Protecting the environment is one of the current world goals for the production of any product. There is much need for the world’s organisations to develop equipment free from pollution, thereby keeping the environment safe. In addition to environmental protection, it is highly advocated for most of the world industries to manufacture durable goods and energy saving. The Scoodrivezy is an electrical product providing transportations means by being a substitute for the suitcases with electrical capabilities. The product is well optimised to save energy, and it is environmentally aware.
This product provides an advantage that the already existing Electric walkers in the market are not providing. Hence, it gives autonomous transportation in the places where the conditions are not so favourable like paces with very little electricity. Compatibility and comfort are some of the things that the independent world is critically looking at. This product provides such laxities as it can be easily folded up and hence portable. This is way much advanced as compared to the possible alternative in the market today.
This study is a business plan involving the analysis of all the required aspects required to implement the business plan for the product successfully. The operation to fully implement the product starts with all the stakeholders’ need to execute all the necessary tasks for the product’s success. The business environment, business plan, financial plan, and the marketing plan are some of the primary implementations that need to be put in a performance to actualise the product’s marketing. Therefore, like any other product in the market requires proper planning for successful marketing, the Scoodrivezy also needs adequate and effective planning. It is therefore expected that the marketing of the product meets the common marketing goals.
Scoodrivezy is an electrical product of transport that provides an alternative means of transportation by combining the electric substitute with a suitcase, thus the solar suitcase electric walker’s name. It is safer for the environment and is energy saving for the user so that unlike cars, the danger of environmental pollution does not happen with this means of transportation. This solar suitcase electric walker works so that it turns into an ultra-light high-performance electric walker when it is turned on. It carries luggage as well as serves the purpose of transportation while at the same time cheap to operate, arguing from the fact that it utilises more than one source of power.
The product brings forth an unrivalled advantage that existing electric walker tools do not provide. Scoodrivezy solar suitcase electric stands out in such a way that it contributes to the luggage transportation, and it does it a way that provides a safe alternative means of transportation. In addition to the above, it’s also different from other electric walkers. It is convenient for users in situations where small amounts of electricity are needed in a matter of urgency. The product is possible to fold up hence making it highly portable. Above all, it can be used to carry luggage too, a feature that is absent from its existing comparable alternatives. Air pollution is prevented, and congestion in public places reduced because the solar suitcase is easily portable. The level of need is projected to plummet due to the increasing threat posed by congestion due to the ever-rising population. The challenge of congestion in public places, which results from the high number of vehicles on the streets, has also begotten other problems altogether.
Environmental degradation resulting from the high number of vehicles on the roads that emit unsafe gasses to the atmosphere is just one example that can be used to highlight the level of danger (Priem, Wenzel, & Koch, 2018). Its small and portable nature makes it easy to move from one place to another without worrying about congestion. This product is easy to use in that it takes very little time and energy to set it up. It contains a solar board charge that helps conserve energy in that the battery in it provides the saved power even when the sunlight is out. It would still be valuable, especially when it goes out of electric power or when it goes to places where there’s insufficient or no electricity. For instance, during medical emergencies, it can help transport medical equipment safely to those regions.
The history of locomotives is one that causes a feeling of excitement while at the same time leaves one wondering how people could live without any means of faster movement. The first locomotive in history was perfectly shaped logs rolled along a sloppy ground with luggage placed on the top side. The motivation at the time was to move heavy luggage from one point to another. Then necessity brought forth the invention of the steam-powered locomotive, which later used coal energy as its power source. All these inventions were focused on land since there was already means of travelling on the water for shorter distances. To cut the long history, quick designs led to motor vehicles being on the roads, ships on the water while aeroplanes in the air. At that point, primary transportation objectives were met through those inventions. The transportation objectives of the time included faster and convenient means of transportation as well as the ability to locomotive any goods, whether too heavy or lightest (Čečević & Antić, 2018). However, the previous transportation objectives are quickly changing into environment-friendly, energy-saving, faster, convenient, and space-saving transportation modes. That is where our Scoodrivezy solar suitcase electric walker, which doubles up as a luggage carrier, fits into.
