项目可行性分析报告.doc

Air Breeze Industrial Co., Ltd.No.44, Tongxing West RoadDongsheng Town, ZhongshanGuangdong, ChinaTel:(86) (86Fax:(86) (86Email：abcceilingfan.ccFeasibility Studies Reportof the Victoria CA05-AB Ceiling Fans Selling Project with Costco WholesaleSubmitted by VincentDATE: May 7, 2014ContentsChapter1: Project profile .3Chapter2: Introduction of both parties .3Chapter3:Comparison of target products to the similar products.5Chapter4: Analysis and forecast of the further development.7Chapter5:Risk assessment and solutions.8Chapter6:SWOT Analysis of the Project.10Chapter7:Suggestions and recommendations for the long-term development of the project.141 Project profile 1. By the Chinese ministry of commerce, our company has knew about that the United States Costco Wholesale Corporation co.LTD. planed to seek a fixed supply manufacturers in guangdong province whose annual output may reach 8 million units of Victoria CA05 - AB pattern of luxury ceiling lamp. 2. The duration of the contact is temporarily fixed at five years. The supply of material can be quarterly for 2 million units. The seasonal goods must arrive in the U.S. west Auckland coast port for 90 days in advance. Export quotation: FOB $60 port of huangpu. Minimum order quantity for quarterly 1 million.Total more than 1 million orders, the commission on sales can be achieved 1.0%.Total 2 million sets of each order, The discount can reach 1.5%.Objective We will negotiate this business during the following week in order to make a win-win situation and build a long-term and friendly trade relationship.2 Brief Introduction of the Two Parties 2.1. Costco Wholesale Corporation Founded in 1976 in San Diego, Costco is a membership warehouse club, headquartered in Issaquah, Washington, United States. Providing over 71.2 million members with high quality products at substantially lower prices is our companys mission. Costcos warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories include groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. With the diversification of the products, the company has grown worldwide with total sales in recent fiscal years exceeding $64 billion. Today, Costco owns 649 areas of operations in 8 countries. Whats more, many locations are coming soon.2.2. Air Breeze Co., Ltd.Air Breeze Co., Ltd. (hereinafter referred to as “ABC”) is a subsidiary of Taiwan Shi-Chen Electrical Machine Industry Co., Ltd. (established in 1949, the first and the largest manufacturer of ceiling fans and lamps in Taiwan). In 2001, ABC was set up. With an investment of USD 10 million, founded by Shi-Chen in Zhongshan, Guangdong, ABC specializes in manufacturing middle/high-grade decorative ceiling fans and lamps exported to America. With 60 years production experience and good technical teams in Taiwan and Thailand, ABC has a current annual output of 3 million products with the certification of ISO 9001:2000 and UL. Its equipped with a modern workshop covering 500,000 square feet, experienced designers and state-of-the-art equipment.3 Comparison of target products to the similar products( foreign and domestic market ) 1 Description of VictoriaCA05-ABCalculation Reference：Household 3P Air Conditioner / Rated Power (including indoor unit) 3100WP Number1P2P3PRated Power120022003100Running Hour101010Electricity Price/Kwh0.640.640.64Electricity Charge/Day7.6814.0819.84Ceiling Fan Electricity Charge/Day0.450.450.45Saving Electricity Charge/Day2.6225.1827.486Saving Electricity Charge/Month78.66155.46224.58Rated Power of Ceiling Fan 70W*10/1000*0.64=RMB0.45/dayName: Victoria CA05-ABDescription:In summer, turning the switch of ceiling fan to clockwise can produce wind chill to make you feel a thermoelectric effect about 8 in contrast to indoor temperature. So it is available to turn the temperature of air conditioner up to save 40% energy or more according to the statistics of Europe, America, etc.QualityISO 9001: 2000 UL standardAdvantages*conveniently controlled by digging rope and remote-control*three notches for regulation*function of lighting and air fan*elegant and fashion*saving more energy than air conditionerDisadvantages*expensive for household consumer*taking up more placeQuotationFOB $60 HuangpuUnites StatebrandMinka AireHunterCasablancapicnameCraftsman Ceiling Fan F840-CFHunter Cortland19th Centurysize5254 54motor3 Speed Reversible3 Speed Reversible3 Speed ReversibleConclusion: From the information above, its easy to realize that the cost of purchasing ceiling fan in local America is more expensive, which means the profit is lower. It is unwise purchasing ceiling fan in America.To gain more profits ,Costco company should choose our company as partners.ChinaPICNAMEABCCA05-ABFENGYUN co., LTD., FY108-3L strong static Lighting Electrical Appliance Co., Ltd.52zsm-505FAN MATERIALOak/walnutHigh density five-layer plywood Imported plywoodMotor3 Speed Reversible3 Speed Reversible3 Speed ReversibleSIZE52 /1320mm42 /1070mm52 /1320mmWHOLESALE PRICE (ONLINE)488568(exchange rate:0.159)$77.5990.31499530(exchange rate:0.159)$79.3484.27560660(exchange rate:0.159)$89.04104.94ANNUAL PRODUCTION CAPABILITY3,000,000UNKNOWNUNKNOWNprice$519.95$299.99$849.00Conclusion:Analysis: The color, motor,size and quantity of blade is almost the same, but the material of our products (stainless steel) is better than the others, but our price is almost the cheapest. From the statistics above, we can easily recognize that our Victoria CA05-AB is competitive in quality, and price in FOB $60 (free on board, not containing the insurance and freight) is reasonable and preferential. In summary,choose ABC, is Costco best partner on its successful business. Air Breeze Company