DBS Inc in People and Media - Essay Example

The current Korean market is undergoing a period of transition from analog to HD video and IPTV. Therefore, demand for HD-related products will be higher at this time than at any earlier period. Also, we believe that selling items online has its advantages over selling in person; specialists, enthusiasts, and well-informed customers can access the products’ specifications and research them easily through corresponding company websites.

In the Korean market, there are very few companies that sell audio/video equipment online, and most of these remain financially weak with low market credibility. Since the market lacks a leading enterprise that can supply both goods and services related to professional audio/video equipment, there is presently a great opportunity for DBS and B&H to secure the premier position through demonstrated high-quality services and supply abilities. Finally, DBS’ past experience in the TV and radio industries prepares it well for a long-term role in this new endeavor, while its knowledge of Korean markets can facilitate the formation of well-trained human resources for product services.

Purpose of Business

• Sale of professional video/audio products and consumer products in Korea.
• Increase B&H’s earnings through items sold.
• Supply Korean products to B&H.
• Develop an efficient Warranty Service.
• Bridge communications and/or trade with other Asian countries for B&H.

Business Environment

• Total sales of the Korean broadcasting market including non-profit earnings have increased from $7,700,000,000 in 2004 to $8,635,200,000 in 2005. Moreover, in 2006, it increased by 12.6 % ($9,719,900,000) from 2005.
• The TV industry, including terrestrial, cable, satellite, and local network productions, will expand from $343,400,000 in 2006 to 413,400,000 in 2009.

            Source- Korean Broadcasting Institute <www.kbi.re.kr>

Business Target

Supply, install, and service professional video and audio products for:

• KBS, a major broadcasting company, owns 25 local branches.
• MBC, a major broadcasting company, has 20 local branches.
• SBS, another major broadcasting company.
• 12 local commercial TV companies.
• 33 religious TV companies.
• 45 local CATVs.
• 120 CATV post-productions.
• Individual UCC producers and independent internet TV companies.
• Professional audio consumers.
• Churches, schools, governments, and show-business companies.

Business Structure

• Online shopping mall.
•  
• DBS Production.
• 20-30 trained employees.

Projected Sales

• $1,000,000 in sales at the end of 1st year.
• $1,500,000 in sales at the end of 2nd year.
• $3,000,000 in sales at the end of 3rd year.

Competition

 DVCAM

• + Prior occupation in the market.
• + Abundant experience in system installation.
• + Existing customers’ loyalty.
• - Unorganized online website.
• - Lacking support from foreign companies.
• - Insecure financial status.

SWOT Analysis

Opportunities

Threats

Strength

l  Support of B&H

l  High credentials

l  Past experience

l  Geographical coverage

l  Few competitors

l  Industry boom

l  Transition period to digital technologies

Weakness

l  Distance from capital

l  Late arrival

l  High marketing cost

l  Recession

l  Price war

l  Exchange rate

DBS Inc.

Management

Name

Position

Age

Hee Sun Kim

President

55

Young Bae Seo

Vice President

45

Current Financial Status

Total Capital

$6,000,0000 (in cash)

$20,000,000 (real estate)

Total Liabilities

$0

Assets

DBS office building (under construction)

DBS ENC- Technical Center

DBS Production

Conclusion

In consideration of the above factors, it can be said that the Korean markets for professional audio/video equipment shall expand and the demands of the regular consumers will also increase. At this opportune moment, cooperation between B&H and DBS not only bears the promise of vast earnings but holds the potential of spreading out to other developing Asian countries. We are convinced our proposed plan shall prove mutually beneficial and rewarding.

If you have any questions, please contact:

Hee Sun Kim

President

DBS Production