E business report Essay
By providing this convenient service, we expect to make tennis more accessible to Hong Kong people in order to make this sport more popular. As a new company, In order to Introduce our company and services to the customers, promotion would be made through web 2. 0 tools, including the Backbone and smartened APS. In addition, the revenues of Tennis Corner would mainly rely on the commission charge on coaches in short term, together with the advertisement revenue from the advertisers In long term. The Initial Investment would be HOOKED,OHO and the payback period would be within 2 years.
As Tennis Corner has its outstanding competitive advantages, marketing strategies ND revenue model, It would able to generate sustainable Income and become one of the leading companies In the market within 3 years. If we have sufficient capital, we will expand our business of online purchase of tennis equipment and online class registration to China or other Asian countries in 5 years. 2. Vision and Mission Statement Mission: To promote tennis in Hong Kong by offering one-stop service for people who are interested, especially the young generation. To nurture talented local players to compete In local tournaments.
Vision: To reach 50,000 registered members
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We will provide a realistic online platform for customers to register tennis class and arches tennis equipment, so customers can enjoy our one-stop service. For tennis class, this online platform is created for the convenience of our customers in order to reduce their time cost. Firstly, we will outsource many professional coaches in different districts and update their available schedule and promotion videos on website and the app. So customers can choose the coach and time slot that they prefer and then we will arrange it. Customers can also use our direct access link to book public tennis court.
Besides the online class registration, we will offer online tennis equipment shopping s well. Firstly, we will connect with some small sized tennis equipment retail stores to sponsor us some discounted tennis equipment and we will promote their shops on Tennis Corner in return. Customers can simply place a purchase order then the equipment will be delivered by DHAL in three days. Customers are able to check the availability of the coaches, the tennis equipment that we still have stock and the status of the equipment during delivery on the website, smartened or tablet. Payment methods We accept customers’ payment through Papal.
Tennis Corner has considered that any people are worried about the security on their online payment. Papal is a safe payment method, which can guard the customers’ personal and financial data and protect them from any unauthorized transaction. Thus, it increases the credibility of online shopping. Customers can get and know more about Papal on HTTPS:// www. Papal. Com/Hack Credit transfer from customers’ bank account, and credit card like VISA are also accepted. But the customers need to tell us the transaction information such as the bank account, the time they made payment, product name and so on. . Revenue Model Our revenue model would base on three main sources. In the first place, we rely on advertising fee by our advertisers. Another is the For the commission charged on the coaches, it is a kind of introducer fee for service revenue model. Before arranging the class for the coaches, no fee would be charged. Once we successfully match a student for the coaches, they need to pay us the tuition fee of first lesson as introducer fee. We have considered carefully if we should charge our members annual subscription fee that they can enjoy various discount of tennis equipment and tennis class.
However, as a new company, it is more important to gain a positive reputation and we don’t want to risk losing our customers. Therefore, all members are entitled to the special offers free of charge. For the advertising revenue, it will be our major source of revenue and we hope that it can generate a sustainable and huge capital inflow. In order to attract some multi- national sports enterprises to place advertisement, Tennis Corner itself should have a certain level of popularity. Therefore, the more members we have, the higher advertising revenue we can generate.
We expect that the advertising revenue in the iris year will be within $100,000. As we are confident to become the leading companies in the market within 3 years, we believe that the advertising revenue will increase by multiple and the amount of advertising fee will account for a greater proportion of total revenue in the next few years. Finally, for the sales of tennis equipment, as mentioned that we will connect with small sized sports equipment stores to sponsor us some tennis equipment with special discounts, then we will mark up the price a bit in order to keep it as low as possible.
Even though we expect that the sale of equipment will not contribute much o the total revenue of Tennis Corner, it is a possible source of income. 5. Market Analysis Segmentation We use the geographic segmentation (Hong Kong), demographic segmentation (age group) to segment our target market. Targeting Concerning the hectic lifestyle of Hong Kong people, we would like to promote an alternative sports game other than some popular sports to Hong Kong people. Tennis is an individual sport, which doesn’t require many people to participate, and there are many tennis courts in Hong Kong, so it is very suitable for Hong Kong people.
Teenagers and children would be our target customers. As we are university students so we can maintain connections with the tennis committees of local universities and organize some activities and provide some special offers for them. Besides, in order to explore new talents, we will organize some tennis workshops in kindergartens, primary schools and secondary schools and cultivate their interests so we can attract parents to register our classes for their children.
According to Census and Statistics Department, the majority of the Hong Kong population is above 1 5 years old and one-fourth of them (1. 46 million) had used online purchasing services in 2012. Besides, an online shopping survey of Mastered Worldwide 2012 reported that 96% of online shoppers browse online before place a purchase order. The surveys show that an increasing number of local people are using online shopping service and the market is still expanding. Therefore, it is beneficial to the future development of Tennis Corner. Marketing Strategy with Web 2. + tools 1 Online social media linked with Tennis Corner As teenagers are one of our major target customers, we will create a Backbone page and open an Mainstream account to keep them informed of the news of our company. Besides, we will open a Youth channel to upload some tennis tutorial videos and the promotion videos of our coaches to cultivate people’s interests in tennis. In addition to teenagers, we will also connect with other forums like HACK discuss, Baby Kingdom, U wants to gain greater exposure of Tennis Corner to more people. We will also plan some collaboration projects with other media to further promote our company. Smart phone application As most of the people are using the smartened nowadays, mobile applications would be a good way to capture our potential customers. We will not charge the seers for downloading in order to attract their trial. However, we will generate revenue from them once they use our service, it is so convenient that they can buy tennis equipment or register tennis class anytime. Tennis Corner helps save their time, as they don’t need to go to sports equipment chain stores to buy equipment or sports center to find a tennis coach.
Pricing Strategies We have different pricing schemes to make our service more attractive. Loyalty scheme: The member who spends 100 on our product can earn 1 point. They can use those points to redeem a wide variety of rewards. We provide several rewards for our customers to redeem such as a new tennis racquet or a free tennis lesson. Festival Sale: Before a week of the festivals like Christmas Eve, We will provide discounts for our customers as people have to buy Christmas gift, it helps increase the sales of the tennis equipment. 6.
Basic Financial Analysis In This section, a financial analysis of Tennis Corner by using Return on Investment (ROI), Payback Period and most importantly, Net Present Value (NP) will be investigated. Our goals are basically to keep our expenses low while maintaining a teddy growth of sales and service revenue. We predict Tennis Corner is going to have an initial revenue of HACKED,OHO in the first year, while there will be a 10% growth of revenue every year and a 10% increase new computer, server, renting the office, outlet and developing programs to support the establishment of our website and online store.