SmartBridge is a company that employs only highly-educated, professional, and ambitious workers in the sphere of software development and new technologies. Although this business’s activity was established and registered not so long ago, its work is highly appreciated by its partners from the Marriott Hotel who also leave their positive references and recommendations about it. SmartBridge is known for its high-quality works and unique smart systems that it builds in such electronic devices as television sets, smartphones, computers, laptops, and a wide range of other gadgets (Bocken, Short, Rana, & Evans, 2014).
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The company’s mission is to satisfy all its clients and to provide them with the most professional services, regardless of their awareness of certain technologies and experience in previous collaboration with SmartBridge (Schaper, Volery, Weber, & Gibson, 2014). The company has established a partnership with the Marriott Hotel, which has ordered a specific system (Smart TV) for every suite that will give its guests an ability to reserve various room services via their revolutionary product under the name of Application.
Each employee is aware of the company’s goals and its plans for the nearest future. Besides, every organizational objective remains measurable to have an understanding of its abilities and deadlines. The company’s team is always ready to face particular difficulties and challenges in its working process. This motivates employees to be more efficient, productive, and professional in their collaboration with the Marriott Hotel (Bryman & Bell, 2015).
SmartBridge was working with this chain before and was selling other products for this business’s electronic systems and devices. This partnership will give new development possibilities to the Marriott Hotel business and the SmartBridge Company as well.
Business Concept Overview
Production/Service to be Offered
As it was already mentioned above, there are several services that SmartBridge might provide to its customers. However, the company’s activity lies in developing various applications and smart technologies for smartphones, computers, and other electronic devices in the Sydney Marriott Hotel. Moreover, SmartBridge sells its original products to people who might need the help of such services. The company also establishes partnerships with other businesses in order to popularize its services and products among potential consumers.
As to the partnership with the chain of Marriott Hotels that was discussed before, the SmartBridge Company is developing a unique product called Application. This program will be installed and associated with a system under the name of Smart TV. All Marriott five-star Hotels will obtain a new technology that will let their customers use different room-services without having a telephone conversation with the hotel’s staff.
Name of Concept
The name of the discussed business concept is application marketing because our primary goal is promotion and realization of our products, which also implies the company’s income source (Casadesus-Masanell & Zhu, 2013). However, the concept was developed at the beginning of the SmartBridge’s activity on the international market of information technologies and applications development.
This concept is widespread among competitive companies due to its effective system and simple employment (Dasilva & Trkman, 2014). However, the concept of collaboration between Marriott Hotels and the Smart Bridge Company might be considered as the business partnership campaign because these two corporations will allow each other to benefit and gain more creditworthiness among private customers due to the aforementioned mutual project.
Features of Product/Service
The service that was discussed above (application for Smart TV) has multiple features, which let the visitor of a hotel contact the serving personnel via this program. This is very convenient due to the service’s remote functions and its association with other devices. However, the product is intended to offer various smart services to the guests of the Marriott Hotel. Indeed, some “Personal Dimension” will be present in the list of options.
Moreover, our clients will be given an ability to choose from different services that will contain the names of particular employees. For instance, if any customer will have a desire to order a drink from the hotel’s bar, he or she will see that Steve, (a hotel’s barman) will be glad to make any cocktail that you can also choose from an electronic menu. Or if one wants his or her suite to be cleaned, this person will see that Sindy (a hotel’s servant-maid) is ready to clean the customer’s bathroom and mop the floors clean.
Function of Product/Service
The latest service by SmartBridge is intended to provide an application for every smart television set in the Marriott Hotel. Such application will be used as an in-room service for the hotel’s clients. This function will allow them to order a meal without contacting the hotel’s reception via telephone. Besides, they might order different services that this hotel included in its optional list. The application will be installed in all suites, restaurant kitchen, reception, and other offices that might need to be aware of particular requests from the hotel’s guests. This function is already implemented in other hotels and restaurants, which is very helpful and useful because it reduces a time waste and makes the work of the hotel’s personnel more efficient, organized, and client-centered.
Moreover, the aforementioned program was tested in realistic conditions before its development process. This test indicated some issues that were not addressed by our competitors. Therefore, the SmartBridge’s software is considered to be the most sophisticated offer on the market from the technical viewpoint. However, the service was also developed, regarding people’s primary needs and references about similar products.
How will the Product/Service Profit the Business?
There are several methods of how the aforementioned service can benefit consumers and the organization that will implement such communication innovation. As it was already mentioned above, this program will increase the number of orders because they will become much easier to submit. Moreover, such application will be beneficial for the hotel’s personnel due to a precise organization of requests because the electronic accounting system will inform the workers about any order’s progress.
However, the first instance, which will let the SmartBridge Company benefit from the partnership with the chain of Marriott Hotels stems from annual payments that the latter partner will be obliged to provide for technical servicing of the product discussed before.
