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Business idea to build a sustainable Software Company targeting Global Market using Local Market as a Spring Board

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The project is about to come up with a business idea to build a software company targeting the global market using local market as spring board and make continuous growth and improvement. Gather enough evidence doing the methodical market research to support the business idea and convincing the entrepreneur that this is attainable and lucrative business idea. Make detail strategic plan including financial projections for attaining this goal.

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									Fall 2008 Project Paper
Come up with business idea to build a sustainable Software Company targeting Global Market using Local Market as a Spring Board

Software Marketing
SEN-650
S.M. Saiful Islam ( ID # 0712004)

Program – M.Sc. in SE

December 14, 2008

1. INTRODUCTION ............................................................................................................................ 3 1.1 PROJECT REQUIREMENT ..................................................................................................... 3 1.2 METHODOLOGY .................................................................................................................. 4 2. BACKGROUND INFORMATION ................................................................................................ 4 2.1 OBJECTIVE .......................................................................................................................... 4 2.2 CHOOSING MARKET SEGMENT ........................................................................................... 4 2.3 BUSINESS IDEA ................................................................................................................... 5 Local Market Business ......................................................................................................... 6 Global Market Business ....................................................................................................... 7 3. MATERIALS & METHODS .......................................................................................................... 8 3.1 STEPS AND ACTIONS PERFORMED ....................................................................................... 8 3.2 INFORMATION GATHERED .................................................................................................. 8 Market Size & Revenue projections...................................................................................... 9 Rivals, Substitute Products, Users’ Experience, Users’ Expectation................................... 9 Suppliers, Partners ............................................................................................................. 10 3.3 SOURCES OF INFORMATION .............................................................................................. 10 3.4 DESIGN & PERFORM SURVEY ........................................................................................... 11 4. STUDY FINDINGS ........................................................................................................................ 12 4.1 SEARCH BUSINESS SECTOR & MARKET SIZE (DIRECT SEARCH – INTERNET).................. 12 4.2 MOBILE AND GPS CAR NAVIGATION USERS.................................................................... 13 4.3 RIVALS, SUBSTITUTE PRODUCTS, USERS’ EXPERIENCE AND THEIR EXPECTATIONS ....... 14 4.4 SUPPLIERS AVAILABILITY AND ATTITUDES ...................................................................... 15 5. FINANCIAL ANALYSIS - INVESTMENT AND REVENUE PROJECTION ....................... 15 5.1 SOURCES OF REVENUE FOR LOCAL MARKET ................................................................... 16 5.2 SOURCES OF REVENUE FOR GLOBAL MARKET ................................................................. 16 5.3 NEED FOR EXPENDITURES AND INVESTMENT ................................................................... 16 5.4 TEAM STRUCTURES ALONG WITH YEARLY SALARY AND ALLOWANCES ........................ 16 5.5 CUSTOMERS AND REVENUE PROJECTIONS ....................................................................... 17 5.6 INVESTMENTS & REVENUE PROJECTIONS ........................................................................ 18 6. STRATEGIC ANALYSIS ............................................................................................................. 20 6.1 ECONOMIC FEATURES & STRATEGIC WEAPONS FOR COMPETITIVE ADVANTAGE ........... 20 6.2 ENVIRONMENT CONTEXT ................................................................................................. 22 Micro environment ............................................................................................................. 22 Macro environment ............................................................................................................ 22 6.3 STRATEGIC OPTIONS AND RECOMMENDATIONS ............................................................... 23 7. APPENDIXES................................................................................................................................. 25 7.1 QUESTIONNAIRE FOR BUSINESS CUSTOMER...................................................................... 25 7.2 QUESTIONAIR FOR MOBILE USERS FOR COMPANY SEARCH ............................................. 26 7.3 QUESTIONARE FOR MOBILE USERS FOR LOCATION SEARCH ............................................ 26 7.4 QUESTIONAIRE FOR GPS MAP USERS............................................................................... 27 8. REFERENCES ............................................................................................................................... 29

1. Introduction
1.1 Project Requirement
An entrepreneur has an idea of developing a software company in Bangladesh. He/She intends to use local market as a spring board to enter the global market. He would like to begin with 10 people with the intension to grow to 100 people within 5 years. Within three years the company would like to reach the breakeven, serving the local market only. In the process of serving the local market, the company would like to continuously improve engineering practices, technologies, domain expertise and development environment. The company’s intension is to use the world class software engineering capability to enter the global market of software engineering service. At the end of five years, the ratio between global and local revenues should be 30/70 with an increasing trend towards global by 20% a year. At the end of five years, the company intends to operate at profit with a revenue as well as profit growth rate of 30%. This entrepreneur has retained your service to understand the market and spell out this idea into an implementable strategy, with suggested modifications by taking into consideration of real life scenario. Here are tips helping you succeed in this exercise to deliver high quality service: 1. Think strategically to understand the local and global market within the context of five forces model of competition. 2. Select local market segment in which adequate revenue could be earned to reach break even within three years. This market segment should be suitable to acquire needed human expertise, process, technology, and domain expertise to enter the targeted global market segment. 3. Carefully study applicable economic features, and weapons to enter and develop competitive advantage. 4. Study micro as well as macro environments affecting similar companies and this envisioned company. 5. Study options for the company to respond the inside as well as outside environments. 6. Determine other issues to be addressed to deliver valuable advice for the client. Suggested methodology to progress along with these tips as follows: 1. Think and discuss about the assignment 2. Determine information need; define sources of information, primary/secondary 3. Do literature search including Internet 4. Determine checklist and interview key informants such as entrepreneurs, developers, clients, academicians, journalists, students, etc. 5. Design and perform survey 6. Summarize and analyze data 7. Develop your understanding, strategic framework and suggestions 8. Present the study design, methodology and summary of your findings 9. Write the detailed report as a professional work