The underlying idea here is inspired by a need to have an energy-saving product, environment-friendly, and that which occupies small space to beat the rising threat of congestion inroads. In addition to that, the fact that not all places around the world may not have constant electricity access makes the Scoodrivezy a likeable product in such areas. The need to come up with a product that can make it easier to transport luggage in a more convenient manner and in a way that promotes environmental conservancy. The intention of affecting agrees with efforts being put place by the United Nations as far as fighting global warming is concerned but also bridges a market gap. It would be convenient for emergencies since it is easy to carry.
The decision to name the product as Scoodrivezy derives from the words scoot and easy, which means it can be moved quickly and easily in case of an emergency. It is recommended for humanitarian purposes, especially in dry places with no electric power supply. The venture borrowed significant knowledge from electrical engineering. In my opinion, creating a product that could generate electricity through solar panels is a good idea for those places that don’t have electricity. This concept is a manufacturing and retail venture that humanitarians will use as well as the people who may need it travelling to or staying in places with no electricity.
Our vision is being the leading manufacturer of an energy-saving, environment-friendly, space-conscious solar electric walker that also doubles up as a luggage locomotive. The point here is to attach the business economics of this idea to conserve the environment without causing a lot of disruptions. The vision statement equally points to the need for ensuring that all humanitarian organisations operating across the world have access to this product to ensure that the people who need it the most benefit from its unique features. Also, global recognition for having invented such a game-changing product that prioritises a contribution to the betterment of people’s lives by helping to reduce emissions on the roads would be worth the effort (Bowen, 2018).
Our mission is to walk and transport luggage, whether there is electricity or not. To explain the mission statement slightly, the Scoodrivezy solar suitcase electric walker performs two main functions. It transports luggage while at the same time it is a walker. The good news with the product is that the two parts will never stop being carried out due to the lack of electricity since there is an alternative power source, which is solar energy.
Much as we are a profit-making organisation, our organisation is committed to making significant contributions to global concern issues such as global warming and promoting green energy. As initially mentioned, the transport sector has metamorphosed over the years to where it is currently. However, we noticed that each era had motivating factors that led to their invention. For instance, a motor vehicle was invented because there was a great desire to transport smaller units of goods over short distances and quickly (Brynolf et al., 2018). The overriding point here was an improvement from train locomotives that depended on coal energy as their power source. Each era of transportation technologies was always lucrative, including the present generation of motor vehicles, aeroplanes, and ships on the water. We could have chosen to invest within the current era of transport technologies but settled on something else whose lucrative nature may not be exact but brings hope to future occupants of the earth’s surface.
The organisation’s employees represent a phase of diversity since all races, both minority and majority, and both the gender and age groups make up the organisation’s staff numbers. The recruitment process mainly targeted individuals with a shared interest in serving humanity in many ways, such as contributing to the fight against global warming, developing low-cost products with a high degree of leveraging consumers, and many more (Carvalho et al., 2019).
The organisation has two primary goals, one of which is a long term goal, while the other is a short-term one.
To set up four manufacturing plants, two in Canada and the other two in Mexico by June 2022 as part of a plan to expand outside the United States.
To manufacture two thousand pieces of the Scoodrivezy solar electric walker each month, starting from November 2019 to June 2020.
As it has always been with every product development case, all the involved processes do not occur in isolation from conventional practices that define the same functions. Even though the Scoodrivezy is a new invention in the market, its introduction to the market must conform to traditional approaches that other industry products have always followed. In other words, the outline of the product’s operating environment must be framed within the confines of the industry business practices (Shumba & Zindiye, 2018). Therefore, the operating environment refers to the description of activities that lead to the actualisation of the concepts that pertain to producing the product and ultimately taking it to consumers for consumption.
