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Section A

Executive Summary—provides a brief synopsis of the key points and strengths included in
the plan. This, plus the Mission Statement, Motto, Logo, etc. convinces the reader to read the
rest of the report.

The main mission of the VR-MD company is to introduce and facilitate a contemporary VR
service which combines home fitness, prevention-training as well as physiotherapy. The main
objective of VR-Physio is to make home physio workouts to be easy fun and effective.
VR-MD has the vision of providing a comprehensive physiotherapy solution based on VR
that is designed to ensure optimal training for the entire human body. It aims to ensure that
everyone in need of physiotherapy would be able to receive fast, affordable and effective
treatment using the most affianced technology in the world of physiotherapy in Malaysia.

1.0 Company Description

In this part of the business plan, there will be a discussion about the basic details relating to
the proposed business relating to VR in medicine. There will be an overview of the business,
its location, as well as its legal structure and organization.

1.1 Overview of the Business and Product


The VR-MD company specialized in the creation of virtual reality (VR) products for use
in the medical industry. The VR-MD company is a specialist in the VR field and has a
wealth knowledge and experience in VR and medicine. It has accumulated a vast among
of experience from its 20 years of experience in the industry. The company has a very
effective and flexible research and development (R&D) function which plays a very
important role in ensuring that VR-MD is able to come up with winning VR products.
It is proposing to introduce a new and state of at art medical device known as VR-Physio. In
essence, this device involves the combining of virtual reality technology with and
physiotherapy. The VR-Physio device operated based on the principles of virtual reality. It is
comprised of a high quality head-set that incorporates weights and biosensors, as well as an
application (app) that can be downloaded into a table or a smart phone. This app would
constantly record the user’s biofeedback information and would guide him or her to the
correct physical exercises while the user would be engrossed with the VR game. The
company intends to launch this patent-pending device which is set to revolutionize the
Malaysian physiotherapy industry.
The company aims to introduce and facilitate a contemporary VR service which combines
home fitness, prevention-training as well as physiotherapy. This is a very special and
creative physiotherapy solution which would be the first of its kind in Malaysia. The main
objective of VR-Physio is to make home physio workouts to be easy fun and effective. It
is able to provide the users with the real time feedback, and this includes biofeedback that
is able to be accessed by the physiotherapist and the also the user.
VR-MD aims to achieve dominance of the Malaysian market in the coming years through its
VR-Physio device which would eventually be able to provide comprehensive physiotherapy
related training for all parts of the human body. Using advanced technology and effective
management techniques, VR-MD aims to make the VR-Physio device to be easily available,
cost effective, value adding, comfortable and pleasant to use. It would be a perfect
replacement for a gym workout for both healthy people and more importantly, injured people
who are on the road to recovery. When introduced in Malaysia, VR-Physio would cater for
those people in hospital who undergoing physiotherapy treatment. Over time, the company
aims to make its product available to practically anyone who wants to perform physio-
therapy at home. In essence, the VR-Physio device is meant to supplement and assist with the
process of healing by making it easier and much more efficient.
The VR-Physio device is made to be very easily accessible, exciting and most of all, it is
easy to use to use. It is aimed at improving the patient’s physiotherapy treatment and
ensure a faster and speedier recovery. This would be a high end device which is one of its
kind in Malaysia. It aims to enhance the process of physiotherapy in every way, hence
improving the successful outcomes of patients undergoing physiotherapy in Malaysia.
The device would feature new hardware and software which would help in the process of
targeted injury recovery, as well as to facilitate preventative workouts using very
interactive and enjoyable virtual gaming.
The VR-Physio device would exhibit comprehensive headgear as well as a variety of
body sensors which are designed to monitor the movement of the human body, while the
body’s measurements are closely monitored by biofeedback sensors. VR-Physio is a very
flexible device in that it is able to sense what the human body is presently experiencing
and based on these changes, constant improvements and enhancements can be
encouraged.
The VR-Physio device is very dynamic and this means that anyone is capable of using the
VR-Physio device, regardless of age or location. As an added bonus, VR-Physio device can
be used online and friends are able to use the device on the internet with each other no matter
which part of Malaysia or the world they are located. This feature of the VR-Physio device
also allows healthcare professional to closely and effectively monitor the physiotherapy
workout of the patient. This can be said to be a game changer in physiotherapy in Malaysia.

