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BUSINESS PLAN FOR DAM TELECOM EGYPT Company: DAM TELECOM EGYPT
Research Proposal · July 2020
DOI: 10.13140/RG.2.2.18194.07367
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BUSINESS PLAN FOR DAM TELECOM EGYPT
Professor Supervisor: [Link] Sabek
Researcher: Ahmed Ali El-Sayed
Job Title: CHRO
Company: DAM TELECOM EGYPT
Degree: Master Degree
The Arab Academy of Management and finance science
Master of Business Administration
Assignment Cover Page
Subject Name: Business Advisory Service for DAM TELECOM EGYPT
Location & Campus where you study: Egypt , Cairo The Arab Academy for Management and
finance science
Title of Assignment: Business Plan for DAM TELECOM EGYPT
Student name: Ahmed Ali El-Sayed El-Sayed
Student Number: 01000 304576
Professor Name: [Link] Sabek
Group Number: One for 10 AM
Assignment due date: 18th July 2020
Date of Submission: 27th July 2020
Table of Contents
1- Executive Summary
2- Introduction
3- Business Description
o Business History
o Vision statement
o Missions statement
o Our Value
o Business Goals
o Our Strategy
o Product and service
o Customer segment
4- Industry and Market Analysis
o PESTLE Analysis
o Porter’s 5 Forces
o BCG Model
o Competitor Analysis
o SWOT Analysis
5- Marketing
o Research Methodology
o 4PS Analysis
▪ Service and target market
▪ Service detail
▪ Placing
▪ Promotion
o Evaluation of Marketing
6- Operation
★ Legal and Licensing requirements
★ Business name and Legal Structure
★ Legal issues
● Business Premises
o Location
o Internal Layout
o Basic Equipment Required
Process:
o General Process
o Critical Risks and Contingency Plan
Organization Structure:
7- Financial Projections:
o Basic assumptions and information
8- Implementation Plan :
9- Appendix :
Business Plan for Dam Telecom Egypt Company
1. Executive Summary.
Dam Telecom serves the global telecom industry, with special focus on
executives within operators, service providers and the enterprise users of
telecom products and services. We needed to do business plan for a new service
in Middle East like establish a new project for 5G and Extend the Viber cables
Network in KSA and Egypt especially in the new administrative capital.
The principal advantage of deploying optical-fiber cabling instead of older copper
cabling is that it carries telecommunications transmission farther at higher data
rates. Fiber`s higher bandwidth and lower attenuation compared to copper make
this possible. This business plan will provide specific insight into every aspect of
the business in order to be presented to future marketing: This is a detailed plan
of marketing strategies to attract and retain potential customers. Description of
the company: This part will clearly state the missions and vision of the company
as well as the Entrepreneurs’ information. Industry and Market Analysis: This
part deals with a large amount of analysis on the market potential, including
PEST analysis, Porter’s 5 forces and Competitor analysis in order to clarify the
opportunity of this Industry. Operation: Business Premises and Risk Anticipation
processes are discussed. Financial Projection: A detailed projection on the profit
and loss for 1 year is provided in this part. Implementation Plan: This is a short
description for the next steps that the business will take in the next 1 year.
The purpose of this business plan is to get a line of credit to fund the business
operation for the first year.
2. Introduction.
We all enjoy the benefits of the information age but we may not be aware of the
range of technologies and infrastructure that underpins the Internet and the
services that it supports. There are many companies involved in the business of
providing and operating such resources. How companies seek to make a profit. How
telecommunications companies tackle the challenging Information and
Communication Technology market place - how they make a case for investment,
develop and market products and how they operate telecommunications networks
and computer-server resources. Topics covered include: an introduction to the
telecommunications business; regulation; business strategy; corporate finance and
governance; network economics; network strategy and planning; customers and
marketing; product management; network and service operations; and people and
organization development.