Operationalisation begins when stakeholders come together and implement necessary tasks that would lead to the production of the product. For Scoodrivezy product, such studies would include location acquisition, meeting all legal obligations that the regulator has put in place, and hiring the employees. Also, among those tasks would consist of purchasing raw materials, installing necessary equipment, and finally, the actual production.
Another critical area with the operation environment other than the production phase is the constitution of company structures. That is to say, organising the company into departments to ease managing activities of the company. Some of the necessary departments that the company owners must ensure are up and running include the human resource department and finance and accounting, production, or manufacturing department, depending on its type of production line. Also of great necessity, since the product involved is a new one is the sales and marketing department.
Finally, the last significant area that defines a company’s operating environment is the post-production activities that include inventory or warehouse activities, distribution channels, marketing, and actual sales. All these activities come at the tail end of the product idea’s operationalisation but are vital to the product’s success. The warehouse or the inventory depending on the company’s size is sometimes included within the production phase. However, of late, it has turned out that the warehouse comprises numerous activities that make it necessary to have it separated from the activities experienced in the production phase. Some warehouse activities include receiving the merchandise from the production, reserving storage spaces, order picking, packing, and finally occasioning shipping dispatch (Shumba, & Zindiye, 2018). In summary, the operating environment entails activities that begin from the first step of actualising the concept of product development to the point a complete product reaches the consumer.
Being a manufacturing company, the company will maintain two major facilities: a manufacturing plant and a go-down. Simultaneously, the other will be a retail store that will also double up as the company’s main offices. The plant and the go-down will be located in the western part of Dearborn in Michigan. The location of a manufacturing plant anywhere within the U.S is something that is highly regulated. Some of the issues considered include the drainage system and waste treatment guided by the U.S Environmental Protection Agency. Another critical point is that the plant must be within a manufacturing zone.
Coming to the retail store that also serves as the building hosting the organisation headquarters, the location must be within an area that falls under a city’s business district or within the busy suburbs. Being retail, several issues must be considered, as well. Some of the common problems that people like seeing in a retail facility include ample parking space, other social amenities such as kids’ playing ground, pool table sections, restaurants, and many more. The display strategy must be accompanied by proper lighting that ensures whatever is on display is illuminated fascinatingly inside the store. The store layout must promote access to vital points such as customer care desks, customer safety, and proper ventilation to promote air circulation. Finally, the facility partitioning must also recognise and enable the company brand narrative (Mowrey, Parikh, & Gue, 2018). That includes the dominating colour, spaces left between the pathways and product shelves, and access to critical information concerning the product (product informants, customer care desk, standby fitters, and many more). Below is a diagram that shows what the company would consider as its possible facility layout.
Figure 1: Facilities
The organization will be registered as a company due to the need to detach its shareholders’ liabilities (Shafritz, Ott, & Jang, 2015). The company’s operation line, which is manufacturing, may not be favourable for other business forms, such as partnership and a sole proprietorship, whose liabilities are similar to the owners. A board of directors will head the organization structure. The committee will serve as the top decision making organ. Below is the diagram depicting the company’s management structure.
The Scoodrivezy solar electric walker product is a bit unique because it combines the functions of electric walkers that are popular with cardiac patients and a luggage carrier suitcase making it a development of both the healthcare and transport industry. Therefore, the operating environment of the product represents two profound sectors, which are transportation and healthcare. While focusing on the transport part of it, the product has a suitcase that can carry luggage for subsistence use. Several advantages come with considering to use of the product as a luggage carrier.
First, the scoodrivezey solar electric product is energy-saving. It uses both electric power and solar power as its primary energy sources in an interchangeable manner. Secondly, the product is environment-friendly and small in size; hence, it can reduce congestion inroads. In addition to that, its usability is not restricted to electricity accessible areas only since it also has a solar charging system that enables it to harness solar energy. The emphasis, among other considerations, is the need to develop a product that can make it easier to transport luggage in a more convenient manner and in a way that promotes environmental conservancy. The product being used as a piece of luggage transporting tool on the roads agrees with efforts being put in place by the United Nations as far as fighting global warming is concerned and bridges an existing market gap that this plan analyzes in the pages that follow. In all several ways, its use would be convenient to emergencies since it can be folded and carried in another locomotive as well.
