The intent for this concern program to analyze the feasibleness to set up a nomadic phone salesroom in Abu Dhabi City, the capital of United Arab Emirates. The salesroom will offer “ Nokia ” Mobile phones as chief merchandise. Along with that we will offer a broad scope of accoutrements and relevant spare parts.

MyPhone provides both nomadic phones merchandises and services to do them utile to private users. We are particularly focused on supplying client satisfaction to our honored clients. The merchandises include both manus held nomadic telephone sets and serving the merchandises after gross revenues along with giving the necessary preparation and support.

The lone manner we can trust to distinguish good is to specify the vision of the company to be a engineering ally to our clients. We will non be able to vie in any effectual manner with the ironss utilizing boxes or merchandises as contraptions. We need to offer a existent confederation.

The benefits we sell include many intangibles: assurance, dependability, cognizing that person will be at that place to reply inquiries and aid at the of import times.

The unequivocal worldwide criterion for radio communications has merely broken through the 200 million-customer barriers. However, the GSM industry is one of the most impressive success narratives of the 1990 ‘s and presently generates more than $ 100 Billion a twelvemonth in subscriber grosss entirely.

We have some major nomadic phone distributers in the metropolis, such like Emirates Computers, Juma Al-Majed and Jumbo Electronics. If our scheme works, we will hold differentiated ourselves sufficiently to non hold to vie against these shops.

Our scheme flexible joints on supplying first-class service and support. This is critical. We need to distinguish on service and support, and to therefore deliver every bit good.

Our concern is a retail shop. The ideal topographic point for the prospected Showroom will be at the new constructed shopping centre in Tourist Club Area at East Side of Abu Dhabi City.

In order to keep costs down every bit much as possible, we concentrate our buying with “ Nokia ” Regional Office in Jabel Ali at Dubai.

We are traveling to hold four major employees: Manger, Gross saless Lady, Technician and comptroller.

There are some factors that will impact badly on the growth of our proposed concern, such like:

Customer is looking into mill warrant for replacing the defected sets. “ Nokia ” corporation will allow us instantly this sort of guarantee.

Normally clients are take a firm standing in purchasing merely the original spare parts and accoutrements. Therefore we are traveling to offer merely original spare parts and accoutrements to derive the client satisfaction.

1.1 Vision Statement:

MyPhone is such a seller. It serves its clients as a sure ally, supplying them with the trueness of a concern spouse and the economic sciences of an outside seller. We make certain that our clients have what they need to run their private and concern life every bit good as possible, with maximal efficiency and dependability. Our ambitious is mission critical, so we give our clients the confidence that we will be at that place when they need us.

1.2 Merchandises:

MyPhone provides both nomadic phones merchandises and services to do them utile to private users. We are particularly focused on supplying client satisfaction to our honored clients. The merchandises include both manus held nomadic telephone sets and serving the merchandises after gross revenues along with giving the necessary preparation and support.

In nomadic phones, we support three chief lines:

The less feature nomadic telephone set, which is our little and least expensive line, ab initio positioned by its maker as low-income users. We use it chiefly as a inexpensive Mobile phone for workers and non- professional people.

The Power User is our chief up-scale line. It is our most of import nomadic telephone set for high-end single as classified for medium scope of income, because of they are the bulk of the users, and they are necessitating sets with more characteristics and big capacity batteries.

However, we will offer a luxury type of nomadic telephone set with utmost fancy looking and elegant design, for the upper category of the society and manfully for the Ladies who are impressed for such theoretical account as portion of their prestigiousness in the society.

In service and support, we offer a scope of walk-in service and warrants through our well capable workshop and professional technician.

1.3 Key Features of Merchandises:

The lone manner we can trust to distinguish good is to specify the vision of the company to be a engineering ally to our clients. We will non be able to vie in any effectual manner with the ironss utilizing boxes or merchandises as contraptions. We need to offer a existent confederation.

The benefits we sell include many intangibles: assurance, dependability, cognizing that person will be at that place to reply inquiries and aid at the of import times.

These are complex merchandises, merchandises that require serious cognition and experience to utilize, and our rivals sell merely the merchandises themselves.

Unfortunately, we can non sell the merchandises at a higher monetary value merely because we offer services ; the market has shown that it will non back up that construct. We have to besides sell the service and charge for it individually.

