Table of Contents for PH 1 & 2 Assignment 1 3 Assignment 2 3 Assignment 3 5 Assignment 4: 8 Assignment 5 10 Assignment 6 12 Assignment 1
1. Briefly explain your business idea and how you arrived at it.
The concept of IoT (Internet of Things) are implemented everywhere. Devices are getting interconnected to be capable of more things. If we combine the big screen of the smart TV with the convenience of the smart phone, it would be promisingly popular.
2. If you are still considering what business to plan to enter review the options outlined in this chapter in particular:
1. Can you identify a market gap that you could meet?
There’s no smartphone synchronized smart TV in the market. Our TV will fill the gap.
2. Is there a new twist that you could put onto an old business idea?
That would be the idea of getting smartphone work with a smart TV and other smart features.
3. Do you have an idea for an innovation or novel product?
Yes. We make the TV work perfectly with the smartphone.
4. Is there a franchise or network marketing proposition that you could plan for?
Yes. We’ll specify it in our business model.
5. Have you explored the possibility of buying out a business?
We are new entrants with unique differentiation. This industry has got history. We are not planning to buy out a business.
1. Using Porter’s five forces, analyze the factors at work in your industry.
Porter’s five forces：
1. Competitors in an industry: Apple TV, Amazon Alexa; Samsung; LG；Sony
2. Threat of new entrants to the industry: Hisense; TCL-Chinese low-price rivals.
3. Threat of substitute products：Personal Computer, Home theater center, projectors
4. Bargaining power of Suppliers: Foxconn; BOE—Medium
5. Bargaining power of customers: Weak
2. If you are expecting to be first to market, what other advantages for your proposition can you expand on in your business plan?
Since smart TV is not a brand-new concept product, we are not the first to the market.
Our smart TV have its unique differentiation compared with the ones in the market. It has very user-friendly interactions especially when paired with smart phones. Using that advantage, we have unique selling point.
3. Describe the strategic direction being pursued by the business you are/will be competing with, ie focus, differentiation, cost.
We are going to appeal our smart TV particularly in online and offline shops with its unique smart features to the potential users to let them know that it’s more than convenient to use our products.
4. What strategic option will you be going for and why?
Smart TVs in the market have some smart features but young users are using more of smartphones because it’s more convenient to the information source. For example, photos and videos taken by phone, smart phone games that can be played once they had time. They will have better experience to have a big screen to do these things. If they can easily put the images onto the big screen and operate on either screen, they would have much better experience.
5. Explain how you arrived at your proposition.
It’s a trend to have traditional home appliances into smart and interconnected ones. IoT has been developing fast and leading the industry onto another level. Our smart TV get users better experience at home. Whatever you do on your smartphone can be done simultaneously on the smart TV.
6. What makes you believe it will succeed?
We have market information about the existing TVs and our product have the chance to fill the blank part for its unique smart features.
7. Write a mission statement linking your product or service to the customer needs it is aimed at.
Mission statement: Addition to traditional smart TV, we aim to help our uses get extremely convenient in using smart services with great experience.
8. Write vision and values statements.
Vision and value statement: We can have your images displayed and processed synchronized anywhere with your smart device.
9. What are your principal objectives: short term? long term?
Short term objective: To get our products into the market and cooperate with major distributors in 2 years.
Long term objective: To have competitive market share and continuously provide users with more convenient experience.
10. List your tasks and action plans as you see them at present.
Tasks and action plans: Test the reliability and start the market investigation. Advertise through multiple ways. Establish cooperation with distributors. Make sure the products in mass production.
1. How did you arrive at this new Idea?
Every household or institution requires television, and with the steady advancement of technology, most of our tasks have been digitalized and are growing more expensive in the modern era. Our smart TV will not only have advanced capabilities, but we also want to equip the community and give environmentally friendly materials by offering durable and inexpensive everyday pricing to everyday people.
2. What is your business name and why have you chosen it?
· This brand name symbolizes unity, uniqueness, unlimited, interconnection and it’s easy to remember.
3. What professional advisors have you used, or do you intend to use?
· Legal Expects drafting contracts and legal documents, protecting intellectual property, settling disputes, debt, and bankruptcy, patent agent/attorney.
