Reality Academy Entrepreneur

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Reality Academy - entrepreneur
Entrepreneur (ESLSCA Business School Paris (Egypt))
Studocu is not sponsored or endorsed by any college or university

Downloaded by Bisky Khalil (beski.khalil84@gmail.com)
lOMoARcPSD|20537117

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ACKNOWLEDGMENT
We would like to express our gratitude and special thanks to Professor

Ahmed Fouad for his support and guidance during the course "Entrepreneurship"
and project. We are really grateful to him for helping us learn so much new things
and to give us a golden opportunity to do this amazing project.
He is an inspiration to students and other teachers alike. He activated the

desire for knowledge and wisdom, which inspired us to plan our future and become
good entrepreneurs. Thanks for everything.
Thank you,
Project team

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Contents
o Introduction:................................................................................................. 2
o Executive Summary:...................................................................................... 2
o Vision & Mission: .......................................................................................... 3
o Goals & Objectives and Values: ..................................................................... 4
The Reality Test .................................................................................................. 6
o Global economic overview (macro) (PESTEL): ................................................ 7
1- Political and legal Strengths: ............................................................................................................. 7
2- Demographic: .................................................................................................................................... 7
3- Economic forces: ............................................................................................................................... 8
4- Sociocultural: .................................................................................................................................. 10
5- Technological: ................................................................................................................................. 11
6- Environmental:................................................................................................................................ 12
7- Global: ............................................................................................................................................. 13
o Feasibility Analysis (Micro) – Industry Analysis Using Porter 5 Forces: ........ 14

1- Power of Suppliers: ......................................................................................................................... 14
2- Power of Buyers: ............................................................................................................................. 15
3- The Threats of New Entrance: ........................................................................................................ 16
4- Rivalry Among Other Enterprises:................................................................................................... 17
5- The Threats of Substitutes: ............................................................................................................. 17
Porter 5 Forces Matrix ............................................................................................................................ 18
o Survey:........................................................................................................ 20
Competitive test ............................................................................................... 27
o SWOT Analysis: ........................................................................................... 28
o Competitor analysis: ................................................................................... 30
Direct competitors: ................................................................................................................................. 33
Indirect competitors: .............................................................................................................................. 33
Replacement Competitors: ..................................................................................................................... 33
How can we deal with that? ................................................................................................................... 34
Business Model Canvas ........................................................................................................................... 35

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o Key Success Factors:.................................................................................... 36

o Marketing Plan: .......................................................................................... 38
Segmentation: ......................................................................................................................................... 38
Marketing entry strategy: ....................................................................................................................... 38
7ps marketing mix:.................................................................................................................................. 38
HR Model .......................................................................................................... 41
Legal Framework .............................................................................................. 46
Value Test ......................................................................................................... 49
CAPECS: ................................................................................................................................................... 50
OPECS: ..................................................................................................................................................... 51
Break Even Analysis: ............................................................................................................................... 55
Payback Period:....................................................................................................................................... 56
The Return on Investment (ROI): ............................................................................................................ 57
Web Site ........................................................................................................... 58
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o Introduction:
▪ Egypt has a new era of education process development as the ministry of education used new
curriculums and add the technology in the learning cycle such as tablets;
▪ Reality Academy will be the first Academy using Augmented Reality technology in teaching new
stages students in Cairo; Aiming on making the education process new experience.
▪ The student will not only memorize information but also, he will have the competency to
understand and acquire more professional skills.
o Executive Summary:
▪ Our academy using Bloom’s taxonomy to help educators plan a curriculum, syllabus or course by
offering a structure about how student learn;
▪ The lowest levels of learning – Remembering and Understanding our instructors must ensure that
students have a good grasp of the content at these levels then moving on to higher levels of
learning;
▪ The academy true purpose of existence is to reach this higher level of learning such as applying,
evaluating or creating to prepare the student for professional life and successful careers.

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o Vision & Mission:
Vision
A world has mixed education of imagination and reality
to be in Effective, safe and Enjoyable for all
Mission
▪ Our mission is to deliver innovative, value-driven, and flexible training intelligent solutions
that are aligned to the specific needs of people seeking upgrading and improving
professional development and training within the education Sector. Throughout offering
learning content and visualize the academical curriculums’ creation at augmented reality
environment; our programs promoted a unique learning in which the training staff engage
with students. furthermore, evaluating of all courses by delegates ensuring prompt feedback
and improvement.

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o Goals & Objectives and Values:
Goals:
- To provide facility that support educational programs and enable students to develop
profession specific skills.
- To provide stimulating environment to develop an inquisitive mind.
- To provide a curriculum that is rich and relevant and allows all students to succeed.
- To enhance the quality of teaching and learning by means of innovative practices and
leading-edge technology.
- To enable the discovery of true potential.
- To continually improve, and ensure the effectiveness of the training programs in helping
students to acquire creative and entrepreneurial skills suitable for successful careers
- To improve students’ creative and Critical Thinking competencies as well as technical skills
prior to graduation.
- Provide practical opportunity for teachers to apply their knowledge and skills in a
collaborative learning environment.
Objectives:
- By the end of current semester, the training institute will be 100% functioning.
- By the end of the first operating year the whole classes will be occupied by 85%.
- By the end of 2nd operating year, the classes’ capacity will be doubled.
- Increase year-to-year retention of all students to 95%.
- By the end of 2nd operating year new branches will be open in another place
- By the end of the 2nd operating year introduction of new educational stage
Values:
- Priorities - students come first
- Responsibility and accountability – for each information we teach
- Excellence – We are an institute that strives to excellence
- Cooperation – We work well together with all of our friends and classmates
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- Growth – We have growth mindsets. We always believe we can improve

