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INNOVATION PLAN

FLAT WORLD PROJECT

PRESENTER: JENNIFER VU HUONG (HUONGVUVU.HUT@GMAIL.COM)(MASTERS IN BUSINESS INNOVATION AND TECHNOLOGY MANAGEMENT)

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Business Description and Vision2

1 Introduction

3 Organization and Management

6 Conclusion

CONTENTS

5 Financial Analysis

4 Marketing and Sales Strategy

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Introduction

THE STORY OF BESTRIVER ENGLISH COMMUNITY 2 YEARS AGO

Kick-off event

English club

English class

Outdoor activities

Website

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Introduction

Lesson from the failure of Englishland community 2 years ago

Lack of finance

Lack of human

resource

Business plan?

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FLAT WORLD

INNOVATION PLAN – FLAT WORLD

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Business Description and Vision2

1 Introduction

3 Organization and Management

6 Conclusion

CONTENTS

5 Financial Analysis

4 Marketing and Sales Strategy

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Tourism and education industry in VietnamThe needs The concept of company

Business Description and Vision

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Tourism industry in Vietnam

Years Tourism Arrivals Change

2002 2,628,200 12.8%

2003 2,429,600 −7.6%

2004 2,927,876 20.5%

2005 3,467,757 18.4%

2006 3,583,486 3%

2007 4,171,564 16%

2008 4,253,740 0.6%

2009 3,772,359 −10.9%

2010 5,049,855 34.8%

2011 6,014,032 19.1%

2012 6,847,678 10.8%

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Tourism industry in Vietnam (cont)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

The number of Tourism Arrivals to Vietnam from 2002 to 2012

Tourism Arrivals

Tourism industry has been developing very fast

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Top 10 International Visitors in Vietnam from 2011 to 2013

Rank Country 2011 2012 2013

1  China 1,416,804 1,428,693 1,358,961

2  South Korea 536,408 700,917 562,076

3  Japan 481,519 576,386 450,004

4  United States 439,872 443,826 328,215

5  Cambodia 423,440 331,939 247,725

6  Taiwan 361,051 409,385 297,584

7  Australia 289,762 289,844 238,647

8  Malaysia 233,132 299,041 237,081

9  France 211,444 219,721 157,637

10  Thailand 181,820 225,866 195, 031

Tourism industry in Vietnam (cont)

Vietnam attracts tourists from all over the world

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Demands of Learning languages, soft skills in Vietnam

Graduation requirements Jobs

Application Promotion

Study abroad Communication

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Tourism

Education (languages and soft skills)

DEMANDING

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The needs

Tourists Local supports

Local people Learning Interaction

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The concept of company

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The concept of company (cont)

Multiple Business Organizations Operates in more than one industry

• Tourism • Education

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The concept of company (cont)

Tourism services

Contact with local people

Temporary jobs or activities

Tours

Services of FLAT

WORLD

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Competitiveness

Tourism services Several travel agencies

• Vietravel • Senvang • Bonmua

Education services Several languages centers

• BBC• ACET• RES

Several soft skills center • Tamviet• Hocduong

International company, community Couchsurfing Expat

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Competitive advantages of FLAT WORLD

etc

Students Tourists

Scholars

Friendship

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- Collaboration to reduce the services fee- Reliability- All services in one- Installments payment

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Promotion and scholarship

Introduce one friend, discount 1 percent of course fee

Introduce more than 5 friends, discount 7%Scholarships for the best studentCan pay installments

5 times per course After finishing a course After finishing studying abroad

Competitive advantage of FLAT WORLD

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Channels of distribution

Internet Social networks Website FlyersEvents Competitions Friendships

The concept of company (cont)

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Business Description and Vision2

1 Introduction

3 Organization and Management

6 Conclusion

CONTENTS

5 Financial Analysis

4 Marketing and Sales Strategy

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Organization Structure

Center Administration

Marketing team

Flyer

Online suppo

rt

Forums

Websites

Website development team

Receptionist

Tour guide team

Scholars

Teachers

Event management team

Action team

Speakers

DJ team MC

Volunteers Management board(Jennifer and Paul)

