BUS3ENT Assignment 3: Tech Air - Business Model and Expansion Plan

This report presents a comprehensive business plan for Tech Air, an Australian startup focused on manufacturing oxygenated bottles. The executive summary highlights the company's innovative approach to providing purified oxygen in bottles, addressing potential respiratory problems. The report includes a detailed business model canvas, market feasibility analysis, and a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. It explores market trends, competitor analysis, and marketing strategies, including targeting specific customer segments and evaluating marketing performance. The report also examines human resource feasibility, outlining key personnel requirements, recruitment options, and training programs. A growth strategy is discussed, including technology and operations, production, distribution, and potential expansion into oxygen bars. Financial aspects are analyzed, including projected revenue, startup costs, and a profit and loss statement. The report concludes with a summary of the company's potential and references to supporting materials.

BUS3ENT Assignment 3, Tech Air
Latrobe University Sydney
Subject Coordinator; Dr, Quan Nguyen
Instance Coordinator; Dr, Ian Benton
Class Time, Thursday,6:00-8:00 pm
TECH AIR
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Executive summary
The report will analyze one of the most famous upcoming trends that are expected to bring a
revolution in the world. The company that has been highlighted in the study is Tech Air. Tech
Air is an Australian based company that is concerned with the manufacturing of oxygenated
bottles in the mo0st purest form. Various pros and cons will be discussed in the study to
estimate the impact of bottled oxygen in Australia. The explanations also prove the fact that the
future of this startup is quite promising. Moral and ethical issues have been discussed to evaluate
the problems any new company face in the early years of the business. Moreover, growth
strategies and business expansion policies are discussed to uphold the vision of the company.
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Table of Contents
Introduction......................................................................................................................................5
Business model canvas....................................................................................................................6
What’s Tech Air all about................................................................................................................7
Mission statement........................................................................................................................7
Founder............................................................................................................................................7
How does Tech air work..............................................................................................................7
Tech air’s ethics...........................................................................................................................8
Business plan................................................................................................................................8
Company Logo.............................................................................................................................8
Market feasibility.............................................................................................................................9
Market trends, Conditions and Analysis......................................................................................9
Strategy alliance...........................................................................................................................9
Threat of competitors entering in this new market....................................................................10
Market research..........................................................................................................................10
SWOT analysis..........................................................................................................................10
Marketing Plan...........................................................................................................................10
Evaluation of marketing performance........................................................................................10
Human resources feasibility..........................................................................................................11
Key personnel............................................................................................................................11
Recruitment options...................................................................................................................11
Training Programs......................................................................................................................11
Growth strategy..........................................................................................................................12
Technology and operations............................................................................................................12
Production..................................................................................................................................12
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Distribution................................................................................................................................12
Option for the production of Oxygen bars.................................................................................13
Finance...........................................................................................................................................13
Projected revenue.......................................................................................................................13
Calculation of startup cost..........................................................................................................14
Preparing profit and loss statement............................................................................................15
Sources of finance......................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
Appendix........................................................................................................................................19
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Introduction
Tech air is one of the highly advanced and innovative startups situated in ibn Melbourne. The
report will reveal the possibilities of entering into a global tie-up with this tech company due to
its innovative business model. The enterprise deals with the notion of utilizing air in the form of
space balls meant for inhalation. The main idea that Tech air has come up with is to sell air
similar to water in a bottle. The idea is revolutionary and trends after 2020. Tech air is concerned
with improving the quality and quantity of oxygen bars (Müller, Vorraber. and Slany, 2019).
The entire report will provide a detailed explanation of the business canvas model of Tech Air.
In addition to that, market strategies, financial operations, operations related to technology,
human resources will be analyzed for a better understanding of this business idea. The financial
part of the project will be discussed in the concluding segment of the report to estimate the
revenue generation of the company. Furthermore, the analysis will also help in understanding the
growth and exposure of this business idea in the upcoming times.
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Business model canvas
Key partners
 Mark Z
William
 Investors
 Shareholder
s
Key activities
 Supply of
oxygen
bars.
 Bandwidt
h
developm
ent for
quality
control of
bottled
oxygen.
Customer
relationships
 Discount
for first
order of
oxygen
bar.
 After
sale
service
 Free
maintena
nce
Key
resources
 Fresh
mount
ain air
and
advan
ced
techno
logica
l air
purifie
rs for
effecti
ve
filtrati
on
Cost
structure
 The
cost
of the
comp
any is
calcul
ated
on the
basis
of
produ
ct
devel
opme
nt and
taxati
on.