- Honesty – We value honesty when communicating with one another

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The Reality Test

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o Global economic overview (macro) (PESTEL):
1- Political and legal Strengths:
a) The government of Egypt Is working aligned with the SDGs, Goal 4: Quality Education
along with Egypt’s vison 2030.
b) In order to address the shortage of teachers in Egypt, and keep up with the demand for
educational services owing to a large and rapidly growing population, The current
President has taken steps to state in Q122 that Egypt will appoint a total of 30,000 new
teachers annually up until 2027. This will assist in combating the rising pupil-teacher ratio,
which is inconducive for a quality teaching environment and promote the profession.
c) In November 2019, the Egyptian Cabinet approved the formation of the National Council
for Artificial Intelligence (NCAI) to include representatives from all relevant government
entities as well as independent experts in the field of Artificial Intelligence (AI). The
Council’s main objective is to formalize and govern the implementation of Egypt’s
National AI Strategy.
d) Conflicting decisions in the field of education issued by some ministers.
e) Impact of the war between Russia and Ukraine.
f) Number of infrastructure development projects related to education, digital
transformation and distance education technologies (increase)
2- Demographic:
Egypt has a population of 104 million people, with growing rate of 1.94%, which
represents a high promising and huge market and attractive to new enterprise.

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3- Economic forces:
According to the latest World Bank annual ratings. The indicator of Egypt changes after
the war.

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4- Sociocultural:
a. One of Egypt’s biggest socio-economic problems is the high unemployment rate which
has been growing over the years. The unemployment rate, 7.2% (2.151 million people)
during the second quarter (2Q) of the year, according to the Central Agency for Public
Mobilization and Statistics (CAPMAS). The high rates of unemployment and population
growth coupled with meagre wages in most of the public sector companies contribute to
the poverty levels, with close to 27.9% of Egypt’s population below the poverty line. The
education indicators of Egypt project a poor image of the education system. Only about
58% of the population is literate and there is a big difference in the literacy rates for males
and females.
b. deepen the European Bank’s engagement in support of gender and climate responsive
energy, transport and municipal infrastructure services, including to combat gender-
based violence and harassment
c. Support greater access to and greener modes of information and communication
technologies, including to underserved populations, by exploring options to develop fixed
and mobile broadband infrastructure.
d. Support the adoption of electronic platforms for public procurement in line with best
practices, and promote inclusive procurement (SMEs, women and youth) and learning
platforms.
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5- Technological:
a. Gen Z is currently the largest demographic group globally. They spend an average of 3
hours on social media per day. These digital natives (target audience) are driving where
social is headed next.
b. according to these facts in January 2022 according to Digital 2022 (Global overview
Report):
- 41.8% of the Egyptians uses online video as a source of learning.
- 86.3% of the Egyptians playing video games.
- 26.5% of internet users used use of virtual private networks.
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c. Egypt’s fourth most-populated tech sub-sector is ed-tech, with 42 startups making up:
- 7.5 % of the overall total. These startups are a mix of online learning platforms and
course providers, learning management systems for educational institutions, and
value-added education-focused solutions.
- Startups in the education space are spread more widely across the country than in
other sectors, though still clustered in Cairo. While 90.5 per cent of Egypt’s ed-tech
ventures are based in Egypt’s capital, startups are also active in Damietta, Assiut, Minya
and Fayoum.
6- Environmental:
- After the COVID-19 crisis, which coincided with the government's preparation for
digital transformation, which made the government resort to various educational
platforms. It has made the life environment fully prepared to receive all that is new in
the various educational tools and made way for the replacement of traditional tools
with advanced technology.
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7- Global:
- Despite the global COVID-19 crisis, the Egyptian economy has been stable due to recent
macroeconomic and structural reforms. According to global macroeconomic models and
forecasts of analysts in trade economics, the ease of doing business in Egypt was expected
to rank 124th out of 190 countries in 2022. But there is no doubt that has changed after
the war between Russia and Ukraine, which greatly affected the economy. The global rise
in the price of the dollar and energy, which has negatively affected Egypt and its economy.
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o Feasibility Analysis (Micro) – Industry Analysis Using Porter 5 Forces:
1- Power of Suppliers:
Main suppliers: AR glasses and media providers & Teachers
AR glasses and material suppliers: With the remarkable technological progress in the field of using
augmented reality technology and its entry into many fields in Egypt, many suppliers turned to
specialize in providing this technology and competing in providing services at different prices and
offers, from providing glasses to designing the necessary scientific materials, and this made the field
for bargaining wide. And the possibility of changing between companies is available.
Teachers: To encourage students and parents to join the academy it will be useful to cooperate with
their favorite teachers as their trainers too to combine the best providers of the scientific material
and the excellent explanation, this also has a wide range for choosing between more than one
distinguished teacher who presents the same scientific subject.
Analysis:
Fact Situation Attractiveness Points

