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Feasibilityreport Group2
Feasibilityreport Group2
PLAGIARISM STATEMENT
I the undersigned confirm that the work submitted here is entirely my own work, and that
any work of others which is included has been properly referenced and acknowledged
according to normal academic guidelines.
CONTENTS
2.
3.
4.
5.
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6.
7.
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8.
9.
10.
11.
BIBLIOGRAPHY..................................................................................................... 41
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Jinzhi Sun
Marvel Ntumba
Eoghan OLoughlin
He has a bachelors in
Economics and Finance with
French. He is the Financial and
Market Analyst for this project.
marvelntumba@ucdconnect.ie
eoghan56@gmail.com
Jinzhi holds a BS in
Information and Computer
Science with finance with
an experience in the
software industry. He is the
Business Analyst for the
project.
Jinzhi.sun@ucdconnect.ie
Devika Raina
Xiaolu Sun
devikaraina@live.com
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Xiaolu.sun@ucdconnect.ie
Keepitonthedeck.com is an online soccer coaching academy based in Ireland. They are aiming
to penetrate the Indian, Chinese, Australian and American markets with a subscription service
for their coaching videos.
To keep with the theme of keepitonthedeck, in this feasibility report there will be a theme of
passing the ball, and dodging defenders before breaking through and scoring the goal, which
is successfully penetrating the market.
In this report, we will examine if it is possible for keepitonthedeck.com to make money by
successfully penetrating the Indian and Chinese markets. To do this we have analyzed the
potential competition in the market, gathered market research on the Indian and Chinese
populations interest in this service, through surveys and other means, analyzed the risk
involved in entering both markets, as well as providing our financial estimates for this
venture. At the end of this report we have also provided our recommendations for
keepitonthedeck.
If youre attacking, you dont get as tired as when youre chasing
- Kyle Rote Jr. retired American football player
Based on our research and with the above quote in mind, we have concluded that
keepitonthedeck.com can be successful in India and China. However, to do so they will need
to act quickly to ensure their first movers advantage, to prevent their competition from
gaining a foothold in the market. This will ensure that they are the company attacking and
not chasing down their opposition. They will also need to set up a subsidiary in each country
to help overcome monetary and legal issues.
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1.1 MARKET
Keepitonthedeck.com at present, has
viewers from all over the world and are
focusing on nations where soccer is
developing as a sport. This is a part of their
business strategy.
In our feasibility study we have
concentrated on the eastern marketsspecifically, India and China and to
understand how the business can become
profitable if these markets are targeted.
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2.1RESOURCES
Keepitonthedeck.com relies highly on the
skills that are used to make the videos.
Derek is a valuable and rare resource that
the company has. This gives the company
an edge and enhances their capabilities. If
Derek is able to train more resources like
him, the company
can highly benefit
with the network.
Another resource
that the company is
moving towards is
the videos. Hence
DEREK
we can say that the
KAVANAGH
intangible
resources, like technology, is an advantage
for the company. What the company lacks
are tangible resources like financial or
physical resources. These resources
determine the organisational capabilities.
SMART
FOOTBALL
Thus
we
can
see
that
keepitonthedeck.com can apply an
internal as well external source of change
to acquire a competitive advantage. This
2.2 KEY SUCCESS FACTORS:
can also be defined as the companys
strategy. To make it clearer we can call this
What do customers want?
kind of competitive advantage as
Keepitonthedeck.com has a good
Differential
Competitive
research base. They have
Advantage. The content would
DIFFERENTIAL
targeted a specific section of
COMPETITIVE
be priced at a premium price
football
players
like
ADVANTAGE
because of their uniqueness.
goalkeepers, women players
Keepitonthedeck.com
is
and parents; they have also
preempting the efforts made by
conducted extensive research on the
competitors and also trying to create
next big thing in football- Smart Football
more capabilities within the firm which will
which they aspire to bring to the public
make it unique. This will help it maintain
domain. Customers always value the
the differential advantage.
