Business Plan for Inteva Products: Romanian Market Expansion Strategy

This business plan analyzes Inteva Products, a major automotive supplier, focusing on its expansion strategy within the Romanian market. The plan includes an in-depth external and internal environment analysis, identifying strengths, weaknesses, opportunities, and threats. It outlines strategic objectives, including market share and revenue growth targets, and proposes market penetration, product development, and diversification strategies. A detailed marketing section covers the 7Ps (product, price, place, promotion, people, process, and physical evidence), alongside a human resources overview and risk assessment, including financial, market, and legal risks. The financial plan details funding requirements and potential sources. The analysis utilizes Porter’s five forces and marketing mix plans, concluding with a projection of increased profitability within three years. References to relevant academic sources support the analysis.

BUSINESS
PLAN
Scholar Id:

Introduction
■ Inteva Products is considered as largest supplier of
automotive at global level. It is one of creative equipment
manufacturers in automotive industry.
■ Inteva products provide several kinds of products that are
directed with respect to premium class and middle class
consumers (Inteva, 2019).
■ Mission and vision
■ In this report, Inteva Products Salonta is selected for
expanding the business into Romania operations. For this,
different strategies are discussed that could be used by
Inteva Products Salonta to gain competitive advantageous
in Automotive industry.

External environment
analysis
Competitive Rivalry
- Kiekert, Magna, Valeo;
- depends on the OEM. For specific
clients, the market is very
monopolized (% of supply);
- depends on the OEM and
geographic area.
New entrants
- Capital intensive industry, needs
substantial R&D budget
Substitutes
- Luxury brands start utilizing more
advanced car lock systems (wi-fi, voice
activated, e-lock technology, digital,
finger print activated);
- Automatic safety door system (inside
– outside) as a feature ;
Buyers / Distribution
- Produces mainly for customers(Renault, Citroen, Dacia, VW,
Opel, Suzuki, Hyundai) with EU based factories (Germany, France,
Spain, Romania, Slovakia, Hungary) but also basedin Morocco,
Turkey and S. Korea;
- All vehicle types use the same closure system, ensuring wide
distribution in the future.
Suppliers
- Broad base of international and local
suppliersofplastics;
- The supply market for metal has less
coverage, as it needs more specialized
know-how to produce (size, shape and
purity);
- Some suppliersare shared with
competitors: ZF (Germany) for VW’s
and Opel’s electronic components
(switches).
Rate it 1-Very weak 10 – Very strong
Today: 9 5 years: 8
Rate it 1-Very weak 10 – Very strong
Today: 2 5 years: 3
Rate it 1-Very weak 10 – Very strong
Today: 4 5 years:3

Internal environment
analysis -Distinctive
competencies■ Strengths -
■ Strong relationship with existing suppliers:
■ Diverse product portfolio of Inteva products Salonta:
■ Based on details offered in Interior automotive door system:
■ Managing Regulations and Business Environment:
■ Weakness-
■ Customer Dissatisfaction
■ Low Return on Investment
■ Lack of Work force diversity
■ Lack of critical talent
■ Inventory Management

Resources
■ Interior Systems
■ Motors & Electronic Systems
■ Closure Systems

Capabilities
■ Quality
■ Manufacturing
■ Closure Systems
■ Interior Systems
■ Motors & Electronics
■ Testing

Competitive
Advantages
■Product
differentiation
■Service differentiation
■Affordability

Strategic objectives
■ To increase the market share of the organization by
10% in upcoming 3 months
■ To enhance the revenue by 15% in upcoming 6
months
■ To improve the demand of consumers by 25% in
upcoming 8 months

Growth and generic strategies,
means of implementation
■ Market penetration
■ Product development
■ Market development
■ Diversification
■ Cost leadership are more advantageous technique
that assists in retaining the specific customers who
are price sensitive

