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ENTR8000- Innovation and Entrepreneurship

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Assignment 4 -ICU hospital beds

ENTR-8000 Innovation and Entrepreneurship

Professor – Tony Beijjain

MOHIL DHULIYA - 8701843 SHUBHAM SOMANI - 8690020 SUBODH MANTHA - 8690776 ROHIT KATOCH - 8692824 SRAVANKUMAR KALLURU – 8696619

August 8, 2020.

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Table of Contents Lean Canvas......................................................................................................................... 4 Business Concept Statement.............................................................................................. 5 Innovation Analysis.............................................................................................................. 5 Marketing Strategy............................................................................................................... 6 Target audience............................................................................................................................... 7 Description product.........................................................................................................................7 Pricing...............................................................................................................................................7 Promotion.........................................................................................................................................7 Distribution.......................................................................................................................................7 Marketing costs...............................................................................................................................7 Marketing Assessment........................................................................................................7 Industry Description and Analysis.................................................................................................7 PESTEL ANALYSIS................................................................................................................................8 Political factors..............................................................................................................................8 Economic factors............................................................................................................................8 Social factors.................................................................................................................................. 8 Technological factors.....................................................................................................................8 Environmental factors....................................................................................................................8 Legal factors...................................................................................................................................8 Ethical factors................................................................................................................................8 Market description and analysis....................................................................................................9 Competitive description and analysis................................................................................................9 .

SWOT analysis..........................................................................................................................9

Zoom tools.......................................................................................................................... 10 Customer zoom tools...................................................................................................................10 Problem zooming..........................................................................................................................10 Minimal Viable Product................................................................................................................10 Unique value proposition.................................................................................................. 11 Channels........................................................................................................................................11 Possible questions asked during zooming................................................................................11 Financial strategy............................................................................................................... 12 1.

Beginning with a written plan...............................................................................................12

Visualizing the company funds goals.........................................................................................12 Short term goals to be considered first......................................................................................12 2

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They are building money goals into the company's budget............................................12

Putting goals on autopilot............................................................................................................12 Financial forecast............................................................................................................... 13 References.......................................................................................................................... 15 Appendix............................................................................................................................. 17

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Lean Canvas PROBLEM . Few hospital ICU beds . Increase in cases of COVID 19 patients in ICU . Increase in chronic disease patients in ICU . Expensive ICU beds in the market. . Old and absolute ICU beds

SOLUTION . Making many ICU beds . Selling affordable ICU beds . making modern and electric ICU beds KEY METRICS . reported a high number of patients in the ICU . lack of enough ICU beds in the hospital

COST STRUCTURE . Utility expenses . Rent . Employees' salaries . Advertisement costs . Distribution expenses

UNIQUE VALUE PROPOSITION . Making standard ICU beds . Making ultramodern ICU beds . making affordable ICU beds High-level concepts . electric bed = manual bed

UNFAIR ADVANTAGES . My college has a reach in Grand river Hospital which is located in Waterloo, as a reputed hospital, spreading more awareness about the beds. CHANNELS . Facebook, Instagram, and another social media platform . ALIBABA and AMAZON. . warehouse

CUSTOMER SEGMENTS . Public and private hospitals are the main customers . ICU patients will use beds

Early adopters . Public hospitals that require extra beds . private hospitals with more ICU patients

REVENUE STREAMS . Through warehouse selling . E-marketing e.g., ALIBABA . selling waste products such as sawdust

Both public and private hospitals are running out of the Intensive Care Unit (ICU) beds. This is as a result of a high number of COVID-19 patients. Patients with chronic diseases such as diabetes, high blood pressure, and HIV/AIDS have already occupied most of the presence of ICU beds in most hospitals. Most of the ICU beds are old and obsolete hence making it hard for doctors to attend to their patients. Doctors can still use the remaining ICU beds, and still, they can use isolation beds to hold the COVID-19 patients. Both the private and public hospitals can procure the old-fashioned ICU beds to curb the problem. We provide ultra-modern ICU beds equipped with the new technology for diagnosing and treating COVID-19 patients— manufacturing ICU beds in large numbers to cater to the high demand exhibited. Both the public and private hospitals across different countries require these beds due to the global pandemic caused by a coronavirus.

