Discuss about the Business Strategy For U2i Mobile (Sim Cards) Company?
At present, mobile SIM cards are the part of the life. The business of the mobile SIM cards is very profitable at the present market. It will be very good for the U2I Company if they open a new branch in Birmingham. I am a Graduate and also have more than four years of experience in the sales department. I will manage the new branch efficiently if you let me the chance of doing it as the branch manager. The experiences in the sales department gave me the ability to handle different clients, the way of making efficient deals with them and to develop a good strategy for business. Birmingham is chosen as the location of the new branch for some important causes. The reasons behind the selection of the place and the current market situation will be discussed in the next section. The details about the business strategy of the new branch will be also discussed later in this proposal.
The business of the mobile SIM cards will be effective in the places with a high population. Birmingham is second to London in the population. The economic development of the city is very impressive. In Great Britain, the city is the largest centre for the employment in education, health and other public sectors. This will be an effective reason for a well business growth of the U2I mobile SIM cards company as the people with an economic stability will be the customers of the mobile company. The transport system of the company is very good. Being a central location, the city is a major hub of transportation on the motorways, railways and canal networks. This is a reason of passing a lot of different people through the city. The sales agent of the mobile company will get the chance of meeting with a lot of peoples and thereafter make a lot of sale in Birmingham. There is another cause of choosing the city; it is the home of five universities. The students of the universities are the major customers of the mobile SIM cards. The company will target the students of these universities as the major customers.
Strengths of the business: At the present age of technology, mobile is very important to all the people. The business is very demanding and has the possibility of a good future growth. The technology is getting higher day by day. In this situation, starting a new branch of mobile SIM cards with extra facilities will be very helpful for a good business (abdi et al. 2013). As stated previously the main strength of the business in Birmingham is the availability of a lot of people.
Weaknesses of the business: The main weakness of the mobile SIM cards is the competitive market. There are many established mobile companies are available in the city. Therefore, the business will face a tough competition with the other companies.
Opportunities of the business: The competitive market of the mobile SIM cards is also is an opportunity for the business. In this situation, the company is able to widen their services of the SIM cards onto the existing companies. It will be a great opportunity for the company of they can introduce some extra facilities in their SIM cards and then be able to give the proper advertisements of the offers or services for getting customer attraction.
Threats of the business: New technology is the main potential threat of the business. New products with new technologies can provide extra facilities to the customers. The customers will choose the new products with more facilities instead of the existing products of the company.
There are many of the mobile companies which are conducting their business in the city. The new branch of the U2I will face market competition with the existing companies. The present market situation has to be analyzed before starting the business. The available SIM cards at the city are Orange, EE, Vodafone etc. The new branch of the U2I mobile SIM cards in Birmingham will face very tough competition with these companies as they have already developed their market in the city. A good strategy is needed for the effective business of the company. In order to attract a huge numbers of the customers, the company will introduce some new offers in the SIM cards like extra talk time, low roaming charges, extra facilities in the internet charges etc. The next task will be the advertisements or promotion of the offers of the SIM cards. There are many ways available for the promotion of the SIM cards. In the first phase of the business only the news paper advertisements and the social media promotion will be done. In this phase, the customers should be ensured by the advertisements that the products of this company will must fulfil their needs with more facilities. Beside the promotion, the sales activity will be also started in the initial level (Wu and Chu, 2010).
At the initial level of the business there will be total 30 staffs at the new branch of the U2I mobile company at Birmingham. The staffs will be divided into two parts with two different team leaders. One team will manage the promotional activities of the company and another will manage the sales activities. Both the two teams will be made by the combination of part time and full time staffs. In the first three months, the total focus will be at the promotion of the U2I SIM cards. The sales department will arrange some camps in some selected location for the sale of the products and developing awareness about the products. The campaigning of the SIM cards and the offers will be done at Shopping malls, Bus and railway junctions, near the university campuses and popular markets (Hanninen, Hallikas and Pynnonen, 2010).
In the first phase, the company will have the target of selling 2000 SIM cards monthly. In the first week, the target will be 200 and then in the second week it will be 500 and in this way the target will increase and will be achieved by the above mentioned strategy.
The company will get more number of customers with a huge amount of sales revenue from the new branch. The company will keep getting revenues from the customers who will start using the SIM cards of the company. The new branch will also increase the brand identity of the company which will affect the total business of the company positively.
Planning a budget is necessary for running a business smoothly in the future years. Effective budgeting will help the company to stay afloat in the competitive scenario of the market. Before making a budget, the planner needs to find out the list of expenditures that the company has to make to operate smoothly (Blackwell, 2008). The expenses included in a budget are classified as Fixed and Variable expenses.
|
PARTICULAR |
Amount £ |
|
Building cost Office furnishing Hiring of employees Tax and insurance Marketing expenses Transport costs Rents Advertisement costs Solicitor’s fees Consultancy cost Campaigning cost material purchase cost |
50000 15000 25000 150 3500 1000 850 700 300 200 3000 10000 |
|
Total |
100700 |
In case of failure of the first plan, another plan is here. Some of the initial level cost will be decreased in this strategy. In this strategy, more focus will go to the advertisements. TV advertisements will be given for the further growth of the business. In the first two or three months of the business, the awareness will be generated within the targeted market segment. The advertisements of the products will be very attractive to generate a good image of the SIM cards of the company.
The staffs of the sales department will talk to the customers about the services of the SIM cards available in the market and will tell them the facilities of the SIM cards of this company. Dealing with individual customers will help the company to understand the need of the customers and the perception of them about the company (Shahriar, 2012).
|
PARTICULAR Building cost Office furnishing Hiring of employees Tax and insurance Marketing expenses Transport costs Rents Advertisement costs Solicitor’s fees Consultancy cost Campaigning cost material purchase cost |
Amount £ 30000 8000 10000 150 1500 1000 850 100 300 200 1000 5000 |
|
Total |
58100 |
The new branch of U2I mobile company at Birmingham will be very profitable for the company. The business has a good opportunity in the city. Although, there are some risks of the business but the company will overcome these risks by the mentioned strategy. The mentioned strategy of the business will be very effective in the growth of the business of the new branch as well the whole company.
abdi, A., Ashouri, M., Jamalpour, G. and Sandoosi, S. (2013). Overview SWOT Analysis Method and Its Application in Organizations. Singaporean Journal of Business , Economics and Management Studies, 1(12), pp.69-74.
Blackwell, E. (2008). How to prepare a business plan. London: Kogan Page.
Hanninen, K., Hallikas, J. and Pynnonen, M. (2010). Mobile internet business models in emerging markets. International Journal of Business Environment, 3(4), p.427.
Shahriar Ansari Chaharsoughi, (2012). Effect of sales promotion on consumer behavior based on culture. Afr. J. Bus. Manage., 6(1).
Wu, F. and Chu, W. (2010). Diffusion models of mobile telephony. Journal of Business Research, 63(5), pp.497-501.
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