1.2 Methodology
Before starting this assignment a thorough discussion was held in the class room about the requirement and procedures of completing the task. Then a three member team was formed to work together to complete the assignment in the light of class room discussion. This team sat together several times for brain storming and discussing the different project issues - choosing business sector, determining information need, designing the survey and eventually analyzing and summarizing the collected information and come up with final report. As a part of the collection of data a thorough Internet research was conducted. Then a number of people – the target customers, the target end users, the target suppliers, the target competitors and rivals were surveyed, interviewed and contacted. Based on these study findings the final report was prepared.

2. Background Information
2.1 Objective
The project has some definitive objectives. These objectives can be summarized as the following points: Come up with a business idea to build a software company targeting the global market using local market as spring board and make continuous growth and improvement Gather enough evidence doing the methodical market research to support the business idea and convincing the entrepreneur that this is attainable and lucrative business idea Make detail strategic plan including financial projections for attaining this goal

2.2 Choosing Market Segment
As per the project requirement, the envisioned company has to work in a market segment which would be suitable for both the local market and global outsourcing market. This is very critical and relevant requirement. Therefore, we had a long discussion and brain storming session. We had some structured discussion following the discussion topics listed below: What are the success stories in global outsourcing? o o o o o Which countries have done well? What were/are the areas of activity? How did they start? How did they finance the growth? What kind of partnerships did/do they have? Which areas of activity? - e.g. ERP, small stand alone solutions, web based solutions, customization, etc. Which regions are more likely to outsource? - e.g. Western Europe, USA, Japan, Korea, etc? Which industries are more likely to outsource processes? – e.g. Manufacturing, Financial Services, Impact of increased manufacturing outsourcing, etc.

What are the trends in outsourcing today? o o o

o

Why these are trends happening and are they sustainable? – e.g. cost competitiveness, increasing labor costs, require new solutions to improve efficiency, optimize operational excellence, etc.

What are the opportunities for the Envisioned Company: – focus on what could be done if resources can be available o Markets? • • o • • • Regions – Europe, US, others? Industries – small, medium, Healthcare, Services, etc??

Services? Which products are in demand? ready made products vs customizations Proactive vs reactive products – positioning ourselves! Expansion of services to include BPO, CSC, etc.

Conduct some analysis, focusing on the Envisioned Company’s Strengths and Weaknesses only o o o compared to other Bangladeshi service providers compared to India compared to East Europe Internal competence? Strategic Partnerships? Financing? How does the envisioned company become better/best at what it wants to do? How that can be marketed?

What needs to be done to develop opportunities? o o o o o

Based on the long discussion we have decided to choose Directory Search and Map Services for the local market and using this competence and capabilities getting maintenance and development works from the global search and map companies and creating some partnerships with them. This business idea has been detailed in the subsequent sections.

2.3 Business Idea
Find it easy! This would be heart of our business idea. The core of our business idea is to build a leading search company in Bangladesh to make it easy to find people, businesses, products and location using Internet, mobile and GPS services. Make a world standard Software service company in Bangladesh targeting the global market focusing on the online Search and Map services to the local market and build up very strong capability to serve the global online search and map market. Short term target is to make very strong local brand in specialized online search and map market, and make a culture of using online search and map in everyday use. Ultimate target is to provide the engineering (development & maintenance) services to the global search and map companies like Google, Yahoo! Search, AOL Search, Ask, Alta Vista, Fast, Gigablast, Netscape Search, Snap, Lycos, Eniro (Europe). Provide engineering services (development & maintenance) of their advertisement sales system. Target lot of industrial and professional search companies like Blue Book, Yellow Pages, Industrial Quick Search, Zycon, All The Industrials, Engineers Edge, Industrial Directory etc.

