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milestone_one_secure_mobile.docx
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Running head: SECURE MOBILE
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Milestone one- Context, Need, and Price
Secure Mobile
Lunia
MBA
Prof.
Feb. 26, 2019
SECURE MOBILE
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Milestone one- Secure Mobile
Executive Summary
Secure Mobile will be a mobile device with the additional capability to detect lethal
weapons within a range of 200 meters. Like a clock alarm, the mobile device will provide alerts
on detection of lethal weapons such as guns and grenades within the stated range. The additional
security feature seeks to enhance personal and public security to the devise users by making
them fully aware of the security status within their environment.
Insecurity has become very prevalent in the modern world owing to the rapid growth and
development of terrorism and crime. Cases of gun violence, homicides, and terrorism, especially
in public gatherings, have become common to the modern way of life. In the united state alone,
right-wing extremism is said to have increased its death contribution from 37 to 50 murder cases
in the years 2017 to 2018 respectively (Anti-Defamation League, 2019). On the other hand,
deaths and injuries resulting from gun violence again in the United States have significantly
increased from 8,855 in 2013 to 73,505 in 2017 (National Research Council, 2013). Global
statistics on terrorism index have maintained an average range of 14,371-8,584 attacks across
years 2006 to 2017 (Statista, 2019). The fatalities within this range are incredible and only leave
global security at ‘desperation’ and with eagerness for a time when technology will effectively
redress the problem of global security.
Although governments are doing a lot to heighten the level of global security, there are
still some deficits in efficiency and effectiveness. As such, instilling a sense of self-responsibility
to individuals as far as security is concerned will help a great deal. As aforementioned, Secure
Mobile will largely solve this problem by thwarting many criminal operations involving lethal
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weapons both minor and major. The feature will enhance awareness of the environments that
users are living in and to a great extent enhance communication of threatening security
conditions in time; this will prevent and minimize escalations such as hostages in places like
shopping areas. Moreover, with the profound awareness that the new mobile feature brings, the
larger population especially criminals will also be cautioned of mishandling of lethal weapons.
In essence, a Secure Mobile will use the additional security feature to differentiate itself
from other products in the market. Most of the mobile phones currently available in the market
possess almost similar capabilities with less differentiation and largely serving the personal
needs of their users. The unique benefit that Secure Mobile brings in is that which extends to
social security responsibility where it is not only the government which is charged with the
security responsibility but also the public to a great degree will contribute to this role.
In a brief overview of Secure Mobile, the mobile device will be installed with lethal
weapons detection technology with 100 percent detection efficiency. On detection of any lethal
weapon, the mobile device will automatically produce an alarm depending on the users’ choice
of alert tone. Besides, the technology will have the capability to analyze the lethal weapons in
such a manner that it will be able to provide details of the type and model of the weapon. For
instance, between guns and grenades, the device will be able to differentiate between the two in
addition to providing specifications such as AK-47 or pistol which are various categories of
guns. It should also be noted that as long as it is within the range of detection, the technology in
the mobile device will also have the capability to track the movement of the weapon by
communicating the specific GPS locations and time. In case of the need to disseminate the
information to the security agencies, the analysis information of the weapon can easily be
disseminated inform of a short message service.
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Secure Mobile will sell at a very competitive price comparing to the average market rate
for common mobile devices. The device targets the mass market as it is through increased
availability that the device can achieve its core objective of creating secure communities in the
most affordable manner.
Branding and Idea Context
Secure Mobile will be the first product in the Secure Mobile Co.’s product line. The
device will be of high resonation with the brand that the company wants to position in the global
market. The positioning of the brand is focused on surpassing the target market expectations by
providing a key social solution to one of the prevailing social challenges which will provide
consumers with the reason to buy. Security is a key social challenge that threatens the wellness
of almost every member of the society; Secure Mobile seeks to be part of the solution to this
challenge. As such, the uniqueness of the product calls for superior penetration marketing
strategies encompassing 360 degrees marketing platform. One of these strategies will employ
advertising through mainstream media and digital media. Product promotion through mainstream
media will entail advertising through global broadcasting networks such as Super Sports which is
one the most globally adored sports channel. In connection to this, Secure Mobile Co. will be
seeking to sponsor one of the major soccer teams to warrant the company an opportunity for
massive advertising on the major sporting events which attract viewers across the globe. In terms
of digital advertising, the company will focus on social media advertising mainly through
Facebook and Twitter. On the other hand, sales promotion and publicities will only be carried
out through major global events such as the global security summits and global corporate and
entrepreneurial conferences as such platforms will give the company an opportunity for
endorsement of Secure Mobile devices. It is important to note that Secure Mobile devices will
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be distributed through the establishment of multiple dealer stores across various continental
regions to ensure proximity to the global market as well as easy accessibility.
Defining feature of the product
Secure mobile is a mobile technology that combines hardware and software features to
produce radio waves with the capability to detect metals of any kind and also with an extra
capability to detect guns and grenades. On detection, the device can profile and classify the
specifications of particular weapons detected through an android application dubbed ‘profiler.’
With regard to the hardware, radio detectors have been integrated into to the mobile device
through alteration of an ordinary Smartphone’s motherboard. Detection is achieved through radio
scanning which aides in profiling the weapons’ information and displaying it in the profiler. Any
detection of weapon is transmitted as an emergency alert based on the users choice of profiles.
Political
Governments are some of the key stakeholders in fighting insecurity given their efforts in
the integration of strategies through such things as joint operations and collaboration in the fight
against terrorism in addition to the development of policies to regulate gun violence. This being
the case, a technological approach that adds the effectiveness of this fight is a great asset in
achieving their security strategic goals.
Economic
In the third quarter of the years 2017 and 2018, the Smartphone vendors shipped 377.6
and 355.6 million units across the global market (IDC.COM, 2019). Although there was a slight
decline in the third quarter of 2018 as compared to a similar period in the previous year, the
market share indicates profound market viability for smartphones especially those that possess
outstanding features.
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Society and technology
Secure Mobile’s mission is to work with communities to achieve the highest security
levels while its vision is to create a secure global community through mobile technology. The
company is founded on two core values which entail security and excellence. The unique
security feature works in line with these fundamentals of company culture. First, the devices
competitive pricing that is expected to appeal to the mass market is one of the key strategies to
achieve the universality of the product where most people in the society can affordably access
the product. Through this, both our vision and mission will be achieved. The efficiency aspect of
Secure Mobile is to ensure zero chances of faultiness such as the production of unwarranted
alerts which might cause unnecessary panic. Excellence is all about developing an excellent
technology that executes its function efficiently without falling short of any expectations.
Five forces model
Competitive rivalry
Currently, there are many players competing in the global Smartphone industry largely in
price wars and outstanding features. Secure Mobiles’ competitive price and uniqueness are
expected to drive the product in the competitive market.
Threat of Substitution
Currently, there are no substitutes with comparing capabilities to those of Secure Mobile.
Entry barriers
There seem to be fewer barriers to entry in the Smartphone industry due to the many
counterfeits flooding most the global markets. Secure Mobile will use clear defining features to
prevent counterfeiting.
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Bargaining power of suppliers
Secure intends to enhance its bargaining power in one of the most competitive industries
by aligning its capability with social solutions to position it as a social necessity.
Bargaining power of customers
Customers have low bargaining power in the industry which poses less challenge to
Secure Mobile.
Brand effectiveness
Most of the competitors in the smartphone industry differentiate their products by price
and addition of more sophisticated features to their products such as devices which can support
4G internet, quality of the camera and processing speeds. Secure Mobile will bank its
competitive advantages on meeting all the quality standards and on top adding a security feature
which has no existing substitute in the market. Competitive pricing will be another competing
edge for the company.
With regard to branding, Secure Mobile co. will seek to heighten its recognition through
the application of easily recognizable symbols such as capital ‘S’ engraved in a circle depicting
of the key company values (security) as well as the name of the product and the company.
Application of simple branding concept will allow for easy positioning of the brand in the minds
of the consumers.
