’ turn out. Economics Of The Business Currently, there is a good demand of Google bikes from the increasing trend of colleges’ establishment, rise in fuel prices and increase in outdoor activities like picnic, bike riding and bike rides among others. Good ride would take advantage of its competitors’ ...Download file to see next pagesRead More
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