「Boreas」

Executive Summary​​H​
2​G (#7, HG18), Hiroo Gakuen High SchoolH​
G is a company that will provide an innovative and eco-friendly method of transportation by developing a new type of motorbike that uses many2​
technological features to its advantage. Currently, many countries, especially in Southeast Asia, use motorbikes as their main method oftransportation. For example, Thailand and Vietnam have the two highest prevalence rate of motorbikes in the world, with 87% and 86%,respectively. However, the motorbikes that are currently circulating in the market are the cause of many problems for humans and the environment.
Some of these problems include the emission of harmful gases, traffic jams, and deaths caused by traffic accidents. In 2014, 23% of the greenhousegases emitted in Vietnam came from the transport sector. On top of that, in 2015, 8671 people in Vietnam died because of traffic accidents. Thatmakes traffic accidents the number one cause of death for people from the age of 15 to 19. However, it has been reported that over 30% of thetraffic accidents can be prevented by slowing the motorbike down to around 5%. Traffic jams are also very common in countries that have highprevalence rates of motorbikes, as people rush to their destinations every day. Our new type of transportation, Boreas, takes advantage of developing
forms of technology to resolve these problems. To solve the issue of the emission of greenhouse gases, our product will implement a new form oftechnology that turns wind into energy to fuel the motorbike. We will also implement non-pneumatic tires made entirely from recycled materials.
Furthermore, we will educate customers on traffic laws so that tragic accidents will be prevented. Moreover, by developing a new motorbike-linkablesmartphone application that shows the user how to get to their destination while avoiding traffic, traffic jams will be significantly reduced. Our
company will also have its headquarters in Japan, since Japanese companies have a very good reputation among customers in Southeast Asia. The
product will be assembled in Vietnam, which will be our target nation for the first year. Through marketing and further investment, we will aim toexpand our target area from the third year​​onto other countries like Thailand.

1​. Missions and Goals
H​
G aims to provide an alternative to the existing transportation that emits toxic gases, creates traffic jams, and kills pedestrians as well as drivers.
2​
By providing our product to countries suffering from issues like these, we believe that we can resolve them and enhance the quality of life. To raise
profit, we will be gathering funds from investors. Once the production of our product is on its way, H​2​G will sell the Boreas models to the people ofVietnam. Our main goals are as follows.
1.
Raise funds for our business plan from investors, and return initial funds to investors by the fifth year.
2.
Sell our product to the people of Vietnam for $1500 each. By selling at this value, H​2​G will be able to earn $1207 of profit per unit sold.
3.
Market our product to Vietnam for the first two years, and expand our target in the third year by marketing our product to Thailand.
4.
Decrease the overall emission of greenhouse gases, traffic accidents, and traffic jams.
2. Details on ServiceBoreas is a product that is entirely eco-friendly. The bike’s exoskeleton and frame will all be made out of recycled, renewable materials. Forexample, the majority of the body will be made out of recycled carbon fiber, and the air intakes that collects wind will be made out of flax fiberand resin from plastic bottles. Even the aerodynamic vanes, the seat, and the handlebar will be made of recycled, yet durable materials. The tireconsists of three elements, including an outer band of tread rubber that is supported by plastic spokes anchored to an inner core aluminum wheel.
We use non-pneumatic tires, so customers will be freed at last from the fear of a flat tire or owning an expensive spare. Thanks to these, Boreas
features low bearing capabilities, eco-friendly design, and great driving performance which will differentiates our product to other motorbikes
while inducing benefits to both the user and the environment. For main energy source, we will use wind. The batteries on the motorbikes will act as
air intakes which transports the airflows to the turbines. The turbines are connected to an original alternator; a part that works with a battery togenerate power. This will convert the wind into usable energy. This is an eco-friendly alternative to fossil fuels, as the batteries will rechargeenergy on its own. Thus, our product will emit zero greenhouse gas. This will reduce the risk of climate change, as
well as harmful diseases like respiratory disease. Additionally, our bike will be linked to a smartphone app that will
provide information on mileage and alternative ways to avoid a traffic jam. The app will also notify the driver when
they are exceeding speed limits, which will reduce the violation of traffic regulations, as well as preventing traffic
delay. Furthermore, pamphlets and posters consisting of simple and understandable illustrations will be provided tousers so that they will be re-educated with the rules and tips.​​
To summarize, our product includes the following:
1.
The motorbike will be made out of eco-friendly, recycled materials.
2.
Tires will be customer friendly, free from the annoyance of tire puncture.
3.
The motorbike will work on renewable wind energy, thus greatly contributing to improve the air quality.
4.
Smartphone app will provide necessary information when travelling on the vehicle. It will also
contribute to the reduction of traffic jam.

