NTADBM Group 9 Shopmates

download NTADBM Group 9 Shopmates

of 24

Transcript of NTADBM Group 9 Shopmates

  • 8/4/2019 NTADBM Group 9 Shopmates

    1/24

    1

    New Technology Applications

    Design & Business Models(NTADBM)

    IIM NID joint courseJuly to September 2011

    Chetan PatilSiddartha Prasad

    Aanchal SoodManasi Agarwal

    Group 9

  • 8/4/2019 NTADBM Group 9 Shopmates

    2/24

    2

    CONTENTS

    1. Objective Of The Report ....3

    2. Research

    2.1. Overview Of The Mobile Industry...4

    2.2 .Trends In Mobile Industry.....8

    3. Application

    3.1. Introduction To Shopmates10

    3.2 Detailed Working11

    3.3 User Interface Design....12

    4. Business Model4.1 Components..14

    4.2 Arena..17

    4.3 Ecosystem Needed For The Application.................18

    4.4 Complimentary Assets19

    4.5 Value Proposition and Differentiators.20

    4.6 Marketing Plan And Financials.22

    4.7 Business Risk And Future Improvement24

  • 8/4/2019 NTADBM Group 9 Shopmates

    3/24

    3

    OBJECTIVE OF THE REPORT

    The report aims to provide the Business Model for our applicationShopMatess. A brief overview of the industry is provided first which will

    help in understanding the current ecosystem in which we propose to

    launch the application. After this we provide the various aspects of our

    business model (Marketing Plan, Financial forecasts, Competitive

    analysis, Value proposition)

    OBJECTIVE OF THE REPORT

  • 8/4/2019 NTADBM Group 9 Shopmates

    4/24

    Research: OVERVIEW OF MOBILE INDUSTRY

    Hardware providers:

    These are the players which provide the handset and all the hardware (chips, handsets,

    battery, chargers). E.g. of such player are Samsung, Apple, LG. A mobile phone can be

    categorised into following category

    Basic Mobile Phone: These phones provide the basic features of calling, messaging,

    radio application. Installation and configuring of new software is not feasible. These

    are apt for basic needs. E.g. Nokia 1100

    Smartphones: These phones are for those who want a single gadget to be fully

    loaded so that it can serve any and every purpose - from communication to

    computing and from entertainment to productivity. E.g. iPhone, Nokia E-series

    PDA Phones: Personal Data Assistant phones are the favourite companion of

    business executives. Running on operating systems like MS Mobile Pocket PC and

    Palm OS these are offered by HP, PalmOne and the likes. In fact the mobile phone

    market has become so demanding, dynamic and competitive that the line that

    divides smartphones from PDA phones is fast fading.http://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htm

    Software providers:

    These players provide the application, operating system and such other software (games,

    utilities, browsers) which makes the handset interact with the user.

    Mobile industry primarily consists of two types of players:

    The structure of the industry is such that lot of

    Hardware providers are also software providers.

    Essentially if we study the suppliers of industry

    heavy weights like Apple we see that there are

    similar suppliers for multiple handset makers. For

    e.g. Samsung is a major player in the handset

    industry and is a supplier of Apple also. Moreover

    bulk of the manufacturing happens in locations

    like China and Taiwan primarily because of their

    cost advantage and their expertise with hardware

    development which leads to shorter developmentcycle.

    4

    http://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htmhttp://www.tolmol.com/bp/mobile-phones/types-of-mobile-phones.htm
  • 8/4/2019 NTADBM Group 9 Shopmates

    5/24

    As a result of the above industry structure we find that the difference

    between the hardware capabilities of the handset provided by various

    companies is not significantly different (looking at the mobile phone in same

    price category). Hence to create a significant differentiator and retain

    customers we see that companies along with hardware are also

    concentrating on software development to sell their mobile phone. Moreoverthis trend has catapulted the development of an entire ecosystem of

    developers and partners, which has directly impacted the convenience and

    benefits that a mobile user can get. The trend has been so impact full that

    economist view the development of mobile industry as one of the crucial

    indicators to economic development.

    5

    OVERVIEW OF MOBILE INDUSTRY

  • 8/4/2019 NTADBM Group 9 Shopmates

    6/24

    Components Remarks Bargaining Power

    Supplier

    The supplier network consists of both small

    players and large players. There are

    suppliers for operating system e.g. Google

    for Android, Nokia for Symbian. Few

    suppliers have their product as opensource

    where people can make enhancements e.g.

