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English Now Online Education in China

English Now Online Education in China. Largest Market for English Education 2 Australia Canada China Denmark France Germany Ireland Italy Japan Luxembourg

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English Now

Online Education in China

Largest Market for English Education

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Australia

Canada

China

Denmark

France

Germany

Ireland

Italy

Japan

Luxembourg

Mexico

Netherlands

Singapore

Spain

South Africa

United Kingdom

United States

Proposal

• A virtual campus where students can come online to practice English• Students will have an opportunity to practice English after school and as part of

their daily life. • Ideally, we hope our users will develop a habit of communicating with others

every day through our virtual campus• Tools to do this are freely available which keeps our costs down.• Second Life ®• We will need $40,000 from you for 40% ofour company

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Products and Services

• English Corner• Listening Lab• Writing Corner• ESL Classes• One-on-One tutoring• Public Library• Movie Theatre

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Pricing Structure

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$30 for each Package Package 1 Package 2 Package 3 Package 4

English Corner (1.2 hours each time)

4 times 3 times 5 times 0

Writing Corner 2 times 4 times 0 10 times

Listening Lab No limit  No limit  No limit No limit

Movie theatre No limit  No limit  No limit No limit

ESL class 750 Yuan ($112) for 12 weeks 24 hours tuition time + one month membership

Tutoring 100 Yuan ($15)/hour

Marketing Decisions

• Focus on middle school students that are aiming to get into respectable colleges‒ All students must write a 5 subject exam of which English is a major

component• Choice: Xi’an in the Shaanxi province

‒ Third largest education center in China‒ Chinese government intends to push education from Xi’an to western

provinces• Shaanxi province has 99 universities/colleges with 666,900 undergraduate

students and 58,400 graduate students• 2092 junior middle schools with 2,142,200 students and 1,476,300 senior high

school students

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Operation Plan

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• Startup Costs of $90,000• Expect to make it back within the first

year• Dividends over the next 4 years are

close to $800,000 based on very conservative estimates

• Very low cost structure‒ Salaries biggest portion of costs‒ Cost of sales very small‒ Fixed Costs include – Hosting

Payments, Rent, and Admin CostsExpect to grow into 4 new cities by

2014. Try to capture 1500 subscriptions per city.

Financial Analysis

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Financial Details

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  2011 2012 2013 2014Starting Cash Balance 120,000 32,825 122,671 168,634

Dividends  0 (75,000) (150,000) (650,000)Cash Out from Existing Operations  0 164,846 195,963 271,830 Cash from Expanded Operations  0  0  0 693,966 Ending Cash Balance 32,825 122,671 168,634 484,430

Thank You

Questions?

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What is Second Life

Key Success Factors

Comparative Prices

Competitive Environment Analysis

English Education in China

Expense Listings

Marketing Strategy – Go to Market

Market Strategy Going Forward

Risks

Comparative Pricing Info

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Types of English education

English education software. (Non – interactive)

Online English education (Non-Interactive)

Instructor lead class (non-native speaker)

Instructor lead class (native speaker)

Price/year $10 – 20 $15 – 933 $200 - 400 $700 – 4200

What is Second Life

• Online virtual world where users can interact with other users using the online version of themselves (avatars)

• Second Life ® gives users the ability to purchase land and build their own virtual worlds

• We want to build a virtual campus with the purpose of allowing students to partake English conversation with paid English instructors in Canada.

• Virtual campuses is not a new idea‒ Harvard‒ Yale‒ University of Ohio‒ Virginia Tech‒ Hong Kong Polytechnic University

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Instructors

Enhance

Interest

Teaching

Contents

Technology

Promotion

Key Success Factors

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Competitive Environment

Bargaining Power of

Customers: LOW

Rivalry Among Existing

Competitors: HIGH

Threat of Entry: HIGH

Bargaining Power of

Suppliers: LOWThreat of Substitutes: High

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Chinese English Education

• In 2001 – English taught in school since grade 3• 10 years learning English in school + 2 more years in University• English taught as a science

‒ i.e. Here is what you need for Toffel, GMAT, etc.‒ Little focus is given to speaking English‒ Do very well on exams

• Most students lack the ability to have casual English conversations

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Expense Listings

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Campus DevelopmentVirtual Land PurchaseVirtual Land Operating CostsGraphics DesignerLearning Content DevelopmentSoftware LicensingContent DevelopmentWebsite DevelopmentWebsite DevelopmentWebsite Maintenance CostsWebsite Hosting Costs

Office Set Up CostsChina OfficeRentSuppliesMarketing Costs

Vancouver OfficeRentSupplies

Salaries

Marketing Manager - ChinaVancouver InstructorsVancouver Admin & Tech Support

China Admin & Tech SupportESL TeacherHiring Costs

Marketing Strategy

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Road shows

Google Us

Universities

•Phase 1‒ Network Building

• Education Bureau

•Phase 2‒ Seminars

• Building networks with teachers

•Phase 3‒ Testing the product

• Recommend to students

Marketing Strategy – Go to Market

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‒ Competitors Copying Us‒ Sales Forecasts depends on

marketing plan‒ Chinese Market synergies ‒ Ability to retain talented instructors‒ Reliance on 3rd party for software

requirements (Linden Labs)

Risks

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Financial Analysis

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Microsoft Office Excel 97-2003 Worksheet