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Competitive Strategy - Boss Pedals
- 2. Purpose of the Project How can BOSS Company concentrate the market ? 2
- 3. Competitive Strategy Unit • PERKINS Juan Pablo • DIAGNE Mamadou Finance Supply Chain Marketing • RIYANI Ayda • LETONDOT Augustin • COLIN Claire-Lise • THURIER Romain • JAYDEEP Ashok Jat • ROUSSEL Margot 3
- 4. Business Model Deliver Value to customers R&D, innovative products, experienced & reknown company What makes the customers pay Quality of the product, durability (5 years guarantee), wide range of products, design of the product, used by famous artists Converting payment into profit Q strategy 4
- 6. DIAGNOSIS 6
- 7. Diagnosis – Porter 5 forces Industry competitors Bargaining power of supplier Threat of substitute products Bargaining power of buyers Threat of new entrants 7
- 8. Diagnosis – Porter 5 forces Industry competitors Bargaining power of suppliers Threat of substitute products Bargaining power of buyers Threat of new entrants VERY LOW Retailers IHH= 4,2 Consumers HHI= 0 LOW Electronical parts HHI= 495 (Low) Batteries HHI = 2549 (High) Wire HHI = 963 (Low) Enclosure HHI= 800 (Low) VERY LOW IHH = 243 5 main actors with 5% to 10% market share. More than 400 others with small market share. HIGH Do It Yourself (DIY) Application (digital) Amplis with integrated effects Second hand LOW Mature market. Low risk of radical innovation. + - - - - - + - + + 8
- 9. Clarifications (1) : • BARGAINING POWER OF SUPPLIERS: ELECTRONICAL PARTS: Breadboards, jumper cables, resistors, capacitors, transitors, potentiometers, jack and others Market Shares: 17,5 + 9,5 + 8,5 + 2,7 + 2,3 + 2,2 + 1,9 + 1,5 + 1,5 + 1,3 HHI = 495,97 > LOW CONCENTRATION BATTERIES: 9 Volts PP3 Market Shares: 38,7 + 26,7 + 13,4 + 12,5 + 1,5 + 0,6 + 0,5 + 0,3 + 0,3 + 0,2 HHI = 2 549,47 > HIGH CONCENTRATION WIRE : Market Share: 24,96+10,38+7,55+2,74+8,9+(5*3,69)+(15*1,14)+(110*0,0009) HHI= 963,04 > LOW CONCENTRATION 9 Diagnosis – Porter 5 forces
- 10. Clarifications (2): • BARGANING POWER OF BUYERS: Specialized websites : Sonovente, Woodbrass, Thomann... (over 200 worldwide) General websites : Fnac, Amazon… (over 500 worldwide) Market share = 50% + Exclusive dealers (partner, premium, platinum) : Home Studio, Music Lab (over 4000 worldwide) Market share = 50% IHH = 700(50/700)2 + 4000(50/4000)2 =3,57+0,625 = 4,2 10 Diagnosis – Porter 5 forces
- 11. Clarifications (3): • COMPETITORS: Main actors including Boss : Fender, Ibanez, Digitech, Boss Market share : between 5-10% each Several « middle » actors : Electronics harmony, Dunlop, tc electronics, line6, JHS, Wampler, Visualsound, Strymon, fulltone, Earthquaker, Zvex, Voodoolab, catalinbread, Madprofessor, Pigtronix, Keely electronics, T-rex Market share : 1% each 423 other actors with very limited market share Market share : Between 0,01 and 0,1% IHH : 4.(7,5)2 + 17.(1)2 + 423.(0,05)2 = 243 = VERY LOW CONCENTRATION • 2014: revenues of guitar accessories = 12% of total revenue of the Roland group > = 12x128,940,000=15,472,800 • The same year, the total revenue of the effect pedals sector was 195,000,000 >> = 8% market share from the market Boss pedal effects 11 Diagnosis – Porter 5 forces
- 12. Clarifications (4): • THREAT OF NEW ENTRANT: - Level of threat from new entrants is low, - Not a high level of threat from new entrants as market is mature, - Size of the US market annually is 12 million units, - Stomp boxes have long product life, - It is not a highly specialized product requiring great skills to manufacture, - Hence easy for new entrants to enter the market, …/… 12 Diagnosis – Porter 5 forces
- 13. Clarifications (4): • THREAT OF NEW ENTRANT: - However, there are already more than 400 companies selling stomp boxes, Hence it makes less business sense for new entrants to enter a new niche market without new technology or radical product differentiation, - It would be more apt for a company in the music accessories business to enter the market as it would be a product line extension and they could sell it with their other line of products, - New entrants are generally guitarists as they understand music well and venture out to build their own stomp boxes, - They sell primarily online themselves on their own website as they cannot achieve mass distribution on their own and don’t generally pay the distribution costs which are played by major players, - A few of the known new entrants, who have entered the industry in the past 3 years are as follows, - Adventure Audio / Amzel Electronics. 13 Diagnosis – Porter 5 forces
