Description of the Company
Vobes Company is a transport services company that is to be set up in Dammam the capital city of Saudi Arabia. Dammam is studied as the most populated city in Saudi Arabia and therefore the company would have a great opportunity to set up its business in order to meet the increasing demand for transport services. The company expects to initiate its business in Dammam and later it would spread its business to other countries as well.
The mission statement of the Company states that it expects to serve a large number of customers in the markets of Dammam at low process and also expects to capture a large market share by attracting the target customers mostly in the age group of 25 to 45 who prefer to use cabs for traveling.
Products and Services
Vobes Company aims at serving the customers with the transport services 24 hours a day. It also aims at providing discounts to the customers so that they are attracted to their services and develop brand loyalty. The market research suggests that there are around thousands of local customers who prefer to avail taxi services during the peak hours. Further the company also aims at providing online booking services to the customers and plan to launch an application for the smart phone users in the markets of Dammam.
The break even analysis of the Vobes Company states that the company would earn a profit in the first year and the profit is expected to rise in the later years. The breakeven point is located in the fifth month when there is a no profit and no loss situation and then after that the company starts earning profit. The total profit in the first year is around $15580 that increases in the later years as depicted in the three years income statement. The company plans to purchase 15 cars of $24,700 each and rent them at $30 per day.
Madawi Alsulaim and Sara Alghamdi are the two business associates who plan to invest $25000 each for establishing the business. Fund are to be raised by borrowing loans from the banks as well that is around $40000 is to be borrowed for establishment as well as the promotional activities to conduct the business efficiently.