Niche Electronic Technology Business Plan - Desklib

This business plan proposes the establishment of Niche Technology Company, which will produce and sell quality electronic gadgets to customers at affordable prices. The plan covers company overview, mission, vision, business model, personnel, products and services, competition analysis, market research, marketing mix, and more.

Running head: NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 1
Management in Engineering: Niche Electronic Technology Business Plan
Student Name
Institutional Affiliation

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 2
Table of Contents
Executive Summary.....................................................................................................................................4
Company Overview.....................................................................................................................................5
Company Summary.................................................................................................................................5
Company History....................................................................................................................................5
Location of Niche Technology Company................................................................................................5
Mission....................................................................................................................................................6
Vision......................................................................................................................................................6
Business Model...........................................................................................................................................6
Personnel.....................................................................................................................................................6
Products and Service...................................................................................................................................8
Product Description.................................................................................................................................8
Competition Analysis..............................................................................................................................8
Sourcing of the Products..........................................................................................................................9
Technology..............................................................................................................................................9
Market.........................................................................................................................................................9
Market Research........................................................................................................................................10
Marketing Mix...........................................................................................................................................10
Price......................................................................................................................................................10
Product..................................................................................................................................................11
Promotion..............................................................................................................................................11
Place......................................................................................................................................................11
Sales Forecasts..........................................................................................................................................12
Operations.................................................................................................................................................14
Profit and Loss..........................................................................................................................................15
Cash Flow Forecast...................................................................................................................................17
Break Even Analysis.............................................................................................................................18
SWOT Analysis of Niche Electronic.........................................................................................................19
Strengths................................................................................................................................................19
Weaknesses...........................................................................................................................................20
Opportunities.........................................................................................................................................20
Threats...................................................................................................................................................20

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 3
PESTLE Analysis......................................................................................................................................21
Political.................................................................................................................................................21
Economic...............................................................................................................................................21
Socio-Cultural.......................................................................................................................................21
Technological........................................................................................................................................22
Legal......................................................................................................................................................22
Environmental.......................................................................................................................................22
Porter’s Five Forces...................................................................................................................................23
Threat of New Entrants..........................................................................................................................23
Competitive Rivalry..............................................................................................................................23
Bargaining Power Customers................................................................................................................23
Threat of Substitute Products.................................................................................................................23
Bargaining Power of Suppliers..............................................................................................................24
Codes of Practices and Industry Standards................................................................................................24
Intellectual Property Rights.......................................................................................................................24
References.................................................................................................................................................26

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 4
Executive Summary
There is often the development of technology in line with the electronic products worldwide.
Although, the products have continued to mushroom in the market, still the products which reach
the customers have not met the customers’ demands 100%. The mainly argument on the
insufficient customers satisfactory and meeting the customers’ requirements have been the focal
point. Murad & Ali (2015) reasoned that meeting the customers’ demands and offering quality
services to the customers is a fundamental requirement for the business to record profitability
and have good customers’ relationship and retention. Preferably, the Niche Technology
Company is developed on this context, to provide quality electronic products to the customers. In
fact, the company main aim is to sell and deliver quality electronic gadgets to the customers at
affordable prices (Ross, & Byrd, 2015).

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Company Overview
The overview of the company in line with this proposed business plan is an essential and vital
aspect in the analysis. This context mainly covered in various subsection as depicted in the
following discussions.
Company Summary
Niche Technology is an electronic firm which produces and sells the electronic gadgets ranging
from household appliance to industrial equipment. Some of key products which the company
sells to households include air conditioners, refrigerators, microwaves, security lights and
washing machines. On the other hand the company deals in a wide range of both the commercial
and industrial production of electronic gadgets such malodor controls, sensors, instrumentation
gadgets, fragrance, Televisions, HDD and DVs recorders as well as security cameras and digital
alarm signals. The production of these items is based on the market research, trends as well as
the feedback received from the clients. Additionally, the Niche Technology not only deals with
the production of the electronic gadgets but also the selling of these products to the clients
directly. In fact, the company discourages the use of middlemen in the business but focuses as
customers’ oriented company. Thus, the production of all the electronic products is aimed at
giving the customers the best products through the use of quality international standards such the
IS0 9000 (Ross, & Byrd, 2015).
Company History
This company is intended to be set on 27th June, 2018 as a partnership business venture. This
company is intended to deal with the production of electronic products such the home based
appliances and sell them either directly to customers or through wholesalers and retailers. The
two main key partners in this business include Johansson Muhammad and Clifford Lone. It will
be registered as the legal entity as per the stipulations of the partnership regulations and act of
Saudi Arabia Country. Johansson Muhammad and Clifford Lone are the key stakeholders and
owners of the company with equal shares as per the business plan (Nielsen, Chambers, & Farr,
2015).
Location of Niche Technology Company
The company will be located in Saudi Arabia, in the city headquarter. It will be situated at the
Broadway Office, along the Middlesbrough Street. All the departmental functions and the board