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Nevertheless, the company will receive full payments from the Marriott Hotel in Sydney, which has already agreed to purchase the system of Smart TV. In order to support the development procedure, SmartBridge decided to use its finances that were gained from previous successful deals with other partners. Therefore, all the expenses, equity, and additional payments of required operations will be covered by the Marriott Hotel business.
Moreover, the Smart TV system will be used as another example of a high-quality work by professional employees from SmartBridge. This factor will attract potential clients or businesses that might need to develop similar services or products. Nevertheless, the clients of Marriott Hotels will see how the company’s system works and might submit their private orders, which will provide SmartBridge with beneficial projects.
Does the Market for your Product/Service have Potential for Growth?
The SmartBridge’s service of Smart TV refers to the market of information technologies. However, many professionals in this sphere claim that this segment is expected to grow during the next twenty-five years (Schwalbe, 2016). All the services developed by SmartBridge and its competitors are in great demand nowadays because various businesses require implementing new technologies in their marketing strategies to increase the number of satisfied customers who usually influence a significant rise in the corporations’ profits (Sekaran & Bourgie, 2016). Therefore, the market of information technologies is overwhelmed with professional and ambitious specialists who develop new products and services in order to remain better than their competitors.
As to the product developed by SmartBridge for the chain of Marriott Hotels, there is a great potential for growth because the first instance of the partnership between two of the aforementioned businesses will demonstrate the efficiency and productivity of the Smart TV service (Santos, Méxas, & Meiriño, 2017).
However, after the successful implementation of this application to the most luxurious suites of the Marriott Hotel in Sydney, Australia, other departments of this business might also be interested in multiple benefits of such collaboration. Therefore, the SmartBridge Company may consider working with other hotels and restaurants in the nearest future, which will increase its reputation and trustworthiness among potential customers.
Furthermore, the SmartBridge Company will recover all its expenditures of developing the Smart TV service for the chain of Marriott Hotels, which might give a possibility of establishing a separate department that will be responsible for partnering with such businesses as hotels, pharmacies, cafes, and so on (Woodside, 2015). This policy will be advantageous for the company because it might influence the employment of new workers whose duties will include completing minor orders for private customers.
Can you Produce your Product/Service at a Low Enough Cost to Allow a Margin/Profit – Break Even Analysis
The partnership between the Marriott Hotel in Sydney and the SmartBridge Company was established and confirmed with the use of specific documentation that obligates both sides of this collaboration to follow all the given rules. However, one of the rules says that the Marriott Hotel business is required to pay a set amount of money, which will provide its partner with benefit and profit for the developed service and human resources that were used during their mutual project. Moreover, all the prices were discussed at the beginning of this collaboration in order to reduce all possible misunderstandings to the minimum and rely on each side, which is crucial for big financial operations.
As to selling the Smart TV service to other private customers, it might not gain much profit because people do not usually need this feature in their houses or apartments. It would be advantageous for SmartBridge to establish a partnership with another business that might be interested in implementing such service in order to satisfy its clients (Wilkinson, Dundon, Donaghey, & Townsend, 2014). However, the price of the Smart TV service are high enough to cover all expenditures that are necessary during the development process and will provide payments to all the company’s employees who were involved in the project.
The following break even analysis will provide approximate information about the aforementioned product’s value and how will its price provide the SmartBridge Company with enough profit to pay for all its necessary expenses (Eggert, Hogreve, Ulaga, & Muenkhoff, 2013). There are three factors that influence any company’s profits, which are:
- Per-unit revenue.
- Average cost of one unit.
- Annual or monthly costs.
|Per-unit revenue||Per-unit cost||Annual or monthly costs|
|Smart TV service||$ 20,000||$ 15,000||$ 2,000|
In this instance, the margin will be five thousand dollars, whereas the overall monthly profit will be $7,000 per one unit. As one item is worth $15,000, the selling price of $20,000 will cover the development expenses and will gain additional profit for the SmartBridge Company. The revenue is possible to be generated on the basis of first purchase fee and subscription fee.
If your Concept does not Generate Revenue, how does the Organization Achieve a Return on Investment?
The issue of returning investment finances that were used for developing the Smart TV service was considered by the SmartBridge Company in the very beginning of this project. The team’s mutual solution was to rearrange or create new applications with the use of this investment in order to sell it and gain more profit, which is necessary for the company’s existence on the world’s market of information technologies. “Revenue deferrals, when combined with significant indirect costs and/or immediate expensing of investment expenditures, exacerbate the mismatch in the timing of revenue and expense recognition.
As a result of the increased mismatch, small changes in the deferred revenue liability can have a disproportionately large impact on future profitability and can make current margins poor predictors of future margins” (Prakash & Sinha, 2013). As it was mentioned above, the SmartBridge’s investment loss is excluded because its service has to be purchased due to its partnership contract with the Marriott Hotel business.
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