Satellite Communications Business Plan


Satellite Communications Business Plan



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

  1. 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.
  2. 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.
  3. 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.
  4. 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

  1. Inmarsat Airtime Usage:
  2. Expand the VSAT market.
  3. Africa marketing should be boosted.
  4. High-quality outsourcing services.
  • Provide better value-added service to the end user
  • Maintain and improve customer services.

    • 1.3 Objectives

    1. In the third year, sales grew to over $20 million
    2. Maintain a gross margin of at least 30% and increase it to the maximum level.
    3. Service, support, or training to be sold for $4 million by Year 2.
    4. Increase inventory turnover to six rotations next year, seven in the second year and eight in the third.

    Integrated Communications Business Plan


    Integrated Communications Business Plan


    Today’s world is defined by the term “Information Age.” All businesses, small and large, need efficient and effective business communication solutions to be able to satisfy customer needs and gain a competitive advantage. No matter how large or small a company may be, it is clear that even with the best financing, resources, talents, and experience, they cannot succeed without a solid communication system that facilitates smooth transaction sealing. Botswana’s success as a global market leader in regional and international integration depends on its communications infrastructure. It must develop a cost-effective, efficient, and technologically sophisticated communication infrastructure. As the economies of many countries become more sophisticated and information-intensive, it is becoming even more important to establish a network that allows decision-makers access to accurate and timely data in order to make informed decisions and seal transactions.

    We are close to capturing a lucrative market in an industry that is rapidly growing. Aero Technologies can capitalize on the increasing number of entrepreneurs and fierce competition within the existing market. We will position our services and products carefully. These services/products will be of exceptional quality to ensure client satisfaction and will be supported by outstanding customer service. Aero Technologies will provide the knowledge and expertise necessary for a market-oriented company to maintain and develop a strong communications system. We intend to provide a number of necessary services the business community and to the public. Initial plans call for five major lines of services to be introduced, including Multimedia, Call Centre facility and Data Communications and IT. Financial Services and Knowledge Consulting are also part of the plan.

    We recognize that to succeed, we must be flexible and responsive to our clients. This will allow us to delight them by giving them what they need, when and where they want it, before the competition. The company will accomplish this goal by adopting a customer-centric strategy that places customer needs first. This requires both skill and depth, as well time spent on understanding the needs of customers. Aero Technologies will view the provision of value-added services over the entire scope of our customers’ requirements as not only essential, but as a competitive advantage which the company protects as a key asset; from service concept to service provision, the intention will be to ensure that every policy and procedure, system and process has the objective of improving the flexibility and response of the whole company. Interaction is key to achieving the full potential of a project. This includes marketing as a strategic weapon.

    Once the needs and processes are understood and described, leading edge products and best-of-industry skills will be applied to design and develop a fitting solution to satisfy the need and enable the client’s business in the most cost effective way.

    Our marketing strategy will be based mainly on ensuring customers know what need the service(s) is able to fulfill, and making the right service and information available to the right target client. Our market penetration strategy will make sure that our services are known and well-respected in our industry. Our marketing strategy will convey the quality and satisfaction of our services in every photograph, every promotion, as well as every publication. Our promotional strategy will include traditional advertising as well as breakfast seminars, events, Internet market, personal selling and direct marketing. Further details are included in this section.

    We will correctly build our team of project managers. We need the right people in the right place at the right time if we are to ensure optimum growth. We plan to develop our employees so that we can both grow and benefit from our relationship with each other.

    It is planned to partner with NNN Limited, which is a QQQ-registered company, to provide IT and financial consulting services to the industries involved in the application and usage of new technologies, such as wireless application protocol (WAP) and data communication, to enable cellular telecommunications.

    We do not believe that we can be trusted with our data.

    Our goal is not to simply market and sell the service. We want to ensure that our client’s satisfaction and ease of communication are met. This will help us to maintain a good corporate image. It should be noted, however, that timing and information delivery will be of paramount importance in the project’s introduction to the market. We are also aware that it is not easy to enter such a market, especially as it is still a new concept. This is where the need to aggressively market the idea to individuals and organizations through various channels. Therefore, the goal is to leverage the technical and financial know-how from technical partners to help us achieve our business objectives.

    NOTE: All currency amounts in this plan are expressed using Botswananpula [P].

    1.1 Objectives

    Our business strategy will revolve around the need to provide quality service and products to our various target clients, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional telemarketing, sales and technical team and the provision of good quality custom-designed services, catering for the clients’ particular needs.

    With time our marketing campaign will increase the knowledge of our services to the various market segments we shall be targeting. This is particularly so with organizations looking at establishing a competitive advantage(s) on the market due to increased competition, hence providing them with the opportunity to focus on their core activities whilst procuring increased business from new and existing customers. Professionally designed marketing material should reflect our brand and image. We will position ourselves as a high-quality provider of total communications solutions. We will establish good relations with all the stakeholders.

    These are our objectives.

    • Continuously provide professional quality services on time and on budget.
    • Create a follow-up strategy with all our clients to measure performance.
    • Incorporate and maintain a quality policy and control system.
    • To continuously formalize and measure cross-functional working communication so as to ensure that the various departments work harmoniously towards attainment of company objectives.
    • To instill a culture that is constantly improving in order to surpass customer satisfaction standards and improve efficiency.
    • We are committed fully to supporting growth, development and economic prosperity.

    1.2 Mission

    Aero Technologies, Ltd. is a marketing-oriented company that offers a reliable, quality alternative to internal resources for local and regional business development, market development, channel development, and other activities. A true alternative to in-house resources offers a very high level of practical experience, know-how, contacts, and confidentiality. Aero Technologies’s communication methods are more professional and risk-free than those of its clients who work in-house. Aero Technologies must keep its financials in balance, charge reasonable rates for its services, deliver better value to its customers, and maintain a healthy cash flow. Initial focus will be development in the regional markets, or for international clients in Botswana. Aero Technologies is also an excellent place to work, a professional environment that is challenging, rewarding, creative, and respectful of ideas and individuals. Aero Technologies offers its customers excellent value and its employees fair compensation.

    Internally we intend to create and nurture a healthy, creative, respectful and enjoyable office environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the service we provide. In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future. We aim to make a fair and responsible profit that will keep the company financially sound for both the short- and long-term, as well as to compensate investors for their money and risk.

    1.3 Keys for Success

    These are the keys to your project’s success

    #8217 is going to succeed because it will use effective market segmentation by identifying several niche markets as well as implementation strategies. Along these lines the company intends to implement personal selling and direct marketing strategies to the target markets. These are the key success elements.

    1. High quality service to fulfill the promise. Confidentiality, reliability, and trustworthiness through providing uncompromising services. We have the most up-to-date technology, software and staff to meet the above.
    2. Quick response to clients’ orders: We can’t afford to delay clients for any reason. This will negatively impact our reputation and image, as well as our future business. Hence we need to be continually communicating with the client ensuring we provide needs-based solutions.
    3. Skill level and depth of understanding: In light of the nature and relative youth of the services we offer, it will be crucial that our personnel have the required skill level and depth of knowledge in order to determine the delivery of the service(s).
    4. Marketing knowledge: It is important to market your business aggressively in a volatile market to ensure that our services and products are always top of mind for our clients and potential customers. Companies looking to enter our market will find this a temporary deterrent. Advertising will be a competitive advantage.
    5. Leveraging a large pool expertise: It will be a tremendous benefit to the company’s many alliances with technological partners, considering the intellectual and design capabilities these partners have in the areas of system integration, implementation, execution and lifecycle support, understanding, and the application of new technologies. This could be a significant differentiator in the market.