SFB is concentrating on this space for several reasons: 1. SFB has extensive industry knowledge and insight regarding freight brokerage and silicon chips.
The silicon chip industry is continuing to grow as our dependence on technology increases. There is plenty of space for a new specialty freight brokerage company. SFB's extensive knowledge of both the freight and chip industry provides for valuable insights that can add significant value to SFB's customers. There are two distinct customers in this niche market, manufacturers of the chips, and the buyers of the chips who are processor manufacturers.
The manufacturers of the chips can be further broken down into two groups, those that have manufacturing facilities abroad and those in the U. Those that have facilities abroad will generally ship them to a United States ocean port, and from there they travel via truck to a processor manufacturer. The second group of chip manufacturers, those that have facilities in the U.
Although, in general, silicon chip production has shifted overseas, there are a collection of chip manufacturers still located in the States. The difference between the two types is not very significant, SFB arranges for the carrier to pick up the chips either off the boat or from the manufacturing facility. Whether SFB deals with the manufacturer or the seller is a function of the contractual terms that the buyer and seller agree to. Sometimes it is the manufacturer's obligation to ship, other times it is the buyer's obligation to arrange pick up of the chips.
The chip buyers are manufacturers that use the chips in their processors. By focusing in this market space, SFB will be able to offer superior service. Shipping of silicon chips requires special types of trucks that are humidity and temperature controlled.
SFB will form intimate relationships with the unique carriers because this relationship will provide SFB with special insight, which will allow SFB to meet any need a customer might have. Shipping silicon chips has special requirements and SFB will be more familiar with these requirements because it will not be distracted by offering other services. Specialization also allows SFB to develop close relationships to the limited number of carriers that are equiped to transport chips.
Lastly, the growth of processor manufacturing, which requires silicon chips, has far outpaced most other industries in this country. This growth rate makes this niche especially attractive. In the freight broker market, there are general brokers that offer a wide range of services.
There are a few companies that specialize, but no one is as niche focused as SFB. Because most all of the silicon chips are transported through the U. SFB will be marketing our business through several different outlets. The first is the Internet. A lot of the industry has moved to the Web as means for communication regarding freight quotes.
SFB will be developing a website where a customer can go to find out an estimate for freight rates. The website would key for finding the requisite information like weight, pick up and destination, and SFB would work with our carriers to find them the most safe and economical solution.
Because SFB is only working with silicon chips, the complexity of the number and type of trucks to be used non-temperature controlled, etc. SFB will also be running advertisements in silicon chip trade journals. The ads in the silicon chip journals will provide visibility for SFB to the manufacturers and buyers of the chips. This market is broken up into generalists, handling all types of freight brokerage, and specialists, handling materials ranging from heavy equipment, oversized loads, perishable commodities, or hazardous materials.
The chip buyers and sellers make the shipping decision based on service defined by many variables including customer service, speed, safety of the product and price. Once a customer finds someone who they are happy with, they typically stay with them. Strategy and Implementation Summary Silicon Freight Brokers will be going after the silicon chip market.
This is a reasonable target, due to SFB's industry knowledge. SFB will be bringing customers aboard through the use of a website, advertisements in industry journals, and networking from a combined 17 years of industry experience. Silicon chips are the basis of all types of computers as well as hand held devices such as cell phones, PDAs, even watches and some household appliances. SFB will be occupying a niche within the general freight brokerage market by specializing in the shipment of silicon chips.
Silicon chips are very specific, unusual cargo that requires special attention. The chips have a very narrow range of temperature and humidity parameters that must be maintained.
In addition to these unusual requirements, there are other specific needs that silicon chip companies have. By specializing on silicon chips as their only cargo, SFB will quickly gain market share and be known as the premier broker for chips.
The industry of chips is comprised of two distinct customers, manufacturers of chips and purchasers of chips. The manufacturers are based in the USA, however some of them produce in the States while others farm out production overseas and them import them.
Steve has over 10 years of freight experience, working for several different companies. This work experience has been instrumental in allowing Steve to accurately determine the market need and meet it.In order to have the marketing strategies that would be just right for us, we intend to conduct a market survey that will allow us have detailed information about the market we intend going into. We will also make sure that our employees are well trained so that they would be miles apart from their colleagues in the same industry in terms of skills while also boosting the productivity efficiency for our freight brokerage business. Once the business expands, Mr. This is a reasonable target, due to SFB's industry knowledge. Doe expects a strong rate of growth at the start of operations. Steve has spent the business 10 brokers in the freight brokerage business and has significant insight for creating business in this industry. It is highly unlikely that there will be much sales activity. Freight Brokers and Silicon Newspaper report on statins The freight broker industry is the middle man of the shipping industry management team. They are also known as third party transportation providers with, they typically plan with them. Once a customer finds someone pdf they are freight on their market niche, while fully utilizing their strong.
It is highly unlikely that there will be much sales activity.
SFB will turn these leads into customers through our specialized knowledge which translates to superior service offerings. SFB has two types of customers, buyers and sellers of silicon chips. They are also known as third party transportation providers. This work experience has been instrumental in allowing Steve to accurately determine the market need and meet it. There is plenty of space for a new specialty freight brokerage company. The third section of the business plan will further describe the services offered by the Freight Brokerage.
We are also confident that we meet our target and make profit within a year of starting this business. In order to achieve our aim of making enough profit that will sustain our company and also boost our bottom line; we intend to offer various services to all our customers. To develop a sustainable, profitable, start-up business. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
The Freight Brokerage, Inc. As such, it is difficult to determine the average customer of the Company as the business will have the licensure and the ability to effectively arrange for the transportation any type of merchandise. When we adhere to this maxim, everything else will fall into place. This makes good business sense, particularly in this industry where so much of the business is repeat business. SFB will achieve market penetration by remaining laser focused on their market niche, while fully utilizing their strong management team. In addition to these unusual requirements, there are other specific needs that silicon chip companies have.
The utilization of Silicon Freight Brokers in at least four of the top 10 silicon chip producers, as listed in Silicon Industry Journal. Once a customer finds someone who they are happy with, they typically stay with them. The second group of chip manufacturers, those that have facilities in the U. We will offer our customers the highest level of service.
The chip buyers and sellers make the shipping decision based on service defined by many variables including customer service, speed, safety of the product and price. SFB will form intimate relationships with the unique carriers because this relationship will provide SFB with special insight, which will allow SFB to meet any need a customer might have. By focusing in this market space, SFB will be able to offer superior service.