The device is muscle rehabilitation and strengthening device that allows for a full body
workout. The product is a combination of hardware and software offering a holistic user
experience throughout the whole training session, as well as precise data collection and
analysis capabilities using advanced biofeedback sensors. By monitoring sensors such as
HRV, GSR, EMG and EEG data in real time the training session and overall plan is
updated to perfectly match the user’s physical ability and needs.
The device is constructed around a head gear and VR goggles to which a set of varying
weight weights are attached according to the planned training session as instructed by
the software. The head gear is constructed of a series of padded support straps which
secure the goggles and weight connection spots to the user’s head. The straps are
constructed of a flexible plastic material (polypropylene) and padded at different
locations around the user’s head with microfiber fabric / silicone. The straps secure the
plastic goggles housing to the user’s face allowing for the insertion of a smartphone into
a fixed position approximately 80mm from the user’s eyes. Glass lenses are placed
between the phone’s screen and the eyes of the user and can be adjusted (focused) by a
set of dials placed on the outside of the device. The weights attached to specific pre-
defined spots and can be easily attached and detached via a magnetic locking system.
Each weight has a neodymium magnet embedded into it and it’s attached to a steel spot
on the head gear, guiding it into a locking spot. The weights are made of have a
neodymium magnet covered in lead and covered in a silicone / fabric housing. Each
weight has a different value varying from 100 grams to 300 grams.
1.2 Location of the Business
The company is proposed to establish itself in Malaysia quiet extensively. VR-MD aims
to have a presence in large and urbanized Malaysian cities. The main headquarters of the
company would be established in the capital city of Malaysia, which is Kuala Lumpur.
There would also be a number of branches of the company established in the greater part
of Kuala Lumpur, within the state of Selangor. These branches would be strategically
located in close proximity to private and government hospitals so as to allow for ease of
access and more effective marketing capabilities. Besides that, VR-MD would also
establish branches in other cities in Malaysia, namely in George Town, Ipoh, Melaka City
and Johor Bharu. These cities are chosen because of the high number of hospitals and
medical institutions.
1.3 Legal Structure and Organization
The VR-MD company would be established as a private limited company (Sdn. Bhd.).
The company would be registered in Malaysia as a local company and would be governed
by Malaysian laws. The company would comprise of the Chairman who is also one of the
co-founders of VR-MD. There are 5 members of the board of directors and there would
be a branch manager appointed for each of the branch offices of the company in
Malaysia.
3.0 Industry Analysis
In this part, there will be a discussion about matters relating to industry analysis. There will
be an outline of the larger industry to this particular business would belong. In essence, there
will be an analysis of the main trends within the industry. The external business conditions of
importance are discussed here.

3.1 Main Trends in the Industry

A very important observation that is made with regards to this business is that the VR-MD
company is riding high on the most important trends which is sweeping across the world and
in Malaysia too, and this is the virtual reality trend. The global VR industry is developing fast
and an increasing number of industries are turning to VR technologies in order to enhance its
performance and abilities. One of these is the medical industry, which is an industry that has
benefitted a lot from VR in terms of increased efficiency and effectiveness of delivery of
medical services. VR has also resulted in greater success rates of treatment in the industry,
and thereby better satisfaction on part of the patients. The Malaysia medical industry is also
starting to enjoy the benefits of VR and although not widely present, VR has made an entry
into the industry and is starting to become a game changer.

