1) The document discusses a business plan for a mobile application called CONNECTED that allows users to find friends through their location using mobile technology. 2) It aims to target all mobile phone users and hopes to appeal to them based on usability, affordability, and privacy. 3) The business plan outlines strategies around pricing, marketing, finance, competitors, and risks to the venture.

1. MAHJONG KAKIS PTE LTD CONNECTED

2. PROTOTYPE Free download of CONNECTED online

3. Qualities High Low Level Usefulness & Practicality Blue Ocean Strategy Price Convenience User- friendliness Battery sustainability

4. Qualities High Low Level Mobile application to find friend Blue Ocean Strategy Uncontested Market

5. BUSINESS PLAN

6. 2. Who is the new venture customer? Everyone who owns a mobile phone 3. How does the customer make decisions about buying this product or services? Depending on usability/ affordability/ compromisation of privacy The opportunity [cont’d]

7. 4. To what degree is our product/service a compelling purchase? Better usage of time Reduces time wastage 5. How will it be priced? Fixed premium above cost The opportunity [cont’d]

8. 6. How would the venture reach out to the identified consumer segments? Advertisements Word of mouth 7. How can the new venture react to competitor’s response? Patent Constant improvements for application The opportunity [cont’d]

9. 8. Who might be able to observe and exploit the same opportunity? Singtel Starhub M1 9. Are there any co-opt potential or actual competitors or forming alliance? Same as above The opportunity [cont’d]

10. 10. How much does it cost (in time and resources) to acquire a customer? High initial cost explained by the technological curve. The opportunity [cont’d]

11. The context - macroeconomic environment How does the fluctuations in economic activity affect the usage of our product? Extent of impact is small Cost of application makes up a small proportion of income - not easily affected by interest rates

12. The context – macroeconomic environment [cont’d] Software is made in Singapore cost of product is unaffected by exchange rates cost is not passed on to consumers

13. The context – macroeconomic environment [cont’d] Inflation – does not affect the demand of our application More for food and commodities [as seen from the increasing Consumer Price Index]

14. The context – macroeconomic environment [cont’d] Real consumer spending is increasing increases demand for our application [more willing to spend on luxuries]

15. The context [cont’d] - Tax For new startup companies Full tax exemption is granted on the first $100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively . (%) First $100,000 Nil $100,001 to $300,000 9 Thereafter a Flat Rate of 18

16. The context [cont’d] - Risks Unable to gain acceptance from consumers Application may phase out quickly (Technological Curve)

17. Technology Sybase 365 (Smart SMS) Operator Platform Service LBS Cost Sender SMS (GPS, telecommunication, LBS) GPRS + Application Wi-Fi Receiver

18. Marketing Strategies Patenting our product Marketing our software to consumers Depending on the local sales results, we might tap into the overseas market

19. Advertising mediums Online advertisements Television advertisements Newspapers Phone plan brochures

20. FINANCE

21. illustration Scenario: Meeting of a group of people (Max. 6 people) Price to consumers Cost of 6 SMS: S$ 0.30 CONNECTED: S$ 0.25 Percentage savings: 17%

22. 1) Purchase cost: S$0.46 [LBS(S$0.21) + Sybase 365(S$0.20) +SMS(S$ 0.05)] 2) Revenue (Consumers): S$0.25 3) Revenue (Per Advertiser): S$0.18 4) Profits [based on 3 advertisers]: S$0.33 per transaction Financial breakdown [cont’d]

23. Financial breakdown [cont’d] Breakeven Point No. of mobile users x Cost of service x Frequency of usage (annual) = 4,200,000 x 0.4 x $0.25 x 48 = $ 20,160,000 Cost to advertisers = 4,200,000 x 0.4 x $0.18 x 2 x 48 = $ 29,030,400

24. Financial breakdown [cont’d] Total Revenue = $ 20,160,000 + $ 29,030,400 = $ 49,190,400 Total Cost = 4,200,000 x 0.4 x $0.46 x 48 = $37,094,400 Profits = $ 49,190,400 - $37,094,400 = $12,096,000

25. Disconnected