companies that design personalized
products. By targeting a specific audience
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Factors
KEEPITONTHEDECK.C
OM
Competitor 1
Competitor 2
Competitor 3
OSA
Soccer Clinic
Inside soccer
Products
Price
Through
memberships and
subscriptions
Subscriptions to
weekly videos and
different packages
Quality
Standard material
Excellent quality as
there videos are
directly from inside
the soccer clubs
academies
Service
Importance to
customers
High
High
Reliability
N/A
Expertise
Ex- professional
soccer player
bringing in
specialist in
different, thanks
to large
connections
19 years of experience in
the coaching industry as
members include coaches
from top footballing
countries such as England,
France, Germany
High
Stability
Already
established in the
online coaching
industry, as it is
one of it leaders
with a great
reputation
Indifferent as long as a
customer finds what they
are seeking for
Social media
9+millions views,
20,000+ subscribers
22+million views,
200,000+
subscribers
Location
IRELAND
USA
Appearance
National level
Employees
High
USA
International level
and recognition
International level,
coaches from over
100 countries
Mediocre
N/A
N/A
Indifferent
Financial resources
Internal investment
Memberships,
YouTube videos
and advertising
Membership ,
payment for ICA
qualifications, some
level of external
funding
Advertisements
Online marketing,
through social media
Online
Online, soccer
academies
Online estimated
yearly Revenue
0 - 0
897 - 14.4k
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USA
N/A
N/A
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3.1. POLICY
3.3. ECONOMICS
Compared with western countries, eastern
countries have been developing rapidly
over the last few decades. They have the
consumption ability and need channel.
3.4. TECHNOLOGY
India has a huge software industry which
can provide powerful support for ecommerce businesses. China also has a
huge Internet base, and the biggest user
population in the world.
THROUGH THE LENS OF FIVE FORCES
MODEL (DEVIKA)
Keepitonthedeck.com is a potential
entrant to the Industry of online soccer
coaching. Before it enters the eastern
market, devising a strategy to respond to
the competition is essential. This will
improve the long term profitability and
also make the company less vulnerable to
attacks by competitors.
We have used Porters five competitive
forces along with the sixth additional force
to understand and analyze the industry of
online soccer coaching in the Eastern
market.
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4.6. COMPLEMENTS
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As for the soccer market, the population of Chinese soccer fans is nearly 0.6 billion. In
addition, 260,000 customers browse soccer news every day (Souhu, 2014).
BIG COUNT
China PR
USA
India
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Brazil
Germany
KEY
PERFORMANCE
INDICATORMARKET SHARE
Compared with basketball, table tennis and badminton, more people are interested in
soccer according to the Baidu index.
Chinese media also pay more attention to soccer than other ball games during the past
three years (Figure 3).
More searches are distributed in the east and south of China, which is the eastern
developed area (Figure 4).
Most searches are by people aged between 20 to 39 years old (Figure 5).
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Chinese media
also pay more
attention to
soccer than
other ball games.
Figure 4: The distribution of searching with age groups and gender ( Baidu Index, 2016)
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Most searched in
the East and South
of China, which is
the eastern
developed area
B2C mode
Push: Make profits
from public
information
o Current news
o Weather forecast
o Stock
o Lottery
o Want ad
o Traffic situation
Focus on the need of customers
No
40%
Yes
60%
Yes
No
6.52%
39.13%
13.04%
17.39%
A. I will only pay attention to soccer stars.
B. I will pay it in order to keep health.
C. I am interested in the development of
Chinese National Soccer Team.
D. I dont like playing football.
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0% 4.35%
87
90
30.43%
80
62
70
65.22%
60
50
31
40
30
10
0
28.70%
68.70%
A. It is
difficult to have
interactions.
B.
Inconvenient.
C.
Unsystematic
D. Others.
coaching
14
20
A. No, I havent.
6.96%
40.87%
33.91%
80
71
60
40
36
22
18
50.00%
20
0
0.00%
A.
Costeffective
B.
Flexible
C.
Resource
sharing
D.
Targeted
E.
Others
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2.61%
A.
Under
18.
44.35%
19.13%
B.
19-25.
C.
26-35.
33.91%
Series1
D.
Over
36.
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6.1.1. SOCIAL
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6.1.3. ECONOMIC
6.1.2 DEMOGRAPHICS
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As
there
is
no
Permanent
establishment in India through this
service, the taxation rules in India do
not apply.
Indians would prefer to have services
for free rather than purchasing them
online.
While pricing, it is interesting to note
that the Purchasing Power parity (PPP)
for India is 0.3 (World Bank, 2016).
The economy of India is improving and
so are the incomes. People are now
willing to spend on sports and fitness.
A passive NPS of 7 indicates that the
customer is not totally committed, if a
competitor comes into the market, it easy
to go for the new service. This is an
important factor to note while pricing.
6.1.4. POLITICAL, LEGAL AND
REGULATORY
6.1.5. TECHNOLOGICAL
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High quality
Low quality
80%
60%
40%
20%
0%
Yes- This service has potential
No- Better To stay away from
Promote it
at school
level
Using trending hashtags in India
and associating brand with it
Collaborate with the Sites
which already have a large fan
base.
