Business and Product Development Proposal by gty33410

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									                     Business and Product Development Proposal




November 19, 2006
Team Mullet
Mike Herald
Desada Lika
Peter Mahoney
Mark Matheson
Alex Zabolotnikova
Table of Contents

Scope..............................................................2
Outline............................................................4
Timeline and Team Member Tasks ...............7
References......................................................8




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Scope:
         The overall scope of our business plan will be the marketing and sale of a digital device.

The device is a technology tool that will combine all the hand-held devices currently used into

one streamlined and efficient business tool. The “Mullet” as it is currently called will integrate

the features currently offered by cell phones, blackberries, palm pilots, iPods, and other small

electronic devices. The device will also run on a window’s based platform to allow for

integration with current Microsoft office tools like outlook, excel, and word. All though all the

features offered in these products may not be accessible. Further our company will offer software

which will help to quickly sync the Mullet with the user’s computer and other digital devices.

Eventually we might offer consulting services to large corporations to help integrate each

company’s specific software applications with the Mullet. The group will identify the primary

and secondary markets of the company’s product and services, as well as establish pricing of the

product.

         Our teams product will fall under the larger industry of hand held digital devices. Our

product will compete with products from sub-industries of the hand held device industry. These

many sub-industries include the cell phone industry, PDA industry, and personal entertainment

device industry. In order to develop a sound marketing and business plan we will need to identify

the best products of these sub-industries and find ways to achieve parity with the top sellers from

each of the industries this will create the largest market demand for our product.

         The group will also analyze the fundamental business requirements needed to start a

business of this type. As such we will consider such aspects of corporate structure, financing,

management, and the types of physical assets we will need to acquire in order to successfully

develop, and sell a product in an efficient manner. Due to the nature of the product we will also

consider creating strategic alliances with cell phone companies to distribute the product to



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consumers as effectively as possible through a familiar method. The group will also looking at

creating alliances with other technology companies like Microsoft to help integrate the product

with their software products.

       Our project will consider the cost of and the resources we will need in order to initially

create and develop the product. However, for this project we will not consider the actual

development of the product as our team members do not have the technical skills required to

fully understand the underlying technology and methods that would be necessary to create the

product. In order to make sure development is somewhat feasible we will consider technologies

currently being used in the market place as benchmarks to determine the current ability of

technology available.

       The business plan for our product will enable us to see the potential feasibility for such a

product. The Mullet idea was created by our group because as future business professionals this

is the type of device our team members would like to have with us at all times. The creation of

this business plan will give our group insight into the types of decisions and business analysis

that occurs in the working world when considering new product. The last thing we hope to gain

is to learn is how our product and business plan would have worked. This might be possible

because it is the consensus of this group that a product like the Mullet will be introduced to the

market within the next five years.




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Outline:

     1. Introduction
             a. Product
                      i. Features, Size, and how it will compete
             b. Services
                      i. Software- To integrate the product with other digital devices in use by
                         consumers.
                     ii. Consulting with large corporations in order to use device with custom
                         software applications.
     2. Corporate Organization
             a. Mission and Vision
                      i. To create products and services which help professionals work and play
                         more efficiently
             b. Management and Staff
                      i. Recruiting experienced industry professionals to develop product
                     ii. Bring in recent college graduates for low cost and to use creativity to
                         design product they would use. As they are representatives of target
                         market
                    iii. Compensation through stock options and wages
             c. Location
                      i. Locate each business function in area that is most relevant to industry and
                         cost effective.
1.   Research and Development- In California close to other tech industry jobs
2.   Production- Done in manufacturing facilities outside U.S to help with cost savings
             d. Financing
                      i. Company will require a substantial amount of initial capital in order to be
                         successful.
1.   Debt Financing- Borrowing from both banks and potentially bond issuance
2.   Stock Issue- Offer shares of the company to investors
             e. Asset Management
                      i. Intellectual Property Management- Attempt to create and maintain
                         intellectual property through information systems and by obtaining patents
                         on product to prevent copying by competitors.
     3. Business Level Strategy
             a. Creating a Competitive Advantage
                      i. Differentiation
1.   The product will combine the features of many of the current available digital devices which
     will create differentiation. To increase the level of differentiation the software provided with
     the device will help to integrate the product with current devices especially personal
     computers. Also by offering consulting services to make the product integrate with
     corporations custom applications will help to increase the market and help sustain the
     differentiation level.
                     ii. Cost
1.   In order to help create advantage or company will also attempt to create a cost advantages.
     On a corporate level cost will be reduced by avoiding spending on lavish corporate offices or



