Marble Cellular Service offers mobile phone repair essay.

Answers:

Business Description

Company overview:

Considering the growth of the wireless communication industry and based on the success the owners have come up with the idea of launching the business of mobile repair service in order to expand the business operations and establish a niche market for the mobile repair service.

Product and Service:

Cell phone is considered to be ubiquitous however, they are not resistant to damage. Since the cell phone breaks, there is a need for cellular phone repair service (McKeever 2016). Marble Cellular Service is to provide its customers with the cell phone repair service of highest quality. The owners of the business places emphasis on the personalized service by rendering door-to-door service for repairs of the mobile phone. Marble Cellular Service will be offering convenience and rapid service to its customers since the business will employing technological expertise in helping its customers in sorting out the defects contained in the device. The range of mobile phone repair service that will be offered by the Marble Cellular Phones includes the following;

a) GSM Cellular Phones: Alcatel, Ericsson, Motorola, Samsung, Siemens, LG Electronics and other smart phone devices.
b) Fixed Wireless Phones
c) Cellular Phone Accessories: Antennas, batteries, Belt Clips, Cables, faceplates and modems.

Value Proposition:

The staff of the business will be emplacing on strong vendor relationships with the customers and will be able to meet the demand of the customers for fixing the device in cellular phone technology (Schaper et al. 2014). The staff believe that is it important to remain an energetic member of the community and to impact on the lives of the customers in more ways instead of deriving profit from them. Marble Cellular Service repair centres will rise to the occasion to meet the growing demand of the customers for cell phone repairs.

Location:

The business will be located in the urban streets of Melbourne which will be having greater access to the residential populations. The location of the business will be serving as the competitive environment since the business will be exposed to the large number populations and this will enable the staff of the business to provide timely service of mobile repairs with higher customer satisfactions.

Industry and Competitor Analysis:

The mobile phone repair industry has been steadily increasing over the period of last five years. An increase of 3 percent yearly growth ranging from the period of 2011 to 2016 has bought forward a total revenue of around $4 billion (Thomas et al. 2014). As long as the smart phones continues to play an important role in the lives of the consumers resulting in a promising outlook for the immediate future there shall also be the market for the reliable cell phone repair services. The mobile repair industry has been exploding at a faster rate over the period of last six years because of the several factors. There is also a growing popularity of smartphones that are more exposed to breakage and will more likely needing repairs that has ultimately contributed to the advancement of the cell phone repair industry (Ward 2016). Additionally, the smart phone are generally expensive in comparison to the earlier mobile phone models that have driven consumers to repair shops instead of replacing them; however as the industry reaches the market saturations and the expenditure of replacement has turned out to be more feasible.

Competitor Analysis:

The key to the consumer decision is based on the service of the repairer and the satisfaction derived from the cell phone after the repair. Considering the competitive business environment there are other smart phone repairers that provide similar service however Marble Cellular Phone Service partnership with numerous suppliers of the accessories that are engaged in the mobile phone repair business is less expensive (Baker 2014). It is yet essential for the service staff to state the salient feature and selling points favouring the business.

Customers, particularly located in the Western business culture takes in the account the speed of service being the key reason of taking the service of the technological expert. Customers generally resent the delays and does not prefer waiting for service (Solomon 2014). In Australia speed of service does not anymore distinguishes an enterprise that provide superior value. Customers are usually not excited if they receive better mobile service however they are greatly dissatisfied if they not get the service. Henceforth, Marble Cellular Service will offer required framework to cope with such kind of demands by cutting down the waiting time for the mobile phone repair service.