As mentioned initially, the product is also fit for use as an electric walker that is usually popular with patients that suffer from cardiac and related complications. The walker helps these patients manage their weight while taking exercises. Scoodrivezy solar electric walker may not be entirely suitable for this purpose because it lacks various features that other electric walkers meant for cardiac walking use. They are usually fitted with fully adjustable arms to different patient components that are moulded with pads that are sculpted for forearm hence keeping the arms from sliding off the places. Nonetheless, the Scoodrivezy solar electric walker is just a modest version of the above cardiac walkers. It has general characteristics of an electric walker with other separate features such as a solar panel and suitcase added upon it.
The ambivalent nature of the product presents an advantage to the manufacturing organization since an individual may consider purchasing the product to carry luggage. In contrast, others would do that specifically for walking purposes. Another advantage is that the world is seriously reconsidering the use of products that contribute to environmental degradation. Such include the high number of vehicles on the roads that emit unsafe gasses to the atmosphere. Another factor that has been identified as a challenge to the environment and economic progress is the congestion of vehicles on the roads. The product contributes to easing this challenge through its small and portable nature to utilize small spaces. Also, the product is easy to use in that it takes very little time and energy to set it up. It contains a solar board charger that helps conserve energy in that the battery and provides the saved power even when the sunlight is out.
The product features discussed above are some of the strengths that the organization will capitalize on and take advantage of various opportunities existent in the business’ functional environment to carve out success.
Company Scoo is going to be a corporation. It will be incorporated by a group comprised initially of two shareholders but later grew to four after being joined by two more individuals. The shareholders also own various interests in other businesses in the country. The company’s business line is for-profit, meaning it will aim to earn profits from its responsible operations. Several factors influenced the decision to go for a corporation over partnership (Ring et al., 2018). First was the expansion of the global market that would have proved challenging to achieve through partnership. The shareholders also favoured a legal organization that was limited in liability, and a partnership was not in a position to provide that. The day-to-day management of the company will be under a board of directors elected by the shareholders. On its part, the committee will constitute management headed by the chief executive officer supported by another five directors. The company will be organized into five central departments: research and business extension, marketing, communication and customer relations, finance, and production.
Location of the Company
Our facility’s physical location will be located in the west of Dearborn City, found in Michigan. The city is located in Wayne County that still falls within the metropolitan area of Detroit City. There were several considerations made before settling on this particular location. First, the place falls within the southwest part of Michigan State, a traditional manufacturing hub whose local government laws usually favour manufacturing activities. Also, most raw materials used in manufacturing are all found within the same locality, including finished parts.
The Scoodrivezy will settle for an already identified standard manufacturing facility that measures 600 square feet with a parking lot of infinite height and measures seventy feet wide by one hundred and eighty feet long (180ft x 70). The local laws require that all manufacturing facilities must measure at a minimum of 380 square feet. The facility is also fitted with an excellent drainage system, waste treatment mechanism as per the U.S Environmental Protection Agency (EPA).
Whether to Buy or Lease the Facility
Before deciding whether to buy or lease the facility, the management will have to apply capital budgeting principles to determine the best way to go. Leasing involves engaging the facility owner on a contractual arrangement that will see the organization obtain the facility from its lawful as agreed by terms of the periodic lease rental payment. Some lease terms include an option to buy while others not. Buying, on the other hand, involves the total acquisition of an asset from lawful owners. To determine whether to lease or buy, the management team will evaluate periodic cash flows under leasing and buying. Each result is then discounted through the after-tax cost of debt to find out the present value of leasing cost compared to that of buying.