The Malaysia medical VR industry is relatively new and far from saturated. There are not
enough companies in the industry who are able to supply the VR devices needed to meet the
increasing demand in the medical industry. This means there is an increasing need that is yet
to be properly satisfied by the existing players in the industry. Therefore, it can be said here
that the overall potential in VR in the Malaysian medical industry is very huge and a
company like VR-MD would achieve great success if they are able to make an entry and
compete within the industry. The figure below shows the growth of the VR market:

Figure 1: Growth of the VR market

The next trend of importance in the industry is the prevalence of neck injuries together with
the lack of availability of a fast and efficient recovery method. In many parts of the world,
including Malaysia, a very common insurance claim involves car accidents involving
whiplash. This results in the driver or passenger experiencing neck trauma which would
usually require physiotherapy in serious cases. Also, with the increasing digitalization of
Malaysia, an increasing number of Malaysians are spending excessively long hours in front
of their computers, smartphones and tablets, hence resulting in bad posture as well as an
increasing risk of neck injuries. In both these cases, the use of an effective method to
facilitate smart and easy physiotherapy would be welcomed and would bring greater
convenience to people. By using virtual reality technologies, it would be easy for a solution
to be provided to these people.
With regards to the main players in the industry, there are only a small number of
organizations with the industry. These main players are small in size and their products are
designed in a way that caters effectively to physiotherapy in a virtual reality environment.
The products offered by these main players are very simple and they do not cater very
comprehensively to all the needs of the consumers in Malaysia. Hence, VR-MD has a very
good chance of establishing itself successfully in the Malaysian market and to become very
competitive and to be able to get a huge share of the market. Essentially speaking, the
competition in the industry can be classified into two categories and these are competitors in
the virtual reality category and the physiotherapy accessories category.
There are a number of key success factors that are able to help the main players in the
industry to develop an and sustain a competitive advantage. In essence, the competitive
advantage of the main players in the industry can be acquired through a special combination
of the use of cost effective hardware and software, a device that is designed to be easy to use
and compatible with smartphone technologies and a device that is fast and easy to use.
Besides that, other attributes that can help create a competitive advantage in the industry is
the ability of the device to allow of close follow-up by physiotherapists, a device that can be
used at home without the patient having to go to a clinic and a device that has a proven
training method.
The physiotherapy industry in Malaysia is billion-dollar industry that is constantly growing.
The projections show that this industry is likely to continue to grow in the years to come,
hence making it a fertile industry to invest in. One of the main reasons for the increasing
growth of the industry is due to a number of factors and these include the increasingly ageing
population of Malaysia, the increasing incidence of sports injuries among sportsmen in
Malaysia and also the increasing level of awareness with regards to the importance of
therapeutic applications of physiotherapy. There are also a number of healthcare reforms
across Malaysia that increase the demand for equipotent to facilitate physiotherapists.
3.0 Market Analysis

In this part, there will be a brief overview provided about the nature and accessibility of the
main target market. There will be a comprehensive analysis of the main competitors in the
market. There will also be a discussion of the main strengths and weaknesses of the business.

