GLOBAL BUSINESS ENVIRONMENT
ICON – A5 Aircraft
ABOUT US….o Company Name : Royal Wings o Established – 2006o Based In :Bangalore, Indiao The Royal Wings Team :
• Founder & CEO Karan Brahmabhatt• Co-Founder & COO Vivan Patel• CFO Ankit Agarwal• Spokesperson Prakruti Pujar• President [Marketing] Bhowmik Goradia• President [PR] Saloni Seth
PRODUCT OVERVIEW
Amphibious aircraft Carbon fibre airframe Retractable landing gear - enabling it to take
off from water or landing strips. Enclosed cockpit – 2 seater - with
wraparound canopy Powered by a single internal combustion
engine driving a pusher propeller. Removable side windows. Hydrodynamic stability. Its high-wing design - superior visibility Foldable wings aft - facilitates transportation
and storage.
ICON – A5 AIRCRAFTo Specifications;
Seats: 2Maximum Takeoff Weight: 1430 lbsUseful Load: 430 – 530 lbs (option dependent)Baggage: 60 lbs (maximum)Fuel (Auto Gas or Av Gas): 20 galMaximum Speed: 105 kts (120 mph)Range: 300 nmTakeoff & Landing Distance: 750 ftEngine (Rotax 912 ULS): 100 hp
Performance specifications are estimates only.
ICON – A5 AIRCRAFT
o DIMENSIONS
– Interior Cockpit Width: 46 in– Wingspan: 34 ft– Aircraft Length: 22 ft– Aircraft Height: 7.1 ft– Trailered Width: 8.5 ft– Trailered Length: 28 ft– Trailered Height: 8.3 ft
ICON TRAINING Due to recent regulation changes, becoming
a Pilot is now easier and more fun than ever before. The Aviation Administration’s Sport Pilot License is all you need to fly an ICON A5.
Further, ICON can provide all the necessary training to get you safely flying before taking delivery of your new A5.
DOING BUSINESS IN INDIA
Doing Business In India
WHY INDIA? India is a country with the second largest
population in the world The vision is to promote light general
aviation as the safest, most affordable and purposeful option for the common man in India.
India is our home country due to the following factors:
An attractive destination for most industries Labor wage rate in India are very low. Skilled manpower & technology available
PEST ANALYSIS
Political
Tax Policies
Employment Laws
Political Stability
Economic
Exchange rates
Setting up business in SEZ (Special Economic
Zones)
Scope of FDI
PEST ANALYSIS
Social
Lifestyle changes
Resistant to change
Technological
India also has a large pool of IT professionals
Setting up R&D facilities
SWOT ANALYSIS
Strengths
The first mover advantage
Pricing of our product
Availability of resources
Weakness
Red Tapism
Land acquisition problems
Labor unions
SWOT ANALYSIS
Opportunities
An unexplored market
Tapping the premium segment
Using the aircraft for recreation
Threats
Mindset of the people
Safety challenges
An unexplored market
ENTERING THE MARKET
The product launch will be taking place at the
Delhi Auto Expo(2011)
Initially factory owned outlets will be opened
in the metros
Promotional campaigns and advertising
teasers be released
Tie-up with financial institutions, Sahara City
& Lavassa Corporation.
PROMOTIONAL CAMPAIGN Fractional Ownership Program
This is believed to be the first fractional ownership
program for light aircrafts
Designed to help owners share the rising costs of
plane ownership
Allow up to 10 people to share a new fully loaded ICON
A5 , a light two-seater plane
Each owner will get 50 hours of use per year including
10 overnights per person
Provide flight instruction to make sure each partner is
competent in the aircraft.
DOING BUSINESS IN THE UNITED ARAB EMIRATES
Dawlat al Imarat al Arabiyya al Muttahida
HISTORY
The United Arab Emirates were bound by truce (Trucial States) to Great Britain until WWII.
The seven Emirates formed a federation in 1971 and have since worked closely together to build a stable economy and political climate.
PESTLE ANALYSIS Political
Each Emirate has its own governmental institution. The ruling family of each Emirate is a member of the
Supreme Council, which is responsible for policy-making and electing the president and vice president for five-year terms.
Economic Wealth is based on oil and gas exports (Abu Dhabi) The government increased spending for infrastructure
and job creation, and there is a greater opportunity for private sector investment.
Lately there has been a surge in real estate and shares prices and consumer inflation is elevated.
PESTLE ANALYSIS Social
Islam plays a large role in business Women are seen as equals and are protected by
rights and privileges laid down by Islam
Technological Telephones (land line and cell), radio broadcast
stations, television, internet Legal
Court proceedings in the UAE are time-consuming. There are no juries; only a single judge or a three-
judge panel (depending on the case) hears cases. All evidence submitted to the court must be in Arabic.
Environmental Arid/tropical, sandy desert, and coastal areas.
