Appolosophy

Starting up a Mobile Applications, Tablet Computing Solutions &

Web 3.0 Development Company in Luxembourg

w w w.appolosophy.com

Fahad Zahid & Ivan Buncic

Master in Entrepreneur ship & Innovation

Luxembourg Business Academy

Faculty of Law, Economics & Finance

University of Luxembourg

July, 2010

Thesis Mentor

Prof. Jean-Luc Arrègle

Acknowledgments

We would like to thank our professors Sten Soderman, Jean Luc Arregle and Nicolas Jonard for
their help and feedback during the whole process of the thesis writing.

Special thanks to Benjamin Ledran, who has always inspired us to be creative and original.

We would like to thank Andy Zuest and Erika Timko for guidance in the financial plan.

Last but not the least; we would also like to thank our beloved families and friends.

Without your support, nothing would be possible.

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“The past cannot be changed, but it can, in part, be known; the future cannot be known, but it
can be imagined and by acting on that imagination it can, in part, be changed. Imagination is
shaped, though not determined – by the interpretation of environment and experience. However,
most of what is imagined turns out to be impossible; and so progress depends on both the
variety of imagination and some process for selection among this variety – the essentials of
evolution”. Loasby, B., 2001, P: 397.

Executive Summary

The entertainment economy is undergoing continuous improvements. New and alternate

technologies have replaced the existing ones. Television, radio and newspapers were once
considered to be the only attention acquisition mediums. These mediums are not only losing their
popularity but are also struggling to rethink their value proposition models. The core reason
behind these changes can be attributed to the massive outreach of the internet. The internet has
forced businesses to reshape their value proposition models to capture the opportunities
available on the World Wide Web.

The rise of smart phones signals another shift in the entertainment economy. With millions of
smart phones in the hands of consumers and counting; majority of the brands have not
developed a strategy to address consumer demands on the mobile web. We found out that
majority of the companies are not exploiting the immense potential of the mobile web by creating
mobile applications, mobile optimized websites and associated solutions. Majority of the brands
do not have any applications on the existing app stores and for tablet computing devices like the
iPad. Our inner desire to pursue intellectual freedom coupled with our marketing & technological
expertise led us to the idea of starting up a mobile applications and web 3.0 development
company “Appolosophy” in Luxembourg.

We intend to exploit this rapidly gro wing market segment by providing customized solutions for
brands which will ensure leverage, outreach and brand loyalty. Through this thesis; we analyze
our motives, the problems, purpose, proposed solutions, methods, data, framework, analysis,
conclusion and consequences of starting up a mobile applications and web 3.0 company in
Luxembourg. This thesis is amalgamatesan pedagogical inputs which pave the way for a concise
business plan.

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Table of Contents

1 Introduction............................................................................................................................ 7
1.1 Motives ............................................................................................................................ 8
1.2 Problems.......................................................................................................................... 9
1.3 Purpose ......................................................................................................................... 10
1.4 Method........................................................................................................................... 10
1.4.1 Potential Methods..................................................................................................... 11
1.4.2 Chosen Criteria........................................................................................................ 12
1.4.3 Data......................................................................................................................... 12
1.4.4 Data Collection......................................................................................................... 13
2 Literature Overvie w & Framework ....................................................................................... 14
3 Analysis .............................................................................................................................. 16
4 Appolosophy – Business Plan.............................................................................................. 16
4.1 What is Appolosophy? ................................................................................................... 17
4.2 Company Purpose.......................................................................................................... 18
4.3 Customer’s Problem ....................................................................................................... 18
4.4 Value Proposition........................................................................................................... 19
4.5 Customer Profile............................................................................................................. 22
5 Why Now ............................................................................................................................ 23
5.1 Historical Evolution of Mobile Phones & Applications....................................................... 24
5.2 Primary Data (Results of the Survey) ............................................................................. 26
5.3 The recent trends that make our solutions possible........................................................ 27
5.4 Market Dynamics............................................................................................................ 35
6 Competition .......................................................................................................................... 38
6.1 Local competitors (Luxembourg) .................................................................................... 38
6.2 Global competitors ......................................................................................................... 39
7 Services .............................................................................................................................. 42
7.1 Service Line up.............................................................................................................. 43
7.2 Features ........................................................................................................................ 44
7.3 Functionality................................................................................................................... 45
7.4 Technology .................................................................................................................... 47
7.5 Intellectual Property........................................................................................................ 48
7.6 Development Roadmap................................................................................................... 49
7.7 Prototype Mobile Applications......................................................................................... 50
8 Business Model ................................................................................................................... 53

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 8.1 Revenue Model .............................................................................................................. 55
8.2 Pricing Structure ............................................................................................................ 56
9 Marketing ............................................................................................................................. 57
9.1 Macro Environmental Scan ............................................................................................. 57
9.2 Highly engaged and highly net worked marketing models ................................................ 59
9.3 Marketing Tactics ........................................................................................................... 61
9.4 Sales Pipeline................................................................................................................. 63
10 Team.................................................................................................................................. 63
11 Financial Analysis .............................................................................................................. 65
12 Action Plan......................................................................................................................... 68
12.1 Market Entry Strategy................................................................................................... 68
12.2 Scalability Strategy....................................................................................................... 69
12.3 Resource Retention Strategy........................................................................................ 69
12.4 Customer acquisition, retention & extension strategy.................................................... 71
13 Conclusion ......................................................................................................................... 73
14 References........................................................................................................................ 77
15 Glossary of Technological Terms ....................................................................................... 80
16 Annexures and Supporting Data ........................................................................................ 81
16.1 Application Development for Brands ( workflo w) .......................................................... 81
16.2 Flagship Applications (Workflo w) ................................................................................. 82
16.3 Website Development (Workflow) ................................................................................ 83

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Table of Figures
Figure 1: Appolosophy............................................................................................................... 17
Figure 2: Appolosophy Value Proposition................................................................................... 20
Figure 3: Do you think brands/individuals can promote themselves through mobile applications? 26
Figure 4: Do you access internet through your smart phone? .................................................... 26
Figure 5: If you are loyal to a brand will you do wnload its mobile application? ............................ 26
Figure 6: Will you make use of a promotion available to you through your mobile phone?............ 27
Figure 7: Do you think search engine optimization and social linking are important for a business?
.................................................................................................................................................. 27
Figure 8: iPhone OS unique device distribution by region (Source: adMob, April 2010) ............... 28
Figure 9: Android OS unique device distribution by region (Source: adMob, April 2010) ............. 28
Figure 10: Android and iPhone unique devices (Source: adMob, April 2010) .............................. 29
Figure 11: Ad requests by Geography, April 2010 (Source: adMob, April 2010)......................... 30
Figure 12: Decline in Loyalty for many consumer brands during recession ................................ 31
Figure 13: Social net working is the fastest gro wing mobile category ......................................... 32
Figure 14: Mobile music users .................................................................................................... 32
Figure 15: Mobile benchmark data for European market.............................................................. 33
Figure 16: Touch screen smart phone adoption.......................................................................... 33
Figure 17: iPad Unique Device Distribution by Region (Source: adMob, April 2010)..................... 34
Figure 18: Smart phone users (Source: research2guidance, March 5, 2010) ............................. 35
Figure 19: Mobile Internet Access (Source: adMob, April 2010) ................................................. 36
Figure 20: Applications for Brands (Source: research2guidance, March 5, 2010) ...................... 36
Figure 21: Number of ne w apps (2007-2009) (Source: research2guidance, March 5, 2010)...... 37
Figure 22: Porter’s Five Forces .................................................................................................. 42
Figure 23: Appolosophy Service Model...................................................................................... 43
Figure 24: How ‘Fusion’ Works................................................................................................... 47
Figure 25: University of Luxembourg (prototype mobile application) ........................................... 50
Figure 26: Cargolux (prototype mobile application) ..................................................................... 51
Figure 27: Luxair (prototype mobile application).......................................................................... 51
Figure 28: Atelier (prototype mobile application) ......................................................................... 52
Figure 29: Appolosophy Business Model ................................................................................... 53
Figure 30: Appolosophy Pricing Structure .................................................................................. 56
Figure 31: Appolosophy – STEEPLED Analysis .......................................................................... 59
Figure 32: Highly Engaged Marketing Model................................................................................ 60
Figure 33: Highly Net worked Marketing Model ............................................................................ 60
Figure 34: Appolosophy – Organizational Structure ................................................................... 65
Figure 35: Customer acquisition, retention and extension strategy ............................................. 72
Figure 36: Applications development for brands w orkflo w......................................................... 81
Figure 37: Flagship Applications workflo w................................................................................. 82
Figure 38: Website Development workflo w ................................................................................ 83

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1 Introduction

Long gone are the days of divergence, this is the era of convergence which is accentuated by
the availability of information easily and seamlessly. The whole world is converging towards
accessing information & making appropriate use of it. It starts from checking email, connecting on
social net works, bro wsing through favorite sites; the choices and possibilities are endless. We
live in an “attention economy” which is characterized by innovation. Nobody anticipated the scale
and scope of dot com companies like Google, Yahoo or MSN 20 years ago. Internet is one of the
focal cornerstones of our society as it supports social and economic interactions at a global
scale. YouTube is considered to be one the most innovative websites of this age and millions of
users visit its website everyday. As we write this paper; there are millions of messages being
broadcasted through the instant messaging service Twitter. The ideas and inventions around the
internet will continuously and consistently evolve.

As these ideas and inventions impact the world around us, they also dynamically change the
landscape of marketing, advertising, outreach and publicity. Internet spa wned a huge flood of
online advertising and prompted every enterprise on the face of this earth to build a website.
These websites created alternative spaces for companies to promote their products and to reach
their customers on the World Wide Web. The internet was founded on a simple architectural
principal, ‘a simple net work that can be used as a universal means to interconnect end systems
and users’. This principle alone allowed the internet to reach impressive heights of success.
Nowadays, experts predict that ‘the future of internet looks highly mobile’. A reason for this
statement can be attributed to the fact that in less than four years there will be 4.5 billion
subscribers for next generation mobile internet services (3G & 4G). (TeleGeography Research,
July 2009). Lenovo, the 4th largest computer maker in the world anticipates that mobile internet
products will account for 10-20% of its revenues in the next five years.

Mobile phones are becoming smarter by the day as they provide users with numerous features
which enables them to send and receive emails, access the internet, chat, do wnload favorite
applications to name a fe w. Everyday developers are creating new mobile applications to capture
the interest of consumers. However, most of the soft ware companies create mobile applications
restricted to one platform i.e. Apple, Blackberry, Nokia or Google. We believe that mobile
applications need to be created and synchronized across all platforms making it possible for

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multiple users to access similar data. This single possibility impacts the entire dynamics of
promotions in a way that if applications (either created for big brands or created solely for
innovative purposes) are spread on all platforms they can attract a wider audience and spur
increased retention. Similarly tablet computers like the iPad present a new niche market for
applications and widgets.

In 2002; no one had anticipated that the World Wide Web will become smart as it will have the
capability to predict, analyze and store preferences and help in making critical decisions. Today
with the layering of semantics to the web (the ability of a website to analyze data, to map out
specific historical changes and logically integrate the possibilities) has enabled the web to
understand. The ability of a website to understand is coined as web 3.0. There is a dire need to
make intelligent websites that analyze and react according to set preferences. Similarly, mobile
websites, bro wsers and plug-ins are in very high demand. Even companies with good websites
need optimization for mobile internet. In this way once a company’s site has been optimized for
mobile usage; it will appear properly on the mobile phone in terms of its resolution and usability.
The next sections contain information related to our motives, the problems, purpose, and method.

1.1 Motives
Our entrepreneurial mindset to pursue intellectual freedom prompted us to revie w the global
technological landscape and develop creative ideas. Initially we started off with the idea of
developing highly creative mobile applications for sale on the application stores. With the passage
of time we refined our idea in order to collaborate with brands to improve their outreach through
customized applications.

Innovation is a creative process which spurs improvement and innovative ideas fuel successful
business entities. The core motive for conceiving and developing the idea of “Appolosophy” can
easily be attributed to our inner desire to do something worth while, different and progressive
which in turn generates value.

Luxembourg and its surrounding EU countries present unique opportunities for entrepreneurs
with innovative business ideas. There is almost no competition in the mobile and tablet
applications development/ web 3.0 arena in Luxembourg. Servicing this market segment is highly
challenging yet extremely appealing.

