Business Proposal

1
Business Proposal

• GlobalTech.com
• Quality Hardware Electronics
• Jeff Jennings
• Justin Jenkins
• Ron Korkow
• David Johnson

2
Introductions
3
The Team

• Jeff Jennings, CEO/President
• 10 years experience as Project Manager and VP of
  Operations at InteliSoft Corp. (1993-2003)
• Projects varying from developing and marketing
  tutorial software to introducing wholesale
  products to the retail market
• Bachelor of Business Management and Computer
  Science from MIT
• Associate of Occupational Science in Information
  Technology from FCT

4
The Team

• Justin Jenkins, Vice President
• 8 years experience in E-business management field
  and proposing business propositions with leading
  edge technology companies for the latest
  technology electronics.
• Raised efficiency of customer service and lowered
  product costs by 15 on an annual basis.

5
The Team

• Ron Korkow, Director of Web Development
• Five years experience as Director of Web
  Development at Enema Graphics and Design Inc.
• Advanced training in the application and usage of
  QuarkXpress 4.0, Adobe Photoshop 7.0, Adobe
  Illustrator, and Microsoft FrontPages
• 5 year track record demonstrating strong
  analytical and problem solving skills, computer
  proficiency, and ability to follow through with
  projects

6
The Team

• David Johnson, Director of Sales
• Software/Hardware sales manager with nine-year
  history as sales repfor Spam-U Inc.
• Increased sales to 5.3 million in 2004 (180
  over target)
• Added new fortune 500 customers to client base,
  including Cyrix, and Texaco

7
Business Concept
8
Overview

• GlobalTech.com is an expanding retailer of PC
  hardware components and electronics, dedicated to
  providing the best value and online purchasing
  experience for all computing and electronic
  needs. Serving corporate professionals, students
  and home users alike, GlobalTech.com guarantees
  that its customers will value our premier
  services.
• GlobalTech.com strives to make itself the
  ultimate online superstore for computer
  components and consumer electronics with the
  widest selection and best prices.

9
Mission Statement

• Global Tech is built on the assumption that the
  consumer is an intelligent individual who expects
  the highest quality of products and service.
  Smart business people who aren't computer
  hobbyists rely upon quality vendors of reliable
  hardware, service, and support. They need to use
  these quality vendors as they use their other
  professional service suppliers, as trusted
  allies.
• Global Tech is such a vendor. It serves its
  clients as a trusted ally, providing them with
  the loyalty of a business partner and the
  economics of an outside vendor. We make sure that
  our clients have what they need with maximum
  efficiency and reliability. Many of our clients
  conditions are mission critical, so we give our
  customers the assurance that we will be there
  when they need us.

10
Mission Statement Cont

• To offer quality products at reasonable prices
  as well as unmatched customer support in order to
  promote technology and maintain customer
  satisfaction and loyalty

11
Products and Market
12
Market Summary

• Market past, present, future
• Past
• Most PC components, hardware and electronics
  were only available at retail stores or direct
  from manufacturer Due to the relatively low
  number of secure e-commerce sites that were
  available in the past, the market was only
  beginning to grow
• Present
• Currently over 80 of consumers have made online
  purchases within the last year
• Future
• Merchants believe that online sales will grow
  39 in 2005

13
Product Definition

• GlobalTech.com markets the highest quality,
  in-demand products including
• PC components (motherboard, video/graphics,
  display and accessories)
• Consumer electronics (digital recorders, PDAs,
  sound systems, DVD systems)
• Customizable Desktop and Notebook systems
• Customized Server systems and support

14
Competitive Analysis

• Tigerdirect.com
• Strengths
• Good Web page Layout
• Detailed information and pictures on their
  products
• Well known
• Weaknesses
• No customer reviews on products
• No forums
• Hard to find certain items

• GlobalTech.com
• Strengths
• Highest quality, in-demand products
• Excellent customer support
• Individually customized and personalized services
  
• Weaknesses
• New to the market
• Possible delays in production/shipping during
  launch of project

15
Competitive Anal. Cont

• Problems and opportunities
• Problems of other companies
• Overlooking the individual customer
• Lack of personalization of service to the
  individual
• Quality of service before and after the sale
• At Global Tech, we know that the individual will
  constitute the majority of our sales, therefore
  we will take care and offer personalized support
  for every customer no matter the size of the sale.