3.1 Nature and Accessibility of the Target Market


The main target market of VR-MD is the healthcare organizations and individuals who
require physiotherapy accessories in order to help with the process of recovery or
improvement of physical health and wellbeing. In essence, there are two main categories
of consumers who will be targeted by the company and these are consumers who are
interested in the prevention of trauma by building much stronger muscles and consumers
who require assistance in being able to recover from a trauma by taking part in physical
exercises with the aim of slowly building much better motion abilities.
Although the VR-Physio device is designed to be able to provide physiotherapy to all
parts of the human body, such as the neck, back, arms and legs, however, the main target
market strategy would be to focus on the neck problems which are very commonplace
among Malaysians. There are a number of reasons why the company has decided to focus
on customers requiring neck related physiotherapy. The first reason is that by focusing on
the neck, it is possible to make the device easy to use and operate. The number of sensors
used in the device can be reduced and the app can also be made less complicated to use
by a novice user. Secondly, it would also make the Ministry of Health’s approval process
much more simplified and straightforward, as the device is only designed to provide
treatment to the neck. The next reason for designing the device to cater for the neck
region only is that is lowers the risk of device failures. Besides that, such a target market
focus also ensures that all the members of the targets market are very easily visible and it
allows the company to market in a much more focused way. Also, this can be said to be a
niche market and this translates to mean a lower number of competitors
In essence, the VR-Physio device is fashioned specifically for the end user, who in this
case is a patient who is either in pain due to a neck related injury or who wants to prevent
themselves from being inflicted with such an injury in the first place. In looking at the
Malaysian market, the following can be said to be the main target market:
 Individual patients
 Physiotherapists
 Hospitals/Clinics
 Sporting Institutions
 Private health companies
 Government agencies (Police, Military etc.)
3.2 Main Competitors in the Market
There will be a discussion of the main competitors in the market.
Before discussing the main competitors, it is useful to discuss the main offering of the
VR-MD company so that companies offering the same or similar products can be
identified. Essentially speaking, virtual reality products that are based on smartphone
technology are capable of capturing the interest of the target market very fast. This is
dependent on the app as well as the sensors that are used by the device. It is interesting to
note that the VR products which are "stand alone" tech can be used for physiotherapy-
related purposes. However, these involve very significantly high costs. Much of the
competitor products that are in the market presently are said to range from rubber bands
to laser beams that are able to perform physiotherapy designed to reduce pain. Judging
from the market, it is observed that the level of competition for these kinds of solutions is
not very strong.
In Malaysia, it is observed that the companies which are able to creatively combine
virtual reality principles and physiotherapy are few and they are usually known to very
large and bulky equipment to clinics and hospitals. These devices are inconvenient to use,
they are immobile and they average costs of operating these devices are very high. The
most significant drawback is that the patients are unable to use them on their own.
On the basis of the above analysis, it is observed that the highest level of competition
would come from virtual reality healthcare companies or the virtual reality gaming
companies. The analysis shows that a majority of the companies which combine virtual
reality and healthcare are aimed to a specific category and this means that it might be
unlikely for it these companies to venture into the provide virtual reality based
physiotherapy devices. In particular, it is not easy for the companies in the gaming
industry to allocate the necessary technical resources that are required to start competing
in this new market which is not as attractive for them. There are three main competitors
which are discussed below.
The first is Mind-maze. This is a company that has recently started gaining more market
share in the Malaysian medical supplier industry. It has an innovative line of products that
consist of a combination of devices and roboticists that are aimed at improving the quality
of life of patients who have experienced brain injuries in the past. The company has
successfully created and launched a number of medical-related VR products which are
meant to stimulate neural recovery within the hospital setting.
The second competitor that will be discussed here is Psious. Essentially speaking, this
company’s platform provides all the main advantages of VR technologies very fast and
effectively, also using smartphones and 3D goggles. In contrast to Mind-maze, the
products of Psious do not require the use of very expensive and complex equipment or
very excessive investments. The products that are offered by this company are
straightforward and easy to use. They do not require very elaborate professional
installation or a lot of technical expertise to operate. The products of this company are
designed by a group of psychologists and their products are created as a supplementary
tool to assist patients to be able to effectively manage all the various difficulties that are
the consequence of being exposed to physiotherapy.

The third competitor here is known as Deep Stream and this is said to be one of the
market leaders in the sphere of virtual reality for the healthcare industry. It is one of the
pioneers in the sphere of virtual reality healthcare and it is known to use the virtual
reality’s high bandwidth channel connected to the human brain and senses with the aim of
boosting the patient’s mental and physical health and wellbeing.

Figure 2: Critical competitors of VR-Physio


Section B

Marketing Plan and Sales Strategy

In this part, there will be a discussion about how the VR-Physio product would be marketed.
The discussion would include a combination of strategic and tactical elements pertaining to
the sales and marketing and sales approach which would be used by the company.

