Garbles Cellular Phones
Problem & Solution
[This sample business plan is based on one from several years ago, valid then, and still useful as an illustration of what a business plan contains and what issues it covers. It is not valid for information purposes today.]
Garbles Cellular Phones, Inc. is taking advantage of an opportunity to become a highly distinguished and recognized leader in the cellular communications industry. It is the goal of our company to become established as the leading distributor of wireless communications services in the metro Niceburg area.
Market Size & Segments
Garbles Cellular Phones, Inc. will focus on five customer groups, bearing in mind that it is quite customary today to have more than one cell phone per family:
- Children in the age group of 10-17 years old
- General public
- Service organizations and companies that need to be in constant communication with their employees.
The market for cellular phones and their accessories is very fragmented, crowded and competitive. Among these, there are only a few large local firms that serve the entire city of Niceburg and its surroundings. The remainder are small firms that sell from kiosks in the surrounding malls. Garbles Cellular Phones current niche in its location, variety of products and expertise in serving the public will assure the projected sales.
We expect to take full advantage of the trends described in the Market Analysis above, and try to penetrate the market with new innovations and gadgets — mainly with the younger generation, using advertisements and demonstrations. We shall also try to lure independent small sellers to join our effort.
The U.S. market is dominated today by three large companies:
T-Mobile Wireless – owned by a subsidiary of Deutsche Telekom since May 31, 2001.
- Revenues:Exceeding $13.6 billion in 2001.
- Wireless Phone Service Subscribers: Cellular voice, messaging and high-speed wireless data services to more than 8 million customers.
- Cellular Phone Service and Technology: T-Mobile Wireless operates the largest all digital, wireless network based exclusively on GSM (Global System for Mobile Communications) technology. GSM is the most widely used digital standard worldwide, accounting for more than 70 percent of the total digital wireless market.
Cingular Wireless is the second largest wireless company in the U.S. A leader in mobile voice and data communications, Cingular is a wireless company determined to promote the individual to a new level.
- Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Headquarters in Atlanta, Georgia. SBC owns 60 percent of the company and BellSouth owns 40 percent, based on the value of the assets both contributed to the venture.
- Revenue on the cellular service in Year 2002 was more than $14.7 billion.
- Cellular Phone Service Subscribers: more than 22 million voice and data customers across the U.S.A.
- Cellular Phone Service and Technology: A leader in mobile voice and data communications, Cingular is the only U.S. wireless carrier to offer Rollover, the wireless plan that lets customers keep their unused monthly minutes. Cingular provides cellular/PCS service in 43 of the top 50 markets nationwide, and provides corporate e-mail and other advanced data services through its GPRS and Mobitex packet data networks
Nextel Communications, based in Reston, VA, is a leading provider of fully integrated, wireless communications services on the largest guaranteed, all-digital, wireless network in the country.
- Ownership: Nextel Wireless is traded on the NASDAQ National Market under the symbol NXTL. Nextel Partners is a separate company traded on the NASDAQ National Market.
- Revenue on the cellular service $8.7 billion (2002).
- Cellular Phone Service Subscribers: 10.61 million (Q4 2002).
- Cellular Phone Service and Technology: Nextel uses a packet-based platform, the integrated Digital Enhanced Network (iDEN™) technology, developed by Motorola. The Nextel 4-in-1 service—Nextel Digital Cellular, Direct ConnectSM, Nextel Mobile Messaging, and Nextel Online®—covers thousands of communities across the United States. Nextel and Nextel Partners, Inc., currently serve 197 of the top 200 U.S. markets.
Garbles Cellular Phones is aiming to gather a share of the market from these three.
Brand names are of little, if any, importance. The key to the buying decision on the part of the consumer is the salesman and the cell phone being in front of them. As has been pointed out in the Competitive Analysis section there are other sellers with similar brand names as those supplied by Garbles Cellular Phones, Inc. which may even be less expensive. It is essential that the salesman point out the salient features and selling points favoring our products. Most importantly, our products must be available in the retail outlet, since whatever products our store carries are the ones that are going to be sold.
The need to attract, acquire, leverage, and retain customers remains a primary concern to business. Revenue growth through customer acquisition and retention is as important a requirement in e-commerce as it is in other businesses. Customers, especially in the Western business culture, count speed of service as a key reason why they do business with a company. They resent delays and hate waiting for service. In the United States, almost 80% of the gross domestic product (GDP) is generated through different kinds of services, and speed of service no longer distinguishes an enterprise as providing superior value. Customers generally are not thrilled if they receive good service, but they are highly dissatisfied if they do not. Garbles Cellular will provide the necessary framework to cope with these demands by cutting the waiting time for a service.
Customers also want consistent, reliable, and easy-to-use service. As the speed of service increases, customer expectations grow, making friendly, easy, and solution-oriented customer service an important business trend.
Reflective shoppers get some support from e-commerce as well. They like to investigate products precisely and consciously. However, when browsing costs a lot because of on-line charges, they do less of it. Consequently, they do not get a holistic view of the available options, and their expectations often are not met. Reference-spending customers do not let themselves be hurried or forced. They use alternative offline sources to get information. They refuse aggressive marketing, which is accepted in Western e-commerce.
Soon, shoppers will simply wave their cell phone over the item they want and the charge will automatically appear on their cell phone bill. It’s happening in some cities overseas already. And right now, MasterCard and Motorola are testing out a similar program here in the States. Retailers have registers that will take the signal from the cell phone, and the purchase is automatically converted to a MasterCard charge. Buyers don’t have to sign anything. The scary part is what could happen when people lose their cell phones or have them stolen. There are lots of technical and legal issues to work out here, but paying wirelessly is going to gain momentum quickly.
Garbles Cellular is planning to take advantage of these trends of buying patterns. We shall also be very quick in establishing our own website to take advantage of E-trade.
Keys to Success
Keys to Success
Our company keys to success will include:
- Provide excellent customer service
- Grow and maintain a referral network of customers
- Focus expertise in GSM cellular phones and GSM cellular phone programs
- Respond rapidly to customer problems with product or plan