An Innovative Approach to Cycling Safety

COROS is launching the LINX smart cycling helmet with various innovative features that provide safety and comfort for cyclists. The helmet allows users to listen to music, make and receive calls, use voice-enabled GPS navigation, measure heartbeat and calories burnt, among other services. This product targets young adults and children by considering their health and daily needs. A financial plan has been developed to estimate the overall budget of the launch, as well as a market and competitors analysis to understand the company's position in the market and evaluate its strategy.

Running head: ENTREPRENEURSHIP
Entrepreneurship
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Executive Summary
This report highlights the launch of LINX smart cycling helmet by COROS for the Australian
population. The company has decided to launch the product keeping in mind the health status
and environmental condition of Australia. Keeping in mind the demand of the customers, the
company has incorporated wide range of features along with ensuring safety for the cyclists. The
report includes a budget in order to estimate the financial resources for the launch of the product.
Additionally, the report also includes the marketing plan of launching the product.

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Table of Contents
Introduction......................................................................................................................................2
Background to the idea....................................................................................................................2
Mission............................................................................................................................................3
Product offering...............................................................................................................................4
Market analysis................................................................................................................................5
Industry analysis..............................................................................................................................5
Competitor analysis.........................................................................................................................7
Threat of new entrants.................................................................................................................7
Threat to substitute products........................................................................................................7
Bargaining power of the suppliers...............................................................................................8
Bargaining power of the buyers...................................................................................................8
Threat of competitors...................................................................................................................8
Primary target market......................................................................................................................9
Marketing.......................................................................................................................................10
Product.......................................................................................................................................10
Price...........................................................................................................................................10
Distribution................................................................................................................................11
Promotion..................................................................................................................................11

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Financial plan.................................................................................................................................11
Startup expenses........................................................................................................................11
Startup assets.............................................................................................................................12
Startup Funding.........................................................................................................................12
Total funding required...............................................................................................................12
Total assets.................................................................................................................................13
Total liabilities...........................................................................................................................13
Critical risks...................................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
Entrepreneurship is defined as the steps undertaken by the business organizations for
designing, launching and running a business. Therefore, entrepreneurship allows the business
organizations to create something new, unique and innovative by adding value and devoting
significant effort and time. Entrepreneurship needs to consider the necessary social,
psychological and financial risks that will help in receiving suitable monetary rewards.
This report highlights the launch of LINX smart cycling helmet by COROS for the
Australian market. The report sheds lights on the idea of the product, the mission of launching
such a product by analyzing the industry and competitors market. The report also includes the
marketing plan for launching the product by selecting the target customers as well as evaluating
the critical risks in terms of the company and the product.
Background to the idea
Considering the Australian market, COROS is aiming to launch a health related product
for the cyclists. The company is launching LINX smart cycling helmet for the Australian
population. COROS is located in Perth, Australia. The Australian population prefers cycling
largely due to health benefit and consciousness. This is because the youth are Australia is highly
concerned about their health and the surrounding environment. Additionally, mountain cycling is
a sport that has gained high popularity among the Australian population in the recent years.
Apart from the local population in Australia, it has been seen that the tourists also prefers cycling
for exploring the scenic beauty of Australia. Therefore, the company is excited and largely
relying on the launch of the LINX smart cycling helmet (Caserta 2012).

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The main aim and idea of launching the LINX smart cycling helmet is to present smart
facilities to the cyclists and influence their decision of adopting cycling for both daily use and
exploring Australia. Additionally, the company aim towards providing utmost safety for the
cyclists. The use of the smart helmet will provide opportunity for the riders to explore the scenic
beauty of Australia and capture the moments. Therefore, the cyclists will be able to capture and
record the Australian environment while cycling rather than explore the beautiful country in cars.
As a part of exercising, many youths prefer cycling rather than hitting the gym or having
personal trainer. Therefore, the helmet also provides facilities such as measuring heartbeat and
recoding the number of calories burnt by the individuals thereby, influencing the purchasing
decision of the target customers. The features included in the LINX smart helmet are demanded
by the Australian market. Therefore, the company has launched the smart helmet with the
features that is highly demanded by the Australian population (Teng, Liang and Nguyen 2014 ).
Mission
The company wants increase the profit margin, business and customers by launching the
smart helmet in the Australian population. The helmet is one of its kinds due to the features such
as making calls, capturing and making videos, voice enabled GPS navigation and measuring
heartbeat and calories burnt. The company aims towards expanding the business by creating a
unique image in the eye of the customers. Therefore, the aforementioned unique features will
help the company in standing out in the Australian market from the competitors. Along with
providing such features, the company also aims towards ensuring safety for the customers.
However, the company also aims towards educating and enlightening the cyclists the proper use
of the helmet in order to avoid accidents due to the new features in the helmet. Such features
have not been incorporated in the helmet before therefore, the the innovation brought in by the

