1. Online Education in China
English Now
Online Education in China

2. Largest Market for English Education
Australia
Luxembourg
Canada
Mexico
China
Netherlands
Denmark
Singapore
France
Spain
1.1 Billion people learning english in the world – 165million are from china. Being proefficient in english is highly correlated to economic status and income.
Germany
South Africa
Ireland
United Kingdom
Italy
United States
Japan

3. 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% of
our company
Gaith

4. Products and Services English Corner Listening Lab Writing Corner
ESL Classes
One-on-One tutoring
Public Library
Movie Theatre
Gaith

5. English Corner (1.2 hours each time) 4 times 3 times 5 times
Pricing Structure
$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
Writing Corner
2 times
10 times
Listening Lab
No limit 
No limit
Movie theatre
ESL class
750 Yuan ($112) for 12 weeks 24 hours tuition time + one month membership
Tutoring
100 Yuan ($15)/hour
For example, a 100-hour class in preparation for the CET 4 test from New Oriental will cost 1,560 Yuan ($233) (course searching, 2008). An online audio record of the same course will cost 100 Yuan ($15) (eclass, 2008). An intensive two-week course from English First International Language School (EF) for improving general English communication skills will cost 1,330 Yuan ($199) (Courses, 2008). 
 Good comparative info.
David to do this section.

6. 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
David.
Open first office in provincial capital
Criteria to consider for location
Broadband availability
Competition
Affordability
Educational Influence

7. Operation Plan
Carl

8. Financial Analysis 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 Costs
Expect to grow into 4 new cities by Try to capture subscriptions per city.
Criquite how do we calculate it. Sounds maybe too strong for the business. Need backup info. Add another slide with more detail.

9. Financial Details 2011 2012 2013 2014 Starting Cash Balance 120,000
2011
2012
2013
2014
Starting Cash Balance
120,000
32,825
122,671
168,634
Dividends  0
(75,000)
(150,000)
(650,000)
Cash Out from Existing Operations
164,846
195,963
271,830
Cash from Expanded Operations
693,966
Ending Cash Balance
484,430

10. Thank You 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
Thank You
Questions?

11. Comparative Pricing Info
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 $
$700 – 4200

12. 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
Gaith

13. Key Success Factors Instructors Teaching Contents Enhance Technology
Interest
Teaching
Contents
Technology
Promotion
Gaith

14. Competitive Environment
Rivalry Among Existing
Competitors: HIGH
Bargaining Power of
Customers: LOW
Threat of Entry: HIGH
Gaith
Bargaining Power of
Suppliers: LOW
Threat of Substitutes: High

15. 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
Gaith – keep it short and focus on operation plan and financial plan.

16. Expense Listings
Office Set Up Costs
China Office
Rent
Supplies
Marketing Costs
Vancouver Office
Salaries
Marketing Manager - China
Vancouver Instructors
Vancouver Admin & Tech Support
China Admin & Tech Support
ESL Teacher
Hiring Costs
Campus Development
Virtual Land Purchase
Virtual Land Operating Costs
Graphics Designer
Learning Content Development
Software Licensing
Content Development
Website Development
Website Maintenance Costs
Website Hosting Costs

17. Marketing Strategy Road shows Google Us Universities Carl
Set up table in the university
Show tables – shows how the product works
Universities

18. Marketing Strategy – Go to Market
Phase 1
Network Building
Education Bureau
Phase 2
Seminars
Building networks with teachers
Phase 3
Testing the product
Recommend to students
Carl
Contact with universioty or school and give them access to test the product
If they are satisfied, they can buy it in the future.

19. Risks 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)
A good one to add is that our software is based on a third party.

20. Financial Analysis