Orange Mobile Communications Business - Term Paper Example

The of Organization: Orange Mobile Communications Bus 115 Abdulziz Abdulla Final Business Plan Dr. Blue Table of Contents Executive Summary 2 Section One – Business Description 3 Mission Statement 4 Company Vision 4 Business Goals and Objectives 5 Description of the Proposed Form of Organization 5 Rationalization for the Organizational Form Selected For Orange Mobile Communications 6 Section Two – Industry and Market Analysis 6 Target Market Segment 7 Market Growth 7 Risk Elements due to Uncontrollable Variables 8 Section Three – Competitive Analysis 8 Primary Competitors 8 Secondary Competitors 9 Section Four – Marketing Strategy 9 Section Five – Human Resource Requirements 11 Section Six – Operational Issues 11 Section Seven – Financial Projections 12 Works Cited 15 Executive Summary Orange Mobile Communications is taking advantage of an opportunity to become a highly renowned and eminent brand in the industry of mobile phones. It is the goal of the company to get established as the leading distributor of mobile phones in the United States market. In order to achieve this goal, Orange’s primary target will be to identify the market scenarios and trends following the future and integrate them into its company’s core strategies. The company is further committed to quickly respond to technological changes, provide higher degree of quality services and continue to invest in understanding its customers’ needs. Furthermore, the company’s integrated sales team is highly experienced and ensures providing world class services to the clients and customers. In the world of globalization the company is looking forward towards expanding its base to reach out to all the communities around the US and the world. The market analysis provides a clear picture about the emerging industry throughout the world. Mobile phones have become an important medium of communication with variety of features incorporated within. The industry is one of the largest profitable segments amongst all other necessity products. Orange Mobile Communication’s prime objective is to provide customers, especially the younger generation with technologies that have not been introduced by any other competitor. Its focus towards customers will ensure better understanding of the buying pattern. This will enable the company in minimizing stocks and manufacture those products that are highly in demand. Moreover, the external supply chain will ensure effective deliverables within the prescribed period. Section One – Business Description Telecom Industry is booming in recent times. The product has changed its category from luxury to necessity goods due to the convenience it provides to the users. The effect of internationalization has therefore, ensured many big players to launch unique features in order to increase the sales of the mobile phones. The employees are committed towards achieving the goals of the organizations and value its principles for competitive market growth and sustainability. Mission Statement The company, Orange Mobile Communications is committed towards providing high quality products with unique features at affordable prices. Furthermore, it is dedicated in providing high level services to its customers and clients by ensuring convenient locations of retail stores and efficient and effective solutions. Orange Mobile Communications is determined in becoming the largest distributor of mobile phones in the United States. Through its dedicated after-sales services and brand loyalty the management believes that Orange Mobile Communications will be the leading seller of cellular phones in the years to come. Company Vision Orange is dedicated in introducing sophisticated and innovative technologies that will create fresh markets, enhance people’s lifestyles and support Orange to become the leader in digital industry. Furthermore, the company wishes to contribute to the beginning of a better world with providing richer experiences for the future generation. As part of the vision, Orange has developed strategies to expand its market in the US with reaching its revenue to US $100 billion by 2020. Furthermore, the company is extremely devoted to explore new provinces and increase its customer base with creative features that have not been launched by any other company in this industry. Business Goals and Objectives The main objective of Orange Mobile Communications is the growth of the company by increasing the number of retail outlets in and around the US. Furthermore, the company is focused in increasing its revenue with the launch of its uniquely featured mobile handset. With the intention of increasing its revenue, the company is committed in providing efficient services to its valued customers and clients by adopting effective marketing strategies. Moreover, the company is determined in increasing its market share by reaching out to a larger customer base and promoting its brand through community developments. Description of the Proposed Form of Organization The company, Orange Mobile Communications will initially commence as a sole proprietorship firm with the intention of getting listed in the US Stock Exchange. It plans to recruit 10 employees in the initial stages with 1 Director and 2 Managers each for marketing and finance departments. All the 10 employees will be