Noem Project
Brief
Neom is a transactional city set aside as an economic zone to be located in Tabuk, Saudi Arabia and whose construction will extend to Egypt and Jordan. The development aims at providing a global hub for everybody in the entire world. The promise is to provide a lifestyle that is not presently available in Saudi Arabia and thus remake thus, remake this kingdom as resources continue to dwindle (Carey et al. 2017). The operations of this project city will be independent of the current government framework and investors will be consulted throughout the development process. The project is an indication of the Kingdom's shift to a "new generation of cities," where clean energy will provide required power and anything tradition will not be allowed (Carey et al. 2017). The base of the project appears to be the Free Zone idea, where such zones have their laws and regulations and are exempt from standard tariffs.
The reason for choosing this project city is that many business opportunities will be up for grab since an improved lifestyle would require improved services delivery but with a focus on high quality. With the construction of the city, the project also targets the provision of clean energy and water by exploiting the available resources including solar and wind power. Another focus is the provision of food in a desert, which requires investment in start-of –art technologies to support solar-powered greenhouses and seawater farming. Provision of quality health will involve biotech research on health knowledge and develop and apply it. Transportation and advanced manufacturing are other aspects of the project to be included (Neom, n.d). The leisure activities will also provide business opportunities. These aspects highlight the reasons for choosing this location.
Summary
The business idea to build on the Neom project is Recreational Center that is aimed encouraging physical and outdoor activities targeting people who choose to locate in the city. Since the aim of the project is to provide a lifestyle not experienced in the world, family entertainment, leisure and recreational activities will form an essential aspect of the desired standard of living. The Target market includes individuals and families who relocate to this area and focusing on having a center that is family oriented to take advantage of their desire for better recreational and leisure activities. Entertainment will form a new buzzword for the wealthy individuals who will relocate to the city since they will not just want to buy stuff. They will be interested in a quality experience, and the recreational center aims to provide fun, authenticity, and participation and hence, a successful experience. These people will have money that they can spend on recreation activities and entertainment, in line with the market trend where more people are paying considerable amount of their money in this area than on clothing and health care.
The provision of quality experience through recreational and entertainment services will involve a strategy focusing on families and individuals. The establishment and commercialization of the center will focus on what these people need regarding adventure and entertainment in this city market. The business will target the niche market, where the customer relationships will be tailored to the needs of these customers. The Objectives of the company will be; to establish a service-based business where customers' expectations are exceeded, acquire a high number of customers each year, to create a family destination that aligns with community needs and create value in line with Neom City. The Business will provide a range of activities to customers that include both indoor and outdoor services. The activities also comprise of registered programs, rental rooms, weight rooms and sporting programs. The sporting program will involve activities such as golfing, swimming, tennis as preferred by the customers. The registration programs will keep the population in the city health and hence, improved good lifestyle as envision in the Neom objectives. Also, a focus on family will call for the inclusion of food outlets in the Center where healthy and fresh food products will be provided. The provision of such food products will encourage the consumption of locally produced foods as highlighted in the blueprint of the city. The recreational center will be a business whose operations will be aligned with the goal of Noem project, which involves a unique quality lifestyle. The choice for this idea is hinged on the fact that the people who will settle in this new city have a high purchasing power and hence, enough money to spend on recreation and entertainment. These aspects present a unique business idea.
The business plan is built on high-quality services, cost reduction and customer focus for growth. To attract investors, the business plan will display the efficient use of initial investment funds and the prospect for growth. The creation of a realistic budget based on good traction and customer discovery. The business plan will spell out the opportunities represented by the establishment of Neom City involving recreational and entertainment customer needs, the expected returns and growth projection.
Conclusion
The recreational business is based on the premise that Neom City project will offer a quality lifestyle to people from anybody from around the world. The business will focus on the provision of recreational and entertainment services to families and individuals who settle in this area. The business operations or activity of the recreational center involves leisure, sporting and entertainment activities that are in line with the objective of the Neom project. Objectives of the business will be; to establish a service-based business where customers' expectations are exceeded, acquire a high number of customers each year, to create a family destination that aligns with community needs and create value for investors and clients. The individuals expected to settle in the City are mostly affluent, and the creational center will provide an opportunity for activities that serve their health needs. To attract investors, the plan will highlight the business opportunities availed by the project and expected returns and growth.
SWOT Analysis
Strengths
The features that offer give the business an edge over any competitor includes a combination of new sporting facilities and equipment for exercise and unique classes not provided in other areas. A professionally certified workforce, high-quality customer care, and customer participation will provide an advantage for the business. The attraction of dedicated investors, effective management, and marketing program will ensure the achievement set objectives.
