REPORT ON FEASIBILITY ANALYSIS OF TANZIF CO.

 Customers.

There are the numbers of the users that are seeking for such kinds of the offering in order to accommodate their lives and getting more comfort services.TANZIF will deals with the individual customers on domestic level as well as this services will be offers to various industries such as;office buildings, Factories and industrial facilities, hospitals and medical offices, super hypermarkets, software Hi-Tech companies and short term cleaning.

The will be used these services/ offering by contacting with the company personally as well as by using the various innovative links of the social sites.

There are the numbers of the potential customers of the TANZIF. It includes the various industries and SMEs that are annoying from the working of their sweeper.

Offering

I have an idea for the services and products that must be offered to the valued customers. But the categories of the products must be enhanced. There must be services related loading and unloading services. I also include the services related to the packing and unpacking.

Yes we will offer the combination of the one or more things and it include the cleaning of other floor services for instance surfaces tat are contains on the polished and non-polished concrete, floor of natural stone and numerous ceramic floor surfaces.

The essential key features of the TANZIF are includes as the understanding for the cleaning of Unique environment. The other key features of the TANZIF 24*7 cleaning services of the grocery stores and the cleaning of other retailing department stores.

The customer safety is the top priority of the TANZIF. It struggles for offering the accurate services to their valued customers. The most cost effective solution will be provided by the TANZIF for the cleaning needs of the customers by using the various kinds of the chemical and equipment of the floor cleaning.

Value proposition. Explain why your product or service will be important to the customers.

The services of the TANZIF will be the important for their valued customers because it will achieve the customer satisfaction level by providing its quality services with unique solutions for accommodating their customers. They buyers and customers of theTANZIF will be motivated by the unique services of this organization and they will be loyal with this.

4. Core competencies.

Yes the services of the TANZIF will be conations on the new and innovative technologies by using the various kinds on the cleaning tools and chemicals for the solutions of the heavy cleaning in industries and domestic purposes.The most cost effective solution will be provided by the TANZIF for the cleaning needs of the customers by using the various kinds of the chemical and equipment of the floor cleaning.

Yes, it will based upon the intellectual property and it will protected by the core of the heart and the owners of the organization will take care of its business in effective manners.

5. People. Identify the key people on the team who will launch this business.

TANZIF will also follows the infrastructure of the Hierarchal organization system. The internal stake holders of this organization will start from the CEO, head of departments, Manager, Supervisor and worker. One of our friends and my business partners has offer the idea of this venture.

Yes, they have the skills and knowledge needed to successfully turn the idea into a start-up venture.

Yes, they attract key team members who will fill in any gaps in knowledge, skills, and experience.

Feasibility Analysis:

1. Industry and Market Feasibility

The first step in assessing industry attractiveness is to paint a picture of the industry in broad

strokes, assessing it from a “macro” level.

Sociocultural factors

If the social factors of the Oman will be measured for running the TANZIF in the economy of the Oman than it will measure the skills and demographic level of the population. It also explains the power structure in the society. All of these things are in the favor of the TANZIF. The social culture factors will be fruitful for the operations of the TANZIF in the sultanate of Oman.

Technological factors

As Oman is the one of the developed country and it is the oil rich country in the Gulf States. The technological environments of the companies are in the favors of the TANZIF because in order to promoting the services and offerings the TANZIF the new and innovative tools and techniques can be utilized that can be the cause of the promotion of the products and services in the entire region of the Oman.

Demographic factors

Oman has been changing as a country in so many ways. Majority of population of the country is living in Oman. The data has revealed that number of expatriates in Oman is more than 2 million. The country has been transformed since 1970s, as government has worked on so many important things, like education. They have done this to produce domestic workforce, rather relying on the workforce from outside. However, it is important to mention here that TANZIF does not have to care too much about demographics, because demographics are not extensively critical for them.

Economic factors

It is important to know that the economy of Oman is oil based economy, as it is also one of the Gulf countries, which is rich in oil. As per statistics, the score for economic freedom of Oman is 61%. It is one of the major economies in the Middle East region standing at 7th rank. The government has been working hard to come up with new ways to increase production of oil so they can increase their market share. It is interesting to know that the country has not put any individual income tax on its citizens. Overall, the people are good enough to handle their living expenses and luxury etc. The strong economy of Oman is a good sign for TANZIF as people will be able to afford their services (Heritage.org, 2019)

Political and legal factors

It is critical for every business to have a stable political environment to thrive; otherwise it gets difficult for them to boost and sustain their business. The stable political environment is crucial for success of any new or existing business. So, the good news for TANZIF is that Oman has political freedom as well as stability, which is required to keep things on the right track. The government facilitates business community to excel and come up with great results. This is how TANZIF can boost their business. Moreover, legal factors are also welcoming for businesses, as the country is trying to promote businesses to boost economic activity (Times of Oman, 2015)

Global factors

The global factors can affect a business in so many ways, but it depends on the business type as well. For instance, if a company is related to any business, which can be affected by global factors, then global factors are also considerable. But for cleaning business of TANZIF, global factors are not crucial. The company does not have to bear any extensive competition from any international company; rather they have to compete on local level (Sarokin, 2019)

Five Forces Matrix

How to prepare the matrix?

