scope for a business opportunity
TRANSCRIPT
SIMC BENGALURU
“Mit hjem Danmark!”: The CountryConstitutional monarchy with a parliamentary
system of governmentMember of the European Union (EU)Mixed market capitalist economy and a large
welfare state"the happiest place in the world“ based on
standards of health, welfare, and educationMost flexible labour market in EuropeRanked as the least corrupt country in the world
in the 2008 Corruption Perceptions Index, along with Sweden and New Zealand
Kongeriget Danmark: Facts GDP - real growth rate:
Field info displayed for all countries in alpha order. -3.6% (2009 est.)country comparison to the world: 171 -1.2% (2008 est.) 1.6% (2007 est.)
Household income or consumption by percentage share: lowest 10%: 2% highest 10%: 24% (2000 est.)
Natural resources: Field info displayed for all countries in alpha order. petroleum, natural gas, fish, salt, limestone, chalk, stone, gravel and sand
Population: 5,500,510 (July 2009 est.)
Age structure: 0-14 years: 18.1% (male 511,882/female 485,782) 15-64 years: 65.8% (male 1,817,800/female 1,798,964) 65 years and over: 16.1% (male 387,142/female 498,940) (2009 est.)
The Product What is it?
Digital Bicycle Security System Comes with a remote controlled system that can be
fit into a watch Why this product?
The country has a huge existing market for bicycles Addressing the need for protecting Bicycles against
loss/theft How does it work?
Just set the lock by pressing a button on your watch System comes with a tracker. If the bike is stolen by
chance, its location can be retrieved by local police authorities via GPS
Market Analysis Around 18% of the total population uses cycling
as a mode for commuting Out of whom most of the people use bicycles to
get to work/schools Bicycles are covered under household insurance.
However, these are only aimed at the working class group and young people cannot avail it.
People are buying more and more expensive bicycles which attracts thieves
An estimated 222 bicycles are stolen in the country every day
Bike thefts soared to 75% during the last year
CompetitionBatavus is the leading Bicycle security
solution providers in the country
DK Bicycles had also got into manufacturing security locks and pads for bikes in Denmark
Jingdong Hardware manufacturers are an omnipresent company that operates the world over from China and is largely popular in Denmark
Marketing Strategy Tie ups (JVs) with a few bicycle manufacturers
Hold PR campaigns that involve demonstrating the use of the product at public forums and bike showrooms
Sell the Security systems at a discounted price along with the purchase of a new bike (brand who we have tied up with)
POP advertisements in and around bike showrooms
Distribution NetworksCollaborate with a local bicycle distributor
company such that we can initially save on plant costs
Tie ups with a few bicycle manufacturers and provide the security system as an add-on kit with the purchase of a bike
SWOT
PESTEL
PoliticalDepend crucially on a wide range of
supportive government policies to make cycling convenient and safe
The Government should implement key transport and land use policies that establish the necessary supportive environment for cycling to thrive
Government can provide policies whereby it can cut subsidies on the new digital security system in order to promote cycling
EconomicalThe cost of exporting the products into the
country might be a little expensive as the exchange rates will differ from one country to another
Social80% of the times, the bike thefts are
opportunistic
A need for a security system that everyone in the society can avail
There is a need for a fool proof security system
TechnologicalThe country does not have manufacturers
that specialize in making digital security systems for bicycles
The cost of technology used for the product is high, that being the reason the product is priced at a higher point
EnvironmentalThe security system indirectly helps to curb
CO2 emissions as better security of bikes will encourage more people to buy bicycles
LegalThe product is subject to legal consequences
if by chance it fails to deliver what it promises
The parties in collaboration (parent company and distributor) must adhere to the agreement formulated and have a mutual duty of fidelity and honesty towards each othesr
Porter’s 5 Forces Analysis
Bargaining Power of customers The customers might want discounts on the product
during the initial launch as they might point out at the fact that it is a new brand and therefore should not be priced so high
They have other substitutes to choose from if not our security system
Threat of New Entrants Makers of Bicycle Security systems already exist in
the market, if they are to adopt the “digital” concept of the product then it would be a major threat
Threat of Substitute Products Substitute products like pad locks, chains and public
security systems might take preference over the product
Bargaining Power of Suppliers The suppliers know that having a tie-up with them is
essential for us to tap into the market initially, therefore will quote a higher profit margin
Competitive Rivalry within an industry In a country like Denmark, there is no dearth of
technology and research. So, there is always a potential threat of competition coming up with better technological and advanced products
“Tak!” - Thank you