1.4 Production of Merchandise:

As we are go toing to be as a distributer merely for one of the major trade name of Mobile Phone in the market “ Nokia ” . Therefore we will import or stock straight, and it will non be any sort of production in our house. Furthermore, our concern will depend on retailing and non on production.

2 ) Company & A ; Industry:

2.1 Overview of the Industry & A ; Community:

The Industry:

GSM ( Global System for Mobile Communications ) :

The unequivocal worldwide criterion for radio communications has merely broken through the 200 million-customer barriers. Achieving this milepost of 200 million endorsers to GSM services is the powerful consequence of the go oning demand for people to pass on and entree information on the move. With four new clients every 2nd, the latest figures exceed, yet once more, all industry anticipations and show the persistently dramatic growing of GSM throughout the universe.

As at the terminal of 1997, there were more than 200 million nomadic phone endorsers worldwide and the planetary gross revenues volume was over 100 million units, an addition of approximately 50 % from the old twelvemonth. By the terminal of the twelvemonth 2001, it is believed that the planetary endorser base will hold grown to about 600 million. Coupled with the subscriber addition, the nomadic phone gross revenues volumes are turning due to the rise of the replacing market. GSM has established itself as the universe ‘s prima digital wireless criterion, and it is believed that the current growing rates will go on for the foreseeable hereafter. At present degrees, it is confident in the anticipations that by the twelvemonth 2005, it will hold achieved between 700 million and One Billion GSM clients worldwide.

The GSM industry is one of the most impressive success narratives of the 1990 ‘s and presently generates more than $ 100 Billion a twelvemonth in subscriber grosss entirely.

Its impressive growing rates are one time once more attributed to surging planetary markets and the sustained incursion of new emerging markets.

In all the markets it has been get downing to see a widespread take-up of a host of GSM value added services, beyond voice use, including informations and text applications. This demonstrates how GSM is an germinating engineering that offers exciting new services and chances for endorsers.

The hereafter is even more exciting, as the development way for the GSM criterion is clearly mapped out and nowadayss an exciting epoch of applications and services that will stretch the bounds of the imaginativeness. It is traveling closer and closer to the bringing of 3rd coevals services, which will see multi-media applications, internet entree and entree to real-time picture, via GSM-based webs and French telephones. This will guarantee that GSM continues to be the criterion of pick and trumpeters continued monolithic client growing in the old ages to come.

The Emirates Telecommunication Corporation “ Etisalat ” :

The UAE has a outstanding position in the field of telecommunications as its accomplishments are making the quality and criterions of the developed states. The demands for telecommunications installations in the UAE are turning at a phenomenal rate. The local Emirates Telecommunications Corporation ( ETISALAT ) which is 60 % state-owned controls this sector and 40 % owned by private UAE investors.

Since its creative activity in 1976, Etisalat has increased the figure of telephone lines from 50,000 to over 850,000 and programs to raise exchanging capacity by an one-year rate of 100,000. In the UAE, demand for new lines is turning at approximately 12 % per twelvemonth.

Etisalat, motivated by the realisation that attractive substructure would promote many concerns to turn up in the UAE, has become one of the most profitable telecommunications organisations in the Gulf part and has joined in a figure of undertakings, runing from a 19,000 kilometres fiberoptic overseas telegram to associate Europe with South-East Asia. The first phase of the overseas telegram nexus is to put the alleged Fiber-optic Gulf ( FOG ) , which will utilize the most modern pigboat engineering and supply the UAE with links capable of transporting about 120,000 voice channels at any one clip.

Etisalat is the name that spells dependable communications in the UAE with planetary connectivity. Etisalat provides services on a par with the best in the universe and has an advanced communications web, which is virtually fault free. All exchanging systems are digital, common channel signaling system figure 7 ( SS7 ) has been introduced, and an parallel Mobile wireless web has been runing successfully for several old ages.

Some of the province of the art services being offered by Etisalat:

Telephone Service:

This is done through public call offices, wage phones, smart card and recognition card operated wage phones, smart card operated wage phones, and others.

A study by the Etisalat ‘s manager general showed that the direct telephone patchboard lines increased by ( 10 % ) lines annually and numbering 850,000 at the terminal of 1999. Telephone lines per centum besides increased from 29 to 31 for each 100 people which places the UAE in the lead of the Gulf part. The study besides indicated an addition of 27.9 % in public phones with an sum of 20,000 at the terminal of 1999 compared to 12,078 in 1995. Equally far as nomadic phones are concerned, the figure of subscriptions reached 1.2 million in terminal of 1999 compared to 128,495 in 1995. As it is approximately one-in-two of the population and 30,000 to 40,000 new phones were being sold each month.

