Detailed Entrepreneurship Report: EzTravel Smart Suitcase Analysis

This comprehensive entrepreneurship report presents a detailed business plan for the EzTravel Smart Suitcase, focusing on the Vietnamese market. It includes an executive summary, product description, and mission and vision statements. The report analyzes the industry size, growth, and trends, along with market research findings and target market segments (business and leisure travellers). A competitive analysis, marketing strategy, and operational plan are outlined, including key operating activities, management team, resources, and financial projections. The report also addresses risk factors, key milestones, and an exit strategy. The product is a smart suitcase with features like GPS tracking, a built-in scale, and a USB port, designed to enhance the travel experience. The report emphasizes the product's technological advancements, market potential, and financial viability within the context of the Vietnamese market and the global luggage industry.

Running head: ENTREPRENEURSHIP REPORT
1 Cover
Entrepreneurship report
University Name
Student Name
Authors’ Note

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2 Executive Summary
Seasoned travellers already understand the significance of luggage. EzTravel Smart Suitcase
can be regarded as an ultimate product that can help travellers to avert all the trouble and
difficulties that are faced related to luggage. The current report elucidates in detail the
proposed business details that include description of the product, mission and vision
statements along with aims and objectives. In addition to this, the current section also
illustrates industry and market analysis of the proposed business along with the customers
that will be targeted. In addition to this, this study explains target customers and value
propositions of the proposed product/service of the business. Moving further this segment
explains in detail marketing strategy together with marketing mix that are developed for
marketing the product. Furthermore, this section also outlines the operational plan,
management team, resources, financial projections, associated risk factors along with the key
milestones.

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Table of Contents
4 Business Details......................................................................................................................3
4.1 Legal Form...........................................................................................................................3
4.2 Description of product/service.............................................................................................3
4.3 Mission & Vision Statements...............................................................................................4
4.4 Aims and Objectives............................................................................................................4
5. Industry and Market Analysis................................................................................................6
5.1 Industry size, growth and structure......................................................................................6
5.2 Industry and market trends...................................................................................................7
5.3 Market Research Findings (Primary Research Findings)....................................................8
5.4 Market segments and reasons for target market selection...................................................9
5.5 Buyer behaviour across segments......................................................................................10
5.6 Competitor analysis............................................................................................................10
5.7 Key Success Factors...........................................................................................................11
7. Marketing Strategy & Marketing Mix.................................................................................12
8.1 Key Operating Activities....................................................................................................13
8.2 Partnership/Scalability.......................................................................................................14
8.3 Business Controls...............................................................................................................14
8.4 IP Issues.............................................................................................................................15
8.5 Scalability...........................................................................................................................15
9. Management team and company structure...........................................................................15

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10. Resources...........................................................................................................................16
11. Financial Projections..........................................................................................................16
12. Financing Plan & Valuation...............................................................................................17
13. Risks Factors and Mediation (Strategic Options)..............................................................18
14. Key Milestones...................................................................................................................18
14.1 Graphic that details tasks that have the need to be accomplished up to date of launch...19
15. Exit Strategy.......................................................................................................................20

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4 Business Details
4.1 Legal Form
The legal form describes the practical laws that are applicable for doing business in Vietnam.
There are recent developments that are likely to affect businesses on the jurisdictions.
Vietnam has essentially concluded certain negotiations with the European Union on the Free
trade agreements that is the EU-Vietnam Free Trade Agreement. This is anticipated to be
ratified by the member stares of the EU during the year 2018. EVFTA includes the following:
-The complete elimination of particularly custom duties (that includes 99% of the entire tariff
duties) (Trung et al. 2015)
-Reduction of various non-tariff barriers
-Promotion of investment
-Several other matters associated to free trade.
The Vietnamese legal system was primarily modelled on fundamentally the French as well as
Soviet System till the period of late 1980s at the time when Vietnam assumed the policy of
Doi Moi (Trung et al. 2015). In particular, this transformed the entire economy of the nation
from a centrally planned economy to particularly a market oriented economy. However, the
government of the nation also heavily regulates business transactions in association to various
foreign currencies (majorly US dollars). In addition to this, under the investment laws of
Vietnam, there are certain incentives that are obtainable for specific geographic areas as well
as industries, as well as for high-tech along with technologically advanced enterprises. Again,
for a multiple-member limited liability company or else a non-publicly listed corporation, the

