Introduction
Power Compat is a business organization that offers installation, maintenance, and repair services for solar panels. The company’s task at this stage is to enter the market and open a branch in Senegal. Power Compat’s mission and vision are to provide superior customer service and set the standard for innovative solar panels. The best specialists in the field of solar energy will allow the company to compete in the local and international markets. Business management has taken care to select professional employees for leading positions, which increases the efficiency and success of the team.
The main list of services of the organization includes the following works. It provides the sale and delivery of goods to the destination. In addition, the terms of the contract include clauses regarding the installation of solar panels, maintenance, necessary repairs, etc. All works are performed qualitatively in compliance with established standards. Thanks to this, the company will be able to compete with many companies in the field of alternative electricity.
In case of insufficient qualification, the company takes care to provide all employees with additional training. This will allow the selection of new staff on a fair and competitive basis, which will improve the reputation of the organization. Additionally, management puts the interests of customers first and guides professional ethics in the performance of work. In order to comply with the culture and established standards, the company brings to your attention the following business plan. It covers the necessary industries that contribute to the successful development of the organization. Due to the strategies, plans, and structure of the management and shareholders listed above, there will be an understanding of the relevance of the idea that provides a sustainable approach to earnings.
Company Description
Business Model
Power Compact is a company engaged in the construction of solar power plants. The main task at the moment is the construction of new facilities in Senegal in order to expand reliable sources of energy supply based on renewable resources. The company is distinguished by a competent team, as the management wants to compete successfully with other companies in the industry that represent their business in Senegal. The organization seeks to fully guarantee that all work and services performed to meet the expectations of customers.
Compliance with the company’s standards and services involves the development of biomass for power generation. Furthermore, the regulation considers the importance of increasing the amount of renewable energy in installed grid systems and focuses on reducing the risk of downtime. Moreover, a vital step is to encourage the use of renewable resources and incentives by investing in them (Deutschmann et al., 2021). The plant is a joint partnership project at the corporate level and government construction and financing. All rights and services rendered belong to and are provided on behalf of the Power Compact company.
Business Structure
The organizational structure of the company is a management wheel, which allows to manage the team effectively. In this way, the organization considers the preferences of employees and provides feedback to improve the strengths of staff members (Rasmussen & Tanev, 2020). All representatives of the company are highly qualified professionals, which allows one to celebrate prosperity in business. This requires compliance with such positions as director of the company, head of technical services, personnel manager, and marketing manager. In addition, the successful development of the organization requires high-quality specialists in the following positions: accountants, installation and maintenance engineers for solar panels, and client service executives. In addition, the construction of new power plants in Senegal will create jobs for the population, improve the quality of life through sustainable production and reduce energy costs.
Vision and Mission
The mission of the Power Compat business organization is to identify market niches, seize opportunities, and create customer-satisfying solutions. In addition, the mission includes providing high-quality services for the installation and subsequent maintenance of the company’s solar panels. The organization’s vision is to create world-class regulated standards for the installation, operation and maintenance of solar panels. Thus, services will be distributed in different territories and enter the world market. The desire of the company is to create a company for the installation of solar power plants, and panels that can successfully compete on the world stage with the leading companies in this field. This includes high-quality customer service, panel inspections, and repairs as needed.
Market Analysis
Target Market
Before starting the installation of solar panels in Senegal, the Power Compat conducted an analysis and assessment of the market and came to the following conclusions. Senegal represents the quintessence of decent economic, social and demographic conditions. This contributes to the development of commercial activities in the region to create a successful market for goods and services (Geissdoerfer et al., 2018). Oil reserves in the country are relatively small, which means that they will begin to disappear in the near future. In addition, buying oil from other states is costly, with a constantly changing price tag.
Senegal’s target market includes creditworthy counterparties, which contain the country’s power grid operators and utilities. Since the energy industry is the engine that improves the economy, the Senegalese government is aiming to install alternative energy sources in the form of solar panels. The economy of the state continues to develop in different directions, and the services of the company could give it a new impetus. As for the current energy supply infrastructure, it is characterized by intermittent power outages, the solution for which could be the installation of solar energy devices.
