Welcome to Project Idea Presentation SEN 650
S.M. Saiful Islam S M S if l I l
Objective
To select a business idea to build a company targeting the global market using l t ti th l b l k t i local l market as spring board and continuously make growth and improvement improvement. Support the business idea with market research evidence Providing the Financial plan for Investment and Revenue
Business Idea
Find it easy!
Build a leading search company in Bangladesh to make it easy to find people, businesses, products and location using Internet, mobile and GPS services.
Business Id contd.. B i Idea td
>>Local Market
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 market, make a culture of using online search and map in everyday use.
Business Idea contd..
>>Global Market
Ultimate target is to provide the engineering (development & ) global search and map p maintenance) services to the g companies like Google, Yahoo! Search, AOL Search, Ask, Alta Vista, Fast, Gigablast, Netscape Search, Snap, Lycos, Eniro (Europe). Provide P id engineering services (d i i i (development & maintenance) of l t i t ) f their advertisement sales system. Target lot of industrial and professional search companies like Blue Book, Yellow Pages, Industrial Quick Search Zycon All Book Pages Search, Zycon, The Industrials, Engineers Edge, Industrial Directory etc.
Local Market Offerings
Customer Search Result (Left-Free, Right-Paid)
Local Market Offerings L l M k t Off i
Route Map (Left), GPS Device for Car (Right)
Local Market Offerings
Company/Business Search (mobile enabled)
– – – – – – – – – –
Show the company/business address Show Ad, Info site & Profile Show company in Map Find the location in the Map Find Route (From address –To address) Route information – Distance, Approximate travel Time, Available Transportation – Bus, mini bus, etc Print Route Map Pi tR t M Company Address Route Information Map embedded software for GPS Car device
Location Search & Route Map (mobile enabled)
Get info by SMS Customer – GPS Map for Car Device
Materials & Methods
Steps and actions Performed
Identified the Potential Market Segment doing brainstorming session Conducted Research on the Market Size, End users experience & expectations, Customers p response
– – – –
Conducted Internet Search Contacted different associations & body Conducted Sample Survey – End Users, Customers through Questionnaires Discussion with some entrepreneurs and resource persons Studied Existing Companies and their Products Studied Potential New Entrants Studied local resource availability & their salary expectation Studied international (NRB) resource availability & their salary expectation Studied St di d marketing consultants and agencies k ti lt t d i Contacted Local Map authorities Studied Hardware & Device vendors Investment Requirements (Yearly Cost) Revenue Earning Projection Organizational Process Standardization (ISO and CMMI certification) Domain Knowledge build up Technical Know & Skill Set build up
Contacted Research on Rivals and Substitute Products
– –
Conducted Research on Supplies and Partners
– – – – –
Conducted Financial Research and Analysis
– –
Conducted Research on Resources & Capability Build up
– – –
Information Gathered
>>Market Size & Revenue projections
For Search Customers:
– – – – –
Target sectors Market Size Category of Customers Advertising willingness Advertising Capacity Market Size Willingness to Get Search Information Willingness to Pay Market Size Frequency of using Internet Willingness t S Willi to Search h Willingness to Use Map Market Size Willingness to use GPS map Purchase capacity
For Mobile Users
– – –
For End users
– – – –
For GPS Map Customer
– – –
Information Gathered Contd Contd..
>>Rivals, Substitute Products, Users’ Experience, Users’ Expectation
Existing Companies Providing Similar Service Brand Image of Existing C B dI f E i ti Companies i Existing Product Features Income Source of Existing Companies Users’ Experience of Current Products Users Users’ current alternatives to meet those requirements Users’ Expectation
Information Gathered C Contd.. d
>>Suppliers, Partners Local Resource Availability – Education, Skill Set, g , Domain Knowledge, Caliber Resources’ Salary Expectation Current Salary In the Local Market High Performer Individuals Earning from Free Lance Individuals’ work Marketing & Sale Professionals and Agencies Government Agency (Survey & Map divisions) Hardware Vendors for GPS devices Feasibility and opportunity NRB involvement
Sources of Information
Market Size & Revenue Projection
– – –
Internet Research Personal C t t P l Contacts Contact Respective Association/Body
Bangladesh Aushad Shilpa Samity Bangladesh Association of Banks Insurance Association of Bangladesh Ministry of EducationMinistry of Education Association of Private Universities of Bangladesh (APUB) Association of Public Universities (AAPU) Bangladesh Garment Manufacturers & Exporters' AssociationBangladesh Buying House Association (BGBA) Association of Telecom Operators of Bangladesh (ATOB)Association of Travel Agents of Bangladesh (ATAB) Real Estate & Housing Association of Bangladesh Bangladesh Association of Recruiting Agency (BAIRA)
– –
Sample Survey Resource Persons Opinion
Sources of Information Contd..
