Business Strategies for Corkscrews Car Supercharger Kit Company - Example

A BUSINESS PLAN FOR CORKSCREW’S CAR SUPERCHARGER KIT PRODUCT Name Professor Institution Course Date 4. Direction 4.1 Mission Statement Corkscrew’s car supercharger kit company is to be installed in Australia in order to break down the hardships which the Electric car owners get subjected to due to delayed charging services offered by the existing charging stations. A supercharger to be introduced by Corkscrew Company will target all Electric Car manufacturers and users who usually face difficulties due to the limited accessibility created by existing network. By capturing charging infrastructure and the supply, they would have a competitive advantage visa avis those in the market. Corkscrew aims at coming up with a supercharger kit meant for adding power and torque to an engine. The kits are engineered to fit a customer’s engine, and not like the off the shelf type of kits. With Corkscrew’s supercharger kit, one can easily add power and torque to the engine. The kit’s design allows it to be added to the existing injection or carb and conversion. It works as a by-product meant for cooling the charger, and as a result, leads to power gains. 4.2 Strategic Vision By the end of the designated timeframe of two years, the corkscrew’s supercharging kit will have taken up a reasonable market share specified within the landscape of Australia. At the midlist of the second year, company’s market share is projected to have heightened slightly above those companies currently existing in Australia. In other words, its market dominance will have reached a higher level and its outlook would be national. 4.3 Objectives With the ascertainment of the supercharger’s quality and functionality, that is slightly after the product has been rolled out within the Australian land, the target timeframe would start to shift to the better. To be precise, the time when the pilot station will fully be operational, and depots have started to emerge across different parts of the world. The primary plan of Corkscrew shall be rolled down to meet the following objectives and time constraints. Months Strategic Objectives 1-2 Service station chain( 1 pilot) By the end of the period, total supercharging kits should be equal to 25kits 3-5 Service station chains(1 rollout, 1 pilot) By the end of the period, total supercharging kits will have increased to over 2500 kits. 6-10 Introducing an advertising sales department Identifying outlets within the country Constructing charging stations(2 pilot) Hire operations employee Operationalize the station( 2 pilot, 2 rollout) At the end of a period, total kits will be 2800 Total charging stations will be about two in number, per depot. 11-14 Expanding the charging stations in order to meet the requirements of the global demand. Negotiate with car agents to take up the installation where unreachable by corkscrew company. Total superchargers should have hit above 3000 kits and the total charging stations should have reached ten. 15-18 Expand the charging stations Negotiate with agents to take up the installation where unreachable by corkscrew. This time shall be close to maturity and the total number of kits shall have hit about 3500, with the total number of charging stations about 4 (pilot) and 30 (the rolled out stations) 19-24 Agents to take up superchargers to various destinations, especially to the global market indifferent countries. Open up more stations managed by the company. Total kits to hit 5000 Total charging stations to hit 70 Sell the business, or alternatively go national and global at the same time. 5. Research and Analysis 5.1 Industry Analysis The product is new and therefore, may not have direct competition, especially in the Australian market. The production in the trading area shall remain captive and even not available in Corkscrew’s target market. The company shall have the ability to get source information of post-consumer stocks, in an effort to integrate the supercharger kit to the manufacturing process and other operations, thus producing the product to meet the high demand in the larger United Kingdom region. The workshop for the assembly of the supercharger kit will consist of all manner of experts from different engineering fields-electrical and mechanical. The quality control division will ensure the production of standard kits, thus minimize the problem of redoing the work. The kits components shall also be bought locally at costs that will make the product remain competitive. The main barriers to product entry are limited to supply of the raw material. Some of the raw materials, the plastic and metallic components required for assembly, are in high demand, thus currently undersupplied in Australia (Barry, 2010). Some manufacturers delay production because they are uncertain about the supply. As entrants to this market of car supercharger kits, we shall remain focused at minimizing waste and recycling the spoilt , and return kits’ products, rather than in attempting to dispose them off. The cost of some equipment to use is relatively high and industry specific. This results to increased exit costs. As a result of scarce raw materials, we will have to consider establishing a maintenance section in order to repair some of the spoilt kits and restore the already used-up supercharger kits. Further, more success shall be the point of focus. We shall ensure vertical integration as an important component towards successful accomplishment. This will maximize the profit potential. For optimized production, we shall ensure a production facility that is in two stages: Assembly and quality control. The company’s management system will work towards enhancing secure contracts to allow for supply of raw materials, and selling of the finished kits. Producing supercharger kits for different kinds of engines shall form a major operations cost. Competition and buying patterns is another crucial thing to consider under industry analysis. The demand for car supercharger kits is very high, and has been what car technology needed for a long time (Daniel, 2005). The traditional purchasing systems in the car industry are based on reputation, quality, and price, proximity to the market and delivery times. Although there are several competitors, our technology shall be efficient, cost effective, and accommodate the interests of all car owners and other users of the car supercharger kits. Our primary aim is to meet the customer needs, with the most