The competition within the drone navigation systems industry depends on the number of clients and on the effective tools to forecast the costs in order to cover the company’s needs and develop a competitive strategy effectively. Navigation Tech Solutions is a start-up company in the industry that aims to compete with VectorCal as the industry’s leader. In order to discuss the potential of Navigation Tech Solutions, it is important to focus on the company’s mission and statement, on the used forecasting methods, and on the expected indirect and semi-variable costs. Description of Navigation Tech Solutions as a Start-up Company Navigation Tech Solutions is a company that is oriented to providing cost-efficient navigation solutions for a variety of large and small companies within the public and private sectors. Thus, the product of the company is the cost-efficient navigation software for drones of different types, depending on the drone characteristics and purposes (Shim & Siegel, 2009, p. 38). In this context, the company’s mission is to provide clients with the quickest and most efficient technological solutions to navigate and support drones that are used in a variety of industries. The vision of Navigation Tech Solutions is to become a leader in the public and private sectors of the drone navigation systems industry while focusing on the provision of the appropriate and on-going support for the clients. The target clients are such private sector companies as Amazon and eBay, which plan to launch the delivery with the help of drones and the U.S. military agencies that need quick and cheap solutions for drones used for non-military operations. The staff working in the company includes IT specialists, scientists, and well-trained technicians to design, develop, and test low-cost navigation systems to control operations of drones and provide technical support for them. Forecasting Methods The two main forecasting methods are qualitative and quantitative forecasting techniques. If VectorCal primarily uses the qualitative forecasting method, the company becomes limited in opportunities to predict actual changes in costs associated with the clients’ demands in products and services. Navigation Tech Solutions needs to use the hybrid method of forecasting, when qualitative forecasting techniques are combined with quantitative means in order to receive the full picture and make predictions based on the qualitative analysis of the situation in the industry and on the actual numbers associated with the sales trends in the drone navigation systems industry (Garrett, 2008, p. 54). The hybrid method is important to forecast any potentially negative changes for the low-price strategy, followed by Navigation Tech Solutions. The Semi-Variable, Allocated, and Indirect Costs At the start-up phase of the company’s development, it is important to focus on a range of semi-variable and indirect costs. While not focusing on such direct costs as the labor and controllable material costs, it is important to pay attention to semi-variable costs associated with the changes in the outputs. These costs include resources spent on promotion and contact with potential clients because of the necessity to gain a reputation wit