Go-to-Market Strategy
Research shows that a paying customer would vary. The chain of need is observed to
commence from the ‘end’ customers, who consists of the patients who are in pain,
through the private physiotherapists and clinics/hospitals. These methods are known to be
post-trauma in nature. Besides this, it is understood that there also exists the option to
market the VR-Physio device to companies who want to prevent neck-related problems
among its employees and these can include firms form the private and government sector.
On the basis of research done, it is believed here that the best strategy would be to focus
mostly on private physiotherapists or clinics as it would be the easiest to market to all of
them.
Customer relationship management and after-sales services would be a very important
part of the marketing strategy of VR-MD. The company wants to create very strong and
close relationships between the patients and physiotherapists. After the sales is made, the
company would ensure that it provides full follow up services, training and customized
solution in order to ensure that all the needs and requirements of the patients are satisfied.
Effective after sales is an element that differentiates VR-Physio from the competitor
products that are presented being marketed. The company’s social media and official
website would play a very important role in providing this after sales service and to
ensure close relationships between the company and its customers.

Marketing Strategy

The marketing strategy which will be used by VR-MD comprise of the use of direct and
indirect strategy. These are explained below.
With regards to the direct strategy, this would involve the company taking part in direct
advertising to the customers. There are a number of ways that can be used by VR-MD to
advertise its device directly to its customers and these would include advertising on the
television, radio, newspapers, billboards and medical publications. Besides that, other such
initiatives that can be taken by VR-MD include attending trade shows to promote its products
very comprehensively. This would allow for the fast and effective introduction of the
product. It would also create a higher level of industry awareness with regards to the new
product. More importantly, VR-MD would launch a very aggressive online marketing
campaign that is focused on its social medial in particular. The company would create a very
comprehensive and highly targeted social media strategy which would allow it to establish a
strong brand name in the Malaysian market. It is also likely to provide a very high level of
exposure to the brand and increase the brand awareness among the target market. All these
strategies are likely to bring positive results if they are integrated into one unified strategy
and the best way to do this is to use the integrated marketing communication strategy (IMC)
to guide its marketing activities. By using the IMC, VR-MD would be able to create a very
effective, strategic and consistent advertising message that would be sent out from all these
platforms. This would result in maximum effect and exposure to the target market, hence
resulting in the widest and most effective marketing campaign possible. Such an extensive
level of marketing exposure with efficient follow-up would be likely to create a very high
level of industry demand.
The indirect strategy involves a set of initiatives that are designed to supplement the direct
initiatives that are discussed above. VR-MD would take steps to use sales representativeness,
distributors, wholesalers as well as retailers that would be located in many important
locations around Malaysia, especially in large cities. These indirect marketing channels must
be strategically used and they must be provided with comprehensive product information and
effective training so that these representatives would be able to marketing effectively on
behalf of VR-MD. To help with this, a number of specially created marketing and sales
videos and tutorials would be prepared and provided to these indirect agencies so that they
would be equipped with the competencies required to market effectively to the target market
and to ensure the highest possible level of success. VR-MD would ensure the use of very
creative and innovative agent training programs and also compensation/remuneration
packages in order to motivate their indirect sales teams across Malaysia.
Production and Distribution
Matters relating to production and distribution are now discussed. As noted before in this
plan, the corporate headquarters would be located in Kuala Lumpur and it is here that the
main production and distribution would take place. The first 8 months would be spent
properly organizing the company’s information management library for the purposes of
immediate and direct access to various product designs. The company plans on expanding
would likely to have a presence in most of the main cities in Malaysia within the first two
years of operations. Once all the branches are established, they will be equipped with
distribution centers. The main production would continue to be at Kuala Lumpur and the
branches around Malaysia would only serve as distribution outlets. There are a number of
ways by which customers are able to make an order for the VR-Physio device and these
include using the official agents and distributors located all around the country or ordering
directly from the company’s online store which would be featured on its website and the
social media outlets.
Management Team and Organization Structure

In this part of the business plan, there will be a discussion about the main participants in this
business venture. The main human resources (HR) of the business would be discussed as part
of the management team who would have a very important role in the process of business
development at the company. There will also be a discussion of compensation and incentives,
as well as the process of decision-making at the organization.

Executive Team

The executive team at VR-MD comprises of 5 people having vast expertise and experience in
the industry. They make up the main members of the Board of Directors of the company and
their profiles are provided below.

