Business Ventures in Smart Phone Industry - Example

Business ventures Insert Name Course, Class, Semester Institution Instructor Date Business ventures in smart phone Industry Introduction In the world, today, there are numerous business ventures available to entrepreneurs. In addition, the world is dynamic meaning that the business fraternity is exposed to excessive uncertainties emanating from economic evolutions. In this light, it is evident that a business venture maybe functional but may inculcate certain shortfalls that threaten its entire well being. This implies that, the entrepreneur should focus keenly on the economic behavior and adjust accordingly. An entrepreneur is believed to be unique and innovative. Innovation implies that the entrepreneur can adjust in light of the prevailing circumstances and develop a product that will meet the consumer’s needs. It is inherent that for any business venture to pick up and thrive, the business idea has to be articulate and clearly confront an imminent niche in the market. Each and every market experiences market niche’s once in a while due to turn of events (McKeever, 2012). This is because; given the structural dynamics and changes both in the economy and its participants for instance change in consumer preferences, it is essential to carry out tentative research. Research ensures that the business architect or entrepreneur is well aware of the prevailing challenges in the market and the issues that resonated to the niche. Once this is fully addressed, any business will flourish if the products meet the needs of the clients also inculcating appropriate pricing methodologies. Once this is achieved, clients will be available in various figures because most clients look for tastes and preference in a product before price. The first crucial step required by each and every entrepreneur is the recognition of a market niche. Secondly, it is beneficial to device or formulates a product that will meet the needs of the client. In addition, before undertaking any investment endeavor, the participants need to evaluate on the market feasibility. A good product is useless if there is no market. The intention of this discussion is to delineate a market niche, propose a solution as well as a feasibility study on the market performance. The problem Pursuant to the increase in resource expenses for the manufacturing enterprises, it is evident that this has an adverse effect on production costs. Once production costs are hampered with and consecutively increased, it is apparent that this tendency affects the standards of living affecting the entire humanity. In addition, there has been an upsurge in the usage of technology across the universe given the recent trends. For instance, the livelihood of many individuals depends on mobile phones for communication. However, since the blue chip corporations in the industry have already secured various copyright, the price of manufacturing is on the upsurge. In light of all this, it is noteworthy that various clients in the industry purchases a mobile phone that suits their requirements to the core (Truitt, 2001). For instance, some clients purchase a mobile phone device entirely for internet connectivity, others for messaging while other predominantly use the mobile phone device for calling. It is noteworthy that a company deeply entrenched in this endeavor look for a solution to qualm the biting problem. Lack of immediate action would devolve into serious loses as the increase in factors of production is prevalent pursuant to the prevailing economic circumstances in the United States. In addition, since various companies dominate with regard to patent rights, it will be difficult for the continued success of the upcoming firms in the exceptionally lucrative industry. The solution Each and every problem has a solution that is only implementable if well sought and reviewed. In the eventuality that a solution is not implemented in a short while, the upcoming smart phone manufacturers are deemed to face exaggerated loses in the foreseeable future. However, there is a lucrative investment destination that would accommodate upcoming ventures and foster growth and development into the future. The region in question is Asia with a keen focus on Chine. This is because; the country can handle numerous manufacturing capabilities at ultra low costs. This is because; China is immensely endowed with resources as well as the necessary expertise. To be precise, the country has an over 2 billion people. This is to imply that the country is the most populated nation in the world. To the business fraternity this means to ideal situations. One, this is an ideal location to source for cheap labor as it is in plenty. Given the stringent education system inculcated into the economy by the government of the day, China produces technocrats who would be able to deal with an array of technological issues. Secondly, the country has immense wealth in terms of resources implying that it would be supportive to any worthwhile initiative. Additionally, the country has signed tremendous trade treaties and agreements with other nations all over the world. This factor coupled with the populace present in the country, it is inherent that China would be an appropriate destination for a new venture into the smart phone industry. The main challenge facing the new or emerging smart phone industry is technology level or innovativeness. For instance; there is an issue of internet security. Many individuals around the world require a mobile phone device that has the capability to circumvent these malicious actions of internet hackers hence saving a lot of money. The solution to this inherent problem revolves around creating a device that would not permit cyber crime. China is a lucrative venture as it is a solution to all the problems facing the developing enterprise currently based in the United States (McKenzie & Schoumacher, 2002).  