Business plan - CoViTek Essay Example for Free

Business plan – CoViTek Essay CoViTek is an Atlanta based company that offers a unique value added service to the $11 billion dollars video rental industry. CoViTek will revolutionize the industry by renting movies through its video vending machines. These machines are already experiencing tremendous success in Europe, where they were invented. Customers will now be able to rent videos twenty-four hours a day, seven days a week in a timely and efficient manner at the lowest price. Our machines can be implemented anywhere, even in locations that are not accessible to our brick and mortar competitors, and we will therefore focus our efforts on all the strategic locations. Reve-lution Int. will offer a unique business-to-consumer service for the rental of videos and DVDs. The technology, containing a fully automated system, will facilitate continuous rental and return of movies bridging the gap between video stores, who only are open 15 hours a day, and services such as the nonexistent Kozmo. com, who offer video delivery for a premium price. The company has a cost-per-action (CPA) pricing structure. CoViTek’s target customers will include universities with a student body of at least 10,000 in addition to the rest of the city of Atlanta for the first six months of operation. CoViTek will provide their clientele with a complete set of integrated tools within the machine to make accurate and enjoyable purchasing decisions. CoViTek will give video rental customers the freedom of rental 24 hours a day, seven days a week, all year long. CoViTek will build the world’s truly first convenient and efficient rental system†¦ Target Customers Movie rentals have proven to be an integral part of the everyday lives of the American population. With more than $11 billion dollars in rental sales in 1999, we acknowledge the aggregate demand for the video rental industry. Constantly seeking immediate gratification, video rental stores want the most efficient and cost-effective methods of satisfying their customers. CoViTek will make rentals simple by providing consumers the most efficient tools for with which to initialize a rental process. With the killer application technology used in these machines, the customer will be able to conduct multiple searches in order to rent the movie of their desire. CoViTek will further assist them through the provisions of an active preference search, which is currently being used by Amazon. com. This application will determine what the customer rented last and list the preferred movies of that category the customer will like based on past rental behavior. CoViTek’s potential customers will represent the bulk of video rental households who value rental outlet convenience and flexible payment plans. CoViTek will strive for the most efficient, cost-flexible payments and active searches for preservation of quality time. Market Growth Perspective According to analyst Paul Keagan & Associates, at home movie consumption expenditures will increase approximately 40% by 2005 to $27 billion, almost triple the amount spent in 1990. The vast majority of these expenditures, about 83%, will be for video/DVD rentals and retail. However, movie consumption will also encompass pay-per-view and video on demand (VOD) available through cable and satellite services. Video Production Companies Ninety percent of our videotapes will come from one of the six major production companies: 1. Buena Vista 2. Warner Bros. 3. Universal 4. Fox 5. Paramount, or 6. Columbia-Tri-Star The power of these suppliers is very high, as they hold the exclusive rights to the movies they produce. One of our late competitors, Kozmo. com, has built a unique strategic partnership with these production companies. They have developed a profit sharing system with the major production companies requiring no initial investment in the videos, but agreeing to give 40% of the revenue generated by the rentals to the producer of the movie. We believe that this profit sharing system is financially unattractive, although it will allow us to reduce our initial investment costs; it minimizes our profits which in turn will delay our expansion strategy. We will use an initial video vendor, Video Bicicling, based out of Texas to supply us with our videos and DVDs. They will provide us with the most up-do-date movies for competitive prices. Competitor Differentiation CoViTek differentiates itself from its competitors in several key areas. While companies such as Blockbuster and Hollywood Entertainment offer the same features, only CoViTek will incorporate all of the features described below in a way that gives consumers the ultimate ease of use, active preference search, and extremely convenient locations of operations. Time Availability CoViTek’s competitive advantage is based on its time availability for rentals. The machines will be open and available for usage 24 hours a day, seven days a week, all year round. CoViTek will keep customer service readily available even throughout holidays. Strategic Locations CoViTek will implement the vending machines in key strategic locations after performing a detailed demo-geographical analysis of the city of Atlanta. Locations will initially be university campuses and later the urban areas of the city. Each machine will be located in areas where there is heavy human traffic. Payment Flexibility Our pricing will be flexible depending on the amount of time the video is out. Since CoViTek is a system that is open 24 hours a day there are no late fees associated in our model. Our standard rental time for DVDs is â€Å"midnight of the following day† for a price between $2. 