Therefore Etisalat maintained its prima place among the states of the part by recognizing the highest growing rates of nomadic phones at 50 phones for every 100 people. The Global System for Mobile GSM Communication

The digital Mobile system which gives a new dimension to mobile communications has been in turning demand because of its satisfactory demands for national nomadic wireless webs. These are high public presentation, international compatibility, to the full digital operation, and encrypted air-interface. The UAE is one of the first states in the Gulf part to present this service to function the societal and economic developments in the state.

One of the chief benefits of the GSM, is the ability to utilize the GSM service on most of the GSM webs around the universe,

Charges:

GSM service connexion Dhs 200 one time merely

GSM service subscription Dhs 90 per one-fourth

SIM card Dhs 30

Call charges ( Normal Rate ) Dhs 0.39/min.

7:00am to 2:00pm and 4:00pm to 12:00am, ( For all yearss of the hebdomad )

Call charges ( Cheap Rate ) Dhs 0.21/min.

2:00pm to 4:00pm and 12:00am to 7:00am, ( on all yearss of the hebdomad )

International Calls Normal IDD rates apply

Emirates Internet:

The UAE ‘s window to the universe offering connectivity to an limitless figure of web, computing machines, and users worldwide. The Emirates Internet was established in June 1995. The figure of Internet subscribed reached over 25,000 by the terminal of November 1997.

Fax Plus:

A new facsimile plus state-of-the-art service with a host of advanced installations which lets the individual run even without having a facsimile machine.

Paging Service:

This wireless paging service enables people on the move to be in touch in an easy and economical manner about anyplace in the UAE. Harmonizing to Al Ittihad Newspaper, the UAE is ranked seventh worldwide, with 10 % of the population utilizing this service.

Voice Mail Service:

This includes videoconference service, audience services, and synergistic information service.

ATM Service:

The Asynchronous Transfer Mode ( ATM ) is a new service launched late in order to rush up connexions to clients. This is a broadband communications engineering, which provides a manner of transporting informations from a broad scope of applications utilizing one seamless web. This service is being introduced to provide for the turning demands of instruction and concern in the UAE and as portion of Etisalat ‘s planning for the hereafter.

Satellite

A new orbiter company called Al-Thurayya Satellite Communications Organization was launched in January 1997. Its capital is deserving $ 25 million and owned 26 % by Etisalat, 20 % by the Abu Dhabi Investments Company, 10 % by the Arab Satellite Communications Organization ( Arabsat ) , and 10 % by Bahrain Telecommunications Company ( Batelco ) , and 44 % is owned by other Arab authorities. The company was set up to have and operates the Thurayya orbiter system, which will function the quickly spread outing Mobile phone sector. It will cover the Arab provinces and portion of Europe and the Indian sub-continent.

The Community:

Abu Dhabi City:

Abu Dhabi is the capital of the United Arab Emirates. Its population was estimated 850,000 on 1998, with 70 % males. The Gross National Product was estimated on the same financial twelvemonth at Dhs. 65,850 per Capita which equivalent to U.S. $ 17,870. The Gross National Private Local Consumer was Dhs 25,040 per capita. The Gross National Government Consuming was Dhs 10,582 per capita. The Gross National Expenditure was Dhs 48,926 per capita. Which can be lead to be one of the highest per capita in the universe.

Abu Dhabi is really Modern City. Most of its buildings are less than 15 old ages old. Since it is the U.A.E. capital, it is incorporating all the central office of the Federal Ministries and other authorities sections and governments, beside all the oil and gas companies central offices, more than 63 local and international Bankss and many regional offices of the transnational companies. In add-on to that, Abu Dhabi has One public adult females university “ Zayed University ” , two campuses of Higher Colleges of Technologies and several colleges ‘ subdivisions.

2.2 Major Rivals:

a ) Major Distributors:

We have some major nomadic phone distributers in the metropolis, such like Emirates Computers, Juma Al-Majed and Jumbo Electronics. If our scheme works, we will hold differentiated ourselves sufficiently to non hold to vie against these shops.

Strengths: national image, high volume, aggressive pricing, and economic systems of graduated table.

Failings: deficiency of merchandise, service and support cognition, deficiency of personal attending.

