Figure 2 Presentation of direct channel (own processing)

The direct sale between producer and consumer is called as direct distribution. This has some benefits. First of all, direct interaction and relationship can be established with the consumer. In this way, it becomes much easier to protect the brand image. It is possible to reduce external fees such as commissions and broker fees, and at the same time, by eliminating intermediaries with this control.

It may be riskier. In fact, the company thus undertakes all of the existing financial risks. Because there is an increased probability of auditing, after that the company must have perfect documentation and tax records. If direct distribution is chosen on a new product, there will be an initial cost to meet needs such as ownership of distribution tools, equipment and the like. At first, it is possible to meet these needs for a business with a significant capital, but if the product is successful, success is achieved with this channel.

If selling products online is preferred, it is important that the correct sales tax calculations of the products purchased by the customer are displayed in the shopping cart. These calculations should be followed for current rates and tax rules and investigated in the conditions of the country where the company is located.

Here, we will just have our own ecommerce site for selling our products. Because it is valuable to announce a new product on social media and websites, to introduce the product to a wide audience quickly and to learn about the satisfaction of the product from the customers.

Indirect Channel

If a manufacturer uses a wholesaler or retailer to sell its products, this is referred to as an indirect distribution channel.

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Figure 3 Presentation of indirect channel (own processing)

Indirect distribution can have the following benefits:

? Shipping and storage costs are shared,

? utilizing the third-party infrastructure and sales force,

? logistics becomes simpler to manage,

The first striking difference in indirect distribution is the distance placed with customers. If the tool is added, the time it takes for the product to reach the customer will be increased. It can be difficult to maintain brand image when not directly interacting with your customer.

However, it may be a good way to bring the product to market without dealing with initial costs through indirect distribution channels.

Some firms, retailers, and coworking areas that we will sell within the indirect channel. We have got agreement with these firms:

? Bank ( in Germany and Holland)

? Consultancy Firm (in Austria)

? Fintech Company (in Germany)

? Software Firms (in Slovakia)

Our company has also made an agreement with the co-working areas in Slovakia, Austria and Holland. And finally, we will be located in Germany and Slovakia as our retail dealer.

Thus, a much wider range of customers can be created and sustained with production.

3.3 Technologies

Technology, which is of great importance in the manufacturing process, lies in the background of many products produced today. Thanks to technology, innovative ideas meet innovative solutions and more sustainable and efficient productions are realized. In addition to these, technology enables many people to become potential customers by providing differentiation in products.

If we need to start with the technologies we use in the production of our product, we can summarize them under 3 headings: maximizing efficiency, managing data and increasing productivity. In order to maximize efficiency in production, we need to shorten production times. Progress of repetitive processes with technology-based solutions shortens this time. In this way, time is saved in many areas, from reducing the energy consumed for the product to shortening the delivery time of the product. In addition, we will have much data at our disposal by ensuring the production. With this data, the technology processes used are made meaningful. It is provided to be made more efficient. Finally, the most effective operation of the processes that maximize efficiency is followed.

In product technology, we can start with the process we learn from the data. The sensors we use in our product are intended to provide the most accurate sitting position by making sense of the user's body shape. Thanks to the body shape information learned by the pillow, it analyzes and applies the most accurate position to which the user is closest. In addition, the technology used is different from image and temperature sensors as it is with pressure sensors. The ability of the users to save the settings they want and then return to that level easily is one of the areas where the product differs. At this point, we start from the teachings of Erol and Зetiner. (Erol & Зetiner, 2017)

The production stages of the sensors in Posture Cushion are as follows:

C. Assembling Electronic Circuit Elements

1. Adding a pressure sensor, which is a receiver sensor, to collect data from the user,

2. Adding a circuit board to the system that will convert the signals from analog to digital,

3. Integration of micromotors that will use the generated signals as outputs to interconnected plates inside the pillow

4. Integrating the battery that supplies energy to the product

5. Adding additional controls to the system so that users can use the product as they wish.

D. Combining Electronic Circuit Elements and Fabric Parts

1. Assembly of the receiver sensors and the plate on which the circuit board is located

2. Adding the intermediate sheet of pillow

3. Mounting of moving plates to which output sensors are connected

4. Integrating the shield that will cover all fabric and circuit elements

3.4 Geographical location

In total, there are six factors that pertain to geographic segmentation and can be used to create customer segments:

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Figure 4 Six factors of geographic segmentation (Thomas 2020)

One of the important requirements for the success of a business is to choose the right place. If a company chooses the wrong location, it may not have sufficient access to worker payments, shipping, equipment. So, location is actually an important factor in the company's profit and success. Here, by applying the location strategy, positions with matching proposals according to the company's goals and expectations are searched and a plan is created to obtain the most suitable position for a company. In other words, costs and risks will be reduced by prioritizing opportunities.

The following factors were considered to formulate the location strategy.

With the facility planning, it was determined what kind of area would be needed, taking into account the short-term and long-term goals of the company. For this, understanding; analysing; planning; acting methods are used. And the other factors are logistics, labor, community and site, trade zones, political risk, governmental regulation, environmental regulation, and incentives. After these evaluations, geographical location is decided to be in Slovakia. There are several reasons for that. Slovakia is the center of Europe and with this product, it is aimed to open up to Europe first. What is required to establish a company in Slovakia has been researched. Without residing in this country, a company can be established here with sufficient capital. There was a willingness to start a business in Slovakia mainly because of the financial environment (currency in EUR, flat tax 19%, dividend tax 0%), but also because of the highly educated workforce. Slovakia, which is located in Central Europe and has a highly developed infrastructure, was deemed suitable for the business environment. Slovakia, a member of NATO, EU, OECD, WTO, can provide a stable economic environment. This country has double tax treaties with more than 60 states and offers an attractive perspective for us to get a head start in Slovakia. In addition, when the Slovakian market is examined, there is no competitive environment for the product to be made (Company Formation Slovakia, 2021).

? In addition, we chose Bratislava as our production city in Slovakia for the following reasons: In recent years, technology companies that are global and especially in our sales target have made investments here and built service centers. For instance, very big companies IBM, Dell and Lenovo etc. (Sario, 2006). According to Invest in EU, Bratislava is the only city in the world that has borders with two countries. It is an important criterion for us as we will work with not only local but also international companies. So, we can be in an environment that could reach our target sales audience more easily.

? This city is also the first manufacturing of industrial products in Slovakia.

? In such a place, it was very attractive for us to get the necessary raw material and technological material in a short time.

? And lastly, it is given the ability to export with good railways, and also hire educated employees compared to other cities.

4. Analysis of the external environment

4.1 Macro environment analysis

A company cannot be considered alone in a business environment. It is surrounded by a wider environment. In this context, it is called the Macro environment. This can both force creating opportunities and posing a threat to companies. PEST analysis is used to identify macro economic factors that affect now or may affect the business in the future. Below, the numerical data required for this analysis has been approached with a statistical view of the macro environment. (Slovak Statistic & OECD and IMF reports, 2020).

PEST Analysis includes the following four things: political, economic, social, technological, legal, environment.

PEST

1. Political

According to various sources researched, a political will goal for sustainability is established in Slovakia. The main goal for 2020 and beyond is to increase accessibility, reduce regional inequalities and support economic development while continuously reducing negative impacts on the environment and public health. Even the location of the company to be established based on this can be done in the east of the country with government support. Also, according to the World Bank, Slovakia is one of the most attractive countries in Europe because it has low taxes and political stability. As Coface indicated that the business environment in general can be safe but can create challenges for companies at times. The most risky here is A5; the least risky country is A1, while Slovakia has an average value with A4 (May, 2020). That is, the probability of institutional default is quite acceptable. In addition, intercompany transactions, which are usually rated A2 here, operate in a stable environment often without a problem. Slovakia is shown as the fastest growing economy in Central Europe because it is a country of tax reform, highly skilled workforce and government incentives. It is a country where the so- called "paradise for investors" environment has been created by attracting world-renowned companies such as Ford Motors, Volkswagen, Dell Computer Corporation ( Invest in EU, n.d.).

Taxation is as follows in the country:

Slovakia implemented its tax reform in 2003, aimed at simplifying the tax system and creating a better environment for foreign investment.

