I.S.A.L.

| Instituto Superior de Administração e Línguas

Competitiveness and Innovation

Lecturer: Bruno Freitas

Funchal 2023

Müllerová Zuzana
Krejčová Tereza
Didyková Andriana
Table of Content
1. Introduction ........................................................................................................ 5
1.1 Basic information .......................................................................................... 5
1.2 Key people ..................................................................................................... 5
1.3 Brief description ............................................................................................ 5
1.4 Analysis of the market ................................................................................... 6
1.5 Overview of the strategies ............................................................................. 7
1.6 Description of the technical and management experience ............................ 8
1.7 Statement of funding requirements ................................................................ 9
2. Vision and Mission ........................................................................................... 11
2.1 Vision ........................................................................................................... 11
2.2 Mission ........................................................................................................ 11
3. Company services and products ..................................................................... 12
3.1 Description .................................................................................................. 12
3.1.1 Features of the product and service ...................................................... 12
3.1.2 Advantages/disadvantages for consumers............................................ 13
3.1.3 Insurance and guarantees ..................................................................... 13
3.1.4 Unique selling propositions ................................................................. 13
3.2 Patents and Trademark Protection ............................................................. 14
3.3 Description of manufacturing processes ..................................................... 15
3.3.1 Raw materials ....................................................................................... 15
3.3.2 Costs ..................................................................................................... 15
3.3.3 Main suppliers ...................................................................................... 16
3.3.4 Delivery times ...................................................................................... 17
3.4 Future Product or Service Offerings ........................................................... 17
4. Industry profile and overview ......................................................................... 18
5. Competitor analysis ......................................................................................... 19
5.1 Swot analýza ................................................................................................ 19
6. Business strategies ............................................................................................ 20
6.1 Desired image and market positioning ....................................................... 20
6.2 Company goals and objectives .................................................................... 20
6.2.1 Operating .............................................................................................. 21
6.2.2 Financial ............................................................................................... 21
6.2.3 Others ................................................................................................... 21
6.3 SWOT analysis ............................................................................................ 21
6.3.1 Strengths............................................................................................... 22
 6.3.2 Weaknesses .......................................................................................... 22
6.3.3 Opportunities ........................................................................................ 22
6.3.4 Threats .................................................................................................. 22
7. Competitive strategies ...................................................................................... 23
7.1 Cost leadership ............................................................................................ 23
7.2 Diferenciace ................................................................................................ 23
7.3 Focus ........................................................................................................... 23
8. Marketing strategy ........................................................................................... 24
8.1 Target market .............................................................................................. 24
8.1.1 Benefits for users.................................................................................. 24
8.1.2 Demographic profile ............................................................................ 25
8.1.3 Other customer characteristics ............................................................. 25
8.2 Motivating customers to buy ....................................................................... 25
8.3 Market size and trends ................................................................................ 26
8.3.1 How big is the market? ........................................................................ 26
8.3.2 Is the market growing or shrinking? How fast? ................................... 26
8.4 Personal sales efforts .................................................................................. 26
8.4.1 How big is the market? ........................................................................ 27
8.4.2 Sales force size, recruitment, training .................................................. 27
8.4.3 Average sales volume .......................................................................... 27
8.5 Advertising and promotion .......................................................................... 27
8.5.1 Frequency of use .................................................................................. 28
8.5.2 Plans to create publicity ....................................................................... 28
8.6 Price ............................................................................................................ 29
8.6.1 Image on the market ............................................................................. 30
8.6.2 Price comparison with competitors ...................................................... 30
8.6.3 Discounts .............................................................................................. 31
8.7 Distribution channels .................................................................................. 31
8.7.1 Distribution channels used ................................................................... 31
8.7.2 Market test results ................................................................................ 32
8.7.3 Feedback from customers .................................................................... 32
8.8 Competitive advantage and sustainability .................................................. 33
9. Description of the management team ............................................................. 34
10. Operational plan ........................................................................................... 37
10.1 Chosen form of ownership and justification ............................................ 37
10.2 Company structure (organizational chart) .............................................. 37
10.3 Decision-making power ........................................................................... 38
 10.4 Benefits and Reward/Compensation Packages........................................ 38
10.5 Personnel plans........................................................................................ 38
11. Resources ....................................................................................................... 39
12. List of tables and figures .............................................................................. 40
1. Introduction

1.1 Basic information

Company name: Easy Trip

Address: Rua dos Aranhas, 53 Sé, Funchal, Madeira Island
Phone number: +351 753 536 678

1.2 Key people

• Programmers – they take care of the actual functioning of the application

• Designer – takes care of the design of the application
• Hike organizer – devises routes for application users, checks their availability
• Marketer - takes care of the application's marketing
• E-shop administrator - takes care of promotional items (their availability in stock)
• Finance Manager – takes care of all finances related to the application
• Online communication - a person who communicates with people in the application,
answers their questions

1.3 Brief description

Our company is in the business of creating an app that will help indecisive adventurers
plan hikes on the island of Madeira. Our entire company will therefore be located in an
online environment. Therefore, it is necessary for our users to have a smartphone on which
to install this application. Here it will also be possible to choose a tariff (one-day, weekly,
monthly, half-yearly or annual subscription), which can be paid by card directly in the
application. After payment, the user gets to the application environment itself, where a
menu of hikes in Madeira will be displayed, which will be created by the creators of the
application.

The hikes will be divided into three categories - easy, medium, hard. Each category will
then contain several routes. The user then chooses one of the routes that he will have to
take. The application will be connected to GPS, according to which it will find out whether
the person in question has mastered the given route. Each route will be evaluated with an

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individual number of points according to difficulty. If the user reaches a certain number of
points, he can receive a promotional item, such as clothing, hiking equipment, or discounts
on other activities in Madeira (dolphin watching, cable car, entrance to the botanical
gardens, surfing lessons, etc.)

