Cover page:

Table of content:

Executive Summary:

NetBazaar is an e-commerce start-up company positioning itself to

become the market leader in offering online merchants and

consumers a uniform and trouble-free way to return merchandise

purchased online. The company offers a business to consumer and

m-commerce solution to online merchants of physical, non-

perishable products. The company utilizes a consolidation

approach in handling all product returns that allows online

merchants to instantly save bad sales, restore customer

satisfaction and stimulate repeat sales, while offering consumers

a convenient, centralized online location to claim returns. By

creating a new service category and utilizing the first-mover

advantage, NetBazaar positions itself for rapid growth and gains

a strong opportunity to raise entry barriers for possible

competition.

Business description:

Name of business: NetBazaar, proposed to Banglalink as a new

SBU.

Location:

We have decided to establish the headquarter of NetBazaar in

Tigers' Den, House # SW(H)04, Bir Uttam Mir Shawkat Sharak,

Gulshan-1, Dhaka-1212, Bangladesh.

Business overview:

Electronic commerce, commonly known as e-commerce, is the buying

and selling of product or service over electronic systems such as

the Internet and other computer networks. Electronic commerce

draws on such technologies as supply chain management, inventory

management systems, internet marketing, online transaction

processing and automated data collection a systems. Modern

electronic commerce typically uses the World Wide Web at least at

one point in the transaction's life-cycle, although it may

encompass a wider range of technologies such as e-mail, mobile

devices and telephones as well.

In 1979 Michael Aldrich invented online shopping.

Net Bazaar is an electronic trading forum that enables anyone

with cell phone to conduct transaction through its online

platform. It’s basically an e-commerce site like Cell Bazaar,

Click BD. Net Bazaar enables sellers to list details of their

products, produce or even services in a database while buyers can

look for any information through SMS. It will not handle

transactions, but is simply put buyers and sellers in contact

with each other via mobile phone or PC.

Bangladesh is densely populated country with a population of

approximately 160 million where 95.53 million are mobile phone

users, who can be the customers of this service including farmers

who can use the service to sell their harvest at fair market

prices and struggling students that find and connect with tutors.

Our Mission and Vision:

Our aim is to gain more expertise and confidence towards

delivering quality and above par services to our clients in order

to achieve not only customer satisfaction but provide customer

delight. We pledge every time to achieve high levels of

reliability, efficiency and performance of our service. We will

try to achieve maximum customer satisfaction through a continuous

feedback mechanism and continual improvement of systems of

quality management.

We hope that we will be known for our ability to provide

infrastructure and application environments combined into a

single package to meet in an integrated manner, the ICT needs of

our customers.

Objective:

To promote an online transaction services to the people of

Bangladesh with a greater precision and help Banglalink to

increase size and reliability of the customers to a large extent.

Service Features:

Our project will provide a company and individuals to negotiate

with other companies and individuals regarding whatever they need

to sale, purchase and auction their products and services through

online transaction process

Our service will reduce capital expenditures of a company that

uses their services, increase customer service, increase sales

opportunities, increase revenues, and improve inventory

management. Customers will benefit by having a convenient, easy

way to return their purchases as well as the ability to track

their returns.

Business structure

The proposed business structure would be a SBU of Banglalink

which is the second largest cellular service provider in

Bangladesh. As of April 2012, Banglalink has a subscriber base of

25 million

Business Operations:

In the first two months the main operational activities will be

to secure funding, infrastructural development and arrange legal

requirements. In the following month the firm will go for

marketing campaign. At the fourth month it will run in full

swing.

Source of Funding:

The projected value of NetBazaar. is estimated in total 1 core

taka, in which 67 lakh taka will be provided by the company

itself and rest of the amount will be financed by the a private

Bank.

67%

33%

Capital

EquityDebt

Figure 1 Capital Structure

Product and service:

Net Bazaar is a user generated virtual marketplace, accessible by

mobile phone or PC. Its main activity will be focused on selling

and buying new or used product to which a customer can maximize

his/her utility that will be conducted through SMS code and

messages.

Buying and selling of new and used products:

Automobiles, Electronic products, home appliance, office

appliance, home furniture, office furniture, sports, eBook,

agricultural products, tutor, pet, to-let solutions, real estate,

IT solutions, Industry products, Social sites, Job alert,

servicing zone and other products.

.

In the part of Sellers use their mobile phone interface to post

goods they want to sell. This information is stored on the

central server. The sellers have the ability to-

Post their selling item.

Change their item and update.

Delete their listed goods after sell.