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meetings will be discharged in this place. The proposed area has a capacity to accommodate all
the departments and the offer services proposed imminently.
Mission
Hastening good customers’ relationship as well as retention, through the production of quality
electronic products
Vision
To increase and enhance quality products and satisfactory services to customers
Business Model
The company is set to be established at an estimate cost of about $500000 which will cover both
the operations and the overall purchasing of the production equipments and raw ingredients.
Additionally, there is valuation for the insurance of about $5000 and the establishment of the
office and refurnishing of the premises at a cost of $8000. Thus, the total expected amount for
the establishment of the company is appraised at about $6300. However, the starting capital for
the company of about 85% of the total amount will be raised by the key stakeholders (Ross, &
Byrd, 2015). That is Johansson Muhammad and Clifford Lone who will raise $535500. The
amount will be contributed equally by the two individuals who will give 50% each. Moreover,
the rest of about 15% will be generated from the debentures and selling of shares. It is important
to note that the amount will be generated using systematic ploughed profit back method as far as
the business operations are concerned. Additionally, this money is what will be used to run the
business operations for one financial year (Ross, & Byrd, 2015).
Personnel
The personnel to be employed in this company to discharge various functions include the head of
all the operations and the management of the company. The individual is the top most in line
with the ranking and termed as the managing director. The general manager of the company will
be the head of production of the electronics which the company is intended to produce. Thus, the
general manager department will incorporate the engineering department, quality check and
control as well as the production technical personnel. The other departments will have their
duties as outline in the company policy. In instance, the business strategy will conduct the

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 7
market research and analysis and ensure that the electronic gadgets manufactured are of high
standards and meets the customers’ demands and satisfaction.
(Nicholas, & Steyn, 2017). Thus, the structure for the discharge of the company duties and
related issues mainly summarized as depicted below
Additionally, the proposed personnel plan for the company mainly summarized as shown below
PERSONNEL PLAN
2018 2019 2020
Director managing $100,348 $100,000 $100,000
General Manager $130,000 $125,000 $130,000
Finance Manager $125,500 $138,400 $138,400
Human Resource
Manager
$100000 $105,000 $110,000
Business Strategy and
Marketing Manager
$75000 $90,000 $110,000
Technicians $70000 $82000 $90,000

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Operations, Supply
Chains and network
management
$130000 $160000 $180,000
Other $75000 $76000 $78000
TOTAL PEOPLE 56 65 100
Products and Service
The evaluation and appraisal on the products and service category mainly studied in various
subsections (Kotler, 2015). Some of the crucial sections considered under this category mainly
include
Product Description
The key and vital products as well as services which the company will be dealing with mainly
pose as the electronic merchandizes. Some of the key electronic products incorporated and
targeted mainly established as per the customers’ requirements. These include kitchen
appliances, home entertainments as well as commercial applications. The kitchen appliances
include refrigerators, microwaves and cookers. On the other hand, a home entertainment system
which the company deals with is home theatres. Home theatre is a makeable software application
which supports and hastens the music playback, photo, and video as well as helps in recording
the various videos in line with the house party and related activities. Moreover, the commercial
and industrial company applications which Niche Technology proposed to offer include
instrumentation controls, pneumatic systems and array techniques (Gumussoy, & Koseoglu,
2016).
Competition Analysis
This is a core and vital aspect which is considered in the establishment of the Niche Technology
in Saudi Arabia. Since, the company is mainly focusing on the production of electronic products

