Business Plan for 3D Printing in Qatar
Student’s Name
Institutional Affiliation
Business 3D Printing in Qatar
4.0 Demand Analysis
Market Segmentation
The 3D printing business in Qatar targets mostly Enterprises that sell merchandise and artistic material. 3D printing in Qatar is going to revolutionize manufacturing of metal plastic and jewelry. The business is therefore going to be focused on organizations that sell the mentioned material on a small scale basis. An analysis into the Qatar government shows that a large section of its citizens are enthusiasts of jewelry and art. 3D printing aims to fulfill the needs of such customers by simplifying jewelry customization services and artistic manufacturing. In Qatar, the technology will also be used by the venture in the medical industry. This is because the partners of the business are medicinal experts.
The service also aims to target customers who have industrial Ventures and require 3D printing as a service. This means that 3D printing will be availed to some of the customers who are Enterprises instead of individuals. Therefore, we can say that the 3D printing business also targets small and medium Enterprises in Doha industrial area of Qatar.
The convenience that 3D printing is aiming to attain is going to be based mostly on small circle segments as it expands into larger circles. The focus on personalization is going to be crucial on such a business venture, this means that 3D printing will start from targeting individuals and move into Enterprises. There are some pliable options for the 3D printing venture including business creation services such as three-dimensional logo design (Barnatt, C. (2016). The business today for aims to be a pioneer in changing how artistic personalization is attained in Qatar. It entails diversifying the options that are available for customization and material manufacturing.
Sales and marketing is the most crucial part of a business. This is because very many businesses are feasible conceptually but are unable to get clients due to poor methodologies in sales and marketing. 3D printing is a very rare venture that hasn’t yet been entirely pursued in areas of the Middle East. The Middle East is a region that is constituted of very many consumer economies such as Qatar (Sahin, Bayram & Koc, 2019). This means that the approach that will be made to enable selling she’ll be effective. The company aims to pursue 3D printing as a service although, there will be products that the company will sell from the 3D printing. The sales and marketing approach should focus on 3D printing largely as a service that will be offered to the people of Doha in the industrial area of Qatar.
3D printing has not yet been perceived as a manufacturing venture in very many countries including the Middle East. Considering that the country targets social development, economic growth and environmental conservation (GSDP, 2008), 3D printing is a pliable pursuit as a business venture for a country like Qatar. Qatar is a country that is not focused on manufacturing (Wright, 2019). This means that 3D printing is going to be a feasible manufacturing option for accessories such as plastic and PVC. The investigation of the investment climate of Qatar and the market analysis is also going to be pictured as it creates an insight of how well the 3D printing business is going to perform. In as much as there are no direct competitors of the business venture, indirect competition will be analyzed and put into picture as well.
Trends in Economy
Qatar is one of the most successful economies in Asia and other major regions of the world such as Australia and Africa (Erdogan, & Gedikli, 2018). The country is a big shot in its expenditure levels and a very great hub for premium businesses. High end products are likely to survive in places lie Qatar and the wealthy parts of the Middle East (Cordesman, 2018). Qatar targets for the economic development in order to fulfill its fourth pillar of economic prowess by 2030 (GSDP, 2008). The country is therefore seeking to build an environment that is suitable for businesses that are able to start and scale. The management of the environment has also promised to ensure that there is business harmony between Enterprises and their customers and Enterprises and themselves.
Customer and market behavior are one of the most crucial part of a business (Gremm, J., Barth, J., Fietkiewicz, K. J., & Stock, W. G. (2018). This is because very many businesses are feasible conceptually but are unable to get clients due to poor methodologies in sales and marketing (Good, W.S. (2014). The approach that will be made to enable selling should be effective aims to pursue 3D printing as a service although, there will be products that the company will sell from the 3D printing. The sales and marketing approach should focus on 3D printing largely as a service that will be offered to the people of Doha in the industrial area of Qatar.
