Introduction
Blue Sky Satellite Communications CC (Blue Sky), is a provider of satellite services and communications solutions in Africa. Its operations are based in South Africa. The company offers both terminals and satellite phones, as well as airtime packages that can be customized to meet the needs of each client.
Blue Sky Satellite Communications will achieve the following goals by focusing on its strengths and its key customers and the underlying values that they need.
This business plan is the key to success. It renews our vision and strategic focus of adding value to our target market segments: the corporate business and high-end home office users, in our horizontal market. It also contains a step by step plan to increase our sales, gross profit, and profitability.
The Company
In 1996, Pedro M G Camacho started “Hyper Parts Com Division” after purchasing a satellite phone from COMSAT. He was so impressed with its abilities and potential that he decided to start his own satellite communications company. The firm was renamed Blue Sky Satellite Communications in 1998. It has been in legal trade for two years and continues to grow. Pedro saw Inmarsat a niche marketplace and reacted well. VSAT is the next logical step for the development in the satellite communications sector.
Blue Sky Satellite Communications was founded on the belief that management of satellite technology will be the most important step towards communication since the invention the telephone. We have been positioned at the forefront of Africa’s most disconnected continent, Africa, as a service provider for Inmarsat/VSAT services. Our goal is to establish as many connections in Africa as possible in the shortest time. This can only be done by partnering local telecommunications firms, private or state-run.
We will concentrate on the following keys for success in order to realize our goals: increase Inmarsat Airtime usage; develop the VSAT Market, increase marketing efforts in Africa; outsource quality services; introduce better value-added to the end user; and maintain and grow customer services.
Blue Sky Satellite Communications can be found in Bedfordview (South Africa). It is located just 15 minutes drive from Johanessburg International Airport.
The company currently has 4 employees, with 1 director. The company intends to grow the company by at least 20 employees in the near future. Sales personnel, customer service which is available 24-7 and technical support will all be added. Marketing and promotions are outsourced to specialized firms.
Our product is sourced from various Land Earth Stations as well as different equipment manufacturers. In most cases, our relationship is direct with the manufacturer.
The Market
Our products have been a hot commodity due to increased internet usage for sending and receiving information. We expect broadband to continue to grow exponentially. More people and companies will invest in faster communications systems to increase productivity and improve their bottom lines.
The satellite services market is worth an estimated $12 billion in Year 1 for the African and Middle east markets, and there is a projected growth of 20% per year. Blue Sky hopes to tap into this market and will be able capture a 10%-20% market share.
The projected market growth for the Telecom’s industry has been one of the most highlighted aspects of new business in the marketplace today. With the coming of age of the new broadband services and the privatization of many Telecom companies (which were previously run by the government), we see that growth is going to far surpass any projection that has been made in the past.
Two types of hardware will be available to our customers so that they can become more productive. Inmarsat products, such as the Mini-M Sat Phone and the M4 Global Area Network terminal, are poised to maintain a growth pattern over the next 24 months. Re-launches of Iridium products will have a similar impact.
the market, and we are in good position to take advantage of this opportunity. The VSAT market has just appeared last year, and the sentiment is that it will grow even further in Year 1 and Year 2.
Blue Sky has many local competitors. We have a number of local competitors that we can rely on to provide better customer service. We learn from their mistakes, and have kept a good relationship with them.These companies are : African Satellite Corporation, Pertec International, Grintek Telecom, and Station Africa. Blue Sky has spent a lot of time focusing on the future trends within the industry in order compete effectively with these companies. This will allow it to position itself to be the market leader in this sector. These are some of the most important trends:
All customers need to be given maximum attention by strong customer support in order to keep their recurring monthly income high. Many of the quick service solutions will be provided by the customer service center or the Internet interactive chat.
The most obvious and important trend in the market is declining prices. This has been true over the years, but it seems that this trend is accelerating. We see major suppliers and manufacturers putting together systems of incredible specifications, with more power, speed, and bandwidth.
Another trend is growing connectivity. Everyone wants to connect to the Internet. Every small business needs a LAN. Many small offices want their network connected to the Internet. Blue Sky must offer customized service plans with all features and at a low price.
The company is focusing on the small and large businesses that need a wide variety of services packages that have lower costs per airtime than other competitors.
Strategy Implementation
- Blue Sky focuses on customer service and support. We will keep in touch with our clients on a regular basis to provide important information about the service or product that has been delivered.
- Our goal is to establish a long-term relationship. Recurring income is our aim. We need to keep as many customers as possible. This means that we have to have constant contact with our clients. To keep our clients informed about all the happenings in the market, we send out emails and newsletters.
- Blue Sky can be successful by focusing on certain markets. As we have been in the business for many years, we understand the constant changes in requirements, and, due to a lean management structure, we are able to make the required decisions on new markets rather quickly and efficiently. This then lends itself to have the necessary focus on the market segment as its’ needs change.
- Stand out from the rest. We aim to be Africa’s most trusted provider of satellite services. We will provide rural telephony, pre-paid services, and be involved in education for our users. We will keep our promises and do everything we can to help those in need.
Financial Projections
The company expects to earn $62.2 million by year three with a gross margin of 31.7%. Controlled SG&A costs will create a very strong net margin. In order to be able to reach Africa’s regional markets, the company will invest $6.2 Million in additional long-term assets.
1.1 Mission
Blue Sky Satellite Communications was founded on the belief that management of satellite technology will be the most important step towards communication since the invention the telephone. As an Inmarsat service provider and VSAT service provider, we are at the forefront in Africa, which is the most disconnected continent in the world. Our goal is to create as many links in Africa in the shortest space of time. This can be done by partnering with local telecommunications companies, whether they are private or public. In so doing, we can offer all our customers the most legal route to high quality communication wherever they are.
Blue Sky Satellite Communications brings satellite communications down to Earth.
1.2 Keys to Success
- Inmarsat Airtime Usage:
- Expand the VSAT market.
- Africa marketing should be boosted.
- High-quality outsourcing services.
1.3 Objectives
- In the third year, sales grew to over $20 million
- Maintain a gross margin of at least 30% and increase it to the maximum level.
- Service, support, or training to be sold for $4 million by Year 2.
- Increase inventory turnover to six rotations next year, seven in the second year and eight in the third.
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