Local Market Business For the local market the company will develop a business search directory some what like online yellow pages. This directory will contain all the companies, organizations, institutions, hotels, restaurants, markets, shops, government offices, hospitals, etc. Initially all the companies, organizations, institutions, hotels, restaurants, markets, shops, government offices, hospitals, etc will be entered in the search data base along with the basic information like address, contact, logo and some profile thing so that the information seeker can get his information. Doing highly professional marketing, the search site would be made very popular and would be made a strong brand so that people always come and search this site for local directory information instead of Google or the other local Directory services. The map would be incorporated with this directory services. Any company can be located in the enlarged map very easily. In addition to this any route (From Address To Address) can be identified in the map and detail route information can be found. Both the search information and route information can be found in the mobile as well. The other important service would be GPS based navigation system for Car or Vehicles. Here, the GPS navigation device will have the latest updated map and can be shown its current position in the map and will show the route to destination and continuously guide the vehicle to the destination. This map would be regularly updated and the devices would be able to take the update from the Internet. This will help the vehicle drivers to find and get to the exact location without bothering anybody or without getting misguided by the other. Following are the local market offerings at a glance: 1. Company/Business Search (mobile enabled) Show the company/business address Show Ad, Info site & Profile Show company in Map 2. Location Search & Route Map (mobile enabled) Find the location in the Map Find Route (From address –To address) Route information – Distance, Internal Important Locations, Approximate travel Time, Available Transportation Print Route Map 3. Get info by SMS Company Address Route Information 4. Customer – GPS Map for Car Device Map embedded software for GPS Car device All the companies, organizations, institutions, hotels, restaurants, markets, shops, government offices, hospitals, etc will be available in the search list for free. But, for showing ads, info site, profile they have pay. The search will be very intelligent and point based. For getting privilege in search customer would be able to buy points. High point’s customers will be found on top of the search results. We believe that customer will buy points to be on top if they are convincing that will create new business opportunities. All the government and non-profit organizations will be free customers. Following figures show the sample search results. For free customer, it will show the very

basic content and for the paid customer it will show the detail of customer ad.

Figure 1: Business Customer Search Result (Left-Free Customer, Right-Paid Customer). (Adapted from Eniro) Following figures show the sample route map and car navigation devices. The route map can be enlarged and detail route information can be found. The GPS car navigation device will show and guide the route and show the exact position of Car on the route map.

Figure 2: Route Map (Left), GPS Car Navigation Device (Right). (Adapted from Eniro) Global Market Business In the first three years the envisioned company will be able to demonstrate its capability and make strong brand in the local market. During this period, the company will be able to build huge local database which can be used by international service providers for local service. Along the way it will built its strong technical and domain skill and organizational process. Using all this achievement and intellectual assets, the company would be able to draw the attention of global and regional search and map companies and thereby get the work from them and make partnership with them. Following are the global market offerings at a glance:

1. Development and Maintenance of local services like Bangladesh page for global search and map companies 2. Provide engineering services (especially maintenance) to the global search and map companies 3. Provide engineering services (both development & maintenance) of their advertisement sales and monitoring systems.

3. Materials & Methods
3.1 Steps and actions performed
The project requirements demanded a number of steps and a series of actions to be performed to get the real life scenario. To meet this requirement following steps and actions were performed to complete this assignment by the team: 1. Identified the Potential Market Segment doing brainstorming session 2. Conducted Research on the Market Size, End users experience & expectations, Customers response Conducted Internet Search Contacted different associations & body Conducted Sample Survey – End Users, Customers through Questionnaires Discussion with some entrepreneurs and resource persons 3. Contacted Research on Rivals and Substitute Products Studied Existing Companies and their Products Studied Potential New Entrants 4. Conducted Research on Supplies and Partners Studied local resource availability & their salary expectation Studied international (NRB) resource availability & their salary expectation Studied marketing consultants and agencies Contacted Local Map authorities Studied Hardware & Device vendors 5. Conducted Financial Research and Analysis Investment Requirements (Yearly Cost) Revenue Earning Projection 6. Conducted Research on Resources & Capability Build up Organizational Process Standardization (ISO and CMMI certification) Domain Knowledge build up Technical Know & Skill Set build up

3.2 Information Gathered
As a part of market research following categories of informtion were gathered

1. Market Size & Revenue projections 2. Rivals, Substitute Products, Users’ Experience, Users’ Expectation 3. Suppliers, Partners Market Size & Revenue projections For determining market size and accordingly making the revenue projections an extensive study was conducted. A thorough Internet research and printed materials were studied. All the different categories of customers and users were contacted and interviewed to determine the potential market size. Following are the key information that were sought to determine market size for the sectors and projecting the revenues. For Search Customers: • • • • • • • • • • • • • • • Target sectors Market Size Category of Customers Advertising willingness Advertising Capacity

For Mobile Users Market Size Willingness to Get Search Information Willingness to Pay

For End users Market Size Frequency of using Internet Willingness to Search Willingness to Use Map

For GPS Map Customer Market Size Willingness to use GPS map Purchase capacity

Rivals, Substitute Products, Users’ Experience, Users’ Expectation A thorough study was conducted about the existing companies providing the similar services, the substitute products, how the users are experiencing this services and products, how is their expectations regarding these services and products, how would they respond to alternative solutions to their information requirement. 1. Existing Companies Providing Similar Service 2. Brand Image of Existing Companies 3. Existing Product Features 4. Income Source of Existing Companies

5. Users’ Experience of Current Products 6. Users’ current alternatives to meet those requirements 7. Users’ Expectation Suppliers, Partners A detailed investigation was conducted to determine the local and global availability of suppliers i.e. mainly the resource persons, how is there current status and expectations, different related organizations and hardware vendors, etc. 1. Local Resource Availability – Education, Skill Set, Domain Knowledge, Caliber 2. Resources’ Salary Expectation 3. Current Salary In the Local Market 4. High Performer Individuals’ Earning from Free Lance work 5. Marketing & Sale Professionals and Agencies 6. Government Agency (Survey & Map divisions) 7. Hardware Vendors for GPS devices 8. Feasibility and opportunity NRB involvement

