Description of the sector
Market studies
It’s important to have a good understanding of the sector where the business will operate. At this point, it will be useful to explain if you have researched the market of your niche. For example, if we have made any poll among our potential customers, if we had access to other data sources like articles, newspaper and other statistical information, whether we have spoken to people about the activity of the sector or other reliable source.
Example
To consider the possibility of selling our services, we have resorted to the statistics available in the chamber sector as well as publications of the same niche in the country and other countries.
We have the market research made for the U.S.A where production estimations are 60,000 per annum meanwhile in the rest of the world production is three times more than U.S.A.
The actual trend of electronic manufacture defines our products as a necessity to our customers, mainly for network applications. For this reason, we expect a raise on our production due to the increase of communications data centers around.
The introduction of new technologies, like 3G mobile networks, will make communication-type electronic assemblies the trend for our future production.
Size of the sector
Describe the size of the sector in which the company will operate. There are a set of factors that determine the dimension of the sector: the total amount of sells, quantity of sold units, enterprises of the same niche and employment. It can include any other stat about the growing of the sector, and to evaluate the participation the enterprise has or will have.
Example:
There are about 100 electronic manufacture enterprises around the world, where most of them are small business. The EMF demand is highly concentrated in Japan, USA, Australia, Malaysia and China as consumers and in Mexico, Malaysia, India, and Brazil as producers.
In 2008 the production requirement for electronic assemblies was 10,500,000 units per capital annual. Referring to branding and competence, the market share goes to 75% for the major players (including GEMF) and the rest to the rest of the companies.
Describing major segments in products or services
An economic sector can be formed by a determined number of products. For example, baker industry may be defined by a set of assets, such as bread flour, bread, invoices, cookie, etc. Explain about the products that are part of your activity, highlighting size and characteristics of the segments in which your company should compete.
Example:
Products from electronic manufacture industry are classified by complexity and application-type, referred in IPC documents. According to studies made in U.S.A, our company will be oriented to produce class 2 and 3 products such as communication-type assemblies and medical-type assemblies. Each assembly type will be organized according to customer specs. Class 2 and 3 assemblies will be handled with special equipment by our personnel: Latex gloves, ionizers.
Main market segments
The business activity can be divided in market segments. Who is participating in the sector in which you sell your products or services? Divide you market in groups of customers, highlighting characteristics and size of it.For example, we may classify these groups by location, sex, age and any significant variable for the goods and services. Do you have foresight, which will be or going to be your participation in these segments?
Example:
Currently, the market consists of three segments: major suppliers (owners of technology), wholesale suppliers and retailers. Our company supplies to major suppliers (100% sales) who are the creators and owners of the technologies. Sales to wholesale suppliers and retailers are not allowed unless the customer allows it or request it.
Process and selling criteria for customers
It’s important to know how and why your costumers buy their products or competitors products. For example, pricing, quality, warranties or post-sell service offered by the company. Summarize how selling criteria may vary for each of the market or product segments.
Example:
To our products, buying criteria of each chosen segment is based in quality, integrity and price. Quality products assembled with quality components, packaged in attractive and secure containers.
Description of sector players
Describe the type of enterprises competing in your sector. For example, where they are located, what their product diversity and line of services are. Whether you know how much they are or what size their sales or productions are, and how they distribute their products.
Example:
Main companies and brands:
U.S.A: Techtronix, San EMF, Soltron, Cel Inc, SSEMF
Canada: WXY, ICS Inc
Japan:Okiaha Inc, Yumabo, Tica.
Many of these companies updated their process and technologies due to the fusion among them.
Key trends of the sector
The only constant thing in a business is the improvement. What are the trends for your business? These trends may include changes in technology, products, fashion, markets, regulations or economical conditions. Which of these trends will affect your business for the next years?
Example:
Our key trend in our activity is the difference between products of low quality and superior quality. Our company defines its strategy in production using high quality components, and well designed processes.
Technology will influence production processes by rising homogeneity of the product and taking control of the quality of it, therefore, saving capital from raw material.
Vision of the sector
Consider, what products have better opportunities for the incoming years, and why, and for whom can be expected a rejection on sales.
Posted on: Business Plan