Marketing:

Target market:

The market for the Marble Cellular Service and their accessories is considered to be very fragmented and competitive. Among these there are some of the large local firms that provide service to the entire city of the Melbourne and its surrounding (Perreault et al. 2013). Marble Cellular Service present niche in its location, variety of products and expertise in serving the public will assist in meeting the projected the sales. The company will be operating under the niche market locations and has the potential of serving the public that will assure the projected sales. The company anticipates to undertake complete advantage of the trends that is described in the market analysis above and would make an attempt to penetrate in the market of gadgets especially with the working people by making the use of advertisements and demonstrations (Leonidou et al. 2013). The target market strategy of the Marble Cellular Phones;

a. Each individual will be the potential customer and all the potential market of the business will gain growth
b. Marketing to one segment of the population will result in the expansion of the overall market growth.
c. Students
d. General public
e. Service organizations and firms that requires to be in regular communication with their employees.
f. Professionals

Market Size:

Cell phone repair services market makes up around $4 billion industry. They also complement a steady smartphone sales market which is encouraged by constant of the device. Additionally, a large number of consumer are integrating their cell phone device in their daily life. Such trend of dependence transforms into strong potential for phone-n-fix franchise since they provide a quick and cost effective means to keep their device intact (Armstrong et al. 2015). Reasonable rate and a quick service turnaround together with the knowledgeable team and quality parts makes a stand out repair providing in this competitive market.

Marketing Strategy:

Short term strategy of marketing will be those that will be bringing the business temporary boost in the traffic (Chatterji, Glaeser and Kerr 2014). Even though such kind of techniques is considered to be very important for the overall plan of the Marble Cellular Service, they are only regarded as the provisional source of traffic and cannot be entirely relied upon. The short term marketing strategy of Marble Cellular Service includes the following;

a. Purchasing advertisements
b. Internet search engines
c. Bulletin boards

Long term marketing strategies on the other hand for Marble Cellular Service is concerned with brining the stable stream of targeted traffic over the time. These kind of strategies will continue to generate outcomes for a longer period of time. The long term marketing strategies of Marble Cellular Service comprises of the following;

a. Opt-in list
b. Door-to-door service
c. Calling and hire service

By creating a balanced marketing strategies in terms of both short term and long term strategy would enable Marble Cellular Service to drive a steady stream of targeted customers for its business. The short term marketing strategy will emphasis on the sales promotion, niche positioning in the market and customer service with loyalty and retention in sales (Cie?lik 2017).

Pricing:

Marble Cellular Service will be implementing cost effective and fixed pricing strategy to expand their business. Marble Cellular Service will be having a range of services in the areas of mobile accessories for more than 20 brands and other unbranded mobile repair services as well. In other words, Marble Cellular Service pricing strategies will be focussing on the other products which is listed below;

High margins: High margin pricing will be set for the cases, headsets repair (margins: 60-90%)

Low Margins: Earphones, screen guard services, key pad services (margins: 30-60%)
Marble Cellular Service anticipates to charge an average price for a unit of $50 of mobile service.

Marketing Communications:

Measurement and evaluation is considered to be critical considerations for Marble Cellular Service in promoting effective personal relationships with the customers. The business will be emphasising on the implementing media monitoring that will assist the business in getting ahead of the negative messaging and would be able exert greater amount of influence over the business cycle (Colombelli, Krafft and Vivarelli 2016). All the business owners would like to generate buzz regarding their products and services. Therefore, Marble Cellular Service will be making use of the word to mouth as the best source of promotion for the cell phone repair. Additionally, for the mobile phone repair business word to mount is considered as the critical considerations in the marketing mix. The procedure of advertisement commences from the development of communications vehicles and mechanism that would invite discussion.

Management

The business is planning to employ around 5 employees together with the IT professionals. The management of the Marble Cellular Service will be having executives, suppliers, administrative personnel and financial executives to look after the affairs of the business. The IT professional teams will be responsible for significantly enhancing the Marble Cellular Service online web presence through the help of the optimisation of the search engine and paid digital marketing. Marble Cellular Service marketing and executive team will be responsible for monitoring the needs and preferences of the customers and activities of competitor. The management team will be communicating the strategies and will keep informing the owners regarding the potential competitive differentiators for Marble Cellular Service.

Legal Structure:

A business legal structure is considered to be an important component of the business. Marble Cellular Service will be a partnership form of business. The reason for choosing the business is that there are very few restrictions to the setting of the business with another person in partnerships and numerous definite advantage (Galindo and Méndez 2014). By pooling resources together, the partners of the business will be having more amount of capital. The partners will be introducing numerous skills to the business. The liability of the owners will be separate and will be distinct from each other both from its directors. The liability of the shareholders is restricted to the sum paid or unpaid on the amount of capital contributed by each of the partner.

