Business Plan 'wood Ra' in Singapore

BUSINESS PLAN

"Wood RA" Ltd.

IN SINGAPORE

EXECUTIVE SUMMARY

Business opportunity

"Wood RA" Ltd. is union of several workshops united under one roof. "Wood RA" Ltd. creates unique pieces of furniture and subjects of an interior. The masters of "Wood RA" Ltd. are capable of making not only furniture, but also sculptures, bas-reliefs, ladders, decorative panels and other pieces of high artistic value (gifts, stationery, doors, and bars). Company's focus is premium segment of furniture Art Nouveau. Company does not duplicate the furniture - each project is unique (for each customer a special form is created), and all products are hand made work. Driven by the objective of further business expansion internationally, management of "Wood RA" Ltd. intends to launch activities in the Asia. Singapore was chosen because of highly developed and successful free market economy, with corruption-free environment, stable prices, and a very high per capita GDP.

Description of products for sale

"Wood RA" Ltd. plans to offer customers in Singapore different products, which will be developed and tailor made solution will used for customer according to existing Art Nouveau standards. By application to clients will be offered below mentioned products: beds; chairs; wardrobes; tables; doors and other applications, like sculptures, ladders and small things for decoration. Each product will be tailor made according to client requirements and to strict specifications forwarded to manufacturing site in Latvia from the distributing Partner in Singapore. Products manufactured by "Wood RA" Ltd. are not regular furniture products, but unique pieces of art, therefore individuality and uniqueness is best description for these products.

Business objectives

 To enter the Singapore market within 6 months after the establishing relationships with local distributor company;

 To provide products of the superior quality and by unique design in accordance with Company's internal standards;

 To fill the free niche of Art Nouveau premium furniture and to compete potential followers;

 To ensure product and brand awareness led by the deliberative marketing strategy;

 To establish and maintain the distribution channels in the Singapore market;

 To ensure targeted financial performance in 5 years period (sales volumes - 1 400 000 USD, profitability - 338 800 USD).

Business summary

"Wood RA" Ltd. has been working in the Latvian market since 2000 and has 5 years of experience as Art Nouveau furniture producer. Company establishers and masters are even more experienced. Company turnover in year 2004 was 1 900 000 LVL; approximately 55% of the produced products are sold in Latvia and 45% are exported to Russia, Lithuania, Estonia, Europe and USA. Production capabilities can be increased by 30% what can lead to revenues up to 2 500 000 LVL. Taking in consideration slightly higher export prices it can afford to supply to Singapore products for maximum value - 800 000 LVL (1 500 000 USD).

Business strategy

Entering into the Singapore market will be done by the use of the local Partner. Careful market analysis will be conducted, to be able to find realistic sales objectives. Plan for promotion and sales activities will be created. First year plan is to reach $80 000 sales result; sales objective for the second year is 195 000 USD. After establishing its operations in Singapore further analysis will be done to find opportunities for re-export to other Asian countries and possible manufacturing establishing in one of the Asian region countries. Unique Selling Point for Company can be "Unique furniture of Art Nouveau from European manufacturer with personal approach to every project".

Competition

In average the Singapore market for furniture is quite supporting for foreign imports, because only 20% of all furniture is locally manufactured, but other 80% are imported from other foreign countries. According of statistics of 2003, for Singapore top 10 furniture import markets were Malaysia (268 S$ million); China (101 S$ million); Italy (55 S$ million); United States (31 S$ million); Germany (20 S$ million); Taiwan (20 S$ million); Japan (16 S$ million); Honk Kong (15 S$ million); Vietnam (13 S$ million) and Thailand (13 S$ million). There is no obvious evidence, that hard competition is expected to Art Nouveau products, mostly due to the fact, that this is a very narrow niche product. However, international import presence just proves sales potential in Singapore.

Risk analysis

Therefore, there are no obvious political risks, which might affect Latvian company doing business in this Asian country, because Latvia is member of EU and Singapore is country where exporting and importing activities are important part of daily life. Key indicators can be used to help measure the ease or difficulty of operating business: starting a business; hiring and firing workers; registering property; getting credit; protecting investors; enforcing contracts and closing business. According to The World Bank research done in 2004, Singapore is very low legal risk country for doing business in this Asian region. Financial risks may include some currency rate change, because price indications will be given in US dollars, due to local market specifics. As to competitive risks, it might be possible, that some other local companies are following the way of doing business.

CONTENT

1. Business Opportunity Definition 6

1.1. Opportunity Statement 6

1.2. SWOT analysis 7

1.3. Product - Market Match 9

1.4. Problems and Resistance to Product Introduction 10

2. Business Objectives 10

3. Business