Company Description
The business is a partnership in which five partners will own and run the firm, with each partner’s expertise being complementary to the other. The business is headquartered in California, where a significant market for the product has been determined, and will make phone cases for popular models of smartphones. The startup aims to produce and distribute phone cases with a variety of specifications and various capacity needs online and in-store. It is expected that this startup will be fully conceptualized and implemented within four months. All units sold by the business will be developed and designed in California.
Product Description
The business will produce phone cases for a variety of phone manufacturers including Huawei, Sony, Apple, ZTE, OnePlus, LG, HTC, Google, and Samsung (Global Sources, 2016). The customer will get an array of phone cases based on their requirements including hybrid cases, TPU shells, dual-layered tough cases, and phone cases with kickstands. The cases are futuristic looking and include elements of carbon fiber to make them particularly stylish. Although the cases are form-fitting and slim, they offer almost military-grade protection for the customer’s mobile phone. The cases will also use a bumper frame and air cushion technology for additional protection (Global Sources, 2016). The startup will provide for compatibility with most popular flagship mobile phones at a reasonable price.
Market Analysis
The market for smartphone accessories, and particularly for phone cases, has grown extraordinarily since the smartphone became a widely-used device beginning in the late 2000s driven by explosive smartphone sales. Because the smartphone is a relatively higher-value product, consumers spend more on phone accessories like cases. The smartphone accessory market had revenue of approximately $38 billion by 2014, with this volume expected to increase to more than $50 billion by the year 2018 (Global Sources, 2016). Majority of consumers in this market consider cost-effectiveness, quality, and reliability of the product, while more than 80% of consumers researched phone cases and other accessories online. Majority of the consumers in this market have a high to moderate disposable income and can be reached through physical store and multi-channel distribution models (Jones et al., 2014).
Strategy and Implementation
The startup’s strategy to differentiate its business in the market is based on two main areas, which will help to create an entry barrier for the market segment. First, the startup will provide integrated solutions to the needs of consumers since majority of potential competitors do not provide customers with the capacity to get information, evaluate, and purchase the product in the same space (Global Sources, 2016). The startup will also use opinion leaders for generation of positive and extensive reviews about the products, while also offering incentives for consumers to review products on the website. The second strategy will be based on cost-effectiveness based on creating supplier relationships that allow the business to react to entry of new companies with similar products sans significant changes to the margins (Barringer, 2015).
Management Team
John Cao will be the chief operating officer and has significant experience in the sector of operations, as well as management of external service providers. The chief Financial officer will be Peter Johnson who has worked as a financial officer for various startups, gaining experience with handling company growth and possessing knowledge in government regulations and taxation. Thirdly, the chief information officer is Kimberley Scott who has managed CRM systems for medium and small scale companies for over five years. Finally, Juan Vasquez is the chief marketing officer and will bring his expertise in search engine marketing and optimization to the company.
Financial Analysis
The startup will provide a range of phone case accessories for major brands, falling into two major segments which are low margin phone cases without customization and high margin cases with customization.
- Barringer, B. R. (2015). Preparing effective business plans: An entrepreneurial approach. Harlow: Pearson Education Limited
- Global Sources (Firm). (2016). Mobile phones & accessories: Supplier capability in mainland China and Taiwan. Hong Kong: Global Sources
- Jones, B. H., Chin, A. G., & Aiken, P. (2014). Risky business: Students and smartphones. TechTrends, 58(6), 73-83
