Montecarlo Simulation Essay Example for Free

Montecarlo Simulation EssayEconomy is the necessity of the consumers as strong as to gain the net credit for it. In that route our superlative innovation of VIVO light has its own personal history which has originated the great solution for the comm building block of measurementy these ages. By this time, all should amaze been aw ar of the startrageous lates about the uprising of electric bill. One could hardly expect any oneness to accept the situation. Especially people who live in atomic number 18as where on that points neither electrical energy nor male monarch supply. There argon people who often go for adventurous trips where they are greatly in aim of light. Lighting with less capacity is always not an effective way to hold the light. There lies the problem except not without a solution which is a simple one. In this situation our team had a technical advanced resource that came up with the solution. It is none other than the VIVO- conduct reloadable light itself. It has the power of luminescence which allow continuously last retentive hours. As we fork up just incorporated the company, the phone line is in the infant correspond. Further we hope to light upon it as legal soon 2. 2 Vision Statement We develop the solutions beyond your expectations based on cutting edge technologies interlinked with economy and ecology. 2. 3 Mission Statement To be the leading integrated clay and lights supplier to the global to the micro electronics industry and to offer complete energy saving solutions to guests for their firing off involve and providing total customer satisfaction with our gamyly innovative and cost-effective merchandises. 2. 4 Business Model We localise to uncover one of the essential produces to the customer with a standard harvest-festival design and size.We have a bunch of knowledgeable and talented team to produce our initial set of production. At the mingy time we stain to grocery store our products throug h call for marting tool. Beca practice session we believe Door Step food food marketplaceing would urge on us to approach each and every customer individually. We chiefly concentrate our product with high fictitious character and the relationship with our customers by providing better service. Also we hope this de break create a primary prise for our loyal. In future we hope to spread our product to Sri Lanka, island wide. 03. PRODUCT PLAN 3. 1 FeaturesThe product nominate be designed based on the emerge engine room of Light Emitting Diode (light-emitting diode). Currently the Sri Lankan market for this typeface of product is dominated by trade Lamps from China, which mostly contains a florescent tube lamp inside. As per the market research the problem with these type of lamps are these get out permit light usable for maximum of one hour, correct if the reversible battery inside is charged fully for more than three hours. The main endorser for this inefficient performance is the florescent tube lamp utilize. This lamp bequeath consume more power than light-emitting diode lamps.And the brightness will also be lower than a five watts Light Emitting Diode ( conduct). The target area customers of the companys product are unable to use these imported lamps for the purpose of studying, working and adventurous travelling. So their needfully will be satisfied with this product since the proposed product will be designed by breeding large number of leads and a rechargeable battery which is compatible and portable. It is efficient to the extent that, it will provide more hours lighting with the charging time of only few hours and more charging time will augment the usance time. . 2 Key Attributes fraternity is planning to incorporate two functions in the product utilize the LED units. That is the unit will have an Active mode and a scintillant mode for comfort station of the user. Bright mode This mode is the variantiating feature of the companys product from other lamps. This is where the unit will be supplied with more power, to the extent that the LEDs will function with its full capacity. So the lamp give the sack be used for studying, cookery or travelling in night purposes. Active modeThis is where the Light emitting diode will be supplied with low power using a small circuit with a help of a switch. This will resolve in the lamps, emitting light at a lower capacity than its full capacity. This mode whoremonger be used to place the lamp in a hall area where you dont need too much bright. This will significantly contract the power consumption and increase the operating hours of the unit while the enduringness of the LED will modify and the battery life will also increase. 3. 3 Enhancements The firm is planning to enhance its product to the extent that, it will charge itself using solar dining table technology.Currently the firm is unable to incorporate this technology, because it is not having suf ficient financial aid. solely once it is formal in the market place it will be thinkable to get additional bank contribute or any other sources of financing. Then the firm will be able to produce more number of units with additional features. After the incorporation of this impudent technology the product whitethorn be government issue to a impairment revision and this may increase the piece. The product is made up with light emitting diodes, this agency that there is low probability that this unit will fail due to the failure of this LEDs.But the riskier part is the rechargeable battery, where the average life of a battery is around two years, so that in assign to be more cautious, company is expecting to give a one year warranty for its customers. 3. 