Business Plan on Fiber Deployment company

Introduction of Business Plan on Fiber Deployment company

            Fiber Deployment company will work in the information technology sector. The main business operations of the company are to sell out fiber and broadband in the developed areas of South Africa. Current market analysis of South Africa elaborate that fiber deployment services are quite trendy in the market as the demand of internet and live television streaming is increasing in these areas with the passage of time. Many small and large size organizations are working to meet market demand. In such a highly competitive market, we are going to provide the best quality services at reasonable prices to our targeted market.

           Major service of our company is fiber internet delivery to the government and private sector (B2B) and consumer (B2C). in the following sections of business plan information about organizational structure, targeted market, price strategy, and other market analysis are discussed in detail that provides a comprehensive overview of the whole business plan.

Our Core Values of Business Plan on Fiber Deployment company

              Core values of our business are health and safety, ethical behavior, honesty, understanding, and excellence. All the business operations carried out by our company will be fully customer oriented and customer focused as the company wants to create differentiation in the market through better positioning and strong customer equity.  

Vision and Mission of Business Plan on Fiber Deployment company

              The company vision is to build a unique reputation in the targeted market by providing the best quality fiber deployment services to the customers. The company will work on the mission of its founders to ensure mutually agreed upon goals at each level. The mission of the company is presented below.

“Company will accelerate fiber deployment to promote the use of high-speed broadband at all locations your home and workplace in South Africa.”

Corporate Structure of Business Plan on Fiber Deployment company

            Corporate and overall organizational structure provides information about our employees and managerial staff. Authority and power are delegated at each level to bring efficiency in the employee's performance at each level of the organization. The following monogram presents the hierarchy of the organization.   

Figure 1 Organizational Structure

Services of Business Plan on Fiber Deployment company

              The company will provide fiber deployment services in the highly developed areas and cities of South Africa. In the beginning, the company will offer just a few services to the selected targeted market. While with an increase in profitability and expansion of targeted market the company will increase the product line or services portfolio. Somehow, selected services are enlisted below:

·         Fiber Deployment Services

·         FTTH Network design services

·         Installation inside the Multiple Dwelling Unit

·         High-speed broadband

·         Retail ISPs services 

Somehow, Company will also provide fiber internet, self- diagnosing ISP, and live streaming for movies and television at different affordable prices to the targeted market.

Customers of Business Plan on Fiber Deployment company

            In this section of business plan information about targeted customers, and potential customers are discussed. The potential customer of the company are all those students, households, and professionals who use the internet and live streaming of televisions in South Africa. As in the beginning selection of all these potential customers is not possible therefore customers are targeted on the basis of preferences. The market of South Africa is segmented on the basis of demographic segmentation to target most appropriate customers. There are two main groups of selected customer consumer (B2C) and the second group is private and government organizations (B2B).

a)      Consumer   

Consumer category includes all households and students who use internet service for their academic or entertainment purpose. The company will mainly focus on B2C consumers living in the developed areas of cities.

b)     Government and Private Organizations   

In this category, all organizations are included who will use our services for commercial use. In B2B category all organizations are included working as government or private organization in any type of industry, manufacturing, merchandising, or services sector.

Price Policy

Price policy can turn the fortune of a company particularly when the company is new in the market. Considering this factor and analysis the market competition company has developed a reasonable pricing strategy for all services offered to consumer or organizations. In the beginning, the company will follow up low price market leadership strategy to stand against the competitive situation. Our policy is to offer different packages to the customer at different rates thus the customers would be able to select the package meeting with their requirements and needs.

Figure 2 Prices for Packages

Competitor and Market Analysis of Business Plan on Fiber Deployment company

             According to the market analysis, average internet user in South Africa uses 4Mbps per second. While in the commercial sector user of the internet is about 8Mbps per second. We are not the only fiber deployment service providing company in the market. There are other companies such as Axes, Telkom, Web Africa, and Afrihost Company that are already covering the largest market shares of our selected market. While stable economic condition, a better social and political environment of South Africa are supportive.  Somehow, rising demand is also a positive factor that encourages the startup of this business.    

Finance

            Fiber deployment business is capital intensive; therefore the payback period is less than 5 years. In this section of plan major categories of expense, cost of operations, and revenue will be discussed on the basis of estimation and market research.

a)      Capital Expenditure 

To start up the business 1 million Rands will be invested on infrastructure, purchase of assets and to run operations in the beginning. At first, we will purchase must important assets including the office building, equipment, and fiber cables. While the company will keep the remaining amount in cash reserves.      

b)     Operating expenditure

Operating expenditure represents the possible expense and cost of operations. The company includes operating expenditure such as wages, salaries, hosting expense, marketing, and administration expense, office cost, and taxes.

c)      Revenue

             Revenue will be earned from selling out fiber internet services and completing other FTTH projects. According to the plan we will try to maximize sales to earn maximum revenue without compromising on the quality of services. While the company will also use marketing strategies and promotional activities to promote broadband services of the company. The company will get support from print and electronic media advertisement also to introduce their products and to grab the attention of customers.

IRR and Payback period

IRR and payback period analysis predicts that through getting an annual net profit of 300000 rands company can cover initial investment in the 5-year payback period. While the company can achieve the year 1 sales target just by selling out 95 Mbps packages annually or 120 20Mbps packages.