Rivals, Substitute Products, User’s Experience, User’s Expectation
– – – – –
Internet Research Personal Contacts Contacted existing Company Management Personnel End User’s Sample Survey Resource Persons Opinion Sample survey of Selected University Graduates Sample survey of best performer Companies Employees Sample survey of high performer free lancer Contacted Marketing Agencies Contacted Hardware Vendors Contacted NRBs from personal contacts Contacted NRBs using Internet Information
Suppliers and Partners
– – – – – – –
Design Perform S D i &P f Survey
Sampling used
Business Customer
– –
3 Category of Customer (Large, Medium, Small) 35 companies from different sector (Large – 5 Medium – 10 Small – 20) 5, 10, 100 from different age group and category (Student-20, Service Holder(30-45 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) 10 High Performer Employees (BJIT, KAAJ, Grameen Solutions, Grameen Phone, Standard Chartered Bank) 5 NRB
Mobile User
–
GPS Map Car Device User
– –
Existing (Rival) Company
–
Human Resource
– – –
Study Findings
Business Sector & Market Size (Directory Search – Internet)
SL No. 1 2 3 Business Sector Food and Dining Hotels & Guest Houses Health and Medicine Descriptions 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 Movies, Theaters, Parks, Museums, Art Galleries Developers, Builders & Contractors, Agents Banks, Insurance, Law Firms Government Organizations, Libraries, Religion, Club, Associations Internet Services, Computer and Hardware, Software Developers Market Size 2000 500 2000 Want to advertise 50% 70% 50% Want to pay per year. TK. >= 1000 3000 1000 Target Market Size in 3 Years 1200 300 1000
4
Personal Care
20000
30%
1000
10000
5
Education and Instruction Entertainment and Arts Real Estate & Constructions Legal and Financial Community
2000
40%
1000
500
6 7 8 9
500 800 1000 2000
50% 70% 40% 30%
1000 3000 2000 0
300 500 500 0
10
Computers and Internet and Electronics
2000
50%
1000
1000
Study Findings Contd..
Business Sector & Market Size (Directory Search - Internet)
SL No. Business Sector Market Size Want to advertise Want to pay per year. TK. >= Target Market Size in 3 Years
11 12
Automotive Foreign Mission & Development Partners NGOs Mobile & Telephones Sales & Service Newspapers & Magazines, TV, Radio Garments & Buying Houses
1500 200
50% 30%
3000 3000
500 50
13 14
300 1000
30% 50%
1000 1000
100 500
15
150
40%
2000
50
16
700
30%
3000
300
17
Travel Agents, CNF & Courier, Manpower & Recruiting Agency Super Shops & Markets Retail Shops Other
500
50%
2000
200
18 19 20
200 20000 30000
50% 30% 30%
3000 1000 1000
100 10000 10000
Study Findings Contd..
Mobile & GPS Users Market Size
SL No. Product/Service Market Size Want to avail Want to Pay Target Market Size
Mobile Users 1 Company Search info 300000 15% 5 TK/info 50000
2
Location Search & Route info
100000
10%
5 TK/info
30000
GPS Map Users 3 Map embedded GPS device 20000 10% 20000 TK 5000
Study Findings Contd.. Contd
Rivals, Substitute Products, User’s Experience, User’s Expectation
SL. No 1 Company Name Bangladesh Yellow Pages Business Info Bangladesh 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. Service Users not aware of the service.
2
Search Business Directory
Local
Not known to the mass user
WebSite Design Web Hosting E-Commerce Solutions Advertisement Internet shops for deshi items, purchase and deliver either in Bangladesh or abroad. Business online portal. Advertisement. Online Trading Advertisement O Online Trading e d g Advertisement Mobile Advertisement & Many more Advertisement Ad ertisement & Many more Advertisement & Many more
3
Velki.com
Search Business Directory
Local
Not known to the mass user Little known
Users not aware of the service.
4
ClickBD.com
Online Search Sell & Buy – Online Market Place O Online Se c Sell & Buy – e Search Se uy Online Market Place Any purpose Search
Local
Users not aware of the service. Not happy with current Service. Use s o w e of e service. Users not aware o the se v ce. Some what happy with current Service. Users aware of the service. Very frequently used. Not available local business directories Users a are of the ser ice Ver aware service. Very frequently used. Not available local business directories Users aware of the service. Very frequently used. Not available local business directories
5
Ce Cell Bazaar
Local oc
We Well know. ow. Making Brand Image. Strong Brand for General Search Strong Brand for General Search Strong Brand for General Search
6
Google Search
Global
7
Yahoo Search
Any p rpose An purpose Search
Global
8
MSN Search
Any purpose Search
Global
Study Findings Contd..
