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TRACK-O-MAT. Christian Bjornli Dennis Ly Rohit Navale Carla Marcorio. 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
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TRACK-O-MAT Christian Bjornli Dennis Ly Rohit Navale Carla Marcorio
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 %