50-$3. 00. Each additional day will be between $1. 50-$2. 00. Video Cassettes will be $3. 99 and if returned within 24 hours $1will be credited back. Each additional day will be $1. 99. (Based on new releases) Active Search CoViTek will use an innovative application technology which actively searches for videos categorized by title, actor, new releases, type of movie (action, thriller, comedy), and most frequently rented movies. Relative Competitive Factor Blockbuster Video Hollywood Video Kozmo. com CoViTek Relative Product Quality and Differentiation i i i i Flexible Payment Plan i E-commerce Based i i Brand Recognition % 100% 63% 40% N/A Locations around campuses i i i i Locations on Campuses i i Large video selection.i i Number of employees less than 5/ location i One of the most compelling aspects of the CoViTek model is its portability into untapped realms of video rental opportunities. This will provide the company with a critical advantage-the flexibility to transform itself in response to competitive challenges or to shifts in the video rental market environment. CoViTek’s flexibility will give downside protection to its owners by insuring that new, innovative means of generating cash flow can be realized. Future elements of CoViTek may include: National Expansion. Video rental opportunities in selected national markets such as: Washington D. C. , Los Angeles, Miami and Huston. Washington D. C: our second location has similar features to our first city of operation. It has a few large universities, widely used public transportation, and high pedestrian traffic. The schools we target will be American University, George Washington University, and Georgetown University. Our downtown locations will depend on areas where there is an intersection of the public transportation lines and high pedestrian traffic. Data Distribution. Future plans may include the sale of CoViTek’s proprietary online consumer data to the major video production companies. Specialized Machine Content Another growth opportunity for CoViTek in the future is the implementation of machines with customized video selection. The content of these machines will be select videos and DVDs targeted toward an audience based on specific themes. These machines will be placed in strategic locations based around their themes. Some possible â€Å"themed† machines may include: classic movie machines, foreign movie machines with Spanish subtitles or dubbing, and award-winning movie machines. The placement of these machines will require careful market analysis and planning, and therefore we plan to wait before implementation to gather enough data about the market and the purchasing patterns of our customers. Investment Needs Michel Khoury founder of CoViTek, has accumulated cash in excess of $10,000 for the development and the start-up cost of the company. CoViTek is now prepared to obtain financing through establishing a line of credit and implementing an equipment loan for its initial machine. It will later apply for loans as needed in order to buy more machines as it expands its operation. Using the machines and earnings as collateral CoViTek should have sufficient funds to obtain a line of credit that will secure its implementation of strategy. The initial stage of funding will be used to complete Web-site development, obtain one machines, invest in computer hardware and software, lease location space needed for the machines and market CoViTek during the first 12 months of operations. After 12 to 18 months of operation, CoViTek will require an infusion of an additional $15,000 to expand its brand image and increase its service offerings at an accelerated pace. Successful development and operation of CoViTek will allow it to be self-sufficient within approximately 9 to 12 months of initial operation. CoViTek will be a for-profit company incorporated in the state of Georgia. CoViTek – Start up costs Machines $20,246. 64 Inventory: video tapes $9,210 Cash/ month $2,808 Advertising $8,000 Legal & Accounting $7,000 Insurance $3,000 TOTAL $50,264. 64 Management team Michel Khoury Chief Executive Officer Founder While founding CoViTek, Michel Khoury is Assistant Managing Director at Bear, Stearns & Co. Inc. He is working hand in hand with the Managing Director of the company in order to implement a system of bringing foreign investment to the company. He has had significance experience with young ventures as he has participated in the creation of several companies nationally and internationally. Michel Khoury is also consultant to the CEO of Santege Capital Asset Management Group in New York City. Michel Khoury graduated in May of 2001 from Emory University with a Bachelor of Business administration with concentrations in Finance, Consulting, Venture Management and Marketing. Business plan – CoViTek. (2017, Aug 04).