Suppliers
SL No. Category of Resource Current Salary/ g Earning Attractive Salary/Earning Expected Growth Willing to join/stay Software p y Company
1
Fresh Graduate/Senior Students High Performer Engineer ( 3 years experience) High Performer (5 years experience) Free Lance Engineering
-
40,000
30%
30%
2
45,000
60,000
30%
50%
3
60,000
80,000
25%
60%
4
70,000
-
4
Experience NRB Engineer
-
200,000 200 000
20%
30%
Economic Features & Weapons
to enter & develop competitive advantage
Market Size & Growth
–
Market size is suitable and prospective to penetrate and grow. Due to growing inter users, mobile users and car owners the market will grow steadily for many users owners, years. Both Search and Map industry are at early stage. Here is huge scope to grow and make money. As we have found, the rivals are less than 10. And their ability to compete is not strong enough. Very good chance to stake out strong position in the market. This is new idea of business and uses of information. This is not yet need for the customers and buyers. But, 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 thi service. lt f i this i Production capacity needs to be continuously improved. Need regular improvement of capability. Need to keep on hiring expert people in this sector.
Position in the Life Cycle
–
Number of Rivals
–
Buyers Needs and Requirements
–
–
Production capacity
–
Economic Features & Weapons
to enter & develop competitive advantage Contd..
Affordable prices
– – – – –
All the customer will be added in Search database for free. In th I the 1st year no payment will b t k t ill be taken. 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 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 user 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 competitors. The product will be highly superior then any other similar products. No other products would comparable in terms of product features, functions and quality. Users experiences and responses will be highly valued.
Economic Features & Weapons
to enter & develop competitive advantage Contd..
Product Innovation
–
Continuously concentrate on product innovation for providing the best services to the market and stake out strong position 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 C t d d t
– –
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 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. Initially should be vertically integrated. But over the time should be gradually disintegrated
Pace of Technological Change
–
Vertical Integration
–
Economic Features & Weapons
to enter & develop competitive advantage Contd..
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 p 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. 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 t our f ilit f t d idi b i l d ’ ti f ti to end users and customers. – Memorable - Our branding would not be rewarding unless it sticks in the longterm memory of your readers. We will try and make a similar effect in the mind of our potential customers with our brand.
Economic Features & Weapons
to enter & develop competitive advantage Contd..
Scope of Competitive Rivalry
–
The product would unique in the market from the uses perspective. Company will have ha e strong brand name Ri al will be al a s under dog name. Rival ill always nder dog. World class team will be built up. Learning curve will minimum. Ensure better product performance doing standard SQA Continuously monitor and improve based on user’s experience Easy to use Error free Service – Focus is Quality Always up and running Best effort to find user’s search We will be considered maximum focused on service marketing and try to work with big dealer for creating a strong position in local marker.
Learning Curve
–
Better product performance p p
– –
Higher quality
– – – –
Bigger/better dealer network
–
Economic Features & Weapons
to enter & develop competitive advantage Contd..
Higher level of advertising – We will invest more money to advertise for promoting our services.
Print Media – We will ad ertise in Ne s paper and different periodicals ill advertise News 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 customers’ 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.
–
Financial Analysis Fi i lA l i Investment and Revenue Projection
Based on the Study result and assumed growth and market size th fi th d k t i the financial i l projection 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 ) y ( and global market).
