Xpress Isp - Business Report

Xpress ISP House no. 24, Road no. 21, Sector 6 Uttara, Dhaka www.xpressconnections.com

Co- Owners: Sanwal Mofiz, Shamsul Arifeen, Nahidul Islam, Kazi Ishtiak Bin Yusuf, Mohammad Tayub Ullah Khan & Faisal Hossain.

Description of business: This business will provide internet connection through optical fiber cable networking to consumers and businesses (Universities, corporate houses etc.) Initially this business will cover in areas like Uttara, Tongi and Board Bazar (of Gazipur) as there is a huge demand of high speed internet in these areas. The service will include internet connections ranging in different bandwidth with a maximum speed of 128 kilo byte per seconds (Downloading). For consumers and businesses this service will have different packages. Financing: Initially each of the co-owners of the business has invested 10, 00,000 (10 lakh BDT) and as a result the total invested amount on this business is 60, 00,000 (60 lakh BDT). The capital structure does not include any debt therefore. This report is strictly confidential and is the property of the co-owners listed above. It is intended only for the use by the persons to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent of the company is prohibited.

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Table of Contents

Executive Summary …………………………………… ……………………3 Environment & Industry analysis………………… ……………………4 Description of Venture………………………………… ………………...10 Service

plan………………………………………………

……………………17 Marketing Plan…………………………………………… …………………23 Organizational

plan……………………………………

………………….29 Assessment of risk……………………………………… ………………….33

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Financial Plan……………………………………………… ………………..33 SWOT analysis…………………………………………… ………………….36

2.0 Executive Summary

This report basically has all the information regarding the Internet Service Provider named Xpress (Pronounced Xpress). Xpress ISP will provide internet connection through optical fiber cable network using the VPN technology. The maximum bandwidth is 1024 kilo bit per second which gives a downloading speed of 128 kilo bytes per second. Because of this prime speed, this service will include Internet Connectivity, Business E-mailing & Hosting, Hosted Spam Firewall, Network Monitoring, video conferencing etc. This business will serve from business to business and business to consumers as well. Serving the consumers after giving them the connection will be strictly monitored so that proper service is ensured. Packages and services for consumer and businesses will differ. Some of our competitors are BracNet, Aamra Networks etc. Xpress will follow a market penetration strategy to be a market leader. The prime positioning in the marketing strategy is the speed of the internet. This business will have a significant amount of investments in marketing and advertising of the brand. In the production planning, this business will need technical equipments like router, network switches, hubs etc. 3

This organization will be basically a decentralized organization. Although new technologies are coming, but the speed of Xpress internet will ensure that the business sustains in the market. A brief description about the financial planning is given in this report. The political and environmental threat to this business will be there and that is also briefly analyzed in the report.

3. Environment & Industry analysis:

3.1 Political, Economy and Technology analysis: It is important to know the present and present the environmental and industry condition because this will have a great impact on our new venture. Environmental factors are consists of political, economy, culture, policy and other things. We will consider the first four of them. 3.1.1 Political condition: The political perspectives of a nation should be examined according to Type of government, Stability of government, Quality of host government’s economic management, Change in government policy, Host country’s attitude toward foreign investment, Host country’s relationship with the rest of the world, Fairness and honesty of administrative procedures, Closeness between government and people. Bangladesh has Parliamentary form of government, where PRESIDENT is head of the State and PRIME MINISTER

is head of government. It’s a democratic country. But the present condition is not 4

looking too good for the whole country because the condition is now changing day by day. The care taker government is now trying to make a situation where the entire political group can participate in the coming election procedure. For us it’s important because we will be starting our venture from the January, 2009. In that time we are expecting a new political government and where they can maintain a stable condition for business. Their important causes with out a stable condition we cant maintain our business. The judiciary system has been separated from the government. So we expect we will have a fair case ending if any thing goes wrong. But still government has to check and reduce the corruption. If the corruption is not reduced in the coming year we will have to face a difficult time because the business cost will be gone up.

3.1.2 Economic condition: The economic situation of Bangladesh is motionless at this moment under the power of caretaker government. Recently, Chief Adviser (CA) Fakhruddin Ahmed said at a press conference that the country's current economic slowdown will be over as the interim government has already taken some measures, including formation of a private-public business forum, to address the situation. We are very much optimistic like our Chief Adviser that the problem will be reduced in the coming year. But still we have to recognize the fact that the purchasing power of general people has been reduced, though our target market has not been affected by a great deal. The business companies which we are targeting have made some profit during these 2 to 3 years. And in the next year we are expecting that the economic condition will be better for every one cause their will be a new elected government who will take charge for every economic factors.

The Asian Development Bank (ADB) forecasts six per cent GDP growth in the current fiscal year (FY), which is slightly lower than 6.7 per cent growth of the last FY. Despite the generally 5

positive outlook though, substantial under pricing of energy products is continuing to build large financial imbalances, which are posing a growing threat to both fiscal and monetary stability. Other risks include political uncertainty that could disrupt the economy in the lead up to general elections due in January next year, it said, adding that conditions for expansion in industry as well as in services are expected to be favorable, though the frequent power disruptions need to be addressed. Despite the central bank’s indication of a continuing tight monetary policy, the elections suggest that a broadly accommodative stance will continue and, with the legacy of large rises in monetary aggregates in FY2006, only a slight moderation in inflation is expected during the year. Apart from international price rises, inflationary pressures include likely further upward adjustments to domestic oil prices, though these may well come only after the January elections and expected further depreciation of the taka. Developing Asia’s strong economic expansion is expected to continue, with growth projected at 7.7% in 2006 before easing to 7.1%, the ADB report said.