Weaknesses
Being a new business, the management and staff may lack experience while operating in a different environment. Lack of initial funding to improve facilities and equipment as problems arise may present a weakness.
Opportunities
The market involves customers who are keen on their health and especially family-oriented facilities. The inclusion of various services in a package will enable attraction of more customers.
Threats
There is a threat of new recreational businesses being opened in the city which will lead to increased competition. Lack of enough funding for expansion and marketing programs also present a substantial threat.
Innovation Strategy
The strategies for this business will be based on the question of how the power to draw customers in the center will be increased. There are many alternatives for recreational and leisure activities from which customers can choose from, and the adopted business strategy will have to make customers choose to engage in this center. The general formula for market economics involves supply increasing to meet the demand, with an assumption that demand will always be there and hence, triggering a response from business (Osterwalder & Pigneur, 2010). Demand for leisure services may not always be guaranteed. The strategy will involve the creation of market when demand is slow. The approach will involve using advertisement to announce the opportunity through public education of the services and making the offerings to appear attractive. The strategy will ensure that there is enough revenue generated and hence, cushion the business against any possible failure due to insufficient capitalization. It will ensure that the business being operated attracts and maintains a viable market that leads to a constant generation of revenue.
The second issue involves an understanding that the basis of leisure business is leisure activities by people in the Neom City. This will require a focus on the life cycle of the business which is, in this case, "activity lifecycle". Understanding that the introduction of these new recreational services will follow the "introduction, growth and peak, and then stagnating" life cycle will help in recognizing real demand and then igniting demand when it declines (Kelly, 2013). To sustain the existing customers and attract new ones during the entire business cycle, quality will be everything. Ensuring high-quality services is a way of avoiding mediocrity, which is quite risky in business. For a start –up that want to have a sustained long-term growth quality is a central thing. The experience at the Recreational center must be powerful enough to bring customers back, and at the same time, spontaneously induce word-of-mouth and hence, promotion though person to person.
Besides, the strategy involves how to marketing mix will be done to popularize the services offered and improve customers experience. It involves the using booths and Family Event presence. This involves taking advantage of the other events taking place in the area and informing people of the services offered at the recreational center. This will involve a presentation of programs offered and offering people a chance to register immediately. The use digital technology to advertise such services will play a huge part in helping individuals know of any facilities and activities that are available and which they can access at and order online. This will involve encouraging people to register early by offering discounts or so that to get the facilities filled in the evening, weekends and holidays. The pricing structure will be such that it will allow for group discounts targeting families, organizations, and institutions. The use of such campaigns will require care so as not to attract more bargain hunters than potential customers. Also, to improve service quality especially on physical exercises, the use of instructional videos will be vital since it will increase the participation of customers. The video should be short and present during the registration process to capture customers' attention. The use of this strategy will ensure the attraction and retention of customers.
Business pattern form
Customer Segments
Family groups segment
Organizational or institutional groups segments
Individual customers
Value propositions
Provide high-quality leisure and entertainment services while exceeding customer needs
Provide a playful and safe environment for parents and kids as major customers
Community education on the need for recreational activities
Channels
Increased communication using online platforms, distribution of fliers and other informative materials on the health effect of recreational activities
Customer relationships
Provide 24 hours customer services to obtain concerns, complaints and providing feedback in time for all segments
Revenue streams
Offering superior customer experience through leisure and entertainment services
Offer indoor and outdoor sporting activities
Key resources
Fitness facilities
Gymnasiums
Theater
Indoor and outdoor swimming pools
Sporting fields and facilities
Key activities
Educational play activities with learning
Special events including weddings and birthdays
Photography for various events and activities
Movie theaters
Corporate sporting activities
Key partnerships
Instructors, consultants and healthcare specialists
The firm will be co-owned by at least two investors who will provide the required capital
Cost structure
Start-up expenses $ 55,750
Total assets required $ 582, 000
References
Neom( n.d).The world's most ambitious project: an entire new land, purpose-built for new way living Retrieved from http://discoverneom.com/
Carey, G., Nereim , V., Cannon , C., (2017).Sun, Sea, and Robots: Saudi Arabia's Sci-Fi City in the Desert. Retrieved from: https://www.bloomberg.com/graphics/2017-neom-saudi-mega-city/
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
Kelly, J. R. (2013). Leisure business strategies: what they don't teach in business school. Sagamore Publishing. 21
