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Business Plan - Dis.com - Enhancing Shopping Experience

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Presentation prepared during the MBAs International Week for the EMBA Consortium in Miami (2013).

Thanks to Dr. Rao, FIU and COPPEAD Business School.

Published in: Business
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Business Plan - Dis.com - Enhancing Shopping Experience

  1. 1. Dis.com Enhancing shopping experience EMBA Consortium – International Week Executive MBA Gee Andrei Delmarie Jan Thomas Stefano Qing
  2. 2. Understanding the American Retail Market and Consumers According to the 2005 census report there were approx. 50,000 shopping malls or strip malls in the USA A majority of the public now owns a smartphone, and mobile devices are playing an increasingly central role in the way that Americans access online services and information US retail e-commerce spending grew by 13% year-over-year to reach $50.2 billion How can opportunities and trends be explored? dis.com | 2
  3. 3. The Dis.com business Consumers  Go to shop with online discount coupon on smartphone  Receive alerts of discounted products walking pass shops Shops Sell discounted product $$$  Download app and create shopping profile on smartphone or website for free Provide Dis.com Online Service Dis.com Provide online products search tools (websites and smartphones) Promotions and publicity Shopping Maps Update discouted products in Dis.com system Pays Dis.com service $$$ dis.com | 3
  4. 4. What distinguishes Dis.com from competitors? Dis.com  Online shopping fees  Memberships  Delivery process  All products with at least 10% of discount  Not only discounted products retrieved on online search  Online reservation of discounted product to pick at the shop  Shopping area maps and products search features  Alerts of discounted products on smartphones based on the user profile and proximity to the shops dis.com | 4
  5. 5. Value Curve Benefits Value and Features Time Saving Notifications Alerts and messages User Interaction Smartphones Ease of Use Technological features Optional Features User profiles Customized Increased volume of sales Advertising Price to Shops / Cost Benefit Relative Level Dis.com Competitors dis.com | 5
  6. 6. Product Competitive Advantage • Partnership with Shopping Outlets. E.g.: Name Brand Outlets – Sawgrass Mills, Premium Outlets • Partnership with Major Malls • Scalability of Business dis.com | 6
  7. 7. Segment Description • Tourists • Medium and low income consumers • High income value seekers Segmentation Tourists Medium income High income dis.com | 7
  8. 8. Industry Characteristics & Barriers • Barriers market entering  Tourist access to local network if not using free wifi  Limited use of smart phone in medium income groups  New process of discount shopping  Online vs direct store purchase Trust habit Initial network effect • Barriers to increased sales  Malls competition  Shops competition Fad element dis.com | 8
  9. 9. Pricing Analysis • Fixed Cost  Monthly fee for the shops – Allows shops to appear in dis.count search system  150 $ • Variable Cost  Pricing to control needs  Depends on number of products announced  Depends on days announced of each product  1 $ / product / day dis.com | 9
  10. 10. Harvest Potential As Is Scenario • USA Population: 313.9 million • 50 states • Approximately 50,000 shopping malls or strip malls in the USA Start Up • First Area: Florida – Tourist destination of approximately 90 million tourists a year • 32 malls in first year ~ 40 shops per mall ~ 1280 shops Roll Out • Areas with high tourist rates – E.g.: New York; California • Areas with high rate of medium income inhabitants – E.g.: Universities, Immigrant areas • 512 malls in fifth year ~ 1% total malls in USA ~ 20,480 shops • Expected $250 income per shop 20480 10240 Shops 5120 1280 Year 1 2560 Year 2 Year 3 Year 4 Year 5 dis.com | 10
  11. 11. Potential Financial Return vs Investment Required • Amount needed from investors $ 2,000,000 • Return Rate To Investor 20% • IRR of Business 13% • Monthly Sales after 5th year $5.120.000,00 •Valuation after 5th year $49.850.000,00 • Share to Investor after 5th year 12% dis.com | 11

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