The following taxes in Slovakia have been canceled: inheritance tax, gift tax, real estate sales and, most important to us, dividend tax in the case of joint stock companies or tax revenue redistribution taxes in the case of LLC. Most items have a single income tax, and the income of individuals and legal entities is not considered here, the lower tax is only 19%. However, the tax base can be reduced by separately writing down the other costs required to do business (Invest in EU, n.d.).

In addition this is another indicator of how open a country it is to investment. Slovakia has signed the treaty against double taxation by many countries. For example: Belarus, Bosnia and Herzegovina, Israel, India, China, Cyprus, Latvia, Lithuania, Macedonia, Malta, Russia, Turkey, Turkmenistan, Uzbekistan, Ukraine, Montenegro and Switzerland (Remeta,2015).

Moreover, the company will be able to act within the laws of the country. For example 311/2001 Coll. The Labor Law has a legal and political effect on the company. All kinds of employer responsibilities, such as employer rights and working hours specified in this law, are within the limits acceptable by the company. As an example of the content of the law article, "Maximum weekly working time of an employee shall be 40 hours. An employee whose working time is arranged in such manner that he/she regularly performs work alternately on both shifts of a two-shift operation, shall have maximum working time of 38 and ѕ hours per week, and on all shifts of a three-shift operation or a continuous operation, maximum working time of 37 and Ѕ hours per week. " is written in this labor text (International Labour Organization, 2015). So, our company will adjust the times and shift operations as Slovakia's law.

2. Economical

There are phases of privatization in Slovakia that enable it to foster a stable base for economic development. This contributes to a large number of foreign companies in the country. We will make a real project implementation and we can get a loan or irrevocable help from UCITS for this project.

Economic growth in Slovakia has accelerated in the last decade because of economic reform and a market-oriented government policy. With the increasing foreign demand, the commercial sector in the country has strengthened and economic growth has accelerated.

For the GDP indicator according to the Statistical Office of the Slovak Republic source, when the data for Slovakia from 1995 to 2020 are examined, the chart has an increasing curve. In 1995, a minimum of 4.56 billion Euros for Slovakia and a minimum of 21.2 billion Euros in 2019 (OECD, 2020).

According to the Heritage Foundation, Slovakia has an economic freedom score of 66.8, and its economy is the 60th freest country in the 2020 Index. His overall score increased by 1.8 points due to his improved state integrity score. Slovakia ranks 32nd out of 45 countries in the European region. Its overall score is slightly below the regional average but well above the world average (Heritage, n.d.).

Tax incentives in Slovakia, cheap and skilled labor, rapidly developing infrastructure (supported by the flow of EU funds) make the country a preferred place for trade. The country can also be used as the crossroads of Central Europe. Since 2009, Slovakia has had economic growth driven by its exports. The share of foreign trade in GDP also shows that it has a very high share with 190% (World Bank, 2018), which shows Slovakia as the third most suitable country for investment in the EU.

The country's main customers in 2021 are Slovakia with 40.75%, Germany with 29.75%, and Holland with 13% of total exports, respectively. We can start exporting to people with the desired budget with these countries. The main supplier countries here are: Germany, Czech Republic, and Holland which can make it easier for us to request software and technology materials we want. Here also, our company will care for exchange rates but our sales and supply mostly takes place in European countries. However, as we also have a market in the USA, the UK, and Arab Emirates countries, their exchange rates are given below:

Table 1

Exchange rates according to countries (own processing). Exchange rates can change over time

Stabile rates have a very significant impact on the company because fluctuating exchange rates could create uncertainty for the company. Therefore, demand for exports and the cost of imports are hard to predict. The euro may be disruptive against another currency that is not good for budgeting. Furthermore, if net revenues will be low, after that, our company can close it down in a competitive market.

Graph 1 The average inflation rate in Slovakia from 1995 to 2019 (Plecher 2020)

The average inflation rate in Slovakia from 1995 to 2019 is shown by this statistic, with forecasts up to 2025. In 2019, relative to the previous year, the average inflation rate in Slovakia rose by around 2.77%. But for the next 5 year, there are absolute stability predictions, so this is a good economic environment for our company. This is important for the company because for instance, if the rate of inflation for the company's products is lower than the rate of increase in the price of raw materials, then, over time, our company would suffer a decline in profitability. Our company cares if there is high inflation or not that can be unexpected returns on capital purchased for our company. If it will be low that can give a great long-term view to the company. Also, inflation has an absolute effect on investment that can be in labor or training programs.