Rohit Singh,
Football
Enthusiast
India
6.3.1. UNAWARENESS
This
is
the
current
state
of
Keepitonthedeck.com for the majority of
the target market in India. Most of the
population is also unaware of availability of
such services which can highly benefit
them. Thus creating awareness becomes
the key objective.
6.3.2. AWARENESS
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resourceful. Not
only will this help
understand the
STRATEGIC
requirements but
ALLIANCES
also
increase
customer loyalty.
Facebook polls and
surveys can serve as tools.
Analyzing this data is equally
essential.
Collaborating with stakeholders of
AIFF and ministry of sports.
6.3.4. LIKING
Having knowledge and just liking the
Facebook page is not enough. There may
be many Facebook likes on the page but
that does not give the exact count of the
customers who would be willing to pay for
the
services.
Generating
positive
responses and advertising these responses
will help make the services offered
reputable and spread a goodwill. Research
shows that the attitude towards
promotion is directly linked to people liking
the product or service (Shank, 2008).
6.3.5. PREFERENCE
6.3.3. KNOWLEDGE
Once the market is hooked onto the
Facebook page, it is important to make the
most of this opportunity. The consumers
need to realize the tangible and intangible
benefits of using this service. This is when
the knowledge is shared with the
consumer.
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Creating the desire for the product is important here. Keepitonthdeck.com needs to realize
to the customer that the benefits offered by this service can help address a need.
As a suggestion, developing the physical fitness level in India can be targeted here.
Traditionally Indians lack the high level of fitness required for football. The fact that
the number of fast bowlers in cricket in India are very few as compared to spinners
proves this.
This is a need that would be served with this service apart from all the additional
benefits it has to offer. This propaganda can motivate the prospective buyers to
understand the importance of acquiring the services offered.
6.3.7. ACTION
The final stage of the hierarchy is the consumer actually buying the product/service. This can
be established fairly easily if all the previous steps are sequentially followed. This completes
the thinking, feeling and behaving cycle.
This shows that initially a push strategy is followed but just to avoid the ignorance of
consumers, a pull strategy will be needed to follow once a market is established.
There is a 200% rise in online search as per Google trends. This is the best time to
target online services in India.
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7.1. CHINA
7.1.1. POLITICAL CHALLENGES
Unlike in Ireland and the western
countries, where there is less emphasis on
building relationships due to a culture that
supports contractual obligations, in China,
one relies on a mutually beneficial
network, without this, westerners
entering China is like entering an abyss.
Understanding this concept can be a
challenging process for a westerner and
building these networks is often a time
consuming process. This makes it
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7.2. INDIA
In India, the process of setting up
businesses, is much simpler than setting up
in China. However, to set up an
ecommerce business one must fulfil the
formalities required by the Ministry of
Corporate Affairs. Unlike in other
countries, it is mandatory to register an
ecommerce business with a legal address
and to complete the registration,
Keepitonthedeck.com must complete the
following formalities:
7.2.1. REGISTER THE DOMAIN NAME
Keepitonthedeck.com will need to make
sure that they choose a unique domain
name for their ecommerce business. Once
they are done choosing it, they should get
their new domain name registered from an
appropriate national registry at a premium
rate (Soni,2014).
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Fixed Costs
30,000.00
Advertising
Accounting, Legal
Depreciation
Interest Expense
Insurance
Manufacturing
Payroll
Rent
35,000.00
Supplies
5,000.00
Utilities
Other (specify)
Total Fixed Costs (TFC)
72,500.00
Variable Costs
Variables Costs based on
Dollar Amount per Unit
Cost of Goods Sold
2.00
per unit
Direct Labor
3.00
per unit
Overhead
per unit
Other (specify)
per unit
Sum:
5.00
per unit
Other (specify)
per unit
Sum:
0.00%
5.00
295.00
Break-Even Point
Break-Even Units (X)
Break-Even Sales (S)
98.3%
X=
TFC /
(P - V)
S=X
*P=
TFC /
CMR
246 units
73,728.81
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246 units
73,728.81
0.0%
1250%
0.0%
Break-Even Point
$200,000
$150,000
Total Revenue
$100,000
BEP
Total Cost
Profit (Loss)
$50,000
$0
100
200
300
400
$(50,000)
Total Cost
$(100,000)
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Total Revenue
Units (X)
Profit (Loss)
500
600
9.
AND OTHER
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YES!
IT IS FEASIBLE
WITH OPTIONS!
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