Key management

personnel

English teachersSpeakersEngineers

Passion Power

Patience

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Business Description and Vision2

1 Introduction

3 Organization and Management

6 Conclusion

CONTENTS

5 Financial Analysis

4 Marketing and Sales Strategy

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Marketing and Sales Strategy

Exit strategiesGrowth Strategies

Concentration Strategy Horizontal Integration Strategies

Strategy and innovation analysis SWOT PEST PORTER CANVAS

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Exit strategy

Establish the community Organize clubs, classesStudents EnglishVietnam market

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Growth Strategies

Growth Strategies

Diversification• Related• Unrelated

Horizontal Integration

Vertical Integration• Backward• Forward

ConcentrationInternational

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Concentration Strategy

Service-Market Diversification OptionMarket:

Expand to Southeast Asian countries then Asian countries then all over the world

Provide more services: Hotel Restaurant Resort Souvenir

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Horizontal Integration Strategies

Expanding the firm's operations through combining with competitors operating in the same industry & doing the same things Current language centers

• Appollo • ACET• BBC• RES

Soft skill centers • Tam Viet group • Hocduong group

Travel Agency/Community • Couchsurfing • Expat

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SWOT Analysis for FLAT WORLD

Positive aspects Negative aspects

STRENGTHS WEAKNESSESInternal

factors

- Enthusiastic and confident teams (including teachers and students): high skills and good experience in seeking scholarships, teaching, organizing events, establishing and managing website

- Good relationships with volunteer groups, travel agencies, speakers, education centers and international communities

- Poor reputation- Finance problems

OPPORTUNITIES THREATS

External facto

rs

- Learning languages (especially English), soft skills are marginal, demanding

- Tourism has become more and more developed all over the world

- Possible to call for grants from education or non-government organizations

- Possible to open branches in Asian countries then all over the world

- Possible to develop an international brand name - No competitors combine all services - Low services fee of services with learning by collaboration

- Growing competition from local companies and international companies

- Same services will be implemented by competitors

- Legal issues

The niche

market

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PEST Analysis for FLAT WORLD

Political factors High political stability Loose laws Government promotes education and International

relationship, toursim Low tax Available grants for education Easy to ge work and teaching permit

Economic factors High spending power on education Competition from other english centers Economic downturn Developing countries, economy developes quickly, standard of

living is getting higher

Social factors Acceptance of new unwellknown center Ubiquity of learning english, softskills, interacting with foreigners Ubiquity of Mobile usage and social networking Languages barriers between different nationalities Cutural diversity between different nationalities Gap between students’ languages level High population growth rates

Technological environment Internet development Increase quality reduce costs of communication via Internet and Keep up with mobile phone Applications Infrastructure (laptop, webcome, earpiece , radio...) Popularity of online international communities

Conclusion : Develop a powerful community then develop the services

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Porter Competitive Model for FLAT WORLD Tourism and education Industry

Vietnam Market

Bargaining Power of Buyers

• Recreational Cyclist• Learners• Students

Potential New Entrant

Substitute Product or

Service

Intra-Industry RivalryFLAT WORLD

Rivals: Couchsurfing, ACET, RES, Viettravel

• Established international company

• Entering a New Market Segment in Asia , the world

• Property company• Telephone company• Internet company • Transport company

Bargaining Power of Suppliers

• Languages, soft skills courses

• Seeking scholarships• Tours

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The Business Model Canvas

FLAT WORLD Small house, big dream

Design by: JenniferAotto

31 Oct 2013

KEY PARTNERSPayment providersTelecom companyTransport companiesAffiliatesSocial networksWebsite companySponsorsAcademic institutionsTravel agenciesEducation centersYouth committee

KEY ACTIVITIESTeaching/Learning languagesand soft skillsCustomer supports (findcourses, students, teachers,groups, places, scholarships,...)Management website (content,chartroom)Helping seek for scholarshipsCreating long-last and reliablemembers relationshipsBusiness growth

