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Problem Areas:Sim Business: Declining Voice Minutes
Problem Areas:Sim Business: Declining Voice Minutes
Indian Telco's have launched world SIMs & discounted roaming packages for international
travelers
Increased World SIM service costs a fraction of international roaming and customers can save upto 85%
competition on international calls
Matrix will also have the option to display sponsored content on the
mobile device and earn advertisement revenues
DEVICE RENTAL BUSINESS 7 YEAR PROJECTIONS OF FINANCIAL
INVESTMENT AND RETURNS
Operating Profits
Assumptions:
No of FTAs/year (Source Ministry of Tourism Govt. of India) 3115614 Yr-0 Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7
No of Devices(Assumption 1 Device/2 FTAs) 1557807
Matrix will capture 10% of this market in the 1st year and would
increase its market share @ 5% Y-OY Revenue(INR Lakh) 117 123 129 135 142 149 157
Cost/mobile device(Average price Indian manufactured 4G device) Rs 5000
On analyzing the FTA arrival pattern we notice that maximum number
of tourists arrive in December(Approx. 1 million)
COGS(INR LAKH) -61 -3 -3 -3 -64 -4 -4 -4
Average stay of tourists 15 days
For the initial traffic of FTAs max device needed (based on the Peak
traffic in December and Govt. of India data that shows Average number SG&A(INR LAKH) -5 -12 -12 -13 -14 -14 -15 -16
of days spent by an FTA is 15 days) 12510
Revenue calculation in based on the market share of Matrix( In year one ,Matrix is assumed to have
captured 10% volume of the incoming FTA traffic)
Market share is expected to grow at 5% y-o-y Operating Profit(INR LAKH) -66 102 107 112 58 124 130 137
The shelf life of the mobile device is assumed as 3 years and 5% new devices will be added y-o-y given the
increase in market share
SG&A is assumed at 10% of the revenues
5
4 Based on the
feedback of users,
either freeze the
3 Test marketing: gather mobile
feedback on mobile manufactures/network
2 device/network/OS provider and OS else
Selection of software user experience repeat relevant steps
1 firm to design custom
Operating system
Selection of telecom
provider
Selection of mobile
device manufacturer