    Android.

    Bargaining power is

    moderate.

    Due to the presence of

    multiple players the suppliers

    need to keep in mind the

    needs of the application

    development industry if it

    wants the suppliers platform

    is adopted. Once the platform

    is adopted the power shifts

    more.

    Substitutes

    There is no major threat of substitute to

    mobile applications. The closest is a software

    application on the web. This in a waycompliments the mobile application.

    Bargaining power is low.

    Buyers

    Buyers range from large customers

    (business) to individual customers. Initially

    the requirement of the two groups were

    viewed differently. The earlier group was

    seen to have requirements around the office

    assistant and managing their connectivity

    with the office. The later was seen as having

    the needs around gaming and entertaining.

    However as of late the needs of both thegroup are seen to merge.

    Buyer power is high. The high

    amount of alternatives

    available to customers

    ensures that companies have

    to constantly innovate to

    retain customers.

    Potential

    Entrant

    The barriers to the entry are very low in this

    industry. in terms of capital requirement,

    regulatory framework, technology,

    infrastructure needs and human resources

    the availability is easy and hassle free

    Bargaining power is low.

    Industry

    competition

    Because of the above argument the industry

    is very competitive

    Bargaining power is low.

    Since this report is focussed on providing a business model for software application we

    would analyse various components of the mobile application development industry.

    6

    COMPONENTS OF MOBILE APPLICATION DEVELOPMENT INDUSTRY

  • 8/4/2019 NTADBM Group 9 Shopmates

    7/24

    7

    Overview of Mobile Industry

  • 8/4/2019 NTADBM Group 9 Shopmates

    8/24

    8

    There are 5.3 billion mobile subscribers (that's 77 percent

    of the world population). Growth is led by China and India.

    Mobile devices sales rose in 2010, with smartphones showing strongestgrowth. Feature phones sales (let alone ownership) still outnumber

    smartphones 4:1. If your mobile strategy doesnt include feature phones,

    it doesnt include most of your customers.

    http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats

    Android is expected to become the

    top OS for new smartphones in 2011.

    Half a billion people accessed

    mobile Internet worldwide in

    2009. Usage is expected to double

    within five years as mobile

    overtakes the PC as the mostpopular way to get on the Web.

    Web-enabled handsets - by 2011, over 85 percent of new handsets will be able to access

    the mobile Web. In US and W. Europe, it is already surpassed that. Lots of new handsets

    support 3G (fast Internet).

    Mobile ad spend worldwide is predicted

    to be US$3.3 billion in 2011 sky

    rocketing to $20.6 billion in 2015,

    driven by search ads and local ads. In

    the US over half of U.S. mobile ad

    spending is local.

    71 percent of smartphone users that see

    TV, press or online ad, do a mobile search.

    Over 300,000 mobile apps have been developed in three years. Apps have beendownloaded 10.9 billion times. But demand for download mobile apps is

    expected to peak in 2013

    Paying by mobile i.e. m-payments will

    be worth US$240 billion in 2011 and

    could be over US$1 trillion by 2015.

    Research: TRENDS IN THE INDUSTRY

  • 8/4/2019 NTADBM Group 9 Shopmates

    9/24

    9

    TAKE AWAY FROM THE ABOVE INDUSTRY TREND

    The above statistics reemphasizes the growing importance of smartphone asa media.

    The trend predicts the potential dominance of android as the platform of

    choice for application development.

    Consumers are growing more comfortable with making financial transaction

    on the mobile phone.

    Consumers are increasingly looking to applications for their convenience

    and saving time.

    There is a growing potential to earn revenues by way of application

    download fees, getting a share in advertising spend by corporate by a

    company which comes in mobile application development space.

    The above positive trend spreads throughout the world and is not

    concentrated in any pocket.

  • 8/4/2019 NTADBM Group 9 Shopmates

    10/24

    10

    INTRODUCING

    In the reported environment where people are willing to try out new

    applications and would stick with the application if they find significant

    benefit we propose to launch an application ShopMatess.

    Shopping is a necessary exercise in our daily lives. However our dailyshopping might become a wearisome chore on some occasions.

    Do you live miles away from the marketplace, stuck without a reliable

    transport system?

    Do you find that shopping cannot fit into your busy schedule?

    Would you consider a more sustainable way to buy your everyday

    goods?