4 intersection Strategy The luck identification suggests that, the people who suffer with the increased electrical energy tariffs and who are trying to garnish their electricity expenses are expecting some other forms of lig hting. On the other hand there are trusted areas of the landed estate that do not supplied with the power by the electricity board, in order to carry out the natives chores.So this commercialize Gap analysis helped the emergence of the efficient rechargeable LED lamps. Initially the target segment of the firm is the consumers who live in the North and in the up country of Sri Lanka as the company has small scattering argumentationises to market the products in these areas. After wards within the following three years it will expand the target market and company will sell the product to at least 50% of the consumers in Sri Lanka covering Eastern, Western, Sabaragamuva, Central and Uva dutys.Currently the product strategy is to produce the rechargeable LED Lamps which could be used for lighting purpose at houses, working places and for travelling purposes. But in future after establishing the product in the market place it will use a product mix which will include more technolo gical products such as solar power lights and etc. The product is differentiated to attract customers, through its unique feature of brightness which could be used to light and cover a vast area (more than 500 square feet) and the efficiency where the power entertained for half an hour can be used for more than five hours.The current products in the market are less efficient and it cannot be used for the purpose of lighting a vast area, as most of the products related to this technology are small portable torch lights. The major risk of introducing a technological product is the emergence of new technologies. So company should be aware of the emerging new technologies and based on the consumer requirement, a continuous Line extension, Market Development, Product Development and Diversification strategies will be required to succeed in the business.According to this, it has planned to introduce a self charging unit in the forth coming periods. The introduction time of this new pro duct will not be defined at present, in order to avoid product proliferation. 3. 5 Benefits of the Product The objective lens understructure the firms strategy is to make business that satisfies the customers who do not have proper and up to(predicate) electricity facilities in their region. So the target customers are the people who are in the remote areas, in the main in hill countries and north and east province.establish on the preliminary study conducted, on target customers, it was identified that the main concern is lack of electricity facility and the amount of silver that they can commit to obtain electricity facility through other means. The following benefits of the companys product will full fill the above requirements and it is believed that, this is a competitive advantage of the firm compared to the other players in the industry. ? Compatibility and convenience The product is designed with the intention that the users should be able to carry it easily where eve r they go.So the lading of the unit will be less and the size is also reduced up to the maximum. ? Expensiveness The product incorporates the emerging new technology of LED. This has helped the company to substantially reduce the production cost. So the final output of the product will be priced in accordance with the market price, while the firm can also reduce the distribution cost, import expense and intermediation cost. Because when a company import and sell a product, the producer, distributor and ultimately the importer has to make profit from the same unit.So the product normally will have more selling and distribution cost than the manufacturing cost. This huge disadvantage is purely eliminated from our product because it is a Sri Lankan product. So in this context the company will set the price well below the market price. So the customers can get a uncorrupted quality product at a lower cost. ? Efficiency and durability The main competitive advantage of the product is t he efficient use of the product that is 30 minutes of recharge ime will enable the user to operate the unit for 300 minutes, which is comparatively high usage when canvas with other similar products in the industry. The other benefit is that we have incorporated two options to satisfy the customer needs, which is bright mode and active mode. This will further enhance the usage. ? Warranty claims The Company will provide a one year warranty for the product. That is our company will bear all the repair and living expenses of the product which is returned to us within one year from the gross sales date.It increases the reliability of the product among customers. ? Customer affirm In this industry normally after sales services are not a common facility provided by the producer. So the company has planned to provide technical support to customers after the sales regarding the usage and warranty claims. This will be done through the telephone conversation and through the business age nts. So this service provides an additional comfort with the companys product. 3. 6 Trade Secrets and Patent Rights This is a very important area to be considered.But the firm is protected in this area because fit in to the initial market research there are very few Sri Lankan companies producing this type of products by merchandise the partly finished components and doing the latter part of the production (Assembling) in Sri Lanka. So there is no direct competitor for the firm in the current context. Bur the product may face Reverse plan in future. But this type of risks is common in this business area, so it is very demanding to protect this. But if the marketing team of the firm communicate the customers clearly, then it will be easier to promote the maestro products.The firm is sure that it has unique knowledge and skills about its product and the business, so this is the strongest competitive advantage of the firm and, it may not disclose it to others. As some would expec t, this approach has its own issues like disclosure requirement, but many ventures have competed successfully this way. 3. 7 Stage of Development The product is in the prototype stage and the company has successfully completed the previous two stages of conceptual and design stages. It will be restore for marketing once it has started the business activities.And it is possible for the firm to grab the first mover advantage of this type of LED technology. 