Allen Corporation

1. INTRODUCTION

        In order to start a new business it will be required that proper feasibility analysis should be conducted so that it can be determined that whether it will be a success or not (Loch, DeMeyer & Pich, 2011). For this various aspects in relation to it will be evaluated. Smart shoes are the new venture which is being started in Saudi Arabia. The business will be dealing in footwear and the main section that will be targeted in this will be sports segment.

        We would like to introduce ourselves; we are the company directors and founders of Alen Corporation for sports people. We provide clothes, devices, and tools to the consumer who sports are a part of his or her daily life. Our goal is located in Saudi Arabia markets and we aspire our products to be available in global markets like many international brands such as Adidas, Nike and further more. Our Mission is to educate people and encourage them to exercise and maintain their physical health by smart shoes. These shoes work to calculate the total distance, calories, steps, and many features. Then send the information to the phone by Bluetooth communication signal.

Type of new entry you organization:

         There are three types of new entry which are a new product in an established or new market, established product in a new market, and a new organization. We have a new product established in the market, the smart shoe is a new invention in Saudi Arabia market and the nature of the market represents the top required factor for the success of this new product. Our product aim to understand sports people needs and wants.

Resources

• Smart heated insole: one of the technologies that give the product the opportunities to be special in the market because there is no other shoe have this technologies before so that it can be rare and probable that customer will like this feature especially in winter.
• The balance that works on a person's weight once these shoes are worn is considered an unmatched resource in the product as it will be the first at the market level.

 Technology and market:

        Smart shoes will be entering into the market and making its place as it will be using the technology that will be new and for that it has collected all the relevant information.

• The Application - Simply connect your Smartphone and Smart shoes using Bluetooth control all feature via the Digit sole app.
• Movement Sensors - To get a complete analysis of your stride, movement sensors detect impact force, fatigue, posture, and step size.
• Heating - A heat-pad transforms energy from the battery into heat and can be controlled through our app.
• Measures Weight – Weigh yourself by simply standing in your Smart Running Shoes, keeping track of your health along with your workouts.
• Maps Runs – Smart Running Shoes map the course of each run, understand changes in speed and inclination, and can choose the best path for your next workout.

Window of opportunity:

         We will invest it well in a way that is advertised by football players and sports people, sell them in special places for sportsmen at a good price and high quality, and display the method of use so that the user is clear. They can be sold and purchased online and put a guarantee on it to be a successful product. Promotion strategy by football players is essentially effective because its might reach a wide number of people.

Future Outlook:

        Connecting shoes with technology will contribute to increasing physical activities. Using the technology will encourage people to live a healthy lifestyle.

Trends:

        We are planning to design several advanced technologies to the smart shoes like GPS system. Also, we planning to add the features that able the user charge their device when they walk. The shoes will convert the leg movements of the user to electrical energy and save it in the battery. Each 3 Km walk is enough to charge one from device portable.

Competitors:

        In the market there are various competitors that are present in this industry. We will face strong competition from Nike, Adidas, Reebok and Puma. But our product line will be different. For example, Nike produces the shoe for women and men between15 to 35 years old, whilst we will produce the shoe for women, men and children who between 9 to 45. We decide to produce a shoe for children to attract their parent to become our potential customer.

Market segmentation:  

        Our product mainly focuses on the athletic consumer.  We target men, women and children between the ages from 9 to 45. We focus on active people who want high-quality sporting goods and connected with technology. We will focus on the domestic market in Saudi Arabia.

Industry and market forecasts:  

        The industry is made of high quality and the market factor is according to the demand and needs of customer's .In the future it can be expected that market will raise and smart shoes will have the scope for the growth.

Attractiveness in relation to new entry: 

        Obesity is a major global public health problem which causes a variety of chronic diseases. It has been evidenced that obesity rate is very high in the Saudi Arabia so from this perspective we need to create a product that is smart, easy to use and  can solve this serious issue. Promoting exercise is highly needed and one of the most attractive approaches to do that is by marketing and introducing new products to the markets. People tend to try new products out of curiosity sometimes or because they are attracted to a certain commercial, especially when it is about health awareness. We are targeting all the categories; kids, teens and adults each with their special designs and styles so that we can grab their attention on a hand and work on our goal on the other hand. We believe that such a product will get a high acceptance rate from people since it combines the new technology with the public health.

Level of comfort in decision making in case of uncertainty: 

        In a business there are various uncertainties that arise due to the present information and the opportunities and it will be difficult to make decision in that situation. The main error that may arise will be of commission which will be occur when the potential to attract customers will be overestimated and if the smart shoes will be under estimating its ability then that will be the error of omission .Smart shoes will be able to make the better decisions with the help of the skilled employees that will be available with it. In case of counting the steps of smart shoes, if some steps are not counted or left without counting, then it will be termed as Error of omission while determining the number of steps, when some steps are subtracted from the total steps this will be termed as Error of commission. Also, about the battery the shoes has many features that consume a lot of energy , with light using it will lasts with you a day or two and with only wearing it without using the features it will lasts for 3 days. Some consumers bored or do not have time to commit to recharging the shoes .We dealing with the error of commission which means a mistake that consists of doing something wrong. We established our product and we know about those risks that may face us.