moderate
1 Number of suppliers medium Number 3
Attractiveness
moderate
2 Size of suppliers medium Number 3
Attractiveness
medium Moderate
3 Supplier concentration 3
concentration Attractiveness
Availability of substitutes for the Moderate
4 medium Number 3
supplier’s products Attractiveness
Uniqueness of supplier’s products or Low
5 Low Attractiveness 2
services (differentiation) differentiation
Switching cost for supplier’s Low Switching
6 Low Attractiveness 1
products cost
Supplier’s threat of forward Moderate
7 Medium 3
integration Attractiveness
Industry threat of backward
8 Low Low Attractiveness 1
integration
Supplier’s contribution to quality or Moderate
9 Medium 3
service of the industry products Attractiveness
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Moderate
10 Importance of volume to supplier Medium 3
Attractiveness
Total industry cost contributed by
11 High High Attractiveness 5
suppliers
Importance of the industry to
12 High High Attractiveness 5
supplier’s profit
Average of Points 2.9
2- Power of Buyers:
Given the great importance that parents and students give to the high school study, the difficulty of
the scientific subjects, and the great need to facilitate and clarify them for students as much as
possible, we expect that the number of clients will be relatively large and their bargaining power will
be limited. And the courses will be with specific prices and affordable as possible, especially at the
beginning of providing the center's services.
Analysis:

High
1 Buyer volume (number of customers) Large Number 4
Attractiveness
High
2 Size of each buyer’s order Large number 4
Attractiveness
High High
3 Buyer concentration 4
concentration Attractiveness
Low
4 Buyer’s ability to direct substitute low 1
Attractiveness
Low
5 Buyer’s switching costs Low 1
Attractiveness
Low
6 Buyer’s information availability Low 1
Attractiveness
High
7 Buyer’s threat of backward integration High 5
Attractiveness
Moderate
8 Industry threat of forward integration Medium 3
Attractiveness
High
9 Price sensitivity High 5
Attractiveness
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3- The Threats of New Entrance:
The economies of scale on our services will be low at the beginning, the capital required to begin
this work is moderate and comply with governmental regulation's is important for new entrants
which decrease the threats of new entrants. on the other side the customer loyalty to the existing
enterprises may be low with the new techniques we serve and the limited niche we deal with so it
gives a good chance to have a good market share.
Analysis:

Low
1 Advantages of Economies of Scale low 1
Attractiveness
Medium
2 Capital Requirements to Enter Medium 3
Attractiveness
High
3 Product differentiation High 4
Attractiveness
Low
4 Brand identity/loyalty Low 1
Attractiveness
High
5 Access to latest technology High 4
Attractiveness
High
6 Access to necessary inputs High 4
Attractiveness
High
7 Absolute cost advantages High 4
Attractiveness
High
8 Experience and learning effects High 4
Attractiveness
Low
9 Government policies Low 2
Attractiveness
Low
10 Switching costs Low 2
Attractiveness
Expected retaliation from existing High
11 High 4
players Attractiveness
Average of Points 3
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4- Rivalry Among Other Enterprises:
By conducting a market survey, it was found that the number of competitors who provide the same
services provided by Reality Academy is relatively small especially in the target area (Heliopolis) and
the target niche (High school students)
Analysis:

Low
1 Number of competitors Low 1
Attractiveness
Low
2 Diversity of competitors Low 1
Attractiveness
Medium
3 Industry growth Medium 3
Attractiveness
Medium
4 Industry concentration and balance Medium 3
Attractiveness
Medium
5 Quality differences Medium 3
Attractiveness
Medium
6 Product differentiation Medium 3
Attractiveness
Low
7 Brand identity/loyalty Low 1
Attractiveness
Low
8 Switching costs Absent 1
Attractiveness
Medium
9 Informational complexity Medium 3
Attractiveness
Medium
10 Barriers to exit Medium 3
Attractiveness
5- The Threats of Substitutes:
- Through the research, we found that there is no alternative to the same educational service
that we will provide, but there are similar services, such as those provided by PL kids
https://plkids.net/
- a company that provides software solutions using augmented reality technology for nurseries,
schools and individuals only and does not provide this knowledge through educational classes.
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- The site https://praxilabs.com/ar also provides educational services using augmented reality
and also https://www.facebook.com/Rmagine provides the same service through the
Rmagine application. There is no company that provides educational classes using augmented
reality technology, while the rest of the educational centers and platforms provide traditional
educational services
Analysis:

Number of substitute products moderate
1 moderate 3
available Attractiveness
moderate
2 Buyer’s propensity to substitute moderate 3
Attractiveness
Relative price performance of
3 high high Attractiveness 5
substitutes
Perceived level of product
4 high high Attractiveness 5
differentiation
moderate
5 Switching costs moderate 3
Attractiveness
Substitute producer’s profitability & moderate
6 moderate 3
aggressiveness Attractiveness
Porter 5 Forces Matrix
Threat To Weighted
Force Importance
Industry Score
1 Power Of Suppliers 5 2.92 14.6
2 Power Of Buyers 5 3.11 15.6
3 The Threats of New Entrance 5 3 15
4 Rivalry Among other Enterprises 5 2.2 11
5 The Threats of Substitutes 5 3.67 18.4
Total 74.6
✓ Bargaining power of suppliers: Reality Academy is moderate attractive with available

substitutes and low switching risks.
✓ Bargaining power of buyers: Reality Academy is moderate attractive with serving a specific
niche and beneficiary switching costs are high.
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✓ Threat of new entrants: Reality Academy is moderate attractive with moderate capital
requirements and the absence of economies of scale.
✓ Rivalry among other enterprises Reality Academy is more attractive we have the
opportunity to offer a differentiated service.
✓ Threat of substitutes: Reality Academy is less attractive with lower prices of substitutes
services.
Final score of Porter 5 Forces Matrix is 74.6 From 125, but We believe that the idea of the project is
high-medium due to the fact that it depends on the use of new technology in the field of education,
and we believe that we can increase this percentage through good marketing of the project idea,
carefully choosing the target group and providing a distinguished educational service that has no
alternatives at the present time.
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o Survey:
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‫النوع‬ ‫االحتياج لوسائل مساعدة للتعلم‬
55% 45% ‫ذكر‬ 34% ‫نعم‬

