A Business Plan For Benteng Machinery Ltd.

Twin screw compressor is rapidly occupying the market share of reciprocating compressor in recent decades due to its low noise, simple structure, and reliability as well as long life. Nowadays the market that was taken over by international giants is being encroached on by local competitive with times going. Because of fierce business competition in China market, the machine prices are gradually going down. By means of compressor industrial value chain analysis, we find that there are huge profits in aftermarket, especially for air-end overhaul. There is a huge existing compressor market, but the manufacturers only provide five year’s warranty, so great demands of air-end service are in the market. The air-end service is taken over by the manufacturers because they have technology and service parts. With ten years of working experience and technology in famous screw compressor company, The author analyzed the feasibility of establishing an air-end service company and organize a business plan. Based on the theory of Entrepreneurship, the thesis analyzes and expatiates on how to establish an air-end service company in Shenzhen City that covers South China market and then penetrate other region markets in China in franchise method.We can establish our core competition with our business partners by experience, disruptive technology, service, supplier chain. Through financial analysis, we can build a new company with600K RMB investment. The expected NPV investment return is1.64years; the IRR rate in5years is103%. We will find out that the project is a little investment and a profitable business project because this project has high technology entry, meanwhile the service price is high and the cost is low.