3. Business Description
3.1 Company History.
Dam Telecom serves the global telecom industry, with special focus on
executives within operators, service providers and the enterprise users of
telecom products and services. In total our community comprises more than
5,00 global telecom professionals who use our products and service every day.
What we do?
To make matters more difficult, their business customers have high expectations and
do not feel that telecom companies are meeting their needs. Their sense of
Disappointment is leading to high levels of customer turnover.
Why choose us?
We believe our passionate customer service and nationwide coverage means we have
every box ticked. We pride ourselves on keeping things simple from start to finish and
think that the fact that many of our customers have been with us from the start speaks
volumes.
3.2 Vision Statement.
DAM TELECOM is seeking to be the unique choice for all clients by applying
worldwide standards and achieving win-win relation to all stakeholders.
Dam is dedicated to provide extensive and reliable service everywhere in Egypt
and the world at the same quality and satisfying criteria of every customer.
One of Dam priorities its human resources as its most valuable asset to keep
reliable and lucrative.
Dam believes that its differential work is model for its clients and competitors.
3.3 Mission statement.
DAM TELECOM EGYPT is to be a company that understands customer needs and
expectations, thereby offering them the best solutions and value
recommendations from the most appropriate channel.
To be a Leading Regional Company that provides a wide array of professional
services in the field of telecommunications.
A company that is valued by its customers, shareholders, employees, and the
community in which it exists.
3.4 Our Value.
• Integrity
• Honesty
• Learning
• Customer Experience
• Fairness
• Trustworthiness
3.5 Business Goals.
The business initially starts off with one owner and CHRO also COO. The short
term goal is to achieve a positive income within the first year of operation.
The business aims expand to new projects employing more manpower as well as
increasing capital for further growth.
With unpredictable weather patterns at any time of the year and uncertainties
facing your business regardless of location, an effective disaster recovery plan is
essential. During downtimes, you’ll want to ensure that your customers are still
able to reach your organization when power outages occur and servers go down.
3.6 Our Strategy
✔ To be the most innovative product or service.
✔ Grow sales with different customer.
✔ Improve our quality continuously.
✔ Cornering a young market.
✔ Service differentiation.
✔ Improve customer retention.
✔ Sustainability.
3.7 Product and Service
DAM TELECOM EGYPT is provide service for GSM Sites with Vodafone Company
includes site acquisition, Construction work.
We established a new business for Fiber Optical project in the new
administrative capital and Kingdom of Saudi Arabia.
We going to install customer product for Nokia, Ericson and Huawei as a service.
3.8 Customer segment
With competition intensifying and growing customers' churn rate, the company
was seeking to enhance its' customers retention and improve client loyalty.
Fully define factors that influence customer satisfaction which customers
perceive as valuable & relevant Identify coherent, distinct and approachable
segments. Define precise parameters which characterize customers who belong
to each relevant segment.
We have two type of customer, Operators are includes (Nokia, Ericson, Huawei,
WE telecom and Vendors are Vodafone, Orange, Etisalat, TeData.
4. Industry and Market Analysis
4.1 PESTLE Analysis
4.1.1 Political
Due to the stability of the political system in Egypt favorable conditions
for business operation and growth are adequately available.
4.1.2 Economic
Egypt will construct the largest fiber optic cable plant in the Middle East
and North Africa (MENA) with investments worth over EGP 1 billion
($63.2 million), the Suez Canal Economic Zone. The 50,000 square meter
plant in the Red Sea's Gulf of Suez city of Ain Sokhna is planned to start
operation in the third quarter of 2021. The project is part of an initial deal
signed between the government-owned Arab Organization for
Industrialization (AOI) and IT service provider Benya Capital. “The annual
production capacity of the project is four million km of cables, while
investments in the project amount to more than EGP 1 billion," the
government's efforts to boost the industrial sector, promote local
technology and reduce imports.