Leasing the facility will cost the company $500, 000 annually for five years, and by the facility $1.8 million. Additionally, the firm will secure a bank loan of $ 1.8 million at an interest rate of 5% per annum. Purchasing the facility comes with other associated costs such as maintenance, fueling, and power, security, and others, which every year, will total to $ 100, 000. The organization’s taxation rate is 40%, with a weighted average debt cost on a long-term basis is 6% with allowable straight-line depreciation of 5 years. Having considered all calculations that pertain to the determination of the present value of leasing and purchasing the facility, which is at 3.6%, we find that the company will spend $1,354,515 on leasing while the cost of buying will be $1,395,017. Since the purchasing amount has a higher present value of cash outflows than the leasing amount, it will prefer leasing the facility to buy it.
Zoning and Other Legal Issues to Deal With
Zoning and land use regulations ensure real estate developments are done as per the existing laws (Silver, 2016). Dearborn city council specifies the type of buildings erected in a particular zone in height, number of rooms, location of utility lines, and access to facilities. The legal issues that the company will have to attend include the acquisition of federal government, state government, and local government. Given that the organization is venturing into manufacturing, it must demonstrate compliance with laws and regulations that concern issues of the nature of quality control, pollution, and safety. Other compliance requirements by the U.S Environmental Protection Agency (UEA) include mercury pollution and many more (Ring et al., 2018).
The company is constrained from exhausting its maximum potential due to various factors such as legal hurdles, sufficient capital, and market size. One of the main reasons of settling in the manufacturing zone of the State of Michigan is because state and local government legal requirements for manufacturing are relaxed to promote entrepreneurship in manufacturing (Pérez-Pérez, & Avilés-Hernández, 2016). However, despite all such efforts, there are still complexities within the regulations that make it very difficult to outrightly start-up a manufacturing firm. The company is keen to break into the global market even though such a project appears to be a bit capital intensive for the company currently as it is. The Scoodrivezy solar electric walker is neither an essential commodity nor a luxurious one; its market size is small and falls between the two classes.
The Work Flow Plan of the Company Operation
The company’s primary operations include:
- Acquiring raw materials (parts), mechanical engineering works.
- Assembling of parts.
- Quality assurance and distribution.
It should be noted that some of the raw materials internally manufactured while others are sourced from outside. The company only outsources the quality verification service and product distribution; hence, it does not own the supply chain. The diagram below attempts to demonstrate some of the primary operations that take place within the facility.
|Registry Fees (for-profit entities)||ICS
· Registering the company name $50
· Incorporation fee $240
· Name and search $60
|Business License||Detroit City- Newborn Municipality (license is renewed after five years $555) https://detroitmi.gov/how-do-i/apply-or-renew-license/business-license-checklist||$555|
|Total Expenses (including taxes)||$900|
After the acquiring certificate of incorporation, the next move will entail the acquisition of federal, state, and local government trading permits. After that, the team will move for the Dearborn facility and complete leasing transactions (McKeever, 2016). At this particular juncture, the shareholders will be responsible for the company’s day-to-day running until they form the directors’ board. The team must develop significant departments such as finance, production/engineering, human resource, and partners to consult on issues such as legal and economic decisions.
As indicated in the operations flow section, the company’s significant operations processes include acquiring raw materials (parts) to assembling the scoodrivezy solar electric walker. The SCOO will obtain the raw materials from equipment parts manufacturers located within Detroit City and its metropolitan area. The next process is engineering works that involve mechanical and electrical to ensure that the product’s operation unit component can convert electrical energy into mechanical energy to be movement (McKeever, 2016). Another critical process is the assembling of parts. The process is crucial in the sense that a successful process automatically results in the right functional product. Inspection refers to the quality assurance steps that a professional body or regulator performs to ensure the product meets required standards. Through the distribution channels, product distribution provides a successful movement of the product from the manufacturer to wholesalers, retailers, and consumers. It should be noted that some of the raw materials internally manufactured while others are sourced from outside.