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Business Concept Statement Due to the outbreak of coronavirus (COVID19) globally, patients have flooded to hospitals for special treatment. Most of them are admitted to the ICU making ICU beds few. Making ICU beds for both private and public hospitals, therefore, provides a good business idea since there is a ready market. One ICU bed will cost approximately 400 dollars to make and sold at around 600 dollars. Over the last couple of years, technology has taken most of the day to day activities. Having realized that most of the current ICU beds are obsolete and lack modernization, it would be essential to venture into the business. There are also efficient ways of acquiring capital through loans. When it comes to selling the product, technology has also been able to achieve this. Advertisement can be done through social media platforms and online selling companies such as ALIBABA and AMAZON.

Innovation Analysis Our surveillance team will, therefore, track the usage of our locally made ICU beds in hospitals across different countries. They make ICU beds in large numbers to meet the high demand in both public and private hospitals. COVID-19 new cases are reported daily, and the curve is rising exponentially. There is no current cure or vaccine reported for this pandemic. The pandemic is all over the world hence a ready market. It was making locally ultra-modern ICU beds that are cheap and effective. Developing adverts through media houses and still creating awareness of our product through social media platforms. Using our marketing team by visiting different hospitals across the country. COVID-19 patients will be the highest beneficiaries. Patients with underlying conditions such as cancer, can also use these beds. Health facilities, both public and private that accommodate patients who require intensive care unit facilities. COVID-19 affect people from all ethnic background, race, and all ages. Every human being is prone to this pandemic. Making one ICU bed will cost approximately 400 dollars since it is locally made. The cost includes the materials used and labor. There is also the cost of advertisement and marketing of about 100 dollars. Supply costs are approximated to 10 dollars per ICU bed. If the company decides to rent a land or the company buildings, 2000-3000 dollars per month will be used. The company uses transaction-based revenue. The company relies on predictable sales of goods. In this case, when ICU beds are sold out, revenue is generated. However, the company requires to take action to make its products more attractive to customers. Asset sales are vital for this company.

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Marketing Strategy Once the ICU beds are ready, both the public and private hospitals will procure them. Governments will venture into buying the locally made ICU beds since most borders are closed. For countries where there are no border restrictions, the ICU beds can be exported to increase sales. Private hospitals also play a vital role, especially in developing countries where social amenities are a challenge that will provide a good market.

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Target audience They mainly targeted audience is both public and private hospitals.

Description product Both manual and electrical ICU beds which will be used by patients admitted in the ICU.

Pricing First, the company will employ cost-plus pricing whereby the cost of making ICU beds will be determined and hence add a mark-up. Competitive pricing will also be used. It implies setting the price of the ICU beds based on the competition charges.

Promotion A digital promotion strategy will be used. This will be achieved through; e-marketing, websites, blogs, articles, advertisements through television and radios, and social media use.

Distribution Direct distribution strategy will be useful since the company intends to send ICU beds directly to the final consumer. The company intends to use e-commerce mainly hence useful.

Marketing costs Approximately 50 dollars will be used in advertisements and 100 dollars to do emarketing. Brochures can as well be printed to facilitate marketing.

Marketing Assessment Industry Description and Analysis The company will be a manufacturing company since materials needed in making ICU beds will be gathered and used in making beds. ICU beds comprise warming blanket devices, bays, and bedheads made from component systems used to build exhibition stand, sources of oxygen and ventilator, and control of bed position. Making such a bed requires a team of employees, such as a welder, engineer, and metals alignment expert. With the availability of materials needed to make ICU beds, a team comprising one engineer and two welders can make approximately 2-3 beds. For the industry to make 100 beds, it needs about 25-30 engineers and approximately 100 welders. The industry requires one human resource manager, a managing director, three cleaners, three cooks, and a secretary. The industry can stand on a 1-acre piece of land. Making 100 beds daily equates to approximately 20000 dollars if the company is making 200 dollars per bed. That equates to 600000 dollars per month. The revenue is enough to pay the employees and maintain themselves. It is taking into consideration that this is an emerging industry.

