Answer every question based on the pdf attached on the company
Competitors’ strengths and weaknesses
What to include here:
· Where do you see your competitors as vulnerable? · What are they doing successfully?
Competitive advantage and differentiator
What to include here:
· What would make customers choose your product or service over your competitors’ offerings?· What’s different about your product or service? · What unique solution are you offering?· Do you have unique means of distributing your product or service?
What to include here:
· Do you rely on one or two primary suppliers? If you are dependent on a supplier to run your business successfully, identify it here Supplier name, address, the terms and the product/service
Table of Contents for PH 1 & 2
Assignment 1 3
Assignment 2 3
Assignment 3 5
Assignment 4: 8
Assignment 5 10
Assignment 6 12
Assignment 7 14
Assignment 8 16
Assignment 9 18
Assignment 10 20
Assignment 11 23
Assignment 12 23
1. Briefly explain your business idea and how you arrived at it.
The concept of IoT (Internet of Things) are implemented everywhere. Devices are getting interconnected to be capable of more things. If we combine the big screen of the smart TV with the convenience of the smart phone, it would be promisingly popular.
2. If you are still considering what business to plan to enter review the options outlined in this chapter in particular:
1. Can you identify a market gap that you could meet?
There’s no smartphone synchronized smart TV in the market. Our TV will fill the gap.
2. Is there a new twist that you could put onto an old business idea?
That would be the idea of getting smartphone work with a smart TV and other smart features.
3. Do you have an idea for an innovation or novel product?
Yes. We make the TV work perfectly with the smartphone.
4. Is there a franchise or network marketing proposition that you could plan for?
Yes. We’ll specify it in our business model.
5. Have you explored the possibility of buying out a business?
We are new entrants with unique differentiation. This industry has got history. We are not planning to buy out a business.
1. Using Porter’s five forces, analyze the factors at work in your industry.
Porter’s five forces：
1. Competitors in an industry: Apple TV, Amazon Alexa; Samsung; LG；Sony
2. Threat of new entrants to the industry: Hisense; TCL-Chinese low-price rivals.
3. Threat of substitute products：Personal Computer, Home theater center, projectors
4. Bargaining power of Suppliers: Foxconn; BOE—Medium
5. Bargaining power of customers: Weak
2. If you are expecting to be first to market, what other advantages for your proposition can you expand on in your business plan?
Since smart TV is not a brand-new concept product, we are not the first to the market.
Our smart TV have its unique differentiation compared with the ones in the market. It has very user-friendly interactions especially when paired with smart phones. Using that advantage, we have unique selling point.
3. Describe the strategic direction being pursued by the business you are/will be competing with, ie focus, differentiation, cost.
We are going to appeal our smart TV particularly in online and offline shops with its unique smart features to the potential users to let them know that it’s more than convenient to use our products.
4. What strategic option will you be going for and why?
Smart TVs in the market have some smart features but young users are using more of smartphones because it’s more convenient to the information source. For example, photos and videos taken by phone, smart phone games that can be played once they had time. They will have better experience to have a big screen to do these things. If they can easily put the images onto the big screen and operate on either screen, they would have much better experience.
5. Explain how you arrived at your proposition.
It’s a trend to have traditional home appliances into smart and interconnected ones. IoT has been developing fast and leading the industry onto another level. Our smart TV get users better experience at home. Whatever you do on your smartphone can be done simultaneously on the smart TV.
6. What makes you believe it will succeed?
We have market information about the existing TVs and our product have the chance to fill the blank part for its unique smart features.
7. Write a mission statement linking your product or service to the customer needs it is aimed at.
Mission statement: Addition to traditional smart TV, we aim to help our uses get extremely convenient in using smart services with great experience.
8. Write vision and values statements.
Vision and value statement: We can have your images displayed and processed synchronized anywhere with your smart device.
9. What are your principal objectives: short term? long term?
Short term objective: To get our products into the market and cooperate with major distributors in 2 years.
Long term objective: To have competitive market share and continuously provide users with more convenient experience.
10. List your tasks and action plans as you see them at present.
Tasks and action plans: Test the reliability and start the market investigation. Advertise through multiple ways. Establish cooperation with distributors. Make sure the products in mass production.
