In the contemporary business world, companies and businesses are under constant competition, something that has left other businesses unable to operate eventually resulting in closure. Due to the competitive nature of the business world, it becomes imperative to "think big" and come up with a viable business idea that can maneuver up well when implemented into the market. For an entrepreneur to come up with a good business idea, they have to consider some vital factors such as the entrepreneurial gap that ought to be filled in the marketing. After that, one has to consider the commodity to be supplied to the market, the customer segment to target, the existing market trade policies and legal requirements of the business. It is also crucial to discern the market and know what benefits will accrue to the business founder and the general public as well as the critical success of the business idea during execution. Having considered all these vital factors, the business that was arrived at was coming up with Android software that will be able to test a vehicle before driving. A driver will be required to run a few seconds troubleshooting before driving. The software will also enable the user track the vehicle and get alerted when something happens to the vehicle in their absence.
The market gap
Research has proven that most of the people owning vehicles in the world are living in phobia that something uncertain may happen to their vehicles while they are away, say, being stolen, broken into or anything else (Bartkowski, 2015). Another research on the same shows that most of the accidents occurring in the roads are as a result of flaws in the vehicle, which could otherwise have been solved before the vehicle is driven (Cooper, 2016). As a result, therefore, there is an evident need to come up with a business idea to curb these problems. As mentioned earlier in this report, the business idea chosen is designing Android software that will be connected to one’s vehicle to be able to crosscheck it of any flaws before any journey starts. Now, this product will be a necessity and a must-get for all drivers whether public or private. The business, in conjunction with the government, will make sure that all the drivers adopt the software so that what is evitable is avoided. The reason for choosing this business idea is that it is filling a severe gap in the market that no e of the world's innovators has ever realized. Secondly, it will bring driving under control, and it’s an idea that has not spread anywhere in the world.
The benefits generated by the idea
Several benefits will come along as a result of the establishment of the business. Firstly, the founder of the business will be able to earn income generated by the sale of the product. The income so acquired raises the living standards of the founder. Again, the social status of the founder goes high for two reasons, being the pioneer of the technology and being one of the wealthiest people around the world. The income earned may also help the owner attain the state of self-actualization (Douglas, 2016). Now, to the general public, the business will have several effects. Firstly, it will bring driving onto control and convenience. That time that one could get into a vehicle and drive without knowing whether or not it has some troubles will be forgotten. In addition to that, the driver will not be obliged to testing everything manually to ascertain that it is working. The driver will be required to scan a gadget that is connected to the vehicle that comes with the software, and the phone will be able to detect any flaws and advise the possible solutions. For instance, if the problem is low fuel, the software will prompt the driver to refuel the vehicle.
The idea will also reduce the fear of vehicle owners. After packing a vehicle, it will not be funny to see a person going back to the vehicle time after the other to ascertain that it is safe. All these problems will be solved. The owner of the vehicle will be in a position to know where the vehicle is and get an alert when something abnormal happens to the vehicle. The idea will also help save lives by reducing of not eradicating road accidents. Many vehicles are causing road accident because drivers are driving them blindly without taking time to countercheck whether the vehicle is okay or not before the intended journey (Hong, 2016). Sometimes failing to check is not out of ignorance but that people are bored by the old-fashioned style of testing everything, one after the other. By introducing the technology, people will find it easy and interesting to use hence help prevent evitable accidents.
Evaluation of feasibility
The market feasibility
The product has a certain market because it is a necessity for every vehicle that operates on earth. The business will anticipate for working in conjunction with vehicle manufacturers to make the vehicles with an already fitted sensor that will be scanned to troubleshoot the vehicle (Yew Wong, 2015). Business will also focus on working together with the vehicle manufacturers to sell the software jointly with the vehicle, i.e., the price of the vehicle to be inclusive of that of the software. The founder of the technology will patent it as the copyright owner of the technology so that no other person can claim that it is theirs or venture into the same business (Wyckham, 2015). By so doing, the founder will enjoy the benefits of monopoly and be the sole provider of the technology globally. The business targets the entire world’s population because the products are a must-have item. However, the high-income earners will be mostly targeted due to the provision of value propositions.
The business will create a close customer relationship through social media platforms and carry out mass mainstream media advertising to ensure that the customers are made aware of the technology. Wise enough, the will make the idea known to customers by having all. Newly bought vehicles fitted with the gadget. There will be no competitors because it is an original idea am nine other has embraced it yet. There are also no barriers regarding entry into the business (Umble, 2014). Therefore, it is anticipated that the business will thrive well after implementation.
The business is not capital intensive. Less than half a million US dollars will be required to start the business. The funds will be gotten from personal savings and the sale of shares. The business will use the acquired profits to grow and diversify its market (Somers, 2016). The business will be required to start making the first sakes immediately after it is opened and operate for less than a month to reach the breakeven point.
The proposed business model
For this business, the proposed business model is the long tail model that targets the most profitable customer segments. As it has been mentioned earlier in the paper, customer segmentation will be done according to their income level. That implies that the ones with high income have the capability of providing more income for the business (Hong, 2016). The value propositions will be system upgrade, troubleshooting, replacement and upgrading to more sophisticated technology. Therefore, it will be cost effective to provide value propositions to the high-income earners because they will be profitable to the business (Jia, 2016). The resources that will be required are mostly financial and human resources. The key activities are marketing since production is one time except for the sensory gadgets. The other business model building blocks are summarized in the appendix using a business model canvas.
The critical success factors
Several critical success factors will make the business feasible during implementation. Firstly, the business will work in conjunction with the government and vehicle manufacturers. The government will ensure that all the existing vehicles acquire the technology and have the sensory gadget fitted. Working in conjunction with vehicle manufacturers will ensure that there is a ready market for the product since the cost of the product will already be included in the final price of the vehicle (Lin, 2017). The business will also patent the idea and be the sole supplier of the technology worldwide thereby making it difficult for other parties to enter the market. The founder will be the only legally authorized dealer if the technology and thus there will be no threat of being outcompeted (Nelson, 2014). Again, the business will hire a skilled workforce to ensure that the produced gadgets and software are of the best quality and are long-lived and that they do not fail or malfunction. It will also create a good relationship with its customers to ensure that they enjoy the service they get from the business.
Launching a new product in the global market is not easy. It needs one to come up with a business idea that fills an evident entrepreneurial market gap. In coming up with a feasible idea, it is necessary to analyze the market and know what is lacking in the market or what is offered as it should not be. That will give you an insight of what to sell or introduce into the market. It is also important to consider the market and what segment to target, the ease of other entrepreneurs entering the market and also the available legal requirements regarding the business. The paper has found that one should try as much as possible to make it hard for other people to get into the business to avoid unhealthy competition, something that can be achieved by creating an original idea to fill a market gap. Conclusively, it is anticipated that the business idea for coming up with a technology for troubleshooting, tracking and maintaining control of vehicles will do well because all the necessary considerations have been made.
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