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Page 1: Intern ship report

Cover page:

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Table of content:

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Executive Summary:

NetBazaar is an e-commerce start-up company positioning itself to become the market leader in

offering online merchants and consumers a uniform and trouble-free way to return merchandise

purchased online. The company offers a business to consumer and m-commerce solution to

online merchants of physical, non-perishable products. The company utilizes a consolidation

approach in handling all product returns that allows online merchants to instantly save bad sales,

restore customer satisfaction and stimulate repeat sales, while offering consumers a convenient,

centralized online location to claim returns. By creating a new service category and utilizing the

first-mover advantage, NetBazaar positions itself for rapid growth and gains a strong opportunity

to raise entry barriers for possible competition.

Business description:

Name of business: NetBazaar, proposed to Banglalink as a new SBU.

Location:

We have decided to establish the headquarter of NetBazaar in Tigers' Den, House # SW(H)04,

Bir Uttam Mir Shawkat Sharak, Gulshan-1, Dhaka-1212, Bangladesh.

Business overview:

Electronic commerce, commonly known as e-commerce, is the buying and selling of product

or service over electronic systems such as the Internet and other computer networks. Electronic

commerce draws on such technologies as supply chain management, inventory management

systems, internet marketing, online transaction processing and automated data collection a

systems. Modern electronic commerce typically uses the World Wide Web at least at one point

in the transaction's life-cycle, although it may encompass a wider range of technologies such as

e-mail, mobile devices and telephones as well.

In 1979 Michael Aldrich invented online shopping.

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Net Bazaar is an electronic trading forum that enables anyone with cell phone to conduct

transaction through its online platform. It’s basically an e-commerce site like Cell Bazaar, Click

BD. Net Bazaar enables sellers to list details of their products, produce or even services in a

database while buyers can look for any information through SMS. It will not handle transactions,

but is simply put buyers and sellers in contact with each other via mobile phone or PC.

Bangladesh is densely populated country with a population of approximately 160 million where

95.53 million are mobile phone users, who can be the customers of this service including farmers

who can use the service to sell their harvest at fair market prices and struggling students that find

and connect with tutors.

Our Mission and Vision:

Our aim is to gain more expertise and confidence towards delivering quality and above par

services to our clients in order to achieve not only customer satisfaction but provide customer

delight. We pledge every time to achieve high levels of reliability, efficiency and performance of

our service. We will try to achieve maximum customer satisfaction through a continuous

feedback mechanism and continual improvement of systems of quality management.

We hope that we will be known for our ability to provide infrastructure and application

environments combined into a single package to meet in an integrated manner, the ICT needs of

our customers.

Objective:

To promote an online transaction services to the people of Bangladesh with a greater precision

and help Banglalink to increase size and reliability of the customers to a large extent.

Service Features:

Our project will provide a company and individuals to negotiate with other companies and

individuals regarding whatever they need to sale, purchase and auction their products and

services through online transaction process

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Our service will reduce capital expenditures of a company that uses their services, increase

customer service, increase sales opportunities, increase revenues, and improve inventory

management. Customers will benefit by having a convenient, easy way to return their purchases

as well as the ability to track their returns.

Business structure

The proposed business structure would be a SBU of Banglalink which is the second largest

cellular service provider in Bangladesh. As of April 2012, Banglalink has a subscriber base of 25

million

Business Operations:

In the first two months the main operational activities will be to secure funding, infrastructural

development and arrange legal requirements. In the following month the firm will go for

marketing campaign. At the fourth month it will run in full swing.

Source of Funding:

The projected value of NetBazaar. is estimated in total 1 core taka, in which 67 lakh taka will be

provided by the company itself and rest of the amount will be financed by the a private Bank.

67%

33%

Capital

EquityDebt

Figure 1 Capital Structure

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Product and service:

Net Bazaar is a user generated virtual marketplace, accessible by mobile phone or PC. Its main

activity will be focused on selling and buying new or used product to which a customer can

maximize his/her utility that will be conducted through SMS code and messages.

Buying and selling of new and used products:

Automobiles, Electronic products, home appliance, office appliance, home furniture, office

furniture, sports, eBook, agricultural products, tutor, pet, to-let solutions, real estate, IT solutions,

Industry products, Social sites, Job alert, servicing zone and other products.

.

In the part of Sellers use their mobile phone interface to post goods they want to sell. This

information is stored on the central server. The sellers have the ability to-

Post their selling item.

Change their item and update.

Delete their listed goods after sell.

Post blog.

Share information.

Rating buyers.

Share Articles.

Create groups.

Chat to desire persons

In the part of Buyers use the cell phone to search for the goods they want to buy. They have the

option of optimizing their search by-

Option of optimizing (price, brand, location).

Bookmark favorite items and return to them letter.

Add comment on the product.

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Ask for bargain.

Rating.

Chatting.

Blogging.

Net bazaar is a service where mobile phone used as a 24 hours electronic market place. It has

also some exclusive functions like social Blogging, chat with people, people can create group as

business group, student group, teachers group, share articles also customers can rate themselves

(buyers and sellers), who earned trust on buying selling process. In now people want faster

solution in their desired work and this Net Bazaar will provide faster way to do that any time

anywhere.

Business Environment:

Electronic commerce (e-commerce), or the conduct of commercial transactions over electronic

networks has been seen as a way of reducing hostility in the marketplace; this allows larger

volumes of transactions to take place, effectively expanding markets, but also opening up

entirely new markets allowing marketers (large and small) to use the Long Tail. In developed

economies, e commerce has taken the form of commercial transactions being facilitated over the

Internet, but recently has been extended to mobile networks as well, owing to their growing

ubiquity. In emerging economies poor Internet penetration and the lack of secure payment

mechanisms have slowed the growth of e commerce.

An electronic marketplace (e marketplace) operating in Bangladesh for the past two years, which

allows buyers and sellers to exchange information on products and services for selling, by simply

using mobile phones. There are various types of ICT-based applications which can be grouped

under the generic term “e marketplace” such as online auctions, trade leads, requests -for-quotes

and on-line catalogues. However, as this generalization could imply that all applications support

on-line buying and selling, and that transactions are actually completed online; as such, in this

paper, we use the term to denote any type of application which electronically supports

commercial transactions at any level.