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Studying in the Entrepreneurship & Innovation program has augmented our existing international
marketing and technology based consulting skills. Furthermore it provided us with ample
opportunities to brain storm unique business ideas and the precise knowledge and tactics to
deploy and implement them.

Appolosophy’s business concept is totally unique and is fully aligned with solving the problems of
its customers in an innovative manner. The next section addresses the problems faced by
majority of the brands.

1.2 Problems
The mobile application and web 3.0 development segments are relatively nascent in Luxembourg
and other EU countries. We researched that there is only one prominent web development
company operating in Luxembourg. Websites of prominent banks, business entities and
Government offices are designed by this one web development firm. The other web development
companies operating in Luxembourg are only engaged in outsourcing. This practice results in
creating a big divide bet ween the expectations of a customer and the delivered results. Best
practices sho w that outsourcing is not always the sharpest tool in the toolbox.

Mobile/tablet application development is a ne w business segment in this region. This practice

requires appropriate knowledge in the relevant development domains i.e. Soft ware Development
Kit, Java, Flash Lite, Mobile Ajax and numerous other platforms. It also requires experience in
adhering to the standards set up by mobile phone manufacturers and their online stores like App
Store (Apple), Ovi (Nokia), Blackberry Store (RIM) and Android Market (Google).

The problems which we intend to solve through this paper are as follows:

a. How can companies make use of new mediums other than print, media, radio
and web to re-engineer their brand perception and market presence globally?
b. Are there any fresh and creative marketing strategies that companies can
pursue to stay connected to their customers while surviving the present
economic turmoil?
c. What is the potential outcome for a brand to create its presence on the mobile
web?
d. Is it possible to alter consumer behavior and obtain real time consumer
feedback through mobile applications?

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A clear gap is prevalent in Luxembourg in terms of competent web and mobile application
development firms. Numerous local and international businesses entities, Government/Private
institutions and individuals from all walks of life require websites, widgets and applications to not
only to create a virtual parking space for their business but also to promote themselves and
attract attention of the masses.

The best brands in the world are considering development of smart widgets and mobile
applications in order to hold on their customers with velvet handcuffs, maintain the brand loyalty
and continuously inform them about new developments/promotions.

The problems identified above are closely linked with the purpose mentioned in the next section.

1.3 Purpose
The purpose of this paper is to:

a. Identify the dynamic changes taking place in the entertainment economy.

b. Explain overall potential of the smart phone/mobile web market and the opportunities
available.
c. Elucidate new ways of reaching out to customers and generating significant ROI by
communicating on mediums other than Radio, Print & Television.
d. Analyze the target market, customers, consumption patters and recent trends to
develop solutions with high value proposition.
e. Mould the inputs of the paper into a clear business plan for Appolosophy that
prescribes innovative solutions for developing mobile/tablet applications and web 3.0
solutions. Furthermore, our focus is on integrating all the components of the business
plan into the perfect fit in order to generate interest of the VC’s and investors.

The next section outlines the methods which will be adopted for identifying the diagnostics for
the problems mentioned earlier.

1.4 Method
In the earlier section the problems have been discussed. This section identifies the potential
methods which could be adopted to solve the problems and selects the most practical method

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which enables us to achieve a t wo pronged result i.e. to solve the problems and to properly
present the proposed solutions.

1.4.1 Potential Methods

There are different methods for analyzing the problems and providing viable solutions. The
problems mentioned in the earlier section are distinctive and therefore demand unique solutions.

We evaluated different methods which are as follow s:

a. Primary Research

We had the option of conducting primary research in order to address the specific issues and
pinpoint the various solutions in the paper. This option is not only time consuming but could also
hamper our activities by exposing the core business idea in front of the respondents.

Literature reflects that surveys are very helpful in identifying the current trends and preferences
of the target market segments. They provide first hand user preferences in quantifiable form. It is
possible to collect information from a large number of respondents simultaneously.

b. Secondary Research

Nowadays, secondary research is very cost effective due to vast amounts of information
available on the internet. However, basing the entire paper solely on secondary research is not
feasible as the business concept is unique and has never been attempted by any entity in the
past.

There are a number of case studies, research reports and articles which can be revie wed in
order to gain an insight into the companies which are developing mobile and tablet computing
applications. These case studies provide information about the best practices prevalent in the
organization and management of these businesses. However in our specific case this
knowledge is only partially beneficial from a broader management perspective as our business
concept differs from the typical mobile applications and web development companies.

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1.4.2 Chosen Criteria

Appolosophy’s business concept has not been practiced before therefore the best method to
describe and communicate this concept is to mould this paper in the form a detailed business
plan.

We use the following methods for developing the business plan:

Survey
A structured survey was floated to a group of 15 respondents belonging to academic and
professional spheres. Primary data from this survey identifies the mobile phone internet access,
branded mobile applications, mobile applications do wnloads, mobile promotions and social linking
paradigms.

Case Studies, Research Reports & Articles

We revie wed the sales numbers of an Australian mobile application developer, Firemint.
Furthermore, we also analyzed the numerous findings of the research reports prepared by
reno wned consulting firms and academic articles pertaining to our business concept. This
secondary data provides us with a broader picture of the mobile/tablet applications and web
development industry. It also reflects the best practices pertaining to mobile application and web
development platforms, the increased volume of usage and geographical trends.

Financial Modeling
The financial block of our course helped us in creating a structured financial model for
Appolosophy’s business concept which provides in-depth information related to the financial
resources required to generate revenues.

The business plan is a combination of numerous components which clearly describe the
business concept, customer’s problems, market dynamics, competition, business model,
financial analysis and a detailed strategic action plan. All these steps will define the concept of
Appolosophy and focus on providing concrete conclusions and consequences.

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1.4.3 Data

We make use of t wo types of data:

a. Primary Research
b. Secondary Research

We had the option of engaging in focused primary research with the risk of exposing the core
business idea. Keeping this fact in view we floated a generalized survey to map the opinions of
15 users related to mobile applications, mobile internet usage and other relevant paradigms.

However on a broader spectrum precise data related to mobile applications, operating

environments, handset manufacturers and consumption patterns is available through extensive
research carried out by reno wned firms like Gartner, Research2Guidance, ComScore, and
AdMob. This research is secondary in nature. We intend to make optimum use of this research
for the marketing and operational benchmarking of the business plan.

1.4.4 Data Collection

Results of the primary data are incorporated in the ‘Why Now’ section of the business plan.

The following secondary data is used in the preparation of the business plan:

- In-depth research of the market, best practices and prevailing trends in EU and world wide
through various reports by Gartner, AdMob and other research firms adds immense
value, credibility and logic to the business plan.
- Inputs on business plan writing from reno wned VC firm Sequoia Capital
- Academic and business articles/cases most relevant to our business model
- Books by entrepreneurs and management professionals which provided success stories
aligned to our business model and failure stories to guard against potential pitfalls
- Contextual and behavioral usage data from AdMob and ComScore.

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2 Literature Overview & Framework
During the development of this business idea we have extensively read the findings of prominent
entrepreneurs, business and management leaders like Alvin Toffler, Sir Richard Branson, Malcolm
Gladwell, Chris Anderson, Guy Kawasaki and many more.

Sociologist and futurist Alvin Toffler published a book in 1970 titled ‘Future Shock’ which explains
the psychological state of the individuals and societies which experience too much change in a
very short span of time. Toffler published a sequel to ‘Future Shock’ titled ‘Third Wave’ in 1980
which explains the progression of society in the perspective of three different waves i.e.
agricultural revolution signaled the arrival of the first wave, industrial revolution indicated the
presence of the second wave and the post industrialization scenario or the information age as
the third wave. Toffler published a sequel to the ‘Third Wave’ in 2006 titled ‘Revolutionary Wealth’
which examines three key fundamentals i.e. time, space and knowledge with relation to wealth
systems. These books provide a deep insight on ho w society and its opinions have shaped over
the passage of time.

Chris Anderson the editor of ‘Wired’ magazine wrote the Long Tail in 2007 in which he has used
statistics to describe the success stories of companies like Amazon and Netflix. The days when
companies sold popular products are over no w as there is a huge market in selling small volumes
of hard to find products. The total sales of these hard of find items constitutes the ‘Long Tail’. In
another book titled ‘Free’ which was published in 2009, Anderson describes ‘Freemium’ model.
Freemium is a blend of t wo words ‘Free’ and ‘Premium’. This model works on a simple principle of
offering the basic products/services for free and charging for the premium products/services.
This book goes on to describe ne w promotional and cross subsidy models which are very useful
for technology startups.

‘Rework’ by Jason Fried and David Heinemeier Hansson, 2010 is an account of the challenges
faced by the entrepreneurial authors in starting up 37signals. This book highlights the simple yet
effective management methods for entrepreneurial companies.

‘Reality Check’ written by prominent entrepreneur Guy Kawasaki in 2009, focuses on ignoring
fads and sticking to common sense practices in customer service, marketing, strategic planning
and gauging competition.

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‘Tipping Point’ written by Malcolm Gladwell in 2000; explains that tipping point is the level at which
momentum for change becomes unstoppable. He has highlighted three agents of change i.e. the
law of the fe w (success of any social epidemic depends on a particular set of people with
special social gifts), stickiness factor (content of the message that makes it memorable) and
po wer of context (ho w human behavior is influenced by environment).

Books written by the above mentioned business and management celebrities have not only
provided us with requisite knowledge about their experiences, the best practices and the
potential pitfalls but have also motivated us to adopt a very balanced approach in developing a
viable business plan which takes into account all the foreseeable and unforeseeable scenarios.

As there is no prior research regarding our business logic therefore we have made use of
different business tools to examine the overall situation of the market. We emphasize our efforts
on developing the business plan which carries a detailed analysis of the market and explores the
financial options that make it possible for a company to start up successfully.

Useful models like the social, technological, economic, environmental, political, legal, educational
and demographic (STEEPLED) analysis, John Jantsch’s highly effective/highly net worked
marketing models and Michael Porter’s Five Forces Model are incorporated in the business plan to
carefully examine the different factors which play a pivotal role in the success of Appolosophy.

Collectively, these actions act as yardsticks in determining the viability of the business plan.

The list of books, case studies and articles we have gone through is very extensive. To
summarize everything in the briefest way possible we have condensed the list of books and
articles to the ones that influenced and assisted us the most. A list of the literature is available in
the “References” section.

Key Concepts

Mobile Applications: are in fact soft wares which possess the ability to run on a mobile device
and provide users with rich functionalities and features to simplify their tasks. The usage of
mobile applications is very diverse as they can range from providing basic organizing and
telephony services to complex services like entertainment, news and games.

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Tablet Computing Applications: Tablet computing devices like iPad and the Android Dell pad
are in increasing demand all over the world as they provide extreme mobility and ease of use.
Furthermore, these tablet computers are easy to carry as they are significantly lighter than the
notebooks. Soft ware designed and developed for the tablet computers can be referred to as
tablet computing applications.

Web 3.0: Web 3.0 is the successor of web 1.0 and 2.0 Also known as semantic web; the
information on a webpage is categorized and stored in a way that the computers understand it. It
is a combination of semantic web and artificial intelligence. Semantic web teaches a computer
what the data means and this paves for artificial intelligence to utilize that information.

Associated Services: Associated services in Appolosophy’s case refer to search engine

optimization (SEO) – the art of getting better visibility and rankings on search engines. Viral
campaigns and social linkages provide flexibility to companies as they ensure less money is
spent on developing extremely creative promotional campaigns. Mobile optimized websites are
versions of existing websites that function properly on the mobile web.

3 Analysis
Mobile phone and tablet applications present an immense potential for a business with focus,
creativity, relevant experience and vision. Based on the primary and secondary data we have
used different tools in our business plan to justify that the business idea is unique and highlighted
the immense market potential in this segment.

As mentioned in the above section we will make use of various models to evaluate the potential
of our business. Furthermore, the financial and market analysis will clearly validate the business
idea in front of the prospective angels and venture partners.

