Judgmental Analysis

Competition: Apple, LG, HTC, Motorola, Samsung

All of the competitors are conglomerates that have resources and cash on hand that we simply cannot compete with.

Therefore, we are directing our resources and capabilities towards developing a new project within a small niche market that we can dominate.

This market will be the commercial communications industry.

Product and Features

Touch-screen capabilities on a walkie-talkie

Physical design is similar to iPhone, with a smaller

screen.

Point to Point encrypted SMS messaging via UHF (ultra

high frequency) and VHF (very high frequency)

frequencies

GPS locator devices would signal officers of each others

locations and alert of messages/emergencies. This

allows officers to silently communicate with each other to

offer a better and safer working environment.

Issues Facing WuMobile

Too much competition in the phone/tablet market

How will the product be created and distributed?

How will the product market be segmented?

Choosing the correct supply chain strategy

What is the best combination of these elements for a

small start-up company?

Porters 5 Forces

Buyer Power - Moderate

- Since we are offering a

new product these firms

will not know our

capabilities and may not

feel a need to purchase

our product over our

competitors’.

Threat of New Entrants

– Low - Our products and

technologies are new and

are designed for a

specific segment that

other new firms can not

imitate.

Porters 5 Forces Con’t

Supplier Power - High - We chose one supplier to

handle our hardware and software integration, which is

why the supplier power is high

Threat of Substitute Products – Low - We have a

pioneer product, which implies new technologies. There

are no other products which makes this force low.

Rivalry Amongst Firms – Low - Our competitors offer

different products than us and they don't focus only on

one segment.

7 Segments of The Environment

Technological- Technology is

increasing at an exponential

rate so we need to invest in

research and development in

order to keep up and stay

ahead of our competitors.

Demographic - Our products

appeal to the public safety

segment and law enforcement

agencies.

Sociocultural - Our products

are designed to maximize the

efficiency of the user in an effort

to create a safer environment.

Direct Competitors

Uniden:

They focus on two way radios within police departments.

Offer water resistant, ruggedized devices

Expensive

Outdated

Motorola:

Offer radios for first responders and emergency dispatch

units

Wide range of capabilities and features.

These companies’ products are being used

currently in police and fire departments across the

country.

Indirect Competitors Mobile Market Players

Apple – 9.8 billion dollars in cash and cash equivalents

and a 17.8% market share

Samsung - 1.8 billion dollars in cash and cash

equivalents and a 26.3% Market Share

LG – 2.3 billion dollars in cash and cash equivalents and a

17.6% market share

Motorola –1.9 billion dollars in cash and cash equivalents

and a 11% market share

HTC – Has a 6% market share

Opportunities

Our product is brand new and offers unique features to

a specific target market that other firms do not offer.

Huge profit potential for a pioneer product due to lack of

competition on a product basis.

Current systems that police departments have are

outdated and failing, and need to be replaced.

Threats

It is possible that our target customers will not be

interested in our products and will not buy them.

Once we have customers, they may not want to update

their products as often as we forecast, which would hurt

our projected profit margins.

Internal Analysis

Core Competencies

Superior Product – Wu Mobile offers an innovative

product that is more advanced than Walkie-

Talkies, and better meets the demand of customers.

Efficient Supply Chain Management –Strong strategic

relationship with its supplier Acuce Co Ltd. They will

supply hardware and integrate our software into the

product. Also Wu Mobile will outsource delivery

services to a reliable, dedicated company.

Vision and Mission

Vision

To make life safer and easier for our customers

because we care.

Mission

To be the best commercial communications company

offering superior products to our customers while

maintaining our values of safety and efficiency.

Tangible Resources

Cash on Hand

Wu Mobile has $500 million in cash

Employees Year 1 – Wu Mobile will hire 20 software developers to

research and develop the software we will incorporate into the device

Year 2 – By year 2 Wu Mobile will employ roughly 115 employees, including 45 software developers, 30 sales representatives, and 40 support technicians. All of which will be highly trained and competent to perform their daily duties.

Resources Cont’d

Property Plant and Equipment

Purchase 13,000 square foot office space in

Newburgh, New York for $1,300,000.

Lease warehousing facility for $131,092 per year.

Entrepreneurial Spirit (Intangible)

We have the drive and determination to supply the best

product and manage a successful and profitable company.

Make or Buy

Produce hardware and software

in house

Create extensive hardware and software engineering department

Purchase offices, warehouses, and manufacturing facilities

Create transportation network for finished goods delivery

Full product cycle control

Outsource hardware production but develop

software

Create small engineering departments, still create software to obtain a CA

Outsource hardware production and software integration to external supplier

Lease warehouse for finished goods storage

Contract a distribution company for transportation to customers

Segmentation Introduction

Multi-Market

Penetrate police

departments, school

districts, fire

departments, and cab

companies all at once.

Full boar product

introduction

Single-Market

Penetrate only police

departments beginning

with NYPD

Beta test product in one

segment

Dominate single segment

Buy Product, Market to Single

Segment

We advise WuMobile to start small with 20 employees, design a product, hire someone to make it, and market it to one segment within 18 months.

12 month R&D phase, rented office spaces

3 month beta testing after R&D followed by 3 month re-design

Full integration into the NYPD by 18th month of operations

Employee expansion at end of first year with purchase of office building and leasing of warehouse space.

We will design the software and patent it, Acuce Co. Ltd. will create physical product and integrate it for us

Acuce will handle all technical documents and branding

Potential ResultsWuMobile has the potential to

earn significant profits by

year 3 of operations.

Losses in Year 1 attributed to

no revenue being generated

and R&D expenses

Losses in Year 2 attributed to

purchase of office building for

employee base expansion

Profits in Year 3 expected

because of significant

penetration into police

department segment with 65k

units sold in 2015.