Category Demand
Many of the people in Qatar have an appreciation of personalization. This means that most of the customers of the 3D printing business will be the people who will have they need to solve their customization problems. The customers will therefore be obtained from circles that share similar interest. Looking at enterprises as customers it is important that the business considers how it will wants to offer its 3D printing services. Faster customer response will be obtained by having online platforms that will be able to showcase the 3D printing business. Setting up our website and social media platforms will enable our customers to reach to the business and also know more on what the business has to offer. With a business being online, potential customers are able to make an effective follow-up even without them having to visit the business location (Skinner, 2014).
Marketing traction will be gained by the traffic that will be obtained on the online platforms that the business owns. At some point, the online platforms will generate traffic and conversion for the business meaning that some customers may be drawn towards accessing 3D services through the knowledge that they will have obtained from either the website or the social media platforms of the business. There are still many pliable benefits of a business being online, these benefits are dependent on what’s the business does and how it offers its products or services (Skinner, 2014). 3D printing will therefore benefit even more from having online channels that will create traffic for the business. It is recommended that the business divides its customers into two categories:
Individuals:
The larger market channels for the 3D printing business is going to be obtained from individuals who prefer customization of various merchandise and arts such as jewelry. The people of Qatar have already proven to be enthusiasts of customization and this means that they will provide market for the 3D printing service. There will be products that will form a base portfolio of the 3D printing service venture. These products will be used for display and also solved when the customers will start making orders (Mathur, 2016). Individuals will also influence the second category of the business customer portfolio. Various material will be made available for sale and also a number of services should be availed for the customers. With 3D printing technology, jewelry customization is expected to be up to 30% more efficient (Ventola, 2014). The efficiency that 3D printing is going to bring into the market of Qatar in terms of jewelry and art customization is going to be one of the key differentiators of the business.
SMEs:
SMEs is a term that is used to refer to small and medium Enterprises. In the United States, 3D printing is used more by companies than by people. The usage statistics of 3D printing in the USA can as well be reflected in Qatar. The business will therefore target small and medium enterprises as well by availing 3D printing as a service to them, especially in the healthcare industry with material modelling. There are some companies that require 3D printing services such as indoor and home decor customization enterprises and hospital product manufacturing companies. Orders from companies will be handled differently when compared to others from ordinary individuals who will majorly be citizens of Qatar. The Doha area is comprised of people who participate in very many business activities (McGann, J. G. (2019). This means that at some point, both individuals and business will contribute to almost an equal share of the business market.
6.0 Estimates of Operating Results and Financial Analysis
The pursuit of business is dependent on various market factors that influence how the business will be carried out in the location where it operates. 3D printing is one of the most effective and trending pursuits that is taking the market by surprise (Shafiee & Atala, 2016). The efficiency of 3D printing simplifies material production such as industrial processes that were initially used for production of material such as plastic and PVC accessories. The business of the 3D printing company is expected to begin at a startup level and accelerate in its niche market of mainly manufacturing under the HMC (Hamad medical clinic). The subsidiary acquisition is one that is to draw enough potential into the business and to enable it to extend into other businesses.
Projected Operational costs within 50 operational hours (1 week) of a single machine
ITEM (Variable Costs) QUANTITY UNIT PRICE ($) PRICE ($)
Printer spares (units) 50 27 1350
Printing Resin Liquid (Liters) 47 100 4700
Power (KWh) 200 0.05 10
ITEM (Fixed Costs) PRICE ($)
Printer Maintenance 130
Printer Depreciation 50
Rent 670
Employee Labor 5000
Anticipated Monthly Cash Flow Statement for 1st year
Charges for 3D printing ($): $50 per service hour
Hours of operation in a week: 50
Operation and depreciation cost per service hour: $20
Revenue per service hour: $30
Weekly Net per machine: $1500
Net weekly Profit: $15000
Net Monthly Profit: $60000
Monthly operational costs: $4000
Monthly revenue: $56000
Financial Analysis
Gross Margin Ratio (monthly):
Gross Profit Margin/Gross Margin;
(56000-4000)/(56000)
0.92
Net Profit Ratio (Monthly):
(60419/111000)* 100
55%
Current Ratio:
Current Assets/Current Liabilities
Current Assets=48,220.00
Current Liabilities= 23420
(48220/23420)= 2.058
Debt to Asset Ratio:
Total Debt/Total Assets
70000/137,720
= 0.508
Debt to Service Ratio:
Operating income / Debt Service
56000/70000
=0.8
Debt to Equity Ratio:
Total Liabilities/Shareholder’s Equity
28,880/70000
=0.4125
Return on Investment:
8900/120000×100
=7%
Return on Equity:
60000/70000×100
=8.5714%
Start-up costs & expenses with notes and references
The startup costs for the business will include a number of expenditures including: branding, rent, marketing and advertising, licensing and insurance. The estimations will also give room for considering consumables such as material, printing resin, nozzles and sheets (Barnatt, 2016). The total setup cost of a printing machine ranges from $1,000 to $10,000 (Schubert, Van Langeveld & Donoso, 2014).