is the best choice for Costco.4 Analysis and forecast of the further development 1 Market potentialFor the light decorative ceiling fan is greatly pleasing and elegant and is able to consume less power,many people are willing to purchase the product,which comply with peoples energy saving and environmental protection awareness.Besides, With the development of Chinese market and the improvement of the quality of life, the lights decorative ceiling fan with the brand image and the high quality 2 Supply AbilityThe annual output in our company is about 300,0000sets, considering the request of supplying 8 00,0000 ceiling fan annual year, we need to outsource the rest to other companies.We hereby list two companies that could help us guarantee the supply of the products.RAMADA INTERNATIONAL LTD-3888 ceiling fanAddress: Dahexia, MeiGeLianAn village, Shadui Town, Xinhui district, Jiangmen, Guandong province, China. Tel 0750-6167888Fax -mail ：1683888.meAnnual production :260,0000 setsNew products each year: About 30 typesHuizhou Golden Friendship Investment Co., Ltd.Address:Qingchun Industrial Area, Zhenlong Town, Huiyang, Huizhou, Guangdong, ChinaAnnual production :400,0000 sets3 price Our company now plans to offer gorgeous ceiling fan and lighting of VictoriaCA05-AB at US $60 per set FOB, Huangpu Port. Minimum quantity is 100 million per season. An order over 100 million sets is US59.4 per set. An order over 200 million sets is US59.1 per set.As the price we offer above, FOB at US $60 is reasonable and competitive, but to build a long-term relationship with Costco Corporation, we made the following special offers which is preferential and attracting:An order over 100 million sets is US59.4 per set. An order over 200 million sets is US59.1 per set.The ceiling fan is artistic and practical, it can save energy and reduce pollution of air-conditioner. Generally speaking, the market in further several years is considerable, because the global climate is becoming hotter, thus large amount of products of cooling is needed. Besides, Freon refrigerant in air-conditioner is able to destroy ozone. 5 Risk assessment and solutions 1 Changes in design ,model To meet the changes in design ,model,our D&R Department will make an introduction of its main distinguishing features and new changes in the design requirements is given, and some discussion are opened up. While our partners can help us to solve these problems.2 The increasing raw material cost and labor cost 1. Cost reduction Analysis(raw material cost) 1.1 If we cannot afford the increasing raw material cost , we can buy material from other suppliers . 1.1.1 Supplier of material PCTG TEITAN TX2001 Dongguan Yuan Qi Plastic Materials Co., Ltd Connecter: Gong Xiaowei Number: 086Fax：086-0769 PCTG TEITAN TX2001 $6.371per kg（lager number $6.21 per kg） Website: /trade/pdetail1551673.html Dongguan Run Xiang Plastic Materials Co., Ltd Connecter: Lu Junjie Number:/product-detail/100139110314.html Price negotiable Guangzhou HuaPuhang Trade Co., Ltd Connecter: Li Yuping Number: 86 020 32026533 Fax： 86 020 82017533 PCTG TEITAN TX2001 $5.89 per kg without tax Website: /PCTG TEITAN to 38.5RMB for per kg PCTG TEITAN, about $6.21 per kg when our order is above 385000 kg.COST LISTCOST(each)OUTPUTPRICEFIXED COSTMATERIAL COSTPROFITPCTG TEITAN(material)300 million$1.5$0.8$0.7$0$6.371per kg350 million$1.5$0.8$0.67$0.03$6.210 per kg400 million$1.5$0.8$0.66$0.04$5.968per kg300 million$1.5$0.8$0$6.371per kg(negotiable)2. The increasing labor cost 1. The situation of human resource structure needs change badly. Under current conditions, training is the most effective way to maintaining human resources and improving staffs qualities.Thereby it is a subject that enterprises must think over to improve whole diathesis of personnel and inspire potential and activity of every kind of stuff. 2. With the development of global supply chain integration, there are gradually more trans-national companies who outsource procurement to the 3rd party. 3. If we cannot afford the cost or the output of our order, we can outsource procurement to the 3rd party.A Shenzhen Xinqi Plastic Product Co., Ltd Website: /page/creditdetail.htmB Shenzhen Oupu Plastic Product Co., LtdWebsite: /C Shenzhen Hong Run Packing Material Co., LtdWebsite: /6 SWOT Analysis of the Project 1 Strength of the Project Victoria: - For ABC: Macro: expand business scale, break into US market, establish business relation, and boost reputationMicro: grow interest, enhance production capacity, improve internal management, and adjust marketing strategies and objectives. - For Costco: Marco: establish business relation with qualified supplier, Micro: grow interest, meet the needs of consumers, and enlarge membership. 2 Weakness: The project only focuses on ceiling fan Victoria CA05-AB regardless of other types of ceiling fans such as the famous Shakespeare series, Concerto series, Little Danny etc of our company products. ABC should send Costco of a detail list of product and negotiate with them on more trades. 3 Opportunities: - For ABC: - Short-term Goal: Boost sales and gain profit- Long-term Goal: Could establish long term business relation with Costco and sell more products; could build a wider business network in the US and hence set foot in the North America and South America markets; could attract potential business partners internationally and domestically.- For Costco: Could buy more qualified products from ABC; 4 Threats: - If the FOB price is set lower than $ 60 USD per piece, then it will lead to a great loss of net gain- All exported products should strictly meet the US standard, especially the Energy Conservation Standard