E-ENTREPRENUER

E-Entrepreneur
Student’s name
Institution

Table of Contents
TOC o “1-3” h z u Executive summary PAGEREF _Toc503850207 h 3Introduction PAGEREF _Toc503850208 h 4Product description PAGEREF _Toc503850209 h 6Market Environment – Issues/Opportunities (Blue Ocean) PAGEREF _Toc503850210 h 7Strategic Analysis PAGEREF _Toc503850211 h 9Market analysis PAGEREF _Toc503850212 h 10Market segmentation- consumer markets PAGEREF _Toc503850213 h 10Geographic segmentation PAGEREF _Toc503850214 h 10Demographic segmentation PAGEREF _Toc503850215 h 10Behavior PAGEREF _Toc503850216 h 11Financial analysis PAGEREF _Toc503850217 h 11Pricing the product vs completion PAGEREF _Toc503850218 h 11Revenue stream PAGEREF _Toc503850219 h 11Capital required and RIO PAGEREF _Toc503850220 h 12Budget, variable and fixed costs PAGEREF _Toc503850221 h 12Break-even analysis PAGEREF _Toc503850222 h 12Conclusion PAGEREF _Toc503850223 h 13References PAGEREF _Toc503850224 h 14Appendix PAGEREF _Toc503850225 h 17

Executive summaryToday, we are living in a swiftly changing world in regard to technological innovation. The ever-increasing growth implies growing demand for safety as well as security both at home and in businesses. With technology criminal activities has also increased and become sophisticated and therefore there are growing needs for business, and home monitoring solutions (Conway, 2011). Cameras and more so CCTV cameras are a vital tool that plays an ever-increasing role in the home and business security. According to Danis, (2004), some of the roles of the cameras include monitoring at roller doors, in entrance lobbies as well as entrance to carparks among many other places.

CCTV cameras have numerous benefits such include the visual identity confirmation of visitors and staffs at all access points. This complements the procedures of access control and at the sometimes provide security (Shaw, 2010). It is for this reason that we intend to analyze the market in which we are planning to launch our product VR+CCTV. VR+CCTV is an inventive new design for moving CCTV cameras. The new product target globe market however presently will concentrate in North America market.
Problems and solutions
The product is designed to address some of the shortcomings of the current products on the marketplace on CCTVs such include poor quality, short lifespan, and frequent failure. Instead, the product offers easy maintenance and ultra-long life. The production of our product is now past working prototype, and investment has been made for mass manufacturing. The product has earned robust interest from North America distributors. The product has additional features such as real-time recording and observation of activities and events in areas where the alarm has been triggered. Such features facilitate help in response and identification of intruders.
To attain successful introduction of the product in the market, we have invested much in market research this includes analyses of factors such as Political, Social, Economic Technological, Legal and Environmental this provides a better understanding of North America market. For a better understanding of the market SWOT analysis and Porter’s five force model will also be used in relation to our product. After analyzing the feasibility of the business financial analysis will be key to determine the viability of the business. Business model canvas will describe the product value proposition, customers, infrastructure, and finances. This will aid us I aligning our activities to illustrate potential tradeoffs.
IntroductionAccording to Gill & Springs (2005), CCTV has become a significantly vital security measure in the prevention of crime. According to recent literature, it is clear that in the wake of swiftly changing world CCTV has made it possible for business owners, police as well as homeowners to respond and deter incident of crime (Armitage, 2002). According to the theory of situational crime prevention perception of surveillance encumber crime commission (Clarke, R1980). The contribution of CCTV cameras is more explicit in security management. According to McLaughlin and Muncie (2012) surveillance is having the capacity to monitor public social behaviors for the purpose of population and crime control. CCTV surveillance enables police as well as other law enforcers to easily conduct a post-incident analysis (Arrington, 2006).
