Business Plan Report: Smart Phone Industry, Performance and Future

This report presents a comprehensive business plan for a smart phone venture. It begins with an overview of the company's vision and strategy, emphasizing technological innovation, data security, and affordability. The report then delves into a competitive analysis using Porter's Five Forces, assessing the threats of substitutes, competitive rivalry, and the bargaining power of buyers and suppliers, as well as the threat of new entrants. Internal capabilities, including the use of business simulation technologies, are examined. Key industry trends, such as 5G connectivity, battery durability, improved video quality, and foldable devices, are also discussed. The report forecasts long-term growth and analyzes performance, evaluating strategic decisions and outlining a competition strategy focused on innovation, quality, and affordability. The plan aims to achieve high annual gross profit by 2025 through strategic campaigns and direct market access.

Assessment

Table of Contents
PART A...........................................................................................................................................2
Vision and strategy..........................................................................................................................2
Performance review.........................................................................................................................2
Competition analysis...................................................................................................................2
Performance analysis...................................................................................................................5
Future plan and recommendation...................................................................................................7
REFERENCES................................................................................................................................9
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PART A
Vision and strategy
The company vision is to
1. To shape the future of technology and mobile world.
Values- to ensure data security of customers in smart phones.
To bring in new technology in smart phone
To provide affordable phones to all class people.
Here, strategy of company is to shape future of mobile industry and bring in high
technological smartphones that is affordable to all people.
Mission- to become 2nd largest smart phone company in the industry
HR- Current full-time employees – 10
Purchase HCM support system – 15000 euro
Culture – there is a positive culture which will be developed within organisation. In that all
employees belonging to different caste, creed, etc will be hired. Also, all staff will work in a
team and attain goals. There will be a proper communication channel established in it.
Performance review
Competition analysis
It has been analysed that the company is been involved in developing a new product which
is smart phone. They are trying to make sure that phone is innovative so that competitive
advantage can be gained by the firm. The competitive analysis of organisation can be analysed
with the help of Porters five forces. This includes the following steps:
Threats of Substitute: The threat of substitute is high as there are huge players in market who
has created their own monopoly, so firm needs to be involved in making sure that the smart
phone which is been developed by them is unique in order to gain competitive advantage. It has
also been analysed that there is moderate to high availability of substitute products, so in order to
grow firm needs to be involved in thinking of better strategies so that competitive advantage can
be gained by them (Lewis, 2017).
Competitive Rivalry: It has been analysed that company can face high amount of rivalry. This
is because there are huge existing players in market that can affect business of firms. So it can be
said that organisation is facing tough competition, so in order to gain competitive edge it is really
necessary for firm to be involved in making use of more innovative strategies so that they can
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grow and also been able to achieve high amount of profit which is really necessary for firm so
that they can be able to expand their business in Germany, Netherlands, Belgium, UK, Monaco,
Germany, France, Singapore, USA, UAE, India.
Bargaining power of buyers: It is strong; this can affect the organisations production. In this
company also needs to ensure that high quality of product is been supplied to consumers so that
their power can be reduced down. It has been analysed that consumers are provided with lots of
wide choices so that they can grab them. So the smart phone firm needs to be involved in
analysing wants and preferences of the customers so that their braining power can be lowered
down and this will assist organisation in growing and also achieving the set targets. This will
also support firm in increasing the satisfaction level of consumers by providing them with better
options (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes, 2016).
Bargaining power of Suppliers: It is high as the global size of smart phone company is high
and also they have limited options from where they can buy the product. So in order to reduce
down the power of suppliers, smart phone firm also needs to be involved in looking for more
suppliers from where they can purchase the products. They can also be engaged in expanding
their business so that more profit can be earn and also they will be able to gain competitive edge.
There are low numbers of suppliers from where company buy products (Schawe. and
Billing,2018).
Threat of new entrants: This is low as it is really difficult for new enterprise to enter in the
smart phone industry. This is because all of the companies has set their own monopoly and it can
be tough for new entrants to compete with them (Porter, and Niksiar, 2018).
