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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