B ) Other Local Shops:

There are more than one hundred retail mobile phone Shops in Abu Dhabi metropolis. These tend to be little concerns, owned by people who started them because they liked nomadic phones. They are under-capitalized and under-managed. Margins are squeezed as they compete against the major distributers and against each other in an effort to fit monetary values. The competition based on monetary value more than on service and support.

When asked, the proprietors will kick that the major distributers squeeze borders and clients buy on monetary value merely. They say they tried offering services and that purchasers did n’t care, alternatively preferring lower monetary values.

We think the job is besides that they did n’t truly offer good service, and besides that they did n’t distinguish from the major distributers. Furthermore they are depending in the grey market.

2.3 Comparative Advantages:

The selling of Mobile services to concern users, and more late to consumers, has resulted in dramatic growing in the figure of endorsers in Gulf Area. Operators now face the challenges of lifting client measure, the chance of worsening gross per endorser, and the examination of public presentation by investors. Achieving success in these new market conditions calls for a alteration in scheme from Mobile operators – a fresh attack to selling, distribution and client service to pull more new clients whilst retaining bing clients and protecting future gross.

The purchasers understand the construct of service and support, and are much more likely to pay for it when the offering is clearly stated.

There is no uncertainty that we compete much more against all the box thrusters than against other service suppliers. We need to efficaciously vie against the thought that concerns should purchase nomadic phones as easy and friendly contraptions that do n’t necessitate on-going service, support, and preparation.

Our focal point group Sessionss indicated that our mark professional users think about monetary value but would purchase based on quality service if the offering were decently presented. They think about monetary value because that ‘s all they of all time see. We have really good indicants that many would instead pay 10-20 % more for a relationship with a long-run seller supplying back up and choice service and support ; they end up in the box-pusher channels because they are n’t cognizant of the options.

Handiness of the stock is besides really of import. The purchasers tend to desire immediate, local solutions to jobs.

However, our value proposition has to be different from the standard retail stores. We offer our mark client, who is service seeking and non self reliant, a seller who acts as a strategic ally, at a premium monetary value that reflects the value of reassurance that sets will work.

Furthermore, our competitory border is our placement as strategic ally with our clients, who are clients more than clients. By constructing a concern based on long-standing relationships with satisfied clients, we at the same time build defences against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they need it.

Service and Support

Our scheme flexible joints on supplying first-class service and support. This is critical. We need to distinguish on service and support, and to therefore deliver every bit good.

2.4 Future Products & A ; Servicess:

We must stay on top of the new engineerings, because this is our staff of life and butter.

For telephone sets, we need to supply better cognition of cross GSS and WAP engineerings.

Besides, we are under force per unit area to better our apprehension of direct-connect Internet and related communications. Finally, although we have a good bid of accoutrements, we are concerned about acquiring better at the integrating of engineerings that creates facsimile, WAP, E-mail, and voice mail as portion of the nomadic Telephone set.

3 ) Operationss:

3.1 Location & A ; Premisess:

Our concern is a retail shop. Therefore in this type of concern the client will come to it, non the gross revenues individual has to travel to the client. It is sort of drawing gross revenues scheme non forcing gross revenues scheme. Therefore, the physical location will be the key to success or failure to this concern. However, the ideal topographic point for the prospected Showroom, after taking in consideration the locations for the others rivals, will be at the new constructed shopping centre in Tourist Club Area at East Side of Abu Dhabi City. As in new shopping centre, we will bask the being in the acme repute beside the advantage of parking batch handiness, which has become a great job in the metropolis in these yearss.

The store will be at the land floor. To grantee that all the visitants of this peculiar Shopping Center will hold the opportunity to see the topographic point and they will be cognizant that a new Mobile salesroom will be available for them. Furthermore, we can use the forepart of the salesroom to showing the merchandises in forepart of the shoppers, They will see and cognize what sort of merchandises we are offering before they have even entered to the salesroom.

The country for the topographic point is suggested to be non less than 100 square metres that can be distributed as the followers:

Sofa with country of 50 square metre.

Two little offices one for the salesroom director and the other for the comptroller with country of 6 square metres for each of them.

Shop with an country of 5 square metres, for the merchandises with necessary cabinets.

Service Area of 20 square metres furnituing with necessary tabular arraies, counter and cabinets.