SWOT ANALYSIS Strengths
Free Trade Zones, relative ease of business start up
Weaknesses One needs a network of people in order to expand
opportunities Trust must be gained before any business transaction
occurs
SWOT ANALYSIS Opportunities
Large export market Trade missions
Threats Sandstorms and dust storms occur frequently.
ECONOMY United Arab Emirates is now the second-richest country
in the Muslim world. This is because the UAE claims the world's third largest proven oil deposits.
The GDP per capita fell by 42% in the 1980s, but successful diversification helped to provide a positive growth of 48% in the 1990s.
Immigrants make up a large percentage of the UAE’s workforce.
The UAE government wants to preserve its traditional forms of art and culture. However, change is also apparent.
BUSINESS The United States Department of State has noted
widespread instances of blue collar labor abuse throughout the United Arab Emirates businesses.
It is a common practice for managers and employers in the UAE to hold employees' passports for the duration of their employment contract.
The UAE government has been criticized by many human rights agencies. One of them, the Human Rights Watch, has criticized the government for not acting when discrimination against Asian workers in the emirate is present.
ENTERING THE MARKET A local sponsor or service agent Trade license Register with the local Chamber of Commerce and
Industry, the Economic Development Department, and with the Minister of Finance
Annual renewal of the trade license Company can function only within the emirate where the
license was granted Separate license must be obtained to open a branch in
other emirates
ENTERING THE MARKET Free Trade Zones
100% foreign ownership is allowed with no recruitment or sponsorship problems
Corporate tax and customs duty exemption on imported raw materials and equipment
No levy on exports and imports The Free Zone Authority gives a questionnaire to
assess the company's requirements and whether it can be met.
Once the company submits the questionnaire, it will be given a license application, a list of invoices required for planning, consumer request for electricity and Form B for environmental concerns (if applicable).
DOING BUSINESS IN SWITZERLAND
WHY SWITZERLAND? Highly flexible legal environment Long-term stability Protection of free competition and property
ownership Geographically isolated locations Quality conscious customers Sophisticated and modern infrastructure –
highly operational High per-capita spending on luxury
PESTLE ANALYSIS Political : Stable Protection of free competition and property
ownership Access to government agencies and services
Economic : Depends for its wealth on foreign trade Highly qualified labour force performing highly
skilled work. Need foreign markets in order to make investment
in research and development worthwhile Prompt investment in ICT
PESTLE ANALYSIS Social : Population of about 7.6 million – 21%
foreigners Lifestyles are changing as the Swiss adapt to
new demands Mountains and valleys physically keep
communities apart
Technological : Important– limited or nil natural resources Raw output of scientific research – one of the
best in the world Country’s “e-readiness” for private use
PESTLE ANALYSIS Legal : Confederation can levy indirect taxes and
duties Uses the tax exemption method and does
not tax income or net worth that is allocated to the source country
Full tax relief is often available for newly established companies for limited periods of time, followed by reduced rates for their international business
Tax treatment of expatriates -
PESTLE ANALYSIS
Tax treatment of expatriates
PESTLE ANALYSIS Environmental: Main producer of greenhouse gases in
Switzerland overall is transport - 31% emissions in 2000
Emissions - Carbon dioxide (CO2) and nitrous oxide (NO2)
SWOT ANALYSIS Strengths
High standard of living Strong home market Cooperation with EU Infrastructure
Weakness High cost of land Stagnation in the expansion of the air
connections
SWOT ANALYSIS Opportunities
Ongoing improvement as a business location Focus on the links between industry and research Foreign direct investments – encouraged – thus
easy expansion and diversification
Threats Diminishing availability of sites
ENTERING THE MARKET Government is liberal.
Permissions -International civil aviation is governed by the Convention on International Civil Aviation (the Chicago Convention)
An aircraft registration is a unique alphanumeric string that identifies an aircraft, in similar fashion to a licence plate on a motor vehicle.
Certificate of Registration
ENTERING THE MARKET Associating with General Aviation
Manufacturers Association, Switzerland
Target Frequent Holiday goers/ Travelers Senior managers in corporate houses Sport enthusiasts Rich and the wealthy
ENTERING THE MARKET Marketing : Examples :1. Associating with corporate houses and flying
senior managers during business/personal travel
2. Reasonable Pricing3. We will hire Michael Schumacher for our ad
campaigns4. Hiring well-known faces as spokesperson
and promoters5. Promoting premier sports like golf and skiing No existing competitor in the specific price
range and specific segment of private flyers
SUMMARY We have spoken about 3 countries , namelya. India – home countryb. UAEc. Switzerland We have done PESTLE and SWOT analysis of
every country Explained how we would enter the respective
Markets to gain foot hold each country Explained the marketing strategy
ACKNOWLEDGEMENT Firstly, we’d like to thank Mrs. Vinima Sharma
for giving us an opportunity to work on this project.
Secondly, we’d like to thank the class for their co-operation.
And last, but not the least, we’d like to thank Mr.Yash Ajmera, on being our first customer to book an Icon A-5
ANY QUESTIONS?