In addition, attracting new investors is due to the fact that the local administration is targeting a program of alternative energy sources, including hydroelectric and wind power. However, solar panels will benefit not only large companies but local residents. Currently, the country has problems with the energy connection in homes, which leads to the periodic lack of light necessary for a decent life (Simmet, 2018). This is especially true for remote rural areas where it is difficult to conduct energy communications. In addition, this leads to high electricity bills among the poor. Thus, this target market will enable the company to successfully establish its products and contribute to the growth and development of the country.
Competitive Analysis
The management of the company is aware that there are enough large competitive companies in the field of alternative energy in the Senegal market. However, there are enough locations in the country to install solar panels, both in private and public areas (schools, universities, hospitals, etc.). At the same time, in order to strengthen and improve the company’s place in the market, it is important to ensure stable and high-quality product operation. In addition, the main advantage of the Power Compact among other organizations, is the international team of highly professional specialists. Employees are proven experts in their field, which gives the company significant advantages. In addition, the services are constantly improved and based on advanced technologies that guarantee quality.
Cultural, Legal and Political Factors
Senegal is a major industrial African country, which has led to a culture of agriculture. People are focused on working with their hands, including the fishing industry and the cultivation of cereals. Local residents are distinguished by the spirit of collectivism and the belief that each object has its own power (Faye, 2020). This must be taken into account when recruiting local residents for jobs and giving them lectures on the operation of solar panels since for many of them, an alternative energy source is new knowledge.
As for the legal aspect, the business must be officially registered and have a confirmed financial status. It is important to choose the type of legal entity and resolve the issue with the tax service regarding payments for the legalization of supplies and transactions. The political factors of Senegal are quite favorable, as the country is a presidential democratic state. It has a relatively low level of corruption compared to other countries in the region. Moreover, the policy is aimed at a multi-polar competitive market. This means that from this point of view, business can flourish without the fear of bribing the country’s leadership from competitors.
Products and Services
The main products of the company are solar panels – devices that accumulate the light of sunlight and convert them into electricity. This is one of the most environmentally friendly lighting methods and does not produce a large amount of emissions into the atmosphere. Since there is no fuel combustion process, the greenhouse gases that destroy the planet’s ozone layer are not formed. In addition, solar energy will always be available for use, while natural resources are being depleted in Senegal every year. This means that the country’s economy can reach a new level, as the power industry is one of the leading areas in the modern world.
Moreover, the installation of solar power plants in the country will lead to the expansion of jobs with decent wages. At the same time, the company is not limited to products such as solar panels. The management aims to offer customers relevant and high-quality services related to the operation of the product. The services include the sale and distribution of solar panels and their accessories throughout the country. In addition, service maintenance and contractual inspection of the panels after their installation is necessary. Other works include the installation of solar panels on the roof of a building or structure, installation of a tracking panel to receive sunlight, and the provision and installation of a ground panel and a fixed rack. The rest includes the necessary repairs in case of breakdown or poor performance and monitoring the condition of the product. This is necessary in order for the customer to receive the declared characteristics and capabilities of the product while the company will prove itself as a conscientious performer.
Marketing Plan
Awareness and Cultural Change
Currently, the transition to alternative energy sources is an important topic. Accordingly, there are many potential ways to spread information about a company. A good way to advertise can be the placement of products and services on social networks. This carries a lot of weight in attracting large clients such as government agencies and corporations. However, residents of remote parts of the country do not always have wide access to the Internet. Thus, the company will send brochures with the necessary information to private households. It is important to consider that Senegal has an agricultural culture, and the introduction of solar panels can significantly change this, which will hurt the locals at first (Faye, 2020). Therefore, the brochure should describe in detail and in simple language the benefits of the product and its capabilities. Another aspect is the belief of the people that energy has a divine power. The consequence of the introduction of energy in remote areas may be the religious change of communities. In addition, the transition to alternative energy can change the approach to agriculture, providing more technical equipment.
Pricing strategy
The company offers special discounts and promotions on products. In addition, the management intends to keep the cost of services below the market in order to attract customers. For occasional works and government contracts, the organization will follow the expected pricing model. Payment options for repair work and installation of equipment can be different and selected according to the preferences of the customer. Payment methods can include the following ways: bank transfer to a company account, online transfer through a bank application, bank draft, check provision, mobile money and cash withdrawal. Additionally, the company has identified banking platforms that can implement these methods quickly and efficiently.