reliable, efficient, effective, and sustainable solution. For purposes of indentifying potential customers, outdoor advertising is considered ideal. To be more specific as far as the car supercharger kits are concerned, the billboards and street signs or car magnets and body wraps or bus and rail adverts would be considered ideal in attempt to connect with the potential customers. The advertising mode applied would take a mix that minimizes costs and maximizes advertising success. Market size, trends & predictions According to Jason (2006), most companies’ expenditure on outdoor adverts in Australia has increased a lot from about $310.7 million to about $275.9 million within a span of one year (1999 to 2000). However, in 2003, the market recovered and outdoor advertising went to about $400 million. The table below shows the outdoor advertising revenue across the years 1999 to 2008. Target market The supercharger kits targets the electric car manufacturers and users who usually utilizes it to energize their engines while driving. The market of electrical cars is continually increasing, following the global concern to minimize the greenhouse gases emitted by the fossil fuels, or conventional fuels. 5.2 Competitive Analysis 5.21 Suppliers The supercharger has three main inputs to be supplied; 1) product designers 2) The manufacturers 3) Labor Australia is considered to have abundant designers relative to other countries worldwide. To find a qualified specialist whose benefits spreads in a long term basis is a difficult task. It is, therefore, important to make appropriate arrangements where the specialist is to be given incentives so as to maintain the supercharger’s quality and innovation ahead of other new entrants. The manufacturing of the kits would be done by the company’s employees. But, there are accrued benefits in form of reduced costs when a company relates to others. Other than the employees in the manufacturing sector, corkscrew would license the kits to a number of willing and reasonable agents to install them so as to improve the eco-system of superchargers. Equally, the company would increase the charging stations so as to increase the availability and efficiency of charging infrastructure. Competitive edge rests with the proximity of a product to its target markets, as well as the industry knowledge, reputation and contacts of its senior management. The many years of direct experience of our employees will lead to identification of unique opportunities and put together the technology and sources to take advantage of. Their reputation in the specific market segment will result in the achievement of long-term commitments for our production. 5.22 Competitors The extensive research has clearly indicated existence of Tesla Company that manufactures similar products utilized by electric car makers and users. However, their market penetration is limited due to the slow pace they employ in taking up the existing market. 5.23 Entrants This business will seek patenting for its unique concepts. The engineering department will provide the unique features of the product which require some patenting. It is expected that the product will be a big threat to other competitors and presumed that the main competitors will have to retaliate immediately. 5.24 Substitutes There are different supercharger kits in the market out there. Some engines come with the superchargers incorporated and this may offer a substitute that poses competition to our product. The competition is, however, very strong from the handful players in other parts of the world who are already producing different types of car supercharger kits. 4.25 Customers With the superchargers under ones hood, the ride can be increased to a level where performance is highest. Due to this, most supercharger customers have inclined to it since they get the best services as may be described. Equally, each and every kit is a complete bolt on the system, consisting of everything needed to get ones’ muscle car track on and absolutely ready. 5.3 Environment Analysis 5.31 Regulatory The State Governments and The Commonwealth have a policy meant to encourage the primary producers, among other sections within Australia, to adopt a reliable approach towards managing the climate variability. The licensing arrangements of the Local Authorities shall be complied with in Western Australia, South Australia, and the New South Wales, as well as in the Queensland and Victoria. The manufacturing plant for car supercharger kit will be like any other industry, and must, therefore, comply with the industrial laws of Australia. The news features of the kit shall be patented in order to safeguard the product from the unscrupulous investors. Appropriate permits and registrations shall be complied with, and the environment impact assessment carried out. The recommendations of the environmental impacts assessment report shall be taken serious, especially by adopting the required. Occupation health & Safety (OH&S) regulations form a principle component in the manufacturing process within Australia. These regulations are meant to ensure there is decreased or no deaths at all due to industrial processes. Since the market intends to expand to other nations or countries, research shall be carried out on some of the statutory requirements in those states, as far as the kit is concerned. Other fundamental things which must not be ignored include impact of politics on employment law, taxation, environmental and consumer protection. The business shall, at all time, check and adjust to the environmental conditions. 5.32 Economic Another thing that must not be ignored is the impact of the macroeconomic factors such as the foreign exchange rates, interest rates, inflation, labor costs, disposable income levels, capital investments, government spending, GDP growth, migration levels, and even the unemployment rate. The trade and budget deficits have to be taken into consideration as well, since they will direct or indirectly affect the running of the Car Supercharger Kit business. 5.33 Environment The Australian government must adhere to the rules of environmental integrity. As such, the manufacturing of the car supercharger kit will have to implement measures targeted at protecting the environment in the best way possible. 