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Chips Embedded

General Tinio Street, Cabanatuan City


chipsembedded@gmail.com

Submitted by:
MICHAEL C. LICAYCAY
RENZ OLIVER G. LIMUACO
IRA JOY B. LLANETA
ALLAN GIORGIO C. MADUCDOC
VINIEL A. MARANAN
BSECE -5A

APRIL 6, 2016

Executive Summary
Chips Embedded is a start-up business located in the heart
of

Nueva

Ecija.

The

company

specializes

in

the

sales

of

electronic parts and mechatronics components that are unavailable


currently

in

the

province.

We

will

target people

who are

programming and electronics enthusiasts, those who place great


importance

in

their

projects

and

wants

high-end

electronics

without having to pay so much.


The company is owned and managed by a partnership between
five

Engineers

turned

entrepreneurs

Michael

Licaycay,

Renz

Oliver Limuaco, Ira Llaneta, Allan Giorgio Maducdoc and Viniel


Elefer

Maranan.

Electronics

All

of

them

have

Bachelors

Engineering

and

are

Fluke

Degree

Certified

in

Cable

Technicians.

Objectives
Chips Embedded is a growth-oriented business. Its five year
goal

is

to

become

regional

leader

in

the

electronic

part

industry starting from parts used for Do-It-Yourself projects


branching out to a wider range of electronic devices. With this

in

mind,

the

objectives

over

the

next

five

years

for

Chips

Embedded are the following:

Provide

the

province

the

best

quality

of

product

in

electronics at a reasonable price

Achieve steady growth in sales revenues by year five.

Achieve

local

market

share

(in

Cabanatuan

area)

of

approximately 20% by year five.

Expand product line to include robotics and more networking


supplies.

Company Summary

The company will be registered in the city of Cabanatuan and

be owned by the five partners.


The companys three-storey building will stand at General
Tinio Street Cabanatuan City. The initial facilities will
contain sales area on the first floor, the technicians work
space and storage for stocks on the second floor, and the
office on the third floor.

START-UP FUNDING
Requirements
Budget
Start-up Expenses
Legal
P 25,000
Insurance
P 15,000
Labor for the Construction of the
P 240,000 (10 workers, for 3 months
Building
at P400 per day)
P 72,000 (Civil Engineer, for 3
months at P24,000 per month)
Computers
P 90,000
TOTAL START-UP EXPENSES
P 442,000

Start-up Assets
Lot

P 1,000,000
(100 sq meters)
P 1,500,000
P 2,000,000
P 4,500,000

Construction Materials
Inventory
TOTAL ASSETS

Total Funding Required

P 4,942,000

INVESTMENT
Capital

Owner
Michael C. Licaycay
Renz Oliver G. Limuaco
Ira Joy B. Llaneta
Allan Giorgio C. Maducdoc
Viniel Elefer Maranan

P
P
P
P
P

TOTAL CAPITAL

1,000,000
1,000,000
1,000,000
1,000,000
1,000,000

P 5,000,000

Chips Embedded offers a wide range of services as outlined


in the detailed sections below. It is ultimately the goal of the
company

to

offer

one-stop

facility

for

all

electronic

components, including both sales and servicing. In this way the


company can offer greater perceived value for the customer than
many other shops which only offer sales or services.

Products and Services


The start of the millennium is marked by a phenomenal growth
of

interest

in

the

field

of

robotics

and

automation

in

the

Philippines. Yet, the enthusiasm is somewhat damped by the lack

of

technical

resources

and

non-availability

of

mechatronic

components in the country, not to mention their high price if


ever available. The industry is highly competitive with suppliers
having a great deal of power in setting and negotiating the
prices of their products and services to manufacturers. Most
products are only available for wholesale and must be imported.
One of the reasons why the supply in the country is very scarce,
thus setting the buyer power very high. Finally, the barriers to
entry

are

moderately

low,

there

arent

much

competitors

in

Cabanatuan area, and the large number of market in this field,


especially students, mean that the pricing for such services is
very

competitive.

The

industry

is

very

encouraging.

With

an

aggressive approach on business-to-business ties and a strong


business-to-customer ties, this company could grow exponentially
within

years.

It

is

the

aim

of

Chips

Embedded

to

create

competitive advantage through both the low cost strategy and by


offering greater value through its broader product and service
line.
Chips Embedded is also open for consultation, a feature that
most stores in the area dont offer. It will initially have one
trained and certified technician that could assess and answers
questions of customers in regards to the technical aspects of the
product. As the company grows and expands, the company will hire

trained and certified technicians who are able to prove they have
superior customer awareness and interaction. It is the company's
professional people who will fulfill the firm's contracts and
goals.

Product and Services Descriptions


Chips Embedded provides a wide range of semiconductor
products and technical services. These include:

Wholesale
automation,

and

retail

electrical,

of

components

mechanical,

for

so

as

electronic,
tools

and

equipments.

Free consultation for customers

Free datasheets of the components for every purchase

IT services

Project making

Future

products

and

services

that

Chips

Embedded

prepare to institute include robotics and networking.

Market Strategy

will

Chips Embedded has identified three distinct market segments


that they will target students, enthusiasts and technicians.
The only place where microcontrollers such as Arduino can be
bought would be in Manila. Another way to buy it is through
online which can take days to get. There are over twenty schools
offering Engineering programs that are surrounding the area where
the business will be built. These schools are one of our target
markets.
With the rise of the technology making it very accessible
for people to learn new things through the internet, DIY projects
are trending. The business tends to cater enthusiasts and provide
them the products that they need to perform their DIY projects.
It is also a way of encouraging the youth to be more engaged on
hobbies that are educational.
The third segment is for the technicians. The business tends
to supply them their needed components for their works that most
stores in the area couldnt because of the lack in the variety.

Market Share
Number of prospects in the

1000

target market people


Frequency of purchase per

5 times

year(average)
Average payment per purchase
Total number of purchases per

P 1,000
5,000

year
Projected total industry sales

P 5,000,000

per year
Percentage the firm can attain

20%

FIRMS MARKET SHARE

P 1,000,000

Pricing Strategy - Competitive Pricing


Average Price
Arduino Uno
Circuitrocks

P 620.00

CR-V Entrenched

P 700.00

Tinkbox

P 570.00

Chips Embedded

Promotion Strategy
Social Media Advertisement
Customer Referrals

Analysis of the competition


Business
DEECO
GP Electronics
Circuitrocks
CR-V Entrenched
Tinkbox

Price

Quality

P 650.00