Post blog.

Share information.

Rating buyers.

Share Articles.

Create groups.

Chat to desire persons

In the part of Buyers use the cell phone to search for the goods

they want to buy. They have the option of optimizing their search

by-

Option of optimizing (price, brand, location).

Bookmark favorite items and return to them letter.

Add comment on the product.

Ask for bargain.

Rating.

Chatting.

Blogging.

Net bazaar is a service where mobile phone used as a 24 hours

electronic market place. It has also some exclusive functions

like social Blogging, chat with people, people can create group

as business group, student group, teachers group, share articles

also customers can rate themselves (buyers and sellers), who

earned trust on buying selling process. In now people want faster

solution in their desired work and this Net Bazaar will provide

faster way to do that any time anywhere.

Business Environment:

Electronic commerce (e-commerce), or the conduct of commercial

transactions over electronic networks has been seen as a way of

reducing hostility in the marketplace; this allows larger volumes

of transactions to take place, effectively expanding markets, but

also opening up entirely new markets allowing marketers (large

and small) to use the Long Tail. In developed economies, e

commerce has taken the form of commercial transactions being

facilitated over the Internet, but recently has been extended to

mobile networks as well, owing to their growing ubiquity. In

emerging economies poor Internet penetration and the lack of

secure payment mechanisms have slowed the growth of e commerce.

An electronic marketplace (e marketplace) operating in Bangladesh

for the past two years, which allows buyers and sellers to

exchange information on products and services for selling, by

simply using mobile phones. There are various types of ICT-based

applications which can be grouped under the generic term “e

marketplace” such as online auctions, trade leads, requests -for-

quotes and on-line catalogues. However, as this generalization

could imply that all applications support on-line buying and

selling, and that transactions are actually completed online; as

such, in this paper, we use the term to denote any type of

application which electronically supports commercial transactions

at any level.

While there exist a variety of similar e marketplaces operating

in Bangladesh like Cell Bazaar, Click BD. Main competitors are

Cell Bazaar:

Bangladesh’s top mobile phone operator GrameenPhone, and USA-

based Cell Bazaar have introduced a service connecting buyers and

sellers in an electronic marketplace over the mobile phone. It’s

like a more direct, more primitive e-Bay, a phone-based

equivalent of newspaper classified advertisements. The Cell

Bazaar concept was developed at the MIT Media Lab by Kamal Quadir

and he later founded a company and established a partnership with

Grameenphone. The service enables sellers to list details of

their products, produce or even services in a database while

buyers can look for any of this information through SMS. It will

not handle transactions, but is simply put buyers and sellers in

contact with each other via mobile phone or PC.A Brief Overview

Cell bazaar is a user-generated virtual marketplace, accessible

by mobile phone or PC. Cell Bazaar works through SMS code and

messages; users enter the code 3838 and can post items to sell or

buy, as well as obtain market prices. This code can also be used

to hear marketplace postings through voice service, enabling

users to browse by 8 categories: Jobs, Mobile Phones,

Agriculture, Motorcycle, Car, Electronics, Computers, and To-Let.

Cell Bazaar is also WAP-enabled (Wireless Application Protocol),

a “next generation” mobile phone technology that provides a

faster way of browsing the online marketplace. The marketplace is

also available online for anyone with a web browser.

Click BD:

ClickBD.com started its operations in April 14, 2005 as the first

e-commerce portal in Bangladesh. Click BD is an online

marketplace where anyone can sell or buy almost anything. The

site has a strong and growing community of users who trade in a

wide range of item categories including Electronics, Cameras,

Phones, Computers, CDs, Mobiles, Fashion Accessories, Music, and

Travel. Through a world-class technology infrastructure Click BD

enables & simplifies e-commerce for Bangladesh's ever expanding

online community. People spend more time on Click BD than any

other Bangladeshi site, making it the most popular site of the

country. Click BD encouraged young generation to earn money from

selling goods using the power of the Internet.

Net Bazaar differentiates them by providing extra facility like

people can share their thoughts, research paper with Net Bazaar

members. There would be E-books for students, teachers can create

their community in it, share blog, chat with people like social

networking, Rate trustworthy customers. It’s a full package of

site where people can get every desired item in just a click.

People from all over Bangladesh will buy and sell on Net Bazaar.