4 Appolosophy – Business Plan

We have the capacity to accept and adapt to change and shape our opinions in line with the
social acceptance prevailing at a particular point in time. Necessity is the mother of invention and
technological innovations have played a pivotal role in progression of societies. Everything that
was considered to be virtually impossible is possible today thanks to the advancements in
technology. Social adoption and usage patterns of a product/service change with time; the wave

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of entertainment which started from radio shifted to wards the television and from the television to
the internet. Ground realities coupled with our futuristic vision predict the shift from internet to
mobile web. The rich and interactive content of the internet is no w available on the mobile web
through the introduction of smart phones. Our business idea revolves around development of
applications for the smart phones. This business plan reflects our entrepreneurial drive and
connects all the creative inputs into a viable strategic action plan for starting up ‘Appolosophy’.

4.1 What is Appolosophy?

We spent quite a lot of time brainstorming on a perfect name for our business. After short listing
quite a fe w names we finalized ‘Appolosophy’. Appolosophy is a combination of t wo words
‘applications’ and ‘philosophy’. It reflects our creative vision of developing innovative solutions on
the mobile and web spaces.

Figure 1: Appolosophy

The logo consists of a stylized ‘play’ icon. It reveals our for ward thinking, creativity, pro-activity
and acceptance of continuous change. It has three different shapes blended into the play icon in
different colors i.e. the triangle, square and circle. These shapes symbolize our professional
diversity i.e. we work on three core areas: mobile and tablet computing applications, web 3.0 and
associated services in the form of search engine optimization, viral campaigns/social linkages
and mobile optimized websites. The blending of the colors in the logo represents the synergy
which exists among all our services.

The slogan for ‘Appolosophy’ is ‘earn attention’. We developed this slogan to inform clients about
the services we render. Appolosophy’s focus is on the promotion business and every soft ware,
application or website is directed to achieving the simple objective ‘help businesses in earning
attention from their target consumers’. Our focus is to use high end technologies to provide
creative services to help brands ‘earn attention’ they truly deserve.

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4.2 Company Purpose
Appolosophy provides attention acquisition solutions for mobile web and tablet based computing
environments. We develop mobile/tablet applications and provide web 3.0 solutions to help
brands earn the attention they deserve.

(2010, Appolosophy.com)

4.3 Customer’s Problem

On the whole our customers include small scale, medium scale and large scale brands which
intend to expand their outreach and brand loyalty by making use of the mobile web. Verticals
which we are focused on include lifestyle, luxury, aviation, education, entertainment, banking,
sports, automotive, travel and many more.

Our customer’s problems are summarized as follow s:

- Usage of basic attention acquisition mediums like print, radio, television &
w eb with limited or no access to customers on the mobile web: Majority of the
companies have not thought about developing their o wn mobile applications and deploying
them on the mobile web to enable their customers to stay brand loyal. Ironically, even
established brands focus on achieving critical mass by turning their attention towards
promotions on print, radio, television & web. There is no denial regarding the importance
of these mediums. However, we must consider the element of saturation and wide
variety of choices. Companies that focus on reaching out to customers through the mobile
web platform possess the opportunity to enhance their market share and brand loyalty.
- Lack of emphasis on nearness to custome rs: Mobile phone applications connect
directly to the customers without any hassles of competition. If a user has a branded
application then it will obtain undivided attention without any interference. Obtaining
feedback is faster, simpler and easier compared to any other medium. Brands with first
mover advantage on the mobile web have greater chances of multiplying their revenues
compared to brands with no presence on the mobile web.
- Inability to link mobile applications with the current marketing strategy of the
firm: Though companies try to build applications for mobile phones but there is no clear
synergy bet ween their marketing activities and the developed applications. Usually an
application is developed and deployed without keeping the key concerns of the target

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 market consumer in view. As a result these applications get limited downloads thus
leading to limited usage and attractiveness.
- Dearth of the multiplicity coefficient: A precise strategy to harness the po wer of the
mobile applications has not been devised. For e.g. an application developed only for one
mobile platform caters to only the users which possess the relevant mobile phone. If
companies carefully dissect their customers on the basis of their mobile handset
preference and choose three or four popular platforms at once and develop one
application that is accessible on these different types of phones then the results will be
much more re warding.
- Scarcity of ‘Free mium’ strategies: Majority of the brands use push and pull strategies
to attract customers. The benefits of ‘Freemium’ need to be taken into consideration. By
offering customized mobile applications as do wnloadable for ‘free’, brands can leverage
and promote their premium products through these free applications. The whole concept
revolves around providing utility and value to customers and generating healthy returns.
- Limited or no penetration in terms of web 3.0, mobile optimized websites and
SEO: web 3.o technology possesses the ability to work wonders for any company by
integrating all the historical data and making information easily available. Presently the
focus is only on web 2.0. Similarly majority of the enterprises do not possess websites
which are optimized to work on the mobile web. This practice results in frustration for
their customers whenever they access the website from their mobile device. Search
engine optimization is another technology which has not totally been exploited.
- Lack of viral campaigns: in the era of meta tagging and websites like YouTube, viral
campaigns are cost effective and in many cases provide maximum leverage and ROI. One
of the best marketing options exercised by fe w smart companies is to design a viral
campaign to attract a large volume of customers in a short span of time.

4.4 Value Proposition

Mobile web is redefining everything around us. The correct balance of creativity, marketing and
technological expertise helps Appolosophy in providing brands the attention they deserve.

Appolosophy’s value proposition revolves around five key elements as illustrated in the figure
below:

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Appolosophy
Figure 2: Appolosophy Value Proposition

These five key elements are:

a. Mar ket: it is pertinent to note that consumers will spend $6.2 billion in mobile application
stores this year (Gartner – Press Release, December 2009), application stores will
exceed 4.5 billion downloads in 2010 (Gartner – Press Release, December 2009) and
there are 45 million smart phone users only in the United States (AdMob, ComScore
MobiLens, 5th April, 2010). Solutions offered are aligned with burgeoning demand of the
market.
b. Customer Experience: Appolosophy’s services are aimed at providing solutions that
maximize brand presence and generate value. Close collaboration and in time delivery of
services generate positive customer experiences.
c. Offering: Appolosophy offers its customers services related to development for mobile
phones, tablet computers and numerous solutions aligned with web 3.0. The ability to
design applications and multiply them on many platforms enhances brand presence.
d. Benefits: services are designed to add value to the marketing mix by attracting and
engaging the customers of a brand present on the mobile web. Appolosophy directs
brands to the right mobile platforms which possess their target customers; this in turn
results in generating additional revenue streams by promoting services through a
‘freemium’ model in majority of the cases where brands develop free applications for the
mobile web and promote premium products/services.

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Appolosophy
 e. Differentiation: Appolosophy is entering the mobile application market with a set of key
differentiators which include:

- Absolute technological edge over competition w hich is realized through the

creation of a soft ware platform (Fusion) which ensures multiple outputs of the
same application. Ability to design, translate and multiply one mobile/tablet
application on all platforms.
- Performance based approach coupled with quick development cycles. Emphasis
is on providing quality solutions in a short span of time. Appolosophy can deliver
highly complex applications inside 10 working days while the competition might
take one month to develop the same application.
- Appolosophy’s brand ideology is aligned with the next generation. The business
concept and services provided are ne w. We strive to continuously improve and
evolve the service offerings with the passage of time.
- Total customer focus which enables better interaction, collaboration and results.
These results improve brand image and ROI.
- Creative solutions with no element of outsourcing; Appolosophy is a start up
based in Luxembourg.
- Value addition in the form of competitive pricing structures to fit the requirements
of any individual/company. Lo wer than market price points for high end services
to provide best results and attain extremely high value for the services provided.

- Absolute technological edge over competition w hich is realized through the

creation of a soft ware platform (Fusion) which ensures multiple outputs of the
same application. Ability to design, translate and multiply one mobile/tablet
application on all platforms.
- Performance based approach coupled with quick development cycles. Emphasis
is on providing quality solutions in a short span of time. Appolosophy can deliver
highly complex applications inside 10 working days while the competition might
take one month to develop the same application.
- Appolosophy’s brand ideology is aligned with the next generation. The business
concept and services provided are ne w. We strive to continuously improve and
evolve the service offerings with the passage of time.
- Total customer focus which enables better interaction, collaboration and results.
These results improve brand image and ROI.

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Appolosophy
 - Creative solutions with no element of outsourcing; Appolosophy is a start up
based in Luxembourg.
- Value addition in the form of competitive pricing structures to fit the requirements
of any individual/company. Lo wer than market price points for high end services
to provide best results and attain extremely high value for the services provided.

4.5 Customer Profile

Appolosophy’s customers consist of:

a. Large, medium and small scale brands

b. Advertising/promotional/ web agencies, broadcasting & publishing companies

We serve large, medium and small scale brands related to the following verticals: lifestyle, luxury,
banks, entertainment, sports, media, telecommunications, aviation, transportation and many more.

We collaborate and interact with advertising/promotional/web agencies, broadcasting and

publishing companies to multiply offerings for their customers by developing brand specific mobile
applications on different platforms and web 3.0 solutions.

We possess the ability to create applications in the following domains:

• Financial, money management and payment transferring applications

• Business applications for planning and management
• Advertising: corporate, promotional and coupon applications
• News and sports applications
• Medical and fitness applications
• Educational applications
• Communication and messaging applications
• Music and video applications
• Geo location applications
• Games, entertainment and leisure applications
• Social networking and blogging applications

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5 Why Now
Based on the present mobile market gro wth; we are very optimistic that mobile applications will
be as important as websites in the near future. Organizations are keen on making significant
advancements in the mobile space as mobile technology possesses the ability to keep customers
connected all the time. Renowned company like Reuters is keen on building innovative financial
applications (Programmable web, April 23, 2010) and with the passage of time this trend will
accelerate. Six key drivers which highlight the importance of entering the mobile applications
segment are as follows:

1. Rise of smart phones: Today smart phones are rapidly replacing standard phones. In the
future everybody will have access to smart phones and applications. Presently the smart phone
manufacturers are focusing on cost reduction and pretty soon smart phones will be available for
as low as 100 Euros.

2. Plethora of possibilities: Smart phones are just like miniature computers and their
processing/multitasking abilities are becoming more po werful. This signals a dramatic shift from
usage of notebooks and desktops. Very soon robust handsets will provide all the computing
functionalities to users similar to those of a desktop computer. Big players in the market use
mobile phone applications to boost their brand value and equity. This ho wever is just the
beginning as in the days to come companies will be able to provide healthcare, insurance,
banking, reservations and numerous other solutions to customers through the smart phones.

3. Omnipresence of app stores: In 2007 when Apple launched the first app store, today
there are numerous manufacturer app stores like the Android Market (Google), Ovi (Nokia),
Blackberry App World (RIM), Palm shop (Palm), Windo ws Phone (Windows Mobile), Maemo Select
(Maemo) and other independent app stores. These app stores provide the users with the
freedom of comparing, selecting and downloading mobile apps.

4. Unrivaled interaction & user-experience: Mobile applications possess the ability to

engage customers, interact with them and provide rich experience in terms of user friendliness,
graphics and features.

5. Nearness to customers: The proximity of mobile phones to their users is much greater than
any other device. Mobile devices are never further than 1 meter a way 24/7/365. There are
exciting new possibilities with the introduction of the mobile web as smart phone users are

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Appolosophy
getting updates on their mobile phones about the latest promotions from their favorite brands
along with updates on ne ws and sports to name a fe w.

6. Superior visibility, measure ment & feedback: A lot of companies complain that if they
develop a mobile application how it will be visible among hundreds of thousands of applications?
App stores present a lot of cross marketing and advertising options. The user experience on
mobile space is extremely personal. Recently FC Barcelona (one of the largest football clubs in
the world) created a mobile application for iPhone and iPod Touch to attract millions of its users to
access information and promotions related to the club on the mobile web (Football Club of
Barcelona, March, 2010). With so many ways already discovered for promotion why did the
football club go through with developing the application? The ans wer is simple; the club intends to
multiply its presence and engage more customers. It created another source of revenue for the
club.
Similarly measuring the effectiveness of mobile marketing experience is very easy. The number
of users who have do wnloaded the application and are using it are extremely easy to identify
through tracking signatures. Feedback is s wift and easy to obtain, for e.g. brand ‘A’ is promoting
product ‘B’ through an application and has informed customers to make use of the specific
promotion. The density of usage serves as a barometer for measuring the effectiveness of the
promotion; similarly the customers can also be provided the option of sending free sms about
their opinions directly to the company.

