Sunday, October 30, 2011

Key Resources and Partners

Key Partners

Currently we do not have any key partners, the partners we need to help launch our product are:
  • The Canadian Automotive Industry
When we prove that our product does in fact improve road safety, with their help we can make the DBS system a mandatory OEM item in all new cars sold in Canada. This will not only boost our sales but allow us access to funds to improve and innovate our design even more through grants and subsidies.

  • Major Canadian Insurance Companies
Through our testing of the DBS system we will be able to prove that following drivers tend to keep a larger following distance allowing more time to react when a sudden stop situation arises, this will save them money on insurance payouts and provide a monetary incentive for drivers to have such a system installed.

  • Chinese manufacturers
We need a manufacturer that will produce our product at low costs, while keeping our designs safe from being duplicated. Manufacturing costs in North America are very high, to maintain a competitive edge in our industry we must be able to manufacture quickly and in large quantities so a new comer can't blow us out of the water. Our supplier would hold a great deal of leverage over us, since any delays on their side would mean delay for us as well. Ordering from multiple manufacturers would mean a lower quantity discount and the potential of disputes between DBS and the manufacturers. Maintaining a good relationship with our manufacturers is priority.

  • Distribution
Our current Business model suggests that we not sell in retail store since it would up the final sale price, but we still need to ship the product to our clients. Since dealing with shipping companies, individual delivery costs and the overhead associated with that will increase our cost of purchase, we have decided to work with companies like princess auto, Canadian tire and other auto parts suppliers to promote and sell our product. Having multiple distributors will keep them from having to much leverage over us, stopping potential disputes from affecting business.

  • Other Partners
We would also require partners to help us deal with day to day activities, partners in fields of Law, Accounting, Marketing and Management. Sourcing out these positions allows us to keep their leverage over us low, as we could find multiple firms to do this for us.

Key Resources

Our key resources are:

Our product design - for residential vehicles we have simplified our design to the point of "clip and go", and for fleet vehicles our product is simply plug and play. Making the product as simple as possible to install will be one of our key features to attracting customers.

Our multiple patents -We have looked into patents that relate to our product and have found nothing close so we believe that our idea is patentable. With a patent our competitive advantage would increase greatly as we would first movers in our market.

New Market - We are entering a already existing market, with a innovated new product that does not currently exist. This will give us competitive advantage since there are there is no competition to oppose us.

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