Currently, over 90% of all listed items will sell on Net Bazaar,

giving buyer and seller the convenience of online trading. People

come to Net Bazaar to buy and sell items in an array of

categories from antiques, art, and collectibles to practical

items like used cars, mobiles, laptops, clothing, books, CDs, and

electronics. Buyers have the option to purchase items in an

auction-style format or items can be purchased at a set price

through a feature called Fixed Price or by Bargaining Price. Net

Bazaar is the place to buy what people want, sell what they have,

and make new friends while they are at it.

Net Bazaar is creating a place where people can offer goods for

sale and anyone in the world can buy at a fair price. It will be

a market of people, where their next-door neighbor can compete

with a large corporation and have an equal chance of success. It

will be a place that constantly adapts and improves to meet the

needs of buyers and sellers. Trust, honesty and efficiency will

be rewarded. In the end, our market will be so large and open

that people will be able to find almost anything they can

imagine. And every other way to buy and sell things will seem

inferior. Our customers are mainly mobile phone user in

Bangladesh, who doesn’t have the opportunity to sell their

product in the market. Also main target customers are the young

generation who are very enthusiastic, rapid in their work.

Industry Background of E-Commerce:

 

E‐commerce or electronic commerce is the conduct of financial

transactions by electronic means. With the huge success

of commerce on the Internet, e‐commerce usually refers to

shopping at online stores on the World Wide Web, also known as e-

commerce Web sites. Electronic commerce or ecommerce is a term

for any type of business, or commercial transaction that involves

the transfer of information across the Internet. It covers a

range of different types of businesses, from consumer based

retail sites, through auction or music sites, to business

exchanges trading goods and services between corporations. It is

currently one of the most important aspects of the Internet to

emerge. E-commerce allows consumers to electronically exchange

goods and services with no barriers of time or distance.

Electronic commerce has expanded rapidly over the past five years

and is predicted to continue at this rate, or even accelerate. In

the near future the boundaries between "conventional" and

"electronic" commerce will become increasingly blurred as more

and more businesses move sections of their operations onto the

Internet. Electronic commerce generates competition, revenue and

profit. It also creates flows of goods and services and hence

traffic. Subsequently, it can act as an incentive for investors

to finance locally available infrastructures, connectivity and

bandwidth. However, before this virtuous circle can be initiated,

the magic triangle access, trust and know how an essential

precondition for the start up and expansion of electronic

commerce, must be firmly established between both the public and

the private partners involved. This magic triangle can only be

set in place if it receives the full and active support from the

various stakeholders.

Types of E‐Commerce:

 E‐commerce is the process of buying and selling of various

products and services by businesses through the Internet. It

deals various kind of business concern, from retail site of  the

consumer, Which includes auction. The main focus is to

concentrate on business substitutes involving goods and services

between various corporations. There are primarily five types

of e‐commerce models.

 

Business to Consumer (B2C):

B2C stands for Business to Consumer as the name suggests, it is

the model taking businesses and consumers interaction. Online

business sells to individuals. The Basic concept of this model is

to sell the product online to the consumers.B2C or Business to

Consumer has lately gained a big popularity due to simplify an

accelerated way to buy products. B2C is the indirect trade

between the company and consumers. It provides direct sale

through online. For example: if you want to sell goods and

services to customer so That anybody can purchase any products

directly from supplier’s website. Directly interact With the

customers is the main difference with other business model. As

B2B it manages directly relationship with consumers, B2C supply

chains normally deal with business that are related to the

customer.

 

Business to Business (B2B):

B2B stands for Business to Business. It consists of largest form

of e-commerce. This model defines that Buyer and seller are two

different entities. It is similar to Manufacturer is issuing

goods to the retailer or wholesaler. Dell deal computers and

other associated accessories online but it is does not make up

all those products. So, in govern to deal those products, first

step is to purchases them from unlike businesses i.e. the

producers of those products.

Peer to Peer (P2P):

It is a discipline that deal itself which assists people to

instantly shares related computer files and computer sources

without having to interact with central web server. P2P sometimes

unified with e-commerce type C2C because of the same parties

participating in the transaction. Though it is distinguished by

the process itself P2P is not only an e-commerce type but also a

technology that allows people to share computer files and

computer resources without going through a central web server.

The required software should be installed by both sides so that

they can communicate on the common platform.

M-Commerce:

M-commerce (mobile commerce) is the buying and selling of goods

and services through wireless handheld devices such as cellular

telephone and personal digital assistant (PDAs). Known as next

generation e-commerce, m-commerce enables users to access the

internet without needing to find a place to plug-in. It deals

with conducting the transaction with the help of mobile. The

mobile device consumers can interact each other and can lead the

business. Mobile commerce involves the change of ownership or

rights to utilize goods and related services.