Mark Stevens
Mark is a board members of VR-MD and he is one of the main founders of this company.
He has a lot of experience within the field of physiotherapy and injury prevention. He has
worked extensively in the field of damage prevention and it also well acquainted with the
sphere of virtual reality. He has a Bachelor’s Degree in Business Management, and a
Masters of Business Administration (MBA) in Entrepreneurship.
Lance Stevens
Lance is the co-founder of VR-MD and he plays a very important role in the creation of
its winning product, VR-Physio. He has around 18 years of experience working in the
field of physiotherapy. He has also served as a physiotherapy consultant in a variety of
government related medical organizations. He has a degree in physiotherapy department
and specializes in orthopaedic rehabilitation as well as pain treatment. He has a Master’s
degree in Healthcare Administration. Lance has also attended professional training in
virtual reality and has a wealth of knowledge about this subject.
Ahmed Alias
Ahmad is a Malaysian born entrepreneur who has a wealth of experience in virtual
reality. He has a lot of experience working in the field of virtual reality overseas, in the
US. He also has a lot of experience as a designer and technologist. He is known for his
innovation and creativity in fusing different technologies to create a winning product. He
has a degree in Mechatronics from the University of Bristol in UK. He has also worked
for a number of different consultancy firms in the UK and Malaysia.
Hiroshi Kagawa
Hiroshi is a Japanese born management expert who has a great amount of experience in
the sphere of projects management and virtual reality. He was educated in Japan and has a
Degree in Business Management, a Master’s Degree in Project Management and a PhD in
Creative Technologies. He has vast experience working as a project manager in Japan and
also a virtual reality consultant in Singapore based consultancy firm.
Muhammad Rahman
Muhammad is a Malaysian born entrepreneur who graduated from the University of
Malaysia with a Degree in Business Management. He also has quite a lot of knowledge
about virtual reality in business. He worked for a number of healthcare organizations in
Malaysia, where he obtained a lot of knowledge about spinal cord and neck damage
prevention using physiotherapy.

Management Team

The management team of VR-MD are comprised of very well educated, very specialized and
highly experienced people in the sphere of virtual reality. They all have vast experience
especially in the sphere of computer-aided design technologies and virtual reality. Below is
the brief information about the main management team:

General Manager
The general manager at VR-MD would have the responsibility to establish the company and
also design the creation of its facilities. The general manager would also have the
responsibilities to implement various marketing and sales related activities. They would also
have the responsibilities to carry out comprehensive research and design development.

Technical Operations Manager


At this company, the technical operations manager has a very important and integral role in
carrying out various operations related activities at the company. In essence, this person
would have the role of helping in the process of researching, designing/developing and the
production control of the VR-Physio device.

The Senior Engineer


The job of the senior engineer would be to make very important product design related
recommendations. The senior engineer would also have the duties of maintaining and
upgrading the products and also the equipment used in the production factors. Also, the
senior engineer would help in the designing and production of the manufacturing facilities.

The Administrative Assistant


The job of the administrative assistant at VR-MD is a very important one and it would
typically involve setting up of database programs which are used for the purposes of carrying
out activities relating to accounting and sales and also the distribution of the VR-Physio
devices in Malaysia. The administrative assistant would also have a very essential role of
maintain efficient customer relationships.

Compensation and Incentives

Compensation and incentives is a very important part of the management strategy. The
compensation strategy that would be used at VR-MD must be comprehensive enough to
ensure that it is able to bring out the best from the organizational members. At this company,
the compensation and incentives package would be comprised of a balance between financial
and non-financial incentives. With regards to financial incentives, the management would
provide compensation in the form of attractive base salaries together with extra benefits, like
health insurance, performance bonuses as well as retirement plans. Profits -sharing plans are
also a very effective financial compensation factor for employees. The non-financial
incentives would include the providing of health insurance, flexi-time, telecommuting options
and also greater promotional opportunities. This compensation and incentive plan is meant to
provide better satisfaction to the employees and also to motivate them to exhibit a better
quality work output. It is proven by research that an effective and comprehensive incentive
and remuneration package does have the outcome of improving the employee’s
performances. The fact is that most employees would become motivated to work in ways that
would help bring greater success to VR-MD if their employer provide them with attractive
remunerations. Because rewards and incentives have the greater positive effect on the
productivity and performance of employees, therefore, VR-MD would ensure that the
compensation strategy is aligned directly with the performance of the employees. This would
ensure that employees strive to achieve high performance levels in an effort to earn better
rewards.