3.1.3 Technology:

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The ISP and data processing industry is now being considered a rapidly changing industry due to continuous technological innovation. The duration period of the change is very short and that’s why we have to make careful short term marketing decisions as well as to be prepared with contingency plans given any new technological developments which may affect our services. 3.2 Government Policy towards ICT: The government has taken development type policy towards the ICT sector. Short description of policy is given below, This Policy aims at building an ICT-driven nation comprising of knowledge-based society by the year 2006. In view of this, a country-wide ICT-infrastructure will be developed to ensure access to information by every citizen to facilitate empowerment of people and enhance democratic values and norms for sustainable economic development by using the infrastructure for human resources development, governance, e-commerce, banking, public utility services and all sorts of on-line ICT-enabled services. Bangladesh, having the advantage of cost-effective labour, must endeavor for expansion and export of ICT-enabled services such as medical transcription, data entry, data processing, call centers etc. at home and abroad. NGOs interested to contribute for the expansion of ICT sector, will be provided with facilities. 3.3 Analysis of the competitor: Competitive threats come from other ISPs, including the following companies: Global, Grameen Cyber net, Bangladesh Online and Brac Net. Most of our competitors offer solutions for Windows, and perhaps Mac, but ignore all other operating systems. With the rise of Linux and other alternative operating systems, there is potential for Web Revolution to surpass its competitors. Key competitors are detailed as follows:

Bangladesh Online 7

Bangladesh Online offers a wide variety of services to match customer needs. They have split information into two categories: 1. Basic service: for customers looking for a simple, inexpensive way to connect their home or business to the Internet. 2. Complete details: for customers who need a custom solution for unique requirements, it offers the following services: Connectivity: •

ADSL & SDSL.

•

Modem service.

•

ISDN.

•

Special Services:

•

FTP services.

•

Leased lines.

•

Web hosting.

Brac Net Brac Net is one of the largest ISP. Locally owned and operated since 1998, Arizona.Net specializes in modem dial-up, ISDN, dedicated local area network (LAN) access and T1 (a highspeed network link that transmits data at 1.5 Mbps) to the Internet.

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For dialup connections, Brac Net uses an all-digital modem pool consisting of equipment from US Robotics, Ascend, and Livingston. All of their locations maintain a full 56k modem pool, upgraded to the latest version of the v.90 standard. These digital modems allow for a more reliable connection, and enable them to make ISDN connections on the same equipment, so they can offer 64k ISDN service with all dialup accounts. To make sure that customers can get to their services, Arizona.Net maintains a no-busy-signal policy. If customers report a busy signal, Brac Net has the ability to connect as many telephone lines as necessary to relieve the problem. Currently, none of their locations are having any problems with busy signals. Brac Net maintains multiple separate T3 (a high-speed network link that transmits data at 45 Mbps) connections to the Internet backbone through multiple backbone providers. These separate connections give Brac Net more than enough bandwidth to handle future growth as well as provide the security of uninterrupted service.

Grameen CyberNet Grameen CyberNet helps its members have an enjoyable and productive Internet experience by providing reliable, unlimited Internet access and Web hosting services, outstanding technical support, useful information, and innovative services. Prices are among the lowest in the industry. EarthLink offers the following services: •

Internet access.

•

High-speed access.

•

Web hosting.

•

EarthLink Sprint bundle. 9

AAMRA NETWORKS

Global delivers complete Business Internet Solutions for any small business backed with its award winning service and support. Its business plans--whether Web Hosting, e-commerce, high speed dedicated access or Web Design--are packaged to fit customer needs today and are tailored to grow along with business for tomorrow. Global offers the following business solutions: •

Web hosting.

•

Business access.

•

E-commerce.

•

Domain reservation.

•

Dedicated access.

•

Dialup access.

•

SDSL Waiting List.

•

Promotional solutions.

•

Help desk.

4.0 Description of Venture

4.1 Internet Connectivity 10

Dedicated Bandwidth Internet is the flagship product of Xpress networks limited. Dedicated link is established using fiber optic or wireless radios between the state-of-the-art POPs and NOCs and the gateway that connects customer LAN. Our network ensures excellent quality, high capacity, and low latency Internet connectivity. Xpress networks maintains redundancy of all hardware used in the network along with its SEAME-WE-4 (email backup by VSAT) to ensure fast access to the World Wide Web. Main Features •

Dedicated Bandwidth Internet from 512kbps/512kbps onwards

•

Free installation and equipments

•

SEA-ME-WE-4 with email backup by VSAT

•

24/7 Customer Support with auto hunting number

•

Proactive monitoring with SMS notification

•

Monthly Uptime & Log Report

•

Web-based interface to monitor bandwidth usage

•

Business Class Service Level Agreement

4.2 Business E-mailing & Hosting

Email and web site are two of the most important parts of any business - they define who you & your business are, and that definition is often the difference between 11

success and failure. Business Email & Hosting Services by Xpress networks limited gives a business the expertise, reliability, and support to effectively compete with larger organizations. Our set of features, in the brand name Total Office, offer you "big company capabilities" in user and domain creation and customization, email collaboration, and the assurance that your communications are reliable and secure. The service offers state-of-the-art data security measures spanning physical monitoring, redundant, continuous and protected power infrastructure, as well as fire prevention, detection and suppression systems. The policies and practices used by Total Office help prevent sabotage, accidental loss and the resulting unnecessary downtime. Thus, one can leverage own resources with a premium outsourced email solution that's priced to give you a real return on what may be the most important investment: communication.