Since the DSX Access Systems, Inc. has been in business for a considerable time, it has a wide reach of customer due to its reputation in the marketplace (“DSX Access Systems, Inc,” n.d.). The short-term objective of launching the VR+CCTV in the marketplace is to facilitate fast growth through increased sales and thus profitability. The long-term goal of the company is to dominate the market with innovative products in order to remain relevant and compete competitively in the marketplace. The niche opportunity identified in the market or the need or customer problem is that the technologies used by the competitor to manufacture the current cameras offer a short working life. In reals sense, most of the cameras’ in the market overheat and thus their reliability is an issue (Gin, & Hsu, 2004). Lack of reliability and durability implies that suppliers to regularly replace CCTV cameras as per warranty agreement this heavily erode profitability and reputation. By launching this product, the company focuses on growing substantial industry credibility since the product majorly focuses on the consumers’ needs. The product is ultra-reliable and has a long life the camera can pan right/left, tilt down/up as well as zooming in and out. Building on feedback from market research the company has designed the camera targeting supermarkets, petrol stations, casinos, retail malls, and warehouses among others. The company first target market is the North America security market.
The company has some roots in the market as it sells its minor cameras to some middle size distributors within the market. In regard to market the company target to diversify to developing economies with time and eventually to become a multinational company in the production of VR+CCTV. By utilizing about ten mid-size security distributors the company target to attain about 65% of the North America market penetration. By its route alongside bottom-up analysis the company estimate to gain about 5% market share through the launch of its first innovative product which will be followed by a series of others. And to remain relevant in the market the company aim at providing upgrade and a new version of cameras with additional functionality each year alongside different makes. The company aims to reach other distributors through a combination of approaches. The first one is through online marketing strategies and plan and the second one is through traditional one-to-one tech marketing and sales approaches. This will allow combination of marketing channels namely social media marketing, hands-on demonstrations, and roadshows. To withstand the marketplace competition the company to attack the market with many well-known and large market players. Such market leader includes Apple, Samsung, and Panasonic among others.
Product descriptionThe company DSX Access Systems, Inc. is planning to launch an innovative virtual reality CCTV. The innovation and technology used in design and development of this product will greatly benefit business owners, managers’ police and other law enforces in security management (Santos, 2016). There exist few if any other products in the market with such high functional capacity as with VR+CCTV. VR+CCTV is a 3D VR IP camera that is designed for the indoor application. This camera is a 960p HD IP camera that can be used in a networked environment as it supports WIFI connectivity (“360 Degree Panorama CCTV Camera Wifi 960p HD Wireless VR IP CameraRemote Control Surveillance Camera P2P Indoor Cam,” 2017). Further, it also supports motion detection this implies that when a motion is detected within the surveillance area it triggers the alarm. Besides, the camera supports the electronic PTZ alongside mobile remote view as well as network cloud service. The camera have the following specifications a 1MP 1.3MP, 2.0MP, 3.0MP and 5.0MP has a sensor resolution of 1280×720, 1280×960, 1920×1080, 2048×1536 and 2592×1944 respectively (“3D VR Camera->CCTV Camera,Security,Surveillance,DVR Manufacturer, IR-III Camera, Speed Dome PTZ,” n.d.). It has fisheye lens a PTZ that is horizontal 0 degrees to 360 degrees, perpendicular negative 90 degrees to positive 90 degrees. The camera has a video compression of h.264 it also supports a network interface of RJ45 10m/100M adaptive Ethernet port. In regard to storage, it supports micro SD card day and night vision IR-Cut Auto the IR distance covered by the camera depends on the environment of use. It has a minimum illumination of 0.1 Lux @(F2.0,AgC ON), 0 Lux with IR and a power consumption of 3W maximum. The camera power supply is DC 12V/1A and the working temperature ranges between -10C-50C ≤ 95% it also has out condensation.