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 9
and marketing of the products, this firm will incorporate and consider the design techniques as
far as the products which they incorporate in Niche Technology Company site is concerned.
Sourcing of the Products
The sourcing of the raw ingredients to be used in the production is not a problem for the Niche
Technology Company. In essence, the Niche Technology is objective that they will produce
quality products in time which will satisfy the customers’ demands. However, advance booking
and scheduling for the product is highly encouraged as this will enhance and and ensure that the
customer gets the product they want in time without any delay. Also, the customers are
encouraged to give an early booking in case they need specific products with specified product
specifications as this will enable the company to produce and deliver product in time.
Technology
Over the past decades, most manufacturers have produced electronic gadgets using standards
specifications and protocols which have earned less income and accounted for the various low
incomes different companies. The low incomes primarily associated with the lack of evaluation
of the market segmentations and taking keen note of the customers’ demands and requirements.
Although, some of these products have high quality specifications and features, still they earn
low income due to lack of customers’ demands and requirements. Thus, this company aims at
come up with the best products for the various clients basing on the market segmentation. Thus,
with establishment of this business, it is expected that the customers will get more developed
appliances in line with electronic gadgets. For instance, the sensors and PLC, CCTV Cameras,
Industrial instrumentations and Microprocessors developed will have higher processing speeds
which offer better services in the long run. Forrester Research studied and reported that the use
of technology have increased electronic application in the United States of America by at least
7% as per the analysis conducted in 2010. In essence, various homes have adopted the technique
and thus, there is increased security systems, heat, lights as well as appliances which utilizes the
internet tap and online platforms.
Market
According to Mullard (2018) market segmentation and analysis establishes that technological
application is a vital aspect and specification which must be incorporated in the analysis. The

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 10
analysis for the PLC, CCTV Cameras, Industrial instrumentations and Microprocessors in both
the pneumatic and home based appliance is a vital and key element which is concerned
decisively. Over the past decades, approximately 200 million are using and consuming the
electronic gadgets both for the household chores and for the business purpose worldwide. The
consumption rate for the electronic product is imminently growing and the market price is
established to be at about 56% annually. Thus, the introduction of the Niche Technology
Company will even increase the sales while at the same time increasing production and customer
satisfaction in line with the electronic products.
Market Research
Niche Technology Company will focus mainly on the electronic products as well as marketing of
these items and this is aimed at increasing the demand for the products. Moreover, the product
system to be adopted in the company aims at enhancing the built image and branding of the firm.
This will ensure that there is highest cutting-edge in terms of technology and this will not only
increase the demand and profitability margin for the firm but also for the various product
makers. Also, the company will set the prices to conform and align with the various technologies
developed. To reach a larger market, the company also focus on developing an advertising
platform with decisive image-bolstering and this will ensure that various market segments are
served with the trade publications (Grimpe, Sofka, Bhargava, & Chatterjee, 2017).
Marketing Mix
In the market mix, four key aspects are considered in line with the Niche Technology business
plan. The four critical areas considered mainly include the product, the place, promotion as well
as price (Hisrich, & Ramadani, 2017). These four elements mainly evaluated as follows
Price
The makeable pricing projection is a fundamental element which is considered in this business
plan. In fact, this business plan proposes that the price will be determined in terms of production
costs. The pricing for the commodities will be projected at about 40% in line with the overall
sales price of the production cost. The pricing aims at putting the company at a top-notch as far
as the other competitors are concerned. For instance, the pricing for telecommunication,

