Cotrugli Business School MBA Program 2009 Own Route Website Business Plan Presentation

Albena Dyakova, Alina Pavelescu, Emil Dimitrov, Lucian Mataoanu, Mihaila Karshakova, Olivera Stojkovska

Rovinj, June 2011

Content
Introduction

1. 2. 3. 4. 5. 6. 7. 8.

Organizational Background and Purpose Market Analysis Product and Service development Marketing Financial Data Organization Structure and Management Ownership Risk Factors

Conclusions
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Introduction
We all know that the shortest distance between 2 points is a straight line. As simple as that! Bucharest to Ljubljana is a straight line. And Internet is very helpful in finding the right distance

Introduction OwnRoute idea

And the line became:

&
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Organizational Background and Purpose OwnRoute Mission and Vision

How do we get there?

The mission of Ownroute is to give people the opportunity to discover the world in their own way. Our team works to respond to people preferences by providing them the possibility to choose their own means of travelling.

We want to become the most substantial source of travelling information for the people in Europe and afterwards to spread our services worldwide.
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Organizational Background and Purpose OwnRoute Business Description

Proposed Objectives
To provide quick and clear information to organize a travel To offer different itineraries depending on customer preferences (time, money, safety, phobias, etc.). To provide instant comparison on possible itineraries To be easily accessible through internet To offer the best price for the customers

Estimate of the funds necessary

Ownroute will generate money starting month 5 after launching the website and the maximum difference between cash in and cash out is 46,165

Market Analysis
Market size

Europe with the highest penetration rate in the world

Estonia, Slovakia, Latvia, Czech Republic and Slovenia on top 5.

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Market Analysis
Market growth rate
the population won t change dramatically for the future 10 years; the changes will vary in the range (-0,93; + 0,80); as the users growth rate is calculated of the basis of the population data, most probably the changes in the population will affect the penetration rate in same direction and extent.

Market profitability

Industry Cost Structure

Market Analysis
Distribution channels
Direct channels;

Key Success Factors

 Sign contracts with suppliers

 Develop software

 To establish as preferred organizer for travel solutions 9

Product and Service development Sales and Market share estimates

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Product and Service development Sales and Market share estimates

1. Types of customers:

2. Promotional Mix:
B2B B2C

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Marketing
OwnRoute Website Customers
Segment Segment 1 B2C Business people who need to travel because of business purposes; Segment 2 Tourists people who travel in their free time and visit different places in Eastern Europe; Segment 3 People who travel to their relatives Bus companies; during the different holidays; B2B Airplane companies: y y low cost; regular prices;

Railway companies;

We combine routes according to the personal preferences.

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Financial Data
Milestones in website life

After the first year the business needs no more money to be financed from outside, having an organic growth.

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Financial Data
Profit Margin is positive starting second year, when the business is stabilized In the following years, as a result of growth, the profit margin is decreasing but in the same time contributing to the overall growth to higher income and profit.
Year Profit/Loss Revenues Margin 2012 -3,712 20,530 -18% 2013 39,012 95,431 41% 2014 52,621 142,096 37% 2015 85,127 257,427 33% 2016 102,165 368,516 28%

Return on Equity and Profit Margin evolution

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Organization Structure and Management

Flat Structure - common in entrepreneurial start-ups Virtual Network - exists within a network of alliances, using the Internet Divisional Structure - each of us will be responsible of a group of countries as the Product Manager of that group The structure is dynamic, with a high rate of change and organic functions.
1ST and 2ND YEAR Product Manager 1 y y y Providers relationship Market research Financials Product Manager 2 y y y Providers relationship Market research Financials y y y Providers relationship Market research Financials Managing Director & Product Manager 3 Product Manager 4 y y y Providers relationship Market research Financials Product Manager 5 y y y Providers relationship Market research Financials Product Manager 6 y y y Providers relationship Market research Financials

Staff 1 Updates the website information; Data maintenance; Provide support for the

Staff 2 Updates the website information; Data maintenance; Provide support for the

y y

y y

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Organization Structure and Management

3RD YEAR Product Manager 1 y y y Providers relationship Market research Financials Product Manager 2 y y y Providers relationship Market research Financials y y y Providers relationship Market research Financials Managing Director & Product Manager 3 Product Manager 4 y y y Providers relationship Market research Financials Product Manager 5 y y y Providers relationship Market research Financials Product Manager 6 y y y Providers relationship Market research Financials

Staff 1 y Updates the website information; y Data maintenance; y Provide support for the Product Managers.

Staff 2 y Updates the website information; y Data maintenance; y Provide support for the Product Managers.

Staff 3 y Updates the website information; y Data maintenance; y Provide support for the Product Managers.

4TH and 5TH YEAR Product Manager 1 y y y Providers relationship Market research Financials Product Manager 2 y y y Providers relationship Market research Financials

Managing Director & Product Manager 3 Product Manager 4 y y y Providers relationship Market research Financials y y y Providers relationship Market research Financials Product Manager 5 y y y Providers relationship Market research Financials Product Manager 6 y y y Providers relationship Market research Financials

Staff 1 - supervisor y Data maintenance; y Reporting; y Provide support for the Product Managers.

Staff 2 - supervisor y Data maintenance; y Reporting; y Provide support for the Product Managers.

Staff 3 - supervisor y Data maintenance; y Reporting; y Provide support for the Product Managers.

Staff 4 y Updates the website information; y Provide support for the Supervisors.

Staff 5 y Updates the website information; y Data maintenance; y Provide support for the Supervisors.

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Ownership
The ownership of the company will be split into the six members as follows:
Lucian Mataoanu member and Managing Director - 20% Emil Dimitrov member - 16% Albena Dyakova member - 16% Mihaila Karshakova member - 16% Olivera Stojkovska member - 16% Alina Pavelescu member - 16%

The first investment is 20,000 euro, 10,000 euro for the website creation and 10,000 euro for equipments and other expenses, to be given in 11 months according to the table below:
Euro Lucian Mataoanu Emil Dimitrov Albena Dyakova Mihaila Karshakova Olivera Stojkovska Alina Pavelescu Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 627 502 502 502 502 502 Month 7 503 402 402 402 402 402 Month 8 500 400 400 400 400 400 Month 9 377 301 301 301 301 301 Month 10 110 88 Month 11 107 85 757 605 605 605 605 605 757 605 605 605 605 605 757 605 605 605 605 605 757 605 605 605 605 605 757 605 605 605 605 605

88

85

88

85

88 88

85 85

Total

3,782

3,782

3,782

3,782

3,782

3,137

2,513

2,500

1,882

550

532 30,024

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Risk Factors
Technology Unfamiliarity

Size of the Sale

Data Accuracy Length of the life product

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Conclusions
Why OwnRoute?
Ownroute represents an investment in a unique project that aims to change the way people are
searching for most suitable route and means of transportation all over the world.

It will be a portal All on the same roof

Dedicated Team

200 years Innovative idea

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Questions and Answers

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