16
Features Benefits

• GlobalTech.com products and services will
  dramatically affect the way our consumers work.
  Our systems size has dramatically improved We
  are smaller, faster and better than other
  competing manufacturers. Save time and space,
  while improving quality and increasing
  productivity. Have the newest and latest
  technology by taking a giant step ahead with
  GlobalTech.com.
• Combining the efficiency and functionality of
  office systems and the computing power of tricked
  out desktop PCs, GlobalTech creates a new
  generation of all-in-one PCs, additional
  components, and the latest electronics. Bringing
  discriminating consumers the best of both worlds.

17
Features and Benefits

• Desktops
• Featuring Intels Pentium 4 Processor 550 with
  HT Technology up to 3.4 Ghz providing the power
  to drive any advanced gaming system.
• Video/Graphics
• All systems featuring ATI technology w/ quad-pipe
  rendering, and high performance 3D, delivering a
  dazzling visual experience with the highest
  performance in its class.
• Display
• Feature new exclusive xBRITE display technology
  for sharp contrast, crisp graphics and
  breathtaking color resolution during video
  playback give users a home theatre experience.

18
Features Benefits

• Mobility
• Integrated wireless connectivity in our desktop
  models with IEEE 802.11b/g networks also comes
  standard across the board, allowing for mobility
  and expansion.
• Server technology
• Now featuring higher speed POWER technology, AIX,
  and RedHat Linux support the GT eServer K5 is
  especially well suited for commercial mainstream
  applications and 64-bit high performance
  computing (HPC) environments in up to 32-way
  symmetric multiprocessing configurations (SMC) to
  provide the power, flexibility, scalability and
  security needed for mission-critical applications
  at a very affordable price.

19
Applications

• GlobalTech.com provides a valuable service to
  many types of consumers, ranging from individual
  home users to small and large corporations.
• We consider each of our customers equally
  valuable to the growth and integrity of our
  corporation. Total customer satisfaction" is
  the goal that our workforce commits and strives
  to obtain. We work hard to make sure your online
  purchasing experience is the smoothest, most
  pleasurable online purchase possible.

20
Product Specifications

• At GlobalTech.com, we provide consumers the
  service of assembling and shipping customized PC
  systems. We welcome and benefit from consumers
  personalized, individual needs. This is a great
  advantage to our company and the variety of
  market consumers that we service.

21
Product Specifications

• We also provide standard or customized server
  systems, products, and applications. This feature
  allows consumers and corporations the advantage
  of having all and any additional components
  necessary to run their operations.

22
Product Specifications

• And we offer home electronics and accessories
  with the widest selection and best prices from
  the worlds leading manufacturers, including
  Hewlett-Packard, Nikon, Samsung and many more.

23
Marketing Strategy
24
Communication Strategies

• GlobalTech.com will target consumer's and
  communities world wide. Suiting the specific
  demands of the average suburban teen to the
  middle-aged, white collar bachelor, with custom
  gaming machines, or the average personal computer
  needed to perform simple tasks, like email or web
  browsing.
• GlobalTech.com will also target small business
  and corporate needs, providing industry standard
  equipment and server technologies.

25
Advertising

• Strategy and execution
• Minimal amount of costs for advertisement with
  the most rewarding feedback or return of interest
• Publish on-line brochures, catalogues and sales
  literature for cost reduction and improved
  availability.
• Multimedia marketing, utilizing television,
  radio, and newspaper ads to target the offline
  community.
• Use tools, not unlike Google's AdWords, to deploy
  strong search engine marketing.

26
Public Relations

• In order to help further our public relations
  campaign, GlobalTech will...
• Build a community forum to enhance our
  reputation and enhance consumer perception,
  offering step by step tutorials for hardware and
  software use.
• Publish articles and advice to become an
  established authority in consumer electronics.

27
Public Relations cont

• Provide online resources to common customer
  questions or complaints.
• Archive important information for internal or
  associate use, providing an in-depth knowledge
  base for 24-7 customer support.
• Promote competitions and contests related to our
  goods and services.

28
Pricing

• GlobalTech.com will focus on four methods of
  pricing
• Optional product pricing - attempt to increase
  the amount customer spend once they start to buy.
  Optional 'extras' increase the overall price of
  the product or service.
• Penetration - The price charged for products and
  services is set low in order to gain market
  share.

29
Pricing cont

• Promotional pricing - Pricing to promote a
  product or service (i.e. 50 off, purchase of
  second item, etc.)
• Value pricing increase price of product by
  calculated percentage based on wholesale or
  purchase price, with the greatest value in mind
  for the consumer

30
Distribution

• Distribution strategy
• UPS Ground 5 day delivery
• GlobalTech.com has a UPS account and contract
  agreement to pay monthly costs/fees to UPS based
  on projected packaging/shipping details (length
  of time, distance travelled, weight of product,
  etc.)
• Arranged online for UPS to deliver products from
  manufacturer to our warehouse, pick up products
  at warehouse to deliver to consumers

31
Project Goals and Resources
32
Project Goals

• Ultimate goal of project
• To become one of the nations leading online
  retailers of PC components, electronics and
  desktop/notebook/server systems
• To provide great service and products to our
  consumers
• To reach 5 million in sales within our 3rd year
  of business

33
Success Metrics

• First year goals
• Invest in advertising w/minimum costs and max.
  results
• Create a great environment and reputation for
  online purchases of our products and services
• Get the product out to the consumers w/minimal
  costs and downtime
• Offer excellent and personalized customer support

34
Success Metrics

• Measures of success/failure
• Amount of sales per consumer
• Productivity versus downtime
• Total funding for products and services
  (workforce time and labor, wages, shipping
  charges, media, etc.)
• Any or total profits
• Consumer feedback (testimonials and surveys)

35
Success Metrics

• Resources for Success
• Warehouse and Main Office, office supplies,
  in-house tools and equipment
• Tools and material for marketing and
  advertisement
• Transport and channels of distribution
• Great relationships with all areas and people
  involved, from employees to vendors to consumers

36
Description

• Schedule
• Purchase 80,000 sq ft warehouse and office area
• Purchase equipment and materials
• Invest in UPS account for delivery
• Hire employees with great incentive and benefits
• Purchase products and materials at below
  wholesale price
• Market the products by ways of internet, TV,
  catalog and other medias
• Ensure on-time delivery and quality minimum to
  no downtime
• Offer exceptional online service and other forms
  of consumer support

37
Description

• Budget we have projected an amount of 1.75
  million will be needed for expenses including
  purchases and costs of the following
• Space
• Equipment and materials
• Products
• Delivery arrangements
• Employee wages and benefits
• Marketing/advertisement
• Other expenses (i.e. utilities, upkeep, services)
• We have projected to have increased and received
  total profits worth twice the amount within three
  years

38
Resources

• People
• Initial hire 15 employees
• Projected to evolve to a max of 100 employees
  over a period of 2 years
• Negotiate fair wages and benefits, including
  discounts on products, insurance plans,
  flexibility
• Stress projected productivity and excellent
  service goals
• Open communication and in-house support for
  employees at all times

39
Resources

• Location
• 80,000 sq ft warehouse and main office located in
  West Knox, TN
• Negotiated a total cost of 28,000 annual
  contracted 3 year lease
• Outside employee parking within walking distance
  of entrance

40
Resources

• Equipment/materials
• Tools (PC maintenance kits, etc.)
• Computers and network materials (cables, routers,
  phones/fax, printers/scanners)
• Office supplies
• In-house transportation
• Production equipment and machinery
• Cleaning and sanitation supplies
• Estimated expenses within 275,000 over three
  year period

41
Resources

• Manufacturing
• Products and materials for production
• Tools and equipment
• Maintenance of equipment
• Motivation and determination to stay on schedule
  pertaining to production goals
• Strategically minimize costs of production and
  downtime

42
Resources

• Sales
• Marketing/advertisement materials and expenses
• Research and marketing staff
• Wholesale or contract agreements with small or
  large corporations

43
Resources

• Support
• Professional support team for both consumer and
  employee
• Encourage customer feedback of products and
  services
• Provide great service and benefits

44
Financial Breakdown
45
Business Growth Schedule

• The following is a representation of our
  projected schedule of initiation and development
  over a period of 12 months during our first year
  of business.
• Each phase represents approximately four months
  out of a total 12 month period.

46
Business Growth Schedule

• Phase 1
• Presentation to potential investors
• Marketing and advertising
• Product website/catalog completed
• Warehouse lease signed
• Sales rep selection finalized

• Phase 2
• Warehousing
• First product orders from consumers
• First orders from manufacturers
• Additional sales reps being recruited

• Phase 3
• Mailing system 
• New corporate brochure 
• First shipments from our warehouse
• Collect customer feedback on products and
  services

47
Estimated Expenses (3 years)
48
Related Documents

• Products
• www.globaltech.com/products
• Services
• www.globaltech.com/services
• Marketing plan
• www.globaltech.com/aboutus/marketing
• Budget
• www.globaltech.com/aboutus/budget
• Submit questions
• www.globaltech.com/aboutus/FAQ

49
Contact Info

• GlobalTech.com Corp.
• 1234 Anystreet
• Knox, TN 37000
• [phone]
• [phone] Fax
• contactus_at_globaltech.com

50
Any Questions?
51
Thank you for your time and attention
GlobalTech.com