Human Resource Plan
The human resource department in any organization is a vital organ that directly impacts its success or failure. The department looks into issues related to people, such as hiring and firing employees, compensation and benefits, performance management, and culture development (Noe et al., 2017). After obtaining an incorporation certificate for their company, the company shareholders will look for a team of professionals to hire. Some of the positions that will be considered first include the chief executive officer, human resource manager, finance and accounting specialist, production manager (a qualified engineer), and marketing expert. The human resource (HR) department will assume the responsibility of filling-in other positions such as that of a receptionist, accountants, and other employees need may demand. The HR department will use various parameters to decide on what each employee should earn. Such parameters may include experience, academic qualification, as well as past achievements.
Leadership and Management Strategies
The company will rely on analysis, making decisions on those analysis results, and finally acting upon them with a view of creating and sustaining competitive advantages. Leadership and management strategies that the company will choose are that which will accord every employee a chance to make their own decisions independently without being influenced by anyone (Noe et al., 2017). However, with such freedom to attend to tasks, they will also be required to account for every decision they make. In such a leadership strategy, everyone becomes judged on decisions they make as individuals and not as a collective responsibility.
Recruitment, Training and Retention Strategies
The recruitment policy of the organization will be based on talent, passion, and qualification. The organization will also endeavour to retain such skills through strategies that focus on building cultures that promote respect, demonstrate a high level of trust, and give employees a sense of belonging. Fair revenue sharing that rewards employee according to their contributions also helps to retain top talents. The organization will come up with methods of training newly recruited employees.
Employee training is a program designed to increase technical skills and knowledge to do a better job. This usually happens after the orientation of the workplace to the employees. The training process expounds the employees’ thinking, thus leading to quality performance and an effective workforce. Training of employees can be done in different ways such as on-the-job training, job rotation and job mentoring. In-School, employee’semployee’s capability and efficiency at work will be achieved through specialization and division of labour. Being assigned work that one is best suited to leads to a high level of productivity and confidentiality at the workplace. The safety, health, and welfare at work act 2005, strongly highlighted the need to provide employees and ensure their health and safety. This reduces employees’ chances of suffering from injuries and ill health and saves the company from legal battles with employees. Employ orientation highlights the dodo’s and do’sdo’s of an organization, introduces an employee to the existing staff and the entire working environment.
Nevertheless, a good impression and commitment to service delivery by the employee are usually advocated for during orientation. This may aid in improving employees’ performance through building skills and relationships quickly. Managers play a fundamental role in employee development. They businesses by developing, facilitating, and supervising employees’ training programs, thus enhancing its effectiveness.
The School will use a project evaluation review as a performance appraisal type that requires employees to relook into the whole process that delivered a given result. Success and failure of the project are always known after the process is completed. Recommendations made are still used to improve future projects. Management of the employee performance appraisal goes more profound than what can just be commented about casually. It involves an organization’s organizational strategy, practice, and policy change concerning expectations for the employees and measuring employees’ monitoring results. One better way to go about this involves letting the employees set their performance expectations together with the likely timelines they can work within. Research has shown that employee-driven performance appraisal succeeds more than the ones that are driven by employers themselves.
As initially indicated, several factors can determine how compensations are done in an organization (Knepper, 2018). The company will observe all the existing employee compensation mechanisms base salary, incentives, wages, and commissions. Total compensation constitutes total cash reward that an employee receives from his/her employer after a given period as agreed during. An organization needs to let its employees know the compensation strategy being used. The organization’s organizational culture will emphasize improved health insurance policies for its employees, among other benefits such as study-leave pay, maternity, and paternity leave pay.
Any organization and community related to the product will be considered crucial key personnel. The two are the majority shareholders in the company but also have other investments in the non-profit sector. These societies must have been keen on the climatic change hence explained better through a study of their line of investment ever since. This can also help the product to be updated and contribute to the protection of the environment.
Again, any institution that protects society and the environment gives positive opinions and contributes will be the main driving force for the product to be more perfect, and it is indispensable. The more fields involved, the more capital is invested in product innovation. Ultimately push Scoo company to success.
Product Marketing Plan
The marketing plan for Scoodrivezy entails an overall business plan and marketing action for a specified period. The entire project aims to develop a strong customer base for the Scoo Company, increase the overall sales, identify the target market correctly, and decide the appropriate pricing strategies. The document contains:
- The market analysis.