4. 3 Hosted Spam Firewall

Spam has rapidly turned from a mere nuisance into a major security threat and financial drain for organizations worldwide. While at first spam was relatively easy to block through the use of blacklists or basic content filtering techniques, spamming methods have advanced to the point that these technologies are no longer sufficient or cost-effective. The financial

costs

associated with spam are also large and growing. Therefore, with such an 12

influx of unwanted, dangerous junk mail, it is necessary for organizations to broaden the efforts at combating spam by applying a new generation of anti-spam solutions that leverage multiple layers of protection, including maintenance services. After years of R&D, Xpress networks has designed an anti-spam solution named NOSPAM, suitable for small to large enterprises.

4.4 Network Monitoring

ePulse is a remote network monitoring service, developed by Xpress networks limited, that keeps a constant watch over our customer servers and network components, 24/7/365. It does this by creating and sending target-specific tests and verifying that devices are connected to the Internet, responding properly and delivering the correct contents to customers in a timely manner.

Monitoring tests are performed up to every minute simultaneously from multiple

geographically dispersed monitoring locations. When an error is detected, a triple-stage verification process is started using three independent resources to confirm the error. Once the error is confirmed, it sends SMS notifications to all of designated contacts. Thus, ePulse notifies IT managers, webmasters and support teams about problems with the monitored target

4.5 Video conferencing

Videoconferencing

Service

is

a

process

of

interactive telecommunication which allows two or more locations to interact via two-way video and audio transmissions simultaneously. In today's business climate, companies are highly concerned with time, cost and safety-related issues. As a result, Videoconferencing has become more important than ever before with significant 13

benefits. Xpress networks limited has brought the Videoconferencing Service in conjunction with the internationally renowned brand POLYCOM. With Polycom's

crystal-clear audio sharp

visuals and intelligent voice tracking, group video meetings have become even more efficient and productive. The team of Xpress networks is always ready to demonstrate the value of video conferencing and show the benefits it can bring to your organization. 4.6 Video Surveillance

Remote Video Surveillance is an integral

part

of

every

business

monitoring as even a small lapse may cause dangerous situations. An Xpress network

limited

provides

Video

Surveillance solutions with in-depth business monitoring expertise and reliability that can make your business

secure against threats. The Solution offers single vendor, cost-efficient and

future-proof solutions for security and remote monitoring applications. Connecting directly to the network, our service can distribute high-quality video over any IP network, whether local or the Internet wired or wireless. The Video Surveillance System is able to transmit digital video without the need for a dedicated physical infrastructure. It uses standard IP networks, such as LANs or the Internet, for transporting information, rather than dedicated point-to point cabling, such as that used in analog video systems. Thus, with Xpress networks’ Video Surveillance Service, an authorized user can access video at any time from any computer connected to Internet anywhere.

4.7 IT Infrastructure Management

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Xpress networks’ IT Infrastructure Management Service is designed to help organizations manage, secure and support all IT assets. With this service, organizations can reduce operational costs, increase operational efficiencies, set the foundation for future growth, and align IT with business priorities. This, single-source services, is designed to help keep multi supplier environment operating at peak performance. We specialize in identifying redundancies, recognizing bottlenecks, and staying technologically current by providing One-Stop-Solution. We focus not only on your Existing Network through Helpdesk, Server, Storage and Network Management but also all Probable Future Networks through Project Management and Provisioning. Thus, this One-Stop-Solution of IT Infrastructure Management Service of Xpress networks would simplify your IT Infrastructure with improved reliability and availability.

4.8 Data Backup & Disaster Recovery

DATA SAFE by Xpress networks limited is an online data backup service that will store your valuable data in encrypted form in a remote offsite location that has full bank grade security systems. It can help back up and retrieve files recently worked on or had been damaged by a disaster such as fire, flood, or harmful computer virus etc. The technology offers

proven methods to

recover

and

restore data to get up and running as soon as

possible with minimum interruptions. No extra internet bandwidth or valuable time is required for uploading the data, as the service only launches when the PC/Laptop is idle. Its easy to use DATA SAFE as it continuously monitors selected files, backing them up whenever they change. Even if the back up process gets interrupted it will resume later on, picking up exactly where it left off. Thus, DATA SAFE is a small application that downloads and runs in the background of the computer, designed to be used by everyday computer users without the benefit or requirement of an IT support staff, providing online continuous backup in a secure offsite storage. 15

4.9 Size of Business Office Equipment and Personnel: Office Equipments: •

Office Furnishing

•

Lighting

•

Fans and Air coolers

•

Computers

•

Internet service provider

•

Stationery

•

Utilities

•

Others

Names of Suppliers of Office Equipment: Furnishing 16

OTOBI Limited 14 Dilkusha C/A, Dhaka-1000, Bangladesh Tel: 9563931-2, 9666747

Lighting, Fans and coolers Shwash Lighting & Electronics Ltd. 57, Shahid Syed Tajuddin Ahmed Sarani, Rasulbagh, Mohakhali Dhaka-1212, Bangladesh Tel: 9882791, 8815246, Fax: 9562548 Web site: http://www.shwash.com Electrical Appliances World Electronics. 36 Nawabpur road, Nawabpur Dhaka-1215, Bangladesh Tel: 8119625, 8118052