Business opportunity assessment Before indulging in any venture, it is vital to undertake an assessment to determine the feasibility inherent or the probable returns. Business opportunity assessment is an endeavor worth pursuing as it enlightens us on the prevailing conditions and the potential nature of the market. In light of these circumstances, the feasibility of a mobile phone device that inhibits internet theft ensuring clients of safety is quite lucrative. This is because; given the prevalent trends of modernization individuals gradually rely on their mobile phones to enhance numerous transactions. The communication bears private information and at times worth a lot of money. Developing a device that will enhance on security and lock all mischief will be desired across the board. In addition to being safe, the smart phone will be developed using cheaper factors of production. The advantages to the relocation would be summed up as the following; cheaper factors of production hence facilitating cheap pricing on the already lucrative commodity. Secondly, up to date technology that will facilitate secure transactions will be enacted. This will be a solution to many mobile phone users who have fallen prey to the hands of the hackers. Thirdly, the upcoming mobile phone producer will own a patent right that would be a potent source of income considering the numerous number of companies in the same industry. On the other hand, business assessment seeks to ensure whether a company can net the desired market. First, China is an expansive market in itself. This is because; a third of the world’s populace resides in China. The main goal would be to have the Chinese market on board before seeking to penetrate the international market. This would imply that, if the said smart phone were to be developed in line with the customer’s requirements, then, sales would be inherent. In addition, since China is the upcoming hub for manufacturers due to its low coat initiative for factors of production, the country has signed a range of trade agreements with the nation all over the world. It is the duty of every government to ensure that its citizens get the best commodities at the lost affordable prices. China being a competitive producer, various country’s have come on board and signed trade agreements with the Chinese government seeking to have a price reduction. The treaties for instance negate double taxation and facilitate international remittances to the mother country. Such opportunities make China, a remarkably distinct location bearing all solutions to the problems facing the young US based smart phone manufacturer (Young, 2007). Business strategy Once the assessment is concluded, it is vital to formulate a business strategy. Every business has a strategy. A strategy is a long term plan covering up to 5 years. The business lays out a proposal of the things required and incorporates them in a defined period. The strategy also illumines the probable weaknesses, or strengths each business has in the industry in comparison with the competitors. There are a number of tools used to develop a business strategy. In this case, the SWOT analysis will be utilized to develop a business strategy for the smart phone manufacturer (Bangs, 2002). Opportunity There is a looming opportunity as illustrated above in the discussion. This is because; in the prevailing conditions, there is no single business in the smart phone industry that has ventured in securing the transactions carried out. In addition, if the proposal is well implemented, the results will be nothing below success. Threat Threat is anything that might interfere with the actualization of the opportunity. Any smart phone manufacturer that gets wind of this proposal will be an eminent threat. The threat emanates from competitors in the same industry. Strength The strength of the smart phone producer will emanate from the fact that, if the business relocates to Chine, there are resources, expertise as well as a ready market. If the above elements are used appropriately, the business will thrive in the industry. Additionally, in the instance that the business propels and thrives as expected in the industry, it will have the sole possession of the patents required in the production of the smart phone. This will replicate to additional revenue. Weaknesses Each enterprise has weaknesses. In this case, the probability of the eventuality that any one of the elements does not work as expected, it will be the weakness that would lead to the downfall of the company if not checked. Reference list Bangs, D. H. (2002). The business planning guide: Creating a winning plan for success. Chicago, IL: Kaplan Pub. McKeever, M. P. (2012). How to write a business plan. Berkeley, CA: Nolo. McKenzie, R. A., & Schoumacher, B. H. (2002). Successful business plans for architects. New York [etc.: McGraw-Hill. Truitt, W. B. (2001). Business planning: A comprehensive framework and process. Westport, CT: Quorum Books. Young, P. (2007). Business plan. Chandni Chowk, Delhi: Global Media. Read More