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management has the need to apply for particularly an Investment Registration Certificate,
Enterprise Registration Certificate (Trung et al. 2015).
4.2 Description of product/service
EzTravel Smart Suitcase can be referred to as a product that can aid travellers to avert
difficulties associated to luggage. There are certain prominent functions assimilated in this
product namely built in GPS chip that can help in tracking location at real time, built-in scale
to avert overweight, USB port for charging electrical devices and all things are connected to
the smart phone through a specific application.
Description of product features:
4.3 Mission & Vision Statements
Mission: “To offer technologically advanced designer smart suitcase at a revolutionary price,
while directing the way towards socially-conscious business”

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Vision: “To make EzTravel Smart Suitcase an important part of all trips so that travellers can
get pleasure from journey as well as the destination”.
4.4 Aims and Objectives
The primary aim of the proposed business is to enhance the travel experience by delivering
the most dependable, client-responsive, and inexpensive baggage delivery solution offered
globally for travellers.
The objectives of the company is therefore
- To deliver positive travel experiences- Travelling is essentially a stressful activity for
travellers. However, we, the travel bag makers can make their trip enjoyable. We can try hard
to surpass expectation by properly treating the luggage of the clients. The management of the
company intends to depend on their experience as well as expertise to proactively make
certain that all trips can be made easier.
-To earn long lasting loyalty of the consumers- The management of the company has the
goal of having more number of loyal clientele and that is the reason why the entire team of
the business is empowered to arrive at the right decisions for the clients of the company.
Thus, it can be hereby said that the management of the company shows appreciation for the
loyalty of the clients and the role client’s loyalty plays in the process of attainment of
success.
-To communicate proactively as well as honestly-The management of the company intends
to make every effort to anticipate, prevent as well as overcome issues that might perhaps
influence the travel experience of their client.
-To pursue excellence- The management has the objective of attaining excellence and
realising that there is always room for improvement in everything the company does.

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-To foster growth and develop learning experience- The business intends to foster growth
and success. In a bid to continue to attain growth, the business intends to embrace all kinds of
change as a natural procedure of forward progress.
-To present humble, honest attitude and have fun-The administrative team of the company
intends to make every effort for doing the right thing and taking accountability for all the
actions. The business management has the objective of treating the clients, peers, and partners
of business as well as our peers/rivals with utmost respect.
5. Industry and Market Analysis
5.1 Industry size, growth and structure
 Revenue generated from the "Bags & Accessories" segment in Vietnam amounts to
approximately US$69m during the year 2018.
 In this market, revenue is expected to reflect an annual rate of growth as per the
figure of CAGR 2018-2022 of approximately 24.4 % leading to a market volume of
around US$165m during the year 2022 (Anderson et al. 2014).
 In this case, user penetration is at around 6.6 % during 2018 and is anticipated to
strike the rate of 12.2 % during 2022.
 The mean revenue for every user (ARPU) presently amounts to nearly US$11.01
(Ferraro and Briody 2017).