Telephones Dhaka Phone Ltd. 91, Mohakhali, Dhaka, Bangladesh Tel: 9332000, 9348594, and 9348566 Fax: 8314867, 8314193 Stationery Gyankosh 10-11, Mumtaj Plaza, Dhanmondi, Dhaka Tel: 8623251 Others 17

FOOD / TOILETRIES / TOOLS/ CAR WASHER/ From Local departmental stores

4.10 Personnel Required To run the business we need to appoint some employees that include one manager who will be in charge officer, One Accountant (Accounts, finance and operational) who will look after about accounts and finance, Two sales people who will be working under the showroom manager and take care of our customers, in this case at the first year sales person will be one and rest of years will be two. On the other hand, we will appoint one car mechanics and one assistant who helps technician. We also need one caretaker. Manager and Accountant may come from the partners. Sales people and other workers will hired from outside.

5. Service plan:

5.1 Flow Chart of service

BTCL (supplier)

Xpress Network

•

Internet Connectivity

•

Business Email & Hosting

•

Hosted Spam Firewall

•

Network Monitoring

•

Video Conferencing

B2C

B2B

18

•

Internet Connectivity

5.2 Equipment

5.2 Machinery and Equipment: Surveillance cameras

Closed-circuit television (CCTV) is the use of video cameras to transmit a signal to a specific place, limited set of monitors. It differs from broadcast television in that the signal is not openly transmitted, though it may employ point to point wireless links. CCTV is often used for surveillance in areas that may need monitoring such as banks, casinos, airports, military installations and convenience stores. The increasing use of CCTV in public places has caused a debate over public surveillance versus privacy. People can also buy consumer CCTV Systems for personal, private or commercial use. A more advanced form of CCTV, utilizing Digital Video Recorders (DVRs), provides recording for possibly many years, with a variety of quality and performance options and extra features (such as motion-detection and email alerts). In industrial plants, CCTV equipment may be used to observe parts of a process from a central control room; when, for example, the environment is 19

not comfortable for humans. CCTV systems may operate continuously or only as required to monitor a particular event.

Cat 5

Category 5 cable, commonly known as Cat 5, is a twisted pair (4 pairs) cable type designed for high signal integrity. Many such cables are unshielded but some are shielded. Category 5 has been superseded by the Category 5e specification. This type of cable is often used in structured cabling for computer networks such as Ethernet, and is also used to carry many other signals such as basic voice services, token ring, and ATM (at up to 155 Mbps/s, over short distances).

Optical Fiber

An optical fiber (or fibre) is a glass or plastic fiber that carries light along its length. Fiber optics is the overlap of applied science and engineering concerned with the design and application of optical fibers. Optical fibers are widely used in fiber-optic communications, which permits transmission over longer distances and at higher data rates (a.k.a "bandwidth") than other forms of communications. Fibers are used instead of metal wires because signals travel along them with less loss, and they are also immune to electromagnetic interference. Fibers are also used for 20

illumination, and are wrapped in bundles so they can be used to carry images, thus allowing viewing in tight spaces. Specially designed fibers are used for a variety of other applications, including sensors and fiber lasers. LAN Adapter

A Network card, Network Adapter, LAN Adapter or NIC (network interface card) is a piece of computer hardware designed to allow computers to communicate over a computer network. It is both an OSI layer 1 (physical layer) and layer 2 (data link layer) device, as it provides physical access to a networking medium and provides a low-level addressing system through the use of MAC addresses. It allows users to connect to each other either by using cables or wirelessly.

Router

A router is a computer whose software and hardware are usually tailored to the tasks of routing and forwarding information. Routers generally contain a specialized operating system (e.g. Cisco's IOS or Juniper Networks JUNOS and JUNOSe or Extreme Networks XOS), RAM, NVRAM, flash memory, and one or more processors, as well as two or more network interfaces. High-end routers contain many processors and specialized Application-specific integrated circuits (ASIC) and do a great deal of parallel processing. Chassis based systems like the Nortel MERS-8600 or ERS-8600 routing switch, (pictured right) have multiple ASICs on every module and allow for a wide variety of LAN, MAN, METRO, and WAN port technologies or other connections that are customizable. Much simpler routers are used where cost is important and the demand is low, for example in providing 21

a home internet service. With appropriate software (such as Untangle, SmoothWall, XORP or Quagga), a standard PC can act as a router.

Network Hub

A network hub or repeater hub is a device for connecting multiple twisted pair or fiber optic Ethernet devices together, making them act as a single network segment. Hubs work at the physical layer (layer 1) of the OSI model. The device is thus a form of multiport repeater. Repeater hubs also participate in collision detection, forwarding a jam signal to all ports if it detects a collision. Hubs also often come with a BNC and/or AUI connector to allow connection to legacy 10BASE2 or 10BASE5 network segments. The availability of low-priced network switches has largely rendered hubs obsolete but they are still seen in older installations and more specialized applications.

