Business Plan Skyline

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The business is at the inception stage of its life cycle and has the potential to grow and compete with other major players in this sector. The initial objective of the company is to cater domestic as well as international consumers while capitalizing on weaknesses of its competitors. In the long run, the company is planning to sign a contract with big players in the oil sectors in order to have better access to the global market. The factors that will help in facilitating the success of the company are the presence of its facilities near oilfields, the experience of the partners and knowledge about the strength and weaknesses of competitors. Skyline has only two sources of fund: capital brought in by partners and loan from the bank. The owners have kept the capital structure simple and financial projections of the first year for the business look healthy. Hence, it is expected that the company will grow and perform better in the long run.
Skyline is entering the machinery spare parts industry as a distributor of machinery necessary for the supply of water, oil, and gas. The industry had suffered major slow down during global recession in the late 2000s, but significant growth is observed in recent years as with the increase in demand of oil and natural gas, investment in machinery as well as pieces of equipment. Since oil and gas from Oman are mainly exported, the company will cater to domestic as well as international consumers. Furthermore, the company is targeting oilfield regions and refinery coastal areas for setting up its business as supplying spare parts will be easier from these regions. The company is a late entrant can convert weaknesses of the competitors into its strength.
The main products of the company and their varieties are pipe fittings (Carbon Steel, low temperature, Alloy Steel and Stainless Steel), bolts (Carbon Steel (normal and low temperature) and Stainless Steel).