1. Owners Business Plan Jumana AlUmran 200800444
BUSI 4261: Entrepreneurship
Section Fall 2012
Business Plan
Owners
Jumana AlUmran
Miznah AlMansour
Sara AlZamil

2. Outline Introduction Description of SolaRays Industry Analysis
Market Analysis
Marketing Plan
Management Team and Company Structure
Operations Plan
Business Model
Plan for Designing and Developing SolaRays’s Services
Financial Projections
Summary

3. Introduction
The growing concerns of global warming and the decrease of oil reserves made it inevitable to seek alternative energy from renewable energy resources
Since Saudi Arabia is enriched with higher level of solar radiation, and to cope with the increasing electricity consumption trends, it is the perfect timing to introduce SolaRays to the citizens of Saudi Arabia
SolaRays offers solar electric systems to residential and commercial buildings

4. Introduction
The Ninth Development Plan concentrates on the economic resource development
Contribution of the alternative energy sector to GDP is expected to be 1.9% in 2014
Saudi Arabia aims to using renewable energy in order to meet rising electricity demand, as well as reducing the domestic use of crude oil and hence release additional oil capacity for exports

5. Introduction
Economic Resources Development: The Plan aims to expend about SR227.6 billion on the development of economic resources, including agriculture, water, electricity, oil, gas, minerals, industry and general economic services. These amounts constitute 15.7% of the total allocation approved in the Plan for all development sectors, and exceed comparable allocations under the Eighth Development Plan by 115.1%, reflecting increased efforts to develop economic resources, improve the efficiency of their utilization, and maximize their economic and social returns.

6. Description of SolaRays
Background & Reasons for Developing SolaRays
Oil is a non-renewable energy source
Global warming burns fossil fuels, this releases CO2 to the environment
The sun is an everlasting source

7. Description of SolaRays
Vision
“To have a brighter today and a brighter tomorrow, SolaRays provides solar power systems and their installation as well as services for the maintenance of such systems. SolaRays will help reduce the country’s reliance on oil, create a more sustainable future for our planet and reduce global warming.”

8. Description of SolaRays
Mission
“SolaRays aspires to become a premier provider of solar energy products and solutions, by delivering economically viable, environmentally sensible and socially responsible alternative energy to residential and commercial properties in Saudi Arabia. SolaRays seeks to produce financial rewards by investing in human resources, and monitoring global technological trends to provide clean and renewable energy solutions.”

9. Description of SolaRays
Services
SolaRays sells, installs and maintains residential and commercial solar systems in the Kingdom of Saudi Arabia.
Some of our initial services:
Identify appropriate solar energy strategies focusing on photovoltaic technologies
System concept design
Feasibility Assessment
Project management and consulting
Technology review and recommendations
Solar system installation
Monitoring
Maintenance of existence installations

10. Four Basic Components of the System
Rooftop Solar Modules
An Inverter
An In-Home Solar Power Monitor
An Electric Meter

11. Description of SolaRays
SolaRays’s Status
We are three PMU graduates
All three will equally share the ownership of the business
Diminishing partnership contracts with a local bank
Preparing all documents to apply for a license from the Chamber of Commerce

12. Description of SolaRays
SolaRays’s Key Partnerships
SolaRays will be importing a specific type of solar panels that have high performance in high DNI regions, such Saudi Arabia.
Concentrator Photovoltaic (CPV)
Soitec is a France-based leading manufacturer and supplier of CPV systems, and considered to be one of the world’s largest photovoltaic manufacturers

13. Industry Analysis
Saudi Arabia alone has twice the average solar irradiation experienced in Europe, with yearly normal energy up to 2,550 kWh/ m2
The renewable energy sector is an emerging industry, as it faces recent changes in demand and advances in technology
The Kingdom’s solar energy industry is expected to encounter fast-growing demand for renewable energy

14. Industry Analysis The population is expanding by 2.3%
The economy is annually growing by 5% to 6%
The demand for electricity is increasing by annual 5%
Electricity demand in Saudi Arabia is anticipated to grow from 40 gigawatt (GW) to reach 120 gigawatt (GW)
between the years of 2010 and 2028.

15. Industry Analysis Trends An increase in the awareness of going green
and saving the environment
The technological improvements
in energy solutions

16. Industry Analysis Key Success Factors
The technology differentiation and technology strategy
A strong public awareness on energy would support renewable energy efforts
The brand strength and access to distribution channels

17. Industry Analysis The energy sector is highly fragmented Oil
Natural gas
Clean and alternative energy
Wind energy
Solar energy
Nuclear energy

18. Industry Analysis
Five Force Model

19. Market Analysis Target Market
Average-to-high-income commercial and household customers (above 150,000 SR annually) who are in need of efficiency investments.
People with high degree of awareness and concern for environmental and social issues
Care about using renewable energy sources.