Consumer to Consumer (C2C):

C2C stands for consumer to consumer. Consumer to consumer (C2C)

(citizen to citizen) electronic commerce involves the

electronically facilitate transactions between consumers through

some third party. A common example is the online auction, in

which a consumer post an item for sale and other consumers bid to

purchase it, The third party generally charges a flat fee or

commission. The sites are only intermediaries, just there to

match consumers. They don’t have to check quality of the products

being offered. It helps the online dealing of goods and services

among people. Though there is no major parties needed but the

parties will not fulfill the transactions without the program

which is supplied by the online market dealer.

Now a days can use of technology in each and every sector has

been common. In this era of globalization, we can hardly find any

sector operating without easy technology. So there is no doubt

and it is quite natural that business world will also use

technology effectively as well as efficiently and take the

greatest advantage which is offered by technology. A new horizon

has been open up for trade and commerce namely e-commerce by none

other than one and only internet. E-Commerce entitles the use of

the internet in the marketing identification. Payment and

delivery of goods and services all are done by e-commerce using

internet. So there is a possibility for future growth in this

sector which is fragmented one. The factors that can contribute

to future growth is the technology system that is advanced and

pretty useful to people. In addition internet users are on the

increase on sharp rate and people will feel convenient doing

online transaction rather than moving here and there. Only a few

of the companies are providing the people with the facility and

from our point of view, it still inadequate. It’s our belief that

still there are so many space to serve with a greater extent.

SWOT Analysis:

ClickBD.com

 Strengths:

 

1. ClickBD’s image as the first e-commerce portal in

Bangladesh.

 

2. World class technology infrastructure which enables and

simplifies e‐commerce for BD’s ever expanding online

community.

3. Targeting people who are interested to do as well as already

doing online business by launching ClickBD Online Stores.

 Weakness:

1. They are not a part of any large organization.

2. Their promotional activity is pretty minimal

CellBazaar:

Strengths:

1. First one to bring the concept of mobile dealing.

2. Partnership with the largest telecom company.

3. Attractive web design.

Weakness:

1. Lack of awareness about the site, very small number of

people from rural area know about the activities of the

organization.

2. As a pioneer, they have not created enough space on peoples

mind

Bikroy.com

Strength:

1. Strong network in the whole country.

2. Home delivery.

3. Strong branding and promotional activities.

Weakness:

1. They don’t have many option to choose from under the sub

categories for example the CDs, they are trying to sale are

three to four years old and the lack with the latest

product.

2. Unattractive web design, Lack of creativity.

Porter’s five forces:

Porter’s Five force Model of E‐ Commerce Industry

Porters five forces model can be applied in the e- commerce arena

of Bangladesh.

 

Threat of New Entrants (High):

 

Since the e‐ commerce market has no entry barriers from the

government or technological perspective, it is very attractive

for other firms to enter into this market. Also, the nature

of Business itself does not have any cost, so it is hard to

achieve or realize the economies of scale. As we know, the

technology is improving every second or even minute, which means

people can create a website in five minutes. Therefore, the

threat of new entrants is very high.

 

Rivalry among Firms (Low):

 

The rivalry intensity in Bangladesh can be classified as very

low, as we can see that there are only few firms that are

generating revenues, there are many opportunities due to the Few

competitors in the market. The amount of  the firms is still

insufficient when we Compare with the population or the Internet

user in Thailand. Also, when we think about the e‐commerce

market, we have to think more globally because the consumers Are

everywhere all around the world. Since there is not much

competitions in the strategic Group (one is leader and others are

follower; like Clickbd, Akhoni.com, Bdjobs are the market

leader), the rivalry among firms are still low.

Bargaining power of supplier (low):

Human resource is the main supplier in the e-commerce market they

need a web site to be created by someone or buy a solution

package. Therefore in the technological age, the bargaining power

of this suppliers, I,e programmers are very low because they can

outsource to all around the world.

The other supplier to the e-commerce industry is the host who

provides the space, for the websites on the internet. They are

thousand of host who provide the spaces, and they are not

concentrated, therefore each website don’t have stick with the

same host.

Bargaining power of Buyers (moderate):

In the internet market, the environment would be the same as the

brick and motor stores. However, the customers have high

bargaining power because they can choose any shop in the internet

world wide. Also, they can substitute the place for the

transaction to the offline market as well. Fro example in the web

site like ClickBd and CellBazaar often the buyer exert their

bargaining power.

