1.0 Executive Summary
With the development of technology, there are more and more new products with high technology appear on the market all over the world. The company is trying to make a new project which is to produce the USB memory stick with Bluetooth. The objective of the company is to let all the people use the most advances memory stick for making life easy. Due to the low cost of the new project, the sales and profits will help the company gain the big benefits after three months.
2.0 Appreciation of Current Situation
With the development of technology, there are more and more new products with high technology appear on the market all over the world. Therefore, developing a kind of new product can help the business gain the competitive advantage in the industry. Due to the existed USB stick is just the tool of storage, it has the disadvantage which is not convenient to transfer the documents or portfolios to other places. A USB memory stick with blue Bluetooth will be a kind of high technology memory stick with low price, so that it can absorb more and more people’s attentions and gain more profits for the company as a result of its features.
Bluetooth is quite convenient technology, which is a kind of wireless transmission in the limited distance. Until now, the Bluetooth is widely used on the mobile phone, the printer, the laptop, and so forth. But, Boehmer & Werdne (1995) points out that the USB memory stick is just the tool for saving documents. If people want to copy or send the document to other equipment, it must be used the computer to transfer which will waste time and not convenient. Therefore, the new USB memory stick with Bluetooth will be a popular technological product for the people, which is more convenient and safer to transfer documents. The objective of the corporation is to invent a kind of new USB memory to occupancy the market.
2.2 External Influences
First of all, the political environment of memory stick remains competitive globally as a result of many international brands exists (Qing, 2004). The network security of the political environment is very important factor for the company to develop a new technical product, so that the corporation should consider security problem for inventing a product with Bluetooth. Then, the firm must focus on the economic environment which might bring effects. Due to there are many different kinds of memory sticks in the market now, the financial crisis or inflation will influence the target and objective of the company on finance. After that, Qing (2004) indicated that the most important is the technological environment, because of the competitive advantage for the new product is the technological competition. The safety, speedy, quality, and styling are all the technologic factors which the company should paid attention, so that it can gain more and more competitive advantages. Lastly, the corporation must mention the sociological environment which might bring the competition between different memory stick’s companies, as a result of anything might happen at any time in the society environment (Ling, 2007).
2.2.2 Opportunities and Threats
For the new USB memory stick with Bluetooth, the opportunities are mainly represented on three aspects. Above all, the USB memory stick has the wide market with lots of targetable segments and customers, which divided into four groups. The table 1 has showed the targetable customers for different age groups. It shows that the customer aged 13 – 40 is the head customers for the new USB memory stick with Bluetooth, which occupy about two thirds of the population.
From above, it points out that the age group 13 -- 40 will be the main customers for the new USB memory stick, which focused on the students and the white collar workers. Secondly, the popularization of technology information and the life’s demand are good for new product. More and more people need to use more convenient, more advanced and multifunctional products for saving time and expeditiousness, as a result of the development of society. Thirdly, there is not exist the similar product with the similar function appear in the market. It means the market has the huge potential customers for the new USB memory stick. Thereby, the aim of the corporation is to let all the people whose use USB memory stick to use the new one instead of the old one, as a result of the many advantages.
On the other hand, there also have some external threats for the new USB memory stick compare to the opportunities. Due to there are so many competitors in this industry, it will bring peer pressure for the corporation because of the competition in the industry is so serious nowadays. It will be represented on the price, the advertisements, the promotion, the quality, and so forth. In addition, the new USB memory stick with Bluetooth is easily eliminated which is also the threat for company.
2.2.3 Critical Success Factors
The biggest feature of the new USB memory stick is high technology. Compared to the existed memory stick, it has the technology which is Bluetooth can absorb more and more people’s attention, as a result of it can bring many benefits for them. In addition, the price of new USB memory stick is quite low making consumers would like to choose the new USB memory stick with reasonable price, high technology and high quality.
Considering the development of the new USB memory stick, the alliance is a good method to increase the sales. It is not only can enlarge the degree of well-known, but also can be supplied the capital for development. For example, the joint venture with other big company can solve the problem of capital on inventing.
2.3 Internal Influences
2.3.1 Strengths and Weaknesses
There are many strengths of the inventing the new USB memory stick. The most obvious characteristic of the new product is that it has a high technical skill which is quite different from other product. Thereby, the Bluetooth in the memory stick can make people easy to transfer any documents, even print them out. And, it has the intangible resource which is the patent; as a result of it is the first kind of USB memory stick with Bluetooth in the world. In the next place, this new product is quite easy to be recognized by the consumers, because it’s novel but not fancy. In addition, the new USB memory stick can bring lots of benefits for consumers, like faster than usual memory stick. The most important point for the strength of this new product is with a low cost, which can bring big financial benefits for the company, as a result of the Bluetooth is a kind of wireless service.
By contraries, the weaknesses of the new USB memory sticks has mainly three aspects, which are lack of human resources, lack of advocacy capacity, and lack of tangible. These weaknesses will limit the development of the new USB memory stick with Bluetooth.