responsible for marketing of the products and providing after-sales service to its customers. The company intends to hire an external supply chain partner who will be responsible for supplying raw materials and making distribution of finished goods. The business partner will be hired in a contractual basis with the provisions of renewing the contract annually. Rationalization for the Organizational Form Selected For Orange Mobile Communications The company intends to start as a sole proprietorship firm with the owner himself being the Chairman. As a sole proprietorship company, major decisions will be taken by the Chairman after discussing with the Director and Managers. Probabilities of rising conflicts within the start- up organization will be minimal as presence of Decision Making Units (DMUs) is less. Furthermore, sole proprietorship form of business can be formed with minimum formalities in which the owner is held responsible for all its liabilities and assets. Section Two – Industry and Market Analysis The smartphone market is immensely growing and has not been inundated, with only 54.9% percent of the US owners as of June, 2012. Thus, the market analysis reveals that 45% of citizens are still without smartphones which provide ample opportunities for new entrants in this segment. Furthermore, it has been observed that android captured majority of the mobile share market with 44% users in 2010. Market researchers expect a rise of 48% android phones within 2017, providing other players the opportunity of introducing creative features and increase their share in the market (Weiss, “Android Takes Half of US Smartphone Market”). Target Market Segment Orange’s revenue sources will be generated through the sale of mobile phones primarily targeted to the young generation. The younger generations of the US are more inclined towards social networking and provide prime importance to the feature being installed in their mobile phone devices. Preferences are given to fast connectivity, attractive looks and high-end features available with the mobile phones. Market Growth Over the previous five years, the market growth of the US in the mobile segment has shown a significant rise. Apple Inc had launched ‘iPhone’ in the year 2007, being the first to introduce touch-based user interface. Surprisingly, the iPhone became immediately popular in the corporate world posing threats to policy makers of enterprises regarding data theft. Although, the features introduced were first in its kind, higher prices were the major concerns. Furthermore, the economic downturn decreased the sale of Apple products between 2008 and 2010 due to job loss or financial crisis. However, with the economy slowly recovering in 2011 and availability of cheap mobile phones offered by Samsung and other great players, the sale increased steeply. While Apple grew its sales approximately by 89% last year, Samsung’s sales growth surpassed its own records by growing over 267% in the same year. This surprising growth was achieved by the introduction of android and owing to offering focus on comparatively lower prices (Maisto, “iPhone Has Earned Apple $150 Billion Over Last Five Years”). Risk Elements due to Uncontrollable Variables Although, the market has grown immensely in the past one year due to the introduction of android phones, however, economic downturn can be one of the causes for declining sales. The buying behaviors of customers are likely to change due to decreased sources of income. Furthermore, political transformation can bring about changes in the legal structures which can impose higher duties in import and exports. In addition, tastes and preferences of customers are not constant which can decrease the demand of certain mobile phone products. Section Three – Competitive Analysis The increasing growth of mobile phone industry and its necessity in the human lives have made many recognized brands to compete against each other. Researchers of the market have revealed the statistical growth that has led to new entrants in this segment. Furthermore, the higher volume of sales and its profit margin are the main reasons for attracting big players in this industry. Primary Competitors Statistics reveal that Apple and Samsung are two of the primary competitors dominating the market. Apple’s market share grew inevitably because of the innovative and creative mind set of its leaders. The “i” series introduced by Apple were the first in its class which were owned by many customers. However, Samsung’s market share has risen simultaneously after it launched android systems in the market. Nokia is also not far-off behind and provides healthy competition to the big players in the market after it introduced new models of mobile phones. Secondary Competitors In addition to the primary competitors there are numerous secondary or small players prevailing in the market of the US. Motorola, T-Mobile, Virgin Mobile USA are three of the small players thriving to increase its market share. They are constantly working with their creative teams for launching innovative products that will attract the customers. The primary and secondary competitors have been present in the market for a considerable period due to which they are aware about the market trend and buying patterns of the customers. Furthermore, the companies have been recognized by the customers