Niche Electronic Technology Business Plan - Desklib

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).

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 5
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

NICHE ELECTRONIC TECHNOLOGY BUSINESS PLAN 6
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