Even though there is still a long way to go before many companies will realize the benefits of
this exciting market but it won’t take long before creating mobile applications becomes a
standard business practice especially for media, consumer goods, automotive, sports and
travel sector.

5.1 Historical Evolution of Mobile Phones & Applications

With the progression of time; cellular technology has improved dramatically. Initially mobile phones
made use of the analogue technology. Regarding form factor the phones were very large and
were not portable at all. The analogue technology was also referred to as the 1st generation
(1G) mobile communication system (introduced in 1979) and it was replaced in the 1990s by the
first digital systems.

High level of usage demanded a greater coverage and flexibility in form factors. These
requirements gave way to the 2nd generation (2G) of mobile communication systems (introduced

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Appolosophy
in the early 1990s). Similarly as usage of mobile phones increased it gave way to ne w
possibilities like access to internet and data transfers. Data transfers became possible through
mobile communication technology referred to as 2.5G. After the introduction of 2.5G greater
access speeds and reliability was required which gave way to 3rd generation technologies
commonly referred to as 3G (first introduced in 2001). Today, 3G will soon be replaced with the
4th generation of mobile communication technologies known as 4G.

Previously, phones were extremely heavy and large and with the development of ne wer mobile
technologies the physical specifications of the mobile phones also experienced tremendous
change. Now the phones are light, portable and possess the ability to provide access to the
internet. On the entertainment side big steps have been taken to allow users to play touch based
games, capture pictures/videos, organize the data and integrate the cell phone with the computer
for sharing data. Today, mobile phone usage is integrated in our lives to such an extent that
majority of the people feel uncomfortable without a mobile phone. A fe w years ago the most
popular functions of the mobile phone included phone calls and simple messaging service (SMS).
Now the priorities of the users have changed significantly due to innovative technologies
integrated with the mobile phones. Previously mobile phone applications were embedded into the
mobile phones with absolutely no freedom for the users to abandon them or retain them. Earlier
mobile phone applications came in the form of organizing solutions like calendars, memos,
calculators and games. Users had to retain these applications and had no freedom to add or
delete applications.

User access to internet through their mobile phones gave way to the development of
communicators and smart phones. Mobile content and applications got a serious boost with the
introduction of the Apple iPhone in June, 2007. Apple created the ‘appstore’ where developers
could create and sell apps to users. Users had the freedom of buying paid and free applications
for their mobile phones. Blackberry and Nokia soon followed suit and no w the most recent
addition to the smart phone industry is the Google Android platform. Only a fe w years ago the
processing, memory, display, and connectivity options for all mobile devices represented great
compromises as compared to the more capable characteristics of a desktop computing
environment. However, the appeal of bringing even this minimal computing environment away
from the desk was simply too powerful to ignore. Now times have changed and we possess
color display, fast processors, expandable memory, pervasive connectivity along with a vast
array of applications and utilities which provide maximum customization and flexibility.

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Appolosophy
5.2 Primary Data (Results of the Survey)
In order to collate the primary data, we carried out a survey related to mobile internet access,
branded mobile applications, mobile application downloads, mobile promotions and social linking.
This survey consisted of 15 respondents belonging to the academic and professional spheres.
We are placing the findings of five high priority results which demonstrate the acceptance and
knowledge of the respondents about this segment.

Figure 3: Do you think brands/individuals can promote themselves through mobile

applications?

Figure 4: Do you access internet through your smart phone?

Figure 5: If you are loyal to a brand will you download its mobile application?

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Appolosophy
Figure 6: Will you make use of a promotion available to you through your mobile
phone?

Figure 7: Do you think search engine optimization and social linking are important for
a business?

The responses from the survey indicate that majority of the respondents (86.7%) agree on the
fact that brands can promote themselves through mobile phones. Almost 67% of the respondents
access internet through their smart phones. 53.3% of the respondents will download a mobile
application launched by one of their favored brands. 73.3% of the respondents intend to make
use of a promotion available through their mobile phones. Last but not the least 93.3% of the
respondents agree that search engine optimization and social linking are important for a business.

5.3 The recent trends that make our solutions possible

In addition to the above mentioned findings of the survey; the recent statistics of the smart phone
industry indicate that this market is ripe for individuals/companies which possess creativity and
relevant technical knowledge.

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Appolosophy
iPhone and Android device distribution by region

AdMob is a mobile statistics research company recently purchased by Google. Through the
figure below we can examine the distribution of iPhone handsets in different regions of the
world. iPhone usage apart from USA is gro wing very quickly in Western Europe and Asia.

Figure 8: iPhone OS unique device distribution by region (Source: adMob, April 2010)

The figure below sho ws Google Android handset usage across the different regions of the
world. Although USA is still the biggest market for Android phones but after that China has the
second greatest number of Android devices.

Figure 9: Android OS unique device distribution by region (Source: adMob, April 2010)

iPhone and Android unique devices (US and worldwide)

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Appolosophy
According to AdMob; 11.6 million Android devices and 27.4 million unique iPhones are present
world wide as of April, 2010.

Apple has a wide array of supporting products along with the iPhone to make its offerings much
more attractive than all its competitors around the world. Apple has created a multimedia empire
through its iPod, iTunes store and appstore.

With millions of smart phones around the world and counting we believe the timing is right to enter
this market.

Figure 10: Android and iPhone unique devices (Source: adMob, April 2010)

The interesting landscape of mobile ad requests

The figures below demonstrate the ad requests on mobile phones across different regions of the
world as of April, 2010. The monthly gro wth in advertising traffic on the mobile phones reflects
ho w sharply this trend is picking up all over the w orld.

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Appolosophy
Figure 11: Ad requests by Geography, April 2010 (Source: adMob, April 2010)

Decline in Loyalty for Many Consumer Brands during Recession

Research firm ComScore estimates that brand loyalty among consumer goods is declining quickly.
This decline is the byproduct of recession and now consumers give greater consideration to the
price of the products.

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Appolosophy
Figure 12: Decline in Loyalty for many consumer brands during recession

The above mentioned consumer dynamics go on to demonstrate what we mentioned earlier; that
brands need to be more creative in their approach towards winning consumers. With a recession
looming in the background it’s imperative for companies to find ne w ways to reach out to
customers with better promotions.

Social Networking is the Fastest Growing Mobile Content Category

The fastest gro wing mobile applications and bro wser based content category is social
networking.

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Appolosophy
Figure 13: Social networking is the fastest growing mobile category

Mobile music rapidly growing across Europe

ComScore estimates that 23.5% of the mobile phone users across five leading European mobile
markets (UK, France, Germany, Italy & Spain or EU5) listen to music on their mobile phones. There
are a total of 54 million users which use their mobile phones to listen to music.

Figure 14: Mobile music user s

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Appolosophy
Of the 54 million users listening to music on a mobile device in the EU5:

- 42 percent have smart phones compared to 25 percent of the total mobile subscribers
- 47 percent bro wse the mobile internet compared to 25 percent of the total mobile
subscribers

Figure 15: Mobile benchmark data for European market

Touch screen Mobile Phone Adoption gro wth in the US

According to ComScore a leading digital research firm; touch screen based mobile phones are
multiplying very quickly in the United States approximately at 159% in the last year.

Figure 16: Touch screen smart phone adoption

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Appolosophy
Experts estimate that touch screen based phones adoption will gro w continuously as they allo w
consumers to easily navigate the complex services of the phones.

In order to exploit this segment, players like LG, Blackberry and Palm have also introduced touch
screen phones.

Increasing demand of the iPad

Currently the iPad is available in 9 countries outside the US. The latest stats by AdMob sho w a
very high demand for iPad.

iPad’s distribution by world wide regions sho ws that it is quickly going to pick up pace in terms of
sales in Western Europe and Asia.

Figure 17: iPad Unique Device Distribution by Region (Source: adMob, April 2010)

Experts estimate that mobile applications market will soar up to US $ 15.65 billion in 2013
(Techcrunch, March 5, 2010). Only last year this market was estimated to be worth US $ 1.94
billion. (Techcrunch, March 5, 2010). Today smart phone usage has increased ten fold with 300
million users at present (Techcrunch, March 5, 2010). In our opinion, the timing to enter this
market is right as 82% of the brands, agencies and other companies plan to boost mobile ad
budgets next year (Mobile marketing watch, May 11, 2010).

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Appolosophy
5.4 Market Dynamics
As mentioned earlier, there are 300 million smart phone users at present. This number is going to
multiply in the coming fe w years due to improvements in both hard ware and soft ware.

Research 2 Guidance estimates that at present there are 300 million smart phone users across
the globe.

Numbers
Figure 18: Smart phone users (Source: research2guidance, March 5, 2010)

All these statistics indicate that the time is right for Appolosophy to hit the market and quickly
capitalize on the available opportunities.

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Appolosophy
Mobile Internet Access

Numbers
Figure 19: Mobile Internet Access (Source: adMob, April 2010)
Smart phones lead the way in mobile internet access as their usage is consistently increasing in
comparison to the normal phones and mobile internet devices.

Applications for Brands

Research2Guidance estimates that only 10% of the Fortune 2000 companies have developed
mobile phone applications. Companies are very interested in using mobile applications as a
channel for approaching customers as sho wn in the following graph:

Figure 20: Applications for Brands (Source: research2guidance, March 5, 2010)

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Appolosophy
84% of Fortune 2000 companies intend to increase their engagement level in this market by the
end of 2010. These figures are based on the insights of more than one hundred leading
companies world wide that took part in the Research 2 Guidance mobile application market survey
in 2009.

Numbers
Meteoric Rise in Number of New Applications Developed

The number of ne wly published apps rose dramatically with a compound annual gro wth rate
(CAGR) of 180% in the last t wo years.

Figure 21: Number of ne w apps (2007-2009) (Source: research2guidance, March 5, 2010)

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Appolosophy
6 Competition
As any other business; in the field of marketing, web design and applications development, there
lots of competitors. Initially we don’t want to focus on the competition but on our customers,
which are businesses, and on their clients, the end users. We are a ware of the competitors but
not obsessed by them.

The game is shifting so rapidly that our competitors from yesterday maybe aren’t any more our
competitors today and vice versa.

Who would think that Nokia, the toilet paper production company would become the number one
player in mobile market industry? Sony’s founder Masaru Ibuka started a radio repair shop in a
bomb-damaged department store building in Nihonbashi, Tokyo. Now Sony is the biggest
electronics, gaming console Company in the World. Microsoft started as a company producing
soft ware for developers, and no w they are the biggest soft ware company and their range of
products varies from desktop operating system to large cluster server database systems with
billions of dollars in revenues.

Keeping all these facts in view, we ran through numerous databases of the companies, created
a list and analyzed the key players in web design and application development industry.

We group them in local and global categories, although in today’s internet world, any company
could be global with a more localized approach.

6.1 Local competitors (Luxembourg)

Luxembourg as a small country hasn’t developed the right climate for web and application
development companies. There are numerous freelance agencies which are not significant for
this business plan but we will discuss only the most important competitor in Luxembourg.

Nvision (Luxembourg) w w w.nvision.lu

Nvision’s tag line for services is strategy, design, development and maintenance. Focus is mainly
on web development, design and deployment; it holds lion’s share of the Luxembourgish web
design market. Their portfolio consists of companies like Arcelor Mittal, SES Astra, Tango, RTL
and Rubbermaid Commercial Products just to state a fe w.

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Appolosophy
On the application development side, Luxembourg lacks the competitive companies which could
be listed here.

6.2 Global competitors

L4 Mobile (USA) w w w.l4mobile.com

L4 Mobile is dedicated to helping companies deliver mobile services to their customers. The L4
Mobile development team specializes in designing, developing and delivering innovative mobile
applications to ensure their customers reach the mobile market.

With an understanding of the mobile world and partner’s mobile objectives; L4 also has the
flexibility to ensure business goals and objectives are aligned with the needs of each client and
user group. L4 Mobile received US $4.8M in Series ‘D’ funding as of June 2006.

Mobile Sorcery (Sweden) w w w.mosync.com

Mobile Sorcery AB develops and distributes mobile application tools for cross platform mobile
application development needs. It offers MoSync, an open source mobile development soft ware
that enables developers to publish various mobile applications on mobile phones and devices. The
company also provides services in the areas of pilot projects and prototyping, mobile applications
development and existing applications portability with various mobile platforms. Mobile Sorcery
AB was founded in 2004 and is based in Stockholm, Sweden. Mobile Sorcery received US
$224,000 in Series ‘A’ funding as of April,2004.

