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Vidcom Business Plan

Vidcom entry into the market is intended to change the film sector by focusing on the growing needs of the industry. Upon the launch of the service, it will be the organization’s mandate to boost the online Vidcom presence in order to attract customers from the global market other than the local US base. The opportunity that exists in the film industry is still viable for potential investors due to the smaller number of firms that offer the service and the existing business gap due to technological advancement. For instance, some of the opportunities exist in the non-existence of on-site human resources in our service delivery, making it more technologically centred for the customer specifications. The activity reduces the cost of film production on the side of the clients since it is self-service oriented, thereby, attracting more customers. Additionally, with existing customer support, better and more efficient Vidcom films services will be provided to customers at more affordable cost.

The key indicators of viable economic performances from the projected financial plan include asset valued from $700,000 in the first year to $1.55 million by the end of the fifth year. Moreover, the net income in the projected duration is anticipated to rise from $160,400 to $322,000. The financial position of the firm is also solvent, an indicator that the company will have a stable business operation in the film industry.

Considering the existing firms that offer film production in the industry, for instance, Blue Sky Studios and Pixar, Vidcom will have to find an expedient way to penetrate the market and sustain its operations. Rivalry firms also offer the same services as Vidcom, therefore, the firm must have a better insight into the industry by focusing on the industrial niche.

Vidcom idea originated from three individuals with background knowledge in Digital Film Making Course from their respective universities. Considering the gap that existed in the film industry, these individuals came up with the idea of focusing to improve the film production as well as film services based on technology. Through technology, most of the human effort required in the film production is limited in the event of production, which is why Vidcom doesn’t require on-site human resources. The operational costs are spread across the network.

The company idea was reached with the aid of statistical data which focused on the number of complaints relating to lack of customer satisfaction and inflated costs in film production. Besides, the idea was additionally favoured by the academic knowledge of the proprietors from a short-term business course that they underwent which focused on the current trends in the film industry and innovation. Based on the knowledge and skills gained, one of the individuals have been charged with the mandate to ensure a smooth running business platform, in this case, the online platform, in order to ascertain and oversee various applications from the clients who wish get film production service from the platform. The other two individuals have been charged with overseeing smooth operations in the production supplies and other services required by the clients.

Based on the reports of the three individuals, the company is expected to invest heavily on the film service delivery by not only focusing on the current film production requirements but also focusing on the satisfactory measures based on clients’ preferences. Consequently, for this milestone to be realized, Vidcom will focus on bringing on board experienced film production service providers who can be able to develop the online platform in order to attract more clients.

Upon its launch, Vidcom’s mission seeks to become the most accessible film production platform where various clients can access self-servicing film productions services as well as production supplies and services. Moreover, Vidcom seeks to provide a more competitive platform which will compete effectively with the rivals in the market which will make it the best alternative in the global market by the end of 2021.

Vidcom aims to provide film services that are tailored to meet client preferences as far as the current market is concerned. The film production is to be accessed on the online platform in order to increase the ease of accessibility.

The firm has been in the industry since July 2018 under the name Vidcom. The company aims to provide a platform that will satisfy clients’ needs based on the modern technology which other existing rival companies cannot offer. The stakeholders also seek to benchmark with other firms which have adopted the modern technology in the film industry in order to determine the customers’ preferences due to the changing world.

By the mid of 2019, the firm seeks to have served approximately 12,000 clients and the number is expected to double by the end of the same year. Furthermore, the number of clients served is expected to hit 50,000 by the mid of 2020 based on the growing influence and sufficient service delivery to customers.

Vidcom will provide film production services and supply to its customers such as movies based on the online platform which has been developed. The film is online based due to technology in place which has a limited operation by persons.

Generally, the film industry is not new to the market, however, based on the technology in place, Vidcom makes the film industry to take a new shape with its entrance into the market. The initial capital required for the startup is low compared to other service industries since the business is based on an online platform. The minimal capital required for startup makes it cheaper for new entrants as well as large revenues that are involved which can attract potential investors. Nevertheless, the business is quite technical since no on-site human resources are required, therefore, much care should be taken in order to ensure smooth operation. In addition, the industry is borderless, thus, industries from across the border such as Vidcom can venture into business.

The current trends in the film industry due to the emergence in technology has created a need for online platform film service and supply. Individuals seek ways in which they can get quality and faster film services. This has necessitated the need to find a satisfactory platform in which customers' growing urge can be solved. Additionally, quality videos need to reach the market at affordable costs.

Even though the film industry used not to be online based, the growing need for the service has led to a focus on technology which can make a number of productions. The limitation, however, comes when the human performance is eliminated on the site. Vidcom tries to fill the gap between the use of advanced technology in the event of production.

Vidcom will target potential film clients who need to do their production in the online platform. Such customers prefer online platform due to its speed and quality as they target a wide range of viewers. The firm, fortunately, offers the assurance of the same.

The customer segmentation will focus on the type of audience the film is targeting. For instance, the film targeting teenagers will ensure that lighter language and content is regulated as opposed to adult films. Vidcom will ensure this by instructing their customers on what to do as far as business ethics are concerned.

In order to achieve the required market share, Vidcom will participate in vigorous social media marketing in order to create more awareness of the market. The three stakeholders will be the ones to spearhead the advertisement in the social media as well as the company's website. The cost and revenue ratio will have to be compared annually to ascertain the profitability of the business.

As far as Porter's five forces are concerned, the threat of new entrants will be moderated with the operational costs required in this type of business. Besides, rivalry among the existing firm offering the same service with the view of having a grip on the market share is likely to be a moderate threat since Vidcom is technology oriented.

Even though the film industry is not new in the market, Vidcom will still aspire to outdo other competitors such as Film Tiger, Birch Tree among others in the market. Additionally, more resources will be pumped in order to ensure the security of the website in order to eliminate any possibility of hacking. With the help of the skilled personnel in modern film technology, the online platform is likely to thrive despite the rivalry from the competitors.

The marketing mix of the Vidcom services will depend on the video content pages. The application will be done online by the clients who desire to receive the services from Vidcom. The duration will come in different packs namely; CPM basis, CPC basis or the CPA basis suggested by the video content pages.

Vidcom charges slightly lower prices than the competitors which makes it more appealing to customers who are price sensitive, while ensuring the quality at the same time.

The film service targets both genders since everyone is entitled to entertainment. In terms of age specification, teenagers who are still schooling can be able to access educative films which focus on their studies. The film service as well targets customers from different races in order to have a wider market share.

Vidcom strength relates to its uniqueness which is based on technology way other than the existing rival firms. Vidcom will operate on an online platform which is controlled by skilled personnel who will never be on-site. In terms of the product diversification, the firm offers convenient duration for film customers at convenient prices other than the competitors. The films sector is likely to be profitable since the firm will even cover shorter films at the quoted price. Nonetheless, challenges concerning the security of the system is likely to arise, hence, the need for security funds to combat hacking of the online system as the market share increases.

The after-tax income will grow form year 6 at 10% to perpetuity. The required rate of return is 15% per annum. Using Gordon's valuation model, the value of the income after tax for the firm from year 6-∞ is given by; V= = = 54,419,520.33

We use this as after-tax income for year 6, assuming the life of the business was 6 years to calculate the value of the business.

The total value of the business is therefore $28,354,521.94

The above schedule shows the breakeven analysis for the three products, CPM, CPC and CPA. From the above analysis, the business will breakeven after selling 362, 310 and 362 units of CPM, CPC and CPA respectively.