Market Environment – Issues/Opportunities (Blue Ocean)Based on statically data from HIS Markit, it is projected that the installed base of surveillance in North America will maintain steady and constant growth.in the year 2012, the installed base surveillance cameras were about thirty-three million at the end of 2016 the installed base cameras grew by a big margin of about sixty million (“Report: Installed base of security cameras in North America expected to reach 62M in 2016,” n.d.). Despite the growth, the product mix of the security cameras has kept on changing due to the adoption of the emerging technologies and thus the production of new innovative products. For instance network cameras in 2012 accounted for about 17% of the total installed cameras the number was expected to double by the end of 2016 to reach about 35% in the market (“Surveillance video storage market worth 1.7B USD in 2017,” n.d.). Furthermore, innovative CCTV cameras such HD-CVI among others have increased their level of adoption since the level grew from 1% in the year 2012 to about 13% in 2016. This is a significant increase and this implies that with a successful launch of our product in the market the level of adoption is likely to be high. Such significant shift in the market has been driven by several factors such as the erosion of camera price this drive the shipment of product in North America up. In the year 2015, the estimated average selling price of a camera was expected to be around 45% of peak in the history of CCTV cameras. This implies that buyer could afford to buy and install CCTV cameras and expand installation when needed. The other factor is the emergence of new technologies which increase the capacity and functionality of the cameras. Such products that have the capacity to record surveillance video are cost effective thus enabling commercial and retail insulations (Beck, & Willis, 1999).
Virtual reality CCTV cameras technology will mostly concentrate in North America as the target market. This is because CCTV market has shown robust growth in this market. Furthermore, as the hypercycle demonstrate virtual reality as at 2016 is and was amongst the trending technologies and thus VR+CCTV has high priority for organizations embracing business innovation. According to a forecast by HIS Markit, about one hundred and thirty million CCTV cameras that have the capacity to capture video will be ship in 2018 globally. The numbers have increased drastically from 2006 when the shipment was about 10 million this implies the global market for CCTV cameras is growing at a fast rate than ever before. The increasing demand for CCTV cameras can pure be attributed to higher specification on the new model of cameras as compared the previous iterations. Such include uplift in specification this because factors such as cloud computing and networking have necessitated innovation in the industry.
In regards to the economy, North America is amongst leading region in the world economy. North America implemented the free trade agreement and thus the region has become an economic leader in regards to globalization process (ReportBuyer, 2017). The economy of North America is among the most technologically developed and largest economy. Business in North America enjoys flexibility in terms of expansion and innovation (Haynal, 2004). This implies that our product will face a stiff competition in the marketplace. However, since its features and functionality stand out the product is up to standard and hence it has a quality to dominate the market. Other than conforming to the quality standards and policies North America market doesn’t have any other legal issues since the region has a free trade agreement.
Strategic AnalysisThe SWOT analysis will help us to analysis all the strengths of the product as well as the opportunities in the market. Furthermore, it will also help in the analysis of the market threats and weaknesses (Shinno, Yoshioka, Marpaung, & Hachiga, 2006). The DSX Access Systems will launch a product that combines the technology of virtual reality and CCTV. The strengths of the product include advanced technology. Due to the rising demand for the innovative product in the market due to the rising threat to public security as well as terrorist attack. Advanced technology will be used for security surveillance to monitor public areas such as banks, streets, malls as well as the government building. Another strength is that the company have invested in development and research on the CCTV cameras thus it has a competitive advantage. Due to the competitive nature of the CCTV market, the company has established a market opportunity to design and manufacture a product which is dependable and durable. However, one of the treats in the North America market is the presence of intense completion which may affect the company pricing strategy negatively. One weakness associated with the product is compatibility with the existing platforms.
Pestle analysis identifies the different external economic, political, environmental factors, legal issues among other that might affect the launch of our product in the market. North America enjoy political stability and the involvement of government in market boosting. There is Human capital availability, increasing consumer purchasing power thus prospected to be large CCTV market. On technology factor Biggest CCTV market growing demand for CCTV and rapid growth of E-commerce.
Porter’s five forces analysis show barriers to entry such include brand identity, economies of scale, product differentiation. Industry rivalry includes factors such as the fixed cost of VR+CCTV production, the growth of the industry, exit barriers among others as highlighted in appendix three. The threat of substitutes includes the modifiability of substitutes with technology growth. Suppliers and buyers bargaining powers also affect the switching cost as well as suppliers and buyers concentration.