3. Market/Industry Analysis

Our product, Boreas, is targeted towards individuals in countries like Vietnam, where majority of citizens rely on motorbikes as their source oftransportation. In fact, the prevalence rate of motorbikes in Vietnam is the second highest in the world, with 86%. Motorbike’s licenses areacquirable from the age of 16, making motorbikes a popular method of transportation to school and work. However, obtaining the license in Vietnam
is easy, and the acquisition process does not involve a written test. Because of this, many of the motorbike users in Vietnam are unaware of most of

the traffic laws. This leads to the occurence of traffic accidents, in which thousands of people lose their lives every year. In 2015, there were 8671
confirmed traffic accident deaths in Vietnam. However, we believe that we can reduce this number by over 30%, as we will educate our customers
on traffic laws. We strongly believe that we can achieve this rate of reduction from the reports that prove that 30% of the traffic accidents can beprevented simply by slowing the average speed of travelling vehicles by 5%. The emission of greenhouse gases that advances air pollution andclimate change is also a huge problem that the motorbike industry is facing. It is estimated that over 41,000,000 tons of CO2 was emitted into theatmosphere in 2014 by the transport sector in Vietnam. In the current motorbike industry, a single Japanese company is dominating the market, witha staggering 61%. This company is followed by another Japanese company that holds 22% of the market share. This shows how Japanese companies
have a trustful reputation amongst Vietnam customers. Hence, by placing our headquarters in Japan, we are able to take an advantage of this. Ourproduct has many advantages over other products in the market as explained in the ​Details on Service section, and we believe we can sell 34,500
units by the fifth year.

4. Marketing & Strategy

Our main method of marketing will be through the airing of television commercials. In Vietnam, 99% of households have television sets, andtelevision commercials hold 92% of the market share for advertisement. By airing commercials that show the advantages and superbness of ourproduct, Boreas will gain recognition from a large percentage of the population. Our company plans to air the commercial every other day, which will
cost about ​6,017,275 yen per year. On top of that, we will exhibit our product at motorbike events held in Vietnam such as the Vietnam Motorcycle
Show. This will help the product to gain additional publicity. Moreover, because Facebook is the largest social network service in Vietnam, ourcompany will set up advertisements on Facebook as well. From these marketing methods, our company aims to sell 1,000 motorbikes in Vietnam forthe first year. In the second year, we aim to produce and sell 5,000 motorbikes. From the third year on, we will expand our target area to Thailand,
due to the fact that a massive demand for motorbikes exists, supported by how Thailand has the highest prevalence rate of motorbikes in the world.
Additionally, every year, 600 billion dollars are lost in Vietnam because of traffic accidents and traffic jams. Because our product will be able tocontribute to the well-being of Vietnam as a whole by decreasing this financial loss, as well as decreasing CO2 emission at the same time, ourproduct may gain attention by the Vietnamese government. This will help our product gain further recognition, which will smoothen the process ofexpanding our target area.

5. Management

In order to start manufacturing our product, H2G will need employees that assemble and distribute the products. For this, we will employ local
citizens to work in our factories. To educate them on how to accurately produce and distribute our product, we will hire engineers in Japan to travel
to Vietnam. These engineers will have a great deal of knowledge on the construction of our product. H2G also plans to partner with leadingorganizations of technology that will be implemented in our product, so that we can educate our engineers on how to handle the technology. To obtainthe knowledge of the creation of airless tires, we will partner with Bridgestone®. To gain the knowledge ofbatteries that recharge with wind power, we will collaborate with MIT. On top of that, to make oureducation on traffic laws precise, we will cooperate with the Ministry of Transport of Vietnam and theGlobal Road Safety Partnership.
-6. FinanceAll calculations were made with the exchange rate of 1JPY=100USD.
We expect the company to be able to start gaining profit from the third year, and will be able to finish
repaying the funding by the fifth year.
“Other Expenses” include costs for putting together minor parts of the motorcycle, development funds,and transportation funds.
We assume the growth in these South-East Asian countries and thus also assume the growth of demands
for motorcycles in such area, hence we expect an increase in the number of units expected to be soldeach year.
We intend to spread our service to other countries in the area, starting with Thailand in the third year.
Income tax has been calculated according to Japanese tax laws

7. Conclusion

Boreas is a revolutionary product for people living in countries like Vietnam where the annoyance of traffic jams and tragic traffic accidents arecommon. Furthermore, the most notable effect of Boreas, which is to improve air quality, will greatly contribute to the society by decreasing
respiratory diseases and greenhouse gas. Thus, every unit of our product sold will improve the situation of the environment while benefiting
consumers themselves, since the burden of refueling will vanish, and the number of traffic accidents and traffic jams will decrease. Although thissounds too superb to be true, it is entirely achievable and profitable. In fact, by marketing our product to customers through television commercials,
motorcycle shows, and Facebook ads, we will be able to gain profit by the third year.
Although Boreas is a highly profitable product, initial investment is crucial. To improve the lives of the people living in our target nations, to protect
precious lives, and to save the world from the threat of climate change, H​2​G strongly urges and pleads investors to invest in us. By doing so, theinvestors are investing to the bright future that the Boreas will be able to provide. We aim to give luxury to the consumer, to change the meaning oftransportation whilst saving the world one ride at a time.

Citation

https://www.technologyreview.com/s/411274/a-design-for-cheaper-wind-power/
http://scienceblogs.com/dotphysics/2009/05/05/energy-and-charging-an-electric-motorcycle/
https://www.viet-jo.com/news/economy/160613071613.html
https://www.bridgestonetire.com/tread-and-trend/tire-talk/airless-concept-tires
https://www.wired.com/2009/05/recycled-racer