‫انثى‬
66%
‫ال‬
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‫صعوبة التعلم‬ ‫رغبة التعلم عن طريق ‪AR‬‬
‫‪38%‬‬ ‫‪17%‬‬
‫‪62%‬‬ ‫‪83%‬‬
‫نعم‬ ‫ال‬ ‫نعم‬ ‫ال‬
‫المدرسة‬
‫‪19%‬‬ ‫‪4% 13%‬‬

‫حكومى‬
‫‪64%‬‬ ‫تجريبى‬
‫‪23‬‬
‫)‪Downloaded by Bisky Khalil (beski.khalil84@gmail.com‬‬

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Competitive test
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o SWOT Analysis:
Strength weaknesses
• Many suppliers have turned to specialize • The participation rate may not be
in providing this technology large at first, because most
• The competition in providing services at parents aren’t familiar with
different prices and offers, which made modern technology
the field of bargaining wide. The • The lack of a sufficient number of
possibility of change between companies qualified teachers who are looking
is available. forward to this modern
• Providing students with preferred technology
teachers as their trainers to combine the • Training is limited to some limited
best scientific material providers and subjects due to the small number
excellent explanations of teachers
• AR glasses are easy to use, rich content of
scientific material, attractive way to
explain, easy to carry.
• Augmented reality is an independent way
of learning.
• Learning improvements based on
students' need for science subjects
• Provides the student with quick access to
and understanding of information
• The number of clients is relatively large
due to the great importance that parents
and students attach to secondary studies,
the difficulty of scientific subjects, and the
great need to facilitate and explain them
to students as much as possible.
• Training at specific and reasonable prices
• Access to latest technology
• AR glasses can be connected to any smart
phone without being restricted to certain
mobile capabilities
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Opportunities Threats
• customer loyalty to the existing • The current political conditions

enterprises may be low with the new such as the Russian-Ukrainian war
techniques we serve and the limited as well as the liberalization of the
niche we deal with so it gives a good exchange rate
chance to have a good market share. • Competition from existing Players
• Product differentiation
• The difficult of Brand making and
• The number of competitors offering the customer loyalty
same services as we do is relatively small
especially in the target area (New Cairo)
and the target place (high school
students)
• There is no substitute for the same
educational service that we will provide,
but there are similar services, such as
those that PL kids h only provide for
nurseries, schools and individuals and do
not provide this knowledge through
educational classes. No company
provides educational lessons using
augmented reality technology, while the
rest of the educational centers and
platforms offer traditional educational
services.
• The growing level of awareness and
recognition of the importance of this type
of education.
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o Competitor analysis:
- Competition analysis or competitive research is a field of strategic research that specializes in the collection and review of
information about rival firms. It's an essential tactic for finding out what our competitors are doing and what kind of threat
they present to our financial well-being.
First, we have to define all our competitors:
Competitor C
Competitor B
Competitor A Rmagine
Praxilabs Importanc
Reality Plkids https://www.facebook
Factor Strength Weakness https://arblog.praxilab e to
Academy https://plkids.net/ .com/Rmagine
s.com/ Customer
Educational Software solutions using

classes augmented reality Educational services
Products technology for nurseries, Educational services
using using augmented
&  schools and individuals using augmented 5
augmented only
reality through the
Service reality
reality )Educational games for Rmagine application
technology children(
Affordable
Price  High Price High Price unclear 5
Price
Quality High Quality  High Quality High Quality unclear 5
Custome High school
 children High school students Preschool children
rs students
Reliabilit Low
 High Reliability High Reliability Low Reliability 4
y Reliability
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Competitor C
Competitor B
Praxilabs Importanc
s.com/ Customer
1380 nursery & 135 Praxilabs is trusted by