Threat of substitute:

There is no technology that can substitute the internet so far in

the market. Even analog signal that use to send the Television or

Radio signal are not the main threat. The main substitute that

exist is the break and motor stores, which they can change or

move their place to be on the internet. Therefore the e-commerce

industry has low threat of substitutions.

Marketing Strategy of competitors:

CellBazaar, ClickBD and bikroy .com do their marketing through

Television Ad

Sticker

Booklets

Billboard

KEY SUCCESS FACTORS

This section examines key success factors for the emergence of

CellBazaar in Bangladesh, particularly as a marketplace capable

of conducting electronic transactions through simple

communication technologies such as SMS, a feature that sets it

apart from many other e marketplaces available.

High mobile penetration but low internet penetration: GP get

this benefit, because Bangladeshi rural people are less

known to internet than mobile.

Affordable SMS price: They are also priced their product

which is affordable to their customer

Advertising: All existing e-commerce industries advertising

is overall good.

Exclusively partnered with strongest operator (GP):

CellBazaar have strong partner like GP. So they have strong

chance to achieve great brand value.

Market Share: CellBazaar and ClickBd is the first e-commerce

industry and coming each by new concept that’s why their

market share is large than other

Security: All e-commerce industry provide greater security

to their customer by keeping their information safe.

Entrepreneurial culture: They are growing consciousness

among people by easing their selling and buying process.

Product Quality.

Financial Position

Customer Loyalty

National Expansion

Market Analysis:

In Bangladesh there are approximately 5000 professionals engaged

in the ecommerce industry and the size of Bangladesh e-commerce

market has been estimated to be more than TK. 300 core in a year.

E--commerce in Bangladesh growth rate is approximately 6%. E-

commerce market is increasing day by day in our country.

Government wants to digitalize every sector in our country. So

it has a great influence in the field of e-commerce market. On

top of that, youth are very much enthusiastic on online trading.

Mentioned above information implies that e-commerce market in

Bangladesh is growing fast. At present, though our gather

information is showing that it is a niche market in our country

but it can be turn into mass market in near future. Of course, it

is a great opportunity for us to penetrate in this market and by

the way the market will expand. So, we reckon that there is a

potential demand our service in this market.

Our target market is the divisional cities and district towns

throughout the country. From this target market our target

customers are exclusively BanglaLink users. Besides, other people

can access our site and can take their necessary service from our

e-commerce site. Our target customers have some mentionable

characteristics such as they have their cell phone, have

eagerness to sell or buy in online market, intention in early

transaction.

Target marketing: We basically target all customers of Banglalink

and young generation who usually use the internet like WEB, WAP

etc.

Geographical Segmentation: under the geographical segmentation we

would like to offer our services to nationally, cities and

suburban.

Nationally: People of Bangladesh.

City: 7 divisional cities of Bangladesh.

Suburban: 65 district towns of Bangladesh.

Demographic Segmentation: we want to segment our target market

based on age, income level, occupation, education and so forth.

Age: we want to provide our service especially to the following

age 18- 50 years. But the people who are below 1 8 years can

access our site with the help and consent of their guardian.

Again people above 50 years can use our site according to the

necessity. Actually our intention is not to deprive others from

taking our services and omit their needs.

Income Level: we want to provide our service to them whose income

is ranging from 1000 to 200,000 or more.

Occupation: we offer our service to students, service holders,

businessman, and farmers and so on.

Education: people who have the basic knowledge about our service

and who are able to use our site to perform their necessary

transactions.

Behavioral Segmentation: Behavior is the science of using

psychology and demographics to better understanding consumers.

Behavioral segmentation: consumers are divided according to their

lifestyle, personality, values and social class.

Social Class: people who use our site would be from middle class

(low cost product such as, necessary goods, and farmers’

products), upper middle class (TV, fridge, mobile phone and so

on), upper class (Car, Smart phone, LED TV and so forth).

Values: People who have positive image on online trading and

willingness to trade on online marketplace.

We reckon our provided service add more value and can solve the

problem of our customer than our other competitors with similar

offering. Because first of all our customers do not face any

kind of access barrier in our site. We make it very simple for

our customer .They can access our site through internet, EDGE

Enabled Handset as well as cell Phone SMS process. On top of that

customers can access our site by registering a unique number

(161971) from any operator .whereas customers can not access same

site of our competitors because they requires internet

connections, EDGE cell phones, same operator (e.g. cell Bazaar-

can access only Grameenphone operator).That is why customer show

eagerness in using our site for their necessary transactions.