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company will help in engaging the customers in future. The sustainable business idea will help
the company in future for global and international expansion (Blanco, Cernicchi and Galvanetto
2014).
Product offering
The company has incorporated wide range of innovative and unique features in the LINX
smart cycling helmet. Ensuring safety is the primary motive of the company for the cyclists. The
company while manufacturing the helmet by considering the safety of the cyclists has used
polycarbonate shell with EPS impact foam. The company has used aerodynamics-optimized
ventilation up to 15 vents in order to decrease the level of sound for the cyclists. This will allow
the cyclists concentrate more on cycling rather than the external sounds (Sheard and Corsini
2012). This will help in mitigating the chances of accidents for the cyclists. The helmet is
launched in both medium and large size so that the product is available for the target customers
in the Australian market.
The various innovative facilities incorporated within the helmet include voice enabled
voice navigation, mobile facilities and music facilities. Bone conduction transducers with
sensitivity up to 100 decibel have been used for combating with voice calling and music listening
facilities (Abolfathi 2013). The customers for both daily and exercising purpose can use the
cycling helmet. Keeping in mind the requirement, the company has made the microphone wind
resistant. Therefore, the voice enabled GPS navigation will not be hampered due to the feature of
wind resistant microphone. The manufacturing material of the battery is lithium due to which the
lasting power of the battery is up to 10 hours per day. Therefore, less battery is exhausted due to

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the facilities such as listening to music, recording and making calls. The compatibility of the
helmet includes 4.0, iOS and android devices.
The weight of the helmet has been considered by the company as using heavy helmet for
extensive hours causing sprain and pain in the neck of the cyclists (Van Den Oord eta l. 2012).
Chances of shoulder and neck pain among the target customers are mitigated by the company by
manufacturing a light weight helmet Therefore, the weight of the LINX smart cycling helmet is
approximately 400 grams. Additionally, the consumer product safety commission certifies the
helmet. One year warranty has been provided by the company for the target customers keeping in
mind special requirements such as disfunctioning and breakage (Ang and Kristoffersson 2013).
Market analysis
Prior to the launch of the product in the Australian market, it is essential for the company
to conduct a thorough analysis in respect of the market and the competitors. This will enable the
company to decide and implement appropriate marketing strategies in terms of promotion,
distribution, innovativeness and pricing strategies. Market analysis will allow COROS to be
aware of their position compared to the competitors in the market.
Industry analysis
Political: Under the parliamentary democracy, Australia is governed by the federal constitution
monarchy (Bourke et al. 2012).
Economical: The economy of Australia is one of the strongest among the leading countries due
the presence of variety of natural resources. The main five principles based on which the

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Australian trade is conducted are unilaterism, non-discrimination, indivisibility, separation and
transparency (Hatfield-Dodds et al. 2015).
Social: Aborigines are the natives of the Australian population. However, English is the most
commonly used language in the country after the European colonization (Stoeckl et al. 2013).
Technological: The internet access by the Australian population has increased largely over the
years due to the technological exposure. The government of the country has been facilitating the
research and development largely due to the technological exposure (Jewell, Cherp and Riahi
2014).
Legal: Independence of judiciary, justice and rule of law forms the basis of the Australian legal
system. The country has one federal system as well as eight territory and state (Cheung, Chan
and Kajewski 2012)
Environmental: The country is rich in the natural resources and has large number of unique flora
and fauna. However, the major environmental challenges include ocean dumping, global
warming and conservation of marine life (Chan et al. 2012).
Based on the PESTLE analysis of the country, it can be suggested that the country is
facing environmental challenges largely. Extensive uses of technological advancements are
hampering the entire ecosystem of the country. Moreover, the country has a strong economy and
stable economy. Therefore, the launch of LINXsmart cycling helmet is a great choice of product
for the Australian market.