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 11
instrumentation, and industrial equipment are currently expensively and thus, most customers
cannot afford. Thus, the company aims at wavering pricing for installation, technical
specifications as well as the overall configurations for the systems purchased from the company.
In doing so, more customers are targeted to shift and take the lead in this monopoly and thus,
increasing the overall sales (Abdul-Hamid et al. 2017, June).
Product
The company is mainly dealing with the electronic appliances, control systems and
instrumentation devices. Moreover, the company offers maintenance services to all the products
purchased from the company and which have the maintenance warrant.
Promotion
Product promotion is also another key aspect which the Niche Technology Company considers
in the market mix analysis. In fact, a proposal for the year around advertisements is decisively
explored and noted. In essence, the advertisement will be conducted throughout the year. Various
platforms will be used to market the product and the company portfolio. Some of these platforms
include YouTube ads, social media more so the Facebook pages, main stream media such as the
television, newspapers and radio as well as different publications like journals, articles and
website links. Moreover, the company sets to conduct an elaborate advertisement for the various
services and products. It is set to be conducted imminently without having any exaggerations but
via preferably offers and discounts. Furthermore, the firm depicts on giving all the customers
operators manual and a warrant of at least 16 months for every product they purchase (Andrews,
& Shimp, 2017).
Place
Although, the company is situated in Saudi Arabia, this company will sale their products to both
the locals and to overseas market. In fact, the firm is set to run and operate for 24 hours and
thus, customers will be able to purchase products from the Niche Technology Company at any
moment. Furthermore, shipping and distribution of products is set to be carried out with a period
of less than three working business day (Odediran, 2017).

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Sales Forecasts
The Niche Technology target to sale over 400 units and these sales is aimed to be achieved with
little input of both the management and the stakeholders. These sales will denote as the first
quarterly and demarcated at the end of this 2018. The platform sets to register 1040 sales goal of
the company in terms of units at the end of the year (Mullard, 2018). Moreover, the company is
set to record an incremental on the sales at the end of the second and this is estimated at about
3000 while that of the third year will be depicted at 9000 units. Although, the market forecast
sounds to be unrealistic but it will be achieved based on the company logistics and outlined
steps. Thus, these sales will depict a price set at estimated 2.5 times the overall variable costs
and therefore, making the gross profits to be approximately in the first year £1 million and about
£9 million at the end of the third year (Municipality, 2013).
2018 2019 2020
Electronic sensors 1,040 3,000 10,000
Microprocessor 1,040 3,000 10,000
Household
electronic and
appliances
1,040 3,000 10,000
Other 38 0 0
Total Unit Sales 3,158 9,000 30,000
Unit Prices 2018 2019 2020
Electronic sensors $412.00 $412.00 $412.00
Microprocessor $610.00 $610.00 $610.00
Household
electronic and
appliances
$457.00 $457.00 $457.00
Other $1,995.00 $1,995.00 $1,995.00
Sales

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Electronic sensors $428,480 $1,236,000 $4,120,000
Microprocessor $634,400 $1,830,000 $6,100,000
Household
electronic and
appliances
$475,280 $1,371,000 $4,570,000
Other $75,810 $0 $0
Total Sales $1,613,970 $4,437,000 $14,790,000
Direct Unit Costs
Electronic sensors $165.85 $165.85 $165.85
Microprocessor $244.35 $244.35 $244.35
Household
electronic and
appliances
$183.85 $183.85 $183.85
Other $630.00 $630.00 $630.00
Direct Cost of
Sales
Electronic sensors $172,484 $497,550 $1,658,500
Microprocessor $254,124 $733,050 $2,443,500
Household
electronic and
appliances
$191,204 $551,550 $1,838,500
Other $23,940 $0 $0
Subtotal Direct
Cost of Sales
$641,752 $1,782,150 $5,940,500

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Operations
The various costs associated with overall company operations mainly summarized as shown in
the table below (Masari, Gianfrate, & Zanetti, 2014).
2018 2019 2020
Advertising $75,000 $150,000 $250,000
Documentation Printing $1,200 $1,200 $1,300
Electronic Testing Equipment $6,000 $7,800 $9,000
Merchant Services 3% 3% 3%
Computer Parts $6,500 $6,500 $6,500
Professional Fees $1,150 $1,560 $1,580
Computer Software $2,400 $2,400 $2,600
Office Supplies $4,200 $4,200 $4,200
Travel $200 $200 $200
Miscellaneous $2,400 $2,400 $2,400
Leased Equipment none none none
Telephone $3,000 $3,300 $3,500
Utilities $1,200 $1,400 $1,600
Insurance
Depreciation $1,000 $1,000 $1,000
Health Care
Contract/Consultants $26,000 $26,700 $27,600