- 14. Clarifications (5): • THREAT OF SUBSITUTES: Kits DIY (Do It Yourself) Many Kits are available for cheap prices. They are designed to give musicians the opportunity to build their own effects pedals. Kits are available on many websites specialized in Kits DIY and their instructions are very easy to follow step by step. All you need to provide are hand tools, a soldering iron and solder. All effects pedals operate on a 9V battery. Some dealers are selling packs with all the raw materials needed. Hand Pedals Some pedals are made "by hand" in a small workshop. The production is made in small series. Their price is about two to three times more expensive than an industrial pedal because of the labor cost components that are often of better quality. Mobile Apps • A well-maintained pedal collection can take years to compile and requires more than a fair share of effort to transport, set up and control while playing. App developers have taken some of the hard work out of pedal set up with digital stompbox and effect pedals for the mobile device. • Mobile stomp boxes and effect pedals offer the ability for plug and play capability, giving access to some great effects with comparable control in comparison to physical pedals. Easy to use, these mobile apps are innovative and most of all fun. 14 Diagnosis – Porter 5 forces
- 15. Clarifications (5): • THREAT OF SUBSITUTES: > According to a lot of users, Boss is the most reliable brand among all the others. > Boss is the most used by professional and famous guitarists worldwide. This is one reason why users of Pedals choose Boss Brand. > They would like, as an innovative ideas to add on the pedals product, things that provide less use of cables to register the sound (without using the PC). > Also, they would like multieffect pedals with better quality. The current multieffects pedals are not of good qualities. The reason why users are obliged to buy different pedals for the differents effects desired. 15 Diagnosis – Porter 5 forces
- 16. STAR No star product DILEMMA Rapid growth but limited sales Limited editions CASH COW Best sellers : Reverb, Distorsion, Overdrive and Delay models DS-1, MT-2, CH-1, DD-7, CS-3 DOG Technical products not much sold Phaser, Octave Envelop filter Diagnosis – BCG Matrix Marketgrowth Market Share 16
- 17. No star products on a market that is not growing fast. BUT, trends like the « vintage » one lead us to think that growth is important on particular segments. 17 Diagnosis – BCG Matrix
- 18. Diagnosis - Value Chain 18 SupportActivities Primary Activities
- 19. Advantages : • Good quality products, • Large variety for each precise effect, • Strong Brand Image. What need to be more valued : • Marketing and sales : No on line e-commerce website, no physical shops, no originality or creativity of the deign… • Services : No direct contact with consumers and low effectiveness of communication on line (Social Medias, customer services). Diagnosis – Value chain 19
- 20. DECISION CREATING an exchange and kickstarter digital platform with innovative pedals … FOR original and « vintage » players … IN ORDER TO face the threat of substitutes 20
- 21. DECISION • Comes from the diagnosis showing that there is a threat from substitutes products • Structure => Construct => Performance The market structure (low attractivness) influences our behaviour (killing the substitutes threat & focus on the « vintage » segment) which will affect our performance (catching additional market shares / concentrate the « vintage » market) 21
- 24. Marketing Implementation SEGMENTATION TARGETING • BossbyU: Intermediate + Professional + Early adopters • Second Hand: 3 levels + original and vintage electric guitar players Level Innovation +++ Innovation - - - Beginners Exchange plat Exchange plat Intermediate Exchange plat + BoosbyU Exchange plat Professionnals Exchange plat + BossbyU Exchange plat 24
- 25. Positionning • PRODUCT : website: second hand + collaborative platform • PLACE : online • PRICE : BossbyU : Premium product (more expensive) Old pedal corner: wide range of prices • PROMOTION Viral promotion Physical promotion Teasing on social networks Celebrity endorsement… Teasing on specialized stores Promotion on festivals/ concerts… 25