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     other non- essential business items. Further when possible used equipment and supplies will
     be purchased and used to lower overhead cost. Also to lower cost inventory management
     systems and modern supply chain technology methods will be used. The company will not
     however try to overly reduce cost in the marketing, sales, or service section of the business.
     4. Market
            a. Competitive Environment
                     i. Identify competing products and their features and determine how we will
                        compete
1.   Cell Phones
2.   Blackberry/ Palm devices
3.   Personal entertainment devices
4.   Products in development by other players in and outside of the industry
            b. Marketing
                     i. Primary Consumers
1.   Business Professionals- Focus on that the device will help them to work more efficiently
     while on the go, but also be able to have the ability to relax and enjoy the device while
     eliminating baggage.
2.   Corporations- Make employees more efficient by allowing them to work while on the go.
     Further by offering entertainment features the device is more likely to be used off-work hours
     so employee can be contacted during non-business hours.
                    ii. Secondary Consumers
1.   Tech Gadget Consumers- Consumers who have the money to buy the newest and greatest
     products.
2.   Others
            c. Cell Phone Companies
                     i. In order to sell the phone and offer cell service it will be necessary to
                        manage relationships with current cell phone service providers. Potential
                        to follow the model developed by the introduction of the RAZR where
                        initially only offered by one major carrier.
     5. Other Markets
            a. Digital Strategy
                     i. Web Marketing- Our main target market is busy business professionals, so
                        advertising on business (ex. cnbc.com) websites would be an effective
                        way to introduce the product. As well putting ads on electronic store web-
                        sites would also be beneficial, so that we could compete with the other
                        major competitors in the industry, like palm pilots. Lastly, primary target
                        market is business people who travel a lot as well as provide people with
                        different media features. Advertising on airline websites and other travel
                        pages like Expedia, could also be very effective.
                    ii. Software updates- Due to the fact that software updates can only be used
                        by people who have purchased the mullet, the company web-page would
                        be the place where we would need to provide new features and downloads.
                        These could either be purchased or offered free of charge depending upon
                        the nature of the upgrade or feature.
            b. International Strategy




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                i. Selling the phone in foreign markets- The mullet will best succeed using a
                   global strategy for a couple of reasons. First, the mullet is based off a
                   Microsoft programming, which is already used by many global companies,
                   so there will be low pressure to adapt to international cultures. However
                   they will be a high pressure to offer the product at a low cost, cause many
                   other international companies may be able to imitate the product and sell
                   at a lower price.
               ii. GSM- GSM technology is the currently used in worldwide markets so this
                   would be the ideal initial platform to introduce the phone in. Following
                   this the phone could be adapted to other technologies like IDEN and
                   CDMA.
6. Strategic Implementation
       a. The overall goal of our organization will be to be focused on always innovating
           new product features to help lead create product features and services to make the
           lives of professionals more efficient and enjoyable.
7. Conclusion
       a. Exit Strategy
                i. Successful- If the business is successful an exit strategy the goal would be
                   to be acquired by a major player in the digital device industry which
                   would create a large return for the original initial founders of the business.
               ii. Failure- In the event the business is unsuccessful in order to exit gracefully
                   attempts will be made to sell all the business assets, especially intellectual
                   ones to competitors. The primary goal will be to pay off all debt
                   responsibilities, with the remaining assets going to initial outside investors.
8. Appendices
       a. Financials
       b. References
       c. Other displays to help effectiveness and professionalism of report




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                           TIMELINE & TEAM MEMBER TASK:

   I.      Introduction and corporate organization- Mike Herald: approx. 5 hours research
   II.     Business level strategy- Peter Mahoney: approx. 5-6 hours research
   III.    Market- Alexandra Zabolotnikova- approx 5-6 hours research
   IV.     Other Markets- Mark Matheson- approx 5-6 hours research
   V.      Strategic Implementation- Desada Lika –approx 3 hours research
   VI.     Conclusion-Desada Lika- 2 hours

*all the above hours are subject to change upon un-forecasted extent of research

The above hours are dedicated to research only. About 10 hours of team meetings and
discussions will be allocated towards pulling the work together and completing the business plan.

1. 12/1/06 - Research would be completed, allowing two weeks for completion.
2. 12/3/06 – Discussed research data between team members and decided on which information
   to include in the appropriate sections of the plan.
3. 12/4/06 – Team will put together a PowerPoint presentation to be presented in class Dec.6.
4. 12/8/06 – Team will have completed the business plan write up.
5. 12/10/06 – Members will review business plan and improve any part they deem necessary.
6. 12/14/06 - Business plan will be finalized and sent in.




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                                          References:

Strategic Management by Dess Lumpkin & Eisner
Lexis Nexis
www.google.com
www.palm.com/us/products/smartphones/treo650/
http://shop.pcmag.com/shop/product/Microsoft+Zune/35173009.aspx
www.apple.com
www.cnet.com

*additional reference could be added as the project requires




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