20. Market Analysis
Competitor Analysis

21. Product
Features
Durability
Price
Quality
Customer
Service
Target
Customers
SolaRays
Rawa
NSS
EGPHIL

22. Market Analysis
Competitive Profile Matrix (CPM)

23. Marketing Plan
We will issue ads that inform, engage, interact and entertain customers
The advertisement campaign will deliver great impact and high awareness, to turn shoppers in any shopping mall into buyers!
Chamber of Commerce, Water and Electricity Ministry in the Eastern Province, Saudi Aramco, SABIC, and SCECO

24. Marketing Plan Marketing Mix Product/Service
SolaRays offers a special solar power systems made up of concentrator photovoltaic panels that have high and constant performance in Saudi climatic challenges.

25. Marketing Plan Marketing Mix Price
Compared to the wide used electricity generated through oil, the pricing of solar power systems might be high at first, but over a short period of time, it would generate high return on investment.
SolaRays installs photovoltaic solar home system at 10 SR per watt.

26. Marketing Plan Marketing Mix Promotion
Newspapers, brushers, fliers, billboards, and online advertising and social media network
Banner ads on Google and Yahoo!
The Solar Energy Summit in 2013
Booths in ABYAT and SACO

27. This isn’t a billboard. It’s a power plant.
Nozhat AlKhaleej, Ad Dammam.

28. Marketing Plan Marketing Mix Place
SolaRays will be located in Nozhat AlKhaleej

29. Marketing Plan Marketing Mix People
Staff have appropriate interpersonal skills, and the service knowledge to provide the best service that our customers are paying for
SolaRays is dedicated to provide highly qualified engineers, technicians and other technical professionals to meet every specialized requirement of our clientele.

30. Marketing Plan Marketing Mix Process
An assessment for the building would be conducted by one of the team’s certified installer
Engineers will create a system concept design
The installation phase starts, supervised by the installation and operations department
SolaRays offers an ongoing monitoring system

31. Marketing Plan Marketing Mix Physical Evidence
The showroom of SolaRays will be fully operated using one of its solar power systems.

32. Marketing Plan Channels of Distribution
The Ministry of Water and Electricity
Campaigns, advertising, and raising awareness, people will become familiar with the brand
Third party logistics (3PL) vendor

33. Management Team and Company Structure
Our management will be composed of hand-picked individuals who are leaders in their field.
Managers will be experts in the engineering field.
We will try to pick people with high expertise to help in consulting.

34. Installation and Operations
Board
of Directors
Consultation & Design
Receptionist
Consultant
Engineers
R & D
Research Engineers
Installation and Operations
Technicians
Sales & Marketing
Brand Marketing
Manager
Social Media Manager
Public Relations Manager
Sales Manager
Finance
Accountant
Management Team and Company Structure

35. Operations Plan
Initially SolaRays will be located in on Nozhat AlKhaleej district, located between Ad Dammam and AlKhobar The showroom will be on the ground floor
Offices will be located on the floor above
Office equipment
An initial stock of solar panels, PV cells, solar batteries

36. Business Model Key Partners Key Activities Value Propositions Customer
Relationships
Customer Segments
Channels
Key Resources
Cost Structure
Revenue Streams
Retention-focused
Siotec
System Installation
Residential
Cutting-edge technology
In-person
The Water and Electricity Ministry
After-Sale Services
Commercial
Telephone
High performance of panels in Saudi climates
Average-high income level
3LP
Reach the target audience
SACO
Online media
Environmentally-minded
Excellent service before, during and after installation
Offline media
Good location
ABYAT
Commercial booths
Brand
Installation methods
Social presence
Supplier
Product/service sales
Marketing & Sales
Maintenance services
Logistics
Staff

37. Plan for Designing and Developing SolaRays’s Services
What do we still need to do?
SolaRays will be importing the CPV from (Soitec)
Is a well-known company, located in France
Provides the solar energy products that fits with KSA climate
Low transportation costs
What is our risk and challenge?
Not getting enough customers
How will we protect ourselves?
By focusing on our competitive advantage
Thus, SolaRays’s competitive advantage is the special type of the panels used for the system. This technology is the most competitive solution in the market, offers the best design for use in dry and sunny climates, and delivers the highest efficiencies on the market As well as the excellent service before, during and after installation by closely monitoring the solar power system’s performance remotely after it’s running.

38. Financial Projections

39. Financial Projections
Sources of Funds
A diminishing partnership contract with Albilad bank

40. Summary
There are numerous factors ensure the attractiveness of the renewable energy industry in Saudi Arabia
The reason for developing SolaRays is its timeliness to answering the needs of the populace of Saudi Arabia for renewable safe and sustainable energy source
SolaRays’s team believes that there will no doubt be risks and challenges along the way. But, SolaRays will focus on its competitive advantage that will come from
its cutting-edge technologies used in the solar panels
its high level of customer services
the core competencies and strategic resources, which will not be easy to copy

41. Thank you for listening