Internal capabilities
When considering the business simulation technologies such as games. phone venture is
basically improving the managing the new innovation it often within competitive environment or
culture. The enterprise have a make decision usually but do not exclusively allocating the
different resources. The simulation games also becoming considered as innovative concept
which always support for enhancing the internal dynamic capabilities. In some games, phone
venture will take big decision to focus on the particular enterprise function and analysis. In
additional, Simulation that can span different enterprise functional areas in term of product
design, sales, human resources and marketing.
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The business simulation is that when it may referred as top management as well as
enterprise games (Enkel and Sagmeister, 2020). The organization has considered simulation
games in term of modern technologies, which always support for interacting on particular
situation or condition. This will help for build the system of dynamic manner.
The phone venture enterprise that simulate various operation and function. Typically, it
might have a specific areas for representing the flow of objects. In some situation, organization
initiate towards games card both normal way to change the entire event or program. Sometimes,
it may include moving pieces around the boards and have certain benefits, advantage to increase
business simulation games.
The Smartphone venture has provided the dynamic simulation games or technologies
concept, which provide the safe or secure virtual environment. Therefore, potential customer can
experience what it takes to start new thing. Another way, it can be provided the better internal
capabilities that manage the different operational functionality.
Smartphone venture that have been showed the simulation which become more
interesting, helped the potential customers. Moreover, it can be focused on the internal abilities
of business simulation which may help for transferring theory into different practices. Also fulfill
the requirement of customer who will have high expectation with regards of towards business
simulation games. Despite its benefits or advantage at certain enterprise simulation. It did not
offer the realistic approach in term of financial environment or culture.
Competitors
It provides the experimental learning by acquiring the information or data with team
member to select the better strategy and implement in business simulation. Afterwards, it can be
generated the accurate result or outcome. Nowadays, the competition level is higher in
marketplace because phone venture uses different innovation technologies. In order to attract
large number potential consumer towards product as well as services.
Additionally, alternative competitors are competed in different manner. Initially, they
have excellence of their product as well as service. In order to meet the expectation level of
client. There are various types of phone venture games that already established the business and
always maintain the position in marketplace such as supercell, tencent and so on. Furthermore,
the phone venture games that will compete with other competitors. Therefore, it will be required
to implementing business simulation approach, improving the internal capabilities of
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organization in global marketplace. As a result, it will be gaining more competitive advantage in
marketplace. Modern technologies also attracting the more and more client so that it become
easier for establishing the enterprise in global world.
Key trends in industry
With globalisation there are many trends which is emerging in smart phone industry.
This has led to shaping of sector and rapid growth within it. thus, the trends are defined are
5G connectivity- with advancement in technology the 5th generation is emerging. It has already
started shaping industry and upgrading of system and smart phones. The technology has
enabled in increasing range of connectivity and improving network. It will also led to increase
in internet speed and easily providing access to all mobile users. With this there will be rise in
cost as well of maintenance of IT infra and smart phones. Besides that, cost of data will rise as
well. the advancement in technology will force companies to develop new smart phones.
Durability of battery – here, another trend which is emerging and shaping smart phone industry
is rise in durability of battery. The companies are focusing on providing more advance and
stronger battery. Moreover, for continuous use of mobile it requires high durability of battery
which is also compatible to smart phone. So, in future durability of battery will increase and it
will enable in using phones for more than 2 days. Hence, there will be no problem or risk in
damaging of battery in it.
Improved video quality – this is another trend that can emerge. The organisation will focus on
improving video quality so that smart phone can include function of a professional camera. It
will enable in shooting video in high quality and capturing images as well. for that it require
high quality lens in it and retina displays as well. this trend will shape industry to a great
extent.
Foldable devices- this trend is occurring in smart phone industry. There are companies such as
Samsung who have already developed foldable devices. It will allow in making easy for user to
carry it in pocket and using it. the screen will remain long and this new feature will provide
innovative and new design for smart phone.