3.3 Sources of Information
As a part of market research following categories of informtion were gathered 1. Market Size & Revenue projections 2. Rivals, Substitute Products, Users’ Experience, Users’ Expectation 3. Suppliers, Partners For gathering each categories of information we used different sources. These sources have been enlisted bellow: 1. Market Size & Revenue Projection a. Internet Research b. Personal Contacts c. Contact Respective Association/Body i. Bangladesh Aushad Shilpa Samity ii. Bangladesh Association of Banks iii. Insurance Association of Bangladesh iv. Ministry of Education Ministry of Education v. Association of Private Universities of Bangladesh (APUB) vi. Association of Public Universities (AAPU) vii. Bangladesh Garment Manufacturers & Exporters' Association Bangladesh viii. Buying House Association (BGBA) ix. Association of Telecom Operators of Bangladesh (ATOB)Association of Travel Agents of Bangladesh (ATAB)

x. Real Estate & Housing Association of Bangladesh xi. Bangladesh Association of Recruiting Agency (BAIRA) d. Sample Survey e. Resource Persons Opinion 2. Rivals, Substitute Products, User’s Experience, User’s Expectation a. Internet Research b. Personal Contacts c. Contacted existing Company Management Personnel d. End User’s Sample Survey e. Resource Persons Opinion 3. Suppliers and Partners a. Sample survey of Selected University Graduates b. Sample survey of best performer Companies Employees c. Sample survey of high performer free lancer d. Contacted Marketing Agencies e. Contacted Hardware Vendors f. Contacted NRBs from personal contacts g. Contacted NRBs using Internet Information

3.4 Design & Perform Survey
We have used keen observations and survey to meet our information needs. Doing the observations we gathered primary data about the target end users, target customers, their actions and the situations. Then we proceeded with survey. During survey we gathered descriptive information about the different target groups. Following are survey design at a glance: 1. Business Customer o o 3 Category of Customer (Large, Medium, Small) 35 companies from different sector (Large – 5, Medium – 10, Small – 20) 100 from different age group and category (Student-20, Service Holder(3045 age group)-50,Other-30) 3 Category of Customer (Large, Medium, Small income group) 15 Car owners from different Category (Large – 5, Medium – 5, Small – 5) 5 Company Contacted 10 Fresh Graduate & Students (BUET, DU, JU, NSU, EWU)

2. Mobile User o

3. GPS Map Car Device User o o

4. Existing (Rival) Company o 5. Human Resource o

o o

10 High Performer Employees (BJIT, KAAJ, Grameen Solutions, Grameen Phone, Standard Chartered Bank) 5 NRB

4. Study Findings
A detail investigation was conducted on Business Sector and Market size for Directory Search through Internet; Mobile Users for Directory and Route Information; GPS Car Navigation users; Rival, Substitute Products, Users Expericence and Expectations; Suppliers. The findings of these investigations have been shown in the following relevant tables:

4.1 Search Business Sector & Market Size (Direct Search – Internet)
The following table summarizes the potential business customer sectors, their approximate size in near future, their attitudes to the new service offerings. Table 1: Business Sector & Market Size (Directory Search – Internet)
SL No. Major Sector Descriptions Market Size Want to advertise Want to pay per year. TK. >= Target Market Size in 3 Years 1200 300

1 2

Food and Dining Hotels & Guest Houses Health and Medicine

Restaurants, Fast Food, Bakery Hotels, Resorts, Guest houses, Nightclubs Hospitals, Clinics, Diagnostic Centers & Pathological Labs Drug Stores, Salons, Beauty Parlor, Fitness Center Schools, Colleges and Universities, Training Institutions

2000 500

50% 70%

1000 3000

3

2000

50%

1000

1000

4

Personal Care

20000

30%

1000

10000

5

Education and Instruction

2000

40%

1000

500

6

Entertainment and Arts Real Estate & Constructions

Movies, Theaters, Parks, Museums, Art Galleries Developers, Builders & Contractors, Agents Banks, Insurance, Law Firms Government

500

50%

1000

300

7

800

70%

3000

500

8 9

Legal and Financial Community

1000 2000

40% 30%

2000 0

500 0

SL No.

Major Sector

Descriptions

Market Size

Want to advertise

Want to pay per year. TK. >=

Target Market Size in 3 Years

Organizations, Libraries, Religion, Club, Associations 10 Computers and Internet and Electronics Internet Services, Computer and Hardware, Software Developers 2000 50% 1000 1000

11 12

Automotive Foreign Mission & Development Partners NGOs Mobile & Telephones Sales & Service Newspapers & Magazines, TV, Radio Garments & Buying Houses Travel Agents, CNF & Courier, Manpower & Recruiting Agency Super Shops & Markets Retail Shops Other

1500 200

50% 30%

3000 3000

500 50

13 14 15

300 1000 150

30% 50% 40%

1000 1000 2000

100 500 50

16 17

700 500

30% 50%

3000 2000

300 200

18 19 20

200 20000 30000

50% 30% 30%

3000 1000 1000

100 10000 10000

4.2 Mobile and GPS Car Navigation Users
Following table shows the mobile users and GPS car navigation users market size and their attitudes towards this new service offerings. Table 2: Mobile & GPS Users Market Size SL No. Product/Service Market Size Want to avail Want to Pay Target Market Size

Mobile Users 1 2 Company Search info Location Search & 300000 100000 15% 10% 5 TK/info 5 TK/info 50000 30000

SL No.

