Business Plan

So, it can be said that the business related with selling of transportation is really very attractive one for the new business man and for this rationale; this report is about an idea of an online car selling business. 2. Developing the idea: From the above discussion, it is very much clear about the importance of transportation for people. So, this report mainly focuses on developing an idea about an online car selling business. This is really a new concept which will facilitate the customers with online buying of new as well as reconditioned car. Now days, people re so busy.

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So, they are not interested to take any sort of trouble and for this reason, this concept of online car selling will be most attractive to the people because there will remain facilities to buy car without facing any sort of nuisances. 2. 1 Innovation techniques: Various researchers and writers described their opinions regarding numerous innovation techniques and models. Deschamps (2012) pointed to 9 different models regarding innovation based on different managerial levels in the organizations. On the other hand, Kaplan (2012) pointed to four different strategies to innovation.

On the contrary, Jois (2011) pointed to various innovation techniques from which Evolutionary innovation and Revolutionary innovation are noticeable. 2. 1. 1 Evolutionary Innovation: Evolutionary innovation basically indicates to developing a product in an existing market which is expected by the customers. In this innovation technique, the innovators mainly focus on todays customers. It is a process where new product is passed to the existing market. Ohr (2012) pointed that, evolutionary innovation process only optimizes and exploits its current business. 2. 1. 2 Revolutionary Innovation: o solve a problem in a new way.

Ohr (2012) pointed that, revolutionary innovation technique exploits the new opportunities of the world. Basically, it focuses on the new customers. In this plan, the revolutionary innovation technique can be used because this concept of selling car will concentrate to create a new market by allowing the customers to solve their problem in a new way like buying car from online. 2. 2 Name of the Business The name of the firm will aqua car. 2. 3 Objectives The objective of the Aqua car will be to provide car in a cheap price to the middle class people by maintaining the standard quality.

Hence, it can be said that the main objective of the Aqua car will be to provide car to the middle class and upper middle class people with a satisfied quality but at a reasonable price. However another objective is to lessen the trouble related with buying car. In order to achieve its objectives, Aqua car will plan for its operational performance in a way that it will be able to make a combination of efficiency and responsiveness in its operational performance. Besides these, the total selling procedure will be formed in a way that mostly lessen the trouble of customers of buying cars and give them satisfaction. 4 Operational Planning The operational plan of Aqua car will include the following things 2. 4. 1 Business procedure This company will conduct its business activities through online. So, the operation of the company will be dependent on the internet totally. A rich and resource full website will be developed and the company will perform its business activities through it. Customers will easily be able to see the displayed item through different categories and features on the web. After that they will make an order as per their choice.

Within couple of days the item will reach to the targeted customers. The customers can pay for the order through a banking channel. There will remain a call center for customer services and for meeting the queries of the customers. That will be the basic business procedure of the firm. 2. 4. 2 Web page As all the total business procedure of Aqua car is dependent on internet, there is a need for a web page of the Aqua car where people will visit at the time of buying car. The web page of the Aqua car will be developed in a way that it can meet all the necessities of the customers.

The webpage will be developed by a professional web page developer. Some information must be included in the webpage. Such as- 0 About the company 0 Operational procedure 0 Contact info 0 Display of photos of cars through different categories In the display menu, different categories will remain according to the choices of the customers. Pictures of the car and full description will remain within those categories. There will also remain an option of sending mails to the firm for any claims or queries of the customers. 2. 4. Transaction procedure Customers of the Aqua car will be able to make the payment for the order through their credit or debit card. The charged amount will be deposited in the bank account Suppliers Aqua car will buy the cars from the suppliers in a cost effective way so that it can provide the car to the customers in a relatively low price. 2. 5 Financial planning: The capital of the Aqua car will about 5 million pound. Among them about 1. 5 million pound will be spent for the operational settings and marketing campaign. The rest of the amount will be spent for the purchasing of cars.

