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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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• 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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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
•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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