The variables of interest rates and exchange rates, which are part of macroeconomic factors, enable the company to accurately determine the cost of product, production, and development

3. Social

The Ministry of Foreign Affairs of the Slovak Republic indicated that Slovak GDP in 2018 is shown at $ 107 billion. The average growth of the EU was 2 percent, and the real economic growth rate above this rate was 4.0 percent. Increasing disposable income by 5.6 percent and low unemployment and inflation rates by 2 percent, thereby supporting increased private consumption. Slovak society is quite traditional and conservative, indeed, mainly young and middle-aged consumers seem to have a growing interest in the healthy lifestyle trend and a shift towards products related to food quality, health problems. Demand for quality and healthy products is increasing, especially due to the increasing pace of life and even increasing consumer spending power. (Hlavackova, 2020, p. 2). Nowadays, since many processes are carried out in computer environments, people sitting incorrectly for long periods cause health problems. It is possible to find our target audience both at domestic and abroad.

Graph 2 Slovakia: unemployment rate from 1999 to 2020 (Plecher 2020)

Slovakia's employment rate, which had been steadily rising before the Great Recession, declined somewhat in the 2008-2010 period and has been slowly recovering. But as seen in the Statisca graph, there has been a great decrease in unemployment rate after 2013 and 2014. After this year, long term unemployment rates have been exactly decreasing. The economy and unemployment rate are parallel. For example, if unemployment will be high so the economy can start to slow down. Also, higher unemployment means some households will have less income. And, people will spend less and sales will be lower. Especially, demand for cheaper products can increase. But our products are not in the category of cheap products. So, this stability profile was very important to us when we wanted to make a decision. That unemployment rate with this forecast is an absolute opportunity for our company.

Graph 3 2016 European semester country report - Slovakia retrieved from, https://ec.europa.eu/INFO/PUBLICATIONS/2016-EUROPEAN-SEMESTER-COUNTRY-REPORT-%20SLOVAKIA_EN

Also, in this Europa graph, in 2014, while eastern Slovakia reached the near 20 percent that is the maximum value in Slovakia, Bratislava achieved the lowest unemployment rate of 5-6 percent in the nation that our company can be in the most developed region. These data are shown to the company that are good reasons to prefer establishing not only in Slovakia but also Bratislava. And, our company can hire educated people in this region.

4. Technological

Slovakia ranks 36th in adopting a technology and current technology infrastructure will be able to accommodate digital activities and connected consumers ( Team, 2020). Here, too, we can continue our development on a certain basis to develop the innovation economy. It is developing very rapidly in terms of industry in Slovakia. In Slovakia, mechanical engineering, metalworking, electronics, the chemical industry and information technology are among the supporting drivers of development. And even the second largest and fastest growing industrial sector is electrotechnics and electronics. Slovakia, large suppliers of electronic components are available because there is a fast transport with delivery time within 1-2 days. Major foreign investors in Slovakia are present from Germany, Austria, the Netherlands, the USA, the UK mainly in companies operating in the manufacturing industry, electronics, financial services, telecommunications, precision engineering. More than 90% of existing foreign investors in Slovakia have further expansion plans in the country, according to sources searched. Our strategy as a company is to follow this example of expanding or repositioning Central European activities from Slovakia in order to reduce costs and find new markets. And also, according to data from the Digital Readiness Index study, Slovakia is ranked 34th globally, with a talented power to support digital innovation. Furthermore, Slovak University of Technology and especially its faculties Faculty Of Informatics And Information Technologies, and Faculty Of Electrical Engineering And Information Technology can give an advantage for a scientific and technical environment.

At the end we can make one indisputable conclusion - Slovakia currently provides for a foreign- investors very good conditions for business development in different directions.

4.2 Analysis of the sectoral environment

An analysis of the sectoral environment can be understood with Porter's model of 5 forces. Understanding the company's competitive environment, industry entry challenges, suppliers, customers and substitutes provides great benefits to the firm. After that, the prices of products or services are shaped according to these advantages and disadvantages.