Mobility Valley (France) w w w.mobilityvalley.com

Mobility Valley is a consulting company specialized in telecom, banking and international projects
management. They assist their customers in the implementation and the optimization of projects.

Range of expertise covers key technological areas like: telecom and banking consulting, mobile
applications development on iPhone and iPad, mobile device management for terminals. Mobile
Valley was founded in 2009.

Row27 Mobile (USA) w w w.row27mobile.com

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Appolosophy
Row27 Mobile created the first turn-key iPhone application platform for sports teams to sell to
their fans. With advanced live statistics, ticket purchasing, news, video, chat, mini-games and
GPS coupon finder; a robust platform for sports teams to realize ne w revenue opportunities was
created.

The company was founded by ro w27 studios; a motion graphics and interactive design studio
focused on applying emerging technologies to sports marketing. Since its founding in 2007,
ro w27 studios has built relationships with over 60 sports organizations spanning the National
Basketball Association (NBA), National Football League (NFL), and National Collegiate Athletic
Association (NCAA).

Adva Mobile Corp (USA) w w w.advamobile.com

Adva Mobile provides a soft ware service that enables music artists to create closer relations
with their audience through mobile fan clubs. Free to the fan and free to the band, the company
provides mobile messaging, mobile presence (mobile web pages), mobile content fulfillment,
mobile commerce and a sharing service using existing social networks. Adva generates
revenues from commissions on mobile sales and advertising on mobile web pages.

PhindMe Mobile (USA) w w w.phindme.net

PhindMe offers a web-based soft ware platform that connects consumers with businesses
through cell phones and other mobile devices. Its solutions enables it to partner with marketing
agencies, media companies, yellow books and ne wspapers to bring the power of the mobile
marketing channel to their clients. PhindMe Mobile w as founded in 2006 and acquired by Movitas
Mobile in 2009.

This list goes on as there are thousands of companies working on mobile application
development. Companies are funded and acquired daily and it is impossible to track the
changes on a regular basis. Our aim is to focus on core competences and customers instead
of the competitors.

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6.3 Porter’s Five Forces Model
We make use of the Porter’s Five Forces Model to analyze the key factors in the five forces
matrix. As mentioned earlier, the entire mobile industry is undergoing a tremendous gro wth phase
therefore customers could become buyers, ne wcomers can be bought by large companies and
bargaining power of the clients and vendors plays an extremely important role.

The key success factor for Appolosophy is the first mover advantage. The bargaining power of
customers will be countered through the first mover advantage. Appolosophy offers unique
attention acquisition services. To fully exploit this advantage aggressive marketing and
networking will be carried out to attract customers quickly develop solutions.

The threat of substitute products and ne w entrants is always visible. Many ne w companies
could imitate Appolosophy’s service model and create saturation in the market. Here, the core
development platform of Appolosophy “Fusion” plays a pivotal role. Competitors will have
difficulty in providing solutions on all platforms with flexibility in terms of design, languages and
usability features.

The bargaining power of suppliers is evident in terms of outsourcing. In Appolosophy’s case

outsourcing is a minute threat because outsourcing companies do not render high quality
services and their delivery schedules are quite long.

Major industry players such as Google, Microsoft, Apple and Adobe are also the competitors, as
they could offer in the nick of time what all small businesses try to offer. Another common option
for these companies is to buy out the smaller firms.

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Appolosophy
Figure 22: Porter’s Five Forces

We are a ware that the competitors are only a mouse click away, but with our unique idea and
implementation strategy we aim at achieving critical mass quickly in order to stay ahead of the
competition with the first mover’s advantage and exploit the technological edge we possess with
“Fusion”.

7 Services
Appolosophy’s services cover the spectrum of mobile/tablet applications, 3.0 websites, mobile
optimized websites, SEO, viral campaigns & social linking solutions. Our core focus is on
application development and auxiliary services branch out in the areas of websites, optimization
and social linking.

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Appolosophy
 Mobile
Applications
for
Brands Flagship
Social
Mobile/Tablet
Linking
Applications

Tablet
Viral
Appolosophy Computing
Campaigns
Applications

SEO 3.0 Websites

Mobile
Optimized
Websites

Figure 23: Appolosophy Service Model

7.1 Service Line up

Our services are bifurcated into the following categories:

a. Core Services

Mobile Space

- Mobile applications for brands

- Fusion: Appolosophy’s core application development soft ware for creating customized
applications which can be multiplied across various mobile platforms (iPhone, Android,
Symbian, Blackberry, Maemo & Windows Mobile).

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Appolosophy
 - Flagship Applications for mobiles (applications developed and conceived in house – to be
deployed on app stores to generate revenues through do wnloads and to create
promotional opportunities)

Tablet Computing Space

- Applications for tablet computers (iPad, HP tablet & Dell Android tablet)
- Fusion: develop customized applications and multiply them on different tablet computers.
- Flagship applications for tablet computers (applications developed and conceived in
house – to be deployed on app stores to generate revenues through do wnloads and to
create promotional opportunities)

b. Auxiliary Services

Web

- 3.0 enabled websites

- Mobile optimized websites
- SEO solutions
- Viral campaigns
- Social media linking

7.2 Features

The features of our services are flexible in nature. We employ different techniques for
developing a specific solution. Mobile applications are developed on our o wn core soft ware
‘Fusion’. Individuals/brands have the option of making the changes as desired within the core
soft ware and choose their requirements initially for further development. Websites and
SEO/viral/social solutions need to be developed from scratch therefore the features depend on
the type of solution a customers requires.

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Appolosophy
7.3 Functionality

Functionality of the services provided by Appolosophy is as follows:

Mobile Space

- Mobile applications for brands: creation of mobile applications will enable brands to
reach out to their customers on the mobile space i.e. the app stores from where the
customers can do wnload the specific application developed for a brand. Let’s consider
the example of University of Luxembourg which has thousands of students. Once the
application for the University has been developed and deployed students will have the
option of do wnloading the application from the app stores and access information
pertaining to schedule of classes, course outlines, specific deadlines relating to events,
enrollment, etc.
- Fusion: Appolosophy will offer its customers flexibility of choosing colors, fonts, design,
languages, layouts and a plethora of features for their mobile applications. This is possible
through our core soft ware development platform ‘Fusion’. Customers will have the option
of selecting their desired layout, language and feature combination which will further on
be created and deployed by our application development team. Fusion has the ability to
synchronize applications across various mobile platforms (iPhone, Android, Symbian,
Blackberry, Maemo & Windows Mobile). Brands will have the option of multiplying their
presence by creating applications for different platforms. This in turn will increase their
chances for gaining the attention of more customers and in turn reaping greater benefits.
Let’s consider the example of Cargolux. Supposing, Cargolux has an application for
iPhone which enables its users to check out the status of their packages and it decides to
use the multiplatform sync solution then it can deploy the same application on other
platforms like Android, Blackberry, Symbian, Windows and Maemo to ensure more
customers can obtain their services.
- Flagship Applications for mobiles (applications developed and conceived in
house – to be deployed on app stores to generate revenues through
downloads and to create promotional opportunities): In order to continuously
refresh our creativity and accept ne w challenges we will create mobile applications for
different platforms. These mobile applications will be related to gaming, personal
productivity, entertainment and location based services.

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Tablet Computing Space

- Applications for tablet computers (iPad, HP tablet & Dell Android tablet): We will
create applications for brands which could be accessed on tablet computers like the iPad,
Android Dell tablet and HP tablet to name a fe w. Tablet computing is gaining popularity all
over the world. Brands which have mobile applications can also deploy the same
application on the tablet computers. These applications will enable brands to tap into the
customers which are devoted users of the tablet computers.
- Fusion: Customers for tablet applications will have the option and flexibility of using the
‘Fusion’ platform to provide initial inputs on the design of their application which will be
further modified and made usable by our application development team.
- Flagship applications for tablet computers (applications developed and
conceived in house – to be deployed on app stores to generate revenue s
through downloads and to create promotional opportunities): We intend to
create applications for tablet computers in house which reflect our creativity and portray
our development capabilities.

Auxiliary Services

Web
- 3.0 enabled websites: create websites for our customers that provide smarter
solutions to end users. Data is integrated and arranged in a way that users find it much
easier to navigate and obtain information from websites.
- Mobile optimized websites: will be created for our customers who intend to provide
their end users with the same experience as of a normal website. The functions of the
website will operate smoothly and the resolution will be optimized to work with the mobile
bro wsers.
- SEO solutions: will be deployed to improve the visibility of a website on the search
engines to ensure maximum hits.
- Viral campaigns: will provide customers the benefit of tailoring highly creative
advertising campaigns on the internet at a very low costs.
- Social media linking: integration of company’s website and promotions on social
networks will enable better outreach and spur increased following.

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7.4 Technology
Appolosophy creates mobile applications which help brands enhance their communication
capabilities with their customers. Our dependence on technology is great and staying up to date
with the latest development tools is essential. We couple our existing skills and knowledge with
the latest development platforms to deliver high end results.

In a nutshell we make use of the following technologies to carry out development:

To carry out collective development and multiplatform synchronizations we make use of

‘Fusion’.

1. Fusion: Fusion is a core application development platform created by Appolosophy in

Java Platform Micro Edition (J2ME) and it provides a robust yet flexible environment for
creating user interfaces, security/net work protocols and numerous other dynamic
functions. Fusion is based on a set of t wo components i.e. Design Flex and Multiplatform
Sync. Design flex enables customers to decide on the languages, fonts, colors, usability
and features of the desired application while Multiplatform Sync enables them to choose
the mobile platforms on which they intend to deploy the application.

Figure 24: How ‘Fusion’ Works

In order to carry out independent development (companies which want an application for one
platform only), the following technologies are used for single platform application development.
Development tools vary for different mobile platforms.

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Appolosophy
 2. iPhone: usage of tools like X code, Objective C and Cocoa Touch Framework in
developing iPhone applications. Assistance for customers in creating developer accounts
on Apple’s app store and in getting the applications approved by Apple.
3. Android: Android mobile operating system is based on Linux therefore Google enabled
Java libraries are used. Core development for this platform is carried out on the Google
Android Soft ware Development Kit (SDK). Furthermore, application programming
interfaces (APIs), debugging tools, emulators and samples codes made available by
Google are also used.
4. Blackberry: To gain full leverage from Blackberry’s Operating System (OS) development
is carried out on platforms like Eclipse Pulsar and Java. Research in Motion (RIM)
application programming interfaces are also used to provide optimum solutions.
5. Windows Mobile: Appolosophy offers Window s Mobile applications on all major
windo ws mobile platforms like Windows Mobile 6, Windows Mobile 6.1, Windows CE,
Pocket PC 2003 and Windows Mobile 7.
6. Symbian: is ranked among the most flexible mobile operating systems due to its ability to
function on almost any operating environment. Different development tools like Java, C++,
OPL.NET are used for delivering applications that w ork on Symbian operating systems.
7. Mae mo: development tools like Qt (pronounced ‘cute’ – an application development tool)
are used for rolling out customized Maemo applications.
8. iPad Application Development: iPad application development is no longer complex;
Apple’s SDK 3.2 and iPad simulator is used for designing and testing iPad applications.
9. Web Services: solutions for web offered in CSS (cascading style sheets), search
engine friendly semantic markup and cross bro wser compatibility (Internet Explorer,
Firefox, Opera, Safari & Chrome) tools are also used. White hat (tools and methods
conforming to search engine requirements) tactics are used for search engine
optimization.

7.5 Intellectual Property

Appolosophy will protect it’s core application development and multiplatform synchronization
platform ‘Fusion’, through a patent. Furthermore, as the business progresses we will copyright all
the applications developed in house by Appolosophy in order to safe guard their unique features
and functional properties.

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Appolosophy
Mobile applications are extremely secure as they cannot be transferred from one phone to the
other, once do wnloaded to a phone the application cannot be moved any where else. The
intellectual property net around mobile applications is extremely strong because they are
protected by the app stores which are in turn owned by the smart phone manufacturers like
Apple, Google, Nokia and many others. Every application has to be unique and has to pass the
approval from the app stores; therefore there is absolutely no possibility for piracy.

