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E Business Assignment 1
E Business Assignment 1
Mail: amey.patale@gmail.com
Business Plan | Director, Amey
Table of Contents
Executive Summary....................................................................................................................................... 2
Vision, Mission, Values & Goals .................................................................................................................... 2
Business Description ..................................................................................................................................... 2
Product Description ...................................................................................................................................... 3
Market Place analysis.................................................................................................................................... 3
Operation Plan .............................................................................................................................................. 4
Marketing Plan .............................................................................................................................................. 5
Financial Plan ................................................................................................................................................ 5
Management Plan ....................................................................................................................................... 10
Risk Analysis ................................................................................................................................................ 10
Business Exit options................................................................................................................................... 11
Executive Summary
Today’s generation is inclined towards sharing things instead of owning things. This coupled with Space
crunch in Metros calls for an innovation in the concept of travel bags. This is where renting of bag provides
an alternative. This concept is very much suitable for one time travelers, places with space crunch and
millennials. The market for this business is still very nascent and there is huge scope for growth as the
competitors are largely inactive. Our team comprises of cross- functional resources and we aim to achieve
the highest market share in 1 Year. Given our sound practices w.r.t. debt, there are no constraints on the
availing loans for capacity expansion.
Business Description
BAGWORKS group marked its presence this year. The first service on offer is Rent-A-Bag. This is a private
family-owned venture. Key personnel include Mr. XYZ, who completed his MBA in Operations from NITIE,
Mumbai and has 20 years of experience in supply chain with a leading multinational organization. This
profound experience along with an able and young team, presents a good chance to succeed in this
venture.
The goal of this venture is to support this sharing mentality of millennials. We plan to expand our
operations all over India in the next 5 years, which would also facilitate on way. Our immediate goal is to
make this service acceptable and lucrative, which they won’t be able to reject.
Initially we will be based out of the 4 metro cities Mumbai, Delhi, Bangalore, and Kolkata. Our customer
base would be essentially millennials and non-frequent travelers. The relationship of BAGWORKS with the
brand Wild craft & Baggit, would help in procuring items at a greater discount. A relatively young
populations and the changing mindset are the major growth drivers. The venture is projected to grow at
20%, given the vastly underpenetrated market with inactive competitors.
Product Description
This is one of the most attractive service for space crunched metro users. This immediately attracts the
millennial generation due to their inherent attachment to a sharing philosophy. The presence in all metros
coupled with a well-established distribution system, enables user to rent bags even for a single way
journey. The insurance benefit with all the products enables to reduce any sort of contingency during the
travel. The free delivery/ pickup of bags, when required ensures the availability of bag in all cases. The
rent charged on a per day basis at very affordable rates.
• Warehouse
• Good inventory is needed of about at least 100 different bags in
the beginning covering all kinds of customer needs based on size,
utility and colour preferences
• A website & application for the product offering
• Inventory
• Suppliers providing highest quality bags (starting off with a single supplier and
increasing to 5)
• Estimating the no. of bags based on the no. of bag days and number of travellers
in Mumbai (1st year) and other cities (next 3 and 2 years)
• Distribution
• Setting up office buildings at location closest to labour force and suppliers (1-2 offices in
first year)
• Lease/buy more spaces for easier transportation (1-2 per location in 3 years)
• More land and buildings as expansion takes place to 4 new cities in the next 2 years
• A separate taskforce (24x7) to assist customers. Enhance and expand customer support
as business expands to more cities
Website: Five year plan includes:
• A separate task force to maintain the website and troubleshoot it as and when need
arises.
Marketing Plan
Brand Strategy: To become a brand associated with frequent travellers and capture the
adventure and tourist traveller market
Distribution Strategy: Tie up with hyper local partners for delivery (i.e.: Deliveroo – Sprint
Services, Road Runner, etc.)
Product Strategy: Buy products from American Tourister, Samsonite etc. Also keep small
quantities of premium brands such as Louis Vuitton & Burberry. Additionally install tags in the
bag to enable ‘tracking’
Promotion Strategy: Tie up with travel booking sites – ‘option to rent a bag’ along with the
travel insurance and other fringe options
Financial Plan
Demand Estimation:
Percentage of Population
1.66%
of Mumbai w.r.t to India
No of competitors 3 2 6 6 6
-3rd Party Revenue Sharing Expense 1,227,643 2,649,663 4,876,525 7,473,916 42,927,109
INVESTING ACTIVITIES
FINANCING ACTIVITIES
EXPENSES
+ Other Income 0 0 0 0
= Earnings Before Interest and Taxes 3,067,658 6,945,826 12,573,004 19,803,686 115,846,713
CURRENT ASSETS
DEBT
EQUITY
Director Amey Patale, PGDM (Finance) SIMSR, B.E. (Computer Engg) RGIT, Mumbai University has an
experience of 3 years in Automation Testing and an experience of 11 years in Credit Analysis. He is a
proven leader and an inspirational speaker.
Store Manager Shivakant Shukla, PGDM (Operations) SIMSR, B.E. (IT Engg) VIT, Mumbai University
has an experience of 3 years in Development and an experience of 15 years in Supply Chain. He carries
with himself large amount of technical expertise and is a proficient manager.
Website Manager Nick Shah, B.E. (Computer Engg) SP College, Mumbai University has an experience
of 6 years in website development. Nick possess the technical abilities and knows everything about the
website.
Call-Center Manager Shreyash Mantri, PGDM (Marketing) SIMSR, B.Tech (Mechanical) NMIMS has an
experience of 4 years as a relationship manager. Shreyash possess excellent communication skills and is
known for handling several large clients.
Risk Analysis
Business risk
Market Risk
Brand awareness
Brand loyalty
Risk of consumer distancing himself or herself from this kind of service
As the director, I would like to be in business till perpetuity, however, in case of a situation that
demands an exit from the business, the following are the alternatives which would be exercised.
1. Sell to an AMC
2. IPO