Industry description

The “khusi ko ghar” is a service-based industry for an adult citizen with age more than forty with the aim
of ensuring their entertainment and adding creativeness and innovativeness in their life. There are many
recreational centers around Kathmandu valley with all of them providing the service for futsal, Gym and
swimming pool only targeting youth but today many of the adult and retired people spend their most of
the time tapping their smartphones at their home alone with boring lifestyle and loneliness. So, we have
agreed to came up with the idea to entertain our adults and to provide them freedom they are seeking
for. This can also be appropriate place for adult people who are suffering from depression and anxiety
and start again friendly and happy life.

Before ten years back KMC has established adult citizen recreation and day care center at ward 23
introducing various musical instrument attracting 80-100 adults regularly till date today. This initiation
from the side of government has became the idea and dream for us to open our own recreational center
for adult citizen in broader sense and sophisticated way. Since there in no presence of such industry from
private sector and which can be advantageous for us in a future with potential growth in future.

Primary target segment

The most and foremost target is an adult citizen with age greater than 40. There are more than 50% of
people whose age is more than 40 years and among those who have retired from their job, housewives
and who are unemployed falls under primary target segment. Here at first, we are mainly focused on the
adult citizen residing near our khusi ko ghar. At first, we are approaching with consumer with the help of
running saptah over weeks and discussing about the benefit of joining recreational center.

Secondary target segment

In second segment, we are going to target people who are senior citizen also a people who get depress
by staying at home are our possible customer. In hospital we can get the customer who are having the
problem of depression and anxiety.

Competition
To analyze the competition and possible threats we followed porter’s five force analysis to determine the
challenge that our business might face.
 Figure: porter’s analysis

1. Threat of new entrants:

There are a few chances of having a new entrants or competition in our business. It is because it
is a business with huge investments and require lot of techniques, methods and procedures. So,
there is a minimum chance of having new entrants immediately or even after a long period of
time.

2. Threat of substitute:
These organization might be our probable substitute competitor which might affect our customer
base and service:
 Swimming pool: there are many swimming pools around valley which are easily accessible for
customer and provide easy access to all the age group people. These facilities around valley can
decrease our customer base.
 Meditation center: nowadays many people follows different yoga mentor and are attracted
towards various types of meditation and following meditation center. Mostly people who are
trying to recover from depression and anxiety go to such meditation center and these people are
also our probable customer.
 Gym club and fitness center: there are many gym clubs around valley which are becoming the
daily routine for the people of all the age group to keep them fit and healthy. Due to these we
might lose our customer.

3. Bargaining power of suppliers:

Because of service based company there is not much more threat from supplier side. But
employee like swimming coach, yoga mentor, pandit and staff can demand for high salary and
other facilities.
4. Bargaining power of Buyers:
Khusi ko ghar is customer centric business and placed its values on the satisfaction of the customer
and consumer, customer definitely put us under pressure by demanding for lower fee, and more
service within that fee.

5. Internal or external rivalry:

For most industries the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry. Despite of increment of demand of recreation center the level
of intensity is not much more in this sector. Also because of product differentiation, brand
recognition and customer loyalty to us we are sure to be a leading firm in the industry within short
term of establishment.

Process for starting business in Nepal

This information was collected as part of the Doing Business plan, which measures and compares
regulations relevant to the life cycle of a small- to medium-sized domestic business and applicable
for all types of business house.
Trends

The result of environment analysis of “khusi ko ghar” will help to see what are the competitive edges for
recreational center with respect to the environment. Trend analysis is conducted by doing the PEST
analysis.

a. Political environment:
Our political peace-making process and constitution finalization process is going on smoothly and
there a lot of policy level understandings amongst political parties to co-operate in service sector
which will create conductive environment in investment sector.

b. Economic environment:
Nepal government’s policies have been quite encouraging for the private sector developments as
it can have major role for the economic activities in the country. This project can have great
contribution to economy of the country.

c. Socio-cultural environment:

d. Legal environment:
There is no restriction from the government for the smooth operation of existing process and
service of recreational business.