- 26. • DIGITAL STRATEGY Marketing using tools like Search engine marketing, youtube, facebook, twitter, Instagram, newsletters, forums etc… • CREATING DIFFERENT ZONES Having “Experiment and Experience”, “Connect”, “Boss of the Month” • INNOVATION First marketplace of its kind, crowd sourced innovation center, Perennial flow of great ideas- continuous R&D at Zero Cost • CREATING COMMUNITIES We plan to create not only a market, but a personal connect between users and musicians, wherein they can get positive feedback. 26 Digitalization
- 27. COMMENTS • Innovation via digitization is key to our implementation strategy. • We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. • The website would be set up to connect buyers and sellers of used products. • Next we will create an interface so that artists can connect, record their effects and upload it on our platform. • We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. • Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. • This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. 27 Digitalization
- 28. COMMENTS • We would be setting up our website and simultaneously also launch complementing applications on the major app stores. • We would also promote our community on Twitter by having dedicated weekly handles. • Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. • Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. • Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. • Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. • Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. • Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. • We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section. 28 Digitalization
- 30. COMMENTS SUPPLIERS : - No big changes in the Supply Chain Management, - Boaden Suppliers contacts > In case a new components has to be used (not already used by boss in manufacturing their pedals) + In case Boss’ Parteners suppliers don’t provide these kind of components, - Therefore > Additional costs of procurement, BOSS MANUFACTURING : - Just in Time strategy > No storage > no additional costs - Assemblig in Japan factory (brad image « Made in Japan » concept) - Finished products and Packaging at Boss Japan’s Factory, DISTRIBUTORS : - No changes > Keep partnership with the previous distributors 30 Supply Chain Implementation
- 31. COMMENTS CLIENTS: - Boss Manufacturer has to implement samples of the chosen pedals before selling the final product. - These samples have to be validated and confirmed by the client, in case there is something to modify… - Additional costs for sending samples to the owner. TRASPORTATION : Outsourcing Logistical pocess. 31 Supply Chain Implementation
- 32. Finance Implementation Discount Project Rate 20% Global Market Growth 3%,5% Market Share 8%, 9%, 10% ‘Boss By You’ Share 5%,6%,7% Initial Investment: $1.350.000 Positive NPV, profitable project 32 FY 2016 FY 2017 FY 2018 Revenues $2.160.000,00 $3.003.480,00 $4.088.070,00 COGS $162.000,00 $225.261,00 $306.605,25 Pat&Lic $21.600,00 $30.034,80 $40.880,70 Gross Profit $1.998.000,00 $2.778.219,00 $3.781.464,75 SG&A $802.008,00 $1.115.192,12 $1.517.900,39 Income $1.195.992,00 $1.663.026,88 $2.263.564,36 Tax (35%) $418.597,20 $582.059,41 $792.247,53 Net Income $777.394,80 $1.080.967,47 $1.471.316,83 Cash Flow $647.829,00 $750.671,85 $851.456,50 DCF $2.249.957,35 NPV $899.957,35
- 33. COMMENTS • Revenues: Average Price $200 (for the 3 years) x Quantity • COGS: Average Cost $15 (for the 3 years) x Quantity • Patentes and Licences: $2 per Unit Sold • SG&A: Took Roland % that is 37,13% from revenues • Tax: 35% • Discount Rate: Took a 20% rate in order to satisfy shareholders 33 Finance Implementation
- 34. Synthesis X 34
Editor's Notes