Decision-Making at VR-MD

With regards to decision making at the organization, there will be an initiative taken in order
to ensure maximum participation in decision making by all members of the organization.
Essentially speaking, the participative decision making style involves organizational leaders
inviting input from all the members of the organization when it comes to making important
decisions. Such a decision making style ensures that all the members of VR-MD are provided
with relevant and pertinent information about different company-related matters and the
majority vote is what would determine the maim course of action which the company would
take. Although this kind of decision making is slower than other decision-making styles, it
has many benefits which the VR-MD can enjoy.
Firstly, the participative style of decision making would ensure that the employees at VR-MD
would be much more willing and ready to accept the different policies and decisions which
are being implemented by a general consensus. This would have the effect of lowering the
level of resistance which might come about when new organization-wide policies are
implemented. The employees of VR-MD would be give a personal stake in how the new
policies are implemented and they would jointly share the success of these policies. It would
also make the process of changing these policies to be easier in the future.
The use of participative decision making at VR-MD also helps provide the employees with a
voice in how the organization carries out its operations. The employees would start to feel
personally liable for the success of the VR-MD company and as such, they would have a
greater level of morale. Because they are given a chance to engage in the process of decision-
making, they would start taking an active role in the company’s operations and they would
also strive towards improving the company’s work conditions as they know that they are able
to affect the organizational policies.
Another benefit which can be enjoyed by VR-MD by using the participative decision making
style is that it would result in better creativity. By encouraging the employees to provide their
input, views and opinions about company-related issues, it is likely for various solutions to be
proposed by the employees. This allows the organization to benefit from all kinds of
solutions which these employees might come up with and it can even include suggestions of
new future winning VR products. The fact is that participative decision making would
empower the employees to be able to use all their creativity to create better work-related
processes and to enhance the efficiency of the company.
Long-Term Development Plan

This part of the business plan would provide a clear vision about where VR-MD would be in
the next 5 years. There would be a comprehensive evaluation about its potential for success
and failure. There will be an identification of various priorities for the purposes of directing
future business-related activities

Potential for Success


In the next 5 years, it is likely that VR-MD would have grown stronger and become more
profitable. The potential for success of the company is immense and is reliant on its dynamic
and comprehensive business model. It is very difficult for VR-MD to fail because it has a
strong business model that is based upon many different revenue channels that are capable of
being worked in a simultaneous way. VR-MD is known to carry out a very comprehensive
evaluation of its revenue channel individually and the output it receives is able to allow it to
determine the channels are the most advantageous and which are not. The revenue channels
which are profitable would be enhanced and nurtured while the ones that are not doing well
would be removed to ensure that they do not hamper the progress of the company in the
future.
Another very important part of ensuring success of the business is to carry out risks
assessments frequently in order to identify risks and implement steps to mitigate and
overcome these risks. One of the main risks which must be given attention to is the risks
relating to clinical safety. VR-Physio is a healthcare device and like most such devices, there
needs to be very close attention provided to the issues relating to safety and regulations. VR-
MD must ensure that they are able to ensure clinical efficiency of their product and they must
also ensure that they constantly are in compliance with various safety demands and
regulations in Malaysia, both concerning the VR-Physio device and the use of the device in
question.
It is understood that because physiotherapists do not usually monitor the movements of the
patient during exercise, there is always a chance of there being physical damage done to the
patients if they were to make a wrong movement, and this is especially so when it comes to
patients who have with existing neck injuries. If measures are not taken to ensure that this
does not take place, then problems might arise in relation to the safety of its use. This can
increase the risk of the company being used for injury caused by the device. Such a damage
to reputation can be very costly to VR-MD and result in it not being successful. Hence, this is
a risk that must be managed to ensure maximum success of the VR-Physio product.
There can also be problems relating to customer adoption of the VR-Physio device. Positive
customer adoption would ensure the success of the product while low customer adoption can
result in the product failing. It must be understood that even if the product is proven to be
safe and effective in treating neck problems, it must be recognized that there can still be a risk
of the customers not wanting to adopt the device and this can be due to many different
reasons. These reasons can include the reluctance on part of the physiotherapist to
recommend such a device to patients, the reluctance of the patients to use or recommend the
product due to a lack of trust, price-related issues, unappealing software or side effects such
as vertigo/nausea due to its use. All these factors need to be taken into account by VR-MD
and steps must be taken to ensure that these factors do to compromise the performance of its
VR-Physio product, and therefore its future success.
Directing Future Business-related Activities

