Introduction
This study will discuss the complete business proposal of starting a new business in the educational toys and games sector. It will analyse the internal and external environment for starting this business.
Detailed information regarding the business concept
The aim of this business is to provide proper assistance to the children in the educational sector. Fun plus study will be the name of this business. The pandemic situation has forced the educational organisation to perform the educational process in the online medium. As stated by Ciobanu and Neamţu (2017), mixing the excitement of games in the educational sector can increase the demand of a product. This organisation will provide its assistance both in online and offline medium. For instance, several AI based educational and fun games will be available in the Android and ios medium. It will also provide toys to the customers and there will be a relationship between the AI games and physical toys.
Short term goals and long term goals
- To combine the experience of sport and education to the children is a long term gaol
- To gain the loyalty of the target customer base is a short term goal
- To develop effective strategies for digital promotion is a short term goal
- To gain the attention of the potential investors is a long term goal
Young parents who have children below the age of 12 will be the main target customer group for this organisation. As stated by Zulkarnain et al. (2018), social media marketing strategies are more familiar to millennial parents. This organisation will provide a value for money service and product to gain the loyalty of the target customer base.
Identifying the business market
Business market analysis is an essential part of business development as it helps to understand the expectations of the market. This organisation will launch this service and product in the UK business market. Working adults who have limited time for friends and family will be the main target customer base. It can be a great substitute for online classes as it is the combination of both online and offline learning. The toys will be required while accessing the online learning sessions. The toy market of the UK has increased by 5% in the 2020 financial year (Statista.com, 2021). It is a great statistic for this organisation as it indicates that people are focusing on toys during the pandemic.
Internal analysis
Strengths
|
Weaknesses
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Opportunities
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Threats
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Analysis
The success of this project is dependent on technological advancement. This organisation has an effective technical team for managing technology oriented tasks. On the other hand, lack of experience and financial resources are two major weaknesses of this organisation. The increased popularity of online learning and educational games are two major opportunities for this organisation.
External analysis
| Factors | Description | Impact |
| Political |
|
Positive |
| Economic |
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Positive |
| Societal |
|
Positive |
| Technological |
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Positive |
| Legal |
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Positive |
| Environmental |
|
Negative |
Analysis
The political and economic conditions of the UK are helpful for starting a new business as the organisation can develop long term strategies for better profit due to stable political conditions. The strong financial condition ensures the high purchasing capabilities of the customers. The managers of this organisation can utilise digital marketing strategies due to high internet literacy rate.
Determining the suitable business strategy
This business organisation is planning to introduce this service and product in the business market of the UK. Developing an BCG matrix for understanding the potential of the service and the products will be effective (Credit, 2018). It will develop social media surveys for understanding the potential of the product in the market. On the other hand, the product launch events will be organised in the social media page of the organisation. This business organisation will follow the concept of sole tradership for the whole business operations.
Main components
Effective innovation and research are two major components of this business. As stated by Ombi et al. (2018), innovative service and products help to increase the profitability of an organisation. Proper market segmentation is an important component for this organisation. Financial resources and marketing strategies are two most important components of this business organisation. Marketing strategies are crucial for showcasing the potential of the offered services and products to the target customer base.
Determining the linkage between the components
Establishing an effective relationship between the major components is one of the most important parts for the overall growth and sustainability of a business organisation. As per the view of Coroș et al. (2019), the relationship between marketing team and product development team determines the main characteristics of a business. The business organisation will develop the strategies based on the identification of the potential customer base. It is dependent on the market segmentation process. The brand reputation and brand loyalty are dependent on the productivity and marketing strategies of the organisation. Identifying the linkage between the components at the initial stage can be very effective for developing the strategies in an effective manner. The higher authority of this company will develop the business strategies based on the internal capabilities and external expectations. This method is very effective for developing a sustainable and transparent strategy.
Conclusion
The above discussion highlights the efficiency of an innovative business idea. The characteristics of the UK business market have been described in this study. This organisation is planning to develop this product and service for the children of the UK. The working adults are the main target customer base for this organisation.
