05 Mar Cell Phones Retailer Business Plan
Opportunity
Important advice
This sample business plan was based upon a plan from many years ago. It is still valid today and serves as an example of what a business planning should include and how it addresses issues. It is not intended for information purposes. ]
Problem
In the world today everyone has a cell phone. Mobile phones are becoming a norm. They are used for work and socializing. People assume that they are untrustworthy if someone does not have one. In reality, people without one cannot afford it.
Solution
Garbles Cellular’s mission it to offer customers the highest quality mobile phone products and service is to serve them. The owner of Garbles Cellular focuses on providing personalized service to customers, ensuring convenience and quick service. Additionally, Garbles Cellular has the technological expertise to assist customers in picking the product and service that best meets their needs. Finally, our staff will have strong vendor relationships with the product suppliers and will be able to meet customers’ demand for the newest innovation in cellular phone technology.
Market
Our products are able to reach huge markets, as shown by the rapid growth of the telecom industry. The telecom industry is currently among the fastest-growing industries and is responsible in large part for the capital markets’ huge gains. The number of cellular phones growing rapidly is a phenomenon that was previously unimaginable. One example is the prediction that by 2020, more than 65% will have cell phones.
The following areas are projected to see future market/product growth:
Text messages between friends are a great way to communicate (in Japan, this is very common). Users can send SMS (short-message service) and email to their friends via their phones. While email can only be used for small file sizes, many phones support English characters. You can also send specific characters to each provider, such as happy or sad faces, small animated pictures, animals, people and hearts. People often use a special set of faces to express emotion when they aren’t able to send the special characters. You can also send email between different provider phone numbers, but some of the special characters will be lost. Therefore, users might want to keep a small group of friends with the same provider in order to receive these special characters. Email, of course, may be sent from computers as well, but files are often stripped of headers and attachments when received on cell phones.
Many North American smartphones come with a handful of games to keep people entertained, but only for a short period. There are two types of games available for Japanese phones: Java applications and built-in. The built-in games are quite simple, but the graphics play a major role in the game’s enjoyment. Java application game are delivered via the network and charged for. These games can be more complex and require streaming. Each month new games are added. You can even buy joysticks and navigation consoles that plug into your phone.
CCD Cameras have become a very popular feature on many Korean and Japanese phones. These cameras can be mounted on the clamshell hinge or on the outside of clamshells. The camera lens is slightly smaller that a dime. It can display 4×’ mm pictures on the phone’s screen, or send them to others. The phone can not only capture pictures but can also capture video clips. Because of their memory limitations, most phones are able to record between 5 and 15 seconds. But they can also send streaming videos. Camera phones are often advertised with people looking at each others on the screen. Both the camera and the person holding it are shown standing arm in arm and using an earpiece and mic. You can also get a small printer to print photos and an external flash.
Our company will try to take advantage of these developments and serve its customers in all these new trends and developments.
Competition
[Note: This information is provided for illustration purposes only. This information has been seriously outdated. Not reusable. ]
Today, the U.S. Market is dominated by three large companies
TMobile Wireless has been owned by a subsidiary Deutsche Telekom since May 31,2001.
- Revenues exceeded $13.6 billion for 2001
Cingular Wireless has the second largest U.S. wireless company. It is a leader in mobile voice communications and data communications and is determined to bring the individual to a higher level.
- Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Atlanta, Georgia. Based on the contribution of both assets to the venture, SBC holds 60% of the company while BellSouth has 40%.
- Revenue from the cellular service in 2002 was greater than $14.7 Billion
- Cellular Phone Service Subscribers: More than 22 Million Voice and Data Customers in the U.S.A.
- Cellular Phone Service and Technology – Cingular is the US’s only wireless carrier that offers Rollover, which allows customers to keep their unused minutes. Cingular offers cellular/PCS services in 43 of 50 top markets. Cingular also provides advanced data services for corporate e-mail through its GPRS network and Mobitex packet networks.
Nextel Communications is a leader in fully integrated wireless communications services. It is located in Reston, VA.
- Ownership: Nextel Wireless’ symbol NXTL is traded on NASDAQ National Market. Nextel Partners (a separate company) is traded on NASDAQ National Market.
- Revenues on the cellular network $8.7B (2002)
- Cellular Phone Service Subscribers 10.61 MILLION (Q4 2002).
- Nextel uses a technology-based packet platform, the integrated Digital Enhanced Network (“iDEN(tm),), which Motorola developed. Nextel Online(r), Nextel Digital Cellular, Nextel Mobile Messaging, Nextel Direct ConnectSM, Nextel Digital Cellular – covers thousands of communities throughout the United States. Nextel and Nextel Partners, Inc. serve 197 of America’s top 200 markets.
Garbles Cellular Phones wants to take a part of this market.
Why Us
With our vast experience in EAIA, the store will be in a perfect spot to start operations in the U.S.A. and will begin operating shortly. Garbles Cellular Phones provides its customers the best in customer service and convenience.
Expectations
Forecast
We intend to iron out kinks in our start-up and get things off the ground in year 1. We will make a modest profit in year 2. We will be able hire more store attendants, and administrative assistants by the third year.
Financial Highlights per Year
You will need financing
We will get $96,000 to begin our business. To cover the start-up costs, Mr. Seramed Garbles is investing $43,000 in Garbles Cellular Phones, Inc. He will also invest an additional $53,000 when operation takes off
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