Network Switch

A network switch is a broad and imprecise marketing term for a computer networking device that connects network segments. The term commonly refers to a Network bridge that processes and routes data at the Data link layer (layer 2) of the OSI model. Switches that additionally process data at the Network layer (layer 3) (and above) are often referred to as Layer 3 switches or Multilayer switches. 22

The term Network switch does not generally encompass unintelligent or passive network devices such as hubs and repeaters. Repeater

A repeater is an electronic device that receives a signal and retransmits it at a higher level and/or higher power, or onto the other side of an obstruction, so that the signal can cover longer distances without degradation.

Amplifier

Generally, an amplifier or simply amp, is any device that changes, usually increases, the amplitude of a signal. The "signal" is usually voltage or current. In popular use, the term today usually refers to an electronic amplifier, often as in audio applications. The relationship of the input to the output of an amplifier — usually expressed as a function of the input frequency — is called the transfer function of the amplifier, and the magnitude of the transfer function is termed the gain. A related device that emphasizes conversion of signals of one type to another (for example, a light signal in photons to a DC signal in amperes) is a transducer, or a sensor. However, a transducer does not amplify power.

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Server

A server is a computer dedicated to providing one or more services over a computer network, typically through a request-response routine. These services are furnished by specialized server applications, which are computer programs designed to handle multiple concurrent requests.[1] Examples of server applications include mail servers, file servers, web servers, and proxy servers.

6.0 Marketing Plan

6.1 Services and Pricing 6.1.1 Services We are offering internet services for two segments, firstly the consumers and secondly the businesses. The services of our Business to Consumers (B2C) will be: •

Fixed Bandwidth o

32 Kilo bit per second to 128 Kilo bit per second (Downloading speed: From 4 Kilo byte per second to 16 Kilo byte per second) Price: 800BDT

o

192 Kilo bit per second to 448 Kilo bit per second (Downloading speed: From 24 Kilo byte per second to 56 Kilo byte per second ) Price: 1000BDT

o

512 Kilo bit per second to 704 Kilo bit per second (Downloading speed: From 64 Kilo byte per second to 88 Kilo byte per second) Price: 1200BDT

o

864 Kilo bit per second to 1024 Kilo bit per second (Downloading speed: From 108 Kilo byte per second to 128 Kilo byte per second) Price: 1800BDT 24

This fixed bandwidth will provide excellent flexibility in terms of the requirement to the consumer. Our services will be backed by the Cisco software engineers who will ensure that we are providing our consumers with the service that we have promised. We will be providing internet connection to the three universities in Board Bazar Gazipur (Which are Open University, National University and Islamic Institute of Technology) as there is a huge demand for high speed internet. However we will be providing internet connections to offices in Tongi and Uttara as well. The services for our Business to Business (B2B) will be a fixed bandwidth of 512 to 1024 Kilo Bit per second. This bandwidth will provide a downloading speed of 64 kilo byte per second to 128 kilo byte per second. As we will be using VPN (Virtual Private Network) technology, the additional features of this B2B service is mentioned below:

•

Dedicated Bandwidth between Sites

•

Burstable Bandwidth for unexpected traffic needs

•

High scalability, only one physical connection is needed for every additional site

•

High security (without encryption firewalls), inter-branch traffic are completely hidden from 3rd parties including outsiders and other Xpress customers

•

Voice Traffic Prioritization

•

Network Redundancy where traffic can be easily re-routed

6.2 Distribution Initially our service distributed in three areas in Dhaka, which are •

Uttara (Sectors from 1 to 13)

•

Tongi 25

•

Board Bazar, Gazipur (Consumers plus three universities which are National University, Open University and Islamic Institute of Technology).

We will have our main office in Uttara. But we will have two regional offices in both Tongi and Board Bazar. Our marketing and Promotion will be initiated in these areas only we are focusing on these niche segments of the market.

6.3 Promotion and Communication Strategy 6.3.1 Market Situational Analysis According to some information we got from the internet, the market in the specific areas that we have targeted (Uttara, Tongi and Board Bazaar) have number of consumers given below: Potential Customers Household Consumers

Growth

2004

2005

2006

2007

2008

10%

101,041

111,044

122,037

134,119

147,396

5%

16,963

17,404

17,856

18,320

18,797

3%

2112

2764

3046

3316

3809

8.94%

120,116

131,212

142,393

155,755

170,002

Small Office/Home Office Corporate Consumers Total

The following shows the segments of the market (of 2008) of the specific area that we have targeted: 26

6.3.2 Target Market Our distribution of the service is divided into two parts- firstly consumers and secondly the businesses which includes universities and offices. However, initially our target market will be based on the demographics and we are targeting the young adults (Age 18 to 40), as they are the major internet users in both houses and offices. 6.3.3 Positioning Our market positioning will be based on the speed factor with a tagline “Fast…Beshi Fast”. We are positioning in terms of speed because we believe that when it comes to internet, the only thing that our target market will be concerned about is speed. 6.3.4 Media Planning We will be using both Above the Line (ATL) and Below the Line (BTL) mediums to promote our service. In ATL, our promotion will include print ads- which will be in newspapers and magazines. We will also promote our service through leaflets, which we will distribute in the three areas that we have targeted. As we have a plan to expand the business in the future, we are choosing mediums like newspapers and magazine so that it can create brand awareness. In BTL, we have a plan to organize a concert, which will be an event to promote our service. We 27

will also have a wall paint in some fast food shops (Like Helvetia) in order to promote our services. 6.3.5 Media Budget ATL