The company will able to make a gross profit of about 25 to 30 percent on buying cost which will ultimately lead to net rofit of 17 to 18 percent on buying cost after deducting all sorts of expenses. 2. 5 Marketing planning: As the business activities of Aqua car are totally dependent on the online, the marketing plan of the Aqua car seems to be different. Levinson and Lautenslager pointed that there is a necessity of spending lots of money for the marketing of new business in the first couple of years (2009). So, Aqua car will spend lots of money for the first couple of years.

For the first one year, the objective of the marketing plan of Aqua car will be to inform the peoples about the company. When most of the people ill be aware about the name and function of the Aqua car, then the objective of the marketing plan will be shifted to capture the market. In order to make the people aware of the name of the Aqua car, the following steps should be taken 0 To create pages in the social network sites like facebook or twitter because now days most of the people are connected with those social networking sites. Advertising should be given in mass media with the URL of the web page of the aqua car. Different social event should be promoted with the latent tendency to promote the Aqua car. 0 More informative ads will be used. After performing those activities for a continuous basis, people will ultimately know the name of the Aqua car. Then the second phase of the marketing planning of the Aqua car will be started with an objective to capture the market share. Lim et al. uggested that in this stage some different marketing techniques should be adopted such as personal selling, sales promotion and few more (2006). However, the mass advertising will be stopped rather selected advertising will be given and the type of the advertising will be reminder ad rather than informative ad. Those marketing plans will make a success for the Aqua car. . Analyzing the environmental factors: At the time of performing its business activities, Aqua car will have to consider some environmental factors which will affect its activities sometimes directly or sometimes indirectly.

Cherunilam pointed that there remain some important factors that may affect the business and those are political, environmental, socio cultural, technological, economical and legal (2010). However, before analyzing them at first an environmental analysis should be conducted. 3. 1 Environmental analysis: The environmental analysis of Aqua car will be helpful to understand its nvironmental factors, its influences and strategic position of the Aqua car. This is mainly done by following some distinctive stages.

Assessing the nature of the environment Identify the key competitive forces Identify the competitive position Identify the opportunities and threats Strategic position Figure 1: Steps of environmental analysis Source: Cherunilam (2010) The environmental analysis of Aqua car is done according to those steps which have been shown in the above fgure. Those are discussed in below. 3. 1. 1 Assessing the nature of the environment: Before starting the business operations, Aqua car will have to assess the nature of he environment.

Lancaster and Massingham asserted that there are mainly two environmental factors to be considered and those are micro environmental factors and macro environmental factors (2010). Those two factors should be analyzed thoroughly in order to assess the nature of the environment. However, it seems favorable of the nature of the environment for the starting of business of Aqua car. 3. 1. 2 Audit environmental influence: After assessing the nature of the environment, the environmental influences should be audited.

Qu and yang supported this issue (2012). This includes the influence of he environmental factors that may make an influence on the operations of the Aqua car. This will determine the strategic planning of the Aqua car. The all environmental factors have a great influence on the performance of the Aqua car. 3. 1. 3 Identify the key competitive forces: After auditing the influence of the environmental factors, there is a necessity to identify the key competitive forces. Those forces will help Aqua car to determine the operational performance.

There remain some different competitive forces which will be discussed broadly in another section. 3. 1. 4 Identify the competitive position: If the competitive position of the Aqua car can be identified, this will surely help to perform its business activities smoothly. However, it seems that Aqua car will hold a better position in its competitive world. 3. 1. 5 Identify the opportunities and threats: Rayner pointed this step as an important thing (2003). There remain lots of opportunities for the Aqua car in the market because the new concept of selling the car will be provided only by the firm.