So, these trends will merge and shape smart phone market. It will result in designing of
new products with improved technology and high quality at affordable prices. Besides that, the
trends will force organisation to compete with each other.
Long term growth
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The upcoming years to have the exported level of growth over the different countries and
achieving the higher level of rates growth of the industry. This is excited to have the holding of
market shares for the industry. As company long term goal is to earn highest annual gross profit
in 2025. The company will be having the implementation of the strategic campaign all around
the major cities. There is be avoidance in the encasing the people as the time of the targeted
communities by delivering the filer and handbags in the target areas. So, the firm will be
launching the high quality smart phones indeed in becoming there preferred level of choice
among the target customers as every region will be having access to buying smart phone in direct
manner. This have the meaning there will be more willingness to have the spending of building
the business along with delivery the set level of goals and objectives.
Performance analysis
In this there are different strategies which are evaluated and their performance analysis is
done. it will enable in selecting suitable one for organisation. This is as below
Evaluating of strategy, decisions- it is necessary to evaluate strategy so that appropriate
decision is taken and changes are made into strategy. Besides that, it can be identified that
whether goals are attained or not and what strategy is suitable in it. moreover, performance
analysis is done on basis of which further strategies are developed. Similarly, in business plan of
developing smart phone it requires effective strategy and decision to be taken. Through that, it
becomes easy to select appropriate strategy and execute within business plan.. thus, there are
various decision taken within in that are described as below :
Competition strategy – this strategy is required to follow which state that how company will
compete in the market. It means that on what basis or what strengths does customers will be
attracted and sustain for long term is ensured. Thus, here it is evaluated that combination
strategy will be followed. A distinct message will be sent to customers and stakeholders.
Besides that smart phone developed will be affordable to all people. besides that, company will
compete by developing innovative and high quality smart phones. In that it will include 5G
technology and also customer data will be protected. The organisation will compete with
companies who develop premium smart phones such as Samsung, LG, Motorola, etc. hence, on
basis of innovation and quality competition will be done. In this decision will be taken based on
market condition and company vision and objectives. thus, then strategy will be developed
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Marketing strategy – for a business plan it requires an effective marketing strategy to advertise
and promote products. The success of company depends on how well they are able to do
marketing and create awareness in the market. If proper strategy is not developed then it leads
to failure of business. There are various media and sources available for marketing. So, it must
be selected by taking effective decision. Likewise , for present business strategy will be that by
developing campaign marketing is done. The purpose will be to create brand knowledge of new
smart phones within market. Apart from it, e marketing will be done as well on different
platforms. So, for that search engines will be used and PPC. In addition, on social media
platform and LinkedIn marketing will be done. through that awareness will be generated within
customers (Burnsand Dewhurst. eds., 2016). In this decision will be taken on basis of market
growth. the top management will be involved in this. However, short term strategy will be
developed.
HR strategy - it also requires an effective HR strategy so that employees are managed and
tasks are performed. Through that strategy it will consists that how training is to be given,
performance appraisal, etc. the strategy gives insight to maintain culture and manage staff.
therefore, in firm HR strategy developed is that maximum work load per employee is 100%.
There will be 10 full time employee, purchase HCM support system, 15000 euro, besides that,
bonus will be given to staff on basis of their performance. In this 5% is given for above target,
2% for on target and nil for below target. In addition, there will be effective training provided
to them. the time will be 0.3 FTE and created coaching program is developed . the recruitment
will be done in basis of global recruitment program. Here, plan will be developed based on
requirement of HR in firm. Thus decision will be linked with goals and objectives.
Logistics strategy- the organisation also requires logistics strategy to be developed to deliver
products in the market. It needs to have an effective supply chain so that smart phones are
delivered in market. Also, within strategy it contains capacity and how many suppliers are
engaged in it. thus, for current business plan logistics strategy is that delivery will be done
direct and IDC cost is 3250ppu. The turnover bonus is mentioned as 10%. Alongside, reliability
is 4 star of smart phone (Musyoka, 2018). Here, business plan is developed to ensure proper
supply of raw materials from suppliers. The decision are linked on basis of company
performance
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Finance- there require an effective financial strategy so that funds are allocated within business.