Expected investment: $70,000
Number of machines: 10
Income statement for 1st year through 3rd year
Revenue per service hour: $30
Weekly revenue per machine: $1500
Total weekly Revenue: $15000
Annual Revenue: $780000
Opening Balance Sheets and budgets
The following financial analyses are not yet present for the business:
• Gross Margin Ratio
• Net Profit Ratio
The business is yet to record some entities of its financial statement as it is aiming to fully actualize its financial transactions. The initiative therefore is focus reliant and most of the values are from projections and data sources (primary and secondary).
Refer to Excel data sheet for more statistics
Revenue Model
The business expects to obtain its revenue through:
• Selling product from 3D printing
• Selling 3D printing as a service
These spheres of business could be projected become a driving force for the economic development boosting, as they helps to minimize costs, decrease timeframes, and stimulate the investments flow.
Anticipated Revenue
The 3D printing market is characterized by the tremendous growth and the overall market had $9.9 billion in 2018 while it is projected to be $34.8 billion by 2024 (McGann, 2019). The market is also very diverse because the products of the 3D printing technologies can be applied for customized products, manufacturing, and development of new industrial directions. The figure below demonstrates the development of the industry across the countries, determining the main peculiarities of the further market growth possibilities. As a result, the 3D printing market is highly competitive and its intensity would grow in the next years, creating specific opportunities for the business to start its performance and win specific market niche.
Fig. 1. The 3D Printing Market
Fig. 2. The 3d Printing Industry
Feasibility of Financial Projections
The estimates are provided as according to statistics which have been projected by various business models in the 3D printing business. There are also options that create added value within the 3D printing business that haven’t been captured in the revenue model of the business (Mathur, 2016). There are some instances where extra charges are inflicted such as post processing and design. These are however entities that do not reflect huge values on the financial statements and therefore, are best applicable in the business setup.
The feasibility of the financial projections is also dependent on the efficiency of operation procedures within the business. This means that certain entities of the business functionality will have to stay at its presumed constant efficiency. For the machines to have at least 50 operational hours each week the workflow must be unending. This means that proper marketing should be done so that they can be a consistent stream of customers who require 3D printing products or services. In any business the prices are also likely to fluctuate, this is why the projections were focused on the business when it was at its growth and maturity stage.
Discussion from Survey of the Best Questions and its impact on the Business
Questions in survey:
Are you familiar with 3D printing technology? *
• Yes
• No
Are production processed and services in Qatar affordable? *
• Yes
• No
3D printing builds a three-dimensional object from a computer-aided design model, usually by successively adding material layer by layer, which is why it is also called additive manufacturing. The technology involves programming material into the desired product.
Would you like to be customers of 3D printing services?
• Yes
• No
How would you like to be customers of 3D printing services?