Value
propositions
 Solving
respiratory
problems
due to
pollution.
Channels
 Tech
air
prefer
s to
operat
e their
busine
ss
throug
h
direct
chann
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els.
There
by
reduci
ng the
price
of the
produ
ct.
Customer Segment
The company will target customers who are
suffering from respiratory diseases especially
young children.
Revenue stream
 The revenue stream is
generated after the transaction
and distribution of the products.
What’s Tech Air all about
Mission statement
The mission statement of Tech Air includes a commitment to provide high-quality oxygen bars.
Founder
Mark Z William is the owner of this business as Tech air
How does Tech air work
The company will be to increase the bandwidth of their business all over the world by ensuring
proper maintenance of the quality of bottled oxygen. The only most important raw material that
is needed is oxygen. The purification of the available air to produce oxygen requires a rigorous
process. The resources needed for the commercial production of oxygen is by separating air
through cryogenic distillation method. Apart from that, oxygen is also obtained from the vacuum
swing method of absorption. After that argon and nitrogen can also be produced by separating
those gases from the air. Moreover, oxygen is also produced due to a chemical reaction based on
which it can be freed from the chemical compound and turn into gas. This method of production
is similar to that of oxygen generation in aircraft, spacecraft, and submarines.
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The entire process is lengthy and intricate. In order to produce oxygen, workers with skill sets
are required to manage the entire process of purification, distillation, and filtration. The process
of separating oxygen from other compoundsduring a chemical reaction requires lots of finesse
and expertise to generate pure oxygen. Once pure oxygen is obtained undergo through
condensation process after which they are compressed to airtight bottles (Mangla, Govindan and
Luthra, 2017).
Tech air’s ethics
The major issue that compressed oxygen in bottles' faces is the chance of inflammation. Persons
who are carrying oxygen bottles in their bags or luggage anticipate a chance of catching fire
when in contact with any source of the fire. In addition to that, problems related to racism may
arise as people from many countries are working in the same organization. Moreover, there has
been one case of sexual harassment on a female worker. The company, therefore, aims to
increase the number of CCTVs and hidden cameras so that these kinds of actions can be
prevented in the upcoming years. In addition to that, the person who is found guilty will
beterminated from the company and he will be subjected to an intense form of punishment
(Zhuet al. 2016).
Business plan
The management of Tech Air is trying to help out the customers who are suffering from lung
disease and respiratory problems. In addition, the leader as Mark Z William also aims to provide
pure oxygen for healthy breathy habits of vulnerable people in the society. In summary, the
business plan of Tech Air includes a long-term sustainability practice because life is not possible
without oxygen. Therefore, social media marketing will be applied by the marketing department
of Tech Air for getting more attention from the customers. Therefore, flat 25% discount will be
provided for first order by the Tech Air to increase the competitive advantage.
Company Logo
The logo of tech air includes two dimensional architectures as follows below:
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Figure: Company logo
Source: created by learner
Market feasibility
Market trends, Conditions and Analysis
The market size of bottled air will increase by 25% in Australia by the end of 2022. Tech air is
emphasizing its extensive operations all over the country. The size of its market share is
increasing at a rapid pace and it is expected to outrun the growth of water bottles within a few
years. At present, the market size of the company is considerably small. Tech Air is confirming
its presence by promoting its products in Melbourne and Adelaide (Antikainenand Valkokari,
2016).
Strategy alliance
The new venture will emphasize to build its markets extensively in Asian countries like India
and China. The major reason for this policy is an excess amount of air pollution and China.
Moreover, the reduction of greenery in these two countries is disrupting the oxygen carbon-
dioxide composition in the air. The senior officials of the company will aim to target the desert
areas in the world. The reason behind this strategy is the scarcity of water. The unavailability of
water resources can be well replaced with the intake of bottle oxygen that is far more pure than
water.
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Threat of competitors entering in this new market
The biggest fear of any industry in the world is the growing amount of competition. Whenever a
new thought or idea becomes successful, other companies try to duplicate the innovative thought
and apply them in their own business. Since this is innovative, there exists a high possibility
other companies will also duplicate the same business. Tech Air thus aims to provide interesting
offers for the customers to maintain a persistent demand in the market. Besides oxygen bars, the
company also aims to launch highly purified water bottles that will contain energy capsules to
boost the oxygen content in human blood. In addition to that, the company aims to extend its
services all over the world with its innovative oxygen bars. The enterprise also aims to improve
the taste of the purifi9ed by adding interesting flavors to it.
