Entrepreneurship Final Project

Group members:

Mustajab Chughtai 70074021

Muhammad Gufran Khalid 70071201
Ahsan Ali Watto 70071341
Ayesha Nisar 70075492
Syed Ali Mohtshim 70071629
Waleed 70071518

Submitted to:

Mam Asra farooq qazi.

Executive summary:
The idea that we have selected for our business is the new innovation of the
Norway Company. Paul Mange Amundsen is the Co-founder of this company
who bring up with an idea of Retire system. Retire is offering tires that can be
adapted for different surfaces and conditions with the addition of a surface that
zips into place. Retire system means where you can change the surface of your
tire in seconds with using integrated zippers. It is highly durable and the skins sit
firmly attached even at high speeds. You won’t even notice that you are riding on
modular tires.
It acts like a cover for the primary tire, but there is no need to pumps air. The
skins are small and light enough to be carried in pack, and no special skills or
tools are required to use the skin. If you can use a zipper you can use retire. The
tire won’t slide back and forth against the underlying base tire. A special fiber
construction have been balanced for the skins to keep weight down.

The main purpose of choosing this idea is that we want everyone to be able to
change their tire in less than a minute. The second reason is that by using the skins
people can save time and money as compared to using and changing regular tires.

We as a group are going to start our new business so the product that we are going
to sell is in the initial state of the product life cycle. To start our new business,
initially we require amount of 6 lac which includes the monthly miscellaneous
expense, worker’s wages, warehouse rent, shipping cost etc. Currently our
business is in unstable position due to lack of awareness among people, weak
relationships with the distribution channels, weak bond of trust between the
customers and the company. Beside this company have no major achievements
but we will try our best to getting the achievement’s by increasing the awareness
of our product among our customers and by making strong relationships with our
distribution channels.
General Company Description:

Name of the company: The name of our company will be the “Re-tire

Company”. We have choose this name for our company because we are going

to sell only one product named as Re-tire skin.

Type of legal entity: We are going to use general partnership entity in which

we develop a simple business structure for our company with more than one

owner. In this entity all partners will be equally liable for the company’s actions

including debt and profit. All the income from the company will be taxed once.

Ownership: We as a group of 6 people are going to start this business and by

using the legal entity of general partnership, each partner have an equal right in

decision making for the benefit of the company. A single partner can make the

important decision if rest of the partners are not available at the moment. Each

partner is equal responsible for the debt and income of the company.

Significant assets: We are not going to make the product by ourselves but we

are going to import it from the Norway Company. The Company itself have a

competitive edge over their competitors because before making the skin they

initially recycle the spoil tire of trucks instead of purchasing the new leather

which helps the company in saving their cost.

Goals and Objectives: The main objective of launching this product is to save

the time and cost of people. By using the retire skin people can save their cost

because it saves the tire from puncturing as well as it saves time by using the

zipper within minute. Primary goal of our business is to create awareness about

the product and to create strong relationship between the company and its

distribution channels. Initially we want our product to be successful in the origin

of Punjab, later on we will go to other provinces of Pakistan.

Mission Statement:

“To deliver the best quality products with least price

to our customers and to improve the productivity of their tires”

Core competencies: Retire company is the one which is going to launch this

product for the first time in the tire industry of Pakistan and by doing this the

company will able to gain the first mover advantage. This thing provide the

company competitive advantage over their competitors.

The Opportunity, Industry and Market

The Opportunity
Where is the gap in the market?

People invests thousands on purchasing a new tire after their validity is finished.
Besides that if someone is on a road so, not everyone knows that how to use a
jack of a car and tire shops are not easily be found.
What has given rise to this gap?

We have introduced our product by name Re-tire. This product only needs to be
zipped on the tire and traveler can easily travel from one place to another without
any stress.

How was this gap identified?

We came with Re-tire because most of the people does not know that how to
change a tire and how to tighten the bolts in a proper sequence and we saw that
our country roads aren’t good enough to drive. Most of the tire gets punctured
and repairing punctured tire again and again cause the layer of tire rough which
can burst the tire when car is on high speed.