While there exist a variety of similar e marketplaces operating in Bangladesh like Cell Bazaar,

Click BD. Main competitors are

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Cell Bazaar:

Bangladesh’s top mobile phone operator GrameenPhone, and USA-based Cell Bazaar have

introduced a service connecting buyers and sellers in an electronic marketplace over the mobile

phone. It’s like a more direct, more primitive e-Bay, a phone-based equivalent of newspaper

classified advertisements. The Cell Bazaar concept was developed at the MIT Media Lab by

Kamal Quadir and he later founded a company and established a partnership with

Grameenphone. The service enables sellers to list details of their products, produce or even

services in a database while buyers can look for any of this information through SMS. It will not

handle transactions, but is simply put buyers and sellers in contact with each other via mobile

phone or PC.A Brief Overview Cell bazaar is a user-generated virtual marketplace, accessible by

mobile phone or PC. Cell Bazaar works through SMS code and messages; users enter the code

3838 and can post items to sell or buy, as well as obtain market prices. This code can also be

used to hear marketplace postings through voice service, enabling users to browse by 8

categories: Jobs, Mobile Phones, Agriculture, Motorcycle, Car, Electronics, Computers, and To-

Let. Cell Bazaar is also WAP-enabled (Wireless Application Protocol), a “next generation”

mobile phone technology that provides a faster way of browsing the online marketplace. The

marketplace is also available online for anyone with a web browser.

Click BD:

ClickBD.com started its operations in April 14, 2005 as the first e-commerce portal in

Bangladesh. Click BD is an online marketplace where anyone can sell or buy almost anything.

The site has a strong and growing community of users who trade in a wide range of item

categories including Electronics, Cameras, Phones, Computers, CDs, Mobiles, Fashion

Accessories, Music, and Travel. Through a world-class technology infrastructure Click BD

enables & simplifies e-commerce for Bangladesh's ever expanding online community. People

spend more time on Click BD than any other Bangladeshi site, making it the most popular site of

the country. Click BD encouraged young generation to earn money from selling goods using the

power of the Internet.

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Net Bazaar differentiates them by providing extra facility like people can share their thoughts,

research paper with Net Bazaar members. There would be E-books for students, teachers can

create their community in it, share blog, chat with people like social networking, Rate

trustworthy customers. It’s a full package of site where people can get every desired item in just

a click.

People from all over Bangladesh will buy and sell on Net Bazaar. Currently, over 90% of all

listed items will sell on Net Bazaar, giving buyer and seller the convenience of online trading.

People come to Net Bazaar to buy and sell items in an array of categories from antiques, art, and

collectibles to practical items like used cars, mobiles, laptops, clothing, books, CDs, and

electronics. Buyers have the option to purchase items in an auction-style format or items can be

purchased at a set price through a feature called Fixed Price or by Bargaining Price. Net Bazaar

is the place to buy what people want, sell what they have, and make new friends while they are at

it.

Net Bazaar is creating a place where people can offer goods for sale and anyone in the world can

buy at a fair price. It will be a market of people, where their next-door neighbor can compete

with a large corporation and have an equal chance of success. It will be a place that constantly

adapts and improves to meet the needs of buyers and sellers. Trust, honesty and efficiency will

be rewarded. In the end, our market will be so large and open that people will be able to find

almost anything they can imagine. And every other way to buy and sell things will seem inferior.

Our customers are mainly mobile phone user in Bangladesh, who doesn’t have the opportunity to

sell their product in the market. Also main target customers are the young generation who are

very enthusiastic, rapid in their work.

Industry Background of E-Commerce:

 

E‐commerce or electronic commerce is the conduct of financial transactions by electronic means.

With the huge success of commerce on the Internet, e‐commerce usually refers to shopping at

online stores on the World Wide Web, also known as e-commerce Web sites. Electronic

commerce or ecommerce is a term for any type of business, or commercial transaction that

involves the transfer of information across the Internet. It covers a range of different types of

businesses, from consumer based retail sites, through auction or music sites, to business

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exchanges trading goods and services between corporations. It is currently one of the most

important aspects of the Internet to emerge. E-commerce allows consumers to electronically

exchange goods and services with no barriers of time or distance. Electronic commerce has

expanded rapidly over the past five years and is predicted to continue at this rate, or even

accelerate. In the near future the boundaries between "conventional" and "electronic" commerce

will become increasingly blurred as more and more businesses move sections of their operations

onto the Internet. Electronic commerce generates competition, revenue and profit. It also creates

flows of goods and services and hence traffic. Subsequently, it can act as an incentive for

investors to finance locally available infrastructures, connectivity and bandwidth. However,

before this virtuous circle can be initiated, the magic triangle access, trust and know how an

essential precondition for the start up and expansion of electronic commerce, must be firmly

established between both the public and the private partners involved. This magic triangle can

only be set in place if it receives the full and active support from the various stakeholders.

Types of E‐Commerce:

 E‐commerce is the process of buying and selling of various products and services by businesses

through the Internet. It deals various kind of business concern, from retail site of  the consumer,

Which includes auction. The main focus is to concentrate on business substitutes involving

goods and services between various corporations. There are primarily five types of e‐commerce

models.

 

Business to Consumer (B2C):

B2C stands for Business to Consumer as the name suggests, it is the model taking businesses and

consumers interaction. Online business sells to individuals. The Basic concept of this model is to

sell the product online to the consumers.B2C or Business to Consumer has lately gained a big

popularity due to simplify an accelerated way to buy products. B2C is the indirect trade between

the company and consumers. It provides direct sale through online. For example: if you want to

sell goods and services to customer so That anybody can purchase any products directly from

supplier’s website. Directly interact With the customers is the main difference with other

business model. As B2B it manages directly relationship with consumers, B2C supply chains

normally deal with business that are related to the customer.

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Business to Business (B2B):

B2B stands for Business to Business. It consists of largest form of e-commerce. This model

defines that Buyer and seller are two different entities. It is similar to Manufacturer is issuing

goods to the retailer or wholesaler. Dell deal computers and other associated accessories online

but it is does not make up all those products. So, in govern to deal those products, first step is to

purchases them from unlike businesses i.e. the producers of those products.

Peer to Peer (P2P):

It is a discipline that deal itself which assists people to instantly shares related computer files and

computer sources without having to interact with central web server. P2P sometimes unified with

e-commerce type C2C because of the same parties participating in the transaction. Though it is

distinguished by the process itself P2P is not only an e-commerce type but also a technology that

allows people to share computer files and computer resources without going through a central

web server. The required software should be installed by both sides so that they can

communicate on the common platform.

M-Commerce:

M-commerce (mobile commerce) is the buying and selling of goods and services through

wireless handheld devices such as cellular telephone and personal digital assistant (PDAs).

Known as next generation e-commerce, m-commerce enables users to access the internet without

needing to find a place to plug-in. It deals with conducting the transaction with the help of

mobile. The mobile device consumers can interact each other and can lead the business. Mobile

commerce involves the change of ownership or rights to utilize goods and related services.

Consumer to Consumer (C2C):

C2C stands for consumer to consumer. Consumer to consumer (C2C) (citizen to citizen)

electronic commerce involves the electronically facilitate transactions between consumers

through some third party. A common example is the online auction, in which a consumer post an

item for sale and other consumers bid to purchase it, The third party generally charges a flat fee

or commission. The sites are only intermediaries, just there to match consumers. They don’t have

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to check quality of the products being offered. It helps the online dealing of goods and services

among people. Though there is no major parties needed but the parties will not fulfill the

transactions without the program which is supplied by the online market dealer.