Market research
The company will attempt to segment its product by categorizing them as per the nature of
different markets. The segmentation of the markets can be successfully achieved if the company
focuses on applying a blue ocean strategy in all its potential markets (Buhalis, and Leung, 2018).
SWOT analysis
Strength: skilled employees, adequate financial support and brand value
Weakness: high production cost, low profit margin, high pricing structure
Opportunity: online shopping, email marketing and
Threat: existing rivals, changing requirements of the customers.
Marketing Plan
Tech Air will focus on targeting working people who are more exposed to air pollution.
Moreover, the bottled oxygen will prove immensely valuable for patients that suffer from lung
disease and respiratory problems. The company will also aim for small children who get easily
affected by the filthy air (Haines, 2016).
Evaluation of marketing performance
At present, Tech Air has its markets established across the major cities of Australia namely,
Adelaide and Sydney. In order to expand its markets, the new startup needs to achieve far more
credibility from the end of the customers. The company aims to increase its market stretch all
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over Asia especially China and India because of the excessive pollution in the city. In Australia,
the company is struggling in its early years because the air is not so much polluted like that of
Asian countries. Therefore, the demand is not so high in the existing areas (Nunes, Estimaand
Manso, 2019).
In order to build an effective customer base, the company must focus on maintaining the quality
of the products. Discounts do not help in building a loyal customer base. Therefore, the senior
officials of the company are focusing on improving the quality of the oxygen bars thereby
attaining the trust and faith of the customers (Huggett, 2017).
Human resources feasibility
Key personnel
As of technical experience is concerned, the minimum criteria are at least 21 years of age with 2
years of working experience in the service industry. Tech Air expects people who have
priorworking experience in the corporates because it will be easier to accustom themselves to the
working culture of the company. The lengthy process of production of distilled oxygen requires
experienced individuals. In the field of management, individuals with at least 7-8 years of
working experience are preferred to empower the leadership and vision of the company.
Recruitment options
The senior team consists of highly experienced entrepreneurs who are assigned with the task of
innovation in the product development of the Tech Air. The entrepreneurs must develop the
quality of the oxygenated bottles and thereby improve the oxygen content in human blood. The
role of the manager is to observe and regulate the working procedures of all the employees
present in the organization. The technical experts determine the success of the organization by
keeping an accurate track of the progress of all the data and information.
Training Programs
The ownership structure consists of employees, senior employees, trainees, entrepreneurs,
managers and board of directors (Bristow et al. 2016). The company, however, will move into a
joint venture with Vitality to boost the credibility and working support of the company.
In the coming years, new employees will be hired as the company aims to extend its services in
major countries of Asia. In order to open new unchallenged markets, Tech Air is also
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emphasizing the recruitment of skilled individuals. Foreign markets cannot be successful without
skilled persons. The company will organize important motivational and leadership seminars to
boost the working mindsets of the employees.
Growth strategy
Tech Air will follow an exponential growth strategy to boost its revenue generation and market
acquisition. The product quality will be maintained by the company with the help of experienced
leaders in the industry. Tie-ups with another global; brand will also help in boosting the growth
of Tech Air. Moreover, the growth of the company can also be accelerated with the help of the
promotion of the employees. Like any reputed organization, the employees of Tech Air can
reach the top of the corporate ladder by giving commitment and consistent dedication.
Technology and operations
Production
Tech air aims to promote its business strategies more aggressively through the internet soon. At
present most people are not aware of the existence of packed pure is necessary for the betterment
of the people. The company is yet to generate billion-dollar revenue because of a lack of
awareness among people. The enterprise is yet to reach its full-fledged growth. The startup has
many opportunities for increasing the import and export of resources. Besides that, the company
will focus on introducing automation in their working procedures thereby helping it to reduce the
maintenance of the cost of the company. The organization also aims to employ courier services
so that oxygen bars can be transported to the homes of the people. The company has also many
long term plans regarding the application of unmanned aerial vehicles or drones to reach their
products to the customers more quickly than ever. The inclusion of all these new means can help
in providing the company to develop its business in Australia. Furthermore, the enterprise aims
to enter into tie-ups with reputed companies like Vitality that collects air from the Canadian
Rockies and compresses it into the steel containers. According to the post-tie-up plan the
company aims to come up with the technology of mask and spray cap that will hold around
approximately 160 breaths and 24 dollars per bottle (CetindamarKozanoglu et al. 2019).
Distribution
The most significant technological change that the company will aim to introduce is the
promotion of its products through online platforms. Apart from that, it is also the focus of the
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