Also, in this it is mentioned that how much fund is needed and how it is allocated. In similarly
way for present business plan strategy is to retain 20% of turnover for future.
Product development – it is evaluated that there is need of strategy in order to develop a new
product. This is because it gives overview about how product is developed, what changes are to
be made, etc. so, a product development strategy is formed in which on basis of innovation and
technology new smart phones will be developed. With that customers will be attracted as well in
it. the plan is prepared on basis to develop specific product. Decision taken is based on goals and
market conditions
Future plan and recommendation
It is necessary to develop future growth plan so that according strategy is developed. This
provide a roadmap to company that where they want to go and how. Thus, for firm
recommendation is as below
Ansoff matrix
Ansoff matrix suggested that there were around two approaches regarding for the growth
development. That can be vary what is sold to the who is sold. For a firm the lowest risk strategy
is to sell its goods within existing markets as well as know about their consumers. This strategy
known as the market penetration as it the only way where market is growing.
Market development- it is know as the second stage of growth development within ansoff matrix
as such strategy can be used to target the new markets with the existing products. These are the
firms that continues to expand their brands all over the world and consider as a perfect example
of the market development. For the smaller entities this type of the strategy provides expanding
their current market to the other market where the goods or products are not compete currently.
Product development- It focuses on the firms that have the good market share within the at
present market and also needs to introduce new goods regarding expansion. Product
development is required when the firm has good consumer base as well as known that market
regarding current product has also reached saturation. Within such case market penetration is
consider as no longer practical (Khillari,2020).
Diversification- The strategy applies when the product is completely new as well as introduced
within new market. Here a new skill requirements is done both in the terms of the operations as
well as marketing that often needs substantial investment. It can also be achieved through
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acquiring a firm that are already operates within new marketplace. Also, there is rise in demand
of new smart phones in large number. also, there is intense competition in market. In addition,
the strategy will be followed focusing on target market. For that effective promotion and
advertising will be done in order to create a large customer base in existing market. Thus, for
company business growth approach used will be market penetration. This is because by
focusing on current market with existing product it will enable them to gain competitive
advantage and increase sales. Besides that, they will be able to earn high sales and profits
within market. In addition, it is necessary to focus on existing market as it allows in creating
strong brand image and then expanding in other markets. There are various markets which is
untapped. Hence, by entering into new market there lies growth opportunity. Also, there is rise in
demand of new smart phones in large number. also, there is intense competition in market. In
addition, the strategy will be followed focusing on target market. For that effective promotion
and advertising will be done in order to create a large customer base in existing market (Khillari,
2020).
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REFERENCES
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Enkel, E. and Sagmeister, V., 2020. External corporate venturing modes as new way to develop
dynamic capabilities. Technovation. p.102128.
Khillari, S., 2020. Decorated Apparel Market Analysis| Recent Industry Trends Report, 2026.
Khillari, S., 2020. Handmade Soap Market Analysis| Recent Industry Trends Report, 2026.
Lewis, R., 2017. Porter's Five Forces of competitive advantage.
Moreno-Izquierdo, L., Ramón-Rodríguez, A.B. and Perles-Ribes, J.F., 2016. Pricing strategies of
the European low-cost carriers explained using Porter's Five Forces Model. Tourism
Economics, 22(2), pp.293-310.
Musyoka, R., 2018. Market Analysis, Goals & Marketing Strategies (SEMIs.
Porter, M.M. and Niksiar, P., 2018. Multidimensional mechanics: Performance mapping of
natural biological systems using permutated radar charts. PloS one, 13(9), p.e0204309.
Schawel, C. and Billing, F., 2018. Portfolioanalyse. In Top 100 Management Tools (pp. 255-
257). Springer Gabler, Wiesbaden.
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