5.34 Societal The business of the car super charger kit is expected to remain strong. The emerging middle class in several parts across the world, alongside the emerging technologies, are expected to increase the kit’s demand. The high technological input will favor the manufacturing process of the kit. 5.35 Technological The Australian environment favours the production of the Car Supercharger Kit (Jeff, 2011). The current manufacturers of similar products employ weak technologies, thus placing the company at a competitive edge. Some of the technologies to be employed will include the Flexible Manufacturing Process and Design for Manufacturing Technologies. Modern workshops provide efficient workstation machines and robots that will positively impact on the production of the kit. 5.4 Value Chain Analysis The conceptual value chain for car supercharger kit is as shown below: The Design of the Kit (When the business plan has been completed, the engineering department will design the product). Continuous improvement shall be added to the product in order to improve its quality. Testing the Functionality (Once the kit has been designed, it shall be tested for functionality. The customer’s feedbacks shall be taken into considerations and appropriate adjustments will be incorporated into the product. Actual Manufacturing The actual manufacturing process will start after the customers feedback has been taken into consideration. The kits will be processes and manufacturing in different design stages, such as assembly and quality control. At the start, the product will be manufactured within Australia and later, depots shall be opened in other counties across the world. Sales and Marketing The car supercharger kit shall be marketed to different potential customers. This will not only create customer awareness but also lead to increase sales revenue. Transportation of the manufactured Products to the market. This will be done with a lot of care in order to minimize damage to the product. Repair and Maintenance This will be applied to the rejected products. Instead of throwing them away as waste, they shall be repaired and be restored back into the market Waste Disposal There are several wastes to be generated in the manufacturing process. Such wastes shall have to be disposed off in the right way. Examples of such wastes include the waste oil form different machines, and the metal chips out the metal workstations. Some of the products will be disposed off to the disposal companies within Australia. Recycling Unit The recycling unit will be meant for restoring some products back into use. At the time of implementation of the business, water recycling shall be incorporated and then later, the plant shall be expanded to accommodate other products. 5.5 SWOT analysis This is very important during business evaluation. It focuses on the Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is mainly subjective, in identifying the negatives and positives within the organization, outside the organization, or even factors within the external environment. This evaluation gives full awareness about the whole operation of producing the supercharger kits, thus helpful in both strategic and decision making processes. The strengths and weakness form the internal factors, whereas the opportunities and threats are considered as external factors that may affect the business of manufacturing the supercharger kits. Any firm has control over internal factors (strengths and weakness), but not over the external factors (opportunities and threats). The strengths, weaknesses, opportunities, and threats of manufacturing car supercharger kits are summarized in the table below. Strengths This will entail those things that will add value to the manufacture of supercharger kits. They include the distinctiveness, expertise, and innovativeness of the different professionals within Corkscrew’s manufacturing plant. The plant is strategically located in an urban centre, where more automobile are purchased, and the cars are on higher demand. The professionals we have are well versed with the principles of good administration. Corkscrew’s car supercharger kits are a powerful brand of high quality, and the research we’ve done on it has already fetched some reputation. The customers trust our ability to deliver what they need, and on time. We will also manufacture a wide range of supercharger kits for different sizes and type of vehicle engines, an array of which the customers shall choose from. The fact that we manufacture the kits near the showrooms for different cars makes it convenient for our potential buyers to reach us for both purchases and enquiry. Since the business is very lucrative and will create employment opportunities too many professional youths, we expect more funding agencies, and grants from both the government and some concerned non-governmental organizations. Weaknesses There is several weakness to watch on as a company, in order to remain relevant and at the forefront in the manufacture of car supercharger kits. The weakness are simply those factors that may lead to loss of value, and include things, such as the poor location at range for depots, the newness in the market as far as the business is concerned, wide range of technologies that may easily confuse the firms team of professionals, high work-load, especially for the engineering department to be concerned with production and assembly of the kits, the inexperience of some professionals, the technical challenges of managing the bigger business territory, the cumbersome process of training and recruiting new and experienced professionals. The building to use shall be hired, thus posing an additional challenge of renovating it in order to have offices, workshops, and parking. We shall have to buy the already working and tested programs. This will create an additional budget to our finances. Opportunities Opportunities can be an upcoming market, like the joint ventures, and mergers, strategic alliances with other local and global retailers or the opportunity of moving into an ineffective competitor or into new international markets. Threats Threats may include, but not limited to: price wars, new competitor, innovative competitor, taxation, competitors with better distributions both locally and internationally. SWOT Analysis References Barry, K 2010, How to Supercharge and Turbocharge GM LS Series Engines, CarTech, Inc., North Branch. Daniel, S 2005, How to Plan and Build a Fast Road Car, Veloce Publishing, New York. Jason S 2006, How to Rebuilt and Modify Your Muscle Car, MBI Publishing Company & Motorbooks, Minneapolis. Jeff, H 2011, Supercharging Performance Handbook, MBI Publishing Company & Motorbooks, Minneapolis. Read More