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  1. 1. MAHJONG KAKIS PTE LTD <ul><li>CONNECTED </li></ul>
  2. 2. PROTOTYPE Free download of CONNECTED online
  3. 3. Qualities High Low Level Usefulness & Practicality Blue Ocean Strategy Price Convenience User- friendliness Battery sustainability
  4. 4. Qualities High Low Level Mobile application to find friend Blue Ocean Strategy Uncontested Market
  6. 6. <ul><li>2. Who is the new venture customer? </li></ul><ul><li>Everyone who owns a mobile phone </li></ul><ul><li>3. How does the customer make decisions about buying this product or services? </li></ul><ul><li>Depending on usability/ affordability/ compromisation of privacy </li></ul>The opportunity [cont’d]
  7. 7. <ul><li>4. To what degree is our product/service a compelling purchase? </li></ul><ul><li>Better usage of time </li></ul><ul><li>Reduces time wastage </li></ul><ul><li>5. How will it be priced? </li></ul><ul><li>Fixed premium above cost </li></ul>The opportunity [cont’d]
  8. 8. <ul><li>6. How would the venture reach out to the identified consumer segments? </li></ul><ul><li>Advertisements </li></ul><ul><li>Word of mouth </li></ul><ul><li>7. How can the new venture react to competitor’s response? </li></ul><ul><li>Patent </li></ul><ul><li>Constant improvements for application </li></ul>The opportunity [cont’d]
  9. 9. <ul><li>8. Who might be able to observe and exploit the same opportunity? </li></ul><ul><li>Singtel </li></ul><ul><li>Starhub </li></ul><ul><li>M1 </li></ul><ul><li>9. Are there any co-opt potential or actual competitors or forming alliance? </li></ul><ul><li>Same as above </li></ul>The opportunity [cont’d]
  10. 10. <ul><li>10. How much does it cost (in time and resources) to acquire a customer? </li></ul><ul><ul><li>High initial cost explained by the technological curve. </li></ul></ul>The opportunity [cont’d]
  11. 11. The context - macroeconomic environment <ul><li>How does the fluctuations in economic activity affect the usage of our product? </li></ul><ul><li>Extent of impact is small </li></ul><ul><li>Cost of application makes up a small proportion of income - not easily affected by interest rates </li></ul>
  12. 12. The context – macroeconomic environment [cont’d] <ul><li>Software is made in Singapore </li></ul><ul><ul><li>cost of product is unaffected by exchange rates </li></ul></ul><ul><ul><li>cost is not passed on to consumers </li></ul></ul>
  13. 13. The context – macroeconomic environment [cont’d] <ul><li>Inflation – does not affect the demand of our application </li></ul><ul><li>More for food and commodities [as seen from the increasing Consumer Price Index] </li></ul>
  14. 14. The context – macroeconomic environment [cont’d] <ul><li>Real consumer spending is increasing </li></ul><ul><ul><li>increases demand for our application [more willing to spend on luxuries] </li></ul></ul>
  15. 15. The context [cont’d] - Tax <ul><li>For new startup companies </li></ul>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 $300,000 9 Thereafter a Flat Rate of 18
  16. 16. The context [cont’d] - Risks <ul><li>Unable to gain acceptance from consumers </li></ul><ul><li>Application may phase out quickly (Technological Curve) </li></ul>
  17. 17. Technology Sybase 365 (Smart SMS) Operator <ul><li>Platform </li></ul><ul><li>Service </li></ul><ul><li>LBS Cost </li></ul>Sender <ul><li>SMS (GPS, telecommunication, LBS) </li></ul><ul><li>GPRS + Application </li></ul><ul><li>Wi-Fi </li></ul>Receiver
  18. 18. Marketing Strategies <ul><li>Patenting our product </li></ul><ul><li>Marketing our software to consumers </li></ul><ul><li>Depending on the local sales results, we might tap into the overseas market </li></ul>
  19. 19. Advertising mediums <ul><li>Online advertisements </li></ul><ul><li>Television advertisements </li></ul><ul><li>Newspapers </li></ul><ul><li>Phone plan brochures </li></ul>
  20. 20. <ul><li>FINANCE </li></ul>
  21. 21. illustration <ul><li>Scenario: Meeting of a group of people </li></ul><ul><li>(Max. 6 people) </li></ul><ul><li>Price to consumers </li></ul><ul><li>Cost of 6 SMS: S$ 0.30 </li></ul><ul><li>CONNECTED: S$ 0.25 </li></ul><ul><li>Percentage savings: 17% </li></ul>
  22. 22. <ul><li>1) Purchase cost: S$0.46 </li></ul><ul><li>[LBS(S$0.21) + Sybase 365(S$0.20) +SMS(S$ 0.05)] </li></ul><ul><li>2) Revenue (Consumers): S$0.25 </li></ul><ul><li>3) Revenue (Per Advertiser): S$0.18 </li></ul><ul><li>4) Profits [based on 3 advertisers]: S$0.33 per transaction </li></ul>Financial breakdown [cont’d]
  23. 23. Financial breakdown [cont’d] <ul><li>Breakeven Point </li></ul><ul><li>No. of mobile users x Cost of service x Frequency of usage (annual) </li></ul><ul><li>= 4,200,000 x 0.4 x $0.25 x 48 </li></ul><ul><li>= $ 20,160,000 </li></ul><ul><li>Cost to advertisers </li></ul><ul><li>= 4,200,000 x 0.4 x $0.18 x 2 x 48 </li></ul><ul><li>= $ 29,030,400 </li></ul>
  24. 24. Financial breakdown [cont’d] <ul><li>Total Revenue </li></ul><ul><li>= $ 20,160,000 + $ 29,030,400 </li></ul><ul><li>= $ 49,190,400 </li></ul><ul><li>Total Cost </li></ul><ul><li>= 4,200,000 x 0.4 x $0.46 x 48 </li></ul><ul><li>= $37,094,400 </li></ul><ul><li>Profits </li></ul><ul><li>= $ 49,190,400 - $37,094,400 </li></ul><ul><li>= $12,096,000 </li></ul>
  25. 25. Disconnected