4.1.3 Social
Telecommunications horizontal growth is limited. Specifically, it’s difficult
(and expensive) to expand in rural regions. Customers are left with less than
a handful of options when it comes to buying internet, mobile, and television
packages. Because telecommunication corporations are monopolies, they’re
in charge of both internet and mobile carriers. Customers need these
packages to communicate with friends, partake in social media challenges,
buy products online, and find stable careers and more.
Telecommunication has become a vastly important aspect of the daily life of
the average person.
4.1.4 Technology
Both needs and requirements for telecom services are advancing. For
example, telephone companies install fiber wire in their builds over copper
now. Phones are becoming more compact, moving the telecom business into
a primarily wireless business.
Basic needs in smartphones, like voicemail, caller ID, and messaging are
covered. Now people want internet access on the go. So, data is added to
mobile plans. Wifi has been built into buses and cars too.
This ‘need’ leads to more investments in companies who hold a strong
influence over telecom developments in computers, smartphones, and
laptops
4.2 Porter’s 5 Forces
4.2.1 Suppliers
Suppliers can be plentiful, at the same time, customer is
support for his product. Given the two reasons, there will
be price competition among the competitors, therefore,
prices of Equipment will be reduced according to quantity
and business size.
4.2.2 Customers and Threat of Substitutes
Customers, especially subcontractor are very familiar with
the notion of telecommunication business In addition to
that, a limited number businesses provide similar
products and services to telecommunication equipment
4.2.3 Threat of new entrants
Due to the low startup costs of this industry, new comers
face little to no obstacles in establishing a new project for
provide service. Because they are not find talent people
and saw failure in management. Therefore, entering the
market is easy, but staying in the business (Adding values
to the products) is the difficult part.
4.2.4 Intensity of Rivalry
Currently in Egypt, competitors providing similar services
are so many with different price and it is depend on quality
and money ( size of investment) also qualification of resources.
4.3 BCG Model
According to Lingard (2009), BCG model is an effective tool to analyze the
profitability of specific types of service. In this case, telecommunication
providing service and managing service is the cash cow of the business since
it is still a big hit to the market, meaning it can be provide service in large
quantity and profit margin of this specific type of service is high since cost of
service sold is 1000000 by project in year and it can be provide for 5,000000
and it is depend on size of investment. As Lingard stated, the cash cow
should be “milked” as long as possible to maximize return. Or provide
different or new service.
4.4 Competitor Analysis
Competitors
Brand Names APCONTRA SKY FSO CETIX
Main Product Civil Works Fiber optical Telecom works Maintenance
Target market 5:7 Million 5:10 Million 5:15 Million 5:20 Million
Strengths Suppliers HSE & Quality control Speed service They are operator
weakness High turn over Centralization decision Low resource qualification High safety regulation
4.5 SWOT Analysis
Strength Weakness
● Recruitment team ● Collection process
● Customer relation ● Safety cost
● Value ● Double visit for site
● Compensation and benefits ● Safety training cost
Opportunities Threats
● Work as a supplier ● Ending contract for project
● Controlling cost ● Company blacklist
● Hire people with different qualification ● Competitor
● Work by subcontractor ● Burning prices
5. Marketing
5.1 Research Methodology
An optical fiber is a transparent and flexible fiber made by drawing glass or
plastic, which is used to transmit light. The optical fiber has wide usages in
fiber-optic communications, where they allow transmission over longer
distances and at higher bandwidths than wire cables. The adoption of fiber
optic cables to send signals with less amount of loss has increased over the
period, which drives the growth of the market. The global optical fiber
market was valued at $3,477 million in 2017, and is projected to reach
$8,153 million by 2025, growing at a CAGR of 11.6% from 2018 to 2025.
5.1 4PS Analysis
5.1.1 Service and target market
Target market:
● Target customer: WE TEECOM – Vodafone – Orange – Etisalat
–Nokia – Ericson – Huawei
● Target income: 10 Million and above
● Target area: Egypt- Dubai – Saudi Arabia – Malawi – Zambia – Ghenia
5.1.2 Service details
Service Types Feature Details
▪ Site Acquisition 10 Site per month A. Site Search and Negotiation
B. RF Survey and Preliminary Site Design (Cad
Drawings)
C. Line Of Sight Verification, Final Cad Drawings
And Structural Analysis Report.