7.6 Development Roadmap

Our development process is simple, creative and fun. It is based on the following components:

Mobile/Tablet Computing Applications:

a. Mar ket Study: We kick start application development with a detailed market study to
determine how an application can impact a brand positively. In this phase we focus on
determining the concept and type of application that can leverage brand value and provide
optimum mileage.
b. Design, Develop & Deploy: After the initial concept and market study is approved; focus
is on developing the application. We share a development schedule with the client and
select the most appropriate tool for development of the application. The clients are provided
access to the ‘Fusion’ soft ware through which they decide the initial design, language,
functionality and platform presence of the application. Once the initial design is finalized we
work on the technological end to ensure the application is fully functional. The prototype is
revie wed by the clients and upon final approval we go through the deployment phase.
Through this whole process the client is continuously kept in loop about each phase of
development. We ensure the application is deployed on the relevant appstore and aid our
clients in marketing the application properly to gain traction.

Web Development: We design flawless websites using a simple five step approach:

(a) Customer Inputs & Discussion: We spend time with our clients to understand their
requirements and expectations. (b) Structuring: After determining the requirements of the client
a usability sketch is prepared which outlines the functionality of the website. (c) Prototype:
Prototypes of the website are created and presented to the clients. (d) Development &
Deployment: After client’s approval the actual website is prepared, usability tests are performed

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and the website goes live. (e) Support Services: in the for m of managing the client’s website,
assisting in updates and carrying out other necessary amendments.

7.7 Prototype Mobile Applications

The below mentioned prototype applications give the users a first hand vie w of the functionality
of the mobile applications:

University of Luxembourg: A productive application for mobile phones to assist students in

accessing information related to courses, ne ws, events, maps and more.

Figure 25: University of Luxembourg (prototype mobile application)

Cargolux: A productivity application for smart phones to assist customers of Cargolux in

tracking packages, checking flight schedules and special promotions.

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Appolosophy
Figure 26: Cargolux (prototype mobile application)

Luxair: A smart phone application for Luxair customers; enabling them to check flight schedules,
bro wse through ticketing information and tariffs, rent a car and more.

Figure 27: Luxair (prototype mobile application)

Atelier: Smart phone application assisting users to find out information related to tickets, artists,
schedules and venues.

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Figure 28: Atelier (prototype mobile application)

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8 Business Model
Appolosophy possesses a business model focused on providing premium application
development and web services at competitive costs.

Figure 29: Appolosophy Business Model

The business model is hybrid and focuses on B2B and B2C relationships. It contains a set of ten
complementary building blocks. A clear insight into the business model is as follows:

The Key Players

1. Appolosophy: an IT services company.

2. The Customer: customers acquire the services offered by Appolosophy. As mentioned
earlier we work on both B2B and B2C models therefore the company client relationship is the
same in both instances.

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Appolosophy
Company to Client Workflow

3. The Carrier: The carrier is the medium on which we develop and deploy our solutions. In our
case the mediums include smart phones, tablet computers, mobile web and internet.
4. Service: offers services to its clients in the form of application development for mobile/tablet
computers and web development/associated services.
5. Experience: to provide services but to make sure that the services achieve results. For this
purpose constant coordination is exercised with the customers during all the phases of
development to ensure a perfect experience for our customers and in turn their customers.
6. Attention: The key deliverable/end result of all efforts is to help brands/individuals earn
attention from the target market segments. In many cases the developed application might be
sold for free on an app store in order to attract attention of the customer for engagement in
premium purchases.
7. Exposure: Active exposure is another consequence of services provided. Once the service
is deployed; it gets the attention of the customers and as a next step it attracts exposure.
Exposure is in the form of domino effect and it helps customers in reaching critical mass in
terms of their promotions and ROI.

Client to Company Workflow

8. Less Costs (Expenses): The mobile/tablet application market is dominated by entities which
serve fe w customers at very high costs. The cost of developing one application could range
from US $ 50,000 to US $ 150,000 (Fortune, May 12, 2009). Appolosophy’s modus operandi is
to charge normally ( with a respectable profit margin) and multiply customer base. Servicing a
greater volume of customers at extremely competitive costs is much more beneficial than
servicing 5 customers in one year at extravagant costs. The key factor here is the amount of
relationships and contacts developed through interactions with a large number of customers.
9. High Returns (Revenues): When a brand/individual has deployed and promoted an
applications and it earns the necessary attention/exposure then the benefits of its initial
investment are realized. These benefits could be in the form of enhanced do wnloads (the
Zippo virtual lighter application got 3 million downloads and spa wned a rene wed following for
the lighters), customer rushing to retail outlets to make use of promotions or just spreading
positive word of mouth about the brand/individual. All these outcomes prove to be in one way
or the other extremely beneficial for both Appolosophy and its customers.
10. Reputation: Coupled with the high revenues; reputation is another positive outcome of the
entire activity. Reputation is t wo pronged i.e. both on the side of Appolosophy (it strengthens
our portfolio, provides us with ne w clients and promotes our abilities) and on the end of the

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Appolosophy
 customers (provides positive word of mouth, enhances brand equity and ensures ne wer end
users).

8.1 Revenue Model

Appolosophy’s revenue model is very simple.

Brands and individuals are served based on their development requirements. Appolosophy
derives capital from two main sources:

a. B2B and B2C Development Streams

Customers are charged according to their development requirements.

Charging for development work occurs in the following instances when customers:

- require a mobile application (three options available depending on spending power of the
customer and the size of their business, we have split our mobile/tablet application
development customers in three categories i.e. small scale businesses, medium scale
businesses and large scale businesses).
- intend to multiply the application on different mobile platforms.
- call for a dynamic 3.0 website.
- need a mobile optimized website.
- require search engine optimization (SEO) solutions.
- need an online viral marketing solution.
- intend to make use of social linking.

b. Revenue from innovative streams

In this instance Appolosophy’s development team:

- Designs, develops, deploys and markets it’s ow n mobile/tablet computing applications on

different app stores. Revenue is generated through the volume of do wnloads.

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Appolosophy
 8.2 Pricing Structure
Appolosophy’s pricing model is based on two strategies:

1. Competitive pricing strategy: is based on the need to charge significantly lesser than the
existing developers in the market even though they do not offer a broad and flexible spectrum
of services. The reason behind choosing this strategy is to quickly multiply customers within
a short span of time. The normal rate for getting an application developed for any mobile
phone starts from 20,000 Euros while the rate for getting a website developed can range
from 5,000 to 12,000 Euros.
2. Versioned pricing strategy: bifurcates the application development services into different
versions in order to provide flexibility to customers depending on the nature of services
required. Versioned pricing strategy is extremely successful in the Information technology
environments and is used to strengthen the pricing model by adding flexibility of choice to the
various configurations of a specific service.

The pricing structure for services offered by Appolosophy is mentioned in the table below:

Sr. Effort
No. Category (days) Cost/day Price

1 Application downloads for iPhone & other phones @ .70 Euros/app* variant variant €0.70

2 Applications for iPad/download* variant variant €9.00

3 Web site design and deployment (fixed price 3000€ per website) 5 600 €3,000.00

4 Branded Applications CAT 1 (SSB) - Simple integration 6 2,000 €12,000.00

5 Branded Applications CAT 2 (MSB) - complex integration 7 2,572 €18,000.00

6 Branded Applications CAT 3 (LSB/MNC) - highly complex integration 8 3,125 €25,000.00

7 Mobile optimized websites 2 1,000 €2,000.00

8 SEO (on page & off page) 2 2,000 €4,000.00

9 Multiplatform app - sync (5,000 per platform - minimum 3 platforms) 7 2,143 €15,000.00

10 Viral Campaigns + Social Linkages (for one specific project/website) 5 600 €3,000.00

Figure 30: Appolosophy Pricing Structure

• * = Flagship applications have variance in timing and development schedules as they are
developed in-house. Rate of 0.70 Euros coincides with the tariff of the app store for 1
do wnload.

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Appolosophy
• SSB = Small scale business/individuals
• MSB = Medium scale business
• LSB = Large scale business

9 Marketing
Today marketing and technology are joined at the hip. Appolosophy’s blends both marketing and
technology to infuse creativity in its core business function i.e. application development. The main
goal is to serve brands by leveraging their products/offerings and promoting them on the mobile
space.

9.1 Macro Environmental Scan

Macro environmental scanning by making use of the STEEPLED (social, technological, economic,
environmental, political, legal, educational and demographic) analysis helps in identifying the
impact of various external factors on Appolosophy.

Social: Smart phones are synonymous with productivity and accessing information on the go
therefore socially their acceptance level is extremely high. Nowadays all the mobile phones are
equipped with multimedia functions and the consumption pattern in developed countries is
extremely high. Only in Luxembourg the penetration of iPhone is extremely high with students,
professionals and even house wives o wning smart phones.

Technological: On the technological front ne wer versions of existing soft ware development kits
(SDKs) make it imperative for the development team to undergo rigorous training to get acquainted
with the upgraded features.

Economic: Prevailing economic conditions certainly do not complement Appolosophy’s business

strategy. Branding budgets lack depth during tough economic times and on another front buying
po wer of the consumers is also influenced as they will not upgrade their existing feature phone
to a smart phone or buy a tablet computer. Having said that still there is an immense majority of
smart phone users which can be served. The present economic turmoil signals a slo wer
penetration rate in developing part of the world i.e. Asia & Africa.

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Appolosophy
Environmental: Although mobile phones only make up a small percentage of the e- waste
mountain but still the manufacturers are working hard to wards achieving eco friendlier
standards. Nokia the largest handset manufacturer which produces a mobile phone every nine
seconds is following an EU Restriction of Hazardous Substances (RoHS), on a similar front Sony
Ericsson, Apple and Google are following suit. The environmental scenario surrounding mobile
phones does not affect Appolosophy in any way as it is engaged only in services rather than
hard ware modeling.

Political: Governments across the world realize the importance of information technology
development for successfully obtaining economic advantages. The current IT and development
policies in the EU do not affect Appolosophy.

Legal: Majority of Appolosophy’s work involves big brands like Apple, Google, Nokia, RIM and
Microsoft and all the applications developed are routed to the app store for deployment. The app
stores are responsible for accepting or rejecting any applications developed. Applications are
developed and deployed under a strict legal code enforced by the app stores and smart phone
manufacturing companies. However, protecting “Fusion” legally is imperative for the survival of
Appolosophy. For this purpose emphasis will be laid on patenting “Fusion” as soon as the
company is launched.

Educational: Technology is aligned with modern day education. A massive a wareness exists
among the masses about the recent developments in the technological arena. Although the same
may not be the case in developing countries. How ever with present focus initially in Luxembourg
and the EU; the educational environment is conducive for Appolosophy.

Demographic: The world’s largest independent app store ‘Get Jar’ estimates that one out of
their three users do wnloads a mobile application every single day. Regardless of gender, ethnic
composition or location smart phones can be found almost every where in the world. Age is a
defining characteristic in this business as the biggest customers of mobile applications lie in the
25-34 age brackets (ComScore MobiLens, November 2009).

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Appolosophy
 Technological Economic Environmental
Social
New upgrades Financial Stability Service based
High Acceptance For SDKs require Impacts offerings
Rigorous training consumption With no impact
of on environment
personnel

Political Legal Educational Demographical

Global acceptance Service delivery High level Free of ethnicity,

of in adherence of location
high end with app stores awareness or gender
technologies & manufacturer’s &
in political circles standards acceptance 18-34 age group
target

Figure 31: Appolosophy – STEEPLED Analysis

9.2 Highly engaged and highly networked marketing models

Present day businesses follow t wo prominent marketing models i.e. highly engaged marketing
model and the highly networked marketing model. These models were identified by marketing and
digital technology coach John Jantsch. Normally companies throughout the world are engaged in
one marketing model and then they shift towards the other one. Appolosophy adopts both the
models at the same time in order to extract full advantage from its marketing activities.

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Appolosophy
 Conversation

Staff Relationship

Highly
Customer Engaged Partnership
Business

Context Community

Connection

Figure 32: Highly Engaged Marketing Model

Tweets

Comments Videos

Highly
Search Networked Blogs
Business

Email Groups

Reviews

Figure 33: Highly Networked Marketing Model

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Appolosophy
The highly engaged marketing model represents traditional business building skill sets which
include relationship building, strategic partnering, treating staff as customers and engaging
prospects and customers in ways that promote connection, context and support community.