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Profit and Loss
In essence, there is an imminent projection on the overall gross profit estimated to be
earned with the duration of the first three years. In fact, the company believes that it will record a
mushroom profit in 2018 and this will grow substantially in the succeeding years. Moreover, the
estimated profit and loss analysis for the company depicts that the overall net profit will be high
despite spending some money on the advertisement and even using sale persons (Warschauer, &
Sciglimpaglia, 2012).
PRO FORMA PROFIT AND LOSS
2018 2019 2020
Sales $1,613,970 $4,437,000 $14,790,000
Direct Cost of Sales $641,752 $1,782,150 $5,940,500
Other $0 $0 $0
TOTAL COST OF
SALES
$641,752 $1,782,150 $5,940,500
Gross Margin $972,218 $2,654,850 $8,849,500
Gross Margin % 60.24% 59.83% 59.83%
Expenses
Payroll $155,848 $313,400 $618,400
Sales and Marketing
and Other Expenses
$125,793 $249,966 $438,955

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 16
Depreciation $1,000 $1,000 $1,000
Leased Equipment $2,628 $2,628 $2,628
Healthcare $10,272 $25,650 $51,360
On-line Services $1,225 $1,225 $1,225
Telephone $2,964 $3,500 $4,500
Utilities $1,200 $1,200 $1,200
Insurance $1,440 $1,600 $2,000
Rent $12,000 $18,000 $21,000
Payroll Taxes $14,026 $28,206 $55,656
Other $0 $0 $0
Total Operating
Expenses
$328,396 $646,375 $1,197,924
Profit Before Interest
and Taxes
$643,822 $2,008,475 $7,651,576
EBITDA $644,822 $2,009,475 $7,652,576
Interest Expense $7,030 $10,450 $3,700
Taxes Incurred $277,004 $869,141 $3,326,826

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 17
Net Profit $359,787 $1,128,884 $4,321,050
Net Profit/Sales 22.29% 25.44% 29.22%
Cash Flow Forecast
Niche Technology Company is expected to record dramatic growth in line with the financial
needs and this will be depicted for both the substantial receivables and the inventory. For both
the 2019 and 2022, the virtually needs will be supported via the application of the accumulated
earnings (Shina, 2012). In fact, the Niche Company will have to rely on the credit as the
imminent cash source in the first year and this will continue until the company starts to record
the turn over cash in line with the receivables. In essence, the projection for the company poses
the need of about $210,000. Thus, the projection for the overall year one shows a stern prime
quality for both the customers and the commercial banking credits. Thus, this should be used to
establish current asset with minimal inventory reliance in the long run (Duval-Couetil, Reed-
Rhoads, & Haghighi, 2012). On the other hand, there are various general assumptions which are
considered in line with the cash flow forecast for the company. This is mainly summarized as
shown in the table below
General Assumptions
2018 2019 2020
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 43.50% 43.50% 43.50%
Other 0 0 0
The expected cash flow estimation can be summarized and shown in a diagram as depicted
below

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 18
Figure Estimated Net Cash Flow and Cash Balance for the Company
Break Even Analysis
In this analysis, it is expected that the first sales will be carried out in this 2018 and in the
process at least 140units will be sold monthly (Alhabeeb, 2012). Moreover, the second batch will
be ready in the mid of next. In essence, the company estimated that the second batch will have a
more developed version and smarter systems which will attract more sales (Scheer, 2012). Thus,
using the this probability, a break-even analysis is depicted as per the figure below

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Figure showing the estimated analysis for the break-even
SWOT Analysis of Niche Electronic
Based on logistics, the following will be the company’s SWOT analysis;
Strengths
Niche electronic company will have the ability to sell most of its products, and this will
enable the company to access a wider market hence generating a massive amount of profits.
Also, it will have a highly visible website which will attract huge traffic of customers in the
market. Such a website will allow the company to receive complaints and feedback from the
customers and make necessary improvements to their products (Helms, & Nixon, 2010). The
other strength is that it will have access to a large pool of skilled and experienced owner
operators who will help in the running and management of movement and distribution of the
electronic products and this is likely to reduce delays in the supply of a variety of items to the
customers. Additionally, Niche electronic company will have very high gross margins, and this
will enable it to sufficiently cover for various costs (Awais, & Samin, 2012). Lastly, there are
high barriers to entry in the market, and this will be attributed to the monopolistic situation
which will be created in the market by the firm and hence will control any prevailing market
situation.

