Introduction
Blue Sky Satellite Communications CC (Blue Sky) is a communications solutions and satellite service provider in Africa with its operations base in South Africa. The company provides customized satellite phone and terminal packages as well as customized airtime packages to suit the client’s needs.
By focusing on its strengths, its key customers, and the underlying values they need, and the introduction of broadband technology, Blue Sky Satellite Communications will meet the following goals: increase sales to more than $20 million in three years, improving the gross margin on sales to greater than 30%, and improve inventory turnover to eight turns by Year 3.
This business plan is the mainstay of our strategy. It renews our vision and strategic focus of adding value to our target market segments: the corporate business and high-end home office users, in our horizontal market. It also contains the steps to improve our sales, gross profits, and profitability.
The Company
In 1996, Pedro M G Camacho started “Hyper Parts Com Division” after purchasing a satellite phone from COMSAT. He was so impressed by the capabilities and potential of the satellite phone that he decided he would start his own satellite communications business. In 1998, the firm changed its name to Blue Sky Satellite Communications. It has since had two good years of legal trade, with the prospect of enormous growth. As Pedro saw Inmarsat as a niche market and reacted well to it, the same outlook has been given to VSAT, as it is the next logical step in the development of the satellite communications industry.
Blue Sky Satellite Communications has been built on the assumption, that the management and development of broadband service will be the most important steps of communication since the invention if the telephone. We have been the service provider for Inmarsat VSAT services and are now at the forefront in Africa, which is the most connected continent in the world. Our goal, in short order, is to build as many links as possible within Africa. This can only be done by partnering local telecommunications firms, private or state-run.
Our goals will be achieved by focusing on the following keys: increasing Inmarsat use, developing the VSAT markets, increasing marketing in Africa, outsourcing quality services, introducing better value-added products to end users, maintaining and growing customer service.
Blue Sky Satellite Communications, located in Bedfordview South Africa. It is located only 15 minutes away from Johanessburg International Airport and 15 minutes away from Sandton (a suburb of Johanessburg).
The company currently has 4 employees, with 1 director. The company intends to grow the company by at least 20 employees in the near future. Sales personnel, customer service which is available 24-7 and technical support will all be added. Marketing and promotions will be outsourced to specialized businesses.
Our product comes from different Land Earth Stations. In most cases, our relationship is direct with the manufacturer.
Market
Our products and services are one of the most highly sought-after commodities due to the increase in Internet use for information and sending messages. With the advent of broadband, we expect the growth to be exponential, more and more people and corporations will invest in faster and better communications systems to make them more productive and to show a better bottom line.
Satellite services are expected to grow by 20% annually in the Middle east and African markets. The market for satellite services is valued at approximately $12 billion in year 1. Blue Sky hopes to tap into this market and will be able capture a 10%-20% market share.
One of the most talked about aspects of new business is the expected market growth in Telecom’8217;s sector. With the emergence of new broadband services, and the privatizations of many Telecom businesses (previously run by government), we can see that future growth will be far greater than any projections.
We will offer two types of hardware so our customers can be more productive. Inmarsat products, such as the Mini-M Sat Phone and the M4 Global Area Network terminal, are poised to maintain a growth pattern over the next 24 months. Re-launches of Iridium products will have a similar impact.
This market exists, and we are in a good place to seize this opportunity. The VSAT market has just appeared last year, and the sentiment is that it will grow even further in Year 1 and Year 2.
Blue Sky is surrounded by a variety of local competitors. They are able to give us the motivation and determination to improve customer relations. We learn from their mistakes and maintain a good relationship. Blue Sky has spent a lot of time focusing on the future trends within the industry in order compete effectively with these companies. This will allow it to position itself to be the market leader in this sector. The following are the top trends.
To maintain the recurring monthly income in top form, all customers will require maximum attention through strong customer service. Many customers will benefit from fast service through the customer care center and Internet interactive chat.
The market’s most important and obvious trend is falling prices. This has been true over the years, but it seems that this trend is accelerating. We are seeing major suppliers and manufacturers putting together systems with incredible specs.
Another trend is ever-greater connectivity. Everyone wants to access the Internet. Small offices also want a local area network. Many small offices desire their LAN to be connected with the Internet. Blue Sky will face the challenge to offer customized service packages that provide all desired features at an affordable price.
The company is focusing on the small and large businesses that need a wide variety of services packages that have lower costs per airtime than other competitors.
Strategy & Implementation
- We are committed to providing support and service. Blue Sky will not simply sell the service. We will keep in touch with our clients on a regular basis to provide important information about the service or product that has been delivered.
- Our goal to build long-term relationships with our customers. Since recurring income is the main objective of this business, it is important to keep as many clients in touch as possible. We must keep in touch with our customers. To keep our clients informed about all the happenings in the market, we send out emails and newsletters.
- Blue Sky’s success will depend on its ability to focus on the right markets. Blue Sky is a long-standing business that has seen many changes over the years. We are also familiar with the challenges of new markets and can make timely and efficient decisions regarding them. This allows us the ability to pay attention to the market segment in order for it’s needs to change.
- Differentiate and fulfill the promise. We aim to be different from other service providers. We want to be Africa’s first choice for satellite services. We want to offer rural telephony services and pre-paid telecommunications, as well be involved with education of our users. We want to live up to our commitments and help those who really need it.
Financial Projections
The company is expecting to make $62.2 million by the end of year three, with a gross margin 31.7%. Controlled SG&A costs will create a very strong net margin. To achieve a regional presence within Africa, the company will invest $6.2M in long-term investments over the next three years.
1.1 Mission
Blue Sky Satellite Communications was established on the assumption of management of satellite technology, and the development broadband services as the most important step of communication since the invention in the telephone. As Inmarsat and VSAT service providers, we are proud to have been able to place ourselves at the forefront of Africa, which is still the most remote continent in the globe. Our goal is create as many African links as possible in a short time. This will be possible by partnering up to local telecommunications businesses, private or state-run. So, all our customers can have legal access to high-quality communication no matter where they live.
Blue Sky Satellite Communications is bringing satellite communication down to earth.
1.2 Keys to Success
- Increase Inmarsat airtime usage.
- Develop the VSAT marketplace.
- Marketing in Africa: Increase your marketing efforts
- Quality services can be outsourced.
1.3 Objectives
- The third year saw sales surpass $20 million.
- Keep the gross margin at 30% or higher and keep it there.
- By Year 2, you can sell $4 million worth of support, training, and service.
- Get inventory turnover up to six times next year, seven times in Year 2, eight in Year 3, and eight times in Year 2.