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					Noah Kasraie
    Murray McKee
        Alicia Stevenson
             Karen Donham
      Proudly Present:
           ChemUnity?

   ChemUnity is a company attempting to be
    an online “middle-man” between chemical
    companies and its suppliers.

   The case time is the day that real online
    trades begin.
                      ChemUnity Value
                     Proposition/Cluster
               Target             Key Benefits                  Unique                        Value
              Segments        +     Offered              +    Capabilities                  Proposition


            •Western Europe       • Pro Active site          • Fast response time for   ChemUnity provides a
                                                             Buyers/ Sellers            quick, easy and secure way
                                  • Ease of                                             of selling and buying
            •Chemical
                                  Buying/Selling             • Suppliers only receive   chemical commodities in
            commodities
                                                             “serious offers”           Western Europe by using
                                  • Powerful filtering                                  Internet capability
            •Buyers who           software                   •Only 1 bid per seller
ChemUnity   explore market                                   (not an auction site)
            options at each       • 18 Years of
            purchase              experience in              • New market
                                  Chemical                   opportunities for
                                  Commodities                buyers/sellers
            •Truck load
            volume
            (standardized)
         ChemUnity
     Marketspace Offering

                     Continuum of Scope


Category-Specific Dominance           Cross-Category Dominance
Focus on one product                  Focus on a large number of
                                      categories


   ChemUnity falls under category
    specific dominance since it only
    deals with one product category.
Procurement
       ChemUnity Egg Diagram
                                                               Commodity


                             Herman Rijks
                             Mark-Jan Terwindt                Need
                                                            Recognition                                          Name
                                                                                                                 grade
              Product                                                                                         
                                                                                                              
                                                                                                                  concentration
                                                                                                                  delivery region
                                          Education
                                                                                                                  time and date
              Offering                                                                Search for Ideas
                                                                                       and Offerings
                                                                                                              
                                                                                                                 preferred price
                                                                                                                 highest excepted price


                                                     Chemunity
Post-Sale Support/Perks                           Decision Process                            Evaluation of
                                                                                              Alternatives
                                                                                                                     Product price
      None                                                                                                          Product availability
                                    Post-Sale Support
                                       and Perks


                                                                      Purchase
                                                                      Decision



                                                               Buyer submits price
                                                                range
                                                               Seller accepts or
                                                                declines
               ChemUnity Resource System
                                                                                         Chemical
                                                                                        Distribution                Herman
    Bids Are                No Dumping                                Egon Zehnder      Experience                   Rijks
    Binding                                                           (headhunter)


                                                                                                       Mark-Jan
No Price                                                                                               Terwindt
Haggling                    Bidding
                                               Easy Buying                             Commoditie
                                                & Selling                                  s
                                                Process                                Experience
                      Credit Insurance                                                                                 Education

                                                                       Fast Response


   NCM/Swiss Re
                                                                           25 hrs.
                                                                           maximu
                                                                             m
                  Compaq
                 (hardware)                                                                                       Bid Forwarding
                                                 Filtering                              Pro-Active                 & Notification

   CSC
                                                                            Buyers
(software)
                                                                             Lists
                        Technology
                                                             Geographi
                                                             c Filtering
    = Core Benefits                       Price
                                         Filtering
    = Activities & assets

    = Capabilities
       ChemUnity Financial
            Model

   ChemUnity follows a transaction model
    to generate revenue. It charges 2% on all
    transactions, which is estimated to
    generate 20 million Euro as annual
    revenue.
            Main Problems

1- Business Plan Problems / Expansion
2- IT Problems
3- Human Resources Problems
4- Revenue Problems
5- Need to raise awareness to buyers and suppliers
   Business Plan/ Expansion
           Problem
 The business plan has not been tested before.
 The business plan model is based on several
assumptions.

Alternatives:
1- Strategic Frontal Attack
2- Strategic Flank Attack
  Business Plan / Expansion
           Problem
Recommendations:
 Slow Market Entrance by focusing on few
starting products and services.
 Concentrate on a smaller geographical market.
 If Model is successful, begin heavier marketing,
along with enhanced services and broaden the
scope of offerings.
              IT Problems

 Low IT budget (only 10%).
 No IT experts, or previous online experience.
 Some IT is not working properly, yet ChemUnity
presses onward.

Alternatives:
1- Hire IT personnel
2- Continue to outsource
             IT Problems

Recommendations:
 Increase IT budget
 Continue to outsource with CSC
 Fix the execution problems ASAP
 Human Resources Problems
Alternatives:
1- In-house HRM
2- Continue working with Egon Zehnder
Recommendations:
 Hire HR personnel who have the knowledge of
chemical industry and can communicate with
suppliers and buyers.
 Hire few trained professionals and let them train
the other employees.
         Revenue Problems
Recommendations:
 Sell advertising space on the website.
 Offer financial and transportation services
through affiliations.
 ChemUnity can raise some money from
banks, venture capitalists, and market
players.
       Awareness Problems

Recommendations:
 Advertise in industry magazines.
 Attend industry meetings and seminars.
 Contact leading suppliers in the region and
try to get them on board.
Advertise on other websites.
Thank You For Your Attention!

				
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posted:12/9/2012
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