Business Report on How to Market Computer Sims as Replacements for Drivers Ed

Business Project

A. Marketing Plan

We wish to design a simulator which will allow people of any skill level to learn how to drive in a very safe environment, using real life feel driving simulators. We feel that the current system of Driver’s Education could be forever changed. Once this idea has been laid out, the possibilities are virtually endless. We could simply use the devices to create a large-scale Driver’s Education company implementing the machines to get people a semi-real feel of driving before they ever sit behind the wheel of a real automobile. We could also aim for a less involved strategy in which we produce and sell the machines to companies and even the general public to be used for entertainment purposes. This would not be the first of its kind; there are plenty of videogame simulators out there, but with the newest technology in video simulators as well as amusement park ride simulators combined for a very real to life experience we think that we would have found a true niche and could be quit successful.

i) Industry Analysis: The Video game market has always had racing games. They were easy to make and could be mass produced. Until late, video games had neither the feel nor the looks of real life. Games like Gran Turismo have paved the way for real life simulators. Simulators are cheaper than real vehicles costing around 15,000 for the ones that we would like to use. The overall expenses of insurance and normal automotive maintenance do not apply so costs are low except for the initial capital.

ii) Competitor Analysis: Major Video game companies would be one of the biggest competitors; they have more money and more influence than a meager small business but that not really an issue until later when perhaps they might want a piece of the market. The immediate concern is with the Driver’s Education companies. Also if the state does not allow for our machines to be considered driving substitutions then perhaps we will only be an enrichment program or we could still have a real car to meet all the requirements after the person has become accustomed to the road using the simulator.

iii) Since most Driver’s Education is done with teenagers, the parent’s faith in our idea becomes a big concern. We would need to market the fact that unlike traditional Driver’s Education companies we would not just throw the Teenager behind the wheel and expect them to be safe drivers; the fact that we would offer a safe way to get a feel for the road would be reassuring to the parents and likely produce better drivers (which we could always use more of in Southern California)

B. SWOT Analysis

Strengths: The overhead cost would be quite low, considering the cost of a normal vehicle in comparison. It is a creative use of the newest technology available. There are almost endless possibilities.

Weaknesses: Could be difficult to market. New technologies are prone