Business Policy and Strategy Report

Submitted to: Satish Kumar Sagadevan

Submitted by:
Sumit Chand
Yadu Krishnan
Sarang Chandran
Khan Mozzin
Shiva Vinod
Mufshad Musthafa







MONUCLE
What is MONUCLE?
MONUCLE is a wearable Info centre with an optical head-mounted display (OHMD)
that activates at voice commands. Monucle displays information in a smartphone-like
hands-free format directly on the lenses in 3-D format. Wearers can access vast
information about a popular monument or a building via information bank stored within
the hard drives of monocle. Monucle is also a real-time camera. A monucle has voice
recognition feature that records the voice of the user at the time of activation and can only
be operated by that user.
FEATURES
Laser scanner is attached to the rims to scan the object.
Right temple has wifi connectivity that allows the user to update information bank of the
monucle.
Left temple has in-built micro hard drive mounting up to 1 TB.
Bridge carries a micro Nikon camera with 16 mega pixel for real-time video recording.
It can only be operated through voice command. Following are the commands that are
required to use the Monucle:
CAM ACT Activates camera.
CAM DE-ACT Turns off the camera.
SAVE Saves the video.
DISCARD Deletes the recorded video.
SCANNING SEQUENCE INITIATE Scans whatever is in the line of sight.
Videos are directly stored in the hard drive and can only be accessed via data cable
connected with a computer.

Lens is an optical head-mounted display which reflects all the information onto the lens
in 3-D format.
ADVANTAGES OF MONUCLE
It provides travellers with the information about old monuments and popular building
It allows users to savor their delightful experiences through real-time video recording.
It is easily available.
Portable guide.
Can only be operated by a single user so it becomes completely useless in case of theft.
Comes in different sizes and designs to suit the costumers preference.
Free updates.

TARGET MARKET
Tourists
Explorers
Photographers

PLACE OF DISTRIBUTION
Airports
Malls
Sports Complex



Generic Strategies
There are countless variations in the competitive strategies that companies employ,
mainly because each company's strategic approach entails custom-designed actions to fit
its own circumstances and industry environment.
The biggest and most important differences among competitive strategies boil down to
whether a company's market target is broad or narrow, and whether the company is
pursuing a competitive advantage linked to low costs or product differentiation.

The Five Generic Competitive Strategies
1. A low-cost provider strategy - striving to achieve lower overall costs than rivals and
appealing to a broad spectrum of customers, usually by underpricing rivals.
2. A broad differentiation strategy - seeking to differentiate the company's product offering
from rivals' in ways that will appeal to a broad spectrum of buyers.
3. A best-cost provider strategy - giving customers more value for their money by
incorporating good-to-excellent product attributes at a lower cost than rivals; the target is to
have the lowest (best) costs and prices compared to rivals offering products with comparable
attributes.
4. A focused (or market niche) strategy based on low costs - concentrating on a narrow
buyer segment and out competing rivals by having lower costs than rivals and thus being able
to serve niche members at a lower price.
5. A focused (or market niche) strategy based on differentiation - concentrating on a
narrow buyer segment and out competing rivals by offering niche members customized
attributes that meet their tastes and requirements better than rivals' products.

Each of these five generic competitive approaches stakes out a different market position. The
decision on which generic strategy to employ is conceivably the most vital strategic
commitment for your company

The Generic Strategy selected for MONUCLE
A focused (or market niche) strategy based on differentiation
Concentrating on a narrow buyer segment and outcompeting rivals by offering niche members
customized attributes that meet their tastes and requirements better than rivals products.

Formulating the strategy
A focused differentiation strategy depends on the existence of a buyer segment that is
looking for special product attributes or seller capabilities and on a firm's ability to stand
apart from rivals competing in the same target market niche.
A risk of employing a focus strategy is the potential for the preferences and needs of
niche members to shift over time toward the product attributes desired by the majority of
buyers.

Why Focused Differentiation?
Our product is based on the Narrow target market segment
Unique Product and Features, our products and its features are completely new in the
market and no other rivals belonging to the similar industry offers the product and its
features that we do.
Adopted to meet the specific requirements and tastes of the niche market only.

Features of Focused Differentiation:
Strategic Target: Tourists, Explorers and Small time photographers are the target
audience for our product.
Basis of Competitive Strategy: Strong technology, Eliminates unwanted expenses such
hiring a guide or purchasing an expensive camera to capture the experience.
Product Line: Voice command operation for easy access, camera for easy portability
and info centre for learning prospects.
Production Emphasis: Small scale production and Custom made products as we are
focusing only on the niche market requirements and our main aim is to satisfy the needs
of the niche market audience only.
Marketing Emphasis: Awareness about the product among the niche market segment.
This will be done using various marketing weapons. Few of them are listed below:
Seminars: The seminars will be conducted in the different parts of the country in
order to spread the awareness about the product at larger scale.
Crowd sourcing: Free trial by the audience will be hosted.
Reviews from professionals: We will follow the celebrity endorsement which
would include the popular athletes as people can easily relate our product with the
sources used in the advertisements.
Keys to maintaining the Strategy: No other products will be added in the long run, and
the focus will completely remain on the existing niche market as we dont want our
customers to be confused with our product line
Resources and Capabilities required: How to use services, customized products,
After Sale Services.


International strategy
International Strategy is a strategy where a firm sells its services or goods outside its
domestic market. The main reason for implementing an international strategy is that
international markets 'open way' for potential new opportunities.


THE THREE MAIN STRATEGIC APPROACHES
MULTI-DOMESTIC STRATEGY : THINK LOCAL ACT LOCAL
GLOBAL STRATEGY : THINK GLOBAL ACT GLOBAL
TRANSNATIONAL STRATEGY : THINK GLOBAL ACT LOCAL

Our glasses have a vision of a GLOBAL STRATEGY i.e.
employing the same basic competitive approach in all countries
where the firm operates


What is Global Strategy?
Global Strategy is a shortened term that covers three areas: global, multinational and
international strategies. Essentially, these three areas refer to those strategies designed to enable
an organisation to achieve its objective of international expansion.

Why Global Strategy is our choice for MONUCLE?
Economies of scale: The extra cost savings that occur when higher volume production
allows unit costs to be reduced.
Global brand recognition: The benefit that derives from having a brand that is
recognized throughout the world
Global customer satisfaction: Multinational customers who demand the same product,
service and quality at various locations around the world
Lowest labour and other input costs: These arise by choosing and switching
manufacturers with lower labour costs
Emergence of new markets: This means greater sales from essentially the same products.

Advantages of Global Strategy

Low costs:

Low cost mainly due to scale and scope economies. Mainly when going international our
products have the same competitive strategy so that would reduce our costs.




Efficiency

The biggest advantage of a global strategy is that it enables a company to leverage
economies of scale. When we sell the same product worldwide, it can buy its raw
materials in bulk, potentially saving the company hundreds of thousands of dollars per
year.
Life Cycle

Global strategy also is useful with regard to product life cycle. Our company can phase
its release of products, introducing older products into newer markets and saving the
launch of a product's most recent version for well-developed markets.
Global brand and reputation
Another great advantage in going global is that the product instantaneously gains
recognition world-wide and establishes a strong brand image.

Entry Modes for MONUCLE:
Franchising:
Franchising is a continued relation, a form of business by which the owner (franchisor) of a
product, service or method obtains distribution through affiliated dealers (franchisees) by
providing them licensed privileges.

Basis for selecting Entry Mode:
Increased sales and profits
Gain global market shares

Diversification
Low start-up costs
Create potential for company expansion
Extent of control is more
Business method is proven and safe

Advantages from the Franchising:

1. Financial: Franchising will create another source of income for the us, through payment of
franchise fees, royalty & levies in addition to the possibility of sourcing private label
products to franchisees. This capital injection will provide an improved cash flow, a higher
return on investment and higher profits. Other financial benefits that we can enjoy are
reduced operating, distribution and advertising costs. Of course that also means more
allocated funds for research and development. Additionally, there will always be economies
of scale with regard to purchasing power.

2. Operational: We can have a smaller central organization when compared to developing and
owning locations themselves. Franchising also means uniformity of procedures, which
reflects on consistency, enhanced productivity levels and better quality. Effective quality
control is another advantage of the franchise system. The franchisee is usually self-
motivated since he has invested much time and money in the business, which means
working hard to bring in better organizational and monetary results. This also reflects on
more satisfied customers and improved sales effectiveness.

3. Strategic: To us, the franchisor, franchising means the spreading of risks by multiplying the
number of locations through other peoples investment. That means faster network
expansion and a better opportunity to focus on changing market needs, which in its turn
means reduced effect from competitors.

4. Administrative: With a smaller central organization, the business will maintain a more cost
effective labor force, reduction of key staff turnover and more effective recruitment.

Challenges to our Entry Mode:
Costs involved
We need to be realistic about the cost of establishing a franchise network against the time it
will take for us to see a return on our investment and ask ourselves if we can afford it.
Loss of control
In franchising, it is the franchisee that controls his/her unit and to a degree runs it their way.
It's here when the operating manual comes into play; if the franchisee sticks to our systems
then it's as if we are running the franchise unit our self. Remember that each franchisee is a
businessperson in their own right and so we do not have hire and fire rights over them. We
do however need to monitor closely what the business is achieving and identify areas of poor
performance. A potential failure can have disastrous results for the network as a whole.
Finding the right franchisees
It can be tempting in the early stages to simply recruit those with the required investment to
help get our franchise up and running. This can be fatal as the wrong franchisees can damage
the foundations of our franchise and bring failure to the whole network.
Managing growth
This may involve changing the culture of our organization to one that is support-oriented. If
they don't get the necessary support they may find it difficult to achieve their aims and your
business could suffer.


Conflict between franchisee and franchisor
The biggest negatives in franchising are the conflicts between the franchisee and franchisor
which as a worst-case scenario, but not uncommon, can lead to legal proceedings. When
franchisees are making money they are happy, but if they are not then the blame usually lies at
the door of the franchisor.