VALUE PROPOSITIONSInternational interaction(Students/teachers/friends overthe world (online via chat roomsand voice calls, offline viaclasses or events))Reliable servicesAll services in oneInstallments payment

CUSTOMER RELATIONSHIPS International communityMembers (Online, offline)Clubs(English, presentation)Direct, indirect and long-lastrelationship buildingContact points

CUSTOMER SEGMENTSStudentsScholarship seekersTravelersLanguage teachersLanguage/softskills learnersInternet UsersSpeakers, famous peopleInstitutions

KEY RESOURCESWebsiteplatformMain office and affliatesCommunities, clubsLanguages/softskills coursesKey members

CHANNELSWebsiteTelephoneMain office and affiliatesFriendshipClubs, community

COST STRUCTUREFee for renting officesFee for establishing websiteFee for kickoff eventsWebsite managementCustomer supporting servicesFee of organizing eventsTeachers ´payments

REVENUE STREAMSServices feeTuition feeMoney from SponsorsMembership fee

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Business Description and Vision2

1 Introduction

3 Organization and Management

6 Conclusion

CONTENTS

5 Financial Analysis

4 Marketing and Sales Strategy

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Financial Analysis

Estimate of start-up costs

• Fixed costs • Operating costs

1 year forward2 years forward

Projected income 1 year forward 2 years forward

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Start-up costsAnd

Operating costs

FLAT WORLD

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Start-up costsAnd

Operating costs

FLAT WORLD

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FLAT WORLD

Start-up costsAnd

Operating costs

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Start-up costs - Fixed Costs

Quantity Characteristic

Office space (administration office and classes)

1 -4 floors -50 m2 each floor -Basement for parking - 500 USD per month

Desktop CPU 2 200 USD

Laptop 11 No need to buy

Smart phone 3 300USD

Vehicles 11 No need to buy

Printing Machines 1 200 USD

Internet/Phone installment

11 100 USD

Website establishment 1 100 USD

Total Fixed Costs– start-up (1st month)

1 month 1400 USD

Total Fixed Costs– start-up (year one)

1 year 6900 USD

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Start-up costs -Fixed Costs

Items Investment required

Total Fixed Costs– start-up 1400 USD

Total Fixed Costs– Year One 6900 USD

Total Fixed Costs– Year Two 6000 USD

Total Fixed Costs– Year Three 6000 USD

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Start-up costs – Operating costs

Items Investment required

Note

Maintaining website

20 USD Done by members

Internet/Phone fee

50 USD per month

Wages for employees

- No need to pay for the 1st year

Fee for buying equipments for organizing events

50 USD per month

Printing documents

50 USD per month

Total Operating costs– Year One

2220 USD

Total Operating costs– Year Two

Including wages of Staffs

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Projected Income

Items Fee Note

Offline course fee 300 USD one course

-Basic course -TOIEC, IELTS, TOFL

Membership fee 30 USD For one person one year

Online learning fee 30 USD For one person one year

Tourism fee 50 USD For one person one month

Projected income – year one

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Conclusion

Focus on Vietnam market on students, on English services

Establish a large community

B Establish a powerful team

SizeServices Partners

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References

Lectures of professor AndreaOslo Manual 2005Powerhouses of Innovation Full Report

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INDEX

SWOTPESTPORTERCANVAS

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Index - SWOT

Discover New Opportunities. Manage and Eliminate Threats >> the niche market

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Index - PEST

Identifying "Big Picture" Opportunities and Threats

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Index – Porter’s Five Forces

Assessing the Balance of Power in a Business Situation.By thinking about how each force affects you, and by identifying the strength and direction of each force, you can quickly assess the strength of your position and your ability to make a sustained profit in the industry

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Index - CANVAS

The Business Model Canvas is a strategic management template for developing new or documenting existing business models. Enable you to quickly see areas were your strategy and those of your

competitors converge It shows areas of divergence, where your company’s strategy differs

significantly from that of your competitors It also helps you to see “white space” opportunities for innovation and

competitive differentiation

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