School more than 500,000
users in 160 countries
around the world.
Start-up High Stability High Stability relatively stable
Stability  3
company Since 2014 2016
Expertise Low  High High unclear 4
Compan
y
Low  High High unclear 4
Reputati
on
Location New Cairo  Online Website Online Website Online App 3
Paying for subscription Payment for
Sales Pay for Buying educational
 to the educational educational service for 3
Method classes toys
platform schools
Credit
Available  Available Available unclear 4
Policies
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Competitor C
Competitor B
Praxilabs Importanc
s.com/ Customer
Facebook
Advertisi Facebook Ads &
Ads &  Facebook Ads unclear 3
ng campaigns
campaigns
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Direct competitors:
A direct competitor can be defined as someone who delivers the same products or services as our business. They are the first and
most ‘visible’ competitors that we consider for a competitive analysis due to their business’ similarity to ours.
Through the analysis of the competition (as shown in the table above), it is clear that there are no competitors that provide the
same service of teaching scientific subjects for the secondary stage using augmented reality technology through specially prepared
classrooms.
Therefore, we alone will provide this new educational service
Indirect competitors:
Indirect competitors refer to those that deliver different products or services than we offer but share the same target consumers.
Therefore, we consider each of the three competitors shown in the above table as indirect competitors who provide a similar
service to the same customers, but are not provided through educational classes and specialized teachers who follow up the
progress of the educational process for students, but their services were limited to dealing with schools and nurseries, preparing
educational programs and selling them to customers as self-education Like https://plkids.net/ &
https://www.facebook.com/Rmagine or even learn by entering the educational platform such as https://praxilabs.com/ar .
Replacement Competitors:
We considered the replacement competitor anyone who can replace our products or services altogether by providing a new
solution. These competitors provide obstacles in market analysis because of their inherent unpredictability. They can create and
provide a newer, faster and more productive solution or product.
• That include potential and future competitors (Ordinary educational centers for high school) for example.
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• Also, online educational platforms that can update their services using augmented reality technology.
How can we deal with that?
By developing the three main business elements:
The Quality of product: Preparing distinguished educational programs through specialists in these subjects and presenting them to
students in an enjoyable way that does not depend on memorization, but rather living scientific experiments.
The Quality of service: Providing this educational service through comfortable educational classes for students and facilitating the
use of tools for the educational process.
The Quality of process: Facilitate students' access to all information about their educational journey from the beginning, as well as
parents to ensure that students' progress is monitored.
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Business Model Canvas
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o Key Success Factors:

List of key success factors “Reality Academy” rates
1. Deliver a real value, Part of achieving a growth mindset is knowing how to imagine, rather than assuming that we should
Low 1 2 3 4 5 6 7 8 9 10 High
have all the information ourselves.
2.varieties of student educational material. Low 1 2 3 4 5 6 7 8 9 10 High
3.Reviewing for those inevitable end-of-unit tests doesn't have to be tedious for instructor and boring for students. Liven
up the review lessons -- or reinforce previously taught skills --with one of the games below! A fun -- and educational -- time Low 1 2 3 4 5 6 7 8 9 10 High
will be had by all!
4. Classes incorporate AR help students become more involved. An interactive learning environment provides opportunities
to implement hands-on learning approaches that can increase engagement, enhance the learning experience, and get Low 1 2 3 4 5 6 7 8 9 10 High
students to learn and practice new skills.
5. Ease of access to services via different methods i.e. website, mobile application, and hotline. Low 1 2 3 4 5 6 7 8 9 10 High
6. Ease of use of the website and mobile application i.e. a mobile friendly version for the website and a simple user
Low 1 2 3 4 5 6 7 8 9 10 High
interface and possibly a simple clients’ dashboard for the website and mobile application.
7. Comprehensive and updated databases of instructors', details of every course, and small sample to explain the course. Low 1 2 3 4 5 6 7 8 9 10 High
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List of key success factors “Reality Academy” rates
8. Discounts and deals on the different courses and loyalty program. Low 1 2 3 4 5 6 7 8 9 10 High
9. Regular and periodic evaluation and rating of courses and instructors. Low 1 2 3 4 5 6 7 8 9 10 High
10. Variety of payment methods i.e. using credit/debit cards, Fawry and similar services, electronic wallets, and/or cash
Low 1 2 3 4 5 6 7 8 9 10 High
payments.
Conclusion:
“Reality Academy” should be able to achieve relatively high success in the market, effectively meet the expectations of the students, and meet
the expectations and business objectives.
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o Marketing Plan:
Segmentation:
▪ Demographic: high school students

▪ Gender: Girls & Boys
▪ Educational courses balance/ monthly: Medium to high (+2500 EGP Monthly)
▪ Geographic: People living in (Cairo & Giza)
▪ Behavioral: Mobile users: Who usually use mobile phones.
Marketing entry strategy:
We consider following 2 strategies:

Differentiation
This is due to our provision of distinguished training services for the first time in a direct interactive manner using augmented reality
technology provided by specialized trainers with the absence of direct competition.
focus
the new techniques we serve and the limited niche (high school students – science subjects mainly) we deal with so it gives a good
chance to have a good market share.
7ps marketing mix:
1. Product
Our main aim is to present a different educational training, that will fulfill the need which the customers seek. Depending on the new
educational techniques the customer (trainees) will try, they will have the most recent and highly rated content chosen by content
expert by providing, edutainment materials especially in the scientific subjects.
We would still follow up with our customers by their feedbacks to make sure that they are satisfied and happy with their experience
and to add any suggestions from them.
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2. Place and Distribution
The location of the academy is a critical determinant perceived by parents; indeed, sometimes location and surroundings are more
important than service efficiency for some customers, because parents care much about the safety and location proximity.
Therefore, it is important for us to stress the benefits of our academy’s location, such as calm surroundings, its convenient location,
the safe neighborhood.
place strategy is especially essential to attract students from outside their traditional area, because parents might have serious
concerns about the additional distance between the home and the academy.
Therefore, in choosing our site, we have taken into account all of the above by choosing Heliopolis to distinguish it near several
transportation options that suit the target group of customers.
In addition to choosing a place that is characterized by a stable and fast Internet service commensurate with the activity of the
Academy.
3. Promotion
We need to position ourselves in mind of customer as a unique educational training programs that is different from the other
competitors, we need to keep retain our customers’ loyalty and keep engaging them through communication and new training
techniques.
• Public relations and personal selling: to be part of events like school demos, educational fairs, libraries and clubs. This will be an
excellent chance to stimulate positive interest in the academy training programs and our new educational techniques by meeting
both students and their parents in a very relevant atmosphere.
• Direct Marketing: this will come through a later stage when we have a sufficient customers’ database, through emails and SMS.
• Advertising: we will advertise ourselves in social media ads, beside our academy’s website we will make ads in several schools’
websites and clubs’ websites, we will present brochures in the favorite spots for students’ groups, also using the smart cards and
QR codes to identify our services for the targeted customers.
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• sales promotions: we will present discount vouchers for first applicants, the first 3 sessions free, we will also offer a special
discount for brothers and groups in order to attract the largest number of customers.
4. Price:
When we set our pricing strategy, we considered the customer-oriented prices that involves understanding how much value
consumers place on the benefits they receive from getting our premium educational services and we set the price that captures
that value.
So, we go for the price skimming (premium) strategy because with our niche and targeted segment we can set a high price that
matching our unique services specially in absence of direct competitors, but also with considering lowering the price as the market
evolves to stay competitive.
5. People:
We have a trained and distinguished team to help all our student clients enjoy a distinct, useful and enjoyable educational journey,
help parents follow up on the progress of their children with complete transparency, respond immediately when any customer
complaint occurs and solve the problem immediately.
6. Process:
An interactive process between customers and employees, whether inside the academy or through the website or via e-mail and
in the future through the customer database in order to obtain customer comments and work to constantly improve and develop
the service.
7. Physical evidence:
Availability of comments and suggestions cards for customers within the academy and through the website to improve and
develop the service and suspend the work permit in a visible place for reliability
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HR Model
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The general outlines of Human Resources strategy are as follows:
- The organization structure and the number of the working team should be simple,
reasonable, and allow effectiveness and efficiency.
- It might be subject to conditional expansion according to the changing circumstances and
relative success and expansion of the activity of the Academy.
- the potential expansion of the Reality Academy organization structure could be through
outsourced or handled through freelancers.
- The recruitment targets young talents, who are capable of providing innovation and
motivation.
- specialization is a key element in building the Reality Academy team of workers.
- The recruitment is based on concrete job description and job specifications.
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Information Technology Specialist:
▪ Number of vacancies: (2) Full time vacancy.

▪ Job description:
- Design and implement a website and a mobile application.
- Provide the regular maintenance and update of the website and the mobile application.
- Administer the IT/networking infrastructure.
- Install and configure appropriate software and functions to the academy computers.
- Provide the regular maintenance and update of the company’s hardware.
- Design and implement a website and a mobile application.
- Provide the regular maintenance and update of the website and the mobile application.
- Design and implement the corporate intranet that connects the company’s employees.
- Administer the IT/networking infrastructure.
- Install and configure appropriate software and functions to the company’ computers.
- Provide the regular maintenance and update of the company’s hardware.
Financial/Accounting:
▪ Number of vacancies: (1) Part-time vacancy.

- Manage all accounting transactions.
- Tracking payments to internal and external stakeholders.
- Preparing budget forecasts.
- Processing tax payments and returns.
- Report on the company’s financial health and liquidity.
▪ Job specifications:
- BSc in Accounting, Finance or relevant degree.
- Proven work experience as an Accountant.
- Excellent knowledge of accounting regulations and procedures
- Hands-on experience with accounting software.
- Strong attention to detail and good analytical skills.
Marketing Specialist:

- Develop, implement, and track marketing programs such as email, social media, or digital
campaigns, and events.
- Conducting market research to establish customer trends and habits and analyze trends to
identify new marketing opportunities.
- Promoting brand awareness through marketing efforts.
- Creating marketing materials for the website and other marketing platforms.
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- Supporting the marketing team with marketing activities by demonstrating expertise in

various areas, including optimization, advertising, social media, direct marketing, and event
planning.
- Bachelor degree in journalism, communications, marketing, or a related field is a plus.
- Three or more years of marketing experience (digital and traditional) in a corporate, or
agency
environment.
- Experience using analytics software.
- Excellent written and verbal communication skills.
- Ability to work in a fast-paced, high-pressure environment.
- Multi-tasking and time-management skills, with the ability to prioritize tasks.
- Highly organized and detail oriented.
- Critical thinking and problem-solving skills.
- Ability to work under pressure and motivation to succeed in a competitive environment.
- Ability to work with teams and collaborate.
Student Affairs department:
▪ Number of vacancies: (2) Full time vacancies.

