Business Plan - Bowzo: a Case Study in Engineering Entrepreneurship

Partners Background
Jim Oswald
Fauzan
Aiman

Conclusion
Basic Feasibility of the Venture
In order to ensure that the business would stay competitive in the market and becomes
sustainable in the long run, the company must be able to provide the market with an
offering which is unique, different and innovative from the other competitors.
Furthermore, the company must offer a solution to a long standing problem faced by the
customers in the market to attract sales.

Jim, the inventor, found out that violin students had the same problem for a long time.
Students has always the problem of keeping the violin bow straight during bowing.
During his discussion about product ideas with Larry, Larry revealed his thoughts about
a device for helping novice violin players to learn faster and play more accurately by
bowing straight from the moment of the first lesson.

With the problem at hand, Jim and Larry discussed the solution to the problem, a
suitable offering for the market’s long time problem. They discussed about device that
would be attached to the neck of the violin and provides precise guidance and control
for students during their bowing development technique. It would be a simple device
that would help the student to keep the bow straight at all times.

Having a competitive advantage for the venture in the market would strengthen the
position of the company against the competitors. A business should analyze their
strength and weaknesses in order to obtain a unique characteristic that would enable

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the company to stand out from the others. Competitive advantages such as first movers,
cost or product differentiation would enabled the company to survive better in the harsh
environment of the market.

Bowzo was the development of a new product within the market that helps solve a long
standing problem of violin students and teachers. Bowzo helps both students and
teachers as a learning aid in violin classes. Bowzo was designed to help novice violin
players to learn faster and play more accurate by bowing straight from the moment of
the first lesson.

Buyer Decisions in the Venture

Consumers are more decisive in making buying decision when they find a solution to a
problem they are facing. Customers view products and services which offers the right
solution for the specific problem and need of the customers as highly valuable. When a
customer deems a product or services as highly valuable, they would not hesitate on
the purchase and would even willing to pay a premium price for such products.

Since majority of the violin player community acknowledges and understands that
novice violin players face the common problem of bowing the violin properly. Teachers
and students alike find that the problem is the most common problem among the new
students and there should be a learning aid tool for them in order to learn how to bow
the violin properly.

With the problem acknowledged and understood, it will be easier to persuade

customers into buying the product. The company must be able to persuade customers
to buy by attracting them through showing customers the benefits of Bowzo. The
product offering of the company will help them to play the violin correctly, fast and
efficient.

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In order to understand the current market, an early market research is a must for any
new businesses before they start up. This is to ensure that the company has the
necessary information such as competitors, target markets, product offering interest
within the market, and potential market share. This would enable the company to
prepare specific strategies so it may penetrate the market.

The company has conducted an early market research to see the response of the target
market on the product offering. Initial research has found out that most teachers and
students alike in the violin player community acknowledge the benefit the product
offering provides and find it very useful in learning how to bow the violin properly. Such
a longstanding problem has finally been met up with a brilliant solution.

Businesses should understand clearly who their target market is. This is to ensure that
the company fully understands who they are providing for in the market and that they
would able to understand what their needs and wants. The target market for the
company has been identified as teachers and students at violin schools. Both teachers
and students would greatly benefit from such product.

Production process for the goods and services must be clearly understood by
companies in order to maximize the raw materials and labour for efficient and effective
process. The company must decide on certain processes such as procurement of raw
materials, designing, manufacturing, quality control, research and development.

It is decided that the company shall rely on traditional form of distribution; through
wholesalers, distributors and retailers. This is very effective for newly developed
business as it would enable them to focus more on production, marketing and research
and development and less focus can be given on sales and distribution. Traditional
distribution channel is known to be effective and has a good success rate. This would
allow a newly formed business to play safe at first and ensure a good initial growth of
the company.

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Financing is very important for new companies because it is the critical moment for
them to manage the business. Generally, there is no profit for the first year and the
management should pay close attention to their resources, purchases and cash flow
management during this point.

For the company, a seed capital has been obtained and secured for early market study
and for production of the first batch of products. The early market research has been
conducted using the seed capital and it has found out that the product offering of the
company is widely accepted by the violin experts, teachers and students. Other than
that, the first batch of products is in development and is due for the product launch in
the early 2006.

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