Power Tool Corporation Business Plan

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Executive Summary

The current situation is that our current products are enjoying only 3% in any of its product lines. This can be contrasted with power saws which tend to enjoy a better response from consumers hence more profitable for the manufacturer. Another issue is the quality of tools being assembled. The ranges of power tools in the market are of low quality and only circular saws seem to be of better quality. This has really affected our business as we currently do not deal with circular saws despite its dominance in the market.

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The firm has ventured into cordless technology which has essentially assisted the company brand and has placed it at the forefront of cordless brands. The only issue is that competitors have simply duplicated our company’s products and sold them as their own. This has severely affected the e product brand and or customers

A feasibility analysis was conducted which exposed the marketplace needs, placing the practicability and need for the company to introduce an innovative product into the market. The presence of partly underexploited and partly unexploited opportunities presents a potentiality for profitable cordless and other products. Nevertheless, there are a number of obstacles that might hinder the development of this business (Rorbit, 2008).

These hindrances have been analyzed comprehensively and achievable solutions identified. The growth opportunities have also been identified plus the corresponding way of maximally utilizing them. The business targets stable growth whilst implementing diverse growth strategies and efforts aimed at countering the problem of competition.

The mission statement for the business is unambiguous and the goals have been set to achieve the objective of establishing cost-effective and efficient power tools. The target population for the business has been identified and thus the strategies for marketing can be developed in a manner that will suit the consumers. The potential weaknesses and strengths for the business have been analyzed and this will assist in coming up with diverse ways to minimize weaknesses and capitalize on strengths. Pricing mechanism has already been identified, where prices will be set at a 45% mark-up, this is healthy for the business when introducing these new products into the market as it will draw in new consumers while retaining the old ones (Slocum and Foster, 2008). This mark-up will later be increased to 65% after a lapse of one year so as to maximize gains.

A capital budget was developed which revealed that the largest percentage of the expenditure budget will go into the acquisition of patents and contracting of specialized teams of Power tool researchers and marketers. This will also include market strategists who will propose the best ways to push the power tools to the consumer in the best and fastest way that will keep them satisfied. This will also include the salary payment for the workers. The entire capital budget will be financed from the contribution by the proprietor.

Mitigation of risk analysis was made by the adoption of ‘what if’ analysis and through the application of the spreadsheet model (a computer software) to conduct probability and simulation assessments (Pulque, 2009). This business plan is being utilized to explore the cost of expanding the business by exploring new markets for our products while still innovating new power tools. This would make the power tools more accessible to our low to moderate end-users.

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Mission

Our mission is run a business which is profitable through provision of quality power tools that will match the expectations of our consumers both in price and professional requirements. Our goal is to adapt the experience of the customer, based on first interview information and the feedback, in order to ensure the comfort of the customer as they work with our tools. This will ensure that the company increases the repeat of the business.

Vision

To be the leading Power Tools provider both locally and internationally.

Company Objectives

  • To offer tailor-made experience to our clients on the grounds of the original interview information, in addition to the timely feedback.
  • To ensure client’s satisfaction and comfort, and to enhance customer loyalty.
  • To generate revenues to the proprietor

Business Philosophy

“Be the best Power tool Provider to better the lives and work of others and never end improving”

Keys to Success

  • Enhancing customer loyalty: offering quality and Innovative tools that bring clients back for more habitual treatments and encouraging them to give referrals ranging from their friends to other professionals who can recommend their clients to us.
  • Personalized attention: doing everything possible to ensure customization of experience for each and every client as per his/her preference.
  • Professionalism: this involves upholding confidentiality including keeping our staff members updated in terms of training.

Services

Our team will be composed of a dynamic management team which draws from earlier experience in Engineering, Information Technology and marketing. The services we will be offering will be unique and distinct from those of our competitors e.g. we will be the only company offering unpaid seminars to the public, where people will be taught on the importance of choosing the correct power tools plus a lesson on how to use them. Our principle is viewed as more of a philosophy—we are committed to brilliance in all our undertakings, to innovate whenever a chance crops up and to offer expertise exercises in a supportive and caring manner.