Figure 5 Competitive rivalry (Porter`s five forces N.D.)

Competitive Rivalry

One of the first elements in Porter's 5-strength model is Competition in Industry. It is one of the issues that every company should pay attention to in order to maintain and develop its place in the market. Although there are many products similar to our pillow and auxiliary products produced in the sector, when we analyze these products, we do not encounter a product or company that brings together all the needs of our customers. Therefore low significance is seen.

Threat of New Entry

We are in a sector that is more difficult to enter than our potential competitors who only produce pillows or design mechanical projects with sensors. For example, one of our competitors, Memory Foam Cushions, emphasizes only the sponge style, while Timer Cushion focuses on the timer.

By entering the market where these different areas are brought together, we have a say in determining the prices and conditions in the sector. Although it comes to how we overcome these obstacles, our know-how investments, one of the most important issues, are prioritized. Both technological sensors and fabrics, sponges etc. used in textile. Our investments on how to combine materials and work in the most efficient way give us this advantage. For this reason, this situation is of medium significance.

Supplier Power

One of the most advantageous points of our company is the know-how power that we mentioned in the previous articles. We ensure that the raw materials we obtain from our suppliers are brought together with our knowledge. That's why we combine ordinary materials to create unique products. For example, while our pressure sensor supplier is MICROSENSOR, our memory foam supplier is FULE (JINJIANG) FOOTWEAR MATERIAL CO. This situation increases the strength of our company unlike the suppliers and helps to balance the prices between our company and our suppliers. The high number of suppliers due to the materials we use and purchase and the low cost when changing suppliers are one of the advantageous points for our company. As a result of all these advantages, we are able to maintain our advantages and provide lower input costs. For this reason, this situation is of medium significance.

Buyer Power

Another advantage we have in our company is the market and business model we address. The fact that our market consists of large audiences such as all office workers and travelers shows that our potential customers are high. In addition, we maintain our price advantage here as well, as the individual benefit of each of our customers to our company will not be great. At the same time, we minimize our costs of finding and creating potential customers with social media and the internet, which are one of the marketing channels we will use. Finally, with our B2C model, which forms a large part of our business model, we reach many independent customers and maintain our price advantage. These customer groups are office employees, kids in school, drivers, those with posture disorders, pregnants, travellers, those used at home, people in a wheelchair. We also have a B2B model which is for other companies. For example, co-working centers are among these customers. HUBHUB in Bratislava, The SocialWorkHUB in Vienna and Locus Workspace in Prague are among our customers. Therefore, we can say that there is low significance in this area.

Threat of Substitutes

One of the advantages of our company is the lack of a close substitute product. Being one of the rare companies that determines the needs of our customers well and solves this problem with technology enables us to keep our customers and have a say in prices. In this case, although there are companies that solved only some of the multiple problems Posture Cushion solved, our product has no substitute. This situation provides low signification.

As a result, we use Porter's Five Forces model and score each level of importance as follows:

- Low Signification = 1 point

- Medium Signification = 2 points

- Strong Signification = 3 points

- Very Strong Signification = 4 points

The powers in the Porter's Five Force model and the evaluation of Posture Cushion are given below:

- Competitive Rivalry - 1 point

- Threat of New Entry - 2 points

- Supplier Power - 2 points

- Buyer Power - 1 point

- Threat of Substitutes - 1 point

As a result, our company Posture Cushion is not facing a major threat in terms of sectoral competition.

5. Analysis of the internal environment

5.1 Marketing mix

There are 4 PS of marketing mix that can shape the strategies of the company and can boost the sales.

1. Product (or Service)

Our product marketing should primarily be in technological expertise and an ergonomic design. It should create our unique combination of quality furniture craftsmanship and highlight its benefits, as it will be presented as usable, not just interior software. Here, a quality product should come out in our packaging, shipments and guarantees. The most important thing is correct assembly and packaging without damage. We know that we can deliver the best product from our production site to the consumer. Methods have been developed to ensure that the assembly is completed correctly by the customers. To attract customers, it should also make the packaging visually appealing and demonstrate the health benefits and hardware robustness.