Launch strategy
To enter the market, it is necessary to consider the ways of launching products and competitive strategies. The company’s main approach to competition is to provide different products. The dimensions will be adjusted to the needs of the client and, accordingly, the villagers will be able to afford a solar panel for personal use. In addition, a competitive strategy will be distinguished by individualized advertising, which will show not only the advantages of alternative energy sources but also what makes the company the best in this area. The decision to enter the market will be made after a direct study of documents and conversations with lawyers (McKeever, 2018). This will help identify the weakest companies that could be acquired. Thus, the use of a strategy called company ownership can lead to a profitable investment that subsequently affects income.
Global and Domestic Markets
The internal market has less influence of the state, since, after official registration, the management only has to confirm its activities and deduct taxes. International business requires compliance with the legal norms of each country and a large package of documentation, depending on the regulations of the state. In addition, international marketing requires much more investment, while the domestic market allows the company to use less capital investment. Accordingly, from a financial point of view, entering the international market strengthens the company’s position in the global arena. However, when buying other businesses, this denies more pressure in terms of hiring lawyers and providing documents.
Logistics and Operations Plan
The logistics plan includes all the necessary steps for the successful delivery of the product to customers. The first step is to bring all the necessary elements of solar panels from the manufacturer’s factory to the warehouse by truck. Further, the processing of incoming orders takes place and loading and unloading operations are performed to simplify the search for the necessary elements (Pournader et al., 2020). Next, the manager calculates the cost and the most appropriate ways to deliver the goods. After specifying the details, the goods are loaded onto a truck in the warehouse and transported to their destination. During this, the employee constantly monitors the location of the goods in order to avoid unplanned delays and problems. After the solar panels are delivered, the worker marks the order as completed in a special electronic system.
Financial Plan
The country’s economy is aimed at development in various areas, including alternative energy sources. Accordingly, its policy supports the establishment of businesses that contribute to the strengthening of the country’s economy. In addition, the state offers businesses simplified ways to open through low taxes and simplified options for obtaining a trade permit. From an economic point of view, it is important to study the market and the stability of the Senegalese currency before opening a branch.
The West African franc as a national currency is not characterized by stability, so it is important to carry out the main financial transactions in US dollars. This will make the launch of the company on the market more efficient. Tariffs in the country remain quite stable, and due to state programs, business leaders can easily open new locations. For an exchange in the international market, it is important to take into account such things as unemployment, which is quite high on the African continent. This will allow the company to hire a fairly cheap labor force and invest in business development. On the disposable income side, solar power produced at the stations is cheaper than four euro cents per kilowatt-hour, making the business competitive with oil companies (Relich & Pawlewski, 2018). Below is the Cash Flow statement for a five-year period of work.
Conclusion
The economy of Senegal is unstable and the local currency experiences both jumps and falls. In addition, there are many remote rural areas in the country in need of sustainable electricity. This will allow management to offer the company’s services regarding solar panels. At the same time, a competitive strategy has been developed that will distinguish the company from others. Additionally, at the moment, the government is focused on developing the country’s technological advantage and, therefore, welcomes new firms.
References
Deutschmann, J. W., Postepska, A., & Sarr, L. (2021). Measuring willingness to pay for reliable electricity: Evidence from Senegal. World Development, 138, 1-16. Web.
Faye, J. B. (2020). Indigenous farming transitions, sociocultural hybridity and sustainability in rural Senegal. NJAS: Wageningen Journal of Life Sciences, 92(1), 1-8. Web.
Geissdoerfer, M., Vladimirova, D., & Evans, S. (2018). Sustainable business model innovation: A review. Journal of cleaner production, 198, 401-416. Web.
McKeever, M. P. (2018). How to write a business plan. Nolo.
Pournader, M., Shi, Y., Seuring, S., & Koh, S. L. (2020). Blockchain applications in supply chains, transport and logistics: A systematic review of the literature. International Journal of Production Research, 58(7), 2063-2081. Web.
Rasmussen, E. S., & Tanev, S. (2020). Lean startup. In Start-Up Creation (pp. 41-58). Woodhead Publishing. Web.
Relich, M., & Pawlewski, P. (2018). A case-based reasoning approach to cost estimation of new product development. Neurocomputing, 272, 40-45. Web.
Simmet, H. R. (2018). “Lighting a dark continent”: Imaginaries of energy transition in Senegal. Energy Research & Social Science, 40, 71-81. Web.