TechSavvy: Electronic Repair Shop

Please follow the instructions!
I have page 300-303 in the additional materials slot. Also the mission statement, 4p’s cost and additional info is located in the additional materials slot. Add pictures at the end of the business plan

Professor instructions below:
This is a cursory business plan. It should be good enough to use as a basis for developing a real one, if you see fit to do so. To prepare it, see “Building a Business Plan” (Bamford & Bruton, 2016, pp. 300-303). Skip the executive summary. Write each section in paragraph form, with no tables, graphs, or bulleted lists. Prepare separate appendices for tables, graphs, and illustrations. Then simply refer to the appendices in the appropriate sections. Follow these guidelines:

Company Mission

Start with “History and Position of the Business to Date,” which you may call simply “Mission and Description.” Use only the relevant part of Business Plan Part I. Save the strategic part for later. Improve your original commentary. Refer to the bulleted list for further ideas, but refrain from creating bulleted lists in your own work. Write everything strictly in paragraph form.

Marketing

Continue with “Market Research,” which you may call simply “Marketing.” Use Business Plan Part III for this. Separate any portion that refers strictly to strategy, as that should go in the next section below. Improve your original commentary. As before, refer to the bulleted list for ideas.

Strategy

Now proceed with “Business Strategy,” or simply “Strategy.” Use the relevant portion of your commentary from Business Plan Parts I and III that apply here. By now, you will have thought through this issue more deeply, as reflected in your approach to the marketing section. Use those insights to improve upon your original Discussion Board commentary for this section.

Financial Analysis

Improve upon your prior work from the Discussion Board. Include only the discussion portions. Relegate the budget and projected cash flow tables to appendices (no other tables are necessary). Merely reference the appendices here (e.g., “see Appendix A”). As you enhance your discussion, focus on exploring ways to control costs, such as leasing equipment, negotiating with suppliers for credit, and holding off on hiring people (e.g., using independent contractors for a while).

Operations

This is your last section. Use only the first nine bulleted items in the textbook to guide discussion about how you will organize your value chain. As always, avoid writing in bullet form. To use images or tables (e.g., critical path—but these are optional), create appendices to reference.

STANDARDS

See the syllabus. The minimum length is 1,375 words, which you will easily surpass. There is no upper limit. As the syllabus states, use correct, formal English (e.g., no contractions, colloquial expressions, or quirky comma-phobic stream-of-consciousness meanderings). Above all, avoid duplicating long strings of words from outside sources.

ANSWER

TechSavvy Business Plan 

The telecom industry has experienced exponential growth in the last decade, illustrated by its considerable gains in capital markets. The proliferation of electronic devices is increasing at high rates with the growth credited to the transformation of the Internet of Things (IoT). The increase in usage of electronic devices such as laptops and mobile phones has led to a market niche for repairing the appliances. The world’s evolution has influenced the urgency and need for a smartphone, mainly due to social media development. However, electrical devices are prone to damages due to their fragile nature, thus setting forth the business of devices repair. Most people chose the option of rehabilitation rather than buying new gadgets due to the costs involved. The firm is majorly involved in selling and repair of electrical tools and equipment and offering services relevant to electrical. Most smart device owners circumnavigate the idea of purchasing insurance covers, thus opting for third-party repair shops to restore their devices in case of damage.

Company Mission

Our goal is to provide innovative repair services for electronic devices such as mobile phones, tablets, and laptops, providing excellent customer service and quality repair in less waiting time. The company mission statement sets the standard for in-home computer and electronic devices repairs by offering a fast, reliable, and high-quality repair service. Our objective is to restore devices quickly and make the repair process affordable by harnessing technology. Our goal is to gain customers’ trust regarding quality, friendliness, and time to completion at the lowest price possible. Our convenient and rapid service will save clients time and money.

The company’s values include Honesty, Reliability, and Fast service. The values serve the purpose of trust regarding theft and loss of confidential information and, in other cases, misuse of the data. The company policy states procedures for submitting and retrieving electronic devices to mitigate theft and misuse cases. The business will start small, focusing only on Lee county (Alabama) and surrounding counties. The company’s short-term goals will mainly focus on repairing cell phones with the addition of laptops, tablets, and smartwatches.