Our cushions contain electronic sensors such as pressure sensors for providing best posture to our users. At the same time they consist of timers for preventing being seated at the same shape for a long time. With the controller, shape and timer can be set.

1. Seat Cushion is a pillow that users sit on. It consists of pressure sensors as electronic parts and memory foam as a cushion. After being in the same position for a long time, Seat Cushion changes its shape for another one to prevent being seated for a long time.

2. Waist Cushion is a pillow that users can fix to their seats, chairs and car. Since it contains pressure as the other products, it senses the user and according to the user, Waist Cushion takes the optimum shape and encourages the customer to sit in the best posture for her/him.

3. Leg Cushion provides the feet rise and change the shape of the posture while providing movement to the feet. Since it is adjustable, the height of the cushion can be set by the user according to the need such as using in the office, using while travelling.

4. Neck Cushion supplies support to the neck of the users especially while travelling. It keeps the head up and prevents users' heads from falling to side while sleeping.

5. Bed Cushion is a special and sizely big one according to other cushions. It is a bed mat for especially people who have posture disorders.

2. Place

E-commerce sites and other retail and wholesale channels will be preferred. For this, a good target should be set on stocking and there should be no demand problems in the face of demands.

3. Price

Product bundle pricing will currently be used where products are packaged together and sold at prices lower than the sum of individual items. In addition, a price for the base product and separate prices for the accessories that come with it will be offered as another product pricing strategy. However, there should be a price reduction in both stores and e-commerce sites, especially when there are discounts.

Table 2

Price of the product (own processing)

4. Promotion

Our promotional strategy is mainly based on real information and offering the benefits of our product to our customers in the right target audience. Another strategy is to ensure that those who have a budget and really demand the product know where we can meet their needs and find the product. Marketing should convey a sense of quality and functionality in every image, promotion, advertisement. We will not afford to appear in second-rate catalogs that make the product look different than it really is. We also need to build ourselves a broad market and customer base using high quality catalogs and strengthen our presence.

5.2 SWOT analysis

SWOT analysis is an analysis that allows companies or people to see their strengths and weaknesses and help them to recognize the opportunities and threats in their environment. (Ommani, 2011)

First of all, to start with the Strengths; the things that companies do well, that make them stand out from other companies, internal strengths such as employees and the assets they have. The main feature that makes our company different from our competitors is that we offer a solution that does not exist. One of our features that allows us to stand out from our competitors is aiming to solve the problem with the help of technology. In this system sensors automatically adjust the pillow and provide the most accurate posture to our user. In addition, the fact that our team consists of people who are equipped with this issue is one of the points that makes us stronger than our competitors.

The Weaknesses give information about the issues that companies are missing. Examples of such situations are resource constraints and what their competitors do better. In this way, companies see their shortcomings and try to improve them or to take measures against the risks that may occur. In our company, an example of our weaknesses can be that we are dependent on suppliers for raw materials and materials. At the same time, it is one of the weaknesses of our company that our competitors do not contain too many technological parts in their products and the prices are much lower. We can prevent this situation with the high- income level of our target persona as our customers.

The other topic can be mentioned is Opportunities. Examples of opportunities are how few products and services in that market, how many competitors in the market, the importance of the need for the product and usage of marketing. The most important opportunity for our company is that there is no need-oriented solution in the market. For this reason, the opportunity created by the low number of competitors in the market is important for our company. At the same time, our market is constantly expanding with the increase of desk jobs and screen time.

Despite all these opportunities, Threats are also inevitable. Examples of these threats are the formation of new companies, changes in regulations, negative marketing effects and negative attitudes of customers towards the company. One of the threats faced by our company is that we can attract the attention of our competitors and become a part of the market by being in a market where a complete solution is not offered. In addition, companies that do not exist can see this opportunity and want to enter the market.

(The points taken as a basis while calculating the SWOT Analysis were selected from the range between 1-10.)

Table 3

SWOT analysis values (own processing)

When the results of the SWOT analysis are examined, we see that the sum of the strengths and opportunities of the company is more than the threats and weaknesses for the company. This situation creates an advantageous situation for the company. Nevertheless, the company should take precautions against threats and work on eliminating its weaknesses.