Future business
model
Key partners
 Broad base of
international and local
suppliers of plastics;
 The supply market for
metal has less
coverage, as it needs
more specialized know-
how to produce (size,
shape and purity);
 Some suppliers are
shared with
competitors: ZF
(Germany) for VW’s
and Opel’s electronic
components (switches).
Key
activities
Marketing
customer
services,
sales of the
automobile
products
and
services.
Value
propositio
n
Strong
functionalit
y, higher
distributio
n elasticity
and Ease of
employme
nt
Customer
Relationships
Face to Face
communication
Telephonic
interview
And conversation by
considering the
social media
sources.
Customer
segments
Automobil
e supplier
company,
Business
To
business,
private
sector
companies,
and
automobile
service
company,
Key
Resources
Skilled
employees,
positive
brand
image,
research
and
developmen
t
Outcomes
Enhancing
the
company
revenue
with the
innovative
the tool
Channels
The organization
could use different
kinds of tools to
increase their
growth named as
digital marketing
and innovative tool.
The digital
marketing tool could
consider certain
sources named as
twitter,
Cloud Computing,
and open source
CRM
Cost structure
Capital intensive industry, needs substantial
Revenue Stream
Sale of automobile products and services,

Marketing section - Develop
marketing strategy (7P’s)
Product Strategy of Inteva Products
■ Closure System
■ Latching System
■ Door Systems
■ Roof System
■ Motor & Electronic System
Packaging

Cont’d
■ Price Strategy of Inteva Products: Affordable
price
■ Place Strategy of Inteva Products
Customer Town Country
PSA Trnava Slovakia
Opel Zaragoza Spain
PSA Rennes France
PSA Madrid Spain
PSA Mulhouse France
PSA Poissy France
PSA Vigo Spain
PSA Kenitra Morroco

Cont’d
■ Promotion Strategy of Inteva Products
■ Direct Marketing
■ Sales Promotion
■ Public Relation
■ People
■ In an organisation, right position of right people or employees could assist in
the growth and success of business
■ Process
■ Inteva products Salonta present automotive for delivery, the procedure
become significant elements.
■ Physical Evidence
■ Inteva products Salonta delivers the closure system, interior system, door
system as well as, electronic system.

Production/
Operations
■ Inteva Products Salonta is the largest automotive
organization at the global level. It is one the
imperative factor affects to the equipment’s of the
industry.
■ It is founded that Inteva Products Salonta could
offers different kinds of products and services
which are directed by the premium class
consumers.

Human resources

Risks
■ Financial Risk:
■ Risk of Time Value of Money:
■ Market Risk:
■ Legal Risk:
■ Interest Rate Risk:

Financials plan
Projections of the income statement
$ 000 FY18 FY19 FY20 FY21 FY22
Sales
$
60,380
$
72,209
$
109,981
$
113,426
$
93,054
Cost of goods sold
$
58,798
$
66,376
$
99,481
$
101,730
$
83,204
Materials
$
46,098
$
52,387
$
77,796
$
78,627
$
63,551
Material cost
$
44,150
$
50,279
$
74,666
$
75,464
$
60,982
Total freight
$
1,948
$
2,108
$
3,130
$
3,163
$
2,569
Manufacturing and indirect costs
$
10,994
$
11,849
$
19,197
$
20,590
$
17,283
Direct labor
$
3,606
$
3,744
$
5,987
$
6,422
$
5,427
Total burden
$
7,389
$
8,105
$
13,209
$
14,168
$
11,856
Plant engineering
$
365
$
529
$
667
$
678
$
617
Depreciation and amortization
$
1,341
$
1,610
$
1,821
$
1,835
$
1,753
Gross profit
$
1,582
$
5,833
$
10,500
$
11,695
$
9,851
Total operating expenses
$
1,230
$
1,569
$
1,815
$
1,832
$
1,734
Corporate engineering department
expense
$
444
$
665
$
770
$
777
$
735
Corporate selling, general, and $ $ $ $ $

Cont’d

Funding requirements
■ Inteva products Salonta can issue the debenture
due to tax rebate for corporation.
■ Inteva products Salonta can apply the savings of
owner as well as, bank loan as a source for finance
to choose the companies.
■ Inteva products Salonta can apply the internal
sources of finance.

Conclusion
■ Strengths and weaknesses analysed by Inteva
products Salonta.
■ Porter’s five force analysis is used to analyse the
automotive industry of Romanian market.
■ Marketing mix plan is used to for marketing of
Inteva products Salonta.
■ Profitability of company would be increased in
upcoming 3 years.

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Cont’d
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