Satellite Communications Business Plan

Satellite Communications Business Plan


Blue Sky Satellite Communications CC is a satellite communications provider and solutions provider in Africa. The company’s headquarters are in South Africa. The company offers custom-made airtime packages, along with satellite phones and terminals.

Blue Sky Satellite Communications will achieve the following goals by focusing on its strengths and its key customers and the underlying values that they need.

This business strategy is the best. It renews our vision and strategic focus of adding value to our target market segments: the corporate business and high-end home office users, in our horizontal market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability.

The Company

In 1996, Pedro M G Camacho started “Hyper Parts Com Division” after purchasing a satellite phone from COMSAT. He was so impressed by the capabilities and potential of the satellite phone that he decided he would start his own satellite communications business. Blue Sky Satellite Communications was established in 1998. It has since had two good years of legal trade, with the prospect of enormous growth. As Pedro saw Inmarsat as a niche market and reacted well to it, the same outlook has been given to VSAT, as it is the next logical step in the development of the satellite communications industry.

Blue Sky Satellite Communications was founded on the belief that management of satellite technology will be the most important step towards communication since the invention the telephone. We are a service provider of Inmarsat services and VSAT services. This has allowed us to be at the forefront for Africa, the continent with the least connectivity. Our goal, in short order, is to build as many links as possible within Africa. This can be achieved by partnering with local telecom companies, government-owned or private.

In order to implement our goals we will focus on the following keys to success; increase Inmarsat airtime usage, develop the VSAT market, increase marketing in Africa, outsource quality services, introduce better value-added services to end user, and maintain and increase customer services.

Blue Sky Satellite Communications is located in Bedfordview,South Africa. It is only 15 minutes from the Johanessburg International Airport, and 15 minutes from Sandton, a suburb of Johanessburg.

At the moment, there are 4 employees working under one director. The company plans to expand the company’s size by at most 20 employees. The main additions to the company’s workforce will be sales personnel, customer support that would run continuously (24/7), and a technical assistance department. Marketing and promotion are outsourced to specialized companies.

We source our product directly from different Land Earth Stations. In most cases, we work directly with the manufacturer and/or service provider.

The Market

Our products and services have become one of the most desired commodities because of the rapid growth of internet use to send messages and other information. With the advent of broadband, we expect the growth to be exponential, more and more people and corporations will invest in faster and better communications systems to make them more productive and to show a better bottom line.

Satellite services are expected to grow by 20% annually in the Middle east and African markets. The market for satellite services is valued at approximately $12 billion in year 1. Blue Sky is determined to tap into the market and anticipates being able to capture between 10-20% of this market.

One of the most prominent aspects of new business today in the Telecom industry is the projected market growth. We can see that the growth projected for Telecom’s industry is much higher than any projections made previously, thanks to the privatization and emergence of many Telecom firms (which were previously managed by the government)

We shall provide our customers with systems that allow them to become more productive through offering two types of hardware. Inmarsat products, such as the Mini-M Sat Phone and the M4 Global Area Network terminal, are poised to maintain a growth pattern over the next 24 months. Impact will also be felt by the re-launch Iridium.

The market is huge and we can take advantage of it. VSAT has just emerged last year and there is a strong belief that it will continue to grow in Year 1 as well as Year 2.

Blue Sky is surrounded by a variety of local competitors. They give us the ability to continue improving customer relations. We learn from their mistakes and maintain a good relationship. Blue Sky has spent a lot of time focusing on the future trends within the industry in order compete effectively with these companies. This will allow it to position itself to be the market leader in this sector. Here are some of the key trends:

To keep the recurring monthly income at its best, all customers require strong customer service. For customers who need fast service, many of the solutions are available through the customer support center or via the Internet interactive Chat.

The market’s most important and obvious trend is falling prices. Although this trend has been evident for many years, it seems that it is now growing faster. We are seeing major suppliers and manufacturers putting together systems with incredible specs.

Another trend is the ever-increasing connectivity. Everybody wants the Internet. And every small office needs one. Many small offices want to connect their LANs to the Internet. Blue Sky will have to compete with other service providers in order to provide customized services packages that include all the required features at a fair price.

The company’s focus is on small and big businesses who require a wide range of services packages with lower airtime costs than their competitors.

Strategy and Implementation

  1. We are committed to providing support and service. Blue Sky will not simply sell the service. We will stay in touch with the client to update them on important information about any product or service that has been delivered.
  2. Our goal to build long-term relationships with our customers. Since recurring income is the main objective of this business, it is important to keep as many clients in touch as possible. We must keep in touch with our customers. This is achieved by sending out newsletters and emails so that they are kept up-to-date with all that is happening in the marketplace.
  3. Blue Sky can be successful by focusing on certain markets. Our experience in the business means that we know the changes in market requirements and have the ability to quickly and efficiently take decisions on new markets. This allows us to be more focused on the market segment and its changing needs.
  4. Be different and deliver on our promises. We aim to be Africa’s top-rated provider of satellite services. We want to offer pre-paid services as well as rural telephony. Additionally, we want to be involved in the education and empowerment of users and sub-users. We want to meet all our promises and go the extra mile for those who need it most.

Projections Financial

The company projects that it will earn $62.2million by the third year with a gross profit of 31.7%. Controlled SG&A costs will create a very strong net margin. To establish a regional presence for Africa, the company plans to invest $6.2million in longer-term assets over three years.

1.1 Mission

Blue Sky Satellite Communications has been built on the assumption, that the management and development of broadband service will be the most important steps in communication ever since the invention of the phone. As an Inmarsat service provider and VSAT service provider, we are at the forefront in Africa, which is the most disconnected continent in the world. Our goal, in short order, is to build as many links as possible within Africa. This can only be done by partnering up and working with local telecommunication companies (private or government). We can provide high-quality communication to all of our customers, wherever they may be, by partnering up with local telecommunication companies.

Blue Sky Satellite Communications brings satellite communications down to Earth.

1.2 Keys to Success

  1. Inmarsat: Increase your airtime.
  2. Develop the VSAT market.
  3. Increase marketing in Africa.
  4. Quality services can be outsourced.
  • Improve value-added offerings to end users
  • Maintain and increase customer services.
  • 1.3 Objectives

    1. Increased sales to more that $20 million in the third year.
    2. Keep the gross margin at 30% or higher and keep it there.
    3. Sell $4 million of service, support, and training by Year 2.
    4. Improve inventory turnover to six, seven and eight turns in Year 2 respectively.

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