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 However, from a worldwide comparison viewpoint it is revealed that majority of the
revenue is generated from China and that stands at approximately US$27,844m
during the year 2018.
Vietnam can be considered as the world’s fifth largest exporter of the products (suitcases,
backpacks, leather bags, hand bags) to the bag importers of the entire world during the year
2017 as per the statistics cited from the International Leather, Footwear and Handbag
Association (LEFASO). As per LEFASO, the nation Vietnam stands fifth among the ten
largest suitcase exporters, thereby contributing approximately 5.4% to past year’s worldwide
supply. This industry has also reportedly registered a consistent growth of around 10 to 15%
over the last five years as per LEFASO. During the year 2016, approximately 2.5 billion
suitcases as well as handbags were bought throughout the world at the overall cost of
approximately $300 billion (Anderson et al. 2014).
5.2 Industry and market trends
As rightly indicated by Anderson et al. (2014), it is imperative for entrepreneurs to undertake
industry analysis for the purpose of determining the probable obstacles that a new and
innovative business proposition might encounter. Therefore, the entrepreneur can predict the
potential profitability of a particular product founded on whether the overall cost of
penetrating the market is creditable and the proposed product can ensure its suitability and
consistency (Simón-Moya and Revuelto-Taboada 2016)
The five forces Porter’s model can be put to use for comprehending the competitive
advantage of the product in the industry

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Threat of new entrants: This specific market is said to be very new, therefore it might take
some time for new players to generate brand awareness. So, the new entrants in this specific
market would require huge investments in area of marketing and promotion. Nevertheless,
with the novel techniques of the proposed product, it might successfully secure attention of
the targeted clientele. Therefore, intensity of the threat can be considered to be ranging
between high to medium (Hollensen 2015)
Bargaining Power of suppliers: There are very small number of suppliers that have high
technology in the nation and this can direct towards import of new foreign materials.
Therefore, intensity of the threat can be considered to be high.
Bargaining Power of customers: In this case, bargaining power of customers can be
considered to be medium as there is lesser number of alternative products offering the same
advanced features
Threat of substitute products: There are essentially some GPS built in products that might
perhaps be utilized for the purpose of monitoring the luggage, however they are nor very
much user-friendly. Furthermore, EzTravel Smart Suitcase can be regarded as a combination
of different ultimate characteristics and features. Therefore, the threat of substitutes can be
considered to be very low.
Competitive Rivalry: The product cannot necessarily be easily duplicated by another maker
owing to the high level of technical aspects. Therefore, this threat can also be considered to
be very low (Schaper 2014)
5.3 Market Research Findings (Primary Research Findings)
The primary target group of the business are the business as well as leisure travellers who are
necessarily both male and female, having mean income over and above VND 10 millions and

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travel on a regular basis. After deducting the concept assertion, the learner carried out a
Buying Intention Survey that presents the feedback of around 100 respondents from
particularly travellers at various places that include Hanoi,International Noi Bai Airport as
well as Vietnam. This can help in understanding the manner potential consumers can react to
the product EzTravel smart suitcase. It can be observed that more than 80% of the male
respondents were very much inclined to the product since it associated to the technologically
advanced product. Hereby the learner succinctly presented the opportunity of 61% favourable
feedback and this satisfies the desirability, demands as well as justifiability of the proposed
product in the commercial market.
Graph: Graphical Presentation of the percentage of travellers that have inclination to
purchase ESS
(Source: By the authors)
5.4 Market segments and reasons for target market selection
Market Segment

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-Business travellers- Business travellers include both male as well as female of age group
(22 years to 60 years) travel on business trips
-Leisure Travellers-Leisure travellers include both male and female of all age groups
travelling to various places for vacations or social purposes
Reasons for target market selection
Reports suggest that there have been around 42 million luggage bags that went astray and that
resulted in a big difficulty for both business travellers as well as leisure travellers.
Acknowledging these identified problems, the learner proposes this integrated solution of
presenting the technologically advanced smart suitcase that contains ultimate features (Finch
2016). Both these categories or else classes of travellers therefore can acquire the benefits of
these smart suitcases and get rid of the troubles currently faced.
5.5 Buyer behaviour across segments
The behaviour of the buyers across targeted segments are affected by size of the luggage as
well as dimensions, weight of the luggage, feature and functionality of the luggage,
durability, price, brand and environmental friendliness. In order to understand the buying
behaviour of customers, it is also important to understand the entire luggage industry and the
factors that affect the same (McKeever 2016). The airline industry is also seen to have
considerable impact on the buying behaviour as majority of travellers essentially have the
need to adjust different aspects of their travel, including considerations when it comes to this
specific product that is luggage/travel bag.