TRACK-O-MAT Christian Bjornli Dennis Ly Rohit Navale Carla Marcorio

Track-O-Mat Circular sticker attached to objects which reflects radio waves Made of foil aerials with integrated chemical substances Software supporting device

Track-O-Mat Usage Private usage – Software supporting device Logistics – Tracking in real-time basis – Satellite – Globalized service

Market Analysis Canada Over 34 million people Strong household consumption High-tech industrial society Focus on mobility

Strategic Entry Advertisement through: – Internet (Wired.com & Business week) – Social media (Facebook, Twitter) – Offer as a freeware for selected companies – Blogs

Risks Economic risk – Limited partnership Political risk – Stable political environment – Democratic country – Safe business environment Legal risk – Legal administration affect distribution – Common law country

Benefits and Costs Costs – Legal costs – Distribution Benefits – Enhance customer satisfaction for logistic companies – Patent rights – Outsourcing potential

SWOT Analysis Strength – Price competitive – Late mover advantage Weaknesses – Limited marketing budget – Industry with strong technological firms Opportunities – Increase in smart phones – Expansion through available e-shopping Threat – Infringement – Already established brand firms

Pricing Pricing Factors – Opportunity cost – Similar products Differentiating or Cost – strategy – Possibility to differentiate – Existing competition

Financial Evaluation & Assumptions – Product cost given approximated industry markup 10% - 20%. – Including 5% corruption of merchandise. – R&D and After Purchase service tech support – Financing 50/50 equity and Debt

Year 1 Production Number of units ,00 Cost per unit 60,00 cost of product R&D service ,00 Total production cost ,00 Financing Amount of 13% ,00 Equity ,00 Interest expense ,00 Earning Sales Price 72,00 Estimated sale ,00 Total income ,00 Total cost ink debt cost ,00 return on Equity ,00 Return on Equity % 16,30 %

Relevant discount rate: 10Y Canadian Government bond with 3,23 % coupon Years Investment-$1 Cash flow16,3 %17,0 %18,0 %18,9 %19,7 %20,7 % NPV (3,23 % discount rate)$1 Payback in year 6 when adjusted for opportunity cost of risk free investment; Cash flow 16,3 %17,0 %18,0 %18,9 %19,7 %20,7 % Accumulated cash flow in absolutes exceeding investment of $1-0,84-0,67-0,49-0,30-0,100,11 Payback period in absolutes is between 5 and 6 years (5,2)