Market analysisMarket segmentation- consumer marketsGeographic segmentationDSX Access Systems, Inc. will target the North America market as the company is located in Dollars Texas it will be able to effectively serve the entire region. The current population of North America is 362,575,357.with a population density of 19 (P/km2) this makeup about 50 people per mi2. About 83.3 percent of the entire population is urban and the median age is about 38.1 years (“Population of Northern America (2018) – Worldometers,” n.d.).
Demographic segmentationIn 2014 the number of CCTV cameras per a thousand people was about 125 in the US. It is projected that by the year 2025 North America will be leading in the industry in surveillance camera adoption and use. One of the factors that are fueling such drastic growth in this market segment is product innovation (Lyon, 2007).
Due to increased production of CCTV cameras, the pricing has reduced and is expected to maintain a steady decline and hence this provides citizens with higher purchasing power.
BehaviorDue to the increase in criminal activities, terrorism, and other antisocial behaviors, there is increasing demand for video surveillance (Coleman, & McCahill, 2010). And therefore the introduction of virtual reality technology in surveillance cameras significantly increases the functionality of the security system and hence high demand (Biocca, & Levy, 2013).
Financial analysisPricing the product vs completionDSX Access Systems, Inc. has decided to set the price of a single camera at $27.00 this is after factoring all the associated cost of production such as; indirect labor, variable cost, marketing, advertising, utilities, research and development, supplies among another cost that affect the pricing of a product (Shephard, 2012). The price of the product is fair and affordable given its advanced functionality and technology used. Regarding competition, effective online marketing will greatly aid in creating product awareness (Mohammed, Fisher, Jaworski, & Paddison, 2003). With effective digital marketing, the price of our product would not affect the sale.
Revenue streamThe revenue will only be generated through the sale of the camera the target market is growing at a steady but constant rate. Adding of virtual reality technology in CCTV cameras is projected to increase the market growth and thus the company estimate to attain about 5 % increase of the market share by the end of the first six months after launching the product. The company also expect to maintain the growth through R&D and with time start to explore other markets.
Capital required and RIOTo launch the product the DSX Access Systems, Inc. would require about $5.5 million to successfully launch the product into the market. Both equity and debt will be used to raise the revenue required. Equity will be from investors the shareholders and debt will be from loans. To make the company the owner of the product the company has to issue more debt. The percentage of RIO to be given to the company would be around 12%. This implies that the company will still be able to get the finances due to the huge demand for cameras in North America.
Budget, variable and fixed costsThe DSX Access Systems, Inc. variable cost is $2,766,000 which consist of variable overhead, freight and postage, salaries and employee expenses, marketing and advertising among others these are not fixed rate, therefore, it can fluctuate depending on the prevailing circumstances. Fixed cost is $120,000 which does not change if there is increase or decrease in the sale of goods, fixed cost consist of a computer, air conditioner, photo machine, furniture & fixture, among others.
Break-even analysisThe DSX Access Systems Inc. makes a normal profit of $1,449,000 in the first year. This implies with effective marketing strategies the profit would probably increase as the number of targeted customers would increase. This is possible because it is projected that there will be demand growth for VR+CCTV in North America. With increased investment in R&D, the product will do well in the market.
ConclusionAfter conducting analysis on the target market the prevailing conditions show that the business is viable. Though some of the data used in this report are based on projected figures as well as market analysis. The general anticipation is that with innovation the product will remain competitive in the market
References360 Degree Panorama CCTV Camera Wifi 960p HD Wireless VR IP CameraRemote Control Surveillance Camera P2P Indoor Cam. (2017, September 5). Retrieved from http://www.lazada.com.ph/360-degree-panorama-cctv-camera-wifi-960p-hd-wireless-vr-ip-cameraremote-control-surveillance-camera-p2p-indoor-cam-11546033.html.