1. How did you arrive at this new Idea?
Every household or institution requires television, and with the steady advancement of technology, most of our tasks have been digitalized and are growing more expensive in the modern era. Our smart TV will not only have advanced capabilities, but we also want to equip the community and give environmentally friendly materials by offering durable and inexpensive everyday pricing to everyday people.
2. What is your business name and why have you chosen it?
· This brand name symbolizes unity, uniqueness, unlimited, interconnection and it’s easy to remember.
3. What experience and skills do you have and are they particularly relevant to this venture?
· A marketer by profession and specialized in sales risk assessor.
· Four years of international market experience in electronics gadgets and three years of experience in brand management.
· These experiences and skills of Risk assessors will aid in overseeing the possible risks involved in company transactions and decisions making.
· Conduct market research to evaluate and manage the severity of potential risk and forecast market trends.
· Knowledgeable in international legislation to provide trade guidance in government regulations, policies, political and economic trends.
· Also, skills in drafting contingency plans will be useful in an event of a business emergency.
4. Who else will be working with you and what relevant skills and experience do they have?
· Skilled in business management with 5 years of experience in tech industry.
· Experiences gained will aid to define business requirements and streamlining internal and external reporting.
· Conduct variance analysis for the company.
· Conduct research on effective product pricing for the market.
· Develop new models that underpin sound business decisions.
· A market researcher by profession and with 5 years of experience in the statistical data analysis area in the retail industry.
· Analyze data on consumers, competitors, target market and consolidate data to develop an action plan.
· Create a visual representation of industry developments and rivals to help the organisation forecast how items will perform in the market.
· Evaluate the success of marketing campaigns and tactics.
· Moderating focus group.
· Skilled in export and import business transactions with five years of experience working with the electronic manufacturing industry in global supply chain management.
· Facilitate conformance customs rules and regulations.
· Advise the board of directors on possible savings on taxes and duties.
· Provide expertise in product package designing for transporting purposes
· Facilitate effective supply chain, logistics and account management.
· Skilled in accounting and finance and with 5 years of experience in the banking industry.
· Produce financial statements and reports that summaries and forecast the company’s operations and financial situation.
· Prepare, maintain, and examine the accuracy of all financial documentation.
· Create internal rules and processes for the administration of the business budget, cash and credit management, and accounting functions.
· Develop improvements strategies for operational efficiencies through costs reduction and increased revenues.
5. What professional advisors have you used, or do you intend to use?
· Legal Expects drafting contracts and legal documents, protecting intellectual property, settling disputes, debt, and bankruptcy, patent agent/attorney.
· Human Resource Personnel
· Hardware and Software engineers
· Financial Advisors: developing financial strategies
· Licensed Custom Broker
· Sales Representative
· Public Relation Manager
· Outsourcing Manufacturing Advisor
6. Under what legal form will you trade and why?
· A CRA business number and import account form. CRA will use this to process customs documents, avoiding delays and confusion at the border.
· Global Affair Canada import permit. Controlled goods are available in Canada. Obtaining a license stipulates the volume of imports permitted and serves as a guideline to avoid exceeding quota.
· Declaring or reporting goods to the Canada border services agency to make certain that all relevant taxes and duties are paid.
7. If your business is already trading give a summary of financial and marketing results and achievements to date?
· Our business has not commerced yet.
1. What is the geographic scope of the market you intend to serve and why have you so chosen?
Well, Smart TVs are having the geographical scope of Mexico and the United States of America. We have decided on these areas because of the growing popularity of digital media and the introduction of improved recreational technologies. Moreover, the widespread adoption of the rising internet and the use of smart gadgets by customers are expected to accelerate market expansion throughout the region. So, that is why the TVs are demanded more in North America region.
2. What customer needs will your product or service satisfy?
Our smart TV will offer different types of features to the customers which are as under:
A) Surfing the Internet
B) Broadcasting on the internet
C) Connections via smartphones
D) Apps and gaming
E) Communicating over the Internet
F) Controlling Movement
G) Link to a keypad
H) Size of the screen can be changed
I) Uses environmentally friendly material.
J) 90-degree rotation of the screen
3. List and describe the main different types of customers for your product/service.
TV is watched by many age, lifestyle, and population groups such as:
A) Tech Savvy People
B) Early Adopters
4. Which of these market segments will you concentrate on and why?
To sell smart TV’s we would like to concentrate on medium and high-end income segments. We would sell them because by selling them we can have a good reputation in the region. Moreover, the chances of debt can be reduced. And there will be less bargaining power, as a result, the profits can be maximized.
