Investor analysis Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1061

INVESTOR ANALYSIS

Investor analysis

Name of product or service

Type or product &/ or service idea

Summary of product &/or service idea

Critique of product &/or service idea

Amount invested ($)

Ranking (/5)

Justification for your investment decision

Delivery service

Food delivery to consumers on the high end

Delivery of foodstuffs to restaurants, using advertisements through the websites and posters as a marketing strategy. The service is an extension because it is modification of the food service to entail delivery to other customers and institutions.

Some foodstuffs are seasonal and not marketable in some weather conditions thus would result in poor sales for example winter and summer customers eat and order food differently. In other instances, some customers find time to make their own meals that they pack to their work places and therefore not require delivery of food.

Price for two cars $10,000

Petrol expenses per day $50

Advertisements

Uniform expenses $200

Its practical and feasible looks like a long time profitable investment. Delivery of food stuff to busy customers ensures maximization of sales hence increase in profits and also the use of posters on notice boards help attract customers. The petrol expenses of $50, is affordable with adequate consideration of future fluctuations in fuel prices and profits can still be realized. Finally, uniforms are fixed assets hence the $200 allocation that is adequately feasible for an extended period as the business focuses on being fully established.

Restaurant

For the allergic

Making of food specifically for the allergic customers is done by professional cooks and experienced staff. Starting operations involve establishing a fully furnished restaurant in a suburb and marketing themselves through going to organized events within the neighbourhood and also using leaflets to reach its customers.

The top 5 allergies targeted are not mentioned and the restaurants location only targets middle and high classes of the society. It would not maximise profits due to the small target market and shifting locations used during marketing. The age bracket also is discriminatory and lives out a big potential customer base below the age of 20 years and above 35 years old who are known to have allergies due to age and also bad dieting.

Entry meal

Main meal

It’s slightly feasible and since it has a small customer base and target market. Profit maximisation would be an issue thus making it a bad investment. The entry meal is $5-$12 because its entails light meals and not really compulsory to all customers while $10-$30 is reasonable since it’s the main meal of the day and orders can be made in advance if its a special meal.

Tracking

GPS tracker device on animal collar

It’s a device used for tracking animals and pets. The apps designed are also available over the internet and can be downloaded on smart phones for easy tracking

The product is limited to customers who keep pets or animals and also advanced smart phones enter the market when expensive whereby not everyone with pets can afford can afford. Advertisements and other marketing strategies if not used the product can not be marketable or attractive to customers. Hidden costs like training of customers on the devices use has not been mentioned and situations where the animal dies what happens to the customers money or device has not been highlighted

GPS Micro chip $13-25

Collar(leather)

Self charging battery $3-5

Tracking programs $1000-4000

Office Equipment $12000

APSs $4000

It’s unfeasible and too expensive to start and run. It would take a long time to train and market the device to non pet lovers or those who would like to invest in it due to its unpopularity and hidden costs. The collar is $1-3 because of the long lasting quality of leather to be used; also the equipment and programs to be used are fixed assets that are bought once hence the costs to ensure high quality service delivery and accuracy. The self charging battery at $3-5 to ensure that it does not go off while the animal is being tracked.

Earphone

Wi-Fi earphone

The earphones are water proof. The products are also made according to the customer ear size hence making the products unique.

The product idea faces the challenge of penetrating the market because of too many similar products in the market.

$ 50 per earphone which also includes logistics and manufacturing fee.

The product idea is averagely feasible considering that they have established a competitive advantage by developing unique earphone’s customized to the size of the client’s ear size. The amount invested per earphone is however high and they would have to engage intense marketing strategies to convince customers to buy their unique products rather than their competitors already well established in the market so as to ensure high returns as well.

Household friend shutter

Household friend shutter solutions

The product is a multifunction shutter for household that has direct contact with sunshine and gains energy directly from the sun. The multifunction results from a combination of solar technology, the function of shutter and clotheshorse. The shutter blades are designed from stainless steel hence making them stronger than normal. The solar thermal collectors are installed on the face outside blades of the shutter. The energy collected is controlled by a switch. The idea is in response to the enormous increase in the global demand for energy due to population growth and industrial development.

The idea is greatly viable but faces the weakness of limited development and research work, product range, managerial skill and experience plus operating issues of equipment and plant. The idea is also faced with threats of failure to deliver new product, increased sales of competitor products. Competitors may come up with a cheaper set up and labour costs in addition to hindrances of foreign government trade policies.

Shutter-$230/ sq. Metre

Solar panel-$3100

Installation of shutter-$100

Installation of solar panel-$200

Office space rental-$10400

Wages-$2400

Office equipment and fixtures-$5000

Website and communication-$5000

The business idea is feasible following the fact that solar energy is safe, stable and widely used in households. Furthermore, the shutter could flip into clothes drier hence saving space for household without a balcony. The project has a potential to penetrate in the international market. The potential demand is likely to increase using marketing strategies such as the internet and can take advantage of the fact that competitors are not strong in the same market.