Now a days can use of technology in each and every sector has been common. In this era of

globalization, we can hardly find any sector operating without easy technology. So there is no

doubt and it is quite natural that business world will also use technology effectively as well as

efficiently and take the greatest advantage which is offered by technology. A new horizon has

been open up for trade and commerce namely e-commerce by none other than one and only

internet. E-Commerce entitles the use of the internet in the marketing identification. Payment

and delivery of goods and services all are done by e-commerce using internet. So there is a

possibility for future growth in this sector which is fragmented one. The factors that can

contribute to future growth is the technology system that is advanced and pretty useful to people.

In addition internet users are on the increase on sharp rate and people will feel convenient doing

online transaction rather than moving here and there. Only a few of the companies are providing

the people with the facility and from our point of view, it still inadequate. It’s our belief that still

there are so many space to serve with a greater extent.

SWOT Analysis:

ClickBD.com

 Strengths:

 

1. ClickBD’s image as the first e-commerce portal in Bangladesh.

 

2. World class technology infrastructure which enables and simplifies e‐commerce for BD’s

ever expanding online community.

3. Targeting people who are interested to do as well as already doing online business by

launching ClickBD Online Stores.

 Weakness:

1. They are not a part of any large organization.

2. Their promotional activity is pretty minimal

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CellBazaar:

Strengths:

1. First one to bring the concept of mobile dealing.

2. Partnership with the largest telecom company.

3. Attractive web design.

Weakness:

1. Lack of awareness about the site, very small number of people from rural area know

about the activities of the organization.

2. As a pioneer, they have not created enough space on peoples mind

Bikroy.com

Strength:

1. Strong network in the whole country.

2. Home delivery.

3. Strong branding and promotional activities.

Weakness:

1. They don’t have many option to choose from under the sub categories for example the

CDs, they are trying to sale are three to four years old and the lack with the latest product.

2. Unattractive web design, Lack of creativity.

Porter’s five forces:

Porter’s Five force Model of E‐ Commerce Industry

Porters five forces model can be applied in the e- commerce arena of Bangladesh.

 

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Threat of New Entrants (High):

 

Since the e‐ commerce market has no entry barriers from the government or technological

perspective, it is very attractive for other firms to enter into this market. Also, the nature

of Business itself does not have any cost, so it is hard to achieve or realize the economies

of scale. As we know, the technology is improving every second or even minute, which means

people can create a website in five minutes. Therefore, the threat of new entrants is very high.

 

Rivalry among Firms (Low):

 

The rivalry intensity in Bangladesh can be classified as very low, as we can see that there are

only few firms that are generating revenues, there are many opportunities due to the Few

competitors in the market. The amount of  the firms is still insufficient when we Compare with

the population or the Internet user in Thailand. Also, when we think about the e‐commerce

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market, we have to think more globally because the consumers Are everywhere all around the

world. Since there is not much competitions in the strategic Group (one is leader and others are

follower; like Clickbd, Akhoni.com, Bdjobs are the market leader), the rivalry among firms are

still low.

Bargaining power of supplier (low):

Human resource is the main supplier in the e-commerce market they need a web site to be

created by someone or buy a solution package. Therefore in the technological age, the bargaining

power of this suppliers, I,e programmers are very low because they can outsource to all around

the world.

The other supplier to the e-commerce industry is the host who provides the space, for the

websites on the internet. They are thousand of host who provide the spaces, and they are not

concentrated, therefore each website don’t have stick with the same host.

Bargaining power of Buyers (moderate):

In the internet market, the environment would be the same as the brick and motor stores.

However, the customers have high bargaining power because they can choose any shop in the

internet world wide. Also, they can substitute the place for the transaction to the offline market

as well. Fro example in the web site like ClickBd and CellBazaar often the buyer exert their

bargaining power.

Threat of substitute:

There is no technology that can substitute the internet so far in the market. Even analog signal

that use to send the Television or Radio signal are not the main threat. The main substitute that

exist is the break and motor stores, which they can change or move their place to be on the

internet. Therefore the e-commerce industry has low threat of substitutions.

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Marketing Strategy of competitors:

CellBazaar, ClickBD and bikroy .com do their marketing through

Television Ad

Sticker

Booklets

Billboard

KEY SUCCESS FACTORS

This section examines key success factors for the emergence of CellBazaar in Bangladesh,

particularly as a marketplace capable of conducting electronic transactions through simple

communication technologies such as SMS, a feature that sets it apart from many other e

marketplaces available.

High mobile penetration but low internet penetration: GP get this benefit, because

Bangladeshi rural people are less known to internet than mobile.

Affordable SMS price: They are also priced their product which is affordable to their

customer

Advertising: All existing e-commerce industries advertising is overall good.

Exclusively partnered with strongest operator (GP): CellBazaar have strong partner like

GP. So they have strong chance to achieve great brand value.

Market Share: CellBazaar and ClickBd is the first e-commerce industry and coming each

by new concept that’s why their market share is large than other

Security: All e-commerce industry provide greater security to their customer by keeping

their information safe.

Entrepreneurial culture: They are growing consciousness among people by easing their

selling and buying process.

Product Quality.

Financial Position

Customer Loyalty

National Expansion

Market Analysis:

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In Bangladesh there are approximately 5000 professionals engaged in the ecommerce industry

and the size of Bangladesh e-commerce market has been estimated to be more than TK. 300 core

in a year. E--commerce in Bangladesh growth rate is approximately 6%. E-commerce market is

increasing day by day in our country. Government wants to digitalize every sector in our

country. So it has a great influence in the field of e-commerce market. On top of that, youth are

very much enthusiastic on online trading. Mentioned above information implies that e-commerce

market in Bangladesh is growing fast. At present, though our gather information is showing that

it is a niche market in our country but it can be turn into mass market in near future. Of course, it

is a great opportunity for us to penetrate in this market and by the way the market will expand.

So, we reckon that there is a potential demand our service in this market.

Our target market is the divisional cities and district towns throughout the country. From this

target market our target customers are exclusively BanglaLink users. Besides, other people can

access our site and can take their necessary service from our e-commerce site. Our target

customers have some mentionable characteristics such as they have their cell phone, have

eagerness to sell or buy in online market, intention in early transaction.

Target marketing: We basically target all customers of Banglalink and young generation who

usually use the internet like WEB, WAP etc.

Geographical Segmentation: under the geographical segmentation we would like to offer our

services to nationally, cities and suburban.

Nationally: People of Bangladesh.

City: 7 divisional cities of Bangladesh.

Suburban: 65 district towns of Bangladesh.

Demographic Segmentation: we want to segment our target market based on age, income level,

occupation, education and so forth.