Assign a value to rate the importance of each of the five forces to the industry on a 1 (not important) to 5 (very important) scales.

Then assign a value to reflect the threat that each force poses to the industry.

Multiply the importance rating in column 2 by the threat rating in column 3 to produce a weighted score.

Add the weighted scores in column 3 to get a total weighted score. This score measures the industry’s attractiveness.

The matrix is a useful tool for comparing the attractiveness of different industries.

Minimum Score = 5 (Very attractive)

Maximum Score = 1 (Very unattractive)

Please note that to quantify the matrix and give these values, you need to assess the industry very carefully. To do so you need use the following relevant criteria:

Rivalry among companies competing in the industry:

The number of competitors is not in large numbers, but still the competition is tough because industry does not have so much space. The competitors have already established themselves in the market and made a good brand name amongst customers. So, competition is tough for the company. The main two competitors for TANZIF are REMAS & East dreams.

Competitors of the TANZIF are not similar in size or capability. Both major competitors are different in size, and they are dealing with different cleaning services. For instance, REMAS is involved in large scale cleaning services for office buildings, factories, software companies, super markets, hospitals, and industrial facilities. They are also providing loading & unloading services, packing & unpacking services, and moving services (Remas Group, 2019). If TANZIF has to get any competitive advantage, then they will have to provide all of these services so that they can stay ahead in the competition.

The industry of cleaning services is growing at a fast pace. As number of businesses is increasing in Oman, the opportunities for different relevant businesses are also increasing. Any new office buildings must need cleaning services, and these large scale services can only be provided by expert cleaning company. Such services can be provided by TANZIF.

The opportunity for TANZIF is there to sell a differentiated product or service.  

Bargaining power of suppliers to the industry:

The number of suppliers is in good numbers, so it is easy for the company to get equipment for their cleaning services. It means that bargaining power of supplier is bit low, because number of suppliers is available.

Substitute products are easily available in the market by variety of suppliers. It means that if any supplier will increase the rate of product, the company can switch to any other suppliers.

If TANZIF faces an issue in finding a good product, then they have this opportunity to find products from other suppliers. They can do it easily as they don’t have to incur any switching costs. If suppliers would have been less in numbers, then things would have been difficult for TANZIF to find a substitute product.

The items provided by suppliers are easily available in the market, and these products are not one of rare products in the market, so it is easy to find any product at a reasonable rate.

Bargaining power of buyers

Industry customers’ “switching costs” to competitors’ products or to substitutes are relatively high. It is important to understand that cleaning services are not like one time change of product. For instance, if a customer is buying bread for one company, and if he/she does not like the product, he/she can easily switch by buying bread from any other company. But this is not the case in cleaning services. The customers can’t buy each product related to cleaning, so they will have to rely on services provided by cleaning companies, and it is hard to switch cleaning services companies.

The number of buyers are also high in numbers, because all homes, offices, factories, super markets etc. they all need to clean their buildings, and it is not an easy thing for manage on their own. So, they need to hire companies to get these services in a professional manner.

Customers demand is high in this market, but number of suppliers is not too high in numbers. For instance, if a person has to buy anything from super market, he/she will have variety of options, but when it comes to cleaning services, the number of companies is not too large in numbers.

Customers can find it easy to find internet services or mobile phone services, but when they will have to find cleaning services, it would take their time, resources and money to get a considerable services company.

The items companies sell to the industry account for a relatively small portion of the cost of their customers’ finished products.

Threat of new entrants to the industry

The advantages of economies of scale are absent. Economies of scale exist when companies in an industry achieve low average costs by producing huge volumes of items. This is not the case with the cleaning services as much as above mentioned example has mentioned.

Capital and resource requirements are at medium level for the company entering into cleaning services industry. The threat of new entrants is also medium, because it is not easy to develop a cleaning services company, which has all the resources, equipments and man power.

Cost advantages are somewhat related to company size, because if company will provide services to large offices, factories or buildings, then they will have to have relevant equipment, and they will also need man power to do these tasks on regular basis.