- Bargaining power of suppliers: ELECTRONICAL PARTS: Breadboards, jumper cables, resistors, capacitors, transitors, potentiometers, jack and others Market Shares: 17,5 + 9,5 + 8,5 + 2,7 + 2,3 + 2,2 + 1,9 + 1,5 + 1,5 + 1,3 HHI 495,97 LOW CONCENTRATION BATTERIES: 9 Volts PP3 Market Shares: 38,7 + 26,7 + 13,4 + 12,5 + 1,5 + 0,6 + 0,5 + 0,3 + 0,3 + 0,2 HHI 2549,47 HIGH CONCENTRATION ENCLOSURE STOMPBOX: Metal and/or Plastic enclosure pedal boxes Market Shares: HHI WIRE Market Share: 24,96+10,38+7,55+2,74+8,9+(5*3,69)+(15*1,14)+(110*0,0009) HHI= 963,04 LOW CONCENTRATION Barganing power of buyers: Specialized websites : Sonovente, Woodbrass, Thomann... (over 200 worldwide) Generalist (?) websites : Fnac, Amazon (over 500 worldwide) Market share = 50% + Exclusive dealers (partner, premium, platinum) : Home Studio, Music Lab (over 4000 worldwide) Market share = 50% IHH = 700(50/700)2 + 4000(50/4000)2 =3,57+0,625 = 4,2 Competitors: Main actors including Boss : Fender, Ibanez, Digitech, Boss market share : between 5-10% each Several « middle » actors : Electronics harmony, Dunlop, tc electronics, line6, JHS, Wampler, Visualsound, Strymon, fulltone, Earthquaker, Zvex, Voodoolab, catalinbread, Madprofessor, Pigtronix, Keely electronics, T-rex 1% each 423 other actors with very limited market share between 0,01 and 0,1% IHH : 4.(7,5)2 + 17.(1)2 + 423.(0,05)2 = 243 = very low concentration En 2014, les revenues des accessoires de guitares représentaient 12% du total revenue du groupe Roland, soit 12%*128940000 = 15472800 La même année, le total revenue sur le secteur des pédales à effet était de 195 000 000 =>> 8% de part de marché de la part de Boss sur le marché des pédales à effet THREAT OF NEW ENTRANT: Level of threat from new entrants is low. Not a high level of threat from new entrants as market is mature Size of the US market annually is 12 million units. Stomp boxes have long product life It is not a highly specialized product requiring great skills to manufacture Hence easy for new entrants to enter the market However, there are already more than 400 companies selling stomp boxes, Hence it makes less business sense for new entrants to enter a new niche market without new technology or radical product differentiation. It would be more apt for a company in the music accessories business to enter the market as it would be a product line extension and they could sell it with their other line of products. New entrants are generally guitarists as they understand music well and venture out to build their own stomp boxes. They sell primarily online themselves on their own website as they cannot achieve mass distribution on their own and don’t generally pay the distribution costs which are played by major players. A few of the known new entrants, who have entered the industry in the past 3 years are as follows Adventure Audio / Amzel Electronics Threat of subsitute: Kits DIY (Do It Yourself) Many Kits are available for cheap prices. They are designed to give musicians the opportunity to build their own effects pedals. Kits are available on many websites specialized in Kits DIY and their instructions are very easy to follow step by step. All you need to provide are hand tools, a soldering iron and solder. All effects pedals operate on a 9V battery. Some dealers are selling packs with all the raw materials needed. Hand Pedals Some pedals are made "by hand" in a small workshop. The production is made in small series. Their price is about two to three times more expensive than an industrial pedal because of the labor cost components that are often of better quality. Mobile Apps A well-maintained pedal collection can take years to compile and requires more than a fair share of effort to transport, set up and control while playing. App developers have taken some of the hard work out of pedal set up with digital stompbox and effect pedals for the mobile device. Mobile stompboxes and effect pedals offer the ability for plug and play capability, giving access to some great effects with comparable control in comparison to physical pedals. Easy to use, these mobile apps are innovative and most of all fun. According to a lot of users, Boss is the most reliable brand among all the others. Boss is the most used by professional and famous guitarists worldwide. This is one reason why users of Pedals choose Boss Brand. They would like, as an innovative ideas to add on the pedals product, things that provide less use of cables to register the sound (without using the PC). Also, they would like multieffect pedals with better quality. The current multieffects pedals don’t have good qualities. The reason users are obliged to buy different pedals for the differents effects desired
- No stars products detected in the range proposed by our company, as knew, the market growth is really weak, but certain trends can boost this growth on particular segment, for example, Vintage products are very demanded.
