International Business Strategy 2020



Business Plan & Market Analysis [Peerket] The Hub for Sports Lover First of all, If we take a look at the service that we would like to expand in international markets, we have either opportunities or disadvantages due to our product is virtual and compact. Briefly, information for our product named PEERKET is a communication platform for sports facilities and communities which proposes customer retention, customer acquisition, and better customer relations. In addition, the app provides scheduling and analyzing tools for venues.For mobile app developers, this translates to global app expansion; a great way to drive growth is by expanding into international markets. The advantages of marketing your app internationally include greater brand awareness, entry into lucrative markets, an upper edge over competitors, and the opportunity to be portrayed as a global brand.Consumer Behaviour & Opportunities All the government's right now pushing their citizens and trying to raise an awareness of where health living. Especially in the US obesity is rising each day. In the United States, 36.5 percent of adults are obese. Another 32.5 percent of American adults are overweight. In all, more than two-thirds of adults in the United States are overweight or obese. Around 17 percent of American children ages 2 to 19 are obese. That’s more than 12.7 million American children. One in 8 preschoolers is obese. The good news is that obesity rates among preschool children have been falling in recent years. As of 2017, all 50 states have an obesity rate over 20 percent. Just two decades ago, no state had a rate above 15 percent. Yearly change on the obesity rates can be found on table 1.1. U.S government taking action against obesity is a known fact. There are various programs to fight obesity in U.S. For example, Let's Move campaign to support a healthier life for the children. But as the number of people living in U.S it is almost impossible to reach all the people. Especially to younger generations. Meanwhile there is also a huge amount of people making sports in U.S on a daily basis. And also, these numbers are rising each day even more compared to obesity rates. Information about these people can be found on the table 1.2. Target Market & Market Size & Segments & Penetration What does it mean fitness tech?Includes: Companies leveraging software and technology to augment approaches to developing or maintaining physical fitness. Companies in this category provide tools and services that include workout apps (e.g. Sworkit), wearables (e.g. smartwatches, connected apparel), AR/VR use cases for the fitness industry, and more. Excludes: Health and wellness companies without a fitness-specific focus (e.g. Goop, MindBodyGreen) and companies in the physical therapy market Global fitness tech equity funding since 2013: $2.6 BILLION across 755 DEALSQ2’17 holds the quarterly record for fitness tech funding, with deals totaling $532M in disclosed equity funding. Q3’17 saw $96M in funding across 28 deals with Indian fitness tech startup CureFit’s $25M Series B is the biggest deal.Fitness tech bridges the physical and the digital Startups on our fitness tech market map together have raised over $1.7B to offer new products and services that are digitizing the fitness sector. In particular, there has been a surge in the applications of mobile and cloud technologies, wearables, and on-demand platforms geared towards the fitness industry. The most well-funded fitness tech companiesInternational startups take one-third of global deal share The US has contributed to 64% of global deal share since 2013. India comes in second place, with 7% of the deal share, while Canada takes third with 6%. India’s most wellfunded fitness tech company is Bengaluru based CureFit, while Canada’s most well-funded fitness tech startup is connected apparel company OMsignal. Global Sports and Fitness Apps Market is Expected to exhibit a CAGR of 20.4% During the Forecast Period (2019-2027) Increase in adoption of health and fitness apps, owing to rising fitness-consciousness among individuals is expected to fuel the growth of the sports and fitness apps market. Increase in smartphone penetration and rise in adoption of wearable devices is expected to boost demand for sports and fitness apps, globally. Fitness app users need mobility and efficiency and the wearables devices are expected to deliver both mobility and efficiency. Furthermore, healthy lifestyle preference among individuals is also driving the growth of the market. However, different user interfaces and security issues may have a negative impact on the global sports and fitness apps market growth. The vendors in the global sports and fitness apps market are focused on product launches and are creating growth opportunities through strategic partnerships and alliances with other technology vendors, in order to develop innovative products. The global sports and fitness apps market is segmented on the basis of application, platform type, and region. Furthermore, key vendors in the global sports and fitness apps market are focused on innovative product launch and strategic partnership with other leading players in the market. For instance, in April 2017, PEAR Sports, the personalized and interactive audio coaching app and Wahoo collaborated to bring a new workout channel. This software/hardware partnership now offers users the ability to electronically count reps and monitor their heart rate during specified workouts. North America held a dominant position in the global sports and fitness apps market in 2018 and is projected to grow at a significant rate during the forecast period. This is owing to increasing health awareness among individuals and rise in technological advancement in the region. Moreover, Asia Pacific is expected to be the second-fastest-growing region in global sports and fitness apps market, owing to an increase in adoption of wearable devices among youth population in emerging economies of the region. Segmentation Report North America is expected to be one of the largest contributors in global sports and fitness apps market, owing to the change in lifestyle of people and increasing health awareness. Increasing consumption of fast food and high prevalence diseases such as cardiovascular disease among the geriatric population are the major factors that are expected to boost demand for sports and fitness apps in this region. For instance, according to the American Heart Association 2018, around 2,300 American dies of cardiovascular disease each day, an average of 1 death every 38 seconds. Therefore, in order to monitor heart rate, there is a rise in adoption of fitness apps among individuals in this region, which helps to grow this market positively. The market of mobile fitness apps is evolving in large part due to the fact that more and more people seek a healthy lifestyle. As a result, new devices helping people stay in shape have appeared and the Internet of Things is growing. In 2015, according to the Globe-Go company, apps in the Health and Fitness category came in second by an increased amount of time spent with them, giving way only to music apps. The main players in the online fitness market (according to Statista) are shown below. All of them are engaged in the production of sportswear and sports footwear, fitness bracelets and other gadgets that generate the main revenue. In addition, all companies have their own apps for Google Play and the App Store, which also produce additional proceeds. How to enter the