EC Web development Project DC.COM

1. EC Web development ProjectDC.COM Group 1 Patricia,David, Wing, Faye, Tsky Design by DC.COM

2. OUTLINE • Evaluate Business plan of DC.COM • Business model • Business operation • Revenue model • System / website • Feasibility analysis

3. BUSINESS MODEL

4. Business Model • Major Service • online hotel booking / monitor pets’ life and healthy • advertisement • keywords search • Others • pets’ funeral service • pets’ matching service Design by DC.COM

5. BUSINESS OPERATION

6. Business Operation • Organization chart Design by DC.COM

7. Business Operation • Department operations • manager (one people)Duty : making decisions, planning strategies and managing staff’s performance. • Sales department (Three people of consulting) Duty : promoting our services to customer. • Call center (One people of customer service) Duty：answering the phone from customer and reception. Design by DC.COM

8. Business Operation Con. • Department operations Con. • MIS department(Two people of computer engineer) Duty：maintain and operation of website and server • Finance department (One people of Chief Finance Officer) Duty：managing and analysis finance Design by DC.COM

9. REVENUE MODELCOST Var. Cost Fixed Cost Design by DC.COM

10. Cost-var. cost • Var. cost/per month(total$290,100 / per month) • Employees’ salary i. One manager • Salary：$50,000/per mouth iii. Three people of consulting • Salary：$30,000 * 3 people = 90,000 dollars/per mouth iii. One people of customer service • Salary：$20,000/per mouth iv. Two people of computer engineer • Salary：$30,000 * 2 people = 60,000 dollars/per mouth v. One people of Chief Finance Officer • Salary：$28,000 /per mouth Design by DC.COM

11. Cost-var. cost Con. • Var. cost/per Con. • Internet fee：about $1000/per month • water and electricity fee：about $ 6,000/per month • rental fee：about $20,000/per month • IP domain name ：$100/ per month • outsourcing of set up the web monitor in the pet store：$1,500/per deal*10(pet stores/per month)=$15,000/per month Design by DC.COM

12. Cost-fixed cost • Flex. cost/per month(total$8,334 / per month) • Buying a set of full function software：$300,000 (assume it can be used for 5years) • The cost monthly：$5000 • Hardware equipment：$150,000 (assume it can be used for 5years) • The cost monthly：$2500 • office facilities：$100,000 (assume it can be used for 10years) • The cost monthly：$834 Design by DC.COM

13. REVENUE MODELCOST Var. Cost Fixed Cost 2007/10/8 Design by DC.COM

14. REVENUE MODEL REVENUE Major Service Others service 2007/10/8 Design by DC.COM

15. Revenue-major service DC.COM pre-working flow / steps Design by DC.COM

16. Revenue-major service • Online hotel booking-Standard of charge • normal(without monitor service) • 1 day = $500(average charge), average stay for 3 days $500*3*35(turnovers/1day)*5 %( commission rate) =$2,625 • special(with monitor service) • 1 day = $800(average charge), average stay for 3 days $800*3*15(turnovers/1day)*5 %( commission rate) =$1,800 • Total revenue ($2625+$1800)*30(days) =$132,700/ per month • (Note) web monitor service • $2,000*20(average deals) =$40,000 /per month Design by DC.COM

17. Revenue-major service con. • Advertisement • Banner： Depend on its spec. The banner fee averages 2,000 per deal / month. • Total revenue： $2,000 * 10 (deals/month) = $20,000 / per month Design by DC.COM

18. Revenue-major service Con. • Keyword Search：Cost Per Click • Three firms, A, B, C, all use “pet’s food” for keyword, bidding highest price to be shown on the top. • Each keyword’s bid must be at least 3 dollars. • A bids for 10 dollars, B bids for 5 dollars, and C bids for 3 dollars • though A bids for 10 dollar, he only need to pay the price added 0.5 dollar then B’s bid. So A should pay 5.5 /click, B should pay 3.5 /click, and C should pay 3/ click. • A：$5.5 * 100 (click/ day) = $550 /day • B：$3.5 * 100 (click/ day) = $350 /day • C：$3 * 100 (click/ day) = $300 /day • Total revenue：($550 + $350 + $300)*10 (deals/month) = $12,000 / per month Design by DC.COM

19. REVENUE MODEL REVENUE Major Service Others service 2007/10/8 Design by DC.COM

20. Pets’ funeral service • i. Funeral ceremony • ii. On-line worship ceremony

21. Funeral ceremony • Funeral working flow

22. Funeral ceremony Con. • Commission=5% per deal

23. Funeral ceremony Con.

24. Funeral ceremony Con.

25. Funeral ceremony Con.

26. On-line worship ceremony • offer on-line worship ceremony • without the limitation of time and space • each customer has his/her own account to pre-paid the money • 30/30min • each time, the customer have 30mins to hold the ceremony, and it charges $30 , average stay for 30 mins • Total revenue： • $30/30mins * 10 (deals/day) * 30 days= $9,000 / month

27. Pets’ matching service • Caring centers post their information • what kind of dogs or cats they provided, where they are, and how much per time • customer can search what they want through the database • matching fee averages 3000 per deal • charged 5% commission • Total revenue： $3000 * 5% * 30 (deals / day) * 30 days= $135,000 / per month

28. FEASIBILITY ANALYSIS

29. Feasibility Analysis (profit/loss) Therefore, $359,150-$298,434= $60,716 (profit = revenue-cost)

30. COST without ANY INCOME Total cost * 12 month = $299,334 * 12 = $ 3,581,208

31. Thanks for listening