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PESTEL ANALYSIS Political factors The industry is affected by the government policies, political stability or instability in overseas markets, foreign trade policy, tax policy, labor law, etc. responding to the current and anticipated future legislation is therefore crucial. The government can decide even to close the industry; therefore, adjusting marketing policy is essential. Economic factors For the industry to thrive well, economic factors play a vital role even in determining how profitable the industry is. The industry must consider some of the following economic factors; exchange rates, interest rates, inflation, disposable income of consumers, etc. economic factors include both macro-economic and micro-economic factors hence critical. Social factors Factors such as population growth, age distribution, health consciousness, career attitude, etc. cannot be ignored since our industry is based on people for it to do well. Social-cultural factors, especially health, are one of the considerations that the intended industry should consider. Technological factors The industry has technological landscape effects since it intends to do its marketing mostly through e-commerce. The company relies on these technological factors, e.g., ways of distributing goods (ICU beds). Environmental factors The government ministries have tried to put across several environmental policies to minimize pollution. The industry should be ready to adhere to those policies. The ICU beds should meet the standards for them to fit in the market. Legal factors The industry is not exempt from legal factors such as health and safety to its employees. Consumer rights and laws should be looked into. The ICU beds should meet advertising standards bed labeling and bed safety. All these factors will help the industry in meeting the legal standards put by the legal firms. Rules and set regulations when trading beyond the borders should be looked into. Ethical factors According to Hagedoorn, J. (1996), ethical principles are crucial when setting any industry in any country, and therefore, this industry is not an exception. The management should understand that moral and ethical problems can arise at any time in the business. The company should also take part in activist and charitable activities.

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Market description and analysis The main target customers are both the public and private hospitals for the ICU beds during this pandemic. The outbreak of the coronavirus came at a time where there were little preparations on bed capacity. There is a target number of ICU beds for each hospital to have. The demand is high since this pandemic is still increasing day by day. Hospitals are located both in urban and rural areas. Again, the disease has got no age limit, not class of individual people. The whole world is sick, from Asia, Europe, Africa, and the USA. Hospitals are receiving both males and females, young and old at an alarming rate; hence, the rising number increases in hospital admission. Every hospital is willing to buy many ICU beds to save the lives of innocent citizens. Once a few ICU beds are taken in the market, the company will understand any development needed on them just to add the value according to customer demand. Advertisement and other forms of marketing will be employed to reach the targeted hospitals

Competitive description and analysis The preexisting industry poses a significant threat to the upcoming industries and factories, mainly because they understand the consumers. According to Etzkowitz, H., & Zhou, C. (2017). there many manufacturing industries in the market. It's there essential that the company be unique in its own way. .

SWOT analysis 1. Strengths -Strong labor force - Modernized beds -eMarketing advantage -High demand in the market -The highly trained management team -Ready materials 3. Opportunities -Increase in demand for ICU beds as corona cases rises - Offering new technological beds - Government support might be there trying to contain the disease

2. Weaknesses -Venturing into e-marketing might be challenging - A lot of new hires as to train -The challenge in finding investors and bank loans lenders -Location of the factory might be a challenge 4. Threats -There might be already established industries dealing with the making of ICU beds -Low pricing from competitive markets -Some industries have already established their brand

These are some of the reasons as to why the business will compete with the already established businesses. The high rising demand of the ICU beds is one of the motivating reasons for completion with the already established businesses. The available and already established businesses have not been able to make enough and standardized ICU beds. This was as a result of the outbreak of the pandemic 9

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globally; hence supply became low. Many ICU beds being made by the already existing businesses are not up to date. Therefore, the industry will effectively compete by introducing electric ICU beds, which are modernized. Most of the already established businesses which deal with the making of ICU beds have not ventured most of its marketing through the internet. The gap exhibited provides a relevant market. Through the introduction of the internet, a large group of consumers purchases their goods through their gadgets. Since the company will mostly be based on e-marketing, this provides a better chance for it to do better than the existing businesses.

Zoom tools Customer zoom tools According to Drucker, P. (2014). to understand the most effective decision to make when looking for the best suitable customer. A customer zoom was done in the neighboring hospitals. The zoom was mainly meant to determine if different hospitals, both public and private, are likely to buy the ICU beds. Given the fact that there are rising cases of COVID 19 throughout the world, we expect hospitals to increase the level of admission of patients. We wanted to find out whether different hospitals would buy the idea of buying the beds. Different attributes could force a particular hospital to consider buying our product, which is the ICU beds...