and have developed a loyal customer base in and around the US. Regardless of these competitive edges, Orange Mobile Communications is determined to develop a significant market share with the line of products it has planned to introduce. Section Four – Marketing Strategy The market analysis and emerging trends have revealed that in order to grab a considerable market share, younger generation should be the prime target. Moreover, it has been analyzed that attractiveness and unique features are the most desired by younger generations. The company will establish its sales strategy by completely focusing on the customers. Orange will introduce products based on the choices of the customers. The overall marketing plan for Orange Mobile Communications is based on the following elements: Product: Orange has decided to have a unique line of products which has not been introduced in the market. It plans to incorporate a feature known as “speak to surf” which will enable the user to speak on the phone for the browser intended to access. Furthermore, the handset comes with a unique security system that recognizes the owner’s voice to access the phone. Moreover, the ultra-slim structure with anti slip cabinets will be added features to attract the younger generation. Price: In comparison to the recognition of the brand with the other competitors, initially, Orange has decided to launch the new products at an affordable price that will enable teenagers to buy the product. In addition, the company will provide free accessories for the convenience of the consumers, such as Bluetooth headset, car adapters and external battery chargers. Thus, the company hopes that the free accessories will lure customers in owning Orange’s mobile phones. Promotion: Although, the prevalent competitors spend huge amount in promoting their products through print media, television advertisements and other big sponsors, however, Orange is accustomed in investing lesser capital for promotion compared to its rivals. In the initial stages, the company has decided to spread the launching news through social networking sites. Furthermore, it has planned to provide hoarding and banners in popular places that are common for gathering. The company believes that word-of-mouth will also be helpful in promoting their products among the friends and families. Place: Initially, the company has planned to set up four retail outlets at familiar places for accessing larger customer base. Furthermore, for bulk purchases, the company offers free shipment and delivery to the interested clients or customers. The outlets must be well connected to all parts of the city and accessible to all communities. Section Five – Human Resource Requirements Initially, Orange has decided to employ 10 marketing staffs who are responsible for related field works. One Director and two managers will be employed preferably experienced in the same industry. The Marketing Manager should have an MBA degree with specialization in marketing, consecutively, Finance Manager’s specialization should be in Finance. The following is the structure of the organizational hierarchy related to Human Resource Management. Section Six – Operational Issues The owner has decided to rent the outlets located in prime locations spread across the US cities. However, the office for operations will be owned in one of the renowned complexes of New York. Similar to the contractual supply chain, the Information Technology Department will also be hired from external resources. The department’s remuneration will be based on contracts which will be renewed annually. Modern software and hardware technologies will be employed by the company for effective maintaining of records. Furthermore, fire safety materials will be installed to prevent massive loss to the office infrastructure. Section Seven – Financial Projections Orange Mobile Communications has planned to invest US$100,000 initially to start up its business. Majority of the invested amount will be towards manufacturing mobile phones, whereas, certain amount will be towards infrastructure development, marketing and promotional activities among others. Projected Balance Sheet for the Year Ended 2013 Projected Income Statement 2012-2013 Income Statement Jan-Mar US $ Apr-Jun US $ Jul-Sept US $ Oct-Dec US $ Cash Sales 50,000 75,000 96,000 119,000 Credit Sales 10,000 30,000 55,000 70,000 Total Sales (A) 60,000 105,000 151,000 189,000 Operating Expenses 2,000 2,000 2,000 2,000 Salaries 75,000 75,000 75,000 75,000 Insurance 1,000 1,000 1,000 1,000 Total Expenses (B) 78,000 78,000 78,000 78,000 Profit Before Tax (A-B) (18,000) 27,000 73,000 111,000 Projected Cash Flow Statement 2013 Sources of Cash Jan-Mar US $ Apr-Jun US $ Jul-Sept US $ Oct-Dec US $ Cash Sales 50,000 75,000 96,000 119,000 Creditors 7,000 22,000 50,000 68,000 New Investments Nil Nil 10,000 30,000 Total Cash Inflow (A) 57,000 97,000 156,000 217,000 Other Expenditures 1,000 1,500 2,000 3,000 Purchase Widgets Nil 3,000 6,000 10,000 Suppliers Pay 27,000 30,000 80,000 130,000 Total Cash Outflow (B) 28,000 34,500 88,000 143,000 Cash Balance (A-B) 29,000 62,500 68,000 74,000 Works Cited Maisto, Michelle. iPhone Has Earned Apple $150 Billion Over Last Five Years: Report. eWeek, 2012. Web. 18 Jul. 2012. Weiss, Todd R. Android Takes Half of US Smartphone Market. News, 2012. Web. 18 Jul. 2012. Read More