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Age: we want to provide our service especially to the following age 18- 50 years. But the people

who are below 1 8 years can access our site with the help and consent of their guardian. Again

people above 50 years can use our site according to the necessity. Actually our intention is not to

deprive others from taking our services and omit their needs.

Income Level: we want to provide our service to them whose income is ranging from 1000 to

200,000 or more.

Occupation: we offer our service to students, service holders, businessman, and farmers and so

on.

Education: people who have the basic knowledge about our service and who are able to use our

site to perform their necessary transactions.

Behavioral Segmentation: Behavior is the science of using psychology and demographics to

better understanding consumers. Behavioral segmentation: consumers are divided according to

their lifestyle, personality, values and social class.

Social Class: people who use our site would be from middle class (low cost product such as,

necessary goods, and farmers’ products), upper middle class (TV, fridge, mobile phone and so

on), upper class (Car, Smart phone, LED TV and so forth).

Values: People who have positive image on online trading and willingness to trade on online

marketplace.

We reckon our provided service add more value and can solve the problem of our customer than

our other competitors with similar offering. Because first of all our customers do not face any

kind of access barrier in our site. We make it very simple for our customer .They can access our

site through internet, EDGE Enabled Handset as well as cell Phone SMS process. On top of that

customers can access our site by registering a unique number (161971) from any

operator .whereas customers can not access same site of our competitors because they requires

internet connections, EDGE cell phones, same operator (e.g. cell Bazaar- can access only

Grameenphone operator).That is why customer show eagerness in using our site for their

necessary transactions. Moreover customer can provide their necessary comments like

transactions experience, make customer fan club, etc which provides right to customer to express

own feelings, can chat with their dear and near ones ,finds their friends in our site which enables

them create social network. It is not possible in case of other same service offering e-commerce

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site. Customers can use our site solely to chat with their friends. The ideal value proposition ours

is to make our site commodious and enjoyable towards our customers; lessen customers all

probable problems as well as we hope by using our site customers can easily differentiate our e-

commerce site from our competitors which would most attractive easy using for them and also

helps them choosing.

Our company’s value proposition would be “Market is next to you”.

Sales and Marketing Plan

NetBazaar Selling Procedure

  

Using SMS, WAP technology or the Internet, buyers and sellers can find each other at

NetBazaar. A farmer can easily sell his or her products by sending simple text messages, just as a

Teacher can offer his or her services. Users pay only the standard SMS or GPRS charges for

accessing the service, and there are no monthly fees only posting fees for selling. It works on 4

synchronized platforms:

 

SMS

 

SMS (Short Message Service) has been phenomenally popular since its introduction in

Bangladesh. NetBazaar leverages the simple, widespread power of SMS to bring the market to

your phone. By sending simple text messages to 1111, one can post items for sale, look for items

to buy, and obtain current market prices of products or services.

 

WAP

 

WAP (Wireless Application Protocol) is the next generation of mobile phone technology. 50% of

all mobile sets in Bangladesh are already WAP enabled, and this number is growing rapidly.

WAP provides an even faster experience as you browse a simple graphic menu to access the entire

marketplace.

 

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WEB

 

WEB version shows the entire market at a glance on computer screen. Anyone with internet

access can browse the market, and post items for sale. Items posted by WEB, WAP or SMS are

instantly visible to users of any platform. WEB platform also makes the local mobile based

market available to an international audience.

 

VOICE

 

Any Banglalink users can dial 1111 and listen to the latest items on the market in Bengali. After

dialing 1111, users choose from those categories: Jobs, Mobile Phones, Agriculture, Motorcycle,

Car, Electronics, Computers, and To-Let. Every few hours, users will hear new information

through this service.

Most services like NetBazaar that work over SMS operate with premium SMS pricing. Premium

SMS refers to SMS for which users pay a premium over standard messaging costs, with the

revenue shared between service provider and telecommunications operator.

Some development projects pay the premium themselves rather than making users pay, but in

either case, a premium is charged by telecommunications operators. SMSs sent to NetBazaar

cost a user the same price as a standard SMS. Banglalink, NetBazaar's partner, shares a percentage

of the messaging revenue with NetBazaar. NetBazaar also gets revenue from users that access its

WAP and voice services similarly another source of revenue that services do not usually access.

Of course, this revenue sharing model would not be possible without a strong partnership with

Banglalink, Net Bazaar 's only core partner.

Sales & Marketing Plan:

Target marketing: We basically target all customers of Banglalink and young generation who

usually use the internet like WEB, WAP etc.

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Why people use our site: We provide some extra feature like sellers rating, social site (Chat),

job alert, career guidelines, E-Book etc. People can find everything what they want from e-

commerce they have not to search another site. Our human nature like is that we want everything

in one place if we get and our servicing also low. Our site also design for friendly using there all

indication will be given where they can find what we also provide pop up message for the users

which help them to find what they want.

Human Resource Planning: We need one marketing executive and also one marketing officer

and two sales executives who will work under the marketing executives. Sales executives and

marketing officers help the executive in promotional activity.

Others Promotional Activity: We also do other promotional activities like Direct E-mail, direct

messaging, pop up advertisement on the other site etc.

Markwting Mix: This section will describe about how we will reach to our customer by our

product. It also talk about what is our product, how we will place it, how we will price product

and our promotional activity.

Marketing Executive

Marketing Officer Sales Executives

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.

Product: We provide basically service and helping our customer by providing them facility to

bring them together in a place. We help the customers to get his products appropriate price and

also fresh product by clear bargaining among seller and buyer where seller and buyer directly

bargain with each another. We also provide social facility like chatting, blog sharing etc. We

describe our all product below. Those who want to take voice call information or message alert

they have been charged for message or call.

To-Let solution: We help them by providing to let solution like if anyone post in our site for To-

Let then we send email, message who want to rent then we charge price from them it will be

charged 200 from each party if he post in our To-Let blog

Automobiles: People can also buy or sell their product like car, motorcycle, heavy vehicles,

motor parts, bus , microbus etc by giving advertise in our automobile blog.

Real Estate: This also work when buyer and seller post in our real state blog then we also do

sending message to both party and we help them to contact but we charge seller.

IT solution: We also provide IT solution also like internet provider give Ad in our blog then we

charge from them for advertising. In this blog, people can also give post for selling computer and

its parts, modem etc. IT related product. We charge 5tk for each second hand product.

Promotion

Price

Place

Product

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Industry product: Garments product, imported product etc all industrial products advertisement

can give in this blog we charge .5% from products total value. There seller must be note about

his/her products quantity and amount

Social site: This site is free for all register customers where they can share their thought. They

can also provide their writing who got more like in two months then we will publish this in the

newspaper.

Job Alert: People may also get job alert from this blog but for getting this they have to pay extra

service and its amount is 10 Tk only

Servicing Zone: Its one zone where service provider can give their Ad and can get the customer

through it. Ad also be charged 50Tk

Pet: People can also get pet like dog, cat etc. because pet seller can also give their Ad in this

blog

Tutor: People can also get tutor alert through registration.

