E.T. PHONE HOME, Inc. Forecasting Business Demand Group 6 Group 6 Vinay Iyengar 04BM8002 Vikram Narayanaswamy 04BM8090 C R Ramesh 04BM8089 Srikiran Kundeti 04BM8085 Ganapathy Subramanian N 04BM8086 Jaiguru M 04BM8088 Praveen Vasudevan 04BM8087
OBJECTIVE Critical analysis of the basic assumptions in the Business Model Critical analysis of the basic assumptions in the Business Model
CRITICAL ANALYSIS Forecasting and Initial Survey Market Share PricingCostingTechnology
FORECASTING AND INITIAL SURVEY Number of businesses in Cleveland Growth rate 0.9% or higher ? $427m investment in construction – was it considered? Penetration Levels Similar to that of consumer durables ? 15 – 90 % in shorter time? Advertising and Equipment costs
MARKET SHARE Majority Users – Business Sector Chicago Waiting Lists Business user survey in Cleveland Past experience with Mobile Phones & Pagers Other professionals and domestic users not in sample population Market Share for ETPH – 50% Depends on many factors such as early start of service, tariff rates, quality of service, functionality etc
PRICING Most popular Price Range - $110 Includes monthly charge of $25 plus talk-time charges – likely to vary with competition Fall in price with introduction to retail markets is not accounted for Same Price Demand Relationship Will 21.2% & steady increase of 0.2% hold good for all 10 years? Demands may vary with region and time
COSTING Maximum limit on customers Support for 10,000 users max – may increase Salaries and Overhead Expenses Fixed at $250,000 – may increase with time Cost Estimates No rationale for average of AT&T and Low Estimates
TECHNOLOGY No challenges by newer technologies Will newer technology replace Cellular Telephony as it is intended to replace Mobiles & pagers ? Co-existence with mobile phones and pagers Is the assumption that Cellular will replace Mobiles & Pagers valid – will they co-exist?
APPENDIX Financial Feasibility Realistic Growth Rate State Map of Ohio
FINANCIAL FEASIBILITY
REALISTIC GROWTH RATE
STATE MAP OF OHIO