market?The mobile application is one of those options that have entirely changed trade games and revolutionized the culture of interacting with renowned export companies. Exporting provides fast entry and low risk for internationally expand. However, it contains some disadvantages such as low control and low local knowledge. When it comes to the mobile app, one of the key factors for growth is localization.Apart from it, Internationalization is preferably done in parallel with the development process. It won’t directly impact your development process and isn’t that much of a hassle, but it will be extremely useful and time-saving when and if you decide to localize your app. Internationalization is the design and development of a mobile app that enables easy localization for target audiences that vary in culture, region or language. We’re no longer talking about source code or app content; we’re talking about everything that surrounds the app. Ideally, local language alternatives for the website, social media and so forth are available for users. In order to do this successfully, you need a dedicated team that can operate at a local level.For businesses in the digital landscape, particularly those that rely on mobile apps, the answer to monetization without destroying the consumer experience is integrated partnerships.According to positioning strategy and consideration of market conditions for our app, strategic alliance with either local tech firm or well-known local app and running branding operations together might be beneficial for our app. Choosing this strategy might reduce entry costs for the market, in addition, reduce the investment workload. In the meantime, Sharing the workforce and technology might provide efficiency to enhance global mobility and strengthen global competitiveness. As a result of using the experience of strategic allies, our apps localization activities might be faster than usual. This is one of the key factors in the mobile application market. Well-localized marketing materials make it easier for users to learn about our app and will help to ensure that our app appears relevant to your audience. On the other hand, our app will be using partnership channels from IOS and Android markets.SWOTSWOT analysis is a business tool that helps an organization assess its competitive advantages in the marketplace and understand its external environment. In another description, it is a compilation of your company's strengths, weaknesses, opportunities, and threats. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision. We believe for our entrepreneurship model, that performing a SWOT analysis before we commit to any sort of exporting, marketing activities, either we are exploring new initiatives or new markets, is a key point for a business model. Mobile apps have significantly changed our way of life, and they have also helped some to get rich. We see the potential of the fitness app market. Therefore, we provide our mobile app to the potential market in order to create a bridge among clients, users, facilities. However, one of the most difficulties for entrepreneurs, adopting into the market and expand their business. In this point, analysing the competitors in the market and making SWOT would be beneficial for business and it may help businesses to take some precautions against potential risks. We aimed to assess which markets are the most promising for developers. We took the market of mobile fitness apps as an example. 76% of revenues in the fitness app market are generated by the first 10 countries: INCLUDEPICTURE "/var/folders/vt/zpg48vv96xz34nctsc0yykzh0000gn/T/com.microsoft.Word/WebArchiveCopyPasteTempFiles/page8image18449424" \* MERGEFORMATINET According to Statista, the volume of the mobile fitness app market was $1.778bn in 2016, and it is expected to grow to $4.1bn in 2021. Thus, according to App Annie, the percentage of fitness apps in revenue was about 15% in 2016, and the share will be approximately 12% in 2021, which is not insignificant. INCLUDEPICTURE "/var/folders/vt/zpg48vv96xz34nctsc0yykzh0000gn/T/com.microsoft.Word/WebArchiveCopyPasteTempFiles/page9image18362352" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET Source: Company websites, white papers, Annual reports, MRFR analysisAs a result of analysing our App internally and externally, the SWOT table can be seen below. It is divided into 4 parts such as strengths, weaknesses, opportunities, and threats.Business Model Canvas INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET Value Proposition Diagram INCLUDEPICTURE "" \* MERGEFORMATINET PromotionSocial media and e-commerce platforms In our contemporary world, social media can be a useful tool when it comes to the marketing of a product. Taking this into consideration, we decided to use platforms such as ?Facebook, Youtube, Instagram, Linkedin and others in order to promote Peerket. Our accounts on mentioned platforms contain main information about the product, visually attractive infographics which show how Peerket works, information connected to possible discounts and some sports events. Our content is deliberate and simple. It contains only significant data. Content is presented in a simplistic form, being aesthetically pleasant at the same time. By doing so we can encourage potential customers to purchase the product. Moreover, we give followers the opportunity to interact with us and gather useful feedback. We can also find our place on platforms such as ?Pinterest, We Heart It, DudePins, JuxtaPost where the visual presentation of our product is the most important aspect.Another tool to be used is the Email Newsletter. Even if its a relatively old technology it still remains to be a significant marketing channel. The newsletter is a great tool to keep our customers constantly informed about important data, upcoming events and everything that should be conveyed. What is more, it is also an efficient channel to send customers any type of bonus materials or exclusive content that may make them feel appreciated.The other way to promote Peerket is to set up its own website, especially focusing on its high functionality and clarity of presented information. We use the potential of e-commerce marketing.In order to sell Peerket we use online stores such as Google Play, Aptoide, APKPure, F-Droid. In this way, we can distribute our product to a broad clientele. Moreover, we use also our own website from which clients can directly purchase Peerket.Financial Plan Forecast Key Assumptions We created our financial forecast with a financial plan with fitness tech market insights and market insights. Due to revenue opportunities in this industry, we created our financial statements with an optimistic & pessimistic scenario. In the below graph, we try to implement forecasted revenue of the 1st and 2nd year. (This graph includes expected total revenue, total cost & profit with 22% confidence interval) INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET Expenses by MonthExpenditure items divided into five categories such as general costs, marketing costs, customer acquisition costs, taxes and workforce. The excel sheet below describes costs in three scenarios.Income statements and net present value (NPV) by yearsIn this situation, we include the income statement and net present value in the excel sheet. It includes three scenarios such as bad-average-good. The standard deviation of the number might be fluctuating due to market conditions and the other unexpected situations. 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