04. MARKET AND INDUSTY ANALYSIS application analysis and market analysis are two different ways to look at the environment in which a business competes. Although related, these two types of analysis differ in their scope. The purpose of the market and industry analysis is to identify the market opportunities for our product, LED rechargeable lights. LED lights are the next generation of lighting solutions which going to emerge in coming years. indeed there will be a good probability for our product in future. 1. Market Analysis I n todays technological world, we find a challenging and ever-expanding marketplace for almost any product or service. The bureau of the market analysis is to help guide the process of better understanding of the most important market segments, how fast the opportunity is bring outing, what are the key sustainable differentiations and why are these important. In this section we are going to discuss the following components Target market segment strategy Market needs Market trends Market segmentationOverall market The lighting industry is in the early stages of shifting international from completed technologies fluorescent, incandescent, and high-intensity discharge (HID) lighting toward light-emitting diodes (LEDs). Adoption rates of LED lighting are expected to grow in the coming years as the efficiency and quality of LEDs surpass those of competing technologies and as the price is low. not only the quality and low price of LED rechargeable lights, people not having the co mfort of using the electricity, especially like a country like Sri Lanka, also makes way for us to make a market appearance.Our market would be mainly based on North and central provinces as those areas have no regular and proper supply of electricity. Over the past few years the market for LED rechargeable lights has shown a growing trend and it is likely that the current trend will continue. Future development of the northern and eastern provinces may decline the demand for LED rechargeable lights in those areas as they may get the regular supply of electricity. But the increase in the price of electricity makes the market opportunity for LED rechargeable lights outshining as more people opt for cheap lighting systems.In future, offshoot in the market for LED rechargeable lights is highly anticipated and it will be made possible by rapidly decreasing LED prices, ever-increasing efficiencies and improved quality of light. Therefore the revenue is expected to increase and the futur e looks bright for LED rechargeable lights in the coming years. Addressable market Although our overall market covers northern, eastern and central provinces our main focus would be on the rural areas of these provinces, where there is no electricity facility or the supply of electricity is interrupted often.People who are in search of a way to minimize their cost for electricity will be also included in our addressable market. Segmentation We have identified our market segment as follows, Groups of customers Our main customers would be people who have no regular access to electricity, low income earners and people who want to minimize their spending on electricity. geographics First we would introduce our product in the local market giving more attention to northern, eastern and central provinces. Product features Our LED rechargeable lights give more brightness with less power consumption. Benefits Saves power, money and time. Prices Our strategy would be cost leadership. We w ould produce the lights at a very low cost, add a profit margin to that and price our product at a low price. Distribution channel We would give out our product using direct distribution methods. There wont be any intermediaries in our distribution chain. Entry point Our main target is to cater the people who have no electricity and people who are in search of an alternative to fulfill their need for light, with a proper lighting system.This would become an entry point for us as there are many people in Sri Lanka searching for a proper lighting system. And the recent hike in electricity prices has made many people seeking for a cheaper electricity solution as our product is cheap and power saving, this opportunity would pave the way for us to enter the market. 2. Industry Analysis Industry analysis is a rattling part of the decision-making process in a business. A comprehensive industry analysis helps to take an objective view of the underlying forces, attractiveness, and success factors that determine the structure of the industry.Understanding the businesss operating environment in this way can help to formulate an effective strategy, position the business for success, and make the most efficient use of the limited resources of the small business. We are going to discuss the following sections in the industry analysis Industry Description Industry Trends Industry Size and Attractiveness Profit Potential Target Market war-ridden Position Industry analysis on LED Rechargeable LightThe industry for LED rechargeable lights is very small with few manufacturers, therefore the competitors of our proposed product would be less and as a result of this, it is possible enter easily and cater the market need with cost effective, efficient solution. Another significant advantage over the product is there are no other manufacturers in Sri Lanka, who produce LED rechargeable lights. The prevailing competitors compete mainly on price and the technologies used by t he competitors are comparatively similar.The degree of competition is lower in the industry therefore the probability of success is comparatively high(prenominal) for a new entrant in this market. Industry organization Majority of LED Rechargeable lights obtainable in Sri Lanka are produced in Japan, China, Taiwan and India and there are few small assemblers in Sri Lanka. The products are mainly distributed via supermarket channels, LG Abans, Singer and small retail electronics shops and distribution is extensively made in main cities such as Colombo, Kandy, Galle suburban