How will the gap be filled?

The gap was filled by zipping a layer of Re-tire on a tire and tested which really
grips the tire and make a drive easy and stress free. This product was introduced
in America and thousands of people purchased that when they got to know that
the Re-tire really grips the tire and made the drive easy especially on tough
terrains and snowy roads.

The Industry

What are the barriers to entry in this industry?

Basically, we import this product and barriers we face is just the costs e.g.
shipment costs, product costs and taxes.
How much power do the customers have?
Every business earns profit by customers and every customers has different power
either to purchase or not. The product we introduced is not in Pakistan before so,
customer will buy our product and we have decide affordable prices because we
don’t want to lose the customer, all we just want the customers satisfaction.

How much power do the suppliers have?

We are not having significant power of suppliers, as we are new in markets.

Are there substitute offerings for the product or service?

There are no substitute for our products. We are the first and new entrants to
start this business.

Who are the competitors and how strong is the competitive rivalry?

Currently, there are no competitors but as our business will run, we can say that
we can have a threats of new entrants who can give same product in least cost.

The market

What is the total size of the market?

Our size of the market is not very large because we know that the people in our
country loves to travel but think millions of times before purchasing
something.
How fast is the market growing?

The market growth depends on the purchasing power of buyers because we

know that we have to face a major question such as, “is it better than the
punctured strip and will this product increase fuel consumption”?

What percentage share of the market will you have? (This is important
only if you think you will be a major factor in the market.)

We haven’t decided yet as we have discussed that it all depends on the buyers.

Strategy

The focus of the business: broad mass market or a specific niche?

Our product is a niche product and we will apply the Michael Porter’s Five
Generic Strategy which is differentiation and type-4 which offers
products and services at lowest price.

How the business will succeed in the market? How will you create a unique
and valuable position, involving a different set of activities?

The business will easily be succeed in the market because we know our
country people loves to travel and we will give the guarantee of our product by
showing them a uniqueness and different product which will save the tire
from getting punctured, burst, increase the validity and roughness.

What is unique about the business? How is the offering different from that
of competitors?
The uniqueness of our product is “a layer can save your tire”, which just have
to be zipped on the tire without wasting time, costs and a time to find a tire shop.

What is the value for the customers? Describe the value proposition for the
customer?

We are giving the product by applying low-cost strategy and by giving best-
value product which will easily attracts the customer.

BUSINESS MODEL:

Key Activities
Key Partners
Radio ads. Platform activities.

Billboards.
Maintenance &
Articles. development.

Warehouse. Shipping operations

management.
Supply chain management.
 Channel
Value proposition Retailers
Protect tires Saves time & cost. Distributers
Unique feature yet no one is Online website
offering this product Social media
Affordable and reliable.
Fine quality.

Key resources
Customer segment Digital marketing
Travelers Technology infrastructure.
Age between young to old.
In-bound logistics.
Distribution team.

Cost structure:
Revenue Cost
Marketing and sales.
Promotions.
Research and development.

Shipping cost. Discount vouchers

Revenue sharing.
Govt. taxes.

Administrations expenses.
Website advertisement.
Maintenance development.

Critical success factors:

  Maintain the relationship with our customers
 On time delivery
 Customer satisfaction
 Market share

Team management and organization

CEO and Founder our company is Mustajab because he will going to
investment on this idea and he has capabilities to lead the team and other
operations of our business. Waleed and Ali Mohtshim will going to manage
our financial operations because these both have expertise in finance
subjects. Ayesha will going to handle our marketing activities because she
has core competencies in marketing that how to promote and advertise
our business. Ahsan and Gufran will going to handle HR activities as we
both have skills in human resource.

Financial Plan:
Our business is new in Pakistan’s market so after our estimation we think that
it will easy to start a unique business in 1100,000 rupees. We will invest
600000 by our self as we are 6 owners of this business and remaining 500,000
we will take loan as it is a new business so we are sure that we will get loan
very easily.