The highly net worked marketing model makes optimal use of online technologies to engage
prospects and customers through social networking, blogging, tweeting and many other tools to
gauge the psyche of the customers, to provide them with appropriate solutions and to extract
feedback.

Using both these marketing models simultaneously enables the company to build trust, generate
inbound leads, create fulfilling customer experiences, increase customer loyalty, shorten sales
cycles and create a positive buzz through every communication.

9.3 Marketing Tactics

Immediate/Short Term

Initially aggressive below the line promotions along with internet marketing strategies are
pursued.

A brief pipeline list of companies will be pursued initially to present Appolosophy’s services.
Additionally collaboration with advertising/promotional/web agencies, broadcasting and publishing
companies will be emphasized to generate further leads.

Another useful and time effective manner of ensuring clientele in Luxembourg and later on in EU;
is to tap into the contact bases venture capital or equity financers involved with Appolosophy.

Upon achieving critical mass the marketing and promotional tactics will change their direction.

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Appolosophy
Long Term

In the long run the following methods will be employed:

Fully Optimized Website: currently beta version of Appolosophy’s website is on top of

Google’s rankings. A key success factor will be the creation and linking of unique content to the
prominent websites and search engines.

Blog: the company’s o wn blog will be used to reach out to the professional communities to
spread a positive word of mouth about its experience, services, capabilities and value
proposition.

Social Networks: the blog will be linked to social networks like Facebook, Twitter, Mig33, Linked
in, Xing and many more in order to multiply the following and to spread positive word of mouth
about Appolosophy.

IT events: the marketing team will regularly visit the key IT events in Europe and other parts of
the world to promote Appolosophy and carry out business development.

Entrepreneurial Conferences: emphasis will be on participation in entrepreneurial forums and

conferences like TED, Y Combinator and seed funding forums across Europe to promote
Appolosophy.

App stores: deployment of t wo free applications on app stores in order to gain promotional
leverage and use of the advertising space available on the app stores.

Affiliate Marketing: focus will be on creating valuable partnerships and affiliations with
partners/customers to carry out cross promotional activities on a variety of websites.

Referrals & Relationships: create relationships with the media and plant articles, features and
stories on prominent newspaper/magazine websites.

Networking Mixers: carry out net working mixers in the campus to stay in touch with the tech
community and to continuously nurture ne w relationships.

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Appolosophy
Virals: emphasis will be laid on developing highly creative viral videos and promotional methods
to generate attention of the brands and to qualify them as customers.

9.4 Sales Pipeline

Sales pipeline includes a list of Appolosophy’s immediate targets:

- University of Luxembourg
- Cargolux
- Luxair
- Atelier
- P&T Luxembourg
- Spuerkees

10 Team
Fahad Zahid – Global Marketing, PR, Com munications & Business Development

Fahad has over 8 years experience in International Marketing, Business Development and Sales
in both the private and the public sectors with start-ups and Global 1000 firms.

Prior to starting up Appolosophy, Fahad was the Head of International Marketing for the Soft ware
Export Board – an agency mandated to promote the Information Technology industry
globally. During his tenure, he was pivotal in bringing foreign investment into the IT sector. As a
spokesperson for the Government and IT Industry, he has represented Pakistan at various
leading conferences and tradesho ws across the globe. He has featured in several live
interviews on International television channels. He has finalized several MOUs between Pakistan
and other leading IT destinations. He has identified new revenue streams and turned Soft ware
Export Board into a self-sustaining promotion agency.

Previously, he has worked on different managerial roles in various verticals like real estate,
manufacturing and advertising/publishing. He has extensive experience in designing and
delivering unique marketing/planning strategies and technical solutions for IT and
Telecommunication companies.

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Appolosophy
Fahad is currently concluding the M.Sc Entrepreneurship and Innovation program at the University
of Luxembourg. Prior to this, he has an MBA with emphasis on Marketing and a Bacherlors with
focus on Journalism.

Ivan Buncic – Technology Design, Development & Deployment

Ivan’s key competencies are marketing & business development, website design & development,
IT project management and net work administration.

He started as IT service manager at the Eminent Computers Company in Belgrade, Serbia in 2001
by carrying out IT configurations and network deployment in Municipality Councils in Belgrade. He
holds Microsoft Certified Systems Engineer certificate. Entrepreneur in soul he started his o wn
company Potpuni majstor in 2005 building w eb sites, branding campaigns and net work
deployment and design. He was involved in the biggest IT event in Belgrade 2008 called Sinergija,
organized by Microsoft where he installed more than one kilometer of cables and create a
network of 300 computers in one day.

Another important project he headed lead to the deployment and project management of the M-
Parking, payment via SMS trough mobile phone in Belgrade, Serbia. His responsibility was
network design, installation and equipment specification. Now, the M-Parking project is earning
more than 10 million Serbian dinars (around 100K Euros) daily to the City of Belgrade. He is the
o wner and cofounder of the interior design and home decorating blog w w w.sijalica.com and
sports society Serbia Off Road ( w w w.serbiaoffroad.com) designed by himself.

Organization

The organizational structure is intentionally created on a hybrid basis blending in marketing,

creativity and technological management.

Appolosophy is bifurcated into t wo distinct departments i.e. Marketing & Technology.

The marketing department is headed by the Marketing Director (Fahad Zahid) and under his
supervision the Creative Writers, Coordinator, Accountant, Visualizers, Linguistic Specialists,
Graphic Designers and University Interns will work.

The technical department is headed by the Technical Director (Ivan Buncic) and under his
supervision the Lead Apps Developer, Apps Developers, Junior Apps Developers, Multi Platform
Coders, IT manager and Web Developers will work.

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Appolosophy
The entire organization is headed by the CEO which in this case will be the investor with ample
technological management experience with an equity share in the company.

Figure 34: Appolosophy – Organizational Structure

11 Financial Analysis
Appolosophy is an entrepreneurial venture. In the beginning two options were available i.e. to
bootstrap or to acquire VC/equity funding. Bootstrapping in this case is not appealing as it
requires a lot of time and effort for a company to attain critical mass. One or t wo people can run
a small venture but to exploit possibilities in the mobile market on a global scale in terms of
soft ware development signify that it is critical to have the best development team on board.

A considerable amount of time and effort has been dedicated to devise a viable financial roadmap
(monthly calculations for services provided, resource expenditures, depreciation/amortization
along with earnings before and after taxes) for Appolosophy. The financial plan is highly detailed
and self explanatory. It is composed of the following elements:

• Income Statement Year 1

• Income Statement Year 2
• Income Statement Year 3
• Income Statement Year 4
• Income Statement Year 5

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Appolosophy
 • Statement of Cashflo ws
• Realistic Cashflo ws
• Optimistic Scenario
• Pessimistic Scenario

As mentioned in the pricing structure earlier on; emphasis is on capitalizing on a simple yet
effective value proposition of designing, developing and deploying services at rates much lower
than the market. A brief year wise summary of financial plan is mentioned below:

Year 1

The company will be established with minimal resources which can off set the initial equity
investment and generate enough revenues to provide a positive trajectory to the financial
structure. Initially we start up with nine resources i.e. Marketing Director, Technical Director, Lead
Apps Developer, Apps Developer, Multiplatform Coder, IT Manager, Web Developer, Visualizer
and Graphic Designer. Salary expenditure for the first month amounts to 27,ooo Euros. We scale
up wards in terms of resources to t wenty one by the end of year one. We file the patent in the
third month for ‘Fusion’ in order to successfully w ork on this soft ware platform and to orientate
the existing staff members with the technology. The financial plan is based on the assumption
that Appolosophy starts off with an initial investment of 1 million Euros. We breakeven in the
fourth month of operations and end the year with positive earnings after taxes amortization and
depreciation (EAT) of 110,088 Euros. At this point total earnings from startup have reached
342,129 Euros.

Year 2

In the second year of operations the existing resources are retained and the number of
resources remains uniform at t wenty one. We consistently scale up the revenues by attracting
more clients to the portfolio and by the end of year t wo we generate EAT of 109,693 Euros. The
total earnings from Appolosophy have reached the 1,127,960 Euros mark.

Year 3

We start off the third year with a ne w office premises and have invested in newer soft wares
and equipment ( workstations, scanners, cameras, smart phones and tablet computers). The EAT

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Appolosophy
remains steady at 112,063 Euros mark. The total earnings from Appolosophy have crossed the 2
million Euros mark and have reached 2,151,602 Euros mark.

Year 4

In year four we start the process of aggressively filing patents for ne w mobile/tablet computing
applications. We witnessed strong gro wth in flagship applications which were do wnloaded by
end users from app stores therefore we allocated a portion of the company’s resources and time
to developing more flagship applications. We obtain EAT of 93,588 Euros. Total earnings of
Appolosophy at this point amount to 2,969,408 Euros.

Year 5

During year five we touch the highest peaks of our developmental endeavors and on several
occasions generate more than 200,000 Euros per month. We finish the fifth year with EAT of
85,530 Euros. Appolosophy’s total earnings touch the highest peak of 3,667,610 Euros.

Net Present Value (NPV), Weighted Average Cost of Capital (WACC), Terminal Growth
& Business Plan Value

Net Present Value of Appolosophy is: 2,938,520 Euros.

Weighted Average Cost of Capital: 10%

Terminal Gro wth Ratio: 5%

Business Plan Value: 8,909,706 Euros.

We have calculated these figures based on a very realistic combination of marketing, service,
development and technological excellence. “Fusion” plays a pivotal role in infusing innovation to
Appolosophy’s business model.. Optimistic/pessimistic scenarios and further details can be
obtained from the detailed financial plan attached along with this paper.

It is important to note that all the figures represented in the financial plan are based on
assumptions which have can be altered at any point in the future. The figure of 1 million Euros
as initial equity investment is flexible and negotiable. The purpose for quoting this figure can be

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Appolosophy
attributed to the equipment and resource retention costs during the first year of operations.
Additionally, Venture Capital firms are also interested in financing high risk and high return
ventures.

12 Action Plan
The action plan is the most important component of the business plan. It serves as the strategic
roadmap for Appolosophy and provides a clear direction to our entrepreneurial endeavors.

The action plan consists of four key strategies which are market entry strategy, scalability
strategy, resource retention strategy and customer acquisition, retention and extension strategy.

12.1 Market Entry Strategy

Appolosophy’s market entry strategy is composed of t wo phases:

a. First Phase: In the first phase primary focus is on carrying out development work in
Luxembourg. The Luxembourgish contacts of the venture capital firm will be focused upon.
Emphasis will be on providing services to the pipeline list of customers mentioned earlier.
Simultaneously we will net work with the advertising/promotional agencies and
broadcasting/publishing companies to find suitable leads which can be processed. In this
phase priority is on net working with influential market players, providing services to prominent
Luxembourgish companies and developing a strong portfolio for Appolosophy which can be
used for attracting prospects in the future.

b. Second Phase: With a strong portfolio and market contacts in place; we will branch out in
other parts of EU to attract suitable leads which can be processed in the second phase.
Partnerships will be created with advertising/promotional agencies outside Luxembourg and
referrals from existing clients will be used. Similarly, contacts of the venture capital firm will
also be capitalized upon.

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12.2 Scalability Strategy
Scalability strategy in Appolosophy’s context refers to the company’s ability to increase revenues
while marginal costs decrease with the provision of the services. Our core development platform
‘Fusion’ has a built in interface for choosing colors, fonts, languages, functions and operating
system portability. Relying on ‘Fusion’ will significantly decrease development costs once the
platform is introduced and development is carried out. We are retaining a total of 21 resources
including the owners of the company. Out of these 21 resources only 12 resources are working
on the developmental part of the company. ‘Fusion’ provides the necessary leverage to
Appolosophy to branch out into other areas for further monetization.

After a certain amount of time many other companies will imitate Appolosophy’s business model
and significant competition in this arena will be created. Conversely, since Appolosophy is first
concentrating on Luxembourg and then moving on to other parts of EU and the world to attract
business therefore the first mover advantage is prevalent. We intend to rapidly multiply the client
base and create as many applications for brands as possible to generate revenues and break
out into other areas which present future gro wth.