- Primary Activities : Inbound Logistics > Receiving, Assembling, Storing and disseminating * Boss is receiving raw materials imported from Taiwan. * They put the assembly system in the process by their own. * They are storing by forecasting the Demand. * Roland is very miticulous when choosing raw materials and their sources, for the good quality of the final product. Operations > * Transforming the inputs into the final product form. * Since Roland Corporation is Japanease company, we can suppose that they have very effective Production, use of different supply chain tools, Project Management... * Roland is exigent in terms of using new and efficient corporate technologies. * Factories in Japan, Italy, US and Taiwan. Outbound Logistics > * Finished products are produced in Boss Plant (Roland), and then are directly sent to the different dealers around the world. * Boss relies on external logistics companies to export the products, such as « Varsity », a logistic company in US. Marketing and Sales > Concerning the product distribution channels, Boss doesn’t have neither physical shops nore is selling on line. Boss uses only indirect distribution networks around the world, by making many partnerships with different dealers who are selling online, or through phisical shops. It is a B2B system. Service > * Barriere between consumers and the company. No real contact. Users look for advice on internet by asking old users of Boss pedals, watching videos on Youtube… Few videos are available on the website of the brand but not very useful. *Presence on Social network but not very active. Support Activities : Firm Infrastructure > * Infrastructure owned by Roland factory in Japan. Sophisticated and modern. Human Ressource Management > * Employees : More than 2699 * Suggestions of jobs and interships o the website of the company. * Working by teams. Technology Developpment > * Using high technology, Working with IBM * Quality raw materials * Always looking for manufacturing the best quality of pedals, and innovative ones - Roland Slogans : - Inspire the Enjoyment of Creativity - Be the BEST rather than the BIGGEST - Cooperative Enthusiasm for all Stakeholders - Boss Slogan : A sound innovator * Pedals in several different colours and different effects for each sound * The basic design has remained unchanged for over 25 years. Procurement policy > Miticulous choice raw material of high quality to a better sound from Taiwa factory.
- Comes from the diagnosis showing that there is a threat from substitutes products Structure => Construct => Performance the market structure (low attractivness) influences our behaviour (killing the substitutes threat & focus on the « vintage » segment) which will affect our performance (catching additional market shares / concentrate the « vintage » market)
- Comes from the diagnosis showing that there is a threat from substitutes products Structure => Construct => Performance the market structure (low attractivness) influences our behaviour (killing the substitutes threat & focus on the « vintage » segment) which will affect our performance (catching additional market shares / concentrate the « vintage » market)
- Innovation via digitization is key to our implementation strategy. We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. The website would be set up to connect buyers and sellers of used products Next we will create an interface so that artists can connect, record their effects and upload it on our platform. We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. We would be setting up our website and simultaneously also launch complementing applications on the major app stores. We would also promote our community on Twitter by having dedicated weekly handles. Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section.