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 20
Weaknesses
The one critical weaknesses of the company will have is that there will be competition in
the market which will be created by many competitors already in the market providing similar
electronic products and hence will reduce the profits to be generated from sales of the items. The
other weakness will be on high transportation costs often which will be involved in the
distribution of the product directly to the customers since some of the clients are scattered all
over the country (Kim et al.2013). Also, the company will be faced with limited flexibility in
pricing, and hence it will not easily alter their prices to maximize profit generation. Another
weakness is that the company is likely to be exposed to hackers of their when dealing with the
shipping of the product (Brooks et al. 2014).
Opportunities
There are a variety of opportunities which will be created in the company. For instance,
Niche Company will have the chance to continue to expand its online sale, and this will be due to
the huge competition in the offline selling of electronic products. Further, there will be an
opportunity to establish more distribution stores since it has the financial capability and the rising
number of customers across the country whose demands for the electronic products have
increased in the recent past (Bas, 2013). The other opportunity will be on the development of
proprietary products which will be sold using the brand name of the firm, and this will grant the
company the power to control the quality of their products and thus ensure the best quality for
their electronic products. Apart from the above mentioned opportunities, the company will have
the opportunity to acquire some additional capital for expansion and growth, and this will be
attributed to the large profits it is likely to generate hence will easily pay for any liability due
(Wheelen, & Hunger, 2011).
Threats
There is a number of threats which Niche electronic company will be exposed to. Such threats
will include, changes in regards to laws and regulations which will impact the company
performance negatively. The other threat will be on the increased insurance costs for the firm,
and a lot of money will be spent on paying premiums rather than on expansion and growth of the
company (Lee, & Walsh, 2011). Another threat will be due to the increased price inputs which

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 21
will result to upward pricing, and this has affected the amount of profits generated by the
company since some of the customers will find it difficult to purchase the electronic items.
PESTLE Analysis
Political
The country where Niche electronic company will be situated is stable, and this,
therefore, will create an enabling environment for business to thrive. The cost of manufacturing
and labor provided to the company will, thus, be lowered allowing the firm to meet a variety of
demands of their customers (Khan et al. 2015). However recently there has been certain political
upheavals in some of the major operational areas of the company which will have a significant
impact on their operations which will lead to economic losses. Also, the company will be faced
with certain political pressures mostly in Saudi Arabia because of the unstable political
environment, and this is likely to affect the operations of the firm in such regions. The company
will, therefore, reorient its strategies.
Economic
Recently there has been an economic recession in the country and this greatly affected the
level of manufacturing and sales of the company's products negatively. With such a recession in
the economy, the purchasing power of the customers will be affected adversely in most of the
developing markets, and this will, therefore, compel the company to seek more customers in the
emerging markets (Tanaka, 2013). Additionally, there are numerous economic policies which
will make it difficult to penetrate through other foreign markets thus limiting the number of
customers it will serve. In conclusion, the macroeconomic environment in which the firm will be
operating in will be volatile and uncertain will force it to reorient the strategies it applies in the
distribution and manufacturing if its products (Josh et al. 2012).
Socio-Cultural
The company aims at serving diverse customers all over the country. However, this will be
hindered by different values and beliefs of certain communities. Such beliefs and values will
have a great impact on the buying patterns on purchasing patterns, the female share of the market
and brand loyalty. There will also be pressure mounting on Niche electronic company to
continually keep up with the corporate social responsibility with the aim of maintaining the

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 22
public relegation status (Newton, 2014). Since the company will be operating in an environment
where there are a variety of customers with different tastes and preferences, it will have to adjust
some of its strategies to penetrate the market easily (Hasan, 2013).Further, with time the
company will be operating globally, and hence it will have to adopt a global strategy in the
emerging markets.
Technological
Technology plays a critical role in the engineering sector hence has to be checked more often. It
constantly changes, and Niche electronic company will be expected therefore to utilize the
modern technology during the manufacturing of their products (Borowski, 2011). The company
will be applying advanced technology to the items manufactured, and this will enable it to gain a
competitive edge over its key competitors due to its designing ability of electronic products
(Hasan, 2013). The company aims to be one of world’s leading innovative firms and hence it will
have the opportunity to harness the power of technology. Niche electronic will, therefore,
dominate its rivals and critical competitors in terms of innovation and technology.
Legal
There are a variety of legal laws and regulations which guide the performance of the company.
For example, there are heavy penalties for imitation of another company's products, and hence
Niche electronic will produce its brand of electronics to win the public perception and approval
of its products (Hasan, 2013). The other legal matters which the company will have to abide by
will include those relating to working conditions and labor wages.
Environmental
The increased rate of ethical consumers in the world brands of items who prefers to have
his or her brands of electronic items to be manufactured in a more socially responsible
environment. Niche electronic company will thus manufacture products to meet up with the
standards of an ethical consumer. It will, therefore, create a conducive environment which will
not interfere with the performance of various employees by paying them adequate wages
(McKay, 2015).