- Maintaining a positive, empathetic, and professional attitude toward customers at all times.
- Respond to customer queries in a timely and accurate way, via phone, email or chat.
- Communicating with customers through various channels.
- Handle customer complaints, provide appropriate solutions and alternatives within the time
limits; follow up to ensure resolution.
- Knowing the company’s products in order to provide information, answer questions and
make
reservations.
- Keeping records of customer interactions, transactions, comments, and complaints.
- Ensure customer satisfaction and provide professional customer support.
- Update the company’s internal databases with information about technical issues and useful
discussions with customers.
- Monitor customer complaints on social media and reach out to provide assistance.
- Gather customer feedback and share with other team members.
- Proven customer support experience or experience as a Client Service Representative
- Strong phone contact handling skills and active listening.
- Excellent communication and presentation skills.
- Ability to multi-task, prioritize, and manage time effectively.
- Excellent communication and problem-solving skills.
- Multi-tasking abilities.
- Comfortable using computers.
- University degree is a plus.
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superintendent:
▪ The job description:

- Managing the day-to-day activities of the team.
- Motivating the team to achieve the academy goals.
- Developing and implementing a timeline to achieve targets.
- Listen to team members’ feedback and resolve any issues or conflicts.
- Suggest and organize team building activities.
▪ The job specifications:
- Proven work experience as a team leader or supervisor
- Good PC skills, especially MS Excel
- Excellent communication and leadership skills
- Organizational and time-management skills
- Decision-making skills
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Legal Framework
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1- Academy agreement Contract:

Contract is held between the partners to create limited liability Company between 6 partners
the company main activities to increase student’s capacities through introducing trainings
with augmented reality technologies
The company capital will be 630,000 L.E each share will 105,000 L.E
The choice of this type of company due to:
• Easy to organize
• Easy to establish
• No personal liability
• Flexibility in business ownership
• Able to convert other business form
• Less formal than corporation
• No double taxation
2- Academy Location
Academy physical place Located in Heliopolis, the place is rental place consists of 7 rooms in
ground floor with green waiting area around the building.
The rent is 15000 L.E per month with 45000 L.E as 3 Month in advance as insurance to the
owner. The term of the lease is 10 Years
3- Real estate registration and Documentation:

- The rental contract should be documented from the real state district and approved and
stamped with the pyramidal stamp and republic stamp.
- Company contract documentation
- powers of attorney for legal accountant and financial accountant.
4- Cairo Chamber of commerce:
- Commercial register from Cairo Investment Commercial Register office to for Academy
verification.
5- Taxes
- Obtain a Tax Identification Number and tax cards via Egypt Tax Authority offices for
registration.
6- Bank
- Creation of Company bank account
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7- General Authority of Investment and Free Zones

- Certificate of non-confusion of the company's Via the general authority website through
next steps.
- Creation of Company Incorporation Services – limited liability company.
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Value Test
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▪ The value test analysis of “Reality Academy” project, which based on revenue stream from
number of students courses through “Reality Academy”. It is forecasted that “Reality
Academy” will process 600 students for first year then expected to be 700 students by
2nd year of operation reaching 1600 students by 4th year.
CAPECS:
“Reality Academy” is limited liability company. The total needed CAPECS to startup “Reality
Academy” project is 632,000 (EGP), which will be financed as 100% equity share of the “Reality
Academy” project team members and have amount of percent for profits & dividends equally.
This amount can cover the costs of the project during almost 1 st year years. The CAPECS
breakdown as follows:
Expenses
Expense
Year Item Amount
Type
Fixed Cost of establishing a new company (LLC) 16,000.00
Fixed Branding and awareness & Digital marketing 25,000.00
Fixed Building “Reality Academy” Website 30,000.00
Year 1 Fixed Rent co-business place (15000*5) 2month to be ready and 3-

75,000.00
(1/1/2023 - month insurance - Heliopolis
31/12/2023) Fixed Buying 65 Mobile Phones 325,000.00
Fixed Buying 60 glasses 60,000.00
Fixed Buying 5 LCD 43” 30,000.00
Fixed Buying 4 blackboard 2,000.00
Fixed Buying 60 student chairs 24,000.00
Fixed Buying furniture (Sofa set, desks and chairs) 20,000.00

Fixed Cost of Creating the App 25,000.00
Total estimated Capital till Launching (CAPECS) 632,000.00
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OPECS:
Expenses
Expense
Year Item Amount
Type
Rent co-business place (15000 / Monthly * 12)

Fixed EGP 180,000.00
Heliopolis
Fixed Hire student Support (6000/ Monthly*12) EGP 72,000.00
Fixed Hire administrator (6000/ Monthly*12) EGP 72,000.00
Fixed E-Marketer (5000 /month * 12 ) EGP 60,000.00
Year 1
Fixed R&D Officer (6000 /month * 12 ) EGP 72,000.00
(1/1/2023-
31/12/2023)
Fixed Hire Maintenance& IT (5000 /month * 12) EGP 60,000.00
Fixed Accountant (6000 /month * 12) EGP 72,000.00
Fixed Director (8000/Month *12) EGP 96,000.00
Variable Misc. Expenses (utilities) (1500/month * 12) EGP 18,000.00
Total expenses for First year EGP 702,000.00
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General Assumptions
fees 2000 LE per course (8 sessions)
number of days opened 6 days * 8 hours
SOURCE/AMOUNTS OF INCOME 1st year
Year 1 Year 2 Year 3 Year 4
Phase 1
Target students 600 700 1000 1600
Phase 2
Target school 10 15 20 30
students/school 50 50 50 50
Phase 3
Direct sale for courses on website __ 50 100 150
Year 1 (1/1/2023-31/12/2023)
Revenue Type Amount
Phase 1: student from secondary stage 40 * 15 * 2000 EGP 1,200,000.00
Phase 2: Contracts with schools 50*10* 1900 EGP 950,000.00
Reality academy Expected Net Revenue based on