D. Lease Contract Negotiation and Signature.
E. Permits
▪ Construction Works 6 Sites per Month A. Greenfield Sites.
B. Rooftop Sites.
C. . Special project. "Modernization – 2 end
carrier – MBR – trial antennas – Cosites –
G sites – TX activities and RX activities“
▪ GSM Sites 15 Sites per Month ▪ 1. Civil Works
▪ 2. Tower Erection
▪ 3. Shelter and RF (Feeder and Antenna
Installation) Installation
▪ 4. Rooftop Sites
▪ 5. Shelter
▪ 6. Stub Tower
▪ Fiber Optical sites 500 Meter By week ▪ 1- Searching for sites by GPS for
Vodafone & Mobinil & Etisalat
“negotiation – owner documents –
Consultant – Permits.
▪ 2- Constructed Towers and Stub towers "
Construct Civil work and
tower erection "9m , 12m , 15m , 18m , 21m , 24m
, 40m , 45m ,
55m, 60m”.
3- Construct Shelters " TE ,HOI , ICC " ,and supply
and install
Grillage and install A/C and power and earth
systems.
Augmented:
● Speed Delivery service – Supplying diagnosing Problems.
5.1.3 Pricing
A-Price details:
Product Price
Site Acquisition 17000 : 20000 per Site
Construction Works 100000: 1000000 Per Site
GSM Sites 10000 : 40000 Per Site
Fiber Optical project 300 Per Meter
b. Pricing strategies:
Dam Telecom operators have a huge number of targets for 2020, most of which focus on
improving financial performance, increasing penetration of services/converged offers and
stimulating usage. Well-established marketing and brand strategies are designed to
support these goals. But what about pricing? Do they outperform their competitors by
having a dedicated pricing strategy? Are they unique? Do they go beyond copying the
competition? A pricing strategy provides clear guidelines for pricing measures and as
pricing decisions usually receive considerable market attention – especially from
customers and competitors – they are crucial for achieving targets. So establishing the
link between operational pricing decisions and corporate goals is crucial for accomplishing
and even exceeding corporate goals.
5.1.4 Placing
Physical sites: we will locate our site on overall Egypt. Hence, the
customers can follow up and audit our sites that are suitable for them.
5.1.5 Promotion
● Firstly, we will create a fan page on Facebook and pay money for
Facebook ads to raise number of customer who visit fan page.
● Furthermore, to attract visitors to our website and fan page, we
also design a banner that attach link to our website that can
appear anywhere on Internet users’ screen.
● Promotion strategies: Contests and employee of the month. In
terms of contest, we will arrange the competition of employees
and reward to best of Employee.
5.3 Evaluation of Marketing
The effectiveness of the Marketing Strategies will be evaluated for every six months to
ensure that the business obtain the highest productivity by analyzing sales information
and feedbacks from the customers. In addition, the most effective strategy will be kept
and continue to expand. On the other hand, with the strategies that are not suitable for
current situation or ineffective will be replaced.
6. Operation
6.1 Legal and Licensing requirements
6.1.1 Business name and Legal Structure
The company name DAM Telecom Egypt, A dam is a barrier that
stops or restricts the competitors to achieve your goals. The
business will be established in individual form, which include one
partner: Mr. Adham Elnweiry. All top management will sign an
agreement contract, which accept to share the profits, loss as well
as the responsibilities for the business. The profit or loss must be
shared base on the capital.
6.1.2 Legal issues
Claims of discrimination can result if you refuse an employee’s
request to work from home. So ensure your policy documentation
gives objective criteria for allowing telecommuting. Along with job
responsibilities, these could include job performance, disciplinary
history and company seniority.
