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Drone navigation systems represent a prospective industry that grows fast. The new company will work in growing industry of drone navigation systems, and its name will be DronePro. Currently, VectorCal is the only major company in the field. My plan is to develop a leaner and faster version of a company, as long as VectorCal can be considered too slow and costly.
DronePro will be a small company with a great growth perspective. Its nature will be in the development and production of different types of drones for different purposes. The company will develop, produce and sell mass series of drones of general purposes, as well as customized models ordered by a particular customer for his or her needs. The price for customized models will be higher. The mission of DronePro is to produce drones of good quality for different purposes that will satisfy the customers and make the company profitable. The vision is changing the world and making it more loyal to drones as new but very useful devices that can help people in different spheres and situations.
Before focusing on products offered by DronePro, it is necessary to describe its target customers, because the range of products depends on the needs of customers. The drones are becoming more and more popular, and they are being introduced to different spheres of economic activity. Recently, they were used mostly for military purposes, but the picture is changing rapidly. Nowadays, many industries need drones as a cheaper and safer alternative to manned aircrafts. They can be used for aerial photography, as long as it is cheaper and safer to take photos with drones than to use a plane for that purpose. Drones are also used in agriculture for different purposes: to monitor crops and herds, to sow and spray crops etc. Drones can be used for other purposes of monitoring. For example, to watch coastlines, pollution, to find the broken power lines, to watch and prevent crimes, and so on (Austin, pp.273-279). There are also other commercial purposes of drone use. For instance, Amazon has recently developed the system of drone delivery of online orders to customers, and other retailers are likely to follow this example. Thus, target customers of DronePro may include, but not be limited to: retail companies, agricultural companies and farmers, police agencies, environmental organization, power supply companies and so on.
The companys products will include a wide range of different drone types. They may include drones for photography, drones with cameras for long-time watching and monitoring, drones for sowing and spraying crops, drones for delivery of cargos and other types of drones, as well as systems for drone navigation. It will be also possible for clients to order customized drones for some unique purposes. To produce such high-technology products, DronePro needs qualified staff. The staff will include managers, engineers of required qualification who develop drones and navigations systems, workers who produce drones, employees who test and repair drones, sales and marketing staff who take orders, sell and promote drones to the target audience, and other operating personnel.
It is necessary to study the main competitor and find out its drawbacks that should not be repeated by DronePro. VectorCal’s forecasting method is regression analysis. In this method, an analyst fits a regression curve to historical data using a specific formula on the basis of independent variables (explanatory variables) and an error term. The curve is prolonged to future periods and shows forecasted results of a particular data set, for instance, annual sales. Although this methods is relatively simple, it can be useful both in analyzing tendencies of historical data and for correlation analysis. Nevertheless, regression curve is not generally recommended for business forecasting. Curves often show poor results in forecasting competitions (Fox & Fox, 2008). Regression analysis is not very efficient because it does not consider all factors that may influence the results in future, for example, general economic state, availability of loans, political situation, activity of competitors, etc. Therefore, VectorCal had many mistakes in its forecasts, and the actual results often were far from forecasted data.
DronePro should choose a better forecasting method to avoid similar mistakes. It may choose a predictive modeling approach. It is an area of statistical analysis and data mining, related to extracting specified information from data and using it to forecast behavior and other results for the future. A predictive model consists of several predictors, variables that are likely to influence behavior in the future (Senensky, 2008). DronePro should use this forecasting approach because it implements several variables, and future data can be predicted more exactly than with the use of regression curve.
In order to start DronePro, different types of costs should be considered. It is necessary to consider all costs in order to plan them properly. The semi-variable costs will include the costs that combine fixed and variable ones. For example, as DronePro will pay wages to its factory workers, they may receive a fixed portion each month and a variable portion that will depend on the amount of production. Allocated costs should be considered, too. They will include costs that can be clearly related to a particular business process or department. For example, DronePro may have research and development costs associated with engineering department, sales costs related to sales department, production costs, etc. Finally, the company should consider indirect costs that are difficult to associate with a particular department or process. For example, maintenance costs, expenses on security systems, different utilities, rent payments, administrative expenses, and so on.