Product/Service Route info

Market Size

Want to avail

Want to Pay

Target Market Size

GPS Map Users 1 Map embedded GPS device 20000 10% 20000 TK 5000

4.3 Rivals, Substitute Products, Users’ Experience and their Expectations
Following table shows the list of rivals and existing companies, the related substitute products, and users’ attitudes towards these products and services. Table 3: Rivals, Substitute Products, User’s Experience, and User’s Expectation
SL. No 1 Company Name Bangladesh Yellow Pages Product/Service Search Business Classifieds Category Local Brand Image Little Known Source of Income Advertisement Users Experience Users not aware of the service. Not happy with current Service. 2 Business Info Bangladesh Search Business Directory Local Not known to the mass user WebSite Design Web Hosting E-Commerce Solutions Advertisement 3 Velki.com Search Business Directory Local Not known to the mass user Internet shops for deshi items, purchase and deliver either in Bangladesh or abroad. Business online portal. Advertisement. Online Trading Advertisement Users not aware of the service. Users not aware of the service.

4

ClickBD.com

Online Search Sell & Buy – Online Market Place Online Search Sell & Buy – Online Market Place

Local

Little known

Users not aware of the service. Not happy with current Service.

5

Cell Bazaar

Local

Well know. Making Brand Image.

Online Trading Advertisement Mobile

Users not aware of the service. Some what happy with current Service. Users aware of the service. Very frequently used. Not available local business

6

Google Search

Any purpose Search

Global

Strong Brand for General Search

Advertisement & Many more

SL. No

Company Name

Product/Service

Category

Brand Image

Source of Income

Users Experience directories

7

Yahoo Search

Any purpose Search

Global

Strong Brand for General Search

Advertisement & Many more

Users aware of the service. Very frequently used. Not available local business directories Users aware of the service. Very frequently used. Not available local business directories

8

MSN Search

Any purpose Search

Global

Strong Brand for General Search

Advertisement & Many more

4.4 Suppliers availability and attitudes
Following table shows the different categories resource availability, their current status and future expectations. Table 4: Suppliers availability and attitudes SL No. Category of Resource Current Expected Salary/Earning Salary/Earning Expected Growth Willing to join/stay Software Company 30%

1

Fresh Graduate/Senior Students High Performer Engineer ( 3 years experience)

-

40,000

30%

2

45,000

60,000

30%

50%

3

High Performer (5 years experience)

60,000

80,000

25%

60%

4 5

Free Lance Engineering Experience NRB Engineer 200,000 20% 30%

5. Financial Analysis - Investment and Revenue Projection
Based on the Study result and assumed growth and market size the financial projections have been made. We have determined the investment requirement and revenue generation for first 3 years (from local market) and next 2 years (from local and global market).

5.1 Sources of Revenue for Local Market
There would be the different type of customers for revenue from the local market. These are described bellow: 1. Searchable Business Customer There would be three type of income from the searchable business customer Customer will pay to be found in Privileged Search. The search would be point based. Company’s probability will increase to come on top based on point. Customer will pay for advertising themselves in search result like giving Logo, Ad, Profile, Info Site, etc. Customer will pay for making design and development of company’s info site and ad that would be found in the search result and/or from the search link. 2. Mobile User (End User) There would be two different types information the mobile user can seek and pay thereby to get them by SMS Company Address and basic info Route Information 3. Car Owner The car/vehicle owner will pay for loading GPS enabled Map into their GPS Navigation Device and regular update of the GPS enabled Map.

5.2 Sources of Revenue for Global Market
Following could be sources of revenue from the global market: 1. Engineering Services (Development & Maintenance) for Search & Map 2. Engineering Services (Development & Maintenance) for Advertisement Sales Management 3. Ads by Google or other Online Advertisement

5.3 Need for expenditures and Investment
There would be different opertional expenditures and would require investments for growth and developments. Followng are the sectors at a glance: 1. Office Rent, Utilities & Maintenance 2. Hardware, Equipments & Internet 3. Salary & Allowances 4. Marketing & Consultation Services, Data & Map acquisitions 5. Advertising and Promotions for Branding 6. Training & Skill set build up 7. ISO & CMMi Certifications

5.4 Team Structures along with Yearly Salary and Allowances
Following table shows the first year’s team structure and the yearly salary and allowance for the 5 years. The average salary and allowances have been lowered in the second to the

subsequent years due to increased number of inclusion of junior and fresh gradates . Table 5: First Year’s Team Structure Along with Yearly Salary & Allowances Year Resource Number Average Salary & Allowances per month BDT 1 2 2 200,000 75,000 50,000 Monthly Salary & Allowance Payable BDT 200,000 150,000 100,000 Yearly Payable BDT