The app will also have the ability to communicate online with one of the app's organizers if
users have any questions about the hikes. Furthermore, there will also be the possibility of
discussion with other users of the application, where they will be able to share their
feelings, experiences, recommendations, etc.

As for the competition, such an application has not yet been created in Madeira, so it will
be the first on the market. However, there are several apps that are related to Madeira and
hiking in Madeira, but none of them work on the same principle as ours.

1.4 Analysis of the market

As already mentioned above, there is no application on the market that offers the same
product as our company. So here are several competing applications and websites that are
at least somehow related to our product.

WalkMe

Useful info about various routes (closures, route difficulty, route length, bus number, etc.),
if the route is closed, it is marked Temporarily closed right at the beginning. If it is not
closed, there is no information and therefore it is open.

Website – https://walkmeguide.com/en/madeira/trails-list/
Application (paid) - https://play.google.com/store/apps/details?id=com.walkme

Guide

Madeira - The most beautiful mountain hikes and levada tours - 60 routes (Rolf Goetz)
This is a really useful guide to the different routes (mountains, levadas, etc.) in Madeira if
you are going to visit Madeira.
Website - https://www.megaknihy.cz/pruvodci/671016-m.html

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ProCiv Madeira
In this app you will find, for example, weather warnings, road and route closures, contacts
to hospitals and health centers, etc.
It can also be used to contact the ambulance or fire department.

Website - https://play.google.com/store/apps/details?id=com.dobsware.procivmadeira

Madeira Island for Travellers

A group with a lot of photos and information about Madeira, the possibility of a brochure
with a lot of interesting and useful information.

Website - https://www.facebook.com/madeiraislandpage

1.5 Overview of the strategies

Analysis of the current state

• Analysis of the external environment – STEP analysis (Social factors;
Technological factors; Economic factors; Legal factors)
• Porter's five forces analysis of the industry environment (Rivalry; Barriers to the
entry of new companies; Threat of substitutes)
• Market and price analysis (Development in the market; Segmentation of
competition (size, specialization, belonging to a certain region), Analysis of
individual competing companies; Analysis of compensation for competitors; Power
of suppliers; Power of buyers/distributors)
• Internal analysis (Mission; Values; Goals; Strategy; Human resources; Search for
new people; Training, education; Management; Company culture; Organizational
structure; Economy; IT; Marketing; Financial management of the company)
• SWOT analysis (Strengths; Weaknesses; Opportunities; Threats)

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 Business strategy of the company
• Financial strategy (financing; cash flow management; budget; receivables and
payables management; total sales plan; profit plan; controlling; remuneration and
motivation)
• Marketing strategy (Product, Place; Price; Promotion)
• Personnel strategy (personnel plan; selection of people; adaptation; regular staff
training; career plan; motivation; team building)
• Production strategy
• Operational strategy (IT; logistics; storage; purchasing; meetings; processes)

1.6 Description of the technical and management experience

Programmer
• collaboration on testing or debugging created applications
• creating documentation, data and object structures and defining their links
• programming in the appropriate programming language based on analytical
documentation
• according to the design of the user interface collaboration in the creation of the
user interface
• preparation of materials for user documentation

Designer
• following art trends
• cooperation in the implementation of proposals in the stage of development and
production
• ensuring the use of new and effective materials
• control of compliance with technological procedures
• Communication with a customer
• maintaining relevant documentation

Organizer of hikes
• compiling programs
• knowledge of the terrain
• good organizational skills

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 Marketer
• provision, organization and monitoring of advertising campaigns online
• preparing an assessment from the point of view of their effectiveness
• drawing up an advertising and promotion plan
• processing conceptual proposals for promotional events
• maintaining related documentation

E-shop manager
• monitoring trends
• checking goods in stock and their orders
• communication with customers

Finance manager
• taking over accounting data
• control of data from the point of view of formal correctness and binding of
prescribed legal regulations
• provision of methodical assistance related to bookkeeping
• being responsible for the correctness of the recommended procedures in relation
to the applicable legal regulation
• processing summary accounting statements and being responsible for their
correctness

Online communication
• analysis of client requirements
• designing process optimization and their implementation
• participation in projects based on proposals

1.7 Statement of funding requirements

A group of ten people is involved in the development of the application. Each of them will
contribute equally to the financing of the application. Together, they will provide 80% of
the initial investment in the company. The remaining 20% will come from sponsors.

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A large percentage of the money will be used to finance the development of the
application, namely its programming and coding, design, marketing, maintenance and
improvement of the application, and other other necessary activities. The rest of the money
will be used for fixed costs and other costs needed to make the application work.

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2. Vision and Mission

2.1 Vision

• Building a good reputation

• Gaining loyal clients
• Get new users
• To be a global travel app
• Making travel easier for everyone
• Find suitable partners for our application
• Create your own merch
• Live Stream interviews with travelers
• Creation of Premium features

2.2 Mission

The idea for this application arose for one simple reason - everyone sometimes finds
themselves in a strange place where they are not familiar. Nowadays, it is easy to find
something on the Internet, but rarely do we learn comprehensive information. This
application offers a comprehensive and clear set of all the routes in Madeira and possibly
in the future all over the world. Sometimes we dream of a place we would like to visit, but
we don't know how to get there, what awaits us there, what else we can meet along the
way, where to rest, find out if the given route is currently accessible and much other
information. None of this will have to be dealt with by any of the adventurers after
downloading our application.

Another mission is to create a place where there is a community of people who share the
same passion - and that is travel. We will provide them with a place where they can share
their experiences, send photos and give advice to everyone who is going to those places.

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3. Company services and products

3.1 Description

3.1.1 Features of the product and service

Our company is entirely online. Our mobile application will be available for download via
Google Play or AppStore. After downloading the application, it will be necessary to
choose how long the user wants to use it (day, week, month, six months, year, unlimited).
After selecting the tariff and paying, the user gets to the online environment of our
application.