Marketing Assignment Example | Topics and Well Written Essays - 1500 words

Marketing - Assignment Example The SWOT analysis represent the analysis of factors of strength, weakness, opportunities and threats that are existing in the marketplace with regards to the characteristics of the organization. It is highly relevant to say that the strength and weakness can be categorized as internal factors of evaluation for an organization. On the other hand, the issues of opportunities and threats are categorized as external factors and are always analyzed with regards to the happenings and influence coming from the external environment (Pride and Ferell 33). In very layman terms, marketing can be explained as an activity which comprises of the process of value generation, value communication, value distribution and value delivery to the consumers. Marketing is often represented as the activity which comprises of smooth application and integration of the 4Ps of marketing like product, place, promotion and prices (Pride and Ferell 4). Matching the 4Ps of marketing with the equation of value, it can be said that product represent value generation, place represents value distribution, promotion represents value communication and price represents value delivery and capture. It is very important for a business to implement the various variables of marketing in the right time but in a new and innovative manner so as to leverage the maximum amount of competitive advantage that can be extracted for the business. ... crucial activity in any business, since it plays the lead role in communicating the values of the company or organization’s products or services to the desired set of clients and customers. For the purpose of sustaining in the market, it is very important for a company to focus on its revenue earning strategy and thereby develop a significant competitive edge. It can be said in direct link up that for the purpose of generating a steady cash flow process, it is imperative that the organization’s products and services attain high sales volume in the market place. It can be said that for the purpose of selling a product or service, having a proper and effective STP strategy is highly important. STP which denotes segmentation, targeting and positioning helps the organizations in a market place to focus on the process of aiming the right set of customers. Talking in a more simplistic manner, it can be said that the segmentation of a particular set of population helps the com panies to identify the right group of customers who have the needs to buy the particular line of products and services. The method of targeting represents the process of aiming the right set of identified customers by the firms to attain a significant growth in sales of the firm’s products and services. The picture provided below represent various kinds of segmentation strategy employed by the firms. Source: Pride and Ferrell 160 It is highly imperative to mention that in this stage, the strategic decision makers of the company tries to identify the potential buyers for the firm’s products and services, while analyzing their individual consumer behaviour as well as demographic profile and purchasing power capacity. Finally, while discussing on the factor of positioning, it can be highlighted that

Former incarcerated persons attitudes and perceptions of successful Dissertation

Former incarcerated persons attitudes and perceptions of successful reentry - Dissertation Example There has been a fourfold increase in incarceration, and parole release rates have reduced radically. At the same time, there has been a significant increase in parole supervision. This has been accompanied by a drastic increase in parole revocation, with the result that hundreds of thousands of people are forced back into prison. The policy makers have not accorded much importance to reducing recidivism and enhancing integration of the released convicts into the community (Travis, 2008). Latessa, another eminent professor in criminology claims that there is conclusive evidence, which clearly shows that treatment programs enjoy different levels of effectiveness. In fact, there should be a segregation of offenders into the low and high risk categories. Offenders belonging to the high risk category should be subjected to more intense supervision and treatment, as they tend to benefit from such measures. Services should primarily focus on the factors in offenders that lead to criminal b ehavior. It is now clear that programs that are properly designed and implemented have the capacity to reduce recidivism to a major extent. On the other hand, improperly designed and poorly implement programs can actually enhance recidivism (Latessa, 2008). ?American society has to envisage the onerous task of reintegrating into society, a large number of released prisoners. This number is quite significant, and was of the order of 635,000 per annum. The prison population, in the year 2002, was around 1.4 million, and 93% of these individuals would ultimately be released into society (Day, 2005, p. 346). Another disquieting feature of this state of affairs is that the average prison term does not exceed 2.5 years. In fact, some 44% of the prisoners would be released within a year of being incarcerated. Public safety is crucially affected, by prisoner reentry, which can be understood as the different activities that enable released prisoners to join the mainstream of society as respo nsible and law abiding members (Petersilia, 2009, p. 3). The majority of the ex – convicts suffer from social and medical problems. These individuals, in the main, tend to be uneducated, unskilled and devoid of adequate family support. In addition, they have to bear the cross of having been imprisoned, which invariably generates distrust and fear. Another, disquieting feature relates to the prevalence of substance abuse, in nearly 75% of the prisoners, and the affliction of a sixth of prisoners with mental illness. Less than a third of such prisoners are provided with treatment in prison (Holzer, Raphael, & Stoll, 2003). As revealed in a study a by Petersilia, an eminent scholar of criminal justice, the proportion of prisoners with infectious diseases is five times that of the proportion of the US population. The extent of this malaise can be gauged from the fact that around 25% of those infected with HIV or AIDS in the US transit through prison or jail. It has been stressed by experts in the area of public health that HIV will continue to increase in prisons and will eventually increase prevalence rates in the general community (Petersilia, 2009, p. 4). This will be the outcome of imprisoning and releasing a greater number of drug offenders. Furthermore, the number of prison inmates with marketable employment skills or adequate literacy to