Introduction

Blue Sky Satellite Communications CC, also known as Blue Sky, is a South African satellite service provider and communications solution provider. The company offers custom-made airtime packages, along with satellite phones and terminals.

Blue Sky Satellite Communications’ goals are to increase sales by more than $20,000,000 in three years and to improve the gross margin of sales to 30%. They will also implement broadband technology to increase inventory turnover to eight turn per year.

This business plan is the key to success. It renews the strategic focus and vision that we have for adding value and innovation to our target market segments. This includes high-end home users and corporate business in our horizontal markets. It also contains a step by step plan to increase our sales, gross profit, and profitability.

The Company

After purchasing a satellite phone through COMSAT, Pedro M G Camacho founded ‘#8220’ Hyper Parts Com Division in 1996. He was so impressed by the capabilities and potential of the satellite phone that he decided he would start his own satellite communications business. Blue Sky Satellite Communications became the company’s name in 1998. The company has enjoyed two years of good legal trade and is poised for great growth. As Pedro saw Inmarsat as a niche market and reacted well to it, the same outlook has been given to VSAT, as it is the next logical step in the development of the satellite communications industry.

Blue Sky Satellite Communications has been built on the assumption, that the management and development of broadband service will be the most important steps of communication since the invention if the telephone. We have been positioned at the forefront of Africa’s most disconnected continent, Africa, as a service provider for Inmarsat/VSAT services. Our goal in Africa is to make as many links possible in the fastest time. This can be done by partnering with local telecommunications companies, whether they are private or public.

In order to implement our goals we will focus on the following keys to success; increase Inmarsat airtime usage, develop the VSAT market, increase marketing in Africa, outsource quality services, introduce better value-added services to end user, and maintain and increase customer services.

Blue Sky Satellite Communications is located in Bedfordview,South Africa. It is situated just 15 minutes from Johanessburg International Airport.

The firm presently consists of 4 employees under 1 director. The company hopes to increase its workforce by at least twenty people in the near future. The company will add sales staff, technical support and customer support. Marketing and promotions can be outsourced.

Our product comes from different Land Earth Stations. In most cases, our relationship is direct with the manufacturer.

The Market

Our products are highly sought after due to the increased use of the internet for communicating information. We anticipate that broadband will see exponential growth. This means more corporations and individuals will invest in faster communication systems to improve their productivity and boost their bottom line.

Satellite services are expected to grow by 20% annually in the Middle east and African markets. The market for satellite services is valued at approximately $12 billion in year 1. Blue Sky hopes to tap into this market and will be able capture a 10%-20% market share.

One of the most prominent aspects of new business today in the Telecom industry is the projected market growth. We see that the growth projections for the future are far more realistic than any previous projections. This is due to the advent of broadband services and privatization of many Telecom companies that were run by the government.

We offer two types hardware, so we can provide systems that help customers become more productive. Inmarsat products, such as the Mini-M Sat Phone and the M4 Global Area Network terminal, are poised to maintain a growth pattern over the next 24 months. It will also have an impact on the Iridium product’s relaunch.

We are well placed to capitalize on this market. VSAT market just came to light last year. The sentiment is that it will grow further in Years 1 and 2.

Blue Sky has many local competitors. They give us the ability to continue improving customer relations. We learn from their mistakes, and have kept a good relationship with them.These companies are : African Satellite Corporation, Pertec International, Grintek Telecom, and Station Africa. Blue Sky has been focusing on future trends to compete with these companies and position itself as the dominant company in this sector. These are some of the most important trends:

All customers need to be given maximum attention by strong customer support in order to keep their recurring monthly income high. Many customers will benefit from fast service through the customer care center and Internet interactive chat.

The most obvious and important trend in the market is declining prices. While this has been true for many years, the trend seems to have accelerated. We are seeing major suppliers and manufacturers putting together systems with incredible specs.

Another trend is an ever-growing connectivity. Everybody wants to be connected to the Internet. Even small offices want a network. Many small offices want to connect their LANs to the Internet. Blue Sky will need to be able to offer custom service packages at a reasonable price with all the features you want.

The company is focusing on the small and large businesses that need a wide variety of services packages that have lower costs per airtime than other competitors.

Strategy and Implementation

1. We are committed to providing support and service. Blue Sky will not simply sell the service. We will provide the client with all the important information concerning the service or product which has been provided.
2. We want to develop a long-term relationship. This is why we need to have as many clients as possible. This means that we have to have constant contact with our clients. This is achieved by sending out newsletters and emails so that they are kept up-to-date with all that is happening in the marketplace.
3. Target markets. Blue Sky will be successful if it has a goal and a focus on one market segment. We have been in business for many years and are familiar with the changing requirements. Because we have a lean management system, we can quickly and efficiently make decisions about new markets. This allows you to keep your eyes on the market segment, as its’#8217; requirements change.
4. Deliver on the promise. We aim to be Africa’s most trusted provider of satellite services. We want to offer rural telephony services and pre-paid telecommunications, as well be involved with education of our users. We want to keep our promises and provide extra support for those who are most in need.

Financial Plans

With a gross margin at 31.7%, the company anticipates earning $62.2 million in year three. With SG&A costs controlled, the net margin will be very strong. Over the next three years, the company will be investing $6.2 million in further long-term assets in order to achieve a regional presence in Africa.

1.1 Mission

Blue Sky Satellite Communications was founded on the belief that management of satellite technology will be the most important step towards communication since the invention the telephone. As a service provider for Inmarsat and VSAT services, we have placed our selves at the forefront of the most unconnected continent in the world, Africa. Our goal in Africa is to make as many links possible in as little time. This can be done by partnering with local telecommunications companies, whether they are private or public. By doing so, we can offer high quality communication at all times to our customers.

Blue Sky Satellite Communications is bringing satellite communication down to earth.

Success: 1.2 Keys

1. Inmarsat should be used more often
2. Develop the VSAT Market.
3. Africa Marketing:
4. You can outsource high quality services.

1.3 Objectives

1. By the third-year, sales increased to more than $20,000,000
2. Keep the gross margin at 30% or higher and keep it there.
3. Get $4,000,000 in service, support, & training before Year 2.
4. Improve inventory turnover to six, seven and eight turns in Year 2 respectively.