5. Match the features of your product/service to the benefits on offer to customers in each of your chosen market segments. Provide proof, where possible.
A). Tech Savvy People: Tech people watch TV so as to have the latest knowledge regarding technology.
B). Early Adopters: Early Adopters watch TV so as to equip themselves with the latest knowledge.
C). Families: Families love to spend quality of time with their family members. They watch movies, comedy shows for their entertainment. They also get the latest news of the world.
6. Who are the innovators in each of your market segments?
For our product they are two types of innovators namely:
Consumers: It is said that consumers are the lifeline of businesses. The demands of consumers change rapidly from time to time. In order to meet their demands, the innovation of the product is done so as to maximize the profits.
Competitors: In the modern era competition is increasing in every field of life. In order to beat the competition, the product should have unique features as compared to the competitor. As our company is offering the TV in which the size of the screen can be altered according to the requirement.
7. What factors are important in the customer’s decision to buy or not to buy your product/service?
There are different factors that affect the purchasing power of the buyer such as the age of the person, gender, profession, personality, socio-economic factors, and many more. So, these all are the factors which the person has to consider while purchasing the TV from us.
8. Is the market you are aiming at currently rising or falling? What is the trend over the past few years?
In the past it has been noticed that the trend of people watching the TV in the Mexico and U.S. was declining but due to covid-19 people were doing work from home as a result individuals are having sufficient time to spend quality time with their beloved ones. They love to watch movies, comedy scenes and so on. So, the percentage of watching TV has risen to 74%. Moreover, technology is increasing rapidly. People are advancing themselves with the latest technologies. So, it is expected that in the coming time the trend of smart TVs would rise rapidly.
9. What share of this market are you aiming for initially?
UNITV is demanding high in Mexico and the U.S. Our main focus is on small businesses by penetrating. They are not focusing on big companies as they are ruling in their own way. So, our main target is to focus on small and medium-size businesses to make the life of individuals easier through our service.
1. List and briefly describe the businesses with which you will be competing directly.
The electronics industry is one of the more competitive industries with companies such as Samsung, TCL, LG, Hisense, and Sony. Many of these competitors produce various electronic products, with smart TVs being one of the most popular. The entities have, over time, provided the customer base with TV sets that feature different aspects of technology integrated into their functionality (PR Newswire, 2021). However, the market has experienced a decline in the utilization of smart TVs. There is a need for more innovative products to garner the interest of individuals in using smart TVs. Over time, the competitors have come up with various technological developments that have defined top-notch products’ status quo. The trend should continue to sustain the interests of customers.
2. Analyse their size, profitability, and operating methods, as far as you can.
The competitors are majorly multi-national corporations with establishments in numerous countries worldwide. Samsung has more than $500 billion as the second largest technology company and has north of $200 million in revenue, and Sony has approximately $85 billion, while LG Electronics has about $53 billion. These companies form the top cream of organizations that produce smart TVs, among other products. They employ thousands of people in multiple countries and control most of the market share. They are highly profitable, with Samsung boasting a $63 billion profit margin, and the industry as a whole is worth $970 billion. (PR Newswire, 2021). The operating procedure of the organizations generally features solid human resource management and supply chain management, which are integral in the success of the companies. The focus of the operation process is on quality production and cost competitiveness, appropriate delivery of the products and suitable response to market dynamics.
3. What are their relative strengths and weaknesses compared both with each other and with your business?
Among the companies’ strengths are technological advancements that have fueled the continuous production of regular products they deal with regularly. Innovation is, in many ways, the driving force behind a company’s success.
Entities such as LG have substantial design capabilities. The research and development branches of the companies are strong and instrumental in their success. They are significant entities with solid global brands, high levels of expertise in manufacturing, and various subsidiaries that support the leading organization (Omer, 2019). The weaknesses are majorly based on the competitiveness of the electronics industry as it is relatively easy to upstage a company’s products due to the growth of technology. Many of them are dependent on consumer markets with low growth potential. The majority of the organizations have these strengths and weaknesses, and they also factor in the business. They serve as the points of emphasis in evaluating the business (Omer, 2019).
4. What, in the light of this competitive analysis, do you believe to be the critical factors for success in your business sector?
