Export Business Plan: Moldovan Cellular Business Plan

Pages: 15 (4891 words)  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business


As regards the cellular phone industry, conditions in Moldova seem to be promising: Because Moldova is a small country, telecommunications companies manage to achieve good coverage in both wired and wireless communications infrastructure. Landline is available in most settlements, but mobile phone usage is preferred and has grown exponentially particularly in recent years. Prices are high and technology is somewhat behind Western standards but this is where Moldovan Cellular Phones can find its niche.

A. Description of the firm and products to be exported.

Moldovan Cellular Phones is a company that has invested time and money into finding ways to give the system higher capacity therefore lower cost. Cellular phones today are one of the most popular indispensable consumer electronic devices with over 59 million subscribers.

Moldovan Cellular Phones will provide Moldovan consumers with 4 kinds of plans. These will be:

1. Voice plans -- the simplest and cheapest for private families and people starting out with a cellular phone

2. International plans -- good for the business where the entrepreneur / business owner can stay in touch with colleagues in over 200 countries around the world.

3. Data plans for business -- where Moldovan Cellular Phones offers consumers a variety of plans for data-oriented devices such as smartphones and PC Card modems.

4. Plan features - Moldovan Cellular Phones will provide Moldavian businesses with the largest digital voice and data network in Moldova.

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The intent of the Company is to particularly introduce these different calling packages in order to arrest the declining phone usage in the country which is largely due to the tax burden and to the country's struggle with meeting their daily needs. There will also be free calling hours during the day to counteract the huge cut in service at the beginning of the fiscal year that has caused many cellular users to cut back on their services.

The introduction of quality yet affordable phones that offer 4G and attractive incentives will give Moldovan Cellular Phones its cutting edge.

B. Company resources to be used for the export business.

TOPIC: Business Plan on Export Business Plan: Moldovan Cellular Assignment

With the phones being mostly produced in Moldova (where cheap labor is plentiful), we can cut the cost of production whilst enabling workers to more effectively and faster communicate amongst themselves.

We can also cut the cost further buy exporting refurbished cellular phones. We will export accessories such as headsets, adapters, batteries, and ear pieces, as well as the phones


We will also promote ourselves by using 4G which is the fastest. At the moment, Moldova simply uses 3G.

It is the goal of Moldovan Cellular Phones to become established as the leading distributor of wireless communications services in order to achieve this goal, we will work to identifying socio-economic / political trends in Moldovan culture and integrate them into our company operations, we will respond to Moldavian technology challenges, work with them on their level and in their conditions, be there early, provide high-quality services, invest time and money in marketing and advertising, and stay ahead of Moldavia's "technology curve."

C. Competitive situation in the industry.

1. Product comparisons.

The mobile telephone market of Moldova is divided between two GSM carriers - Orange Moldova and Moldcell, and between two CDMA carriers - Unite and Interdnestrcom. Orange Moldova became Moldova's first carrier and introduced its network in 1998 using the brand of Voxtel. Two years later, TeliaSonera introduced the Moldcell brand and was followed by Moldtelecom who became the third carrier in 2007 with the brand of Unite. In that same year, Eventis tried to compete too but they failed and declared bankruptcy in 2010.

After the War of Transnistria in the early 90's, the Transnistrian government forbade access to many companies including telecommunications companies. The only one that was allowed was Interdnestrcom (IDC) that began its operation in 1998.

Moldovan Cellular Phones, in other words, faces competition from two GSM carriers - Orange Moldova and Moldcell, and two CDMA carriers - Unite and Interdnestrcom each of whom have their particular brands. Moldovan Cellular Phones can undercut these companies, not by introducing further brands (the Company, in fact, will introduce a mixture of brands) but by launching more affordable prices and plans.

2. Market coverage.

Competition may be huge and there is diversity of brands but the state of the mobile market in the country is still somewhat technologically poor (it is still, for instance at 3G and communications sometimes breaks down). While coverage is barely an issue given the country's small territory, the carriers still practice outdated methods that carriers in Western countries have long developed and improved on. The prices too are extremely high compared to other CIS and even EU countries with prices, rather than decreasing, even increasing over the years. The same condition exists with mobile Internet access: also extremely high prices and low monthly caps compared to prices, for instance in the U.S., that offer fast and cheap Internet access.