· Human Resource Personnel
· Hardware and Software engineers
· Financial Advisors: developing financial strategies
· Licensed Custom Broker
· Sales Representative
· Public Relation Manager
· Outsourcing Manufacturing Advisor
4. Under what legal form will you trade and why?
· A CRA business number and import account form. CRA will use this to process customs documents, avoiding delays and confusion at the border.
· Global Affair Canada import permit. Controlled goods are available in Canada. Obtaining a license stipulates the volume of imports permitted and serves as a guideline to avoid exceeding quota.
· Declaring or reporting goods to the Canada border services agency to make certain that all relevant taxes and duties are paid.
5. If your business is already trading give a summary of financial and marketing results and achievements to date?
· Our business has not commerced yet.
1. What is the geographic scope of the market you intend to serve and why have you so chosen?
Well, Smart TVs are having the geographical scope of Mexico and the United States of America. We have decided on these areas because of the growing popularity of digital media and the introduction of improved recreational technologies. Moreover, the widespread adoption of the rising internet and the use of smart gadgets by customers are expected to accelerate market expansion throughout the region. So, that is why the TVs are demanded more in North America region.
2. What customer needs will your product or service satisfy?
Our smart TV will offer different types of features to the customers which are as under:
A) Surfing the Internet
B) Broadcasting on the internet
C) Connections via smartphones
D) Apps and gaming
E) Communicating over the Internet
F) Controlling Movement
G) Link to a keypad
H) Size of the screen can be changed
I) Uses environmentally friendly material.
J) 90-degree rotation of the screen
3. List and describe the main different types of customers for your product/service.
TV is watched by many age, lifestyle, and population groups such as:
A) Tech Savvy People B) Early Adopters C) Families
4. Which of these market segments will you concentrate on and why?
To sell smart TV’s we would like to concentrate on medium and high-end income segments. We would sell them because by selling them we can have a good reputation in the region. Moreover, the chances of debt can be reduced. And there will be less bargaining power, as a result, the profits can be maximized.
5. Match the features of your product/service to the benefits on offer to customers in each of your chosen market segments. Provide proof, where possible.
A). Tech Savvy People: Tech people watch TV so as to have the latest knowledge regarding technology.
B). Early Adopters: Early Adopters watch TV so as to equip themselves with the latest knowledge.
C). Families: Families love to spend quality of time with their family members. They watch movies, comedy shows for their entertainment. They also get the latest news of the world.
6. Who are the innovators in each of your market segments?
For our product they are two types of innovators namely:
Consumers: It is said that consumers are the lifeline of businesses. The demands of consumers change rapidly from time to time. In order to meet their demands, the innovation of the product is done so as to maximize the profits.
Competitors: In the modern era competition is increasing in every field of life. In order to beat the competition, the product should have unique features as compared to the competitor. As our company is offering the TV in which the size of the screen can be altered according to the requirement.
7. What factors are important in the customer’s decision to buy or not to buy your product/service?
There are different factors that affect the purchasing power of the buyer such as the age of the person, gender, profession, personality, socio-economic factors, and many more. So, these all are the factors which the person has to consider while purchasing the TV from us.
8. Is the market you are aiming at currently rising or falling? What is the trend over the past few years?
In the past it has been noticed that the trend of people watching the TV in the Mexico and U.S. was declining but due to covid-19 people were doing work from home as a result individuals are having sufficient time to spend quality time with their beloved ones. They love to watch movies, comedy scenes and so on. So, the percentage of watching TV has risen to 74%. Moreover, technology is increasing rapidly. People are advancing themselves with the latest technologies. So, it is expected that in the coming time the trend of smart TVs would rise rapidly.
9. What share of this market are you aiming for initially?
UNITV is demanding high in Mexico and the U.S. Our main focus is on small businesses by penetrating. They are not focusing on big companies as they are ruling in their own way. So, our main target is to focus on small and medium-size businesses to make the life of individuals easier through our service.