- The competitive analysis of the business environment.
- Organization analysis of the Scoo Company.
- Its marketing strategies.
Market Analysis for Scoodrivezy
Scoodrivezy is expected to deliver outstanding benefits to the consumers. In contrast to other available products in the market, it can use both solar and electric energy. This makes it efficient for use even when consumers are not around their homes for recharge. All they will need is to put the product in direct sunlight to recharge. This is an added advantage to the product as the company strives to go green by reducing the amount of energy consumption and the possible environmental impacts. Besides, the product is portable, making it efficient for consumers to move from one place to another without traffic delays. The primary data for marketing research is collected through online surveys and engaging potential customers through direct mails (Aia, n.d). This approach is useful in managing various types of data, such as their preferences and demographic information that can be used to modify the product to meet consumers’ needs.
On the other hand, secondary data will be sourced from databases, such as scooter licenses and periodicals. Social networks such as Bing and Google can be used to collect supplementary data. The information collected demonstrates the need for accessible and reachable retailer stores and a calling centre to effectively serve the customers.
The target market for the Scoodrivezy is North America and Latin America. These markets are projected to record the highest growth between 2019 and 2030 (Grand View Research, 2019). The development is associated with increased innovation that is continuously leading to improvement in walkers’ design and efficiency. Other markets like China, Japan, and India are also prospective, but they are highly concentrated with manufactures that create barriers to new entrants.
The global competition for electric walkers is highly fragmented. Various factors are used to categorize the market into distinct consumers. They include the segmentation based on technology, which is either plug-in, battery, or solar. Geographical segmentation is based on markets such as the US, China, Japan, and India (Saillaja, 2013). The top five players account for more than 35% of the market share. These are Zhejiang Luyuan Electric Vehicle Co., Yadea Technology Group, Dongguan Tailing Electric Vehicles Co, Jiangsu Xinri E-Vehicles Co, and AIMA Technology. Most of these players are based in China, which gives an excellent market opportunity for manufacturing in the US since the products’ transportation cost will be minimized. The industry also has other significant players with lower market share, such as Ampere Vehicles Pvt, Hero Electric Vehicles, and BMW AG. Other numerous companies are still emerging due to governmental support in reducing fuel products’ emission from conventional walkers.
|Company||Energy Used||Price Strategy||Geographic Location||Competitive Score (Out of 10)|
|Yadea Technology Group||Electric||Premium price||Asia||7.7|
|Zhejiang Luyuan Electric Vehicle Co||Electric||Price leadership||Asia and a manufacturing plant on the US||8.0|
|Dongguan Tailing Electric Vehicles Co||Electric||Price skimming||Asia and manufacturing plants across the world||9. 3|
A table on the competitive analysis
Organisational Analysis –SWOT Analysis
A significant strength of the Scoo Company is introducing highly innovative and environmentally friendly walkers in the market. They can be recharged using either electric or solar power. This innovation gives the company a competitive advantage that will help it thrive in the market. The company is establishing in a relatively unexploited market in the US compared to other markets like the US (Aia, n.d). The company’s strategic location near the consumers will significantly reduce the cost of transporting the products to the market.
A significant weakness that the Scoo Company stands to face is the time needed to recharge the walkers. This is a hindrance to the product’s efficiency, and some customers may find the walkers to be unsuitable. Besides, the change of the batteries may be expensive for some customers. Even though the walker can recharge from solar energy, its usefulness may be hindered by seasons such as winter and bad weather.
The company’s significant opportunity is government subsidies for designing and manufacturing eco-friendly products, especially the ones that depend on green energy. The company has adequate governmental support to concentrate on the walkers’ production rather than addressing strict regulations. Walkers are gaining popularity in the healthcare system to facilitate the mobility of patients suffering from heart diseases, among others (Grand View Research, 2019). This is an emerging and up-and-coming market that will increase the expansion of the company. Another opportunity that the Scoo can focus on is the growing demand in the Asian markets such as India. In the long run, the company can establish a manufacturing plant in the market to address the customers’ needs. It can also increase physical distribution to reach all potential customers.