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Competitor analysis
The use of Porter’s five forces allowed the company to analyze the competitors in the
Australian market.
Threat of new entrants
The potential threats for the new products that are entering the market are the entry
barriers (E Dobbs 2014). The operational scope and the economy combine to form product
differentiation, customer loyalty, structure of the cost and the switching cost. The helmet
manufacturing industry is a large industry at the global scale thereby, including high capital cost
resulting in fixed high costs. The helmet manufacturing industry encounters high economy
leading to effective management of the cost capital. This helps the companies to manage their
financial resources effectively and use it resources wisely (Yunna and Yisheng 2014). COROS
aim towards presenting smart facilities to the target customers as well as ensuring safety. The
innovative and unique features incorporated by the company in the helmets will help the product.
The latter factor is dependent on the company and its management techniques, as the expansion
rate of the helmet manufacturing industry is much slow. This is due to the ignorance about the
positive health and environmental impact of cycling that influences the purchasing decision of
helmets among the Australian population.
Threat to substitute products
According to Baum (2013), only global recession hampers the purchasing power of the
products by the customers. The role of the substitute product is to reduce the cost or charging
higher price for the product. Based on the innovative features of the helmets, the companies in
the helmet manufacturing industry can compete with each other. Therefore, the competition

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between the helmet manufacturing companies is based on the unique facilities provided to the
customers along with ensuring safety for cyclists.
Bargaining power of the suppliers
The suppliers of the helmet manufacturing industry needs to emphasize more on the
customer demand rather than considering the command that is shared by the business. This will
help in gaining power for the manufacturing industry. The customers are vulnerable to the cost of
the product and the product differentiation. Therefore, the customers might not prefer to spend
extra amount because of the customer demand. Additionally, the features need to enhance the
quality and image of the LINX smart cycling helmet (Lee, Kim and Park 2012)
Bargaining power of the buyers
The purchasing decision of the product by the customers might affect the bargaining
power of the buyers of the helmet manufacturing industry. The target group of buyer of the
LINX smart cycling helmet includes the individuals concerned with fitness, customers using
cycle on a daily basis and the tourists. Targeting other customers will incur huge loss thereby;
the strategy is restricted to the specific target groups (Marshall 2013).
Threat of competitors
The size and number of the competitors in the market determines the level of
competition. When it comes to switching cost and product differentiation, the market tends to
become fierce. The competition focuses more on costs that are not fixed (Perdana, Roshetko and
Kurniawan 2012)

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Primary target market
Targeting the group of customers is essential and considered as a wise decision when a
company launches a new product in the market (Hollensen 2015). Targeting the customers
allows the company to focus more the demands and needs of the customers before manufacturing
and launching the product. The customers are attracted towards the products that fulfill their
present needs and demands. Based on the demands of the customers, the company develops and
implements promotional, operational and pricing strategies. The main customers targeted by the
company are the children, young adults and the tourists. Reports suggest that majority of the
Australian population suffers severe health complications. This is because the population is
highly dependent on unhealthy diet and lifestyle. Majority of the population relies on fast food
and foods with high calorie content. Therefore, majority of the Australian population suffers
health complications such as obesity. However, recently, the young adults and the children are
becoming more health conscious to keep up with the latest trends. Therefore, targeting the young
adults and the children are justified for the company. The number of additional features
incorporated by the company in the helmets will influence the purchasing decision of the target
customer. The target customers will be able to avail the various facilities that is demanded highly
within the population (Muhamad, Melewar and Faridah Syed Alwi 2012).
Additionally, targeting the tourists is a competitive business strategy implemented by the
company in order to target the secondary customers. Large portion of the Australian economy is
contributed by the tourism sector. The tourists come from different parts of the world that might
have helmets that lack such innovative facilities (Tapp and Spotswood 2013). Therefore,
targeting the tourists will allow the company to create and unique image in the eye of the
customers thereby, invading the global market.

