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Project Launch: Loon Today and for Tomorrow. MSIT413 Wireless Technology, Heng(Kevin) Shi , Class of 2015. Agenda. What & How Launch Proposal Target Market Business Model Core Competence Google Leverage Short Term/ Long Term Implementation. WHAT IS PROJECT LOON?.
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Project Launch: Loon Today and for Tomorrow MSIT413 Wireless Technology, Heng(Kevin) Shi , Class of 2015
Agenda • What & How • Launch Proposal • Target Market • Business Model • Core Competence • Google Leverage • Short Term/ Long Term Implementation
HOW LOON WORKS control
Launch Proposal Goals • Increase internet availability in untapped markets • Create infrastructure towards the goal of global internet connectivity • Develop Google Loon franchises • Streamline internet usage through Google search engines
1. Increase internet availability in untapped markets • India • Vietnam • Thailand • Indonesia • Philippines
Target Market • India
Target Market Why is this market untapped? 1) Poor pre-existing infrastructure 2) High cost to develop ground-based infrastructure 3) End-users demand low price
Target Market India’s internet eco-system –Weak infrastructure and low penetration –Population: 70 % rural out of 1.3 billion –Internet penetration (2015) Urban 64 % Rural 9 %
Target Market 2015: Projected rural population 0.9 Billion 90 % without internet 65 % under 35 years Number of rural under 35 year olds without internet 500 million
Business Model Step 1: Create local connections by developing Loon franchises
Business Model Estimated Cost
Business Model Step 2: Merge Technological Infrastructure with Local Markets
Business Model Projected Profits
Business Model Step 3: Interconnect local networks to create global connectivity
Business Model Streamline internet usage through Google search engines Use of the Google browser allows for advertisement based searches FACT: Google derives 96 % of its revenues from ads So, how do we increase Google’s profitability? ANSWER: Increase Google’s ability to sell advertisements
Core Competence Internet advertising projections in India • As iGDP rises ad revenue rises -2011 iGDP: 1.6 % -2015 iGDP: 3.5 % • On-line retail expected to grow tenfold • Growing number of businesses are creating websites
Streamline internet usage through Google search engines • Loon Franchise = Google controlled network usage and browsing facilitation • Google based internet use = ability to sell AdWords and AdSense • The increase of Loon based infrastructure in untapped markets = the increase in advertising sales • Increased Advertising capabilities = higher profit margin
Future Improvements Product Development While Loon is ready to be launched, its continued product development is essential for its success given the competitive climate of the tech world.
Future Improvements Product Development GOAL: Increase speed and productivity of service and decrease manufacturing and maintenance costs
Future Improvements Research and Development • Increase connection speed • Increase coverage area • Increase efficiency in production • Research alternative substitute to helium (which is a non-renewable resource)
Short Term/ Long TermImplementation and Summary - Short Term Target: harness new markets by developing franchises in rural areas -Long Term • Improve technology for speed • Develop mobile data capability • Reproduce India model in other developing markets
Thank you ! Kevin, hengshi2015@u.northwestern.edu