3.2 Purchase:

Our costs are portion of the border squeezing. As competition on monetary value additions, the squeezing between makers ‘ monetary value into channels and end-users ‘ ultimate purchasing monetary value continues.

With the nomadic phone sets, our borders are worsening steadily. It is being squeezed to more like 13-15 % at present. In the main-line accoutrements a similar tendency shows, with monetary values worsening steadily.

In order to keep costs down every bit much as possible, we concentrate our buying with “ Nokia ” Regional Office in Jabel Ali, which offers 30-day cyberspace footings and nightlong transportation from the warehouse at Jabel Ali in Dubai. We need to concentrate on doing certain our volume gives us negociating strength.

Furthermore, In accoutrements and add-on we can still acquire nice borders, 25 % to 40 % .

3.3 Resources:

a ) We are traveling to hold four major employees:

Employee

Duties

Manger

Oversing and Purchasing personal businesss

Gross saless Lady

Gross saless Affairs

Technician

Workshop Affairs

Accountant

Histories and Bookkeeping

We are in demand for really small equipment to run the undertaking ; this equipment will be bought. As no tendency in United Arab Emirates to lease such equipment.

4 ) Management:

The direction in the our house believes really strongly that relationships should be forthright, work should be structured with adequate room for creativeness, and pay should be commensurate with the sum and quality of work completed.

4.1 Management Structure:

Owner

Director

Accountant

Gross saless Lady Technician

4.2 Professional Services & A ; Employee Training:

A ) Legal Affairs:

Particularly in the beginning, therefore we have already negotiated with a really respectful Advocate office in Abu Dhabi City, who is holding a good experience in the commercial and civil personal businesss. He will take attention for all the Legal Affairs, including Renting Contract, Maintenance Contract, and Labor/Employee Contracts, Revising the buying and banking understandings, etc.

B ) Accounting Procedures:

The fiscal information is excessively indispensable for an well-organized concern house. Therefore a clerking system has to be maintained to include all the history processs. Furthermore, all the payments to be made sooner by cheques, and non by hard currency. The day-to-day gross revenues to be deposited in the bank following on the job twenty-four hours. However to form the buying of the goods, They would be imported by the Bankss missive of recognition ( L.C. ) merely.

C ) Insurance Expenses:

Our nomadic phone salesroom should see the concern along with its stock. As our concern requires insurance for such robbery offenses or larcenies. Further, we will see our staff. We can gauge the insurance premium at Dhs. 6,000 for the First twelvemonth. As gross additions in the 2nd and 3rd twelvemonth of Business.

D ) Banking Affairs:

As the buying of the chief merchandise will be from Jabel Ali warehouse of regional company of “ Nokia ” , hence the funding of such trades should be on Letter of Credit ( LC ) . We will mean to open two current histories with two different Bankss, which will give us more flexibleness in the finance processs.

Employee Training:

We will hold merely four staff. These staff will engage them, with sufficient experience in the comparative field. Therefore, no preparation is chiefly required at the beginning.

However, the regional office of “ Nokia ” in Jabel Ali Free Zone, they are forming such preparation session, whenever new merchandise is introduce to the market. Therefore we are be aftering to direct our technician to these preparation session whenever they will be made available.

4.3 Risks & A ; Plans to Minimize:

There are some factors that will impact badly on the growth of our proposed concern, such like:

Customer is looking into mill warrant for replacing the defected sets. Since we are buying straight from the regional office in Jabel Ali free zone. Therefore, “ Nokia ” corporation will allow us instantly this sort of guarantee. However some other retail stores are purchasing their merchandise from the grey market in Dubai. In this instance, they can non offer any sort of grantee in their merchandises. Furthermore, we are go toing to set this information on all of our advertisement runs and sale booklets.

Normally clients are take a firm standing in purchasing merely the original spare parts and accoutrements ( which are coming from same industry ) . Therefore we are traveling to offer merely original spare parts and accoutrements to derive the client satisfaction.

4.4 Execution Agenda:

Activity

Deadline

Required Time

Start Date

Renting The Space

Jan 31,2001

One month

Jan 2, 2001

Decoration

Mar. 31, 2001

Two Calendar months

Feb 1, 2001

Hiring the Staff

Mar. 31, 2001

One month

Mar. 1, 2001

Supplying

April 30, 2001

One month

April 1, 2001

Importing the goods

April 30, 2001

Two Calendar months

Mar. 1, 2001

Grand Opening

May 1, 2001