1st

CTO NRB Senior Engineer Mid Level Engineer Junior Engineer Marketing Finance & Admin Total

3 1 1 10 20 50 70 100

35,000 40,000 30,000 62,500 55,000 55,000 55,000 60,000

105,000 40,000 30,000 625,000 1,100,000 2,750.000 3,850,000 6,000,000 7,500,000 13,200,000 33,000,000 46,200,000 72,000,000

2nd 3rd 4th 5th

All All All All

5.5 Customers and Revenue Projections
Followng table shows the expected paid customers and corresponding revenue projections for the 5 years time line. Table 6: Customers and Revenue Projections Year Paid Customer Expected Revenue (* 100000 BDT) 1st 2
nd

0 5000 (Search) + 10000 (Mobile) + 500 (GPS Map) 20000 (Search) + 90000 (Mobile) + 3000 (GPS Map) 25000 (Search) + 150000 (Mobile) + 4000 (GPS Map) + 2 (Outsourcing)

0 100+5+ 25 =130 300+45+ 150=495 350+70+ 200+140 =760

3rd 4th

5th

30000 (Search) + 200000 (Mobile) + 4500 (GPS Map) + 4 (Outsourcing)

450+100+ 260+320 =1130

5.6 Investments & Revenue Projections
Following table shows the investments & expenditures, the projected revenues and hence net and accumulated Profit over the 5 years time period. Table 7: Investments & Expenditures and Revenue Projections Year Expected Revenue (* 100000 BDT) Investments & Expenditures (* 100000 BDT) Office Rent, Utilities & Maintenance 0 130 495 760 1130 6 8.4 12 18 21.6 Salary & Allowanc es 75 132 330 462 720 Other Investme nt 11 18 30 50 70 Total Net Income (* 100000 BDT) Accumulated Income (* 100000 BDT)

1st 2
nd

86 158.4 339 530 811.6

(86) (28.4) 123 230 298.4

(86) (104.4) 18.6 248.6 547

3rd 4th 5th

Following figure (Figure 3) demonstrates the yearly Investment & Expense, Revenue and Accumulated profit

Revenue, Expense & Profit
1200 1130 1000 800 600 495 400 339 200 0 -200 86 1 0 -86 230 158 130 2 -28 123 3 4 5 298 530 811 Year Investments & Expense Revenue Accumulated Profit

760

Figure 3: Graphical Representation of yearly Investment & Expense, Revenue and Accumulated profit Following figure (Figure 4) demonstrates the Revenue distribution of Local and Global Market over the Years.
Revenue Distribution Over the Years
100% 90% 80% Percentage 70% 60% 50% 40% 30% 20% 10% 0% Global Revenue Local Revenue Year Global Revenue Local Revenue Year

1 0 0 1

2 0 130 2

3 0 495 3 Year

4 140 620 4

5 320 810 5

Figure 4: Graphical Representation of Revenue distribution of Local and Global Market over the Years

6. Strategic Analysis
6.1 Economic Features & Strategic Weapons for competitive advantage
Market Size & Growth Market size is suitable and prospective to penetrate and grow. Due to growing internet users, mobile users and car owners, the market will grow steadily for many years. Position in the Life Cycle Both Search and Map industry are at early stage. Here is huge scope to grow and make money. Number of Rivals As we have found, the rivals are less than 10. And their ability to compete is not strong enough. Here is very good chance to stake out strong position in the market. Buyers Needs and Requirements This is new idea of business and uses of information. This is not yet need for the customers and buyers. But, the need will be created when there will be good demonstration. Need to concentrate on end users satisfaction and attraction. Need to bring into culture of using this service. Production capacity Production capacity needs to be continuously improved. Need regular improvement of capability. Need to keep on hiring expert people in this sector. Affordable prices All the customers will be added in Search database for free. In the 1st year no payment will be taken from the customers. From the 2nd year reasonable payment will be taken from the prospective customers. Charge less – We will charge less than the value will be created for the customer. Customer will always in win situation. Free customer – We will enrich our Search database adding the free customers for giving the end users desired result. For mobile user we will charge nominal amount For Car GPS user, we will make marginal profit Degree of Product Differentiation We will provide different outstanding features that end users will really like. We will make a strategic plan for providing clearly distinguishable features and services than competitors. The product will be highly superior then any other similar products. No other products would be comparable in terms of product features, functions and quality. Users’ experiences and responses will be highly valued. Product Innovation Continuously concentrate on product innovation for providing the best services to the market and stake out strong position. Build Innovation team – To build a strong marketing research team for finding more features to create customer value and users satisfaction. People hiring – We will hire some intellectual people or consultants for generating innovative ideas for this product. Custom made products