6.2 Business Premises
6.2.1 Location
The business will operate mainly on the HQ and handle issues in sites
6.2.2 Internal Layout
The physical service acts as a place where customers can come and
physically see and touch the service by region sites, which can help
ensuring the quality and uniqueness of the sites implementations
6.2.3 Basic Equipment Required
Item Quantity Cost per each Life Expectancy
Two Body Harness [EN: 358, 361 and 813]. 1 4000 3 Years
Two Double Lanyards. 1 2000 4 Years
Two Double Lanyards. 1 3000 5 Years
One Rescue Kit. 1 600 3 Years
Three Full Arrestor Rope. 1 800 3 Years
One Full Arrestor Wire [Protecta brand only) 1 6000 4 Years
200 M Rope. 1 14000 5 Years
One Fire Extinguisher [3KG]. 1 3000 3 Years
Total Cost of Equipment 35000
6.3 Process
6.3.1 General Process
Customer Requirements
Site operation
Operation HR Department Warehousing
Management
6.4 Critical Risks and Contingency Plan
Description of Risk Probability of event Impact of event Risk Level Contingency plan
STC ACQUSITION Vodafone 1 4 Extreme Reduce company margin
Company blacklist 0 3 High Register with other
operator or Vendor
Fire 2 2 Extreme Buy Insurance
6.4 Organization Structure
6.5 Gantt chart for our Business
7- Financial Projections
7.1 Basic assumptions and information
Calculation of Income and Expense:
The assumption of incomes and expenses is used for the purpose of calculating the
annual data from July 2019 to June 2020.
Moreover, we assume that within each month, our company is able to receive all the
accounts receivable when the services were rendered to be easier for calculating the
revenue on a monthly basis. That can avoid the delayed revenue. In addition, to
ensure the profit for next year, we also determine the target market and customer
behavior in terms of pricing and costs for the subsequent years’ strategy.
Plants and Equipment items’ depreciation will be calculated based on straight--line
method at 10% annually in July 2020. It is also assumed that costs of good sold are
approximately set at a half of selling price.
Financing of the business:
The initial capital contribution to the venture will be 2000000 with be provided by
the one owner Mr. Adham Elnweiry. The business information is available above to
raise awareness from the customers and raise revenue to reduce the issue of short-
term debt financing.
We do not have any big debt from bank because we are a small business. In this case
of shortage of cash, bank overdraft will be the short-term solution. About cash flow
difficulty in the long term, the owner can investigate carefully whether or not to
reduce the directors’ wages first and then the employees’.
Distribution of profit:
All profit for the first year of operating will be retained to maintain the business.
From the following years, two third of profit will be distributed to one shareholder
and the rest will be retained earnings to up to date new projects. In the future, when
the business makes more profit and the demand increase marginally, we will
determine to open a new project in other country like Saudi and Dubai.
Goods and service tax (GST) and loan
There is no GST figures in all forecasts. Currently, our business does not require any
bank loan and other short-term debt.
Analysis of financial forecasts:
Net profit margin= (Net profit before tax/Sale Revenue)*100%= ($5, 00000/$1, 000000.)*100%= 50.0%
This result shows that in the first year of operation, the business’s performance is positive. For
Break-even point:
It is assumed that in the first year, cost of service sold is the variable cost only. In this case:
The fixed cost is Contribution margin=(Sale-Variable Expenses)/Sale =($53,183-
$8,930 $32,304)/$53,183= 0.392587857
Break-even point= Fixed costs/Contribution margin= $8,930/0.392587857=$22,746.5
Sale Mix Forecast for the period July 2019 to June 2020
Cash Flow Forecast
DAM TELECOM EGYPT
Cash Flow Forecast for the period August 2019 to July 2020
Projected profit and loss statement
DAM TELECOM EGYPT
Cash Flow for the period August 2019 to July 2020
DAM TELECOM EGYPT
Cash Flow for the period August 2019 to July 2020
Statement of financial position
8- Implementation Plan:
9- Appendix
Sample of our works
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