    ShopMatess is aimed at addressing the above problems. ShopMatess is an

    easy community based smart phone application that makes daily

    shopping a simple and incentivised process.

  • 8/4/2019 NTADBM Group 9 Shopmates

    11/24

    11

    The shopper will notify the buyers within his/her group through the app about his

    shopping plan at least 30 minutes before his purchase. The shopper will also have to

    enter a to/from destination and the store/area he wants to shop at for himself.

    The buyers will have a list of things that need to be bought (which can be continuously

    updated) , which they will upload on the application/websites live page.

    According to this information in the notification, buyers will send requests to the

    shopper to buy them items on their list.

    The shopper can choose the people he wants to shop for, and the items within theirlist that he thinks he can manage to transport/buy with ease. This information will

    reach the buyers instantaneously.

    Money transfer is done physically before the shopping and bill transfer and exchangetransfer also done physically.

    Post buy the each shopper and buyer would need to update the amount of hislast transaction. This step would again be mandatory. If the price does not remainwithin correct band then trust parameter would be decreased.

    A rating system for each of the people in the group will ensure honesty in transactions.

    Buyer can add people to the network. (phone number and social networking site). This

    would be in groups like google groups.

    The system works on trust within small communities and groups of people; preferably

    located in the same geographical location.

    Update transaction amount

    to ensure trust parameters

    DETAILED WORKING

  • 8/4/2019 NTADBM Group 9 Shopmates

    12/24

    12

    FLOW CHART FOR THE APPLICATION

    USER INTERFACE DESIGN:

    DETAILED WORKING

    The Product Logo The four main tabs

    on the product

    home page.

    The options provided

    on the groups pages

    which helps a user

    manage his network. A

    person can be present

    in multiple network.

    This UI highlights the

    way a user can search

    for people to add to hisnetwork from existing

    network (gmail,

    facebook, phonebook)

  • 8/4/2019 NTADBM Group 9 Shopmates

    13/24

    13

    The user can also

    view people who are

    present on the

    network.

    The shopping tab

    leads to page which

    gives a user to act as

    a shopper / place

    request (offline

    /online)/view history.

    The shopping page

    helps the shopper

    specify the time,

    destination and which

    all networks/users he

    want to intimate.

    The notification tab on

    the home page gives

    information about

    shopper/buyer activities.

    If a user is going to act

    as a shopper he can

    accept or reject a

    request from a buyer.

    The list page helps a

    user to place order by

    specifying the item

    name, quantity.

    A user can also specify

    when he wants to

    make the payment.

    The user has the option

    to save the list he

    created and update it

    later or send it again.

    USER INTERFACE

  • 8/4/2019 NTADBM Group 9 Shopmates

    14/24

    14

    COMPETITIVE ANALYSIS:

    Competitive analysis of top 10 shopping advertisement: 10 competitors information got

    from http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/ :

    Current Competitive landscape provides the services provided by existing smartphone

    application. This understanding of the competitive landscape also gives us ideas about the

    short term and long term areas to which our application can expand to.

    ShopMates closet competitor currently would be Community Shopping Guide,

    MobiQpons and Coupon Sherpa.

    Community Shopping is just a google spread sheet with no significant features and UI

    which we plan to develop.

    Coupon Sherpa and MobiQpons have the disadvantage that there source of

    information about the discounts come from supplier, store owner rather than from

    the customers.

    In our product we can get information offer which would be more relevant for the

    users and more customized as friends would be providing the information.

    The above competitive landscape can be broadly categorized into three areas

    Applications which provide online shopping

    Applications which provide product information

    Applications which help in doing physical shopping

    Comparison WithOther Product

    (Price, Quality)

    Product Review

    Checking The

    Availability OfThe Product At

    Stores

    DirectionMapping For The

    Store

    Helps In PhysicalShopping At The

    Store

    Shopsavy

    Shopnearby

    Redlase

    Amazonsave

    Benjis

    Compareme

    Shopsavy

    SaveBenjis

    SnapTell Compare

    Everywhere

    Buzzillions Slifter

    ShopNearby

    Compare

    Everywhere

    Holiday Gift

    Guide

    Point Inside

    Slifter

    Online Shopping Promotions Pooled Shopping

    Socio-economic

    Info About

    Products (CarbonFootprint, Celerity)

