track-o-mat christian bjornli dennis ly rohit navale carla marcorio
Post on 19-Dec-2015
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TRANSCRIPT
Track-O-Mat
• Circular sticker attached to objects which reflects radio waves• Made of foil aerials with
integrated chemical substances• Software supporting device
Track-O-Mat Usage
• Private usage–Software supporting device
• Logistics–Tracking in real-time basis–Satellite –Globalized service
Market Analysis
• Canada• Over 34 million people• Strong household consumption• High-tech industrial society• Focus on mobility
Strategic Entry
• Advertisement through:–Internet (Wired.com & Business
week)–Social media (Facebook, Twitter)–Offer as a freeware for selected
companies–Blogs
Risks
• Economic risk–Limited partnership
• Political risk–Stable political environment–Democratic country–Safe business environment
• Legal risk–Legal administration affect distribution–Common law country
Benefits and Costs
• Costs–Legal costs–Distribution
• Benefits–Enhance customer satisfaction for
logistic companies–Patent rights–Outsourcing potential
SWOT Analysis
• Strength– Price competitive– Late mover advantage
• Weaknesses– Limited marketing budget– Industry with strong technological firms
• Opportunities– Increase in smart phones– Expansion through available e-shopping
• Threat– Infringement– Already established brand firms
Pricing
• Pricing Factors–Opportunity cost–Similar products
• Differentiating or Cost – strategy–Possibility to differentiate–Existing competition
Financial Evaluation& Assumptions
– Product cost given approximated industry markup 10% - 20%.
– Including 5% corruption of merchandise.
– R&D and After Purchase service tech support
– Financing 50/50 equity and Debt
• Year 1•
• Production• Number of units 50 000,00• Cost per unit 60,00• cost of product - 3 000 000• R&D - 50 000 • service - 90 000,00• Total production cost -3 140 000,00• Financing• Amount of Debt @ 13% 1 570 000,00• Equity 1 570 000,00• Interest expense 204 100,00•
• Earning • Sales Price 72,00• Estimated sale 50 000,00• Total income + 3 600 000,00• Total cost ink debt cost -3 344 100,00• return on Equity 255 900,00•
• Return on Equity % 16,30 %
Relevant discount rate: 10Y Canadian Government bond with 3,23 % coupon
Years 0 1 2 3 4 5 6
Investment -$1
Cash flow 16,3 % 17,0 % 18,0 % 18,9 % 19,7 % 20,7 %
NPV (3,23 % discount rate) $1
Payback in year 6 when adjusted for opportunity cost of risk free investment;
Cash flow 16,3 % 17,0 % 18,0 % 18,9 % 19,7 % 20,7 %
Accumulated cash flow in absolutes exceeding investment of $1 -0,84 -0,67 -0,49 -0,30 -0,10 0,11
Payback period in absolutes is between 5 and 6 years (5,2)