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Marketing
As commented by Khan (2014), effective marketing allows the company to communicate
their product to the target customers. Therefore, implementing 4 P’s of marketing mix will allow
COROS to communicate the innovative and unique facilities of the product to the target
customers. This will allow the company to create a unique image in the eye of the customers and
stand out from the competitors in the market. Sales maximization will allow COROS in profit
maximization and business expansion.
Product
COROS is launching LINX smart cycling helmet for the Australian customers. The
product launched by the company differs from other products in the market based on the features
provided by them. The helmet is manufactured by polycarbonate shell with EPS impact foam
due to which it weighs only 400 gms. The wide range of facilities incorporated within the helmet
includes making and receiving calls, video recording, and voice enabled GPS navigation along
with listening to music and measuring heartbeat and number of calories burnt. The wide range of
features can influence the target customers in using cycle at a daily basis, as this is beneficial
both for the individuals and for the environment.
Price
According to the financial status of the target customers, COROS has implemented
penetration-pricing strategy for the customers. Therefore, the company has decided the starting
price of the LINX smart cycling helmet is $200. The company has kept the price to the minimal
for the target customers initially, as this will help in convincing the target customers for using the
helmet. Therefore, minimal price will not force the target customers to think much before

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investing and purchasing the product. However, the company has kept minimal profit for them
(Sije and Oloko 2013).
Distribution
COROS has decided to sell the product from the stores physically. Therefore, the helmet
will be sold from the various outlets that are selling sports and gym equipments. Distributing the
helmets from the outlets will be beneficial for the company as this will them in engaging the
customers. The target customers will be able to evaluate the innovative features personally
before purchasing the product. Moreover, selling the products from the stores will allow the
customers to know how to use the various functions of the helmet. Additionally, the companies
will also sale the product online; this will allow the company to reach out target customers where
the product is not present physically (Spann, Fischer and Tellis 2014).
Promotion
As the part of the promotional strategy, COROS can organize campaigns that will aware
the target customers about the benefits of cycling both in terms of individual basis and
environmental basis. Then the company can associate the features of the helmet as a promotional
strategy. Additionally, the company can organize a grand opening for launching the product
along with broadcasting the launch live in social media. This will help the company in engaging
more customers hereby, influencing the purchase decision (Aliata et al. 2012).
Financial plan
Startup expenses
Legal $1,300

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Brochures $3,580
Consultants $3,000
Insurance $2,400
Rent $4,400
Store setup $10,000
Other $2,500
Startup assets
Cash required $67,123
Startup Inventory $16,027
Other current assets $0
Long term assets $59,170
Startup Funding
Startup expenses to fund $27,680
Startup assets to fund $142,320
Total funding required
Non-cash assets $75,197
Cash requirement $67,123
Additional cash raised $0
Cash balance on starting date $67,123

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Total assets
Current borrowing $10,000
Long term liabilities $20,000
Accounts payable $0
Other current liabilities $0
Total liabilities
Planned investment $140,000
Critical risks
There are significant risks associated with the launching of LINX smart cycling product.
The company has predicted that the product might fail to attract the customers to a certain extent.
This is because that the innovative facilities might at against the aim of the product. The parents
of the children and the young adults might be highly concerned with the safety of the children.
The parents might think that the number of facilities such as listening to music and video
capturing will distract the children and the young adults. As they will be more mesmerized with
recoding the scenic beauty or making calls while cycling, their concentration will be hampered.
As the target customers are not financially independent, unable to convince, the parents might be
a critical risk.
Another potential risk includes that the company might fail to convince the target
customers to opt for cycling by demonstrating the health and environmental benefits. The

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children and the young adults might prefer availing comfortable transport facilities such as cars
and buses.
Conclusion
In this report, it can be concluded that COROS is launching LINX smart cycling helmet
that consists of various unique and innovative features. The helmet stands out from other helmets
in the market as it provides unique facilities along with ensuring safety for the cyclists. The wide
range of services incorporated by the company within the helmet includes listening to music,
making and receiving calls, voice enabled GPS navigation along with measuring heartbeat and
amount of calories burnt. The company has targeted the young adults and the children by
considering their health and daily needs. In order to estimate the overall budget of the launch of
the product, a financial plan has been developed. The report also highlights the market and
competitors analysis in order to understand their position in the market and evaluate the strategy
of the competitors. In addition to, 4 P’s of marketing plan has been developed for launching the
product by COROS.

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