The depletion of fossil fuel reserves across the globe contributes to an exponential increase in gasoline prices (Saillaja, 2013). This challenge creates a demand for electric walkers as consumers are encouraged to get alternative sources of energy. Besides, hybrid vehicles have limited charging infrastructures that slow their adoption in the market.
The Scoo Company faces the threat of stiff competition. This industry is attractive to many businesses since it has low entry barriers. The demand for energy-efficient walkers is attracting many players in the market. The rise in the rising cost of electricity is another significant factor that the company should consider in the walkers’ production.
The company can change its threat into an opportunity by taking advantage of the growing demand to perfect its product quality, build a strong brand, and attract loyal customers. These strategies are effective in facilitating the company to withstand the severe competition in the market. The weakness of the long time that is required to recharge the walker can be turned into a strength by focusing on innovation to develop more powerful batteries that charge in a short time and stay refreshed for a long time.
Scoodrivezy is designed to address the growing demands for mobility at a lower cost and with the least environmental impacts. It also needs to penetrate the healthcare needs of patients to enable their mobility. However, the market faces high competition from other players that have already established their niche. This necessitates the need for the company to differentiate the product to increase its competitiveness. The Scoodrivezy is designed with the ease of usage because of its small size. Unlike the offerings of other competitors, this product can easily be moved from one place to another. Besides, its power system integrates solar and electric energy, a combination that many players in the market have not achieved. These differentiations are expected to place the product on the front line in the market.
The Scoodrivezy will use the penetration pricing strategy to introduce the product in the market. It involves setting a low price to gain market share, after which the price is adjusted appropriately to get the set profit margin. It is an ideal strategy that catches the competitors with a surprise and encourages word-of-mouth recommendations for the product since prices are attractive. Since the sales volumes are expected to be high, the company can quickly obtain a distributor.
The company’s distribution strategy will be the online model in combination with the retail stores that are owned by the company. With the online community’s advancement, the Scoodrivezy targets to reach many potential customers, primarily through social media. This distribution strategy is designed to reduce the selling costs of the company by eliminating the third parties. The physical stores are also expected to be the showrooms where the company’s management will interact with potential customers.
Scoodrivezy aims to adopt social media as a marketing tool using platforms like Twitter, Facebook, and Instagram. The official websites of the company will also be used to promote the product in the market. The forum will generate online orders, relay information to customers, and even engage them in the form of customer care. This strategy will be combined with advertisements over television to bring the product’s features closer to the imaginations of the customers. Public relations will also be used through displays, demonstrations, and exhibitions to stimulate consumers to buy.
The best thing that any manufacturing company should ensure that make before launch or even before the conceptualisation of any new product is developing a good marketing plan. All the milestones of product development are significant as they help create and actualise the product goals. As usual for any manufacturer worldwide to expect the product to accrue the organisation of great profit, so is the Scoodrivezy manufacturer. The product is expected to serve a good market, be environmentally friendly and serve as an excellent alternative for the currently existing suitcases and electric walkers at the same time. The product is made to serve a purpose while protecting the surrounding environment, which is crucial for it to be considered. Even though the company decided to manufacture the product as a language carrier, another manufacturer can consider manufacturing the product purposely for walking needs.
Management wise, the organisation makes the most critical decision on the best place to set the manufacturing facility. In addition to this, the organisation has considered all the available opportunities and challenges to carry on the facility’s actualisation successfully. It is regarded as the possible taxation rate as per the potential net profit, the probable depreciation rate, fueling cost, and the likely cost of power. Having considered all these determinants, the organisation is confident of achieving the goals and the missions put in place as far as the manufacture and the actualisation of the product are concerned. After acquiring all the required raw materials, the company leased the part of the land needed to meet its manufacturing goals. It is much expected that the goals will be achieved based on the current outline milestones of the business plan.
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