On the main page, the user will be able to create his own profile, in which his achieved
goals will be shown, which he will be able to share with his friends or other users of the
application. After creating a profile, 3 columns will appear here - heavy routes, medium
routes, easy routes. After clicking on the selected difficulty, several route options will
open. The user chooses a given route, which he decides to complete. Thanks to GPS, the
application recognizes whether the user has really fulfilled it. The application will show
him important milestones, elevation gain, current location, remaining km, walking speed,
resting places, etc. throughout the journey.

Each route (according to the difficulty of the terrain and time) will be evaluated with points
that the user will get after reaching the goal. For these points, the user will later be able to
choose one of the advertising items in our e-shop. He then orders the selected item and we
send it to him within a week. If the user washes one of the discount vouchers, there is an
option to send it to an email.

Another feature of our app is online chat with one of our team members. This person will
be online for chat from 7am to 7pm every day. Users can contact this worker with any
questions about the route. In addition to chatting with a team member, users can chat with
each other in the app. Give different advice, share your experiences, add photos from your
travels, etc.

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3.1.2 Advantages/disadvantages for consumers

Advantages
• Faster and more convenient distribution of information
• Possibility of personalization ("tailor-made" products)
• Better and faster orientation in an unfamiliar environment
• Introduction of loyalty programs and discounts for users
• Higher interaction of the visitor with the environment caused by the introduction of
modern technologies into the applications
• Increasing the ability to implement individual tourism

Disadvantages
• Excessive and inappropriate personalization
• Overcrowded mobile app market - poor quality information
• Loss of privacy (requirement of registration, use of GPS)
• Replacing human contact with a certain type of device
• Dependence on internet connection
• Maintenance, updating and modernization costs
• Reducing the purchase of pre-arranged tours

3.1.3 Insurance and guarantees

As this is a mobile application, it is not possible to talk about insurance or guarantees for it.
However, our company guarantees a refund if the application is not functional during its
use. For example, if users download it for a week while on holiday in Madeira and it
doesn't work then we'll give them a full refund. The condition is that the error is on our
side, it does not include a bad signal, a broken phone, etc.

In the event that clients receive damaged advertising goods or a non-functional voucher, it
will also be possible to exchange it for another one.

3.1.4 Unique selling propositions

The reason why potential customers should download our app is because we provide them
with already created routes. So people don't have to spend time thinking up a program for
different days. In the application, it will also be visible how they get to the given route,

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what can be seen here, what is the time required and the terrain. Rest areas and important
milestones will also be marked here.

Another factor is that if people complete the routes and collect a sufficient number of
points, they can choose a reward in our e-shop. I take this as a great motivation for users to
choose our application and not a similar one that does not offer this option.

3.2 Patents and Trademark Protection

Our company's product is a mobile application, and like music, books, movies and other
works, mobile applications are subject to copyright. Through copyright, the state grants
authors certain exclusive rights to a work for a limited period of time. Copyright is part of
so-called intellectual property. The World Intellectual Property Organization (WIPO) was
established in 1967 to support the protection of intellectual property. The fact that a work
is copyrighted is often signaled by the symbol © followed by the author's name and year.

Copyright law is based on the principle of the informality of copyright creation. The
author's work does not need to be registered or logged in anywhere. Copyright is protected
regardless of its scope. Copyright protects completed works, their individual development
stages and parts, including the title and names of characters, if they fulfill the legal
characteristics of an author's work.

The copyright to a work that was created by the joint creative activity of two or more
authors until the completion of the work as a single work belongs to all co-authors jointly
and severally. All co-authors decide unanimously on handling the work. Any use of the
work therefore requires the consent of all co-authors, regardless of the size of their creative
contribution. In cases where an individual author prevents the handling of the work of co-
authors without a serious reason, the other co-authors can demand replacement of the
missing consent by the court.

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3.3 Description of manufacturing processes

3.3.1 Raw materials

Since it is a mobile application, no tangible material is required for production. The most
important raw material is the knowledge and skill of all members of our team. However,
we can also consider our by-product as raw materials, which will, however, be advertising
items from our sponsors.

3.3.2 Costs

Assume that all mobile app development depends on a non-outsourced team. So the entire
team works on the development of the app and their fee will be paid only after the app is
profitable. So let's not take into account the cost of the team's time worked.

Preparatory phase
• Creating a business plan
• Selection of the target group
• Added value of the application
• Marketing plan
Price = cost of our team's time

Prototyping and design

• application design
• product design from individual elements
• a guide to the entire service
• user experience
Price = Time of product designer, UX/UI designer, or other team members

Programming and coding

Price = programmers time

Despite the fact that it is not necessary to pay a fee for the time of collaborators, we expect
certain costs that will be associated with the development of the application.

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 Marketing
In order for the application to be successful, it is necessary to get it to the people. Where
else to use the marketing communication of a mobile application than in the online
environment. The goal of our company will be to get to the interesting sections of the
Appstore or Google Play catalog. Furthermore, advertising on Google Adds or Facebook
will be used for paid promotion.
Price = marketer's time, paid advertising

Application operation, management and development

• hosting, i.e. the server where the application will run
• support and service (updates for new versions of operating systems)
• analytics and application development

3.3.3 Main suppliers

As mentioned before, for our main product, there is no need for any suppliers. The
most important suppliers will therefore be our sponsors, who will provide us with
advertising items that users will be able to choose from our e-shop. These will mainly be
local suppliers, such as healthy food manufacturers (farmers, protein bar manufacturers),
sporting goods stores, or adventure suppliers (surf agency, dolphin watching, botanical
gardens, sports centers, etc.).

• SportZone
• Decathlon
• Magic Dolphin Atividades Maritimas
• MadSea - Bodyboard & More
• Madeira Divepoint
• Follow Me Tours
• EPIC Madeira
• Others.