E-book: People can also get E-book facility through the specific charge of this book.

Agricultural products: Farmers can also sell their product through registration, other ad and

post is free we give this facility to promote to use Banglalink and Agriculture.

Electronic Product: People can sell and buy the new product and second hand electric product

by posting their but charge will be different in case of new and old. Electric products like TV,

Fridge and AC etc.

Other Products: In this blog they can give post for other products which is not fall above

categories.

Place:

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Target marketing: We basically target all customers of Banglalink and young generation who

usually use the internet like WEB, WAP etc. We also provide fast, easy website which swiftly

finish the task.

Distribution Channel:

Price:

Product list Price list

To-Let solution 100 Tk

Pet 50 Tk

Tutor 10 Tk

Agricultural products Free (SMS charge only)

Electronic Product 0.5% (Total amount New) and 0.3% (Old)

Other Products 5 Tk

Real Estate 500 Tk

IT solution 50 Tk

Industry product 100 Tk

Social site Free

Job Alert 10 Tk

Services Consumer

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Servicing Zone 10 Tk

Automobiles 1000 Tk

Promotion:

Television Advertising: Television advertising is the main strategy for attracting the market. We

have also plan to expand into all rural, suburban and urban area that’s why we telecast our Ad in

most popular NTV and BTV. We select BTV for rural area people where satellite connection

doesn’t exist.

Booklet: Booklet also another way to promote our product so we decide to provide booklets in

the Schools, Colleges, Universities, Local markets and mosques etc. where all the information

and instructions have been given.

Radio Ad: Now FM radio is becoming most popular that’s why we have to focus on this section

and we will also broadcast radio ad

Sticker: We also print sticker to stitch on the vehicles glass ( Bus, Car, Microbus, CNG etc),

saloon, hotel etc.

Billboard: Billboard is another attractive way for marketing because large billboard draw

attention of people. So we decide to place the billboard in the urban area where dense people live

like Dhaka , Chittagong and Sylhet etc.

Research and Development:

HTML: HTML is a simple, universal mark-up language that allows Web publishers to create

complex pages of text and images that can be viewed by anyone else on the Web, regardless of

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what kind of computer or browser is being used. All you really need to create Web pages is a

simple text editor and a basic understanding of HTML.

Figure 2: Basic Structure of a HTML Page

CSS: The technology behind style sheets is called CSS, which stands for Cascading Style Sheets.

CSS is a language that defines style constructs such as fonts, colors, and positioning, which are

used to describe how information on a web page is formatted and displayed. CSS styles can be

stored directly in an HTML web page or in a separate style sheet file. Either way, style sheets

contain style rules that apply styles to elements of a given type. When used externally, style sheet

rules are placed in an external style sheet document with the file extension .css.

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Figure 3: Layout Techniques in CSS

JavaScript: JavaScript is a client-side scripting language for web pages. It can include

JavaScript commands directly in the HTML document, and the script will be executed when the

page is viewed in a browser.

Figure 4: JavaScript Alert PopUp Message

jQuery: jQuery is a coding language that is a branch from JavaScript. jQuery works like

JavaScript where its used to help with interaction and effects with your development code.

jQuery hasn’t been around very long, it was release in January 2006 and only on version 1.4.0.

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jQuery is a new and exciting technology that is catching on quickly and making the internet more

interactive and enjoyable.

The best featuring for jQuery is the effects you can accomplish, with less code than what it

would take with JavaScript. Most common jQuery effects are drop down menus, drag and drop

elements, animations and form validation. Developers have also connected this with other coding

languages like JSP, ASP, PHP and CGI.

MySQL: Database programs have many different methods for storing and retrieving data, as

well as for organising the stored data on the computer. One popular way for accessing data, both

to store and to retrieve it, is to use a computer language called "SQL" (often pronounced as

"sequel"). SQL was specially designed for database access. There are many databases that

support the use of SQL to access their data, among them MySQL.

PHP: PHP is a programming language that you can use to write Web applications. A Web

application can be anything from a simple "contact us" form through to a fully-fledged blogging

system, online store, or forum system.

It runs on the Web server. Most Web programming languages are server-side, but some, such as

JavaScript, are client-side, which means they run on the Web browser. Server-side languages

give you more flexibility as they can do many things that are hard to do with JavaScript — for

example, working with files and databases, or manipulating images. That said, JavaScript is

coming along in leaps and bounds these days (as these examples show).

Ajax: Ajax (sometimes called Asynchronous JavaScript and XML) is a way of programming for

the Web that gets rid of the hourglass. Data, content, and design are merged together into a

seamless whole. When your customer clicks on something on an Ajax driven application, there is

very little lag time. The page simply displays what they're asking for. If you don't believe me, try

out Google Maps for a few seconds. Scroll around and watch as the map updates almost before

your eyes. There is very little lag and you don't have to wait for pages to refresh or reload.

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Database Architecture: Privatevarsity.com is using relational database. A relational database is

a system in which data are stored in tables of rows (records) and columns (fields). The defining

characteristic of a relational database is that the full data set is broken down into multiple tables

(each representing a single subject) and that relationships can be established between those tables

through the use of key fields. Structured Query Language (SQL, sometimes pronounced

"sequel") is used to manipulate the data.

Payment Process: For generating money Privatevarsity developing some payment option for

their user. Those will be launch in future. In those option include Paypal Integration, Recharge

Card, Pay through SMS (from Grameen Phone & Airtel).

Overall Network Architecture: The entire network which will be responsible for the proper

execution of this current website is shown in the following diagram:

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Server Configurations: Privatevarsity is using VPS server that using X2 Linux and other server

configuration in below:

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1x CPU Cores 10GB Storage

384MB Guaranteed RAM 2 Dedicated IPs

500GB Data Transfer Self-Installed Control Panel

Figure 11: Web Server Control Panels

Server Security: Privatevarsity had domain security scanning, a new feature that scan all sub-

domain name and detect any malware infection on index web file. Once the virus or malware

being detected, security team will remove those security threats.

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WhoisGuard: Its protected accurate contact information from public database called the

"WHOIS" database.

SSL Certificates: SSL certificates installed on Private varsity web server. Therefore, an end-to-

end SSL installation support is possible.

Operational Plan:

Operational plan implies that how an organization runs its business and implement its strategic

plan. For this first of all we would like to set our business location at Gulshan, close to our

mother business organization Banglalink Headquarters. Then we set up server which is very

important to operate our e-commerce business. Again we will purchase computer, furniture and

other necessary equipments that necessary for our e-commerce business. We reckon that those

server, website and equipment would be handy to run our business properly and to provide best

services to our customers.