We will provide different types of facility of our customer to create and change their ad, profile, info site. We will develop some template to create customer home page within short time. We just need to change very minor to provide this service Pace of Technological Change We will concentrate on future and long term prevailing technology. We will develop the solutions which can be portable to new technological platform with minimum effort. Vertical Integration Initially should be vertically integrated. But over the time should be gradually disintegrated Stronger brand image Within one year our services will be known in local market for achieving fantastic brand image. We have developed a plan to create our brand image which includes Big budget – We will spend huge amount of money for promoting our service. Focus on our Target Audience – We will try to capture end users and potential customers’ attention. Keep it short – We will communicate our customers even in a few words. We will try to create services name that consist of not more than 5 words. Make them concise and short to avoid making our advertising service name too wordy. Simplicity is the mantra – We will select commonly used words for branding creation. The idea is to make our branding name unforgettable not incomprehensible. Effective Logo – One of the most efficacious ways to make our branding to work it with a logo that would enhance our services branding imagery. Lade them with benefits – We will lade our rivals by providing maximum facility, feature and providing more business value and user’s satisfaction to our end users and customers. Memorable - Our branding would not be rewarding unless it sticks in the long-term memory of your readers. We will try and make a similar effect in the mind of our potential customers with our brand. Scope of Competitive Rivalry The product would unique in the market from the uses perspective. Company will have strong brand name. Rival will be always under dog. Learning Curve World class team will be built up. Learning curve will be less. Better product performance Ensure better product performance doing standard SQA. Continuously monitor and improve based on user’s experience Higher quality The qualitative features will include - Easy to use, Error free Service – Focus is Quality, Always up and running, Best effort to find user’s search. Bigger/better dealer network We will be considered maximum focused on service marketing and try to work with big dealer for creating a strong position in local marker. Higher level of advertising

We will invest more money to advertise for promoting our services. Print Media – We will advertise in News paper and different periodicals. Radio/TV- We will make Radio & TV commercial and advertise in Radio & TV for attracting end users and customers. Participate In different fair- We will participate in our local and international software fair. Third party marketing team – If it is needed then work with outer marketing company to promote our services. Online marketing – To publish advertise through very popular online sites of Bangladesh. Seminars, Press Conference, Press Release –We will conduct seminars, symposiums, press conference, etc. to let the users about our product and services. Better customer service We will provide very good customer service. Because we believe that the customers’ loyalty depends upon their satisfaction with our product/services quality and also high quality customer services. We will build a customer services/support team for different kinds of customer to provide round the clock customer service.

6.2 Environment Context
Micro environment 1. The Company Initial company will have flat structure to grow the company. But, in course of time, it will be little hierarchical rather flat. 2. Suppliers Primarily the suppliers would be the reputed local institutions (BUET, DU, JU, NSU, etc.). For meeting the advance resource need, NRBs will be contacted and employed. For other supplies, consultations, Map and documents, etc. local resource will be used. 3. Marketing intermediaries Different marketing intermediaries will be used for marketing and promotional purposes. Creating awareness to the end users and to the business customers. For selling advertisements. selling devices, etc. different marketing intermediaries will be used in future. 4. Customers Current paying customer base would be different business organizations, mobile users and GPS users. Gradually all the companies/organizations/institutions should be included in the customer data base, starting from Dhaka and other major cities. GPS map will be made also ready for all the major city. 5. Competitors The company will make strong entry barrier based on differentiating features as high quality, reliable performance, excellent service, attractive styling, technological superiority and good value for the money. Macro environment 1. Demographic environment

Bangladesh, especially Dhaka, is fully populated and over crowed. Information need is part of daily life. Bringing the mechanism of providing the information for them easily, is a big opportunity of business and can be exploited. 2. Economic environment The economic standard of the Bangladesh, especially Dhaka city people have increased. They are will to pay for bringing comfort in their life. Thousands of people are using their own Car. Each year many new car are adding. So, it is a big market to penetrate with new idea. 3. Technological environment Technological environment has been improved. Around 1 million people are using Internet, 40 million people are using mobile. Due to the uses of Internet in mobile, the Internet users are increasing rapidly. So, it has becoming big market. 4. Political environment 5. Cultural environment Culturally, we are not self dependent for any purpose. But, the thins are changing. People are getting busy in their life. People are not very good giving correct information, direction of location, etc very well. They are always having problem for finding new office, new place. So, here is a chance of good business. 6. Global trade environment The local market is getting important and getting bigger. Therefore, global companies are trying to do business here. We could be the partner here.

6.3 Strategic options and Recommendations
1. Stronger skill set and capabilities Great teams build great companies, so the company will seek to attract, develop and retain leading talents. The company policy would provide them State of the Art Training and turned them world class resources. Renowned professionals from home and abroad will be used to conduct the trainings. Employee Benefits or compensation packages would be competitive for attracting and retaining leading talents. 2. Quality Assured Product & Service The company would be very honest and fair in its dealings with customers, partners, shareholders and each other. Therefore, the company would be dedicated to provide cutting edge products and services to its clients. It will follow international standard quality management system and regularly upgrades itself for better performance. Quality should be its main focus and there by profit will be the eventual outcome. 3. Competitive Price The Products & Service would be designed & developed in a way that it becomes a cost leader in this sector in Bangladesh and abroad. Proper Project Management and Implementing Component Oriented Design concepts would be employed to lower its development cost. It should be able to provide state of the art products at a competitive price for an ever-increasing clients. For being able to provide competitive price its reusable assets would be increased. 4. Customer Support Customer satisfaction is paramount to business success, so it would strive to exceed customers’ expectations. It would try its best to provide up-to-date services to its loyal

customers. It would provide adequate after sales services and it would always keep in close contacts with its customers. It will always try to increase its Brand image in the software market in Bangladesh and abroad. 5. Foreign Partnership For providing better service and quality products, it has a policy to collaborate with foreign companies. It provides comprehensive customer services for those products so that its customer can rest assured of everlasting maintenance support from this company. 6. Building & Capitalizing Intellectual Assets The company will enrich its intellectual assets and capitalized those as much as possible to attain competitive advantage in the local as well as foreign market. This company will standardize its development, organization, marketing and management processes. It will upgrade itself to the CMMI level -3 in 3 years. Based on this achievement it will be more competitive in local market and as well as in the international market in terms of price, quality and delivery time. 7. Continuous Improvement The Envisioned Company aspires to lead by setting the standards that others emulate. Therefore, it will make continues improvement in all of its departments – development, management, marketing and training. It would be results oriented, should make continuous improvement through aggressive and attainable goals. 8. Stronger innovation capability The Envisioned company would be committed to innovation, because innovation can transform the way, the customers do business, the users use the system. The company will always come up with innovative ideas, like it has focused right now. This will give the envisioned company competitive advantages over other companies.

7. Appendixes
7.1 Questionnaire for business customer
No. 1 Question What types of business you are doing ? Mention Category. For example • Food and Drinking • Hotel and Guest houses • Health and Medicine • Personal care etc. < --- Answer ---> 2 Do you use Internet? < --- Answer ---> 3 Do you know about Yellow Pages? < --- Answer ---> 4 Have you ever advertised? If yes which media • • • • • • Print media. Internet Radio Television Billboard Or any other

< --- Answer ---> 5 Do you have any info site in Internet? < --- Answer ---> 6 Do you like to advertise throw Internet? < --- Answer ---> 7 How do you like to pay? • • • Per Monthly Per Year Or any other

< --- Answer ---> 8 How much you want to pay for a year?

< --- Answer ---> 9 Make a comment about your experience and expectation? < --- Answer --->

7.2 Questionair for Mobile Users for company search
No. 1 Question Do you use “Push Pull” service? < --- Answer ---> 2 Do you use Mobile (make call) when you need to find any company address? < --- Answer ---> 3 How do you find any unknown company address? < --- Answer ---> 4 Are you interested to use mobile for getting any company address? < --- Answer ---> 5 How do you like to pay? • • • • Per Monthly Per Year Per information Or any other

< --- Answer ---> 6 How much you like to pay? < --- Answer ---> 7 Any experience? < --- Answer ---> 8 Any expectation? < --- Answer --->

7.3 Questionare for Mobile Users for location search
No. Question

1

Do you use “Push Pull” service? < --- Answer --->

2

Do you use Mobile (make call) when you need to find any location? < --- Answer --->

3

How do you find any unknown location? < --- Answer --->

4

Are you interested to use mobile for finding any company address? < --- Answer --->

5

How do you like to pay? • • • • Per Monthly Per Year Per information Or any other

< --- Answer ---> 6 How much you what to pay for getting this types of service? < --- Answer ---> 7 Any experience? < --- Answer ---> 8 Any expectation? < --- Answer --->

7.4 Questionaire for GPS Map Users
No. 1 Question Do you want to use Route Map? < --- Answer ---> 2 What do you do when you cannot find your destination? < --- Answer ---> 3 How to find any unknown location? < --- Answer ---> 4 Do you want to use GPS device for Route map? < --- Answer --->

5

Do you want to spend for that? < --- Answer --->

6

Which way you like to pay? • • • • Per Monthly Per Weekly Per Information Or any other

< --- Answer ---> 7 How much you want to pay for service? < --- Answer ---> 8 Any experience or expectation? < --- Answer --->

8. References
http://www.bizbangladesh.com/business-directory/index.php http://www.velki.com/link.asp?cat=140 http://www.clickbd.com/ http://www.e-zest.net/Outsourcing_Central/outsourcing_profit.htm http://www.marketwatch.com/news/story/Research-Markets-Gain-InsightIT/story.aspx?guid=%7B61271B30-C13E-46CC-A792-6748CBBF2680%7D http://www.marketwatch.com/news/story/Fitch-IT-Spending-DeclineDominates/story.aspx?guid=%7BC317D929-3890-4E5B-83DD-3F2689F8DEBE%7D http://www.ciol.com/Semicon/SemiSpeak/Interviews/Outlook-2009-Top-global/Indiansemicon-trends/51208113421/0/ http://callcenterinfo.tmcnet.com/analysis/articles/46373-bpo-not-affected-downturn.htm http://businessmirror.com.ph/index.php?option=com_content&view=article&id=2917:backoffice-outsourcing-growth-area-for-delivery-services-sector&catid=24:companies&Itemid=59 http://news.medill.northwestern.edu/chicago/news.aspx?id=108569 http://www.ciol..com/Enterprise/Outsourcing/News-Reports/Global-outsourcing-andoffshoring-trends-for-2009/141108112665/0/


								
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