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3.3.4 Delivery times

Delivery times from our suppliers will be determined by which promotional items are
sent most often. The food will always be fresh and you will only send it to order. We will
collect other items every month or every other month.

3.4 Future Product or Service Offerings

In the future, our company would like to focus on the modernization of the application.
The main goal will be to create as many complete routes as possible, including the
possibility of transport, accommodation, catering, etc. on individual hikes. In the future,
the routes will be supplemented with photos in the application, which the users themselves
will be able to participate in. Another goal is to improve the design of the application so
that it is as clear as possible for users.

The vision for the future will also be the creation of a fully functioning e-shop, through
which users will be able to order merch from our company (clothing, hiking supplies,
souvenirs, souvenirs, etc.). We would also like to cooperate with other companies in
Madeira, while our customers could book their services in the application (such as
accommodation, car rental, dolphin watching, surfing course, etc.)

Our next goal for the future is the expansion of our application to other countries of the
world. First, our application will focus on expanding to other islands belonging to Portugal.
Subsequently, we would also like to map mainland Portugal. If the application is
successful, there is the potential to connect with people from other countries who would be
willing to work on our project and thus expand it to the whole world.

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4. Industry profile and overview
Mobile apps are software that is designed to run on mobile devices such as smartphones
and tablets. These industries are constantly evolving and adapting to new trends and
technologies. They are downloaded through Google Play, App Store depending on what
phone system if Android or Apple. The total number of apps is 4 million. In comparison in
2016 and 2019, the user has 204 billion apps and that is a growth of 45%. The apps related
to recommendation like food has increased by 240% in these years. This speaks volumes
about the incredible interest in the apps they frequently use. They use the touch screen for
control, trying to make it pleasant to use, easy to use. In order to monetize, they often use
pay-per-app on Apple store or Google Play platforms, another way is pay-per-use or
advertising banners that are shown to the user during use. There are different types of apps.
Social networks are used to share photos, videos, news and more around the world.
(Facebook, Instagram, Twitter and LinkedIn).

• Mobile entertainment such as games (SubwaySurf), streaming services (Netflix,

Spotify) and for watching videos (YouTube).
• Health and fitness serves to promote and help to track your health and fitness.
Apps in this industry help users track their health and fitness. (Fitbit,
MyFitnessPal)
• Mobile banking and payment apps are becoming increasingly popular. manage
their bank accounts, make payments, monitor transactions and track
investments. (PayPal, Revolut)
• E-commerce apps allow users to purchase goods and services directly from their
mobile devices. (Amazon, eBay,Aliexpress)
• Mobile apps for education provide users with the ability to learn new skills,
follow online courses, study languages. (Duolingo)
• Organizational apps are used to organize, plan, manage emails and documents,
and more. (Microsoft Office, Google Drive and Evernote).
• Travel and navigation apps provide navigation, maps, public transport
information, hotel booking and other travel services. (Google Maps, Airbnb and
TripAdvisor)

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5. Competitor analysis
There is a large number of mobile apps and also navigation or some country maps and for
each respective country there is some app with maps and navigation. However, the biggest
one is Google Maps. It is a so-called monopoly where it is the largest and perhaps the most
comprehensive app.

Google Maps is one of the company's biggest competitors. Google Maps falls under the
global Google brand. Google is a global brand based in the US. The company with 25
years of experience has become very popular all over the world with everyone now using
Google on a daily basis. It is a search engine for websites, image, videos and many more. It
concentrates on Internet Services Software, Hardware. The software services include
Gmail, Google Chrome, Google translator, Google Drive, Google Analytics and lots of
other features. Such features include Google Maps it is one of the tools to use to search
location, places of interest, appearance of places and also Google Street View. Google
Maps is a way to quickly find a search term that will be followed or found the way to the
destination by different ways by car, on foot, public transport or by bike. It offers location
sharing, links to GPS, photos, traffic status and more. As probably an important and
connected feature is the information about almost every point such as gastronomic
establishments, accommodation facilities, local businesses, additional services, shops and a
big bunch of other points.

5.1 Swot analýza

Strengths Weaknesses
World Brand Big content a lot of bugs
In the user's subconscious Inaccuracy in updated
information

Opportunities Threats
Specify small and unknown Smaller on-premises
places applications
3D maps Technical difficulties

Tabele 1: SWOT analysis

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6. Business strategies

6.1 Desired image and market positioning

Part of the brand image is a logo that is simple easy to remember. Attractive which clearly
says what the application is and what it is about. However, the perception of the brand by
the environment is important. There will be an emphasis on ecology, openness to users and
ease of use. A thriving landscape is important to support the countryside and keep it safe. It
is important to stand behind your vision and mission when building a brand, whilst
working with users and also with local residents and businesses.

Picture 1: Logo

The market position is obvious that now in the era of IT technology evolution, it is
challenging to build a strong brand with its image and its principles, so it is good to keep
an eye on the competitors like following their product and development. Watching the
market and its evolution is fast, so it is important to go and evolve with the market as fast
and be as competitive as possible. As a new app in such a small segment, it is important to
embed yourself and get into the subconscious of the locals and tourists that come with
large numbers and explore the incredible beauty.

6.2 Company goals and objectives

The company aims to get into the subconscious of the locals, foreign tourists, Portuguese
tourists and others. However, each of the objectives below will be defined using the
SMART method.

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6.2.1 Operating

Within 6 months to launch the app, popularity of 5000 users. However, this target is for the
beginning of use. After that, the retirement goal will be to update the information in the
app weekly and fix bugs, all in another 6 months.

6.2.2 Financial

The initial goal is to engage the customer with the help of advertisement among the people
what is in the right place in the time span of 3 months. With each additional month
increase the profit by 5%. This would be beneficial to develop and reinvest it.

6.2.3 Others

The marketing target is 3 months for active promotion on the site in different directions as
below. The goal is to motivate 5% of the island population to download and actively use it.
Definition of engaging 20 local businesses and venues in our application and in working
with us.

6.3 SWOT analysis

Strengths Weaknesses
New fresh app New market
Supporting local entrepreneurs Demanding on constantly
and businesses updated information
Promoting local culture

Opportunities Threats
New places, new users New app
Company development Incorrect information from
Force younger generations into a suppliers (weather)
new project

Tabele 2: SWOT analysis 2

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6.3.1 Strengths

Strengths definitely include the fact that it's a new app that will attract potential users. New
to the market are always best when a user downloads and then it is important to retain its
favorability. Another strength is the support of local entrepreneurs and business. When
after completing a task one gets a discount code with a discount to buy from one heaven or
another. This develops and supports the internal economy of the state. Elevated points on
maps and certain points will lead to the recognition of local culture and its amplification
and dissemination.

6.3.2 Weaknesses

The weakness is that it is entering a new market that it does not know so well. It's
uncertainty and I can experience things that become unexpected and that is incompleteness
of information. Another weakness is the need to constantly update information, photos
Working closely with the local government, locals and users.

6.3.3 Opportunities

Opportunities include expansion to new places, locations and landmarks. There are many
unknown places in the world and there is an opportunity for quality development. Such a
first place is Madeira, which has a great myriad of places and opportunities. Expanding to
new users is the biggest opportunity and goal. The development of the company must be
stated as achieving short and long term goals, regardless of the internal and external factors
affecting the company. Travelling is the best leisure activity. Everyone travels and a large
number of tourists and young people travel in Madeira. It is a great opportunity to welcome
the younger generation into your team and show them the workings of such a society and
what is behind it all. However, for the development of the different places on the map and
the creation of trips, it is important to verify information or find information, and this is
how we attract the young generation to be our co-creators in society.

6.3.4 Threats

As a strength is a new app, but also another new similar app may enter the market that acts
as a direct threat to society. The threat is that it can overwhelm our users. Another threat is
incorrect information from suppliers. In this case, it would be a wrong weather forecast or
other wrong moments that can strongly affect user satisfaction.

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7. Competitive strategies
Competition is the biggest danger for any company. That is why it is important to be
prepared to have a strategy. The chosen strategy is uniqueness and cooperation with the
user and local forces. Within that, the competition is not in such close cooperation with the
local. Also, this application is aimed to motivate to use and finish some discounts with
local business.

7.1 Cost leadership

The use of modern technology is the basis for the company when the user needs a mobile
app, the courage to go on a trip and the motivation to reach new goals and peaks. With the
help of simple setup, the user sets the trip according to their needs and expectations. For
better performance, it is important to invest from the brand and continuously develop each
feature and make new connections. By analyzing the data, it will be possible to improve
other features and the development and motivation of employees and much more.

7.2 Diferenciace

Odlišení od konkurence je jasná jednoduchodst používání, příjemný vzhled, flexibilita

nastavovaní. Především se bude jednat o spolupráci a rozvoj vnitřní ekonomiky v rámci
spoluprace s podniky a podnikately, kdy oni předají nějaky slevy, poukazy nebo podobné a
uživatelé po zvladnuté cíli budou moci se odměnit. Také je to rozvoj turistiky a rozvoj a
přitažení nových turistů.

7.3 Focus

Focus is the direction that is given, which has already been mentioned above. However, the
application as it is multifaceted and is mainly concerned with B2C collaboration. When
closely related to the user, the application is used by individuals. B2B collaboration would
be in the context of long term collaboration and most importantly it is a long term focus.

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8. Marketing strategy

8.1 Target market

Our target group is active tourists who like nature, hiking, etc. It will be mainly
individuals, couples, families with children or groups of friends who have come to Madeira
to discover the beauty of nature and mountains. Our application does not target only a
certain age group. It is suitable for all ages. Anyone can set the difficulty of the route they
choose in the app, according to their fitness and general health.

The main principle for using our app is that the person or group must know how to use a
mobile device which must have iOS and Android platform, using modern technology and
navigation features, which are an important part for creating and following the given
routes.

8.1.1 Benefits for users

Users using our mobile app will find it easier to plan their overall hiking routes according
to their preferences. They will provide data on the length of the routes, overall difficulty,
duration, elevation profile and various interesting information.

Another benefit that users will have is the navigation and tracking of the route that hikers
will take. The application will have built-in navigation systems with accurate map. Due to
which the visitors will not have any problem in navigating the terrain.

The app will provide important information about the route and the attractions that await
tourists along the routes. Another important feature will be providing information about the
route in relation to the current situation of the routes. It will indicate to the visitors whether
the route is open for making the planned trip or not.

The app will also provide users with safety features about weather conditions. In case of
emergencies or impending dangerous natural situations, users will receive alerts.

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8.1.2 Demographic profile

• Age group: The application is intended for all ages. It is not limited by age. But
according to the analysis, we could assume that active tourists are mainly people
with age range of 21 to 60 years. This age group is looking for hiking and
adventure.
• Gender: The app will not differentiate for which gender it will provide
information. It is suitable for any gender.
• Family size.
• Occupation. People who are managers, entrepreneurs or students.

8.1.3 Other customer characteristics

Experience: some users are experienced hikers and will therefore have higher expectations
with the app. There is a possibility that they will expect higher functionality.

Language: The app should have different options to set world languages. Tourists in
Madeira are from different parts of the country, therefore creating an app with different
language options.

8.2 Motivating customers to buy

The app provides customers with an easy way to plan island tours. Thanks to the app,
people don't have to spend a lot of time figuring out itineraries they know nothing about in
the beginning. Searching for routes on maps is more difficult to navigate and by using the
app, customers don't have to worry and waste time. The app provides good information
about the routes, their length, difficulty, elevation profile.

Customers get points for each successful hike. After gaining a certain amount of points,
they can get rewards in the form of dolphin watching vouchers or various discounts on
surfing. They can also choose some company merch such as t-shirts with the logo.

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8.3 Market size and trends

According to the survey, the number of visitors to Madeira Island is increasing on a

monthly basis. According to the table showing the number of tourists in thousands, we can
assess the market with regard to tourists from different parts of the country. Accordingly,
we can evaluate whether our application will be used according to the interests of tourists.
A trending app should be fun, so we try to make it fun and motivating at the same time.
That's why the app offers points for completing a route, for which customers can choose a
reward.

8.3.1 How big is the market?

The tourist app market in Madeira is for the most part small at the moment. It is influenced
by the number of tourists, their interests and needs. In 2022, 1.4 million tourists were
recorded to have registered and it is expected that these numbers will increase rapidly in
the coming years. Which makes such a tourist route planning app a very potential product
for visitors.

After researching the market, we can say. that there are several apps with similar themes
but despite being different.

8.3.2 Is the market growing or shrinking? How fast?

According to the survey, we can report that the market is growing steadily, thanks to
several factors. Such as the high annual increase in tourists and thus the demand for
services, applications that will make it easier for them to travel and explore Madeira's
beauty. Currently, there is still not such a large number of apps on the market.

8.4 Personal sales efforts

This product will be sold primarily online like other mobile apps. Overall, personal selling
has some advantages of interaction with the customer, where the staff can give them all the
information about the product and the customer will be able to decide, after considering all
the information given, whether to at least try it for a period of time.

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Customer support can be included in personal selling. When our company provides quality
customer support through phone calls, emails or online chat, customers will be satisfied.

8.4.1 How big is the market?

Approximately 1.4 million tourists visit Madeira every year and 500,000 of these visitors
arrive in Funchal by boat. Every year the number of tourists in Madeira increases.
The overall competition in the tourist app market is not that high. These are only a few
apps that are interested in Madeira. But these apps do not have the same focus as ours. The
apps deal with providing itineraries with proper information.

8.4.2 Sales force size, recruitment, training

As we focus mainly on online promotion and selling the app using online platforms. We
will not need our own in-person sales.

8.4.3 Average sales volume

Average sales volume will vary from month to month due to seasonality. To give you an
idea, we could imagine the following averages:
Tariff Price (EUR) Expected Sales per month

1 day 1 41

1 week 5 58

1 month 20 16
Half year 50 8

Year 70 13

Unlimited 90 17
Tabele 3: Tariff price

We take into account that low interest will be expected in the first year due to unfamiliarity
with the application. We also expect low profits to be prepared for the worst.

8.5 Advertising and promotion

According to the research of our target market, it is a good idea to use online advertising,
where we would use digital platforms such as social networks (Facebook, Instagram),
various tourist websites.

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We will also include Google ads on tourist websites to target exactly people who are
interested in Madeira, touristic things, outdoor activities and similar interests. Where the
qualities of the app with a professional design will be particularly highlighted.

We will also use SEO optimization for our relevancy and better internet searches. Where
keywords will be used they will make our app and future e-shop appear in priority when
our potential customers search for Madeira related information or routes.

We will also have partnerships with local travel agencies, tourist information centres and
hotels where they could promote our app. An important part of the advertising is the
customers themselves, it is good for customers to give testimonials about the app, on
accessible platforms such as the App Store, Google Play or even on travel websites. This is
because customers put their trust mainly in testimonials and consider buying accordingly.
In the modern promotion in recent years, we would also use the promotion of our app
through influencers and bloggers who focus on travel or for example the instagram
accounts of madeira which are followed by thousands of people. When a collaboration is
established, potential visitors would appreciate knowing about the app, which saves them a
lot of time when putting together itineraries.

8.5.1 Frequency of use

Due to the great interest of tourists in Madeira all year round. Because the island of
Madeira is favourable to visit all year round. The frequency of the advertisements must be
adapted. This means that the ads on our application will be set all year round. The idea is
that the ads will be particularly intense from the end of March through the summer.

8.5.2 Plans to create publicity

As mentioned in the advertising and promotion section, the plan is that we will be working
with infuencers and bloggers who are mainly interested in travel, as they are followed by
people who are interested in travel and will be able to use our app.

Through our customer reviews we will get reviews and feedback on online platforms like
Apple App Store or Google Play Store. This direction is important as customers give a lot
of importance to reviews, which is the basis for them to decide whether to buy the app or
not.

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8.6 Price

Tariff Price (EUR) Expected Sales Quantity/year Revenue (EUR)

1 day 1 500 500
1 week 5 700 3 500
1 month 20 200 4 000
Half year 50 100 5 000
Year 70 150 10 500
Unlimited 90 200 18 000
Tabele 4: Price

According to calculations where we have taken into account all our tariffs and the
assumption of selling at a certain price. Our total revenue is calculated to be EUR 41,500.
The table below shows a rough estimate of the sales of each tariff at the relevant price and
a calculation of the revenue from all tariffs, estimated for the year.
First year costs:
• Application development: 30 000 EUR
• Design: 10 000 EUR
• Infrastructure and hosting: 5 000 EUR per year
• Marketing and promotion: 10% of profits
• Support and maintenance: 10% of profits
• Other costs (office space, insurance, legal services…): 10 000 EUR per year

Other year costs:

• Marketing and promotion: 10% of profits
• Support and maintenance: 10% of profits
• Infrastructure and hosting 5 000 EUR per year
• Other costs: 10 000 EUR per year

Fixed cost
Infrastructure and hosting 5 000 EUR
Insurance, legal services 3 000 EUR
Rent (electricity, water) 7 000 EUR
Tabele 5: Fixed cost

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 Variable costs
Employee wages 10 % of profits
Tabele 6:Variable cost

According to the cost-benefit calculations, the first year is expected to be a loss of EUR -
13,500, due to the high investment in the quality development of the application, which is
financially highly set in all directions. Since we are concerned about the quality of the
application development, we will have to expect a loss for the first year.

In the following years, the costs will be reduced by a one-off expenditure, namely the
development of the application. Therefore, the costs will not be so high and it will move
towards profitability. After the profit is established, a percentage will be deducted to pay
our team. Which depends on the final profit.

8.6.1 Image on the market

It is important for our app that customers perceive the app as a reliable one that they can
rely on when they need to find certain routes and are not sure, for example, how to get
there. They will also be able to use it to find bus routes. The aim is to keep the app up to
date with new information and news. Its design will reflect the beauty of Madeira. The
design will not be unnecessarily striking, but will be simple, quality and professional.

It is important that customers know they are well looked after and feel important by what
the app can do for them.

Overall, it is important that the app is perceived by customers as a professional tourism

app, providing quality information and great itineraries that provide correct and up-to-date
information on the overall situation.

8.6.2 Price comparison with competitors

Our app is the only one on the market that focuses on providing routes with detailed
information that is also up-to-date. It offers bus compatibility options. Such apps do not
exist in the current market, which is why our app is unique. Other similar apps do not
charge any fees, as it is only basic information about Madeira that is available anywhere on
the internet and it would not be profitable to pay for it.

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There is only one app, which is chargeable, as it also has routes created with the necessary
information. This app is called WalkMe. And it is charged at 9EUR for the total service it
offers.

Our app will provide quality and up-to-date information on what's happening in Madeira.
Different itinerary packages are offered. Which are also well developed. That's why you
will pay for this app.

8.6.3 Discounts

We will receive discount coupons from our partners with whom we work. Through
discounts, we can motivate customers to purchase a subscription to our app. This will also
build more credibility and loyalty.

Customers choosing the desired subscription plan will receive a discount coupon from our
partners after payment, so that they can take the opportunity to try other activities in
Madeira. Discounts will include a discount on dolphin watching or a discount on a surfing
course. There will also be discounts on car rental, this discount would be used by all
customers who would like to see other places they will be staying unconditionally. Thanks
to these discounts they will be able to enjoy all the adventures provided by Madeira.

8.7 Distribution channels

8.7.1 Distribution channels used

The best distribution channel will be using digital platforms such as Google Play Store for
mobile phones that have android software. Also on the Apple App Store platform which is
for iOS software. These platforms are where customers can buy the app and have it ready
on their mobile just click and use.

By partnering with websites, travel agencies and other companies, for example, our app
will be displayed on their websites. Furthermore, partner companies will recommend it
when contacting a customer.

The use of social media will be an opportunity to spread awareness of our app among the
general public using Facebook, Instagram, YouTube.

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8.7.2 Market test results

Survey on the use and preference of tourist apps

Age group:
• 18-24 years: 6
• 25-34 years: 2
• 35-44 years: 1
• 45-54 years: 1
• 55 years and over: 0

Gender:
• Male: 4
• Women: 6

Frequency of use of tourism apps:

• Daily: 0
• Several times a week: 3
• Once a week: 2
• Less than once a week: 5

Reasons for using tourism apps:

• Getting information about interesting places and monuments: 3
• Getting directions: 4
• Navigation and GPS: 3
• Getting up-to-date weather information: 0
• Getting reviews and ratings: 0
• ppreciating discounts, offers and promotions: 0

What factors would motivate you to use a tourism app?

• easy navigation
• reliable information
• create a route

8.7.3 Feedback from customers

We had the opportunity to discuss our app with potential customers. According to the
survey, all of the respondents would use our app because they would not know how to plan
their own hiking routes or the app would help them choose the best hiking routes or help
them discover new places. Respondents also pointed out the price for one day, which is 1
euro, a price most respondents were pleasantly surprised by.

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Overall, according to the results, we can say that our app has the potential to be used and
satisfy potential customers.

8.8 Competitive advantage and sustainability

The competitive advantage of our app is definitely the wide database of tourist data that is
maintained by our employees. Linked to this is the up-to-date nature of all routes in the
app, which provides information about safety on the routes or imminent weather hazards.
For some tourists our app can be like a complete sightseeing guide to the island.

The app will promote about eco-friendly transport options such as regular buses or other
bus transport, cycling, hiking.

As our app is installed on mobile devices, it is also environment friendly, as there is no

printing of excess paper. And thus it protects the deforestation of forests.

Since there is a great interest in Madeira in recent years and with it the overcrowding of
many tourist places what is not suitable for the natural environment. The application can
recommend some less important tourist routes that will not lead to overcrowding.

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9. Description of the management team
Product Manager

He is responsible for formulating the application development strategy, researching the

market and customer needs, planning new features and enhancements to the application.
He works closely with programmers and the marketing team.

The Past

This manager graduated from the University of Economics in Prague, where he studied
digital marketing for 5 years. He participated in a major SVOČ competition where he
presented a marketing strategy to an engineering company. After graduating from college,
he started working for a marketing agency where his skills and strategic thinking took him
to the level of department head. He is currently working for our company.

Marketing Manager

He is responsible for all marketing and operations of the company, including app
promotion, branding, digital marketing strategy. He has experience in marketing and
communications.

The Past

Our employee received her degree in computer science from Charles University in Prague.
She has used her skills in several multinational companies. As a software engineer, she
was involved in the development and software solution of applications in the corporate
environment. Later, she defended her certification as a product manager.

Programmer

• They collaborate with other team members and their ability to communicate and
work together is key.
• creating documentation, data and object structures and defining their links,
programming in the appropriate programming language based on analytical
documentation

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Organizer of hikes
• compiling programs
• knowledge of the terrain
• good organizational skills

Marketer
The marketer is responsible for organizing, monitoring and evaluating online advertising
campaigns. His/her task is to prepare an evaluation of the effectiveness of these campaigns
and to create an advertising and promotion plan. He is also involved in creating conceptual
designs for promotional campaigns and maintaining related documentation.