Our e-commerce site remains open 24/7 for our customers. For this we use high efficient

technology and skilled workforce.we introduce every time new technology to support our

operation. Because high speed server and technology is essential for proper operation and to

provide best facility to our customers.Again to run our e-commerce site more smoothly we

establish highspeed server in the prime location of every divisional cities and district towns.

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NetBazaar.comSeller

From All over the Bangladesh

BuyerFrom All over the

Bangladesh

Buyer Seller

Goods

Delivery PointDelivery Point

NetworkingIMFiles Sharing

Rating Each Other

Another important element for proper operation of our e-commerce business is geographical

location. Our e-commerce business is customer centric business. So ,we want to run business

operation where our customers are available. Because if we operate business such geographical

location close to our customers.as a result our e-commerce site would be quickly familiar to our

customers and they show enough interest to perform transactions by using our site.

Our business is web related so, we need workforce who are skilled in server operation, website

design, search engine optimization and skilled in software development. So to run our operation

properly we appoint skilled workforce.

We charge prices for our customers only when they place an ad in our site and people who

access our site need to register.

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Monthly Rate for Advertisement

For Local and Foreign Clients

Location Size (width & Height in Pixel)

Total Pixel Rate in TK Total Amount (per Month) TK

Home Banner 1 315×60 18900 5tk 94500Home Banner 2 315×60 18900 5tk 94500Top Banner 473×75 35475 6tk 212850Middle Banner 468×70 32760 5tk 163800Right Panel 1 300×57 17100 5tk 85500Right Panel 2 300×57 17100 5tk 85500Right Panel 3 300×57 17100 5tk 85500Right Panel 4 300×57 17100 5tk 85500Left panel 1 280×60 25200 5tk 126000Left panel 2 280×60 25200 5tk 126000Left panel 3 280×60 25200 5tk 126000Left panel 4 280×60 25200 5tk 126000Spot Banner 1 468×70 32760 3tk 98280Spot Banner 2 468×70 32760 3tk 98280

Management Summary:

Business Model and Structure:

The company plans to locate its headquarters in a metropolitan area that can provide access to a

large pool of high-tech labor force, current e-commerce intelligence, and sources of financial

capital. The location should ensure the best logistics when reaching existing and potential

clientele, as well as strategic partners. Operations in which the company cannot develop core

competencies should be outsourced. A close proximity to outsourcing companies should be

maintained. The headquarters will initially host the entire executive team, sales force, and staff.

As company progresses through its growth stages, sales regions will be assigned for various parts

of Bangladesh and either in-field sales representatives are placed or distributors assigned.

Presently, NetBazaar will be going to be headquartered in Gulshan 01, Dhaka.

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Organizational Structure:

Those activities that are not crucial to the corporate success (i.e. payroll) will be outsourced or

subcontracted. Below are brief summaries of major responsibilities for corporate officers.

Managing Director: oversees the overall strategic direction and progress of the

company. Specific areas include operational soundness, financial stability, and long-term

well-being of the corporation.

Chief Executive Officer: the main responsibility is to maintain a strategic fit between the

corporate resources and external factors. Responsibilities include running of the overall

day-to-day operations, technological and operational soundness, and financial stability.

Director of Finance and Operations: responsibilities include financial oversight,

safeguarding of assets, and human resources management.

Director of Information Technology: responsibilities include overall technological

efficiency, software development, and information control.

Director of Sales and Marketing: responsibilities include sales generation, marketing

programs development, and public relations.

Organizational Chart:

Managing Director

Executive Of IT

IT Officers

IT officers

Executive of Finance

Executive of Marketing

Sales Manager

Marketing Officer

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Financial Plan:

The statements incorporate two rounds of venture capital investments of 9000000 total, plus

access to additional 200000 for cash flow purposes. The statements do not include any funds

raised during the proposed IPO. Any revenues from advertising, affinity, consulting, and

partnership programs were omitted. Year-end is December 31.

Projected Cash Flow

The following chart shows monthly cash balance and cash flow. The table shows the expected

cash flow for the first twelve months of operation, with yearly estimates thereafter. Capital

expenditures include computer equipment and technology & software investment:

Computer Equipment: represents 20% of the current fixed corporate costs. In 2013, it

represents 1500000 from the fixed corporate costs.

Technology & Software Investment: represents 60% of the current fixed technology

costs. In 2013, it represents the 5000000 of the fixed technology costs.

Pro Forma Cash Flow:Year 1 Year 2 Year 3

Cash ReceivedCash from OperationsCash Sales 5000000 8000000 12000000 Cash from Receivables 0 0 0 Subtotal Cash from Operations 5000000 8000000 12000000 Current Borrowing 300000 600000 1000000 Other Liabilities (interest-free) 0 0 0 Long-term Liabilities 1000000 1000000 1000000

Personnel Plan

Year 1 Year 2. Year 3

All Departments 10,000,000 $1,960,000 $4,105,000

Other 0 0 0

Total People 5 40 80

Total Payroll 10,000,000 1,960,000 4,105,000

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Sales of Other Current Assets 0 0 0 Sales of Long-term Assets 0 0 0 New Investment Received 400000 800000 1000000 Subtotal Cash Received 6700000 10400000 15000000 Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending 2000000 4000000 6000000 Bill Payments 300000 700000 1000000 Subtotal Spent on Operations 2300000 4700000 7000000Principal Repayment of Current Borrowing

300000 600000 1000000

Other Liabilities Principal Repayment 100000 200000 300000 Long-term Liabilities Principal Repayment

0 0 0

Purchase Other Current Assets 100000 200000 300000 Purchase Long-term Assets 5000000 1000000 1000000

Subtotal Cash Spent 7800000 6700000 9600000 Net Cash Flow (1100000) 3700000 2400000

Break-even Analysis

The following table shows our estimated monthly break-even point to be approximately Tk. 102000.

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Break-even Analysis

Monthly Revenue Break-even 102000

Assumptions:

Average Percent Variable Cost 0%

Estimated Monthly Fixed Cost 102000

A calculation of the sales volume (in units) required to just cover costs.  A lower sales volume

would be unprofitable and a higher volume would be profitable.  Break-even analysis focuses

on the relationship between fixed cost, variable cost (or cost per unit), and selling price (or

selling price per unit).

Fixed Costs

Cost that do not change when production or sales levels do change, such as rent, property tax,

insurance, or interest expense.  The fixed costs are summarized for a specific time period

(generally one month).

Variable Cost (Per Unit Cost)

Variable costs are costs directly related to production units.  Typical variable costs include

direct labor and direct materials. The variable cost times the number of units sold will equal

the Total Variable Cost. Total Variable costs plus Fixed costs make up the total cost of

production.

Selling Price (per unit price)

The price that a unit is sold for. Sales Tax is not included the selling price and a sales tax paid

is not included as a cost.  The Selling Price times the number of units sold equals the Total

Sales.