It is very important for VR-MD to make an initiative to direct its future business related
activities in the most efficient and strategic manner possible. For example, after 5 years of
marketing VR-Physio, a competitor enters the industry and starts offering the same product at
lower prices in order to win greater market share in the industry. If VR-MD does not take any
measures to direct its future business in a strategic way and does not implement any product
diversification, then it would find itself becoming very uncompetitive and start experiencing
slower growth. Therefore, there is a need for VR-MD to take part in comprehensive strategic
planning to ensure that it would continue to enjoy success within the Malaysian market.

Essentially speaking, the process of strategic planning would help provide VR-MD with a
very comprehensive road map that would help the business to continue to achieve progress in
the future. This means that even though the VR-MD device would be successful when
introduced into the market, VR-MD would continue to find ways and means to achieve better
success for the long term. It is these kinds of long-term strategic planning that would help
VR-MD to come up with strategies to ensure that its product line continues to be flexible and
dynamic so as to face all the challenges that might come about in the market.
In addition to long term planning, VR-MD would also ensure that it is able to align short-
term objectives in the strategic plan which feature its long term goals. It is this kind of
syncing which would allow VR-MD to take incremental steps which allow proceeding into a
very clear and precise strategic direction. It is very important to be specific with these short
term objectives and by being very specific, VR-MD would be able to assess their progress
more effectively.
Besides taking part in long term and short term strategic planning, it is also very important
for VR-MD to take part in continuous product diversification. As stated before, it is not
enough for VR-MD to create a winning product and solely rely on it to bring the success into
the future. This is because new competitors would introduce competition products and this
would make VR-MD lose its competitive edge. As such, it is very important that VR-MD
take part in continuous diversification so that it will be able to ensure that its product line
does not become redundant and obsolete. By implementing effective diversification, VR-MD
would ensure continued success by ensuring a dynamic and vibrant product line that is
constantly evolving to meet the ever changing needs and requirements of its customers.
Financial Projections

In this section, the financial projections would be provided. The accounting methodology that
would be used to be used by VR-MD would be discussed. There will be a discussion of the
assumptions made in projecting the future financial results.

Assumptions
VR-Physio comprises of a headset and also a complementary state of the art body sensor
which would be sold as a separate item. All of the manufacturing and distribution would be
outsourced, and the distributor share would be assumed to be 50%.
Cash Flow
Valuation

Valuation Assumptions:

Sensitivity Checks:

The enterprise is more pricing sensitive then sale amounts sensitive, we shell
demonstrate this using a 20% decrease in pricing and in amount of sales and show
how it effects valuation. In case of sales amount being 20% less than anticipated:

Indicating a 26% decrease in value

In case of prices being 20% less than anticipated:

Indicating a 60% decrease in value.

Funding Requirements
After we examine the financial forecast, and in order to penetrate the market, there is a
need of proof of concept to demonstrating significant physiological improvement using
virtual reality workout.
The development process is at its final stages. We have a prototype of the device and we
wish to demonstrate the utility of our product on 100 clinical cases. It will be made by
user testing on 100 users clinically proving neck muscle power and range of motion
increasing after VRP workout. To that end, we plan to raise $450K in the upcoming
summer so that we could manufacture the first batch of devices. Completing this stage,
we will also be a able to improve the virtual reality technology if needed.

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