Technology, innovation, and manufacturing capacity are essential components in a company’s success. These core features have allowed the companies to gain significant market share. They are constantly able to develop unique and advanced electronic products that are attractive and desirable to customers. Over time, the clientele base has invested in getting electronics with the latest technological developments, leading to the high demand that has characterized the industry for a long while. On the other hand, the companies have been able to meet the demand thanks to their manufacturing capabilities (Bloomberg, 2021).
5. What is unique about your proposition that makes it stand out from the competition?
The product should stand out amongst competitors as it puts together the functionality of a smartphone and smart TVs. Currently, no smart TVs are synchronized with smartphones, leaving a market gap that the company can fill. The integration of TV and smartphone functions should provide a different perspective to the current utilization of smart TVs.
1. What information do you currently have on customers, competitors, markets, etc?
· TV consumers in Mexico and the US.
· According to Statista Data (2021), number of TV households in the US are 121 million.
· In the US market the sizes of TVs purchased are getting bigger and TV sales are up %19 in 2020. Apps within the TV and HDR are becoming more important for consumers (Munson, 2020).
· In 2018, 92.5% of Mexican households own TV (Statista, 2022).
· Samsung dominates the US market. Alcatel/TCL, Vizo, LG, Panasonic, Hisensei Insignia, Sony, Sharp are the other actors within the market. Alcatel’s market share is increasing in the US; therefore, it is important to follow the brand closely (Multichannel News, 2020).
· Growing market, worth US$35.8 billion in 2020.
· Deriving forces of growth are increasing online streaming and diversification of entertainment tools (playstation, xbox and so on). High speed of internet and synchronous electronic devices also pushed growth in the US market. (MarketWatch, 2021)
2. What information do you still need to find, and why specifically do you need it?
· Understand Covid-19 impacts on TV market To realize shifts in market and customer behavior, if any. Covid can end up, but the habits created during pandemic could remain.
· Analyze consumer trends also in streaming and entertainment via TV Growth of the market is closely related to these subfields. It would be critical to follow consumer expectations in these areas to offer the proper TV.
· Evaluate perceptions against competitors Consumers’ perceptions will lead us especially in our marketing goals.
· Scrutinize market share history To pinpoint shrinks or growths in the market.
· Identify unique demands of the US and Mexican customer in terms of TV To shape and communicate our unique selling point.
· Identify the dominant channel where TV purchase is made To allocate our resources to the right channel.
· Frequency of TV purchase TV is widely used in the US and Mexican market, however we need to understand purchasing frequency to evaluate our market.
3. What desk research will you have to carry out to answer this question?
· Market research reports
· Market share and industry reports
· Competitors’ available growth numbers
· Competitors’ speeches and news focusing on the US market
· Articles on Covid-19 impacts
· Online consumer reviews analysis via amazon or other available platforms
· Statistics about the purchase habits, watching habits of TV
· Competitors’ marketing portfolio analysis
· Channels market share analysis
4. What field research will you have to carry out?
· Quantitative and qualitative market research to understand our market segment
· Ethnographic research to analyze the role of TV at the US and Mexican households
· Field trips to stores where TV purchase is made like Best Buy (qualitative observation)
· Interviews with the sales team to gather information about shopping journey
5. How much time and money will be needed to carry out this market research? 6. Who will be responsible for each element of the research?
· Research is key when entering a new market; thus, we need to allocate enough time and budget.
· The data on TV usage in the US and Mexico is not limited, we will have resources to make projections. Desk research will take almost one month. However, we still need to understand the differences between US, Mexican and Canadian consumers. Therefore, we need to deep dive. Thus, the field research might take two months after we negotiate with our research agencies to utilize their expertise.
· In terms of budget, desk research and filed trips will be completed in-house. For market segmentation and ethnographic research, we will allocate CAD$ 50.000 and try to negotiate with market research agencies to receive reasonable budgets.
7. When will all the key market research information be available?
· The deadline for the key market research information will be 25.03.2022.
1. Describe your product or service, as if explaining it to a novice.
This is a smart TV that can work with a smart phone and gives you great experience of both big display and user interaction. You can use the TV as the display of your smart phone and do whatever you do on the TV, because it’s a touch screen. Your operations on the smart TV will be simultaneously processed on the phone. You can browse whatever stored in your phone on the TV. So, you can enjoy the full high-definition photos, videos, and online games.
2. Is it currently available for sale? If not, what needs to be done, how much will that work cost and how long will it take?