1. List and briefly describe the businesses with which you will be competing directly.
The electronics industry is one of the more competitive industries with companies such as Samsung, TCL, LG, Hisense, and Sony. Many of these competitors produce various electronic products, with smart TVs being one of the most popular. The entities have, over time, provided the customer base with TV sets that feature different aspects of technology integrated into their functionality (PR Newswire, 2021). However, the market has experienced a decline in the utilization of smart TVs. There is a need for more innovative products to garner the interest of individuals in using smart TVs. Over time, the competitors have come up with various technological developments that have defined top-notch products’ status quo. The trend should continue to sustain the interests of customers.
2. Analyse their size, profitability, and operating methods, as far as you can.
The competitors are majorly multi-national corporations with establishments in numerous countries worldwide. Samsung has more than $500 billion as the second largest technology company and has north of $200 million in revenue, and Sony has approximately $85 billion, while LG Electronics has about $53 billion. These companies form the top cream of organizations that produce smart TVs, among other products. They employ thousands of people in multiple countries and control most of the market share. They are highly profitable, with Samsung boasting a $63 billion profit margin, and the industry as a whole is worth $970 billion. (PR Newswire, 2021). The operating procedure of the organizations generally features solid human resource management and supply chain management, which are integral in the success of the companies. The focus of the operation process is on quality production and cost competitiveness, appropriate delivery of the products and suitable response to market dynamics.
3. What are their relative strengths and weaknesses compared both with each other and with your business?
Among the companies’ strengths are technological advancements that have fueled the continuous production of regular products they deal with regularly. Innovation is, in many ways, the driving force behind a company’s success.
Entities such as LG have substantial design capabilities. The research and development branches of the companies are strong and instrumental in their success. They are significant entities with solid global brands, high levels of expertise in manufacturing, and various subsidiaries that support the leading organization (Omer, 2019). The weaknesses are majorly based on the competitiveness of the electronics industry as it is relatively easy to upstage a company’s products due to the growth of technology. Many of them are dependent on consumer markets with low growth potential. The majority of the organizations have these strengths and weaknesses, and they also factor in the business. They serve as the points of emphasis in evaluating the business (Omer, 2019).
4. What, in the light of this competitive analysis, do you believe to be the critical factors for success in your business sector?
Technology, innovation, and manufacturing capacity are essential components in a company’s success. These core features have allowed the companies to gain significant market share. They are constantly able to develop unique and advanced electronic products that are attractive and desirable to customers. Over time, the clientele base has invested in getting electronics with the latest technological developments, leading to the high demand that has characterized the industry for a long while. On the other hand, the companies have been able to meet the demand thanks to their manufacturing capabilities (Bloomberg, 2021).
5. What is unique about your proposition that makes it stand out from the competition?
The product should stand out amongst competitors as it puts together the functionality of a smartphone and smart TVs. Currently, no smart TVs are synchronized with smartphones, leaving a market gap that the company can fill. The integration of TV and smartphone functions should provide a different perspective to the current utilization of smart TVs.
1. What information do you currently have on customers, competitors, markets, etc?
· TV consumers in Mexico and the US.
· According to Statista Data (2021), number of TV households in the US are 121 million.
· In the US market the sizes of TVs purchased are getting bigger and TV sales are up %19 in 2020. Apps within the TV and HDR are becoming more important for consumers (Munson, 2020).
· In 2018, 92.5% of Mexican households own TV (Statista, 2022).
· Samsung dominates the US market. Alcatel/TCL, Vizo, LG, Panasonic, Hisensei Insignia, Sony, Sharp are the other actors within the market. Alcatel’s market share is increasing in the US; therefore, it is important to follow the brand closely (Multichannel News, 2020).
· Growing market, worth US$35.8 billion in 2020.
· Deriving forces of growth are increasing online streaming and diversification of entertainment tools (playstation, xbox and so on). High speed of internet and synchronous electronic devices also pushed growth in the US market. (MarketWatch, 2021)
2. What information do you still need to find, and why specifically do you need it?
· Understand Covid-19 impacts on TV market To realize shifts in market and customer behavior, if any. Covid can end up, but the habits created during pandemic could remain.
· Analyze consumer trends also in streaming and entertainment via TV Growth of the market is closely related to these subfields. It would be critical to follow consumer expectations in these areas to offer the proper TV.