On the other hand, Aqua car will face some threats such as some barriers by government like rules and regulations; tax etc. here remains also a threat of new entrance in the market that will also hamper its business activities. 3. 1. 6 Strategic position: After performing the all steps, it will be easier for the Aqua car to determine the strategic position. Here, it is seen that there remains a lots of opportunities for the Aqua car to capture the market share if the plan can be executed smoothly. 3. PESTEL analysts After determining the strategic position, it is time to conduct a PESTEL analysis for the performance of the Aqua car such as- political factors, environmental factors, Socio ultural factors, technological factors, economical factors and legal factors. Those are discussed in below and the figure indicates the factors. 3. 2. 1 Political factors This factor includes the political circumstances of the business area. For Aqua car, it seems that it will be very much favorable. However, things can be changed with the change of time.

So, it can be said that though the political factors are found in favor for the Aqua car, it may take an adverse dimension in any time and the necessary steps will be taken after assessing that situations. Figure: PESTEL analysts 3. 2. Environmental factors As Aqua car will perform its business activities through online, there will not any direct affect from the environment for Aqua car. 3. 2. 3 Socio cultural factors This factor has a direct impact on the performance of the Aqua car because the taste and buying pattern of customers largely depend on this factor.

So, Aqua car will have to perform its business activities by keeping pace with this factor. 3. 2. 4 Technological factors Technological factor has also an impact on the business performance of Aqua car. The management of the aqua car will make the product and performance updated ith the new technology and the product categories will be modified so in order to advent the customers. 3. 2. 5 Economical factors Rate of inflation, purchasing power of people, economic condition of the state are the elements of the economical factors. As this is a recession period, Aqua car will bring its products keeping this in the mind. . 2. 6 Legal Factors Different types of laws are the element of the legal factors. Aqua car will have to abide by those laws. If the government will change the existing laws or introduce a new law then Aqua car will have to maintain those laws also. However, the existing laws are seemed to be favorable for the Aqua car. 4. Analyzing the competitive forces: Before introducing any business, it is the duty of the business to analyze the competitive forces that may make any effect to the operational performance. This is very important for the business to check out the different competitive forces.

The competitive forces of Aqua car can be analyzed through porter’s five forces model. Michael E. Porter of Harvard Business School invented this model in 1979. Porter pointed that, this model can be used in order to explain the competitive phase of a firm. In this model porter has identified five factors which can affect the attractiveness of the firm and determine its competitiveness. Pecotich (1999) et al. also asserted that, those factors are threat of new entrants, threat of substitute product, bargaining power of suppliers, bargaining power of customers and rivalry among competitors.

Arons and WaalewiJn (1999) also asserted that, these five forces affect the operation of the firm extremely. The function of those factors can be realized with the figure. 4. 1 Threat of new entrants As an attractive sector in terms of profitability and industry attractiveness, there ave to adopt some different techniques to attract the customers and to make and hold the large percentage of the total market share. If aqua care will be able to present itself to the customers as the most attractive one then it is very much possible for the firm to combat this threat. . 2 Threat of new substitute Aqua car will hardly face this threat. So, no extra measures will be adopted to combat the problem. However, if it is possible to perform the regular activities in an efficient and responsive way, this threat will ultimately not hamper the activities of Aqua car. 4. 3 Bargaining power of suppliers Bargaining power of suppliers is a drawback on the way to be an efficient one. In that case, Aqua car will have to provide some extra facilities which will work as motivational activities towards the suppliers.

Figure2: Porter’s Five Forces Model source: porter (2008) 4. 4 Bargaining power of customers Bargaining power of suppliers is also an important force which can make a huge impact on the performance of the Aqua car. In order to combat the problem, the firm has to decide whether it will focus on efficiency or responsiveness. After that, the firm will take its measures. 4. 5 Rivalry among competitors This problem hampers the business activities of the firm dangerously. In order to combat this threat, the Aqua car will have to take some measures.

More focuses should be given on the advertising and innovative ideas should be introduce to go ahead from the competitors. 5. Conclusion: With a new concept of business, it is very much easy to attract the attention of the people and go to the center of their mind. As Aqua car will open a new window in the concept of traditional shop based car selling, it can be said that Aqua car will be able to make a better performance. This business plan has suggested aqua car some trategies and planning to execute. Those strategies and planning will help Aqua car to perform its business activities properly.