Buyers are not extremely brand-loyal, making it easier for new entrants to the industry to draw customers away from existing businesses. But still, it is hard for them to get considerable businesses, because switching of companies is not easy for customers, so they may prefer to stay with one company, rather choosing a new company.

Governments, through their regulatory and international trade policies, do not restrict new companies from entering the industry. In this matter, any local or international company can start its business, because there are no legal or political barriers, but still, entering this competitive market is not an easy thing.

Threat of substitute products or services

Actually, the cleaning companies provide services, which are not readily available. It is not like a product in a shelf, which can be purchased from various places.

The prices of substitute products are not significantly lower than those of the industry’s products.

Buyers’ cost of switching to substitute products is high, because when they opt for one cleaning services, they will have to buy certain package for certain time limit, so it is hard for switching. That’s why threat of substitute is lower.

2. Product or Service Feasibility Analysis: Is There a Market?

If it is analyzed, whether TANZIF will have any opportunity in the market to get attention of customers, because they need it, then it is quite evident that feasibility of the business is very much available. There are large scale building, offices, factories, residential areas as well as factories. Some of these mentioned buildings may develop their own cleaning system, but it is not considerable to do so for majority of them. So, they will have to hire cleaning companies to get required services, as cleaning companies are experts in this regard (Entrepreneur, 2003)

3. Financial Feasibility Analysis: Is There Enough Margin?

As it is mentioned earlier that the cleaning company will have feasibility in the market, which also means that the company will have financial feasibility as well. if any product r service is requirement of the market, then it can be expected that the companies will have good value for their money, and they will get good return after investing some capital in the business.

The four major elements to be included in a financial feasibility analysis include:

The initial capital amount is required by TANZIF to start its business. The overall requirements will be based on the fact, how large their company will be. A small company will require small capital, and a large scale company will require large scale investment in this regard.

Estimated earnings can’t be finalized in the early portion of business, but still, a viable idea can be taken by analyzing the financial data of competitors.

Time out of cash, and other relevant elements will start to show their worth with the passage of time.

Resulting return on investment could be considerable for the company, as large scale offices and buildings will require large scale services. So, getting a business from one or two large buildings in the start will provide good return on investment.

4.  Entrepreneur Feasibility: Is This Idea Right for Me?

Many new businesses require that an entrepreneur have a certain set of knowledge, experiences, and skills to have any chance of being successful. This is called entrepreneurial readiness. Entrepreneurs can gain the knowledge and skills they need from previous jobs, from their formal education, or from their interests or hobbies. Performing an entrepreneurial self-assessment can help:

Entrepreneurial Self-Assessment: It evaluates entrepreneurial readiness

Another way to ensure the necessary knowledge and skills are in place, is through building a team.

Developing and Testing a Business Model

When building a business model, you need to addresses a series of key questions that will explain how a business will become successful.

Customer segments. A good business model always starts with the customer. There are various customer segments available from different markets for cleaning business.

Value proposition. The company will provide great and unique services with 100% customer satisfaction to get value proposition

Customer relationships. The company will make sure that great customer services are provided to build a loyal and strong relationship with the customers

Channels. The company will consider choosing variety of promotion and advertising channels. However, it is important to mention here that most of the focus will be given to social media channels.

Key activities. The company will run large scale promotional campaigns on social media and on other platforms to get the attention of the customers

Key resources. The key resources include equipment and machinery needed for cleaning. Moreover, man power is also another key resource.

Key partners. The company will make partnerships with suppliers of equipment and machinery

Revenue streams. The company will have both one-time sale packages as well as ongoing fees with variety of packages, which customers can chose as per their needs.

Cost structure. The fixed costs are costs related to machinery and equipment, but these costs can also change, if any equipment is not working. Then new equipment will be needed.

References for TANZIF Co.

Entrepreneur. (2003). How to Start a Cleaning Business. Retrieved November 20, 2019, from https://www.entrepreneur.com/article/41426

Heritage.org. (2019). Oman. Retrieved November 20, 2019, from https://www.heritage.org/index/country/oman

Remas Group. (2019). About Services. Retrieved November 20, 2019, from https://www.remasalseeb.com/services.html

Sarokin, D. (2019). What Are Some Ways in Which Global Forces Affect Business Today? Retrieved November 20, 2019, from https://smallbusiness.chron.com/ways-global-forces-affect-business-today-67573.html

Times of Oman. (2015). Political stability to drive investment in Oman. Retrieved November 20, 2019, from https://timesofoman.com/article/49200/Business/Political-stability-to-drive-investment-in-Oman