· Evaluate perceptions against competitors Consumers’ perceptions will lead us especially in our marketing goals.
· Scrutinize market share history To pinpoint shrinks or growths in the market.
· Identify unique demands of the US and Mexican customer in terms of TV To shape and communicate our unique selling point.
· Identify the dominant channel where TV purchase is made To allocate our resources to the right channel.
· Frequency of TV purchase TV is widely used in the US and Mexican market, however we need to understand purchasing frequency to evaluate our market.
3. What desk research will you have to carry out to answer this question?
· Market research reports
· Market share and industry reports
· Competitors’ available growth numbers
· Competitors’ speeches and news focusing on the US market
· Articles on Covid-19 impacts
· Online consumer reviews analysis via amazon or other available platforms
· Statistics about the purchase habits, watching habits of TV
· Competitors’ marketing portfolio analysis
· Channels market share analysis
4. What field research will you have to carry out?
· Quantitative and qualitative market research to understand our market segment
· Ethnographic research to analyze the role of TV at the US and Mexican households
· Field trips to stores where TV purchase is made like Best Buy (qualitative observation)
· Interviews with the sales team to gather information about shopping journey
5. How much time and money will be needed to carry out this market research? 6. Who will be responsible for each element of the research?
· Research is key when entering a new market; thus, we need to allocate enough time and budget.
· The data on TV usage in the US and Mexico is not limited, we will have resources to make projections. Desk research will take almost one month. However, we still need to understand the differences between US, Mexican and Canadian consumers. Therefore, we need to deep dive. Thus, the field research might take two months after we negotiate with our research agencies to utilize their expertise.
· In terms of budget, desk research and filed trips will be completed in-house. For market segmentation and ethnographic research, we will allocate CAD$ 50.000 and try to negotiate with market research agencies to receive reasonable budgets.
7. When will all the key market research information be available?
· The deadline for the key market research information will be 25.03.2022.
Bloomberg. (2021). Smartt TV Market size worth $ 970.22 Billion, Globally, by 2028 at 17.01% CAGR: Verified Market Research®. Retrieved from https://www.bloomberg.com/press-releases/2021-11-30/smart-tv-market-size-worth-970-22-billion-globally-by-2028-at-17-01-cagr-verified-market-research
MarketWatch. (November 1, 2021). North America Smart TV Market 2021-2026: Size, Share, Trends, Growth, Outlook, Price, Key Players, Industry Analysis, and Research Report. MarketWatch. https://www.marketwatch.com/press-release/north-america-smart-tv-market-2021-2026-size-share-trends-growth-outlook-price-key-players-industry-analysis-and-research-report-2021-11-01
Multichannel. (September 28, 2020). Samsung Maintains U.S. Smart Tv Market-Share Lead. Multichannel.com. https://web-s-ebscohost-com.centennial.idm.oclc.org/ehost/pdfviewer/pdfviewer?vid=5&sid=dea9d878-44e7-4ae7-8cd9-ad6baf8affb8%40redis
Munson, B. (December 23, 2020). The Average U.S. consumer’s TV Keeps Getting Bigger. Fierce Video. https://www.fiercevideo.com/video/average-u-s-consumer-s-tv-keeps-getting-bigger
Omer, S. K. (2019). SWOT analysis implementation’s significance on strategy planning Samsung mobile company as an example. Journal of Process Management. New Technologies, 7(1), 56-62. https://scindeks.ceon.rs/article.aspx?artid=2334-735×1901056 o
PR Newswire. (2021). Smart TV Market size worth $ 970.22 Billion, Globally, by 2028 at 17.01% CAGR: Verified Market Research®. Retrieved from https://www.prnewswire.com/news-releases/smart-tv-market-size-worth–970-22-billion-globally-by-2028-at-17-01-cagr-verified-market-research-301433975.html
Statista. (July 13, 2021). Number of TV households in the United States from season 2000-2001 to season 2020-2021. https://www-statista-com.centennial.idm.oclc.org/statistics/243789/number-of-tv-households-in-the-us/
Statista. (Jan 18, 2022). Market value of the TV set market in Mexico in 2017 and 2018. https://www.statista.com/statistics/1127963/tv-sets-revenue-mexico/