Mbi strategic planning

transcript

“Strategic Planning” Capstone Project

MBI Student: Fernando Huerta Email: fhuertamty@gmail.com

THE PAIN

• Someone who needs to buy pre-paid air time for his cell-phone and is not near from a pos.

BUSINESS CONCEPT: SOLUTION

• Vending machine.

• Sells cellular pre-paid air time.

• Easy to use and setup.

THE VALUE CHAIN OF THE SOLUTION

End Customer

Needs Buy a $2 USD prepaid time Convinent location

Customer Margin: 4%

Activities/Role Prepaid Inventory Take care of equipment

Our Project Margin: 3%

Activities/Role Time Air Distribution Purchase equipment

Mobile Carrier Margin: 91%

Activities/Role Wireless Network Avilable

Customer Segments: Location Pop & Mom Stores Small Towns

Factories Highschools

GOOD NEWS: THIS IS FOR REAL!!!

OUR MOTIVATION

• Create a Disruptive Business. – Low Cost

– Focused to attack an unserved market.

– Technology based.

– Designed & Manufactured in Mexico.

• Build a convinient solution. – Celullar pre-paid air time.

– E-Services eco-system

Our Goals……

• Customer Understanding – Profile and Location – Pain and its circumstances

• Executive Proof of Concept (10) – 3 segments – 5 Cities – User Experience – User acceptance – Financial assumption related to revenue and cost.

• Market Lauch

– Phase I: 100 machines – Phase II: 500 machines – Phase III: 1,000 machines

Market Size

• In Mexico 92% of cell phones are under pre-paid plans.

• In Mexico are 85M mobile phone under prepaid plans.

• The industry of supplying pre-paid air time is a $8b USD

Diestel

Recargas del Noreste

Others

Paga Todo

Gross Margin Analysis

The Project: • Equipment

– Revenue: $650 – Cost: $300 – Margin: $250

• Service (Pre-paid) $1.5

– Revenue (3%): $0.045 – Collection (1%): $0.015 – Margin: $0.030

Customer:

• Equipment Cost: $650

• Service (Pre-paid) $1.5 – Revenue1 (4%): $0.065

– Revenue2 (10%) $0.150

– Collection (1%): $0.015

– Margin: $0.200

Break Even Analysis

The Project: • Equipment Margin: $250

• Fixed Cost:$3,000 – Headcount: $2,000

– Expenses: $1,000

• BEP: 12 equipments per month

Customer:

• Equipment Cost: $650

• Gross Margin $0.200

• BEP: 3,250 sales of pre-paid plans / 14 sales of prepaid plans.

THE CASH IS COMING AND IS REAL!!!

GO TO MARKET STRATEGY: CHANNELS

Mercado Libre Vending Machines Owners

Satellite Distributors

THE BUSINESS MODEL

Equipment + Service Equipment + Service

Marketing & Sales Collection

Working Capital Equipment Supply Chain Website

Transactional

Equipment Manufacturer

LEARNINGS: EXECUTING BUSINESS PLAN & STRATEGY

• Long hanging fruit segments: – Mercado Libre. – Vending Machine Distributors – Satellite Distributors.

• Telcel (Major Carrier Issues)

• Products & Services

– Service: Utility Company – Product: POS, Outdoor equipment, Vending Machine KIT.

• Challenges:

– Scale & Replicate = HIGH SCALE – Trade-off Many services & equipments vs One Equipment

“Strategic Planning” Capstone Project