BTL

Newspaper and Magazine

Estimated Cost 2,00,000

Leaflets

20,000

Wall paint

1,00,000

Event

10,00,000

TOTAL

13,20,000

6.3.6 Customer Service In order to provide customers with the after sale service, we will have a 24 hour call centre with three employees for each offices (In total 9 employees for three offices) with different time shifts. There will be twelve linemen and fifteen software engineers. Each area will be covered by four linemen and five software engineers. Each software engineer will be in charge of specific unit (For example, one engineer will be in charge of the monitoring the switches and hubs, another will be on IP distribution and so forth). If any problem occurs, the software engineer will be handling the problem from the office and will send the linemen in the area of the problem if required. Two linemen will be available for the day shift and two will be available for the night shift. However, if more linemen are required, we will hire more as the business expands. 6.3.7 Monitoring and controlling In order to monitor the marketing activities, one of the co-owners will be the coordinating the marketing activities. The responsibility of him will be: •

To ensure that all the marketing programs have been implemented correctly

•

To ensure that the employee behavior is down to earth towards the customers. 28

•

To ensure that the marketing activities are resulting in creating brand awareness among the consumers and creating a word of mouth.

•

If any problem occurs, he will take necessary steps immediately or consult with other coowners of the company.

7. Organizational plan:

We need to consider the alternatives regarding the legal form

of the

organization where important implications are on liability, Continuity, financing the new venture, Transfer of Interest etc.

7.1 Legal forms of Ownership:

We are going to start new venture on ISP as PARTNERSHIP which is based on the ACT 1932. Basically we are going to start generally partnership organization. On the base of 1932 act all partner’s can get equal profit on their investment.

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7.2 About Organization: we are working six members in a group, but we will have five partners in our business. The name of our partners: 1) SANWAL MOFIZ 2) NAHIDUL ISLAM 3) SHAMSUL ARIFEEN 4) KAZI ISHTIAK BIN YUSUF 5) MOHAMMAD TAYUB ULLAH KHAN 6) FAISAL HOSSAIN

7.3 Liability of owner’s: As our all partner’s investing same amount so their liability would be equal as to other partners in our organization. Here all are liable for business liabilities. They all are liable equally for all profits and losses what our organization can get. 7.4 Cost of starting business: Our cost would be for starting ISP is minimum 50 to 60 lakh. Which will be enough to start a ISP venture as Partnership. The cost would be for organization plan are include for: 7.5 Transferability of interest: Based on our agreement, we can transfer our interest only with consent of all other general partners. 7.6 Capital requirements: We need approximately 6000000 tk to start a venture for ISP. So we are deciding to investing amount would be 60 lakh .Our capital sources are:

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7.7 Management control: All partners have equal control and majority rules as based on our legal forms of organization. We all are investing same amount so we have equal rights and power in our organization.

7.8 Distribute of profit and loses: We all are equal percent partners so we have rights to get equal amount of profit. If for any cause our company could fail to get profit, we may have to accept the losses. 7.9 Management Philosophy: The company's management philosophy is based on responsibility and mutual respect. Web Revolution has an environment and structure that encourages productivity and respect for customers and fellow employees. The company's goal is to create an environment where: •

Creativity can flourish.

•

Generating new ideas and products is well rewarded.

•

Management structure is relatively flat and communication is encouraged.

•

Mutual respect and sharing of knowledge is encouraged

7.10 Organizational structure Here is the brief information about the whole operational strategy that means our employees designation, number and their salary and wage: 31

Designation of Employee

Numbers

Salary

Cost per criteria

Executive Office

4

15000

60000

Officer

8

10000

80000

Assistant officer

12

5000

60000

Workers

4

2500

10000

Consultant

1

10000

10000

Total

220000

Personnel Plan Designation

of

2007

2008

2009

Executive Office

15000

18000

20000

Officer

10000

12000

15000

Assistant officer

5000

7000

10000

Workers

2500

3500

5000

Consultant

10000

10000

12000

Total Payroll

42500

50500

62000

Employee

In our company there will be one fixed consultant who will work two days a week. So we will not need any outside consultant or advisor. 7.11 Departments Our main management divisions are Information and Technology, Marketing and selling, Finance and accounts, and Customer service System support Department. 32

•

Information and Technology

•

Marketing and selling

•

Finance and accounts

•

Customer service System support

8.0 Assessment of risk: The company recognizes that it is subject to both market and industry risks. The company's view of its risks, as well as how each is being addressed, is as follows: •

Regulations. Possible problems caused by a sudden increase in regulation by local, State, or Federal authorities. One way the company can reduce this risk is to diversify into several different, but related, business areas. If one area becomes too heavily regulated it may be sold and the profit rolled back into the company to bolster the remaining business or start a new venture.

•

Monopolistic pricing. Aggressive or monopolistic pricing by large or heavily-funded providers. By holding prices down, it becomes difficult for competitors to "low-ball" the company. By diversifying, we can protect business in one area by bundling it with offerings from another area, meeting the needs of the customers and strengthening their ties to the company.

