Niche Electronic Technology Business Plan for Engineering Management

This business plan outlines the establishment of Niche Technology, an electronic firm specializing in household appliances and industrial equipment in Saudi Arabia. The company aims to deliver quality electronic gadgets at affordable prices, focusing on customer satisfaction and retention. Key products include air conditioners, refrigerators, microwaves, security lights, washing machines, malodor controls, sensors, instrumentation gadgets, fragrance, televisions, HDD and DV recorders, security cameras, and digital alarm signals. The plan details the company's mission, vision, business model, personnel, marketing mix, sales forecasts, operations, and financial projections. It also includes a SWOT analysis, PESTLE analysis, and Porter's Five Forces analysis to assess the business environment and competitive landscape. The company plans to source raw materials efficiently and leverage technology to develop innovative products that meet customer demands. The initial capital will be raised through stakeholder contributions and debentures.

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

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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

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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

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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

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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

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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,

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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