areas.There is less number of distribution points in Northern and Central Province and only the customers in the capital city are purchasing LED rechargeable lights. Value is created to the proposed product via operations, sales and marketing, service and usage of advanced technology. The competitive firms mainly use the above value adding activities to improve profit margin. free-enterprise(a) Environment The competitive firms compete mainly on price and quality, and the introduction of new products is in a lower rate. Products are differentiated from one another mainly based on the number of LED bulbs used in light and priced accordingly.Customer support is given in the mean of quality warranty in average one year service warranty is given by the competitive firms. Number of firms prevail in the market is very few, since the degree of rivalry is also low. A new entrant should compete mainly based on Quality (efficiency), Price (cost effective), and service integrity (Warranty) in order to survive and to attract more customers in the market. Since the market is dominated by imported goods the response to new entrants is slow and LED rechargeable lights are not sold many dealers in Sri Lanka.Market is highly fragmented and the competitors are traditional and old. There is high demand for Nippon products but its price extensively high than other similar products The problems faced by the target customers due to the competitors products are a. Since the distribution channel is not well established in the target customers geographical area (Northern and Central Province), it is difficult for the customer to find the dealers to repair the product if any fault is identified in the product. b.Similar products easy in the market are less efficient in case of electricity consumption (high electricity consumption when charging), charging life is lesser than mentioned in the product catalogue, and the power is lesser than expected. c. Price of the product is high and the target customer segment find it difficult to purchase LED rechargeable light even though they have a need of it. Barriers to Entry When a new venture enters into the LED rechargeable lights industry it has to mainly face the following barriers from its competitive forces. a.Competitors such as Nippon, Kanchen are well established firms in the international market and equipped with advanced technologies the refore these firms will enjoy economies of scale and at the initial stage our firm has to incur comparatively more costs for technology, product designing and manufacturing. Therefore at the initial stage product efficiency and manufacturing efficiency is vital. b. There are some well established brands in the market and customers are loyal to those brands but the price of those brands are relatively higher(prenominal) therefore target customers may not be able to afford that higher price. c.Distribution channel of the product is not well established in the target geographical area therefore there are no competitors who have control over the channel. d. Switching cost for the proposed product relatively higher since the current market price of the competitors product. Even though there is an opportunity for the new entrants since the distribution channel of existing products is not reached to the target customer segment. Control over industry arguing of LED rechargeable lights are mainly based on price therefore pricing should be made in the way of value adding and it is important to set price lower than industry average.The bargaining power of customers is higher since they prefer cost effective solution. Suppliers of the raw material have more power since at the initial stage the production volume is low therefore it is difficult to obtain discounts from the supplier by bargaining. Competitive advantage can be gained only through effective production process. Existing competitors are mainly using indirect channels to distribute it would be successful if proposed product adopts direct means of distribution.Competition prevailing in the industry. There is no aggressive competition in the market and proposed product is the initiate locally produced product in the industry. The direct competitors in LED rechargeable light industry are Nippon, Kanchan and Orbit and few small importers. a. Nippon LED Rechargeable Lights Nippon LED rechargeable lights are the pro ducts of Nippon Electric Company (NEC), Japan. It is a well reputed brand in Sri Lanka and the products are imported by Nippon Lanka (pvt) Ltd.The distribution of products made via its salesroom in Bambalapitiya and through super market chains (Arpico, Keells Super), customers are loyal to the product since they perceive it has good quality than the products available in the market. Nippon Lanka doesnt have sellers in the Central and Northern Province. b. Kanchan Rechargeable Lights Kanchan is an Indian product and price is relatively cheaper than Nippon but the technology used by Knachan is different since the major technology used is Fluorescent Bulbs and these bulbs are comparatively inefficient than LED.The main mean of distribution is online selling and it is not reached in the rural areas of Sri Lanka. c. Orbit Star LED Rechargeable Light Orbit Star is a product from Orbit and it uses online selling as a major source of distribution to reach the target customer (www. anything. lk and www. topshop. lk), the accessibility of internet is poor in Central and Northern Province. Indirect competitors of LED rechargeable light would be the producers of Solar Power Lights, Kerosene, Dynamo, Bio gas but the above substitutes are inefficient and pricey than proposed product.Future potential competitors would be the producers who are using advanced technologies such as NANO and OLED. Opportunity Based on the market and industry analysis there is a need for efficient, environmental friendly, cost effective, environmental friendly LED rechargeable lamp especially in Northern and Central Province. The weakness of the competitors will be used as an additional feature in order to capture the market via prevailing opportunities.