• Purchase 3D printed products
• Use 3D printing as a service for your personal or business needs
Comments and/or questions
The data was collected via Google forms through the following link:
https://docs.google.com/forms/d/e/1FAIpQLScpERqo334haDdwXJhxbuYdJ_hE1j7hEPb1qT1XFAF2DMZJGg/viewform?usp=sf_link
In understanding how applicable a project will be, it is important to consider what the market sees in the product a company is about to offer. The team therefore conducted a survey that including questioning a sample size on their views on 3D printing. The results from the survey done by the team targeting potential customers is to provide a hint of how the business should adjust its functionality to sell.
The survey indicate that may people are not yet aware of 3D printing and how it works. A large percentage of the respondents showed lack of knowledge in 3D printing, this shows how much the business needs to organize itself and regard marketing and product awareness. Product awareness will enlighten the potential market on how 3D printing works and how beneficial it is. The product will also need time to be adapted by the market, however, this time is inversely proportional to the amount of marketing done.
The survey also indicated that services involving production are less satisfying than the demand for production, and this has influenced the market pricing as production pricing is higher than other countries. The results amplify how much Qatar is a consuming rather than a producing company. The results spurred hope for business success as 3D printing is supposed to fill in the gap of inadequate production. The business is also bound to charge less margined costs than that of other production companies, this would create value within the 3D printing business.
From the primary data collection activity, it seems like 3D printing will majorly grow in the jewelry industry. This is because a large fraction of the respondents anticipated of its use in the jewelry editing industry. However, there were some respondents who also displayed interest of 3D printing in other production dockets. For the business, it means that there should be adaptability in the amount of resources used to satisfy the customers.
Conclusion
Feasibility
Inasmuch as the venture that is associated with constructive printing is worth about 30 billion as per the beginning of this year, the success of The Venture is still not assured. There are also challenges that have not even been anticipated to be a part of the business action. Networking with engineers and designers is also an important way of creating a good platform for marketing and operations. The business will have to take account that the accuracy of the product or the service is dependent on how the technical job is done. The profit margins that are anticipated are likely to vary largely depending on how the business takes account of its responsibility.
Internal and external factors are crucial in ensuring that the Doha market reacts to 3D products and services. Even if the market of Kuwait has a large capacity, it is not prepared for a product or a service such as 3D printing, this would mean that marketing will have to be done effectively so that product awareness is attained. Recruitment will involve added qualifications such as the knowledge of the CAD software and the ability to navigate through design applications for 3D design orders (Schubert, Van Langeveld & Donoso, 2014).
The feasibility of the business is therefore questionable, this is because actualization is yet to be attained. In business actualization, many bottlenecks that had not been anticipated start showing up. The business operation portfolio is also subject to a lot of changes, such as business terms and service/operational level agreements.
Recommendation
I would recommend that the business start with a proof of concept in order to further proof that it is applicable in fulfilling customers’ demands in Qatar. The business should therefore incorporate its legal matters and begin business activity in order to further the business concept. Putting an idea into practice further analyzes is applicability and allows management to further develop it and avoid bottlenecks. In a business process, definitions are optimistic as there have been no real ways of testing the business.
The firm in charge of the business venture should also focus on marketing and brand awareness. The business needs enough customers to fully effect its financial projections. The concept of 3D printing will therefore have to be advocated by the business so that the market is aware. In conclusion, business marketing affects product adaptively and enables the business to be maintained at a specific rate of operations.
Future Market Potential
The growing world-class technology system that’s the world is turning into to be a great reward for the 3D printing business. In a fast-moving region such as the gulf Middle East, technology is important in propagating national economies towards their goals. With a well reliable outreach and a good operational systems, 3D printing is bound to experience a bright future. More regions and economies of the world are going to adopt 3D printing technology in the coming future period the adaptation of 3D printing technology will also mean that the business will experience competition in the coming financial years. The business will therefore have to account for the value it creates within the market and how it satisfies its customers. However, so far, competition is the largest threat that the business is likely to face in the near future.
Product development will also be a crucial inclusion that the business will have to make (Good, 2014). This is because with the changing technology, the needs of the market are likely to be diversified. The need to flash out ideas and brainstorm concepts will be amplified by the changes that are anticipated by the business in the near future.
References
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