Break Even Point

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The sales volume (express as units sold) at which the company breaks even.  Profits are $0 at

the breakeven point.  The breakeven point is calculated by the following formula: Break Even

Point = Fixed Costs / (selling price-variable costs).

Time Period

The fixed costs are summarized for a specific time period.

The per unit variable cost is not dependant on a specific period of time.

The per unit selling price is not dependant on a specific period of time.

The Break Even Point is expressed the number of units, over a specific time period

that must be sold to obtain a Net Profit of $0.  The time period the units must be sold is

always the same as the time period of the fixed costs.

Typically the time period is monthly; however it could be Yearly or even Hourly.  For

example, a farmer seeking the break even on an annual corn crop would choose a yearly time

period. The farmer would add up the fixed costs for the whole year and the break even sales

volume would be expressed as a yearly sales volume.

The text that is written in the time period field is copied to the title of the Break Even Graph

and Break Even Report.  If you leave the field blank then nothing will be copied.

Break Even Calculation:

Assume the following:

Fixed Costs:Monthly Rent 100000Insurance (24000 per year 24000/12 months = 2000) 2000

Total Monthly Fixed Costs 102000

 

Variable Cost:Materials 5Labor 7

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Total Variable Cost 12

  Selling Price: 25

Break Even Point CalculationBreak Even Point = Fixed Costs / (selling price - variable costs)Break Even Point = 102000 / (25-12)Break Even Point = 102000 / 13Break Even Point = 7846

To break even the company must sell 7846 units per month.

If the Company just broke even, then its Profit and Loss Statement would look like the following:

Monthly Profit and Loss StatementSalesGross Sales (25 per unit times 7846 units) 196150Less Cost of Goods Sold (12 per unit times 7846 units) 94152

Net Sales 101998 Or 102000

ExpensesRent 100000Insurance 2000

Total Expense 102000Net Profit 0

Projected Profit and Loss:

The table below shows the profit and loss statement for NetBazaar. The itemized costs for fixed

technology, corporate and advertising are reflected in the sales and marketing row in the table:

Fixed Technology Costs: represents a percentage of revenues allocation for all fixed

computer and Internet-related developments and charges. In 2013, Tk. 2000,000 is

allocated for the proprietary software development, Tk. 1000,000 for the website design,

and Tk. 500,000 for systems integration.

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Fixed Corporate Costs: represent a percentage of revenues allocation for all fixed

corporate cost associated with office related charges. In 2013, Tk. 600,000 is allocated

for initial sales force hire, Tk. 500,000 is allocated for hiring and training expenses, and

another Tk. 450,000 is allocated for the office setup and purchase and lease of necessary

computer equipment and infrastructure.

Advertising: represents a percentage of revenues allocation for advertising in all media.

In 2013, Tk. 2000,000 is allocated for the industrial marketing campaign. In the

subsequent years, the much larger budgets include allocations for TV, Newspaper,

advertising.

Sales & Marketing: represents a percentage of revenues allocation for marketing and

selling activities, including commissions paid on sales. In 2013, Tk. 1000,000 is allocated

for the initial sales and marketing related activities.

Research and Development: represents a percentage of revenues allocation for R&D

activities. In 2013, Tk. 350,000 is allocated for testing and fine-tuning of the computer

systems and programs.

General & Administrative: represents a percentage of revenues allocation for expenses

associated with running a corporation. In 2013, Tk. 200,000 is expensed against the

initial set-up, legal and accounting fees, etc.

Depreciation: represents a depreciation on all capital investment; straight-line

depreciation over 25 years.Pro Forma Income Statement

Year 1 Year 2 Year 3Sales 5000,000 8000,000 12000000 Direct Cost of Sales 2200,000 2300000 2700000 Other 200,000 200000 300000 Total Cost of Sales 2400,000 2500000 3000000Gross Margin 2600,000 5500000 9000000Gross Margin % 52% 69% 75% ExpensesPayroll 1000,000 1100000 1500000Sales and Marketing and Other Expenses

1000,000 1200000 1400000

Depreciation 100,000 100000 100000 Research & Development 350,000 400000 500000 Payroll Taxes 150,000 165000 225000Other 100,000 115000 125000 Total Operating Expenses 2700,000 3080000 3850000Profit Before Interest and Taxes (100,000) 2420000 5150000 Interest Expense 200,000 220000 250,000Taxes Incurred 0 330000 735000Net Profit (300,000) 1870000 4165000 Net Profit/Sales 0.00% 23.38% 34.71%

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Projected Balance Sheet

The Balance Sheet shows solid growth in both sales and net worth.

Pro Forma Balance SheetYear 1 Year 2 Year 3

AssetsCurrent AssetsCash 1000000 2000000 3000000Accounts Receivable 0 0 0 Other Current Assets 100000 1500000 2000000 Total Current Assets 1100000 3500000 5000000Long-term Assets 5000000 5000000 5000000 Accumulated Depreciation 100,000 100000 100000 Total Long-term Assets 5100,000 5100000 5100000 Total Assets 6200,000 8600000 10100000 Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable 500000 1000000 1500000Current Borrowing 300000 600000 1000000 Other Current Liabilities 100000 200000 300000Subtotal Current Liabilities 900000 1800000 2800000 Long-term Liabilities 1000000 1000000 1000000Total Liabilities 1900000 2800000 3800000 Paid-in Capital 4300000 6000,000 6300000 Retained Earnings 0 0 0 Total Capital 4300000 6000000 6300000 Total Liabilities and Capital 6200000 8600000 10100000

Business Ratios

The following table presents important business ratios for the business services industry, as

determined by the Standard Industry Classification (SIC) Index code 7389, Business Services,

nec (not elsewhere classified).

Ratio AnalysisYear 1 Year 2 Year 3

Net Profit Margin (-300000/5000000) = -6% (1870000/8000000)=23.38% (4165000/12000000)=34.71%

Return on Asset (-300000/6200000) = -4.84% (1870000/8600000)=21.74% 4165000/10100000)=41.24%

Return on Equity (-300000/4300000) = -6.98% (1870000/6000000)=31.16%(4165000/6300000)=66.11%

Current Ratio (1100000/900000) =1.22 (3500000/1800000)=1.94 (5000000/2800000)=1.79

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ROI (-300000/6000000) = -5% (1870000/7000000)=21.71% (4165000/9000000)=46.28%

Net Income Margin: This ratio measures net income per dollar of sales; it is computed by

dividing net income by sales. In year one Net Bazaar had earned net income margin of (6%) after

all costs and expenses including interest, taxes had been deducted. In year two and three it was

respectively 23.38%, 34.71%.From the above result we observe that net profit margin There was

some percentage of profit for the shareholder. From 2009 to 2011 net profit went positive. There

were some incentives for the shareholders.