Source of Revenue
for Local Market Customer (Business) – Pay to be found in g Privileged Search
– – –
Point based search. Company’s probability will increase to come on top based on point. Advertising – Logo, Ad, Profile, Info Site, etc Design d development of company’s i f site and ad D i and d l t f ’ info it d d Company Address Route I f R t Information ti Map embedded software for GPS Car device
Mobile User (End User) – Pay to get info by SMS
– –
Car Owner – Pay for GPS Map for Car Device
–
Sources of Revenue
for Global Market
Global Market
–
–
–
Engineering Services (Development & Maintenance) for Search & Map Engineering Services (Development & Maintenance) for Advertisement Sales Management Ads by Google or other Online Advertisement
Sectors for Expenditure & Investment
Office Rent, Utilities & Maintenance Hardware, E i H d Equipments & I t t Internet t Salary & Allowances Marketing C M k ti & Consultation S i lt ti Services, D t & Data Map acquisitions Advertising and Promotions for Branding Training & Skill set build up ISO & CMMi Certifications
First Year’s Team Structure
Along with Salary & Allowances
Year Resource Number Average Salary & Allowances per month – BDT 200,000 75000 50000 35000 40000 30000 Monthly Salary & Allowance Payable BDT 200,000 150,000 100,000 105,000 40,000 30,000 625,000 625 000 7,500,000 7 500 000 1st Year Payable BDT
1
CTO - NRB Senor Engineer Mid Level Engineer Junior Engineer Marketing Finance & Admin
1 2 2 3 1 1 10
Total
Investments & Expenditures and I t t E dit d Revenue Projections
Year Employes Paid Customer Expected Revenue (* 100000 BDT) Investments & Expenditures (* 100000 BDT) Office Rent, Utilities & Maintenance 1st 2nd 10 20 0 5000 (Search)+ 10000 (Mobile)+ 500 (GPS Map) 20000 (Search)+ (S h)+ 90000 (Mobile)+ 3000 (GPS Map) 25000 (Search)+ 150000 (Mobile)+ 4000 (GPS Map) + 2 (Out Sourcing) 30000 (Search)+ 200000 (Mobile)+ 4500 (GPS Map) + 4 (Out Sourcing) 0 100+5+25=130 0.5 * 12 = 6 0.7 * 12 = 8.4 Salary & Allowances Other Investment 11 18 Total Net Income/ Expense (* 100000 BDT) (86) (28.4) Accumulated Income /Expense (* 100000 BDT)
10 *0 62.5 * 12=75 20 * 0.55 * 12=132
86 158.4
(86) (104.4)
3rd 3d
50
300+45+150=495 300+45+150 495
1 * 12 = 12
50 * 0.55 * 12=330 0 55 12 330
30
339
123
18.6 18 6
4th
70
350+70+200+140= 760
1.5 * 12 = 18
70 * 0.55 * 12=462
50
530
230
248.6
5th
100
450+100+260+320= 1130
1.8 * 12 = 21.6
100 * 0.60 * 12=720
70
811.6
298.4
547
Investments & Expenditures, Revenue I t t E dit R & Profit Projections
Revenue, Expense & Profit
1200 1130 1000 800 600 495 400 339 200 0 00 -200 86 1 0 -86 230 158 130 2 -28 123 3 4 5 298 530 811 Year Investments & Expense Revenue Accumulated Profit
760
Revenue from Local & Global Market
Revenue Distribution Over the Years
100% 90% 80% Percen ntage 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
Thinking Environment Context
Micro environment
The Company
–
Initial company will have flat structure to grow the company. But, in course of time, it will be little hierarchical rather flat. 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. Different marketing intermediaries will be used for marketing and promotional purposes Creating purposes. awareness to the end users and to the business customers. For selling advertisements. selling devices, etc. different marketing intermediaries will be used in future. 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, base starting from Dhaka and other major cities GPS map will be made also ready for all the major cities. city. 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.
Suppliers
–
Marketing intermediaries
–
Customers
–
Competitors
–
Thinking Environment Context contd..
Macro environment
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 b exploited. b i d be l it d 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. 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. Political environment Culturally, e C lt rall we are not self dependent for any purpose. But, the thins are changing People are an p rpose B t changing. 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. The local market is getting important and getting bigger. Therefore, global companies are trying to do business h d b i here. W could b th partner h We ld be the t here.
Economic environment
–
Technological e ec o og ca environment o e t
–
–
Cultural environment
–
Global trade environment
–
Strategic ti St t i options and d Recommendations
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. The co pa y would be very honest a d fair in its dea gs with custo e s, pa t e s, e company ou d e y o est and a ts dealings t 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. 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 increased.
Quality Assured Product & Service
–
Competitive Price
–
Strategic ti St t i options and d Recommendations Contd..
Customer Support
–
Customer satisfaction is paramount to business success, so it would strive to exceed customers customers’ expectations. It would try its best to provide up-to-date services to its loyal up to date 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. For p o d g bette se ce a d qua ty p oducts, it has a po cy to co abo ate with o providing better service and quality products, t as policy collaborate t foreign companies. It provides comprehensive customer services for those products so that its customer can rest assured of everlasting maintenance support from this company. The company will enrich its intellectual assets and capitalized those as much as p y p 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.
Foreign Partnership
–
Building & Capitalizing Intellectual Assets
–
Strategic ti St t i options and d Recommendations Contd..
Continuous Improvement
–
The Envisioned Company aspires to lead by setting the standards p y p y g 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. The Envisioned company would be committed to innovation, because innovation can transform the way, the customers do business, th users use the system. The company will always b i the th t Th ill l come up with innovative ideas, like it has focused right now. This will give the envisioned company competitive advantages over other companies.
Stronger innovation capability
–
Questions
The End Thank You Yo