3D VR Camera->CCTV Camera,Security,Surveillance,DVR Manufacturer, IR-III Camera, Speed Dome PTZ. (n.d.). Retrieved from http://www.lonrun-cctvcamera.com/productsshow.asp?id=297.
Armitage, R. (2002). To CCTV or not to CCTV. A review of current research into the effectiveness of CCTV systems in reducing crime, 8.
Arrington, R. (2006). Crime Prevention: The Law Enforcement Officer’s Practical Guide. Jones & Bartlett Learning.
Beck, A., & Willis, A. (1999). Context-specific measures of CCTV effectiveness in the retail sector. Surveillance of public space: CCTV, street lighting and crime prevention, crime prevention studies series, 10, 251-269.
Biocca, F., & Levy, M. R. (Eds.). (2013). Communication in the age of virtual reality. Routledge.
Conway, M. (2011). Against cyberterrorism. Communications of the ACM, 54(2), 26-28.
Coleman, R., & McCahill, M. (2010). Surveillance and crime. Sage.
Clarke, R. V. (1980). ” situational” Crime Prevention: Theory and Practice. The British Journal of Criminology, 20(2), 136-147.
Danis, B. (2004). The Role of Technology in Homeland Security.
DSX Access Systems, Inc. (n.d.). Retrieved from http://www.dsxinc.com/Hadjimatheou, K. (2017). Surveillance technologies, wrongful criminalisation, and the presumption of innocence. Philosophy & Technology, 30(1), 39-54.
Haynal, G. (2004). The Next Plateau in North America: What’s the Big Idea?. Institute for Research on Public Policy= Institut de recherche en politiques publiques.
Gill, M., & Spriggs, A. (2005). Assessing the impact of CCTV(pp. 1-176). London: Home Office Research, Development and Statistics Directorate.
Gin, J., & Hsu, D. (2004). U.S. Patent No. 20070013779A1. Washington, DC: U.S. Patent and Trademark Office.
Lyon, D. (2007). Surveillance, security and social sorting: emerging research priorities. International criminal justice review, 17(3), 161-170.
Mohammed, R., Fisher, R. J., Jaworski, B. J., & Paddison, G. (2003). Internet marketing: Building advantage in a networked economy. McGraw-Hill, Inc..
McLaughlin, E., & Muncie, J. (Eds.). (2012). The Sage dictionary of criminology. Sage.
Population of Northern America (2018) – Worldometers. (n.d.). Retrieved from http://www.worldometers.info/world-population/northern-america-population/.
Report: Installed base of security cameras in North America expected to reach 62M in 2016. (n.d.). Retrieved from http://www.securityinfowatch.com/news/12251875/report-installed-base-of-security-cameras-in-north-america-expected-to-reach-62m-in-2016.
ReportBuyer. (2017, October 16). CCTV Camera Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 – 2025. Retrieved from https://www.prnewswire.com/news-releases/cctv-camera-market—global-industry-analysis-size-share-growth-trends-and-forecast-2017—2025-300537232.html.
Santos, R. B. (2016). Crime analysis with crime mapping. Sage publications.
Shaw, M. (2010). Handbook on the crime prevention guidelines: Making them work. United Nations Publications.
Shephard, R. W. (2012). Cost and production functions (Vol. 194). Springer Science & Business Media.
Shinno, H., Yoshioka, H., Marpaung, S., & Hachiga, S. (2006). Quantitative SWOT analysis on global competitiveness of machine tool industry. Journal of engineering design, 17(03), 251-258.
Surveillance video storage market worth 1.7B USD in 2017. (n.d.). Retrieved from http://www.securityworldmarket.com/int/News/Business-News/surveillance-video-storage-market-worth-17b-usd-in-2017#.WlfBZ_mWbIV.
Appendix 1 SWOT and TOWS analysis
VR+CCTV Strengths
Advanced technology
R & D
High-quality product
Good reputation
Skilled man power
Weakness
Compatibility
Lot of R&D required to deliver quality
Opportunities
Growing demand.
