PowerHouse Rides plans to expand into the Indonesian market by franchising bike shops across the country. Indonesia has a large population with growing economic and a strong social media presence. While establishing franchises faces challenges like infrastructure differences across islands and complex regulations, targeting populated urban areas with tech-savvy youth offers opportunities. Success will be measured by growing market share, revenue, and positive customer feedback online.

1. 
PowerHouse Rides into Indonesia
Mikes Bikes 2015
Lauren Robin, Stephen Kuther, Joe Laidlaw,
Haylee Gunderson

2. PowerHouse Snapshot
 SHV $32.97
 Retail Sales $34,252,250
 Profit after Tax $1,921,656
 Funds Available $15,410,967
 Net Income $1,921,656
 Debt $0

5. PEST Analysis
 Political: republic
 Economical: 8556.1 billion real GDP, 5.2 gross
national savings is 30.2, 166.7 billion in imports

6.  Social: 281.96 million on mobile phone, 20 million
internet users, more people live the bigger islands
ages 24-35 years of age.
 Technical: bigger islands contain majority of
technology advantages. There are more then
18,000 islands and not all contain power, motorized
vehicles or running water.

7. Threats and Opportunities
 Opportunities
 Targeting the bigger islands are the best bet, the
market is higher, higher population, more
disposable income.
 Once established
 Some of the smaller islands don’t have vehicles, and
the only transportation is foot, motorcycle, or bikes.

8.  Threats
 Since the country is made up of all islands, there is
no one shipping destination. This will up the
shipping cost

9. Franchising:The Good and the Bad
 Promoting the Brand Name
 Opens New Markets and Potential Profit
 Different Laws and Regulations
 Language Barrier
 Lack of Transparency and Corporate Governance
 Widespread Corruption and Organized Crime

10. Issues in Franchising in Indonesia
 Establishing a Corporate Entity
 Construction Permit
 Getting Electricity
 Registering Property
 Paying Taxes

11. Accounting and Finance
 Use current assets to fund the endeavor which
includes:
 Shipping
 Storage
 Distribution
 Advertising and PR

12. Marketing Mix
 Our target market is the working class ages 13-30 who are tech-
savvy
 Biggest resource will be Facebook and an online presence.
 92.9% of the population is on Facebook. (the world bank 2012)
 Internet User Growth is up 163% (the world bank 2012)
 2nd largest market for mobile ads (redwing Asia 2012)
 Forecasted to have 145 million internet users by 2015 (inside
Indonesia)
 Only 6% of Indonesians purchase items online. We need intensive
distribution

13. Pengguna Sosial Media di Indonesia
2011 (Sumber: thomascrampton.com)

14. Adi (Adee)
 Average monthly income is 15,987,019 IDR which
converts to about $1,236
 Works in business planning
 Hard working, entrepreneurial spirit, looking for an easy
way to get to work, has an online presence
 Educated and in early 20’s
 Lives in an urban area

15. e-Business and Social Media
 Our internet presence will have a multi-platform
campaign.

22. Motivation
 Lead through example
 Operational plan
 Backup contingency plan
 Outlined goals
 Peer evaluations and regulations
 Provide a variety of incentives

23. Determinants of Success
 Growth of our market share
 Increased shareholder value
 Positive ROI
 Positive customer feedback
 Social media:
 Sediment analysis
 Quality analysis
 Quantity analysis
 KPI

24. Works Cited
 "Indonesia - the Social Media Capital of the World."
Indonesia - the Social Media Capital of the World.
N.p., n.d. Web. 06 May 2015.
 Central Intelligence Agency. Central Intelligence
Agency, n.d. Web. 06 May 2015.
 "Indonesia." Home. N.p., n.d. Web. 06 May 2015.
 Foundations of Business. Print. Cengage Learning.
Pride Hughes Kapoor