- Innovation via digitization is key to our implementation strategy. We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. The website would be set up to connect buyers and sellers of used products Next we will create an interface so that artists can connect, record their effects and upload it on our platform. We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. We would be setting up our website and simultaneously also launch complementing applications on the major app stores. We would also promote our community on Twitter by having dedicated weekly handles. Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section.
- Innovation via digitization is key to our implementation strategy. We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. The website would be set up to connect buyers and sellers of used products Next we will create an interface so that artists can connect, record their effects and upload it on our platform. We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. We would be setting up our website and simultaneously also launch complementing applications on the major app stores. We would also promote our community on Twitter by having dedicated weekly handles. Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section.
- SUPPLIERS : No big changes in the Supply Chain Management, Boaden Suppliers contacts > In case a new components has to be used (not already used by boss in manufacturing their pedals) + In case Boss’ Parteners suppliers don’t provide these kind of components, Therefore > Additional costs of procurement, BOSS MANUFACTURING : Just in Time strategy > No storage > no additional costs Assemblig in Japan factory (brad image « Made in Japan » concept) Finished products and Packaging at Boss Japan’s Factory, DISTRIBUTORS : No changes > Keep partnership with the previous distributors CLIENTS: Boss Manufacturer has to implement samples of the chosen pedals before selling the final product. These samples have to be validated and confirmed by the client, in case there is something to modify… Additional costs for sending samples to the owner. TRASPORTATION : Outsourcing Logistical pocess.
- Innovation via digitization is key to our implementation strategy. We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. The website would be set up to connect buyers and sellers of used products Next we will create an interface so that artists can connect, record their effects and upload it on our platform. We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. We would be setting up our website and simultaneously also launch complementing applications on the major app stores. We would also promote our community on Twitter by having dedicated weekly handles. Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section.
- Innovation via digitization is key to our implementation strategy. We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. The website would be set up to connect buyers and sellers of used products Next we will create an interface so that artists can connect, record their effects and upload it on our platform. We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. We would be setting up our website and simultaneously also launch complementing applications on the major app stores. We would also promote our community on Twitter by having dedicated weekly handles. Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section.
- Revenues: Average Price $200 (for the 3 years) x Quantity COGS: Average Cost $15 (for the 3 years) x Quantity Patentes and Licences: $2 per Unit Sold SG&A: Took Roland % that is 37,13% from revenues Tax: 35% Discount Rate: Took a 20% rate in order to satisfy shareholders
- Innovation via digitization is key to our implementation strategy. We will operate on the online platform by integrating and providing a solution for the buyer, the seller and the next door musician, who is looking to make it big. The website would be set up to connect buyers and sellers of used products Next we will create an interface so that artists can connect, record their effects and upload it on our platform. We will then have users vote for the best tune, and with the help of our experts, we will finalize which effects to produce. Just imagine, an artist sitting in Brazil, being able to share his work with a man sitting in Hong Kong, and adding a steady stream of income to himself. This would provide us truly unlimited source of innovation and creativity. All the R&D coming from those who matter to us - People. We would be setting up our website and simultaneously also launch complementing applications on the major app stores. We would also promote our community on Twitter by having dedicated weekly handles. Advertising via Facebook, targeting Musicians, Guitarists and similar like minded music groups. Using the power of google, and deploying search engine marketing to have our results show up on the banner ads and relevant searches. Targeting various music forums which are frequented by musicians and having our representatives on live chat sessions to create a better connect and garner visibility for the website. Creating a “Connect” section for the users within the app, to better facilitate the buying and selling of the second hand products. Creating an “Experiment and Experience Zone “ to have users hear and rate the effects produced by different artists. Based on voting we could have the “Stompbox of the Month”, or “Artist of the month” and also provide incentives to musicians winning these. We would try to build a community and have the latest happenings in the music world also be shown in the “You’re the Boss” section.