Defining product service or Need
Segmentation
Secure Mobile target three market segments; the middle class consumers which entail
demographic segmentation, tech-savvy consumers which entail behavioral segmentation, and
benefit consumers who want to reap the security benefit of the device.
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Other than being the most tech-savvy consumers middle class and high-end consumers
are the most concerned about social wellness such as leading their lives in peaceful environments
that guarantee security. According to Brookings, over 50 percent of the global population live in
households with enough discretionary expenditure which is considered a middle class or rich;
this population is approximately 3.8 billion people (Hamel, 2019). The middle class and the rich
have great purchasing parity and largely value quality and sophisticated products. In many cases,
they are also willing to pay some extra price for more benefits. Given the characteristics of this
target market, Secure Mobile devices exactly fit their needs in the dimensions of the uniqueness
of the product, quality of the devices, as well as affordability of the devices. With regard to the
behavioral characteristics of the Secure Mobile target market, the uniqueness of the product in
solving a critical problem in the society provides an extra benefit that is not commonly available
in the existing products and most importantly it is expected to provide an enormous brand
association with users’ state of security.
Targeting
Secure Mobile will meet specific needs of the market by providing more awareness of the
security status around users which will then enable them to be cautioned on the threats they
could be facing and hence able to take the necessary safety procedures before escalation. In other
words, the users will be able to track their security and make themselves safer.
Positioning
The middle class and the rich make the best strategic choice for Secure Mobile co. due to
their wide population across the globe, their interest in sophisticated products and most
significantly their purchasing power. To ensure success in the market, it is appropriate for the
business to consider the interests of the target market and their affordability. By understanding
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the interests of the market, the business can understand the needs of the consumers and respond
by providing products that meet these needs. However, even if the products could be meeting the
needs of the market without affordability the business is more likely threatened by lack of
sustainability in the long run; this is the major reason as to why Secure Mobile Co. banks its
future in the middle class and the rich consumers. The target market also makes up a significant
portion of the society and therefore to a great extent the entire society (both the rich and the
poor) will be secured as a result of co-existence.
Pricing
Secure Mobile devices will retail at an average range of 300-700USD per unit. The range
is significantly comparable to the average market range of 100-1000USD per unit for the existing
competitors’ mobile devices. Secure Mobile price is more of competitive pricing as it targets the
mass market. Most middle class and high-end consumers can be able to pay the price and are
willing to pay for the extra security benefit.
The total unit production cost is estimated to be within a range of 20-40USD exclusive of
taxes which apply to respective regional markets. Out of the total unit cost of production,
15USD makes up the fixed cost while the rest are variable costs.
Penetration pricing strategy
Secure Mobile co. will apply penetration pricing strategies by setting the most affordable
prices for the products to appeal to the mass market (John and Orville, 2006). Over time, the
company will consider improving the prices to reflect the product premium position in the
market.
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(Secure mobile current price plan)
Income statement 2019 Projection
Revenue
COGS
Gross margin
Portioning expenses
Income before taxes
Taxes income (0.4%)
Net Income
2019
(000,000) USD
300
110
190
20
170
68
102
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References
Anti-Defamation League. (2019). Murder and Extremism in the United States in 2018. Retrieved
from https://www.adl.org/murder-and-extremism-2018
Hamel, H. (2019). A global tipping point: Half the world is now middle class or wealthier.
Retrieved from https://www.brookings.edu/blog/future-development/2018/09/27/aglobal-tipping-point-half-the-world-is-now-middle-class-or-wealthier/
IDC.COM. (2019). IDC – Smartphone Market Share – Vendor. Retrieved from
https://www.idc.com/promo/smartphone-market-share/vendor
John W. Mullins and Orville C. Walker Jr.(2006). Marketing Management: A Strategic Decision
Making Approach. Sixth Edition. New York, NY: The McGraw-Hill Companies Inc.
National Research Council. (2013). Priorities for research to reduce the threat of firearm-related
violence. National Academies Press.
Statista, N. (2019). Terrorism: number of attacks worldwide 2006-2017 | Statistic. Retrieved
from https://www.statista.com/statistics/202864/number-of-terrorist-attacks-worldwide/
…
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