Once the business has grown to an established brand, we will start to branch the business to other states and set shops in small towns. The long-term goals are to become the leading repair shop in Alabama. The company will hire competent professionals in the industry conforming to the policy of hire slow, fire fast (Macke and Genari, 2019). The hiring process will be based on technical know-how and customer service relations. The management will comprise the chief executive officer, technical services manager, human resource manager, and marketing executive. The company staff will also include a finance director, technical engineers, and customer service attendants.

Marketing

 The primary target audience comprises students, adult working and non-working class, and the elderly. Students mostly comprise generation Z whose phones are prone to damage, heightened by their outgoing theatrics exposure. The common characteristic is seeking reliable and fast repair services for their electronic devices. TechSavvy will utilize the 4Ps of the marketing mix; product, price, place, and promotion (Ikechi, Chinenye, and Chiyem, 2017). The products and services offered by TechSavvy include the repair of damaged screens and motherboard for gadgets such as iPhone, Samsung iPad, and I Watches.  The devices are costly to purchase, and repair costs are relatively low; thus, it will be of great help for customers who do not have insurance on their devices and looking for a grand refurbishment. The business will also have a kiosk inside the store for customers who want to dispose of their old phones for a fee. The kiosk will give the customer a checklist to fill out on the gadget specifications, and a fee is automatically suggested. The customer accepts the bid, a ticket is printed, and customers get paid immediately after the phone’s kiosk.

Place in the marketing mix implies location. Since the business is small in terms of financial capacity, the location will be a mobile trailer for easy accessibility. The company’s mobility will increase market penetration. The company will visit the customer rather than wait for clients and shorten the time range needed for the savings to afford a building space. The pricing strategy in the repair business is purely competitive, where each firm is a price taker. The company will base its pricing terms on marginal costs and marginal revenues where the marginal costs incurred in servicing one item is less than the revenue collected. The labor cost for phone fixes will vary from $65-$85 depending on the brand and the phone generation. iPad will be a set price of $65 for labor. Laptops will vary from $95-$110 for labor. The payment options available include cash, online bank transfers, and credit cards.

Promotion relates to advertising and publicity. TechSavvy will use social media, flyers, posters, and websites as part of the marketing plan. A website will be created and incorporate coupons for students and elders to redeem to gain popularity among the competition. Social media will be a big market promotion for TechSavvy by using Facebook, Twitter, Instagram, and Snapchat. Social media marketing can also target a vast population of followers by replying directly to their follower’s social media activity (Sajid, 2016). For example, a user can tweet about needing repair, and immediately the company sends a direct message with information regarding the repair shop. Flyers and posters will be strategically positioned at a local business, such as grocery stores, doctor offices, nightlife, and small businesses.

Strategy

Miles and Snow’s Model strategy and low-cost leadership strategy will be used concurrently. The Miles and Snow Model proposes developing strategies to align the internal and external environment to manage its market share.  The company will major in the defender trait where the company is based on loyal customers (Soltanizadeh, Rasid, Golshan, and Ismail, 2016). The company’s strategy in keeping up with its quick service mission will feature customers getting all their repairs done while at home. The customer requests a home visit for checking devices using the website or provided phone numbers.

The user provides the details of the broken or damaged electronic device online by attaching a picture and a short description of the gadget state. The technical team will be dispatched to the customer’s place to check the device. A quotation is done, and the gadgets are taken to a centralized place for repair. The clients will receive notifications on the repair progress through direct messages to keep them informed. The refurbished device is then returned to the client at the earliest time possible. The turnaround is efficient, and the price is reasonable.

The company will apply the low-cost leadership strategy in pursuit of a competitive advantage. The electronic repair industry is highly competitive due to its high labor costs, high supplier and buyer powers, and low switching costs. The suppliers are conglomerates, such as Panasonic, with a limitless number of substitute customers, thus have the power of negotiating for high prices. Customers define repair services as undifferentiated products; therefore, buyers have the liberty of choosing the most favorable price and services. Barriers to entry and switching costs are low, leading to high competition regarding the price of services. Low-cost leadership strategy will create a competitive advantage by lowering prices to generate demand and improving customer relations to create high switching costs. The company will outsource repair parts in bulk to take advantage of volume discounts. This is in line with the company’s low-cost strategy. The company will build stronger strategic relations with outsourcing companies to lower the overall costs of parts.