Financial Forecast

Resources Required:

Considering the resources, the business partners will be contributing a sum of $8000 each from their respective savings account and would take a loan of $25,000 to carry out the administrative operations. The total amount of resources that is needed to commence this service is $50,000.

Set Up Cost:

Start Up Expenses

Start-up Expenses
Fixed Costs	Particulars	Amount ($)
	Administrative Expenses	$6,500
	Device Cost	$12,500
	License cost	$2,500
	Office rent	$7,500
	Communication Expenses	$1,450
	Wages and salary for three month	$3,000
	Staff training cost	$1,750
	Marketing and sales cost	$1,250
	Office equipment	$4,750
	Insurance	$2,000
	Repairs and Maintenance	$3,000
	Working capital	$25,000
	Total Fixed Costs	$71,200
Average Monthly Costs
	Rent	$542
	Interest on loan 8%	$208
	Postage & Telephone	$396
	Repairs and Maintenance	$250
	Taxes	$839
	Salaries / Wages	$1,042
	Total Average Monthly Costs	$3,276
	x Number of Months:	12
	Total Monthly Costs	$39,315
Total Startup Expenses		$1,10,515

Start-up Assets
Sources of funds
	Owners Fund	$25,000
	Total Owner Funding	$25,000
Loans
	Bank Loan	$25,000
	Other
	Total Loans	$25,000
	Total Start up Funds	$50,000
Assets
	Computers	5000
	Furniture	$12,000
	Vehicles	$15,000
	Equipments	$7,500
	Total Fixed Assets	$39,500
Total Start-up Assets		$89,500

Income Statement:

(4) Profit And Loss Forecast
	Preop
Year	0	1	2	3

Revenue	0	75,000	93,750	1,21,875

Cost of sales	0	15,000	18,750	21,563

Gross profit	0	60,000	75,000	1,00,313

Gross Margin		51,515	62,884	77,968
Expenses/overheads
Leased Premises Rent		1,500	1,500	1,500
Wages		12,000	14,400	18,000
Administrative Expenses		550	660	825
Communication Expenses		2,500	3,000	3,750
Marketing Expenses		1,450	1,740	2,175
Rates		1,750	2,100	2,625
Insurance		900	1,080	1,350
Other general expenses		1,000	1,200	1,500
Interest		875	1,050	1,313
Market survey		2,000	2,000	2,000
Prelim expenses		1,250	1,500	1,875
Lease payments		675	675	675
Total expenses/overheads		26,450	30,905	37,588
Profit before tax		33,550	44,095	62,725
Tax @ 30%		10,065	13,229	18,818
Profit after tax		23,485	30,867	43,908
Transfer to reserves		33,550	44,095	62,725

Cash Flow Statement:

(2) Cashflow Forecast
	Preop
Year	0	1	2	3

Cash Inflows
Cash from Sales		75,000	93,750	1,21,875

Directors loans	25,000	25,000	25,000	25,000
Capital Employed	1,00,000	25,000	27,500	30,250
Other cash inflows

Total Cash Inflow	1,25,000	1,25,000	1,46,250	1,77,125

Cash Outflows

Payments for Materials		15,000	18,750	21,563
Operating Expenses ( )	0
Premises (rent, rates)	0	1,500	1,500	1,500
Wages and salaries	0	12,000	14,400	18,000
General expenses	0	550	660	825
Interest and bank charges payable	0	675	675	675
Lease payments	0	675	675	675
Corporation Tax		10,065	13,229	18,818
Market survey costs	0	1,250	1,500	1,875
Other Preliminary Expenses	0	550	660	825
Capital Expenditure
Plant and other capital expenditure	0	39,500	39,500	39,500
Financing Repayments
Loan Repayments			2,000	2,000
Total Cash Outflows	0	81,765	93,549	1,06,255
Cash Flow Summary
Net Cashflow for Period	1,25,000	43,235	52,702	70,870
Opening Cash Balance	0	1,25,000	1,68,235	2,20,937
Closing Cash Balance	1,25,000	1,68,235	2,20,937	2,91,807

Break-Even Analysis:

Revenue	Contribution	Fixed Cost	Profit
18988.5	9494.25	18988.5	-9494.25
37977	18988.5	18988.5	0
47471.25	23735.625	18988.5	4747.125
56965.5	28482.75	18988.5	9494.25

Balance Sheet:

Balance Sheet

Assets	FY-1	FY-2	FY-3
Current Assets
Cash	$49,025	$58,475	$69,405
Accounts receivable	$75,000	$93,750	$1,21,875
Total current assets	$1,24,025	$1,52,225	$1,91,280
Fixed (Long-Term) Assets
Computers	5,000	5,000	5,000
Vehicles	$15,000	$15,000	$15,000
Furniture	$12,000	$12,000	$12,000
Equipment	$7,500	$7,500	$7,500
(Less accumulated depreciation)	$6,700	$5,800	$5,080
Total fixed assets	$32,800	$28,700	$29,420
Total Assets	$1,56,825	$1,80,925	$2,20,700

Liabilities and Owner's Equity
Current Liabilities
Accrued Rent	$1,500	$1,500	$1,500
Bank Charges Payable	$675	$675	$675
Income taxes payable	$10,065	$13,229	$18,818
Accrued salaries and wages	$12,000	$14,400	$18,000
General Expenses	$550	$660	$825
Current portion of long-term debt	$25,000	$23,000	$21,000
Total current liabilities	$49,790	$53,464	$60,818
Long-Term Liabilities
Long-term debt	$25,000	$23,000	$21,000
Less: Loan Repayment		$2,000	$2,000
Total long-term liabilities	$25,000	$25,000	$23,000
Owner's Equity
Owner's investment	$25,000	$27,500	$30,250
Net Profits	$23,485	$30,867	$43,908
Reserve and Surplus	$33,550	$44,095	$62,725
Total owner's equity	$82,035	$1,02,462	$1,36,883
Total Liabilities and Owner's Equity	$1,56,825	$1,80,925	$2,20,700

Risks:

Risk Identified

Market fluctuations:

Mobile phone repair market fluctuations might result in shift in demand of the end customers that might pose the risk for the business. In spite of the fact that the company monitors the changes in the market conditions it becomes difficult to entirely avoid the impact of the market fluctuations because of the changes in the demand for the end products.

Competitions:

The industry of the mobile phone service is considered to be extremely competitive and the company is exposed to the fierce competition from the rival companies that are around the areas such as product performance, pricing and quality (Drucker 2014). As a result of this, the competitive environment surrounding the group might additionally intensify the competition. In addition to this, fierce market competition is subjected to sharp downturn pressure on the prices that might ultimately result in declining profitability.

Risk management methods:

To combat the risk Marble Cellular Service will be implementing business continuity plan. The plan will provide the business step by step long term situations. The business will be creating standard operating procedures for completing the services (Galindo and Méndez 2014). By implementing the continuity will help Marble Cellular Service in continuity of operations. Mitigated risk would result in better cash flow and greater stability. Therefore, greater amount of stability will represent the company to last in future with better cash flow leading to a longevity of the business.

Milestones:

The milestone table that is stated below will be reflecting the working plan for the formation of the new organization along with the legal negotiations, hiring of the personnel, rental of the facility, creation of inventory, commencement of the marketing and beginning of the physical operations. To execute the chores, the owners of the business will make sure everything is in place to make sure smooth start of sales and success of the organization.

Milestones
Commencement of Operations	September	October	November	December
Start of Marketing
Preparation of Website
Conclusion of Rentals
Hiring of Staff
Structuring Legal Matters
Preview of Business Plan by Investors

Reference List:

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Chatterji, A., Glaeser, E. and Kerr, W., 2014. Clusters of entrepreneurship and innovation. Innovation Policy and the Economy, 14(1), pp.129-166.
Cie?lik, J., 2017. Entrepreneurship and Innovation. In Entrepreneurship in Emerging Economies (pp. 157-193). Springer International Publishing.
Colombelli, A., Krafft, J. and Vivarelli, M., 2016. Entrepreneurship and Innovation: New Entries, Survival, Growth (No. 2016-04). Groupe de REc

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