Company’s purpose
The company for which I will develop a business plan will specialize in the production of bands for smartwatches of different types. This choice is due to the relevance of this type of device in the electronics market. It is important to note that mobile devices such as smartwatches are developing, and for ease of use, many companies produce a variety of accessories. One of the most popular types of smartwatch accessories is bands. Therefore, the products are trending and are expected to be relevant for at least several decades.
Company’s philosophy
The company’s philosophy will be based on minimalism. According to Osterwalder (2020), “the challenge is that the concept must be simple, relevant, and intuitively understandable” (p. 1). It applies to branding, band design, packaging design, store architecture and interior features, services, and more. For example, the word Looj was chosen as the company name. It is short and easy to pronounce and contains oblong letters such as L and j, which are associated with bands for smartwatches. The design of the bands will be as simple as possible, according to the smartwatch model for which they will be produced.
Design of the store
Particular emphasis will be placed on the store’s interior in which bands will be sold. For example, it is worth considering the design of Apple Stores stores. However, by contrast, Looks solutions will avoid fashionable design solutions. On the one hand, it would save money. On the other hand, this solution will make the company unique because the minimalism used by the company will not have a design or fashion solutions but a natural desire for simplicity. The famous phrase of the architect Mis van der Roe, “less is more,” is used by him to convey the idea of his buildings (Cohen, 2018). However, it is notable that minimalism in this context refers only to space and materials used but not to the idea itself. The idea remains fashionable, and the buildings stay futuristic and impregnable. The concept of Looj Company stores will be based on simplifying the idea itself. For example, the design of the stores will be done in the Scandinavian style of a grandmother’s house, where the focus is on coziness and comfort but not on design ideas and trends.
Ecology
In addition, the company will follow another significant trend in manufacturing smart watches bands – sustainability. Looj will produce recycled bands. Thanks to this approach, it will be possible to establish a specific system of discounts for clients who care about the environment. For example, customers may be able to rent old smartwatch straps and get a discount for buying new ones.
This strategy has several advantages. First, the lack of expensive materials in the production of watches and minimalism will contribute to the reduction of funding for their production (Management Association, 2018). Secondly, discounts and priority in eco-friendliness will significantly increase the company’s popularity among customers and establish quality relations with eco-activists and government structures to strengthen its position in the market.
Economic decision for the company’s success
The Looj features described above, which relate to the design of straps, shops, and other components, play an essential role in attracting new customers and preserving existing ones. Consequently, in its development strategy, Looj will be guided by the concept of forward vertical integration. It means that the critical focus of the company will be on retailing, as well as services for customers. Vendors serving customers will be carefully selected. In addition, they will be trained in professional customer service skills. The shops will host different events to promote the company and create a friendly reputation. Events will play an important role as they will position Look stores not only as a place where smartwatches can be purchased but as a public space, a point of attraction where people will want to spend time.
All of the solutions listed above will help to improve the company’s reputation and increase its competitiveness in the market due to a non-standard approach to watch production, shop design, and customer service. Due to the attentiveness to client interaction, the company’s philosophy touches upon such vital aspects of the business model as customer segments, value propositions, channels, and customer relationships.
Market research insights
Bands (or stripes) for smartwatches are closely connected with the whole smartwatches market. How this type of device is developed directly depends on customers’ need for bands or stripes for them. It is, therefore, vital to consider the general trends of this market. Among them, one can consider the rising demand for wireless fitness and sports devices, the increased health awareness among consumers, growing internet connectivity, and the emergence of many players in the market (Jobber & Ellis-Chadwick, 2019). In general, this segment of the market is full of players. Among the main competitors who produce bands for smartwatches, one can consider such as Apple Inc., Google, and Samsung.
References
Cohen, J. L. (2018). Ludwig Mies van der Rohe: Third and updated edition. Birkhäuser.
Jobber, D., & Ellis-Chadwick, F. (2019). Principles and practice of marketing, 9e. McGraw Hill.
Management Association. (2018). Wearable technologies: Concepts, methodologies, tools, and applications: Concepts, methodologies, tools, and applications. IGI Global.
Osterwalder, A. (2020). Business model generation: a handbook for visionaries, game changers, and challengers. Wiley.