Smart Watch Business Venture Plan: Australian Market Analysis Project

This project presents a business plan for establishing a smart watch distribution venture in the Australian market. It begins with an economic analysis of Australia, highlighting its developed economy and the increasing demand for smart watches. The scope of the business is defined by the growing consumer preference for smart watches over smartphones, driven by features like gaming, portability, and fashion trends. The project explores the reasons behind this demand, including affordability, fitness tracking capabilities, GPS navigation, and contactless payment options. The methodology for analysis includes investment appraisal techniques, breakeven analysis, financial statement analysis, and sensitivity analysis to determine the project's viability. The conclusion drawn from the analysis suggests that the project is financially favorable, with positive NPV and IRR, recommending the business move forward. References include relevant sources on wearable technology and business analysis.

BUSINESS VENTURE PLANNING

Background of the Project
• The project will be developed considering the market
situation in Australian market for opening a business which
would be distributing Smart watches
• The project would be using different tools such as
breakeven analysis, capital budgeting techniques, financial
statement analysis for this assessment.

Economic Analysis of Australia
• Australia is considered to be one of the developed countries
in the world and has an effective market situation.
• The economy is technologically advanced and therefore
there is a lot of opportunity of establishing a business.
• The demand in Australia is more for smart watches than
smart phones which is the main reason why the economy is
considered to be favorable for the business.
• The country is able to achieve economic growth and the
same is shown to be 3.1% in current year

Scope of Business
• The demand for smart watches has significantly increased
and the same are nowadays preferred more than a smart
phone (Bruno, 2015)
• Some of the gadgets of smart watches has already caught
the imagination of the consumers by providing good
graphics game, portability, calling features. In addition to
this, the demand for smart watches is also increasing
mainly because fashion trends in the country.

Reasons for Demand of Smart Watches
• The demand for smart watches has increased significantly due to increase in
demands for the same and cheap availability of the product. The carrier costs are
low and there is also a replacement plan. This makes the replacement plans more
affordable and easier.
• Smart Watches has motion sensors and can tell exactly how much calories are
either gain or reduced. Therefore, this can effectively be used as a fitness tool and
examples can be given of Garmin and Fitbit which has its focus on health and
fitness (Lu et al., 2016).
• Smart Watches have GPS trackers and it is regarded to be excellent for navigation
and moreover the watches also appeal to the styles senses of the generation.
• There is a provision for internet services in a smart watches and therefore
contactless payments can be make cashless payments much easier (Shen et al.,
2014).

Methodology for Analysis
• The viability of the project would be checked with the help
of following techniques which are:
• Investment Appraisal Techniques
• Breakeven Analysis
• Financial Statement Analysis
• Sensitivity Analysis.

Sensitivity Analysis

Conclusion
• The conclusion which can be drawn from the analysis is
that the management should move forward with the
project.
• The NPV and IRR of the business is shown to be in positive
and Favorable for the business and thus the business
should move forward with the project

Reference and Bibliography
• Bruno, T. (2015). Wearable technology: Smart watches to Google Glass for libraries (Vol. 1).
Rowman & Littlefield.
• Chaparro, B. S., He, J., Turner, C., & Turner, K. (2015). Is touch-based text input practical for a
smartwatch?. In International Conference on Human-Computer Interaction(pp. 3-8). Springer,
Cham.
• Covello, V. T., & Merkhoher, M. W. (2013). Risk assessment methods: approaches for assessing
health and environmental risks. Springer Science & Business Media.
• Eva, M., Hindle, K., Paul, D., Rollaston, C., & Tudor, D. (2014). Business analysis. D. Paul, D.
Yeates, & J. Cadle (Eds.). British Computer Society.
• Jin, J., Gubbi, J., Marusic, S., & Palaniswami, M. (2014). An information framework for creating a
smart city through internet of things. IEEE Internet of Things journal, 1(2), 112-121.
• Khan, H. U., Ahmad, S., & Abdollahian, M. (2013, April). Supply chain technology acceptance,
adoption, and possible challenges: A case study of service organizations of Saudi Arabia.
In Information Technology: New Generations (ITNG), 2013 Tenth International Conference on (pp.
590-595). IEEE.

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