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Technology has revolutionized most aspects of modern life. In this revolution of technology, achieving various targets has been made easier. For example, aerial recording of the earth had to be done using helicopters and which made aerial recording difficult due to the high cost of hiring helicopters. Drones have, however, come to revolutionize this activity by providing a cheaper option to take aerial shots even better. For the military, drones have come in to help them conduct investigations secretly and launch attacks on enemies without from the air without risking lives. The drone navigation system has, therefore, made aerial navigation for simple goals easy, cheap, and more effective. The company VectorCal has been providing these services at a high cost due to various reasons. The high cost has resulted in drone navigation not being utilized to the maximum level. This reason has necessitated the formation of Universal Drones Inc. to enter the market and make drone navigation more affordable.

The company was formed with the main mission being to increase the use of drone navigation and by considering the economic status of the smallest likely drone user. The vision of Universal Drone Inc. is to have drone being used widely for simple day to day use of aspects of life. For this company to meet this goal, it will need to increase the supply of drones in the market also improve the provision of repair services for drones, and at the same time, increase the availability of spare parts for drones. In line with the vision to have drones being used for simple day to day life, the company target client base is wide. However, the main target market for the company is the growing number of online content producers on platforms such as YouTube and Patreon. Individuals who produce traveling content on these platforms can use drone navigation to provide their audience with different perspectives of a particular area. Another target client base is the law enforcers who can be using drone navigation to conducts raid assessments as they plan for actual raids. The last target client base is the normal day to day travelers who intend on recording their experiences in the best way. Through training, this client base can form a huge market for the company.

VectoCal has monopolized the drone market, and its product prices are high. The company uses a demand-based pricing approach due to its monopoly status. Therefore, due to the high demand for its products, which surpasses the supply, the company increases the prices for its products for more profits (Alkhatib 6). This pricing method has discouraged the use of drone navigation by many people. To change this, Universal Drones Inc. will apply the cost-based pricing of cost-plus pricing. This will come in handy to help the company forecast the prices of its products in an effective manner that will allow the consumers to be protected from inconsistent pricing (Patrutiu-Baltes 61). Also, competition-based pricing can help the company meet its goals by comparing the prices of competitors to those that the company is using and charging a bit lower prices in order to attract clients (Morgan 20). These two pricing approaches will help the company not only beat the competition but also make the products more affordable.

The different costs that Universal Drones Inc. can deal with in the first year of operations include semi-variable costs, which include power consumption in the production process. This is a mixed cost that is made up of fixed and variable costs, which can change with changes in production levels (Alkhatib 6). Indirect costs can include the costs for administration and personnel and security costs that can vary, and they are not fixed. These can include rent and utilities.

In conclusion, the drone navigation market is big, and it can increase once several aspects are considered about the market. There is a need for proper pricing in order to increase the use of drones through the use of proper pricing methods that consider the right aspects. Universal Drones Inc., through its mission and vision, can help in attaining this goal.

Works Cited

Alkhatib, Nimer S., et al. "Pricing methods in outcome-based contracting: δ3: reference-based pricing." Journal of medical economics (2020): 1-7.

Morgan, Neil A., et al. "Research in marketing strategy." Journal of the Academy of Marketing Science 47.1 (2019): 4-29.

Patrutiu-Baltes, Loredana. "Inbound Marketing-the most important digital marketing strategy." Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V 9.2 (2016): 61.