    Product

    Suggestions

    Shop NearbyCoupon Sherpa

    Mobiqpons

    Community

    Shopping Guide

    Goodgude Be

    Nice To Business

    Holiday Gift

    Guide

    COMPONENTS OF THE BUSINESS MODEL

    http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/http://www.dailyfinance.com/2010/10/20/love-to-shop-10-hot-shopping-apps-for-smartphones/
  • 8/4/2019 NTADBM Group 9 Shopmates

    15/24

    15

    Perceptual Map: Helps In Physical Shopping Vs Product Information

    Perceptual Map:

    Looking at the positioning of the ShopMates with the help of perceptual Map. Two 2

    dimensional perceptual maps are drawn (on the following page)

    Online shopping vs Product Information

    Help in Physical shopping vs Product information

    Perceptual Map: Online Shopping vs Product Information

  • 8/4/2019 NTADBM Group 9 Shopmates

    16/24

    16

    TAKE AWAY FROM PERCEPTUAL MAP:

    These maps gives us the current positioning of ShopMates and also tells

    which news areas can it move to. From Perceptual Map 2 we can figure out

    that if we can move to 1st quadrant in the long run by providing more

    product related information then we would face less competition and

    improved range of services.

  • 8/4/2019 NTADBM Group 9 Shopmates

    17/24

    17

    Customers

    Android Smartphone Users

    Busy people Students in hostels

    People seeking convenience

    The above customer segment is in line with the basic purpose of our application, which is

    to provide convenience to people. This is the primary customer segment for us. In long run

    we expect that with introduction of more features it might have a rub off effect on our

    consumers.

    Based on availability of internet everywhere Focus on USA, Japan, Germany, France,India, China (Developed and Developing markets), below, the two tables show the

    potential segmentation of the market from ShopMates point of view.

    We would target the customers which are shaded. There is a possibility that the 2

    customers segment overlap.

    Segment 1 of Customer

    Segment 2 of Customer

    ARENA

  • 8/4/2019 NTADBM Group 9 Shopmates

    18/24

    18

    The success of any application is not only dependent on the main product but also is

    dependent on the supporting ecosystem which the application/business needs to be

    successful. For our application the complimentary assets needed would be:

    3rd party payment gateway: In order to enable the user to make payment for registration

    and pay the download fee a payment gateway is needed. PayPal is one of the strong

    contenders. Appropriate gateway selection would depend on its

    Cost of application Ease of integration with our code

    Security of the product

    Up-gradation and customer service provided

    Support on various platform

    Mobile Hardware Platform: This is the platform on which ShopMates would run. The

    application should support maximum number of Hardware platform in the long run. The

    application needs to keep in mind the limitations of hardware whose processing power

    although growing rapidly have still got certain limitation. Application constantly needs toupgrade itself to benefit from the increased hardware capabilities and opportunities

    provided as a result of this.

    Mobile Software platform: Current platform for development for ShopMates would be

    Android. Being an open architecture this would help us in rapid development and make

    use of other similar code base of other application. In long run we intend to provide our

    application both on Android and iPhone.

    Store Owner Network/Distribution Channel: Distribution Channel of the application

    would majorly be online medium through Android application distribution network andlate iPhone application distribution network.

    Server Hosting services: This service should be scalable and flexible.

    After sale support: Feature upgrades and bug fixing for the application would be prompt

    to meet the evolving user expectation from the application.

    ECOSYSTEM NEEDED FOR THIS APPLICATION

  • 8/4/2019 NTADBM Group 9 Shopmates

    19/24

    19

    The above Table represents the various complimentary assets which would impact ourbusiness. The long term and short term view on the dependency is also present. Effective

    and efficient interaction with these assets is important for successful business.

    The business would ensure the rapid development of above ecosystem which would

    ensure higher visibility for ShopMates, increased user adoption.

    Vehicles:

    In short we intend to grow organically. After turning cash positive we would look at alliances which would help us in

    growing in shopping space. Our focus would be to build a niche for ourselves in

    online and real-time shopping experience.

    We would also look at alliances with development firms having expertise in other

    platforms and expedite our development process.

    Table: Analysis Of Complimentary Assets

    ANALYSIS OF COMPLIMENTARY ASSETS

  • 8/4/2019 NTADBM Group 9 Shopmates

    20/24

    20

    Value Proposition:

    The benefits offered to various stakeholders are mentioned below:

    Stakeholders Value Proposition View

    Shopper

    The shopper gets and incentive and reward points

    for providing the service to the user. Furthermore,

    if the shopper user credit card to make the

    shopping then the reward points are incentive as

    well

    Long Term, Short Term

    Buyer

    The shopping is done and delivered closer to him,

    saving him a lot of time, energy and transport

    money.

