The document proposes a new service called LinkedIn U that would help connect MBA students and career services with recruiters. It analyzes the business model, provides implementation plans and projected financials over 5 years. The service is projected to generate $87.8 million in profit over 5 years, with an initial investment of $2.65 million.
10. How It Works LinkedIn® U™ Analysis Implement Growth
11. How It Works LinkedIn® U™ Analysis Implement Growth Decide to Apply Recruiter Resume is Sent
12. How It Works LinkedIn® U™ Analysis Implement Growth
13. Positioning MBA students and Career Services Monster Senior Executives XING Young Professionals Linkedin Careerbuilder Ease of Use Fully Integrated Features LinkedIn® U™ Analysis Implement Growth
24. Porter’s Five Forces HIGH Rivalry SNS & PNS Competing for Limited Market Share HIGH Must get supplier “buy-in” to succeed HIGH Must get buyer “buy-in” to succeed LOW Entry-deterring pricing & well-established brands HIGH PNS applications by SNS companies and campus recruitment services Supplier: Recruiters & Students Threat of New Entrants Buyers: Recruiters & B-Schools Threat of Substitutes Conclusion: Highly competitive growth market that requires recruiter, B-schools and member “buy-in”. Back
27. Pro Forma Statement - Asia Back Asian MBA Students Year 2009 2010 2011 2012 2013 Sales People 20 20 20 20 20 Sales Success Rate as a percentage 5.00% 5.50% 8.25% 10.73% 5.36% Visits/sales person 15 15 15 15 15 Schools Added 15 17 25 32 16 Total Schools 15 32 56 88 105 Student Clientele 6933 14560 26000 40872 48308 Revenue Generated Per post 600 600 600 600 600 Job posts as a percentage of student pop. 30.00% 33.00% 36.30% 39.93% 43.92% Yearly Revenue from job postings (mill) $ 1.25 $ 2.88 $ 5.66 $ 9.79 $ 12.73 Yearly Revenue from colleges (mill) $ - $ - $ - $ - $ - Cost of Sales Staff (mill) $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ 2.00 Gross Profit (mill) $ (0.75) $ 0.88 $ 3.66 $ 7.79 $ 10.73
28. Pro Forma Statement - EU Back European MBA Students Year 2009 2010 2011 2012 2013 Sales People 10 10 10 10 10 Sales Success Rate as a percentage 10.0% 11.0% 16.5% 21.5% 10.7% Visits/sales person 15 15 15 15 15 Schools Added 15 17 25 32 16 Total Schools 15 32 56 88 105 Student Clientele 1500 3150 5625 8843 10451 Revenue Generated Per post 600 600 600 600 600 Job posts as a percentage of student pop. 30.00% 33.00% 36.30% 39.93% 43.92% Yearly Revenue from job postings (mill) $ 0.27 $ 0.62 $ 1.23 $ 2.12 $ 2.75 Yearly Revenue from colleges (mill) $ 0.11 $ 0.24 $ 0.42 $ 0.66 $ 0.78 Cost of Sales Staff (mill) $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Gross Profit (mill) $ (0.62) $ (0.14) $ 0.65 $ 1.78 $ 2.54
29. Pro Forma Statement - US Back United States MBA Students Year 2009 2010 2011 2012 2013 Sales People 15 15 15 15 15 Sales Success Rate as a percentage 20.00% 22.00% 33.00% 42.90% 21.45% Visits/sales person 15 15 15 15 15 Schools Added 45 50 74 97 48 Total Schools 45 95 169 265 314 Student Clientele 22500 47250 84375 132638 156769 Revenue Generated Per post 600 600 600 600 600 Job posts as a percentage of student pop. 30.00% 33.00% 36.30% 39.93% 43.92% Yearly Revenue from job postings (mill) $ 4.05 $ 9.36 $ 18.38 $ 31.78 $ 41.31 Yearly Revenue from colleges (mill) $ 0.34 $ 0.71 $ 1.27 $ 1.99 $ 2.35 Cost of Sales Staff (mill) $ 1.13 $ 1.13 $ 1.13 $ 1.13 $ 1.13 Gross Profit (mill) $ 3.26 $ 8.94 $ 18.52 $ 32.64 $ 42.54
30. New Strategy Revenue Back Current Strategy Year 2009 2010 2011 2012 2013 Added Users per year 14.4 10.8 8.1 6.075 4.55625 Users (in millions) 37.4 48.2 56.3 62.4 66.9 Average Revenue per user $ 3.91 $ 3.91 $ 3.91 $ 3.91 $ 3.91 Total Revenue (in millions) $ 146.35 $ 188.61 $ 220.30 $ 244.08 $ 261.90 LinkedIn U Strategy Year 2009 2010 2011 2012 2013 Users (in millions) 37.4 48.3 56.5 62.8 67.5 Average Revenue per user $ 3.91 $ 3.91 $ 3.91 $ 3.91 $ 3.91 Revenue From User Base (in millions) $ 146.47 $ 188.98 $ 221.13 $ 245.62 $ 264.29 Revenue from LinkedIn U (in millions) $ 6.02 $ 13.81 $ 26.95 $ 46.34 $ 59.94 Total Revenue (in millions) $ 152.49 $ 202.79 $ 248.09 $ 291.96 $ 324.23