Focus will be on two key areas in the long run:

a. Mobile Browser Development and Testing: Launch Appolosophy’s mobile web

bro wser which will be compatible with all mobile phones and create an application testing
suite for all mobile platforms.

b. Application development for the Sixth Sense Technology: In the future revenues
from the core operations of Appolosophy will be channeled into creating applications for the
sixth sense technology. Sixth sense technology is created by students of the
Massachusetts Institute of Technology (MIT) and relies on motion based computing.

12.3 Resource Retention Strategy

Highly talented development resources are they key to the success of Appolosophy. A couple of
years ago, it was extremely difficult to find resources with relevant experience in terms of
application development for mobile phones and tablet computers. Nowadays with the introduction
of soft ware development kits and usability advancements there are lot of professionals working
in the arena of application development.

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Appolosophy
Our key focus is on hiring a very talented development team. The resource retention strategy
revolves around five key elements:

a. Environment
Environment plays a pivotal role in motivating the employees. Appolosophy provides an
environment which accentuates and encourages creativity, fun, diversity, innovation and
spontaneity.

b. Relationship
We intend to carefully script the first 90 days of every employee which becomes a part of
Appolosophy. This scripting results in guiding the ne w employee at every step and ensuring
complete integration with the rest of team members. Studies have proven that the number one
reason for employees to stay on a job or leave it is not due to pay or benefit packages. Infact the
number one reason is the relationship with supervisor or manager. We intend to build unique
relationships with our employees which are based on trust, friendship and continuous
cooperation.

c. Support
The management will exercise a behavior which is sensitive to the needs of the employees and
continuous support will be provided to them both on moral and financial grounds. Ample
opportunities for further training and education will be provided to all the team members at
continuous intervals.

d. Growth
A closer look at the financial plan attached along with this paper sho ws that emphasis is placed
on increasing the salaries of all the staff members at continuous intervals of one year. These
salary increments coupled with the excellent work environment and cordial relationships will bind
the employees with Appolosophy.

e. Compensation
In the long run Appolosophy plans to integrate health insurance, travel expenses, vacation plans,
free food and training for all the employees. Furthermore, employees will be provided with special
bonuses on different occasions like Christmas, Ne w Year, etc. With the passage of time we
also plan to introduce project delivery bonus for all team members upon successful completion of
each project.

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Appolosophy
There are a lot of developers who build applications on their o wn or carry out free lance work
with very limited earnings or benefits. We intend to hire the best resources and bind them to
Appolosophy with beneficial financial packages, constant gro wth and learning opportunities
coupled with an excellent environment and support mechanisms.

12.4 Customer acquisition, retention & extension strategy

We follow a streamlined approach for acquiring, retaining and extending the customer base for
Appolosophy.

Three Key Phases:

We follow three key phases which are:

a. Customer Acquisition: Appolosophy being an entrepreneurial startup has to initially adopt

a t wo prong approach for acquiring customers. Initially, customers are acquired through
tapping into the resources of the Venture Capital Company which has partnered with
Appolosophy. Secondly, partnerships with the advertising/publishing agencies and
broadcasting companies will assist in terms of generating valuable leads and processing
them.

b. Customer Retention: Once the existing customers have been serviced i.e. application
development on the mobile/tablet environments; focus is on providing auxiliary services to the
same customers in order to bolster their marketing and outreach efforts on the web space as
well. Furthermore, the option of providing the next level of service/upgrade for the initial
services is always available.

c. Customer Extension: takes place through referrals from the existing customers.
Appolosophy’s customer base will be multiplied through positive word of mouth from existing
customers to future prospects. There is also a possibility to tap into the customer/partner
base of the existing clientele.

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Appolosophy
Figure 35: Customer acquisition, retention and extension strategy

Contextual Factors

d. Mar keting Orientation: All activities are carried out with absolute focus on the customers.
The intent is to not only supply services to the customer but also provide them with additional
benefits like troubleshooting/maintenance of the services provided. Furthermore, an extremely
efficient customer service representative will also be available in the future to listen to the
queries of the existing clients. Initially the Coordinator will carry out the duties pertaining to
customer services.

e. Value Creation: Appolosophy’s focus is on creating value on both sides of the equation i.e.
value for customers and value for stakeholders. Stakeholders in this case represent the
venture capital company. Value will be created for stakeholders through s wift acquisition and
servicing of the clients which will also be reflected on the financial statement of
Appolosophy.

f. IT Innovation: Emphasis will be on staying up to date with the latest trends and best
practices relevant to the company’s areas of expertise. With the passage of time employees
will be trained for familiarization with ne w technologies and strengthening of the company’s
knowledge base. While dealing with the customers emphasis is placed on mapping out their

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Appolosophy
 buying behaviors and preferences to tap into other prospects with similar needs. Reliance on
ne w technologies and continuous innovation in the service line up will prepare Appolosophy
to provide better services to its customers every step of the way.

13 Conclusion
This amalgamation of pedagogical observations coupled with practical analysis of the
mobile/tablet computing and web 3.0 environment in the form a detailed yet concise business plan
highlights the need to enter this market segment.

Primary data, secondary data and cited references further emphasize the need for establishing
this business quickly in order to gain momentum as a first mover.

Media and entertainment have moved beyond culture and reinforced their presence as one of the
key driving forces in the global economy. The conventionally trusted mediums like print, radio and
television are all over the world locked in the battle for consumer attention and for this purpose
they pursue innovative solutions. We have defined that despite the presence of these mediums;
the mobile space is not yet completely discovered from the branding perspective. Communicating
to customers through this medium can prove to be an additional revenue stream for companies
interested in pursuing customers beyond the conventional sources of attracting attention.

We are facing a global economic downturn which is eventually going to take the shape of an
economic upturn but then go down again. This phenomenon is referred to as the “W” shaped
recession or the rollercoaster recession. In these complicated economic situations it’s critical for
companies to find fresh alternatives for survival. The business plan demonstrates the creative

Problem
ideas which can be adopted by individuals and brands to attain added promotional benefits and
extended outreach.

Extending outreach of a particular brand on the internet is commonly perceived and achieved
through creation of web sites and integrating it with the social networks like Facebook or Twitter.
However just having a website is not enough these days. Consumers have become more
demanding and their expectations from their favorite brands have considerably increased.
Appolosophy’s services reveal that it is much better to diversify offerings and brand spread on
multiple mobile platforms and tablet computing devices. Reaching to one customer and reaching
to many customers simultaneously creates tremendous difference in terms of brand equity,
loyalty and value.

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Appolosophy
Mobile phone applications are playing a pivotal role in influencing the buying behaviors of
customers. By providing simple information like price comparison customers are lured to wards
various promotions. Mobile coupons are also gaining popularity among the masses. Obtaining
feedback from the customers through the mobile web is also extremely effortless as the
consumers have the option of providing their responses in one click or touch.

National Public Radio (NPR), an internationally reno wned producer and distributor of
noncommercial news, talk and entertainment programming stepped up its operations to explore
the mobile space. NPR took its time and made the right moves by first relying on podcasts and
then created its o wn mobile application which got a million downloads in the first month on the
Apple Appstore. Now NPR is consistently multiplying its customer base through heavy reliance on
mobile technologies. In this whole process NPR is creating a positive impact through its
programming. (Mobile Active archive, May 2010). Through this paper we have sho wn why
brands should create presence on the mobile sphere and what are the positive consequences
associated. On a similar note we have exemplified ho w companies can positively influence the
buying behaviors of their target customers and extract rapid feedback through reaching out to
them on the mobile web.

In a nutshell, the problems identified in the beginning of the paper are addressed thoroughly.

The key outcomes of this paper identify the following:

a. The changes taking place in the entertainment economy and the exploitable opportunities
available i.e. mobile/tablet apps and web 3.0 market,
b. Introduction of a better business model can significantly impact the gro wth of a company
engaged in this business,
c. Detailed analysis of the mobile/tablet application and web services market, and prevalent
trends,
d. A business concept focused on disruption and innovation while at the same time
providing brands/individuals significant room for improvement in promotions, outreach and
maximization of ROI.
e. A detailed market, situational and financial analysis which gears a startup to pursue a
realistic gro wth pattern to achieve excellence in this segment of the market,
f. Practical examples that demonstrate the depth of solutions provided and reflect our
creative abilities,
g. Attractiveness of the business concept and the market segment thereby acting as a
catalyst to arouse the interest of the VCs/equity financers and business angels.

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Appolosophy
We believe in practicality and this paper serves as a successful roadmap for the establishment
of ‘Appolosophy’ in the near future. The idea is unique, valuable and implementable, the market is
poised for further gro wth and individuals/brands realize the importance of this technology.

The contribution of this paper is t wo pronged i.e. academic as well as practical. It would have
been very easy to write either an academic thesis or a straight for ward business plan. Choosing
one option was difficult as emphasis was on melding both the inputs to obtain the best results
from both practices.

Academic contribution is accentuated by the fact that the paper addresses the problems, cites
appropriate references and provides probable solutions relevant to this area. It provides thought
provoking insight into a new dimension of communication.

Practical contribution of this paper is accentuated by the fact that it serves as a roadmap for
starting up in the niche of mobile applications development in Luxembourg. The contents of the
business plan clearly explain the market potential and emphasize the development of an
innovative business concept in the domain of mobile /tablet applications and web services. In a
the coming fe w weeks this plan will be presented with some modifications to business angels
and venture capitalists and there is a fair chance for Appolosophy to become the first mobile
oriented soft ware firm in Luxembourg.

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 76
Appolosophy
14 References

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15 Glossary of Technological Terms

RIM (Research in Motion) – the manufacturer’s of Blackberry smart phones.

SDK (Software Development Kit) –used for designing & developing mobile applications.

Tablet device – a device using the screen for input rather then keyboard.

WEB 3.0 – New generation of internet powered by semantic understanding of user input.

iPhone – Apple touch screen mobile telephone device.

iPad – Apple touch screen computing device.

Android – Google platform for mobile devices.

Java – a programming language for the web and mobile environments.

C++ - programming language for developing professional applications.

OPL.NET (Organization Programming Language) – programming language used for

developing applications on Symbian operating platform.

CSS (Cascading Style Sheets) – style sheet language used for describing semantics.

J2ME (Java Platfor m Micro Edition) – programming language for mobile and embedded
devices.

SEO (Search Engine Optimization) – process for enhancing rankings of websites on search
engines.

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16 Annexures and Supporting Data

16.1 Application Development for Brands (workflow)

2 3
1

Analyze brand Examine the Identify key

“abc” & study potential decision
its offering makers
mobile & its benefits in brand
presence “abc”.

5
4 6
Prepare
Initiate Approval/
mockup(s)
contact Agreement/
of proposed
with TORs
solution(s) /
Brand 50% payment
app(s)
“abc”
and its cost*

7 8 9

Evaluate
Design Develop deploymen
App/write codes App/carr t
y options
Beta
tests

10
11

Implement/
deploy on
appstore(s)/ Maintenan
Remaining ce
Upgradatio
50%
n
payment
Feedback

Figure 36: Applications development for brands workflow

*At step 5 customers will have access to fusion in order to determine what suits them best.

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16.2 Flagship Applications (Workflow)

1 2 3

Analyze Unique idea Screening

current Generation/ the
App market brainstormin Idea pool
scenario g

4 5
6
Short Prepare storyboard/
listed mockup(s)/workflow/ Designing
Unique functionality the
idea sequences App/coding
& its of the finalized idea
critical
CB
analysis

7 8 9

Aggressi
Evaluate ve
Building the deploymen
App/beta testing Guerilla
t Marketin
Options g
& pricing

10 11

Implemen Maintenan
t/ ce
deploy on Upgradatio
appstore( n
s) Feedback

Figure 37: Flagship Applications workflow

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Appolosophy
16.3 Website Development (Workflow)

1 2 3

Client Terms of
Reference/Defin Structurin
interaction,
ed g/
Inputs &
Requirements Usability
Discussions sketch
Agreement

4 5
6
Interaction with the
Detailed Client & finalizing the Designing the
Prototypin Development site/
g platform, coding/50%
Features, add ons & payment
price

7 8 9

Layering
SEO &
Usability with
using
& beta Social
semanti media
testing cs

10 11

Layering
Launch
with
Maintenan
Mobile
ce
media
Upgradatio
/workspace
n
s/
Feedback
Remaining
50%
payment

Figure 38: Website De velopment workflow

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Appolosophy