    Get a chance to network with people.

    Get information about latest offers / deals /

    discounts /promotions

    Long Term, Short Term

    Store Owner

    Can promote bulk purchases.

    Cost effective way of advertisement which

    focussed reach.

    Have data about buying behaviour pattern of

    consumer.

    Long Term

    Long term view primarily addresses the advantage which will come to the business once

    number of subscriber reaches a sustainable level. The network effect and cross network

    effect creeps in.

    Differentiators:

    Only application to promote pooled shopping and provide promotional scheme which

    are suggested by friends (high chances of the offer being relevant).

    Incentive provided for shopping for others.

    Helps to grow your social network.

    DIFFERENTIATORS AND VALUE PROPOSITION OF SHOPMATES

  • 8/4/2019 NTADBM Group 9 Shopmates

    21/24

    21

    SEQUENCE OF ACTIONS

    Subsequent to the launch of ShopMates we intend to grow organically.

    Building capabilities in

    Application development

    Marketing our application

    Our main focus would be to grow the adoption rate of our application.

    For developing capabilities for :

    Generating advertisement revenue: We intend to do it both organically

    and becoming part of partner network something like google provides.

    Going ahead we intend to launch applications in same domain which makes

    shopping ease. After building core competency in shopping arena we might

    venture into application development areas which are close to our

    competencies.

    We aim to turn cash positive before taking the above steps.

  • 8/4/2019 NTADBM Group 9 Shopmates

    22/24

    22

    Context Rapidly growing mobile app market

    High growth in Android platform user database

    3.9%

    22.7%

    38.5%i.e. 180m

    48.8%,

    i.e. 310m

    Android UserBase

    2009 2010 2011 2015

    Shopmates

    User Base

    ~0.5% = 1.5m

    ~20k

    Network effects necessary for diversion across other electronic gadgets

    MARKETING STRATEGY:

    ProductAs mentioned earlier in video

    Price

    Download from anywhere @ $0.99

    Place

    Focus on USA, Japan, Germany, France, India, China (Developed and Developing

    markets)

    Promotion

    Initial 10000 downloads with 50% discount as promotional offers

    Aggressive advertising through Facebook, Google, App Stores and other mobile

    applications such as games, e-papers, RSS feeds etc

    Heavy marketing expenses

    MARKETING PLAN AND FINANCIALS

  • 8/4/2019 NTADBM Group 9 Shopmates

    23/24

    23

    FINANCIALS (Expected Cash Flows, Returns And User Base):

    Assumptions:

    * the growth of the user base is given the first row. This exponential growth is assumed

    keeping in mind that the business would be successful and network effect would come in

    picture.

    ** Revenue assumed is 99 cents per user.

    *** Discount is as per mentioned earlier in the business model

    Advertisement base grows in proportion to user base

    ^^ We get 10,30, 100 malls advertising rights in the subsequent years. The numbers are

    again kept exponential keeping in mind the network effect has to kick in for the buisness

    to be successful

    Rate assumed is $100 per mall. This is kept low so that small shopp keepers can also avail

    the service.

    ^^^ The trend in cost is taken keeping in mind financials of GroupON

    http://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htm

    #The trend in cost is taken keeping in mind financials of GroupON

    http://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htmhttp://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htm
  • 8/4/2019 NTADBM Group 9 Shopmates

    24/24

    BUSINESS RISKS:

    There are multiple risks of the business few of them are enlisted below.

    Ability to get new customers and retain existing customers. Ability to enter into contracts with the store owners.

    Disruptive technology which makes android market share reduces rapidly.

    Not able to maintain healthy cash flow which impacts day to day operations.

    FUTURE AREA OF IMPROVEMENT:

    Other platforms: This application has to be extended to other platforms like

    iPhone, BlackBerry, Windows 7.

    Analytics: This section could be incorporated, which analyzes the buying behaviour ofconsumers.

    Search functionality: Helps to search what other people in the network are doing.

    Green points: Carbon footprint calculator is another area which could be looked into.

    Other channels of pooling: We can also try pooling online sale something like

    GroupOn.