•

Legal matters. Lawsuits stemming from user abuse or accessibility of pornographic or questionable materials. The courts have historically classified ISP's as "carriers" unless the ISP made an incomplete effort to actively filter material posted by or made available to its users. The company's usage policy clearly states that illegal behavior will result in termination of service, but we do not otherwise attempt to control the access of its users or their content, thus maintaining the company's stance as a "carrier" in the eyes of the law. If the legal environment should change, the company will modify its policies and procedures to conform to the prevailing legal environment. 33

•

Technology. Sudden and unexpected shifts in technology or the popularity of the Internet. The company will maintain an active research and development effort, as well as ongoing review of forthcoming technologies from competitors and vendors, in order to stay near the top of the technological curve. Also, the diversification of the company's business allows it to respond to shifts in revenue by redistributing material and personnel into those efforts most likely to generate the highest return on investment.

9.0 Financial Plan The following contains the Projected Pro-forma Income Statements and Balance Sheet. The underlying basis for the projections is: •

Estimated Revenues: Xpress’s sales are predicted to grow at a rate of 12 percent per year over the first three years before leaving off in year 4. For example, revenue for year 2010 is 2296000 which is 2050000*(1.12)

•

Estimated Gross profit: Gross profits are 60 percent of the firm’s sales. For example, the gross profits for year 2010 are 1378000 which is 2296000*(.60).

•

The initial invested capital in the balance sheet is 32 lakh 50 thousand BDT (32,50,000 BDT). Each year we will invest 5 lakh more. The rest (60,00,000-32,50,000 = 27,00,000 BDT) will be in invested in a bank thus there will be an interest income. The profit according to this projection will start from the year 2011.

9.1 Pro Forma Income Statement (all numbers in $000) REVENUE Gross sales

2009 $2,050 820 $1,230

Cost of Services Net Sales

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2010 $2,296 918 $1,378

2011 $2,572 1,029 $1,543

2012 $2,880 1,152 $1,728

OPERATING EXPENSES Selling Salaries and wages Commissions Advertising Depreciation Other Total Selling Expenses

$150 50 1,320 14 5 $1,539

$41 14 1,350 15 6 $1,426

$46 16 1,400 16 6 $1,484

$52 18 1,420 16 7 $1,513

$50 10 30 8 2 1 3 1

$14 5 3 8 2 1 3 3

$16 5 3 9 2 1 3 1

$18 6 4 9 3 1 4 2

0 0 3 $108

0 1 4 $44

1 1 4 $46

1 2 5 $55

$1,647

$1,470

$1,530

$1,568

3 ($420) 22 ($442)

4 ($96) 32 ($128)

4 $9 26 ($17)

5 $155 28 $127

$0 0

$0 0

$43 12

$0 0

($442)

($128)

$14

$127

General/Administrative Salaries and wages Employee benefits Payroll taxes Rent Utilities Office supplies Travel & entertainment Postage Equipment maintenance & rental Interest Furniture & equipment Total General/Administrative Expenses Total Operating Expenses Depreciation & amortization Net Income Before Taxes Taxes on income Net Income After Taxes Extraordinary gain or loss Income tax on extraordinary gain NET INCOME (LOSS)

9.2 Pro Forma Balance Sheet (all numbers in $000) ASSETS Current Assets Cash

2009

2010

2011

2012

BDT 100.00

BDT 112.00

BDT 125.44

BDT 140.49

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Temporary investment Prepaid expenses Total Current Assets

BDT 150.00 BDT 200.00

BDT 188.00 BDT 300.00

BDT 300.00 BDT 513.00

BDT 380.00 BDT 700.00 BDT 1,220.49

BDT 450.00

BDT 600.00

BDT 938.44

BDT 1,300.00 BDT 1,400.00 BDT 100.00 BDT 2,800.00 BDT 3,250.00

BDT 1,450.00 BDT 1,550.00 BDT 120.00 BDT 3,120.00 BDT 3,720.00

BDT 1,560.00 BDT 1,600.00 BDT 122.00 BDT 3,282.00 BDT 4,220.44

BDT 1,620.00 BDT 1,750.00 BDT 130.00 BDT 3,500.00 BDT 4,720.49

Fixed Assets Office Plant & equipment (net) Furniture & fixtures (net) Total Net Fixed Assets TOTAL ASSETS Invested Capital Each Year LIABILITIES

BDT 500.00

Current Liabilities Accounts payable Short-term notes Current portion of long-term notes Accruals & other payables Total Current Liabilities

BDT 0.00 BDT 0.00 BDT 0.00 BDT 0.00

BDT 0.00 BDT 0.00 BDT 0.00 BDT 0.00

BDT 0.00 BDT 0.00 BDT 0.00 BDT 0.00

BDT 0.00 BDT 0.00 BDT 0.00 BDT 0.00

Long-term Liabilities Mortgage Other long-term liabilities Total Long-term Liabilities