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 23
Porter’s Five Forces
Threat of New Entrants
The company is likely to be faced with the threat of new entrants in the market in the near
future even though large capital is required for advertising, branding, and creation of product
demand. It will, therefore, force the company to institute certain barriers to entry such as
economies of scale, well-defined brands, access to inputs, economies of scale and cost
advantages (Dobbs, 2014).
Competitive Rivalry
The competitive rivalry will is a force which evaluates the intensity of competition in the
marketplace. The rivalry competition is likely to be high in the market where Niche electronic
company will be operating. Such will be attributed to the already existing electronic companies,
and this will affect the amount of cost incurred by the company in promotion and marketing of
its products (Vining, 2011). High rivalry competition increases the price and advertising of items
which hurts the operations of a business. Some of the products to be manufactured by Niche
electronic company is likely to be copied in the near future by other similar firms.
Bargaining Power Customers
It looks at the ability of various customers in the market which is likely to impact the quality and
pricing of items. The company will, therefore, look into buyers powers by taking into
consideration the number of buyers in the market, cost of shift of buyers from one supplier to
another and the significance of each of the buyers(Aldehayyat et al.2011). Niche electronic firm
will focus on only those powerful buyers to enable them to dictate some of the terms of the
business transactions. With such a strategy, the company is likely to enjoy a strong brand
recognition.
Threat of Substitute Products
The force focuses on how the customers are likely to shift from a particular business
product to that of a competitor. The company will, therefore, focus on manufacturing of those
electronic products which will meet the basic needs of the customers in a different way
(Marshall, 2013). This will be attained through analysis of the quality and prices of other
companies producing similar items to reorient the prices and quality which will eventually

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 24
satisfy a variety of needs of the customers to prevent them from switching to other electronic
firms. The various aspects of the threat of substitutes which the firm will have to look into will
revolve around customer’s inclination to change and switching costs (Marshall, 2013).
Bargaining Power of Suppliers
It analyses the amount of power a business supplier has and hence can control prices of various
items. The company will have wide dozens of suppliers and manufacturers across the country to
enable it to have control over the prices of the items it will manufacture to generate a huge profit
(Aldehayyat et al. 2011).
Codes of Practices and Industry Standards
There are various codes of practices in line with the business operations and product handles
which have to conform to industry standards. Some of the key elements which must conform and
have to be considered mainly include
i. The minimal litigation on the consumers’ protection and this stipulates that all the
prescribed regulations in line with the consumptions must be subjected to fair pricing.
ii. The second code of practice in line with the practice and industrial standards is on the
voluntary self-regulations. It stipulates the overall norms of practices which can be
adopted by the company. These regulations are often flexible and are likely to change
with the prevailing conditions (SafeWork, & WorkCover, 2012).
Intellectual Property Rights
The intellectual property rights are those rights which guarantee a company an exclusive
power to utilize its plans and ideas without worrying about competition for a particular period of
time. Such rights include patent, copyrights, trademarks and trade secrets among others (May
2015). Niche electronic company will, therefore, have exclusive property rights which will
guarantee it to use its plans and ideas. Such rights will be in relation to the industrial
development, intellectual property system, and information technology. All the inventions,
artistic works, and designs of the company will be protected to enable them to have full control
of the intangible assets. Some of the intellectual property rights will be to protect the designs of

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 25
the company products such as the integrated circuit. The other element which will be protected
by the intellectual property rights is the investment cycle to offer protection on counterfeiters
(Bently, & Sherman, 2014).

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 26
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