Market analysis

Market segment

There has been a continued increase in the number of persons and companies seeking power tools that are reliable and easy to use. Companies have been specifically requesting for quality machines that are able to withstand the long hours that they are needed to perform the task. This has placed a great demand on our research and development team as they have had to experiment with many materials and under different environments in order to come up with better tools. Tools such as power saws which are continually enjoying great demand is one of the power tools that our team has been conducting feasibility studies, in order to know how to address the needs of the customer.

Having no prior experience in the sale of circular saws, our company has had to spend big on market research for the saws. Currently the saws are popular with the population. It is the work of this plan to also emphasize on the need to diversify into this product line.

Barriers to entry

The foremost impediment to potential investors wishing to establish a niche in the power tool industry especially circular saws has been the cost of production plus the technical expertise and purchase of relevant patents that come with the new technology.

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SWOT Analysis

A SWOT analysis was conducted and it revealed that the company set would have a number of strengths alongside some challenges. The main strengths identified included the authentic demand for quality services and new products such as circular saws, that the corporation is prepared to render; the company has the necessary capital outlay, the strong marketing strategy/plan, plus the supplementary services that it will be offering to its clients that were not being offered by the other firms in the market, for instance nationwide seminars and lessons to the public. This will also include product advertising using both print and electronic media.

The challenges identified entailed the huge opening capital outlay plus the ordinary uncertainties associated with the products being relatively fresh in the market and the high operating costs.

The weaknesses and strengths of company’s competitor’s were analyzed so as to find out what the firm was up against in addition to identifying potential weaknesses and how to optimally exploit them. The main weaknesses that were identified included low quality of some of the existent products, thus reducing brand value in our clients, slow response to market needs and competition. Uncertainties within the corporation regarding the impending take over by the new company. Possibility of human capital flight after the takeover and old technology,

Some of the activities that can contribute to firm’s success include identification of emergent trends and integrating them into the current operations to ensure quick embracement of technology dynamics/be there early, provide superior management services, persisting in investing money and time in advertising and marketing, and continued expansion into specialty markets.

Annual Growth Strategy

We anticipate the company’s growth to increase by 70% per year on the ground that the business will be stepping up its sales and marketing efforts, over and above initiating new alliances and partnerships with construction and allied sector accompanies that will foster extensions and growth of our contemporary markets. These strategies are designed to build impetus within the business and its general sales results.

Strategic Objectives

The strategic objectives of the company are divided into timelines by which they should be met. The company has been in business before and hence controls a considerable market share. The company’s short-term objective is to strengthen the brand name of the products offered to its clients. This is will entail vigorous marketing and innovative ways of marketing to both old and new, prospective clients. This will also entail our research and development team to implement solutions to problems raised by clients.

5 Year Strategic Objective

The company aims to have established recognizable presence on the power tools market in Northern America and Europe with innovative products for all our clients. With the help of franchise marketing, the company’s brand can be transmitted to major cities and towns. Franchising will assist the company by ensuring that company expansion while keeping operating and capital expenditures in check.

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10 Year Strategic Objective

The company aims to have gone global in ten years time as a result of innovative and strategic decisions implemented both by the board and staff in the company. Although ten years might seem like a short time of achieving this goal, with hard work, this can be done.

References

Pulque, M (2009). In Encyclopedia Britannica. Web.

Rorbit, J. (2008). The 2008 China physical therapy Market Report Announces That Large-Sized Enterprises Accomplished. Web.

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BusinessEssay. (2022, November 26). Power Tool Corporation Business Plan. Retrieved from https://business-essay.com/power-tool-corporation-business-plan/

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BusinessEssay. (2022) 'Power Tool Corporation Business Plan'. 26 November.

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BusinessEssay. 2022. "Power Tool Corporation Business Plan." November 26, 2022. https://business-essay.com/power-tool-corporation-business-plan/.

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BusinessEssay. "Power Tool Corporation Business Plan." November 26, 2022. https://business-essay.com/power-tool-corporation-business-plan/.