On the other hand, despite these limitations, mobile phone subscription is huge. The first millionth subscription was registered in September 2005 and since then quantity of subscriptions have tripled and exceed 3,715,000 - more than the estimated population of the country itself. Penetration level, therefore, has exceeded 100%.

3. Market share.

In September 2009 Moldova became the first country in the world to launch high-definition voice services (HD voice) for mobile phones, and became the first country in Europe to launch 14.4 Mbit/s mobile broadband at a national scale, with over 40% population coverage.

D. Export organization-personnel and structure.

VI. Export marketing plan.

A. Long- and short-term goals.

The Company's mission is to develop the cellular Company into a profitable enterprise by sourcing in demand cheaper cellular products to Moldova for sale and distribution to major wholesalers and retailers. At the same time, it will establish itself there as a telecommunications company and offer improved and cheap services and items.

Its short-term goals are the following. To:

Develop an online presence by developing a website and placing the Company's name and contact information with online directories.

Establish relationships with wholesalers, retailers, and distributors in Moldova and become acquainted with its policies and with present relevant competitions. Also to become familiar with its challenges and to brainstorm ways of surmounting them.

1. Total sales in units

Over the next 3 years, Moldovan Cellular Phones plans to sell 300 cellular phones

2. Total sales in dollars.

Over the next 3 years, Moldovan Cellular Phones plans to make $600,000

3. Sales by product lines.

Moldovan Cellular Phones expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

Expansion Plan

Moldovan Cellular Phones expects that the business will aggressively expand during the first three years of operation. The Company intends to aggressively develop a network of wholesalers and major retailers that will purchase inventories of their goods and introduce them in Moldova. At the same time, it intends to actively market itself promoting itself via free, low-cost high quality services and products.

5. Profit and loss forecasts.

B. Identify, assess, and select target markets.

The following programs and resources will be approached for further information about the region and for ideas about how to introduce the enterprise.

1. Market contact programs.

(a) U.S. Department of Commerce.

(b) World Trade Centers.

(c) Chamber of Commerce.

(d) Company's bank.

National Bank of Moldova (Romanian: Banca Na-ional? A Moldovei)

(e) State's export assistance program.

(f) Small Business Administration.

(g) Small Business Development Center in local university.

(h) Export hotline directory.

2. Market screening.

(a) First screening-basic need potential.

Mobile phones are more popular than landlines but suffer from archaic technology, processes, and from high prices.

(b) Second screening-financial and economic forces.

Moldova is the poorest country in Eastern Europe. Drought and civil conflict has exacerbated the poverty, and the Russian ruble devaluation of 1998 plunged sharply further sending the country in decline. Since 2000, the country has experienced somewhat of a growth and it has made progress in economic reform since its independence. The government has liberalized most prices and has phased out subsidies on most basic consumer goods. A stock market opened in June 1995; the leu stabilized in November -- December 2004 at 12.00-12.50 to the U.S. dollar.

The country has come a long way in developing a viable free-market economy. The country has also made great leaps in positive GDP growth since independence.

(1) GNP/capita growth rate.

GDP - per capita (PPP): $3,400 (2011 est.)

$3,200 (2010 est.)

$3,000 (2009 est.) (*Moldova GDP - per capita (PPP))

(2) Size of target market.

Mobile Subscriptions and Penetration level. (2011)

Number of Mobile Subscriptions - 3,715,000 (2011)

Penetration Level of Mobile Telephony - 104.3% (2011)

(3) Growth rate of target market.

Moldova has 4.285 million subscribers in total, or a 106.4% penetration rate [5] (Q1 2010).

Population: 4,314,377 (July 2011 est.)

Telephones - main lines in use: 1.139 million (2009)

Telephones - mobile cellular: 2.785… [END OF PREVIEW] . . . READ MORE

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