EGP 645,000.00
(30%)
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Years of Operation
Year1 Year2 Year3 Year4
Revenue Type
Phase 1: student from secondary stage 1,200,000 1,400,000 2,000,000 3,200,000
Phase 2: Contracts with schools 950,000 1,425,000 1,900,000 2,850,000
Phase 3: Direct sale for program on website ______ 75,000 150,000 225,000
Reality academy Expected Net Revenue based

645,000 870,000 1,215,173 1,882,500
on (30%)
Rent co-business place (15000 / Monthly *

180,000 189,000 198,450 208,372.5
12) Heliopolis with annual increase 5%
Hire student Support (6000/ Monthly*12)

72,000 75,600 79,380 83,349
with annual increase 5%
Hire administrator (6000/ Monthly*12) with

72,000 75,600 79,380 83,349
annual increase 5%
E-Marketer (5000 /month * 12 ) with annual

60,000 63,000 66,150 69,457
increase 5%
R&D Officer (6000 /month * 12 ) with annual

72,000 75,600 79,380 83,349
increase 5%
Hire Maintenance& IT (5000 /month * 12)

60,000 63,000 66,150 69,457
Accountant (6000 /month * 12) with annual

72,000 75,600 79,380 83,349
increase 5%
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Director (8000/Month *12) with annual

96,000 100,800 105,840 111,132
increase 5%
Misc. Expenses (utilities) (1500/month * 12)

18,000 18,900 19,845 20,837
Total Operational Expenses 702,000 737,100 773,955 812,652
Net Income Calculations -57,000 132,900 441,218 1,069,847
Income Tax (22.5%) 0 29,902 99,274 240,715
Net Income After Tax -57,000 102,997 341,944 829,131
Cumulative Net Income after Tax -57,000 45,997 387,941 1,217,073
57 k loss for 46 k 338 k 1.2 M

st revenue for revenue for revenue for
1 Year
2nd Year 3rd Year
th
4 Year
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lOMoARcPSD|20537117
Break Even Analysis:
To calculate the breakeven point at which the total costs equal the total revenues then the following
table shows the annual operating expenses versus the annual forecasted revenues:
Breakeven Point Analysis of "Reality Academy"

Breakeven Point Analysis of "Al
Mohamy"
Total Annual Revenues (EGP) 645,000 870,000 1,215,174 1,882,500
Total Annual Operational Expenses

702,000 737,100 773,955 812,653
(EGP)
Number of Students 600 700 1,000 1,600
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Payback Period:
Payback Period Analysis of

"Reality Academy"
CAPECS (EGP) 632,000 632,000 632,000 632,000
Cumulative Net Income

-57,000 45,998 387,942 1,217,074
(EGP)
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The Return on Investment (ROI):
To get an indicative ROI, the CAPECS used to calculate the ROI was the CAPECS needed to
launch the “Reality Academy” in addition to the addition finance needed to cover the loss in
the 1st year of operation (-57,000EGP), therefore the CAPECS used to calculate ROI is (689,000
EGP) as follows:
Total estimated Capital till Launching (CAPECS) EGP 632,000
Total Operational Loss 57,000
Total CAPECS + Shares needed to cover expected operational loss 689,000
Annual Return on
-8% 15% 50% 120%
Investment (ROI)
Total Return on Investment (ROI) over 4 years 177%
Average Annual Return on Investment (ROI) for 4 years period 44.25%
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Web Site
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Sources:
1- Fitch Egypt Education & Labor Key View - 05 Jul 2022
2- Egypt National Artificial Intelligence Strategy
3- Digital 2022 global overview report.
4- the economist intelligence unit.
5- Central Bank of Egypt monthly report (Sep).
6- World Bank.
7- The Egyptian Startup Ecosystem Report
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Reality Academy - entrepreneur

Entrepreneur (ESLSCA Business School Paris (Egypt))

Studocu is not sponsored or endorsed by any college or university

Downloaded by Bisky Khalil (beski.khalil84@gmail.com)

We would like to express our gratitude and special thanks to Professor

He is an inspiration to students and other teachers alike. He activated the

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o Feasibility Analysis (Micro) – Industry Analysis Using Porter 5 Forces: ........ 14

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o Key Success Factors:.................................................................................... 36

Web Site ........................................................................................................... 58

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o Vision & Mission:

A world has mixed education of imagination and reality

to be in Effective, safe and Enjoyable for all

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o Goals & Objectives and Values:

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- Growth – We have growth mindsets. We always believe we can improve

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The Reality Test

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o Global economic overview (macro) (PESTEL):

1- Political and legal Strengths:

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o Feasibility Analysis (Micro) – Industry Analysis Using Porter 5 Forces:

Main suppliers: AR glasses and media providers & Teachers

Fact Situation Attractiveness Points

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Fact Situation Attractiveness Points

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3- The Threats of New Entrance:

Fact Situation Attractiveness Points

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4- Rivalry Among Other Enterprises:

Fact Situation Attractiveness Points

5- The Threats of Substitutes:

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Fact Situation Attractiveness Points

Porter 5 Forces Matrix

✓ Bargaining power of suppliers: Reality Academy is moderate attractive with available

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‫النوع‬ ‫االحتياج لوسائل مساعدة للتعلم‬

55% 45% ‫ذكر‬ 34% ‫نعم‬

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‫صعوبة التعلم‬ ‫رغبة التعلم عن طريق ‪AR‬‬

‫نعم‬ ‫ال‬ ‫نعم‬ ‫ال‬

‫‪19%‬‬ ‫‪4% 13%‬‬