CHAPTER 17
Sample Plan #2: Technology Manufacturer THE
BUYER NEEDS A HUNDRED EYES, THE SELLER BUT
ONE.
– ITALIAN
PROVERB
relates to a developer and manufacturer of digital encoding, decoding and multiplexing products (i.e., a technology-based products company). Although the company is relatively young, the innovative power of its proprietary technology has created immediate opportunities for global expansion. The company, formed and operated in Israel, has obtained significant funding for expansion based on achievement of technical milestones and initial customer orders. While the company could continue to operate as a niche player from Israel and deploy sales representatives to various parts of the world, it has decided to establish formal sales operations in three key markets: the United States, Europe and the Asia Pacific region. United States operations will be through a wholly-owned subsidiary, while sales activities in Europe and Asia will be through a distributor network. In addition, the company is looking to outsource customer service and pursue low-cost manufacturing in the AsiaPacific region. Potential customers include a number of large telecommunications firms, many of which are owned or substantially regulated by national governments. This adds a specific government relations feature to this business plan and strategy.
THIS SAMPLE BUSINESS PLAN
Technology Product Company Entering Multiple Global Markets
ADM TECHNOLOGIES INTERNATIONAL BUSINESS PLAN ADM Technologies (“ADM” or the “Company”) is an innovative and emerging leader in the market for digital media products and systems. The Company’s best of breed technology, optimal timing of market entry and skilled resources will ensure a very bright future in what is expected to be a global, multi-billion dollar market. ADM has developed advanced technology and system architecture that delivers improved technical performance and operational efficiency at lower cost than existing products. ADM digital encoding, decoding and multiplexing products will meet the requirements of three critical functions that must be performed in digital media broadcasting systems. The Company launched operations in Israel where it began its initial research and product development. In 1998, ADM was awarded its first large contract with a leading company in the digital communications market that required ADM to design and develop an advanced multi-
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