E-shop manager
• monitoring trends
• checking goods in stock and their orders
• communication with customers

Finance manager
The finance manager takes charge of receiving accounting data and checks it for formal
correctness and compliance with legal regulations. He/she provides methodological
assistance related to accounting and is responsible for the correctness of the recommended
procedures in accordance with the applicable legislation.

Online communication
The online communication specialist focuses on analysing client requirements and
designing optimised processes that are subsequently implemented. Actively participates in
projects based on various proposals

Designer
• following art trends
• cooperation in the implementation of proposals in the stage of development and
production
• ensuring the use of new and effective materials
• control of compliance with technological procedures

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 • cooperation in determining the technical conditions of production
• Communication with a customer
• maintaining relevant documentation

Future management team additions

Technical Manager

We will be looking for an experienced Technical Director who will be responsible for the
development and technical side of our application. This team member will be responsible
for technology strategy, development processes and infrastructure.

Board of Directors

The company's board of directors are people who have extensive experience in strategic
planning. They have a wealth of experience and knowledge in technology, travel industry
and entrepreneurship. Our team will consist of managers of our company. Product
manager, marketing manager. Following the selection process for the position of Technical
Manager, this manager will also become part of the Board of Directors.

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10. Operational plan
The summary of the business plan is the development of tourism and local entrepreneurs.
The target customers in Madeira are young people, students, adults and not only. People
who like traveling and an active way of life, especially customers with a need for
inspiration for traveling. Navigation and orientation in Madeira are important for tourists
and even locals, especially if they do not know the environment well. Applications that
will help them find their way to their destinations, safely move around the island and use
the transport infrastructure. The global competition is great, but in Madeira, it is smaller.
The growth prospects of the market are high. Among the main competitors is Google
Maps. The advantage is the global brand in the user's subconscious, and the disadvantage
is often errors in the inaccuracy of information. The product is the application itself, which
offers navigation, and inspiration for individual days according to preferences, and then a
discount code will be obtained for meeting the goals. The risk is in active use by users. It is
important to invest in your development. The long-term strategy is development, not only
in Madeira.

10.1 Chosen form of ownership and justification

The chosen form is a limited liability company. Shareholders are not personal guarantors
of the company's debts and liabilities. S.r.o. provides some flexibility in the organizational
structure and management of the company. S.r.o. can more easily obtain financing than
individuals. Establishing an s.r.o. can create a professional and serious image of the
company. S.r.o. may have tax advantages and tax optimization options in some
jurisdictions.

10.2 Company structure (organizational chart)

It has 3 partners who have a share in the company and share profits and losses according to
their capital contributions. The General Assembly of Shareholders is the supreme body of
the company. At the General Assembly, the shareholders approve an important decision
concerning the company. The statutory body is responsible for the management and
administration of the company. It is the board of directors, that represents the company vis-
à-vis third parties and has the power to make decisions. It employs employees who fulfil
various roles and responsibilities within the company. They are assigned differently to

37
different departments or functions according to the needs of the company. The company is
to work with external partners such as local businesses and local entrepreneurs.

10.3 Decision-making power

The General Meeting of shareholders has the power to decide on the approval of financial
statements, amendments to the Articles of Association, appointment and dismissal of
statutory bodies, approval of investments, etc. The statutory body has the power to decide
on routine matters relating to the day-to-day operation of the company.

10.4 Benefits and Reward/Compensation Packages

The basic wage for each employee for their work. It is influencing his skills, experience
and position as an employee. Employees will be rewarded for achieving certain goals,
outstanding performance or for working in challenging conditions, as a bonus. They will
also have employee benefits such as health insurance, supplementary pension insurance,
company mobile phones, contributions to recreational activities, education, etc. Some
employees of the company will be offered a profit share as a form of remuneration. But
also career growth to higher positions. Working hours for employees will be flexible
working hours, with the possibility of a home office, remote work, etc.

10.5 Personnel plans

The total number of employees is 10 their skills depend on their position, and it returns
their IT positions, application creation, organization or accounting and so on. Recruitment
will be arranged according to the needs of vacancies. The selection of employees will be
carried out according to the fulfilled requirements. Planning and implementation of
employee development programs, such as training and educational activities. Among the
motivation and rewards are benefits, education, team building and many others.
Maintaining a friendly atmosphere and trying to motivate employees to maintain a work-
life balance.

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11. Resources
• https://psychologieprokazdeho.cz/vize-a-mise-v-podniku/
• https://www.wiener.cz/google-ads/
• https://pixelfield.cz/propagace-mobilnich-aplikaci/
• https://pixelfield.cz/blog/vyvoj-aplikace-cena/
• https://webfusion.cz/kolik-stoji-vyvoj-mobilni-aplikace-v-roce-2023/
• https://creativehandles.com/cs/blogove-prispevky/123/kolik-stoji-vyvoj-
aplikace-a-na-cem-cena-zavisi
• https://www.businessinfo.cz/navody/autorske-pravo-ppbi/2#autorske-dilo
• https://is.muni.cz/elportal/a_zakon/
• https://www.jaknainternet.cz/page/1191/autorska-prava/
• https://core.ac.uk/download/pdf/288166166.pdf
• https://theses.cz/id/lfktud/21835892
• https://dspace5.zcu.cz/bitstream/11025/40154/1/Bakalarska%20prace%20-
%20Radek%20Sekyra.pdf
• https://kariera.vut.cz/zaklady-prava-dusevniho-vlastnictvi-autorske-pravo-
prumyslova-prava-patenty-ochranne-znamky-apod__trashed/

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12. List of tables and figures
Tabele 1: SWOT analysis........................................................................................... 19
Tabele 2: SWOT analysis 2........................................................................................ 21
Tabele 3: Tariff price ................................................................................................. 27
Tabele 4: Price............................................................................................................ 29
Tabele 5: Fixed cost ................................................................................................... 29
Tabele 6:Variable cost................................................................................................ 30

Picture 1: Logo ........................................................................................................... 20

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