2.3.2 Resources and Capabilities
For the resources of the company, the corporation has the limited resources for inventing the new USB memory stick with Bluetooth. Therefore, the firm should look for some companies which would like to support this product on finance or facilities to keep the plan. On the other hand, the company should ask some expert on Bluetooth for using lowest costs to get the high quality product. Due to the scale of small business, it should have a good organization for everything.
For new USB memory stick with Bluetooth, there are many expected consumers on the market. The students and the white collar workers which aged 13 – 40 will be the main customers for the new memory stick, which accounted for about 70% of the total.
The major commercial opportunities for the new product is a kind of new USB memory stick with high technology, which is quite different from others. And, the low price of the new product will absorb many people’s attention for a more advanced memory stick. Compared with that the significant competitive threat is the serious competition in this industry might make this product quite easily be eliminated, as a result of the high speed development of technology.
In addition, the weaknesses of the company reflect that the company has the limited capabilities for inventing. Based on the competition environment, it’s better for the company find a business to support it on finance and production. But, the intangible resources will also bring some benefit for the firm, like patent.
From above, it indicates that the new USB memory stick with Bluetooth has many competitive advantages for it to gain success on the serious competition in this industry, like high technology, low price, fast speed, and so forth. And, the market is lack of this kind of convenient equipment for people, so that the new USB memory stick will bring big and unique benefits for the company.
The primary financing of the new USB memory stick with Bluetooth will mainly divided into six parts. The table 2 has shown different amount for different part on financing.
The original sources for capital on this project are mainly from raising money by managers and get loans from banks. The total capital will be ￡ 350,000 for everything. Based on the plan, it should have 45,000 USB memory sticks be produced on the next 3 months, as a result of the huge demand of the new product in the market. Therefore, the total cost of products is ￡ 225,000. The total rental and salaries for workers in three months will be ￡ 135,000. Therefore, it will earn ￡ 90,000 in the first three months.
There have a wildly potential expected consumers for the high technology USB memory stick, the expected sales for the first three months will shown in the table 3.
From above, it indicates that the sales of memory stick will increase with the advertisement and the degree of famous. Therefore, the USB memory stick will instead of the traditional one as a result of the feature in the market.
With the development and spread of the product, it will be develop the overseas market so that all the people in the world can enjoy the convenient of the Bluetooth USB memory stick. In addition, the company can also think over to innovation for the style, form, or color so that suit for different age group’s member’s demand.
For the target customers of the new project, the leading consumers are focused on the students and the white collars which aged at 13 – 40, as a result of the demand of the high technology product. Therefore, the target sales will be divided into two parts: in first three months and after three months. The first three months will be important selling for propagandize, so that the total yield is 45,000 products with the multi-selling of 5,000 products per month. The selling methods can be versatility, for example, traditional store, supermarket, on-line store, and so on. After three months, the expected sales are 25% increase in product sales 7 months. Table 4 has shown the expected sales for Bluetooth USB memory stick.
There are many characteristic for the new Bluetooth USB memory stick. First of all, the USB memory stick will use USB 3.0 & Bluetooth 3.0 as the core, which is the most advanced technology and quality for keeping the speed and safe of transferring. In addition, this product might have a big development for some other new technology, as a result of the any new technology can bring the big innovation in the future. After that, the high speed transmission is the unique position, so that it can save people’s time and convenient. However, it still has the space for research and development, like some technology can make it faster than USB 3.0 & Bluetooth 3.0 to increase the sales in the future.
Form the financing analysis above, it shows the basic material cost for one product is just ￡5. And, it needs the loan from the HSBC bank about ￡250,000 with APR6.48%. But, the mainly cost for this project includes: the salaries for the workers which is ￡1,500 per person (20 workers in total), the costs for buying machines which is ￡200,000, the rental for plant which is ￡3,000 per month, and the advertisement outlay costs ￡10,000. Therefore, the total cost for one USB memory stick with Bluetooth is ￡16.6 for every product. So, the selling price for this new product is ￡20, which is just similar to the traditional memory stick. The profit for every product is ￡3.4 in the first three month.
After three months, the costs are decreased. The company just needs pay the salaries for workers and the rental for producing. Therefore, the cost for one product is ￡8.12. Due to the unchanging of the selling price, the profit is increasing to ￡11.88 for one memory stick. Table 5 has shown the profitability for the company.
There are two promotions for the ordinary dealer and the cooperated supermarkets and online stores. For the ordinary dealers, the promotion is the products to the market with lower prices after sixth months. And for the cooperated supermarkets and online stores, the promotion is that they can get the discount after three months. Otherwise, the company can make the promotion for the customers based on the development of the product in the market, like the discounts.
Boehmer, S & Werdner, H (1995): The Politics of Reducing Vehicle Emissions in Britain and Germany, London: Fairleigh Dickinson University Press, p.160.
Qing, G (2004): The Importance of technology environment, China: Qinghua University Press.
Ling, Q (2007) Situation of today students, Job news, Vol 50, Available