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Investment Decisions Essay

1457 words - 6 pages

The Rain Box Company will sell rain water harvesting systems for cistern supply. The main purpose of this product is to reduce the water charges, avoid the water waste and to help the environment in general.
I have decided to invest 30,000 euros in to this business venture, because it is a unique selling proposition, and it has a lot of potential, because the market for this particular product is still growing. As we already know in October, 2014 the water charges for each household will be applied in Ireland, and by acquiring this product it might be a good idea to save a lot of money. In terms of cash flow statement it seems that the company will take care of the investment as the money ...view middle of the document...

The market is not growing and is very competitive, as it is full of giant competitors. In my opinion for this company it will be hard to compete in the market as the only competitive advantages they have are the unique closet planner, affordable clothes prices which will be under 60 Euros and free shipping in Ireland. Furthermore, in my opinion the required investment amount is too high for such a risky business idea. Moreover, the income part in the cash flow projections is not realistic and it is hard to predict when the company will eventually break even. Overall, it is a good business idea, but I do not have a personal interest to invest into it.

Company Name: Trackr Plc. Required Funds: 40,000

The Trackr Plc. Company will sell watches which are designed for elderly people with the Alzheimer’s disease. This watch will have a GPS tracking device system built inside and it will also provide wearer’s personal info, such as the blood type, relatives’ contact details etc.
Overall, it is a good business idea, but I have decided not to invest into this business venture, because I feel that the business plan needs to be improved. This business idea has a potential as the market for this particular product is growing in Ireland. According to a secondary research the competition in Ireland for this particular product is higher than it was stated in the presentation. In comparison with competitors, this product lacks of competitive advantages. Generally, the price of this watch (130 euros) is too dear, because most of competitors’ prices are less than 80 euros for exactly the same quality watch. Another disadvantage is that the customer base is limited to approximately 40,000 consumers as the product is only suitable for people with Alzheimer’s disease. I feel that with the increase of competition the market might become too small.

Company Name: Everiskom Engineering Required Funds: 20,000

This company will sell oil filters which are used by fast food companies for their cooking stations. The main purpose of these oil filters is to save the costs for fast food companies. The product will also help fast food companies to obtain better quality end products, and also to save time.
I have decided to invest 20,000 into this business idea, because it is a unique selling proposition and if this idea will be properly patented it will have a lot of potential. Due to uniqueness of the product the competition is not high as there are only two few players Pure Fry, Purify and H&K. The product is very competitive and its first competitive advantage is – 50% cost savings. This is because Everiskom Engineering oil filters lasts 2 days where competitors’ products last only a day. The second competitive advantage is the ease of use which will allow changing oil filter fast and easy by simply applying oil filter every 2 days rather than using a service which has to come and clean the cooking stations. The customer base for this particular product is very huge...

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