BDT 0.00 BDT 0.00

BDT 0.00 BDT 0.00

BDT 0.00 BDT 0.00

BDT 0.00 BDT 0.00

BDT 3,250.00 BDT 3,250.00 BDT 3,250.00

BDT 3,720.00 BDT 3,720.00 BDT 3,720.00

BDT 4,220.44 BDT 4,220.44 BDT 4,220.44

BDT 4,720.49 BDT 4,720.49 BDT 4,720.49

OWNER'S EQUITY Equity Total Shareholders' Equity TOTAL LIABILITIES & EQUITY

10.0 SWOT analysis:

10.1 SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

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The SWOT analysis is a key factor in the overall success of an organizations’ strategic plan. It identifies the strengths and weakness of the business entity as well as the opportunities and threats. The SWOT analysis is a key factor in the overall success of an organizations’ strategic plan. It identifies the strengths and weakness of the business entity as well as the opportunities and threats. The strengths of a business can be defined as those actions, activities or characteristics that elevate the business entity above its competition. Strengths include but are not limited to: 10.2 Strengths Convenience, Customer Service, Effectiveness, Location, Pricing, Quality, Reliability, Reputation, Respect, Responsiveness, Speed, Thoroughness, Variety Many of these strengths are generally considered intangible in that they are only measurable through the opinion of the customer. Some of these strengths appear obvious, but often as business entities mature, they can lose sight of some of the fundamental strengths that aided them in their success. Entities that recognize, enhance and appreciate their strengths generally experience long-term success. Entities that ignore what some consider their core basis for success and venture forward without regard to past success lose focus and quickly fail. Whether the business entity is profit based or not for profit, such as a Faith Based Organization, these fundamental principles are applicable; i.e. a church whose strength in attracting congregants is the fellowship and the local community oriented activities changes their focus toward primarily missionary functions and outreach activities that involve only a small portion of the population. The result is that the congregants may feel ignored or worse taken for granted, as the fellowship that attracted them is ignored or left unattended. Another example; a pizzeria known for the tastiness of their dishes because the dough was made fresh daily attracts and maintains a steady volume of customers although their prices are higher than those of the typical chain restaurants that serve pizza. When they change to ready-made dough the strength of their attraction will be impacted and the quality of the pizza, now comparable to the large pizza chain businesses, no longer warrant the cost to the customer, and the business decreases.

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While these examples are not absolutes, they are accurate. The similarity in both instances is that the strength of the business entity was either ignored or overshadowed by other forces. In many instances, business entities seeking to change the direction of the organization can successfully do so over time. Virtually any goal can be achieved when a strategic plan is meticulously outlined and followed, and typically any effort not thoroughly considered will fail.

For each strength business entities have, a similar and sometimes equal weakness exists. The goal is to identify, minimize or neutralize the weaknesses while maintaining the strengths. A short list of strengths versus weaknesses is shown below 10.3 Weaknesses Time/cost Employee training Limited expansion Competition Note that the factor considered strength, is reflected as a weakness due to time or cost. In many service oriented industries, the primary consideration that causes consumers to return or not return to a business revolve around how they perceive they were treated, and how much time was dedicated to them or to their situation. If one considers the restaurant business, many people will generously tip servers who are more attentive, bring extra napkins when needed, correct orders quickly without argument and present an atmosphere of competence. A business that relies on personal service largely links its reputation to the persons interacting with the customer. While a positive service experience will be shared with few people, a negative service experience will be shared with many. The cost to the business in terms of time and training of its employees often is directly reflected as a strength or weakness for the business.

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Opportunities can be realized when weaknesses are identified. Some weaknesses in a business are generic to the industry and as such provide an opportunity for growth or for a business to elevate itself to a higher level of excellence by minimizing, neutralizing or eliminating the weakness. For example, a pizza business that prepares pizzas when ordered seeking to compete with similar businesses may recognize as an industry weakness the number of checks returned for insufficient funds as the time delay experienced by customers while the cashier validates the check information. One cost effective method of neutralizing this industry weakness is to accept credit card, debit card and other similar transfers in lieu of personal checks. Another method may be to achieve or increase the business’ presence on the Internet by accepting orders and payment via the Internet. Payment for the product (pizza) is secured prior to the product being provided, thus minimizing liability for the business, while simultaneously attracting business through a previously under used market. This practice is currently employed in several service-oriented businesses. Some correlations between Strengths, Weaknesses and Opportunities include:

10.4 Opportunities Evaluate operations Combine hands on with virtual training Satellite locations, delivery, and relocation Opportunities also relate to furthering the success of an organization through a meticulously outlined and implemented strategic plan. For example a restaurant business seeking to increase revenue without relocating, may consider as part of their strategic plan, delivery, catering or hosting special events such as gaming tournaments during non-peak business timeframes; midweek, optional holidays, etc. A business might consider merging their strengths with the strengths of other complementary businesses, such as contracting with a reputable local Internet Service Provider (ISP) and increasing its global presence by through offering special coupons for on-line customers, while prominently displaying the ISP in its table and print advertising.

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Threats are generally considered those internal and external factors that are most likely to negatively affect a business entity. Examples include the threat of a dynamic change in population due to a shift in a major industry; a significant increase in material costs due to global increase in demand or production cost increases. Threats also come from the activities of the competition including pricing, quality/quantity, and technology and market availability. One manner of addressing threats is to contrast the threat against strength, for example, the threat of a new competitor entering the field brings the possibility of new inventory or increased variety. The strength of the business that is following a strategic plan likely includes partnering with complementary business entities that market the business’ variety, availability and reputation. These strengths aid in offsetting new competition, which must first be considered established in the industry, before they can expect to grab a share of the market. This is true with the established chain business entities, as well as the independents.

Essentially, when a SWOT analysis is completed, part of the strategic plan suggests that Strengths be contrasted with Weaknesses, Weaknesses be contrasted with Opportunities, Opportunities be contrasted with Threats and Threats be contrasted with Strengths. While the strategic plan should be developed to capitalize on the Strengths with Opportunities, the business entity must maintain visibility on its Weaknesses and Threats.

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