Return on Asset (ROA): The ratio of net income to total assets; provides an idea of the overall

return on investment earned by the firm. This ratio is computed by dividing net income by total

assets. In 2009 ROA was 8.95% which shows effectiveness of management in generating profits

with its available assets. In 2010 and 2011 it was respectively 9.39%, 9.93%. As well as from

2009 to 2011 there were negative profit; firm could generate profits with its available assets.

Return on Equity (ROE): The ratio of net income to common equity; measures the rate of

return on common stockholder’s investment. This ratio is calculated by dividing net income by

total stockholder equity. In 2009 SAIC earned 21.69% of return on its equity. In 2010 and 2011

it was respectively 21.69%, 24.81%. From 2009 to 2011 the figure went into positive, the return

earned on the common stockholder investment in the firm were positive. In 2011 return generate

from the past years.

Current Ratio: This ratio is computed by dividing current assets by current liabilities. It

indicates the extent to which current liabilities are covered by assets expected to be converted to

cash in near future. In 2009, 2010 and 2011 it was respectively 1.91 times, 1.87 times, 2.20

times. In 2009 company current assets comfortably exceeded it’s the current liability but it was

below the standard. In 2010 company current ratio was decreased it was also below the standard;

and in 2011 company current ratio was increased it was the standard it means firm’s was able to

meet its short term obligation.

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Return on investment (ROI): It measures the gain or loss generated on an investment relative

to the amount of money invested. ROI is usually expressed a percentage and is typically used for

personal financial decisions, to compare a company's profitability, or to compare the efficiency

of different investments.

Risk Management Plan:

Risk in e-commerce: We are aware that e-commerce is not a fad; we are here to stay. We do

believe that today, it is an organization’s ability to understand and manage the full spectrum of

risk which further bifurcates the boundary between success and failure, more so when all

government and private organizations depend, to a large extent, on information technology.

Criticality criteria of e-commerce: we will focus on the protection of customer interest, total

up-time (obviating down-time), security of payment gateway, credentials during log-in and log-

out, protecting the financial position from damage to reputation, setting standards of corporate

governance, keeping a record of accountability and avoiding data degradation. Also included are

critical appliances partnership and contracts, enhanced credibility, external evaluations and audit,

360-degree management enhancement, business continuity, real-time decision-making, social

responsibility, customer decision-making, loop inducting, motivation and need recovery,

information search, alternative evaluation, purchase decision and outcomes

(purchase/performance/feedback/execution), repeat purchase and brand loyalty need to be

addressed.

Risks in e-commerce projects: we are well aware of that E-commerce projects are risk-prone

mainly due to complexity and integration challenges. Business service exchanges, sharing of

database, registry and repository have perpetuated risks. Cost over-runs, choosing the wrong

solution, implementation problems etc, are also risk factors in e-commerce projects. However, by

using risk management procedures, companies learn to balance their risks with desired outcomes,

hence making projects successful.

Risk management in e-commerce: Risk is a problem waiting to happen and the goal of risk

management is to make this inherently risky process of applications development successful and

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consistent. A risk management approach is crucial to success in e-commerce; the need is for

proactive risk mitigation both in planning and in development. In the development of a new

technical system or project, there is a constant need to minimize uncertainty and errors, which

accompany an unprecedented endeavor.

A project manager can never manage risks to the point of eliminating them altogether. Only

proven methods of risk management and strategic plans can be used to draw up and identify or

monitor, and thus, mitigate risks.

Broad guidelines: There is a framework to assess, manage and plan risk involves identification,

analysis, envisaging consequences, planning, tracking and control. The broad guidelines may or

may not follow a sequential pattern as given above. However, the individual components are

explained below.

Identify risk: Risk is assessed at all the stages of a project; it can be attributed to factors

such as non-executive support or users’ resistance to change. In such a case, the project

team should be proactive and not reactive, as the risk may reach a threshold and might be

uncontrollable.

Analyze risk: The way to go about it is to analyze, prioritize and communicate risk so

that the project team and the user are aware, and an alternative or contingency can be

implemented.

Envisage consequences: It is easier said than done, it is here that most project leaders or

even team members forget about this factor. Forethought and perceptual thinking will

help in evaluating the future of a particular risk factor.

Plan for risk: All the three factors mentioned above obviate the requirement of planning,

which can be classified into immediate, urgent and essential based on the degree of risk

—high, medium and low respectively.

Track risk: We generally tend to ignore the importance of tracking risk; documentation

is also another tool that helps in tracking.

Controlling risk: Risk management works hand-in-hand with project management

processes, controlling risk is not at all difficult if a systematic approach is taken with

sequential preparation and plans.

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The most important aspect to mention in risk management is that, it is not done once, but

requires scheduled periods along the way to ensure that there is a constant re-evaluation of the

risk. Risk management needs to be an ongoing process to be successful. If you don’t keep up the

pressure, the risks will always win. Hence, it is a ‘go-go’ situation and not a ‘no-no’, ‘no-go’ or a

‘slow-go’ situation.

From another perspective, we see managing risk in e-commerce and projects under two holistic

heads, ‘physical aspects’ and ‘psychological aspects

Physical aspects: The physical aspects include risk management planning, plan verification, risk

forethought, scope of risk management organization, risk identification, qualitative and

quantitative analysis, proposal planning and monitoring and control.

Psychological aspects: The psychological aspects are as follows: -

Impulsive decisions: Impulse-driven decisions during the course of the project will

increase risk in e-commerce projects.

Result psychosis: The need to attain results is influential in the decision-making process

during the course of planning, development and implementation.

Zero error syndromes: Project managers tend to lose faith in their subordinates or fear

that the assigned task may not be accomplished with the desired quality or time frame.

Further, the project manager may end up accumulating risk in the course of the project.

Risk assessment:

Risk management can be simplified as risk assessment plus risk mitigation. Risk assessment is as

important as mitigation. What we do is take the risks that are discovered in step one and give

them a designation of high, medium or low risk. Further one needs to think and quantify about

each risk’s possible overall impact.

Project management is a continuous process; hence laxity in risk management will culminate in

losses. We can coin a term Daily Loss Expectancy (DLE) that can be evaluated on a day-to-day

basis. This helps in quantifying losses in terms of miss-management of risks.

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Daily Loss Expectancy (DLE) = Likelihood of failure (L)/failure mitigation possibility (M)

-Both the variables are quantified in percentage.

-DLE ranges between 1 and 9.

-The ideal value of DLE is 1.

-If 3>=DLE>1, then DLE is low.

-If 6>=DLE>3, then DLE is medium.

-If 9>=DLE>6, then DLE is high.

-If DLE<1, then the evaluation is not realistic.

Selecting the right people will reduce risk manageability issues. The ability of selecting the most

suitable project manager is a major factor that affects management of risk in e-commerce

projects, mitigating risk calls for unconventional ways of planning and execution.

Concluding Remarks:

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Appendix: