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Table of Contents
EXECUTIVE SUMMARY
MARKETING PLAN
SALES PLAN
FINANCIAL REPORTING
EXECUTIVE SUMMARY
Overview:E-business today has embodied an electronic transformation of our culture. This
transformation has emerged in the use of technology, which has become pervasive
throughout our daily life. One of the problems that this use of technology has brought to
us is the user unfriendliness that is often its byproduct. One of the latest trends has been
to enable users to utilize technology more effectively, with less hassle and to make
technology transparent in its use.
Intrigued by the communication and language barriers that would prevent e-business
from flourishing, Zooks decided to invent a software technology to overcome the
situation. There are over 6,000 languages spoken today in 288 countries. Zooks set out
to build a software engine that could easily and quickly facilitate the use of these
languages in e-business environments. Zooks subsequently introduced a product at an
October 2000 international exhibition to enthusiastic crowds that waited in long lines to
see live demonstrations of their technology.
The result has been an overwhelming success. Zook's new technology has resulted in
several new products that are destined to transform the degree to which international
users utilize e-business. Zook's focus is to extend this technology beyond language and
geographical boundaries, allowing anyone to participate, be connected to, and
effectively utilize the global e-business community.
Zooks has subsequently positioned itself as a dynamic, exciting, growth-oriented
software company that designs and develops software focused on making user
environments easier and friendlier to use. Today, Zook's suite of products supports the
Zook's Mission
Zook's mission is to enhance e-business communication by developing premium
products and services utilizing Zook's technology. Initially, major goals are to provide
products that enhance the Internet experience. The Internet itself does not drive the
entire world of e-business, but it is a substantial place to start. Ultimately, the company
intends to develop products that enhance non-Internet related e-business transactions,
and through these to set the standard for the next generation of e-business software
technologies.
Specifically in relation to the Internet, Zooks plans to address the difficulties that
international e-business customers currently face. Zook's mission includes:
The first component is internal new product development. Zooks will develop software
for its competitive market edge.
The second component is external integration of Zooks products into potential strategic
business partners' browsers, e-mail systems, websites, wireless devices and applications,
global telephone systems and directories, home entertainment devices and database
packages.
The third component is aggressive sales and marketing. Zooks intends to develop a sales
and marketing campaign focused primarily on the U.S. Fortune 1000, as well as the top
1,000 international companies, end users of those companies, and their affiliates.
Competitive Summary
Zook's products are unique in the capabilities they bring to market. There is no direct
competition for the company's products. Zook's products are focused on
the globalization of information distribution and access, while competitor's products are
more niche focused.
Business Model
Zook's business model is comprised of three components, Participate, Connect, and
Utilize.
UtilizeZook's products allow any user to effectively utilize e-business by making it userfriendlier. Being able to communicate in your natural language without worrying about
misspelling will greatly enhance users' experience of e-business.
Operations
An in-house staff of individuals with extensive experience in all related industries will
comprise the operational team. These individuals will have, at a minimum, the following
expertise:
Each of these operational divisions will share a focus on success, achievement, and the
creation and maintenance of value and customer satisfaction.
Management Team
The company's management team consists of three highly skilled individuals who
together founded the company in September 2000. These individuals have extensive
knowledge and expertise in the technology behind Zook's applications. Furthermore,
they share a vision for Zook's future and they excel at keeping the company on track to
achieving that vision.
As the company grows, the three founders intend to bring on an executive team skilled
in the daily operations as well as the strategic and tactical management and oversight of
the organization. The founders intend to then divide their talents to areas best served by
them.
Summary
Today's e-business landscape is one that is painted with many companies in much
geography worldwide. In this environment, there is no real solution to the language
barriers that exist to totally effective use of e-business.
Zook's vision is to facilitate global e-business by providing applications and tools that
will dissolve the barriers created by the multi-lingual global economy. No company ever
has taken on this challenge and presented a solution that is both affordable and easy to
access and use. This is what differentiates Zook's approach and is what generates the
value that Zooks intends to bring to market.
MARKETING PLAN
Market Overview
In its simplest sense, e-business is the use of technologies to improve and transform key
business processes. Most companies understand this and are on their way in the
evolution from traditional business practices to e-business. They have begun to
technologically enable core processes to strengthen customer service operations,
streamline supply chains, and reach existing and new customers. The accessibility and
broad reach of technology has forever changed customers' expectations regarding
support and response. Customers today expect accurate, round-the-clock service.
Hence, the requirement for a massively scalable, reliable, and secure electronic
foundation that includes reliable and available servers, industry-leading software and
middleware, and worldwide consulting services from experts with industry-specific
knowledgeall supported by a scalable and robust infrastructure.
In a few short years, e-business has gone from concept to undeniable reality. The reason
behind this is that it works for everyone: consumers, businesses, and governments. The
primary values of e-businesscost savings, revenue growth, and customer satisfaction
are proving to be just the tip of the iceberg. Having realized the benefit of
technologically enabling individual business processes, many companies are now
seeking further return on investment by integrating new and existing e-business
applications and technologies. For example, two billion Internet-ready devices like
smart phones, PDAs, and other pervasive computing applications are expected to be in
consumers' hands in the next two years. These devices and applications are prime
candidates to better serve customers and improve efficiency. The key to success is
finding a way to give customers what they want without the expense of traditional
business operations.
Once a business e-business-enables its operations, it can find itself in new terrain, where
all of its competitors and customers are also operating as e-businesses (by 2003, the Net
will generate two billion dollars in sales). At that point, "buy, sell, trade online" does not
apply just to stocks and financial units, but to many transactions in which an enterprise
engages. These e-marketplaces have already proven to be the most fluid and changing
aspect of e-business leading the next generation of the technology landscape.
Market Trends
The number of websites, e-mail users, and size of databases increases daily. Customers
want a user-friendly online experience; however, this is becoming more difficult because
of the sheer number of users. Certain trends have begun to surface that prove the need
for Zook's products. These include:
1. An American Internet user survey found that about 15.9 million Americans using the
Internet during 1997 canceled their Internet service because web surfing and e-mailing
were too difficult.
2. Existing Internet search engines do not tolerate typographical errors that users typically
make such as adding an extra period or omitting a dot or comma in a website address.
3. Online customers are less than satisfied when they find shopping malls bottlenecked
with data and language barriers.
4. Navigating through a complex network of more than 1 billion web pages full of
structured content becomes more frustrating for the Internet user. Since more websites
and pages appear while others change faster than search engines can index them,
Internet users fail to make the right connection as no search engine has indexed more
than 33 percent of them.
5. Misspelled product and company names with less than 100 percent accurate web
addresses lead users to dead ends. This creates frustration for the end user and means a
loss of sales revenue for the company.
6. Current search engines are not everything that they profess to be. They do not address a
user's grammar, spelling, frequency of word use, etc. Search engines are important to
Internet use, but they are intolerant of human errors.
Participate Zooks products are designed to enhance users' participation in the global
e-business economy. Prior to Zook's applications, an international user whose first
language was not English started with a disadvantage. Now with Zooks applications, this
user will be able to participate more fully, without having to worry about their English
spelling capabilities.
Utilize Zooks products allow users to more fully utilize the e-business technologies
such as the Internet. Zook's software enables users to work more effectively, moving into
the background many functions that previously took a great deal of time and effort to
utilize.
Competitive Analysis
There are technological changes taking place in the development of information
retrieval and processing. These changes are quickly altering the way Internet technology
is processed. Zooks is faced primarily with indirect competition from the companies
that offer the information process capability.
Zooks is primarily an Application Services Provider (ASP). The ASP business model is
one where the company hosts their application on their website and offers other
applications, or users, access to that software remotely. In addition to the ASP model,
Zooks products also fit into the Client-Server model, where a remote application makes
calls to a centralized application (in this case the remote application is Zook's browser
plug in, and the centralized application is Zook's ASP software).
Conclusion
Being successful in the highly competitive e-business marketplace today is not about the
creativity of the idea or even the capability and functionality of the technology. What
makes one company successful over another is how effective their technology is at
enabling users and creating value for them. Too many companies have assumed that
just because they have a catchy idea or a useful product in their minds, that the public
will also think so.
SALES PLAN
Selling Strategies
The sales strategy that Zooks intends to undertake is a multifaceted approach utilizing
front-end and back-end revenue streams. Front-end revenue streams are those that are
paid directly by the users who will directly utilize Zook's ASP software from the Zooks
website. Back-end revenue streams are those where incremental "value-added" services
are utilized by companies and partners and where Zooks makes some kind of
commission or referral fee from their use. Additional back-end revenue streams include
services that are utilized transparently and visitors to the Zooks website, such as
advertising and click-through revenues.
Front-End Revenue
Front-end revenue streams are comprised of the direct sales of Zooks products.
Back-End Revenue
The following revenue streams comprise back-end incremental revenue that are not
considered to be the primary sources of income for Zooks, but nonetheless will generate
limited income.
Products and Services Sold to the Zooks User Communitythe Company will feature
specific products and/or services on the company's website that are relevant to the
interests of the Zooks user community. These products will generate additional income
for Zooks while providing niche-targeted incremental value to Zooks users.
Strategic Partners
Zooks values strategic partnerships and sees them as a way to leverage brand identity
while bringing the company's software to large numbers of existing users with minimal
marketing efforts on Zook's behalf. Additionally, Zooks views its strategic partners as all
having value-added technology where Zook's technology, combined with that owned by
the strategic partner, together creates a more powerful value proposition than either
could separately.
Strategic partners will be added as the company continues to grow. Strategic
partnerships that are currently under development include the following companies:
Excite, Lycos, InfoSeek, and Yahoo!
Advertising Plan
Zook's advertising plan is to take heavy advantage of Internet based advertising
campaigns, specifically focused on search engine sites. Additionally, Zooks will take
advantage of traditional advertising media's as well, including newspaper, magazine,
and possibly radio and television depending on projected growth.
Online publicity will increase with the launch announcement, distribution of the free
download, and online interviews of Zook's management team. Press relations will
continue with high-tech print trade publications, editors, online , and press releases,
awards programs, high-tech analysts, media events, radio, TV, web casts, editorial
reviews/calendars, tradeshows, and promotional opportunities.
Zook's management team has a wide degree of experience in different corporate focuses.
The current team is comprised of the three founders of the company. Their core
strengths are in the engineering and software development areas. Once fully funded,
Zooks intends to hire an experience management team to oversee operations of the
company and to assure financial projections are met.
Operations
PRODUCT DEVELOPMENT
The responsibility of this department will be the establishment of new sources of supply,
management of the ordering process, procurement, and stocking.
SALES
The sales department is responsible for the achievement of Zooks revenue targets,
management and growth of the distribution channels, and pursuit of corporate strategic
relationships.
MARKETING
Zooks has aggressively moved to protect its developed intellectual property rights such
as trademarks, product designs, and proprietary concepts. These rights are protected
through patent application trademark registrations, the maintenance of trade secrets,
the development of trade presentation and, when necessary, appropriate action against
those who are, in the company's opinion, unfairly competing. Several trademarks have
been issued by the United States Department of Commerce. The current registered
trademark and future patent beneficiary is Zooks, Incorporated. Zooks will be filing
additional trademark registrations and patents for their other technologies in China,
Japan, Korea, the Middle East, and Europe.
Financial Reporting
The company's products are currently available through its website. Once this business
plan is funded, the company intends to hire an executive management team along with
several other individuals in compliance with the implementation of the company's
organizational plan. Additional funds will be utilized to cover operations, sales,
marketing, and product development costs for the remainder of 2001. Funds will be
utilized to cover expenses estimated at just over $1.6 million for the first 12 months of
operation.