BUSINESS PLAN

TOPIC : MGV.COMGROUP WORK ASSIGNMENT

GROUP MEMBERS:TANUSIASANAZCHIANNHODA

SANAZ TANUSIA CHIANN HODA

To offer the BEST ONLINE

DOWNLOADING SERVICE to

valued subscribers

To be leading ONLINE

DOWNLOADING SERVICES &

Indulge in TRADE Business

BOARD OF DIRECTORS

MISSION VISION

WHAT WE OFFER???BUY & DOWNLOAD ONLINE

T

WHAT WE OFFER???BUY & DOWNLOAD ONLINE

T

VALUE PROPOSITION

An Online Downloading Portal for All Subscribers.

- One stop hub for downloading variety entertainment.

Cost Saving for CitiBank Credit Card Holders. - Subscribers can Save on Cost 10% on All

Items Purchased.

Interactive Online Services for All Subscribers.- Can Personalized Profile and Change the

Avatar.

Easy Navigation & Latest Advertisement - Subscribers can easily Search for Items to be

Purchased as well as Special Discount on Selected Items.

VALUE CHAIN

Creates Value

Through Facilitating Transaction (Providing a

Platform)

Creates Value Through

Facilitating Subscribers

Communication(Online

Networking)

Creates Value

Through Display/

Networking Credibility(Reputable Companies)

Creates Value Through

Facilitating Errors

(Providing fast & Effective Solutions)

Create an Account1

Edit &ManageAvatar

2 OnlineNetwork3 Advertisement4 Online

Customer5

BUSINESS MODEL

Buyers

Sellers

B2C

B2B

Collaborations

Download

CAPITAL STRUCTURE

Name of Shareholders

Investment

Sanaz Khasehkhan

RM 45,000

Tanusia Arumugam

RM 20,000

Toh Yeong Chiann

RM 20,000

Hoda Safari RM 15,000

45%

20%

20%

15%

Capital Structure

SANAZ CHIANN TANU HODA

REVENUE MODEL

Revenue Year 1 Year 2 Year 3 Year 4 Year 5

Sales 80,000 128,000 145,000 180,000 235,000

Advertising 20,000 32,000 40,000 62,000 85,000

Total 100,000 160,000 185,000 242,000 320,000

REVENUE MODEL CONTINUE

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 50

50000

100000

150000

200000

250000

80000

128000145000

180000

235000

2000032000 40000

6200085000

SALES ADVERTISING

COST MODEL (CapEx)

Rental Deposit12%

Security System15%

Computer16%Server

40%

Office Equipment

2%

Website Design8%

License Fees3% Renovation

4%

CAPITAL EXPENDITURES

TOTAL COST = RM 45,500

OPERATION COST EXPECTED

OPEX Year 1 Year 2 Year 3 Year 4 Year 5

Office Rental 6,600 6,600 6,600 6,600 6,600

Salary 84,000 115,000 135,000 138,000 140,000

Advertising Cost 10,000 10,000 7,000 7,000 5,000

Utilities 1,200 1,400 2,350 2,850 3,500

Web Master 2,000 2,000 2,000 2,000 2,000

Web Hosting Fees 2,000 2,000 2,000 2,000 2,000

Streamyx (internet fees)

2,200 2,200 2,200 2,200 2,200

Server Maintenance 3,500 3,500 3,500 3,500 3,500

Anti-Virus (Kaspersky)

999 999 999 999 999

TOTAL ANNUAL COST

112,499 143,699 161,649 165,149 165,799

OPERATION COST EXPECTED

Year 1 Year 2 Year 3 Year 4 Year 50

20000

40000

60000

80000

100000

120000

140000

160000

O.RentalSalaryAdvert.CostUtilityWeb MasterWeb HostStreamyxServerAnti-Virus

NET INCOME

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 100,000 160,000 185,000 242,000 320,000

Operating Expenses

112,499 143,699 161,649 165,149 165,799

Net Income (12,499) 16,301 23,351 76,851 154,201

BREAK-EVEN POINT (BEP)

Year 1 Year 2 Year 3 Year 4 Year 50

50,000

100,000

150,000

200,000

250,000

300,000

350,000

RevenueOpEx

BREAK-EVEN POINT

PAYMENT METHOD

Payment Method

Debit Card

Credit Card

Cash Bank-

In

SWOT ANALYSIS

Strengths*Low operating

cost*Time saving

*Efficient

Threats*Competition

*Governmental regulation*Economic downturn

COMPETITOR ANALYSIS

Name of Company iTunes Store Facebook

Domain name (URL) http://www.apple.com/itunes/affiliates/download/

https://www.facebook.com/payvment#!/pages/Onarama-Records-Barcelona-Online-music-store/202895743078897

Target market Individual Individual

Similarity Product Medium Medium

E-catalog /Playlists Provide Provide

Cost leadership High Cost Low Cost

Innovation concept High Medium

Privilege Non Non

MARKETING PLAN

SUCCESS

Geographic ( Where?)• Globally

Target Market (Who?)

• Youngster• Working

adult

Strategy ( What?)

• Planning• Develop

• Strategize

THE CHALLENGES

MGV.com is a business whereby it is a online network base

company which provides various kinds

of entertainment services such as

Music, Movies and Games to its subscribers.

In the ever challenging business

environment, MGV.com has to

compete against other indirect companies that provide similar

services but MGV.com has an upper hand

because of its uniqueness of all in

one business concept.

Latest Information and advertising opportunities in

marketing strategies plays an important

role for MGV.com to gain success in sales figures. Other than that, having a good customer service

could increase subscribers’ loyalties towards MGV.com.

EXIT STRATEGY

DEATH* Death of a Shareholder

during Start-Up of Business* Insurance Claim & Company’s Worth

DISABILITY* No Profit & High Cost

* Financial Strain impacts Business and Family who

depends on Income

DIVORCE* Agency Problem* Finance Problem* Split Partnership

DEPARTURE* Other Opportunities

* Found Better Business* Merger & Acquisition

OVERALL IMPACT

Online Business

Made Easy

Connect, Search,

Download &

Interact Actively

Save on Overall

Cost, Time & Money

Digital Downloading, Up –to-

Date Technolo

gy & Environm

entally Savvy