It’s a concept product. Not available in the market for the moment. The initial model will be displayed online and will be delivered to major distributors in 3 months. The cost of each smart TV would be around 1300 CAD. It would take 3 months to do that.
3. Do you have, or plan to have, any legal protection such as patents? If so, explain what you have done so far to establish your rights.
The patent will be registered to keep the advantage in the competition and prevent from other competitors to be the free rider of this innovation.
4. How is your product or service different from those already on the market?
The smart TV is interconnected with the smart phone to be capable of whatever things were done on the smart phone. It has combined the big screen of the smart TV with the convenience of the smart phone. This is different with the TV in the market. And this display is a touch screen, users can operate on the TV as same as on a smart phone.
5. Will you be providing any warranties, guarantees or after-sales service?
Yes. It will be following the mandate rules in line with other TV makers as well as the 2-year warranties. We will provide the same after-sales service and return policy with main competitors. The quality will be assured by the OEM factories.
6. Are there any possibilities of developing new products or services complementary to the one(s) described above?
Yes. A TV should have abundant video resources for the users to watch. We plan to cooperate with online streaming service providers to get a portal on the TV. Or our TV can get the admission to share the account with their phone to watch the same content wherever on a phone or on the TV.
1. List all the costs you are likely to incur in making or marketing your product.
a) Salaries and commissions for the marketing team.
b) Cost of buying advertising resources and materials such as printing materials for newspapers and magazines.
c) Design costs
d) Travel expenses
e) Marketing analytics
2. Refer forward to section 2 and then calculate the fixed and variable costs associated with your product.
Looking at the sale of the synchronized smartphone TV the fixed costs of the item will be around $10,000 on monthly basis while the variable cost per unit for each item will be $1000 per item. The variable costs include the costs of purchasing the materials, paying salaries and other direct overheads (Kravchyk et al., 2021). The fixed costs are the costs that do not change when the number of TV sets that are produced increases while the variable costs change when the number of TV sets that will be produced will change and are thus stated per item.
3. Using the costs as calculated above and your profit objective, calculate the optimal price you should charge.
Looking at the variable and fixed costs, the smart TVs should be sold from $1300 and to cater for all the costs and still get a profit. The pricing of the smart TVs will be depended on the size of the TV and this is because the TVs come in different inches. This is the optimal price that will be charged for each TV set because for UNITV to make profits then the selling price of the TVs has to be higher when compared to the costs that are incurred when producing the TVs. The total costs of producing one tv set will be around $1100 if the fixed costs are distributed and that means that selling a TV set for $1300 will earn the business more profits.
4. What price do your competitors charge?
The price of smart TVs by other companies such as Samsung and LG range from $1000 to around $2000. The main competitors in the market right now are Samsung, LG, Sony and Phillips. The competitors in the market all have smart TVs whose prices are different depending on the specifications of the TV sets and the size of the screen. Most of the TVs sold by these companies go for around $1000 to $2000 but there are TV sets which are sold for a price that is above $2000 and even others sold below $1000 to make sure that they accommodate the entire market.
5. Compared with your product/service how much better/worse are those of your competitors?
The competitors have an advantage of being known in the market and some of the smart TVs such as those produced by Samsung have been reviewed by customers as being high quality and having a good resolution which means that people do not have to strain to see the images which are displayed on the screen. Samsung and other brands such as Sony and LG are known for durability where the customers know that buying TV sets from these companies will mean that they last longer than some other brands in the market. UNITV is however focusing on offering benefits that do not exist in the current brands such as eco friendliness. Most of the current TVs are made with materials that are not eco-friendly and contribute negatively to the environment.
6. Are any of your possible market segments less price-sensitive than others?
This market segment is less price sensitive and this is because we are targeting people whose major concern is quality and using products that incorporate the latest technology in the market (Deepak & Jeyakumar, 2019). The market segment has a good amount of income and since this is a luxury good then price is not the main factor for the market segment.
7. Does your answer to question 6 lead you to believe that there is an opportunity to sell at different prices in each market segment – and so enhancing profits?
Yes, the type of the market determines how price sensitive they are but when you are selling a product that is considered as a luxury good then most customers do not consider the price but how long a product will be able to last. There are different customer groups that have different income level and look for different features when they are purchasing a TV set and hence the pricing will differ from segment to the next depending on the quality of the TV sets. There are people who believe