Financial Analysis

The budget and cash flow statements are an essential part when considering your business plan. Startup capital is dependent on the goals and vision of a company. Tech Savvy company aspirations are to start at home first before moving to a storefront location. This resonates well with cost-benefits analysis as it will provide time to save money to afford a suitable site. The funds will be generated through personal savings, advances from extended family, and a loan facility. I consider taking out a loan facility of $6,000 from a local bank to supplement the funds raised.

The funds will cater to the startup costs, including tools required to complete the devices’ repairs and spare parts. The spare parts include screens for household brands such as iPhones (iPhone 7- XR), iPads, and Samsung series (note and Samsung S series). I have contacted a company on bundle sales for these screens. It will take approximately $2,500-$3,000 to get these screens in stock (10 per phone and iPad). The funds will also cater to website launch costs, marketing costs, labor costs, and miscellaneous expenses. Advertisement costs will be the form of coupons, payment to online influencers, and paid-per-click advertising on the website. The projections are a profit of $2,000 monthly. Sustainability and expansion goals are to build a business that will survive off its generated cashflow without external injections (Qamariah and Muchtar, 2019). The expansion of the business is dependent on the number of loyal customers and the low-cost strategy. Loyal customers lead to profitable clients as they act as referrals for more clients to the business. The business will operate on a low-profit margin in the first business quarter due to the lower price to attract more clients.

Company Operations

The repair shop will first be located in a mobile truck for easy accessibility but will later shift to a storefront based on the number of loyal customers. The business will shift to a centralized storefront when the number of customers can sustain the business regarding rent and location expenses. The business will incorporate the use of QuickBooks accounting software to organize financial information. The system will keep track of income, expenses, and loan facility payments. The system will also be used to keep track of inventory to avoid theft of spare parts. Inventory management is necessary for the smooth running of the business as it prevents shortages and excess of stock, allowing for efficient planning of finances.

Quality control allows the business to conform to specified standards. Inspection and checklist tools will be used extensively to check for variances in the products to ensure quality and prevent repair process bottlenecks (Macdonald, Kleinaltenkamp, and Wilson, 2016). Tech Savvy operating hours are weekdays from 8 am to 5 pm. On weekends and holidays, the operating hours are from 9 am to 3 pm. The average waiting period for repair services is two to three days. The equipment used is of the same quality since the suppliers are also manufacturers of electronic devices. The equipment is universal; thus, quality is dependent on the competency of employees. The staff will work depending on the stipulated operation hours for weekdays and weekends from the onset of business operations. There will be only one shift, day time shift, since the number of employees is low. The staff will be a critical factor in the business; thus, their wages will be reflected by their contribution to the firm’s expansion strategy.

References

Ikechi, A., Chinenye, E. P., & Chiyem, O. (2017). Marketing Mix Concept: Blending the Variables to Suit Contemporary Marketers. International Academic Journal of Management and Marketing, 9(1), 55-65.

Macdonald, E. K., Kleinaltenkamp, M., & Wilson, H. N. (2016). How business customers judge solutions: Solution quality and value in use. Journal of Marketing, 80(3), 96-120. https://journals.sagepub.com/doi/10.1509/jm.15.0109

Macke, J., & Genari, D. (2019). Systematic literature review on sustainable human resource management. Journal of cleaner production, 208, 806-815. https://www.sciencedirect.com/science/article/abs/pii/S0959652618331056

Qamariah, I., & Muchtar, Y. C. (2019). Analyzing the business performance of small and medium enterprises (SMEs) based on human capital, social capital, and competitive advantage. Eco forum Journal, 8(2).

Sajid, S. I. (2016). Social media and its role in marketing.

Soltanizadeh, S., Rasid, S. Z. A., Golshan, N. M., & Ismail, W. K. W. (2016). A business strategy, enterprise risk management, and organizational performance. Management Research Review.

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