Skilled human capital
Unsaturated market S-O strategic options
There is high demand of CCTV.
Increasing demand for VR+CCTV.
Project market growth and through innovation quality product will be derived. W-O strategic options
The market is saturated with poor quality of CCTV in the market.
To deliver quality product the firm must invest on research and development of the product.
Advancement in technology and technology adoption in the market will bring in competition from other firms.
Threats
Competition
New policies
Market saturation S-T strategic Option
There is low supply of VR+CCTV.
Increasing demand for security in business and home would lead to increased sales.
High demand of virtual reality technology in CCTV may lead to increased competition.
W-T strategic Options
Unsaturated market.
The firm reputation in the industry would create customers loyalty.
Appendix 2: LEAN CANVAS
Problem
The current product in the market lack durability and reliability. Solution
Produce durable product.
Incorporation of advance technology virtual reality Unique value proposition
Motion detection.
Video surveillance.
Support cloud services.
High-level concept
Realizing the power of VR technology to curb theft. Unfair advantage.
Ability to produce realistic footage.
Customer segments
Individual business.
Corporate business.
Government buildings.
Key metrics
Total sales to company.
Total sale of product to target customer. Channels
Online website
Official website Cost structure
Production cost
Material cost
R&D cost
Advertising and marketing cost.
Salaries Revenue stream
Product sales Passion
8/10
Appendix 3: potters five forces

Appendix: 4 Pestle
Pestle
Political factors North America political stability
The involvement of government in market boosting.
Economic factor The region GDP is growing rapidly
The largest economy
Social factors Human capital availability
Increasing consumer purchasing power
Prospected large CCTV market
Technological factors Biggest CCTV market
Growing demand for CCTV
Rapid growth of E-commerce
Legal factors The company has to concentrate on legal laws such as labor law.
Free market entry agreement
Environmental factors The Air pollution
Environmental friendly durable products.
Contribution to environmental education
Appendix 5: North America Security camera statistics.

Appendix 6: HYPE CYCLE

Appendix 6: financial report
Financial report of the first year SALES AMOUNT
No. of Customers Targeted 300,000
Average Sales Per Customer 1
Average Cost Per Sale 27
Revenue 8,100,000
DIRECT COST Arrow Electronics Inc. 3,000,000
GROSS PROFIT (Revenue – Direct Cost) 5,100,000
OVERHEADS Accounting 50,000
FREIGHT AND POSTAGE Delivery Charges 91,000
Transportation 20,000
MARKETING AND ADVERTISING Promotion 18,000
Television Ads 300,000
Press Release 29,000
Weibo Ads 22,000
Patent & Copyright 20,000
Rent for office in China 20,000
Customer Care Executives 90,000
Salaries and Employee Expenses 70,000
Office Furnishing 20,000
Repairs and Maintenance 10,000
Stationary & Office Electronics 120,000
Website Hosting & Maintenance 8,000
Research & Development 2,000,000
Total Costs 2,886,000
ROI (10,000,000* 15%) 765,000
Net profit 1,449,000

Appendix 7 marketspace matrix cycle 1
Awareness Exploration Commitment Dissolution
Product The camera supports motion detection this implies that when a motion is detected within the surveillance area it triggers the alarm. The camera supports the electronic PTZ alongside mobile remote view as well as network cloud service. Price Penetration pricing this will be crucial for the firm to gain a considerable market share for the new product. Place The product camera targets supermarkets, petrol stations, casinos, retail malls, and warehouses. People Live chat support, 24/7 hotline support, chat forums on firm site, social channels and emails. Promos Social media contest, product preview videos, Facebook Ads and in store promotion Physical evidence Review from customers.
Share review from customers. Process Response time, services delivery and complaints Brands Sponsor event related to security sensitization. Eco value Employees and community education on environmental management.
Control CO2 emission.
Recycle waste products Appendix: 8 Future-plan timelines