Team Pangaea, Wed. Nov. 28

Tingzhen Emi John Gundeep Fanxing Jeffrey

ENGR145 High-Tech Entrepreneurship Final OAP

Process & Problem IdentificationIdentified problems that could be turned into business opportunities

Decided to explore market opportunity for “Mobile Social Networking”

Conducted primary research to understand the needs of 5 use cases

High School StudentCollege Student White Collar

ProfessionalsBlue Collar

Professionals Traveler

Problems:• Finding potential business partners/employees• Relationship building with employees/colleagues• Connection with other people in the working environment• Collaborative calendar access

Based on feasibility, market size, viral effect, mobility, competition and personal interest, we selected white-collar group as our first bowling pin

Built Business Concept for MobiLinkTM

Product Overview: MobiLink

Profile Sharing and Viewing

• Users generate profiles containing business, personal, and contact info

• Profiles are broadcasted and received via Bluetooth by nearby mobile devices

• Users can customize their security and viewing features

• Updates made to profiles are synced with an online server and updated on the mobile devices of friends who are not in the current vicinity

Real-Time Alerts

• Users can customize their application to display alerts when certain people enter or exit the room

Dynamic Calendaring

• Allows users to quickly schedule meetings

• The application identifies free spots in both schedules, calculates itineraries, and syncs new meetings with other devices and computers

A

Users

B

“Pull Strategy” – Users B’s profile is sent to User A and networks of User B are displayed

& Wi-Fi

• User A launches Mobilink• User A wants to know the network of User B

Query sent to online server for information

A

C

• User A has asked for alert when C is in proximity

Pre- selected request sent

“Push Strategy” – When C enters, participant info resembles information needed by User A, hence an alert is sent

& Wi-Fi

Database ServersA

• User A wants to upload the information on the web client

Wi-Fi

Contacts updated in the database and sent to Web Client

www.lpi.com

Web Client

A

B

• User A and B want to use “Group Calendaring”

Wi-Fi

“Pull Strategy” – Calendar info is retrieved and database is updated with new appointment

Internet social networking users

Revenue of Mobile Social application

Social community access

Advertisement

Downloading

Market Analysis

12%

20%

Business Model

Year 1 Year 2 Year 3

Financial ModelAssumptions Initial

Figure% of Target Market

we attract10%

Visitors that download

20%

Visitors that pay 10%

Yearly Attrition rate 10%

Customer Care 5%

Acquisition Cost per customer

$1.20

Ads per day per Customer

3

CPM $4

Subscription fee $5

Employee Headcount 14

Operating Profit: Year 1 - Year 5

-$50,000,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

1 2 3 4 5

Year

Revenue

Costs

Profit

Go to Market Strategy Plan for Market Expansion

2009 2010 2011 2012 2013

U.S. Mobile Phones Users U.S. Mobile Carriers Global Expansion

Enter US Market

Before crossing the chasm Crossing the chasm

Goal Building User Base (B-C) Entering mainstream (B-B)

Action plan

Viral Marketing ( blogs, forums, social networking site such as LinkedIn.com) Tech-conference, RoadshowsSpokes-personPromotion/Contest

Build software into mobile phones Form partnership with mobile service providers: AT&T, Verizon, T-Mobile etc.

Result 2.5 million users 39 million users

Competitor Competitor’s Strength MobiLink’s Strength Locates users with Sprint GPS-enabled phones in real time Sends proximity-based messages

Bluetooth technology fills in the gaps left by GPS Allows access to random users

20+ million unique users worldwide Interconnects to 100+ mobile operators and media companies

Gives real-time alerts Enables dynamic calendaring

Available in more than 22 U.S. cities Enables the meeting of crushes and friends-of-friends

Available wherever the bluetooth devices come in range Gives real-time alerts

Competitive Analysis

Potential Risks

Competitors

Technology

Founding Team & Employees

& launches Mink applicationMike enables

Mike Brown

Mike’s iPhone detects the presence of Chi-Hua, Tom & Alex

Allows the user to connect to others in “real-time”•“View Profile” provides information about the people in the proximity• “Social Proximity Graph” tells the user about the networks of a specific person in the room• “Customized Alert” informs the user about the presence of a specific person/group once they arrive

Mike checks for common networks btw Chi-Hua & him in the roomMike meets Chi-Hua via Alex Gould

Alex Gould

Business Contacts

Mike & Chi-Hua wish to have lunch together on some other day

Chi-Hua opens the “Group Calendar” feature, chooses Mike Brown from business contact list and clicks on the “Sync” button

Chi-Hua’s calendar displays the free slots on Mike’s calendar along with the geographic location of Mike’s previous meeting

Makes “real-time” scheduling of meetings /appointments quicker & efficient

Lunch with Mike Brown

Chi-Hua & Mike schedule their lunch on 26th November (12 noon)

AssumptionsUnits

Office Space Sq. ft per employee ft 250

Cost per Sq. ft ($) per month $ 2.50

Months per year 12

Customer Care Customers that need customer care % 5

Customers that are Tier one % 80

Customers that are tier two % 20

Cost per call/Tier 1 $ 1.00

Cost per call/Tier 2 $ 10.00

Acquisition Costs Cost of leading potential customer to website($) $ 1.00

Cost of enrolling customer to use product $ 0.20

Total Cost of acquiring 1 customer ($) $ 1.20

Marketing Cost per Tech conference $ $500

Conferences attended per year $ 10

Market Assumptions Total US mobile population 270,000,000

Annual growth rate of US mobile industry % 8%

White collar group in the US % 40%

New visitors coming to the site % 10%

Growth rate of visitors coming to the site per year % 10%

Visitors downloading the software % 20%

Yearly growth rate of visitors downloading the software % 10%

Visitors who become paying customers % 30%

Growth rate of visitors who become paying customers % 10%

Yearly Attrition rate % 10%