Moreover customer can provide their necessary comments like

transactions experience, make customer fan club, etc which

provides right to customer to express own feelings, can chat with

their dear and near ones ,finds their friends in our site which

enables them create social network. It is not possible in case of

other same service offering e-commerce site. Customers can use

our site solely to chat with their friends. The ideal value

proposition ours is to make our site commodious and enjoyable

towards our customers; lessen customers all probable problems as

well as we hope by using our site customers can easily

differentiate our e-commerce site from our competitors which

would most attractive easy using for them and also helps them

choosing.

Our company’s value proposition would be “Market is next to you”.

Sales and Marketing PlanNetBazaar Selling Procedure

  

Using SMS, WAP technology or the Internet, buyers and sellers can

find each other at NetBazaar. A farmer can easily sell his or her

products by sending simple text messages, just as a

Teacher can offer his or her services. Users pay only the

standard SMS or GPRS charges for accessing the service, and there

are no monthly fees only posting fees for selling. It works on 4

synchronized platforms:

 

SMS

 

SMS (Short Message Service) has been phenomenally popular since

its introduction in Bangladesh. NetBazaar leverages the simple,

widespread power of SMS to bring the market to your phone. By

sending simple text messages to 1111, one can post items for

sale, look for items to buy, and obtain current market prices of

products or services.

 

WAP

 

WAP (Wireless Application Protocol) is the next generation of

mobile phone technology. 50% of all mobile sets in Bangladesh are

already WAP enabled, and this number is growing rapidly. WAP

provides an even faster experience as you browse a simple graphic

menu to access the entire marketplace.

 

WEB

 

WEB version shows the entire market at a glance on computer

screen. Anyone with internet access can browse the market, and

post items for sale. Items posted by WEB, WAP or SMS are

instantly visible to users of any platform. WEB platform also

makes the local mobile based market available to an international

audience.

 

VOICE

 

Any Banglalink users can dial 1111 and listen to the latest items

on the market in Bengali. After dialing 1111, users choose from

those categories: Jobs, Mobile Phones, Agriculture, Motorcycle,

Car, Electronics, Computers, and To-Let. Every few hours, users

will hear new information through this service.

Most services like NetBazaar that work over SMS operate with

premium SMS pricing. Premium SMS refers to SMS for which users

pay a premium over standard messaging costs, with the revenue

shared between service provider and telecommunications operator.

Some development projects pay the premium themselves rather than

making users pay, but in either case, a premium is charged by

telecommunications operators. SMSs sent to NetBazaar cost a user

the same price as a standard SMS. Banglalink, NetBazaar's

partner, shares a percentage of the messaging revenue with

NetBazaar. NetBazaar also gets revenue from users that access its

WAP and voice services similarly another source of revenue that

services do not usually access. Of course, this revenue sharing

model would not be possible without a strong partnership with

Banglalink, Net Bazaar 's only core partner.

Sales & Marketing Plan:

Target marketing: We basically target all customers of Banglalink

and young generation who usually use the internet like WEB, WAP

etc.

Why people use our site: We provide some extra feature like

sellers rating, social site (Chat), job alert, career guidelines,

E-Book etc. People can find everything what they want from e-

commerce they have not to search another site. Our human nature

like is that we want everything in one place if we get and our

servicing also low. Our site also design for friendly using there

all indication will be given where they can find what we also

provide pop up message for the users which help them to find what

they want.

Human Resource Planning: We need one marketing executive and also

one marketing officer and two sales executives who will work

under the marketing executives. Sales executives and marketing

officers help the executive in promotional activity. Marketing ExecutiveMarketing OfficerSales Executives

Others Promotional Activity: We also do other promotional

activities like Direct E-mail, direct messaging, pop up

advertisement on the other site etc.

Markwting Mix: This section will describe about how we will reach

to our customer by our product. It also talk about what is our

product, how we will place it, how we will price product and our

promotional activity.

.

Product: We provide basically service and helping our customer by

providing them facility to bring them together in a place. We

help the customers to get his products appropriate price and also

fresh product by clear bargaining among seller and buyer where

seller and buyer directly bargain with each another. We also

provide social facility like chatting, blog sharing etc. We

describe our all product below. Those who want to take voice call

information or message alert they have been charged for message

or call.

PromotionPricePlaceProduct

To-Let solution: We help them by providing to let solution like

if anyone post in our site for To-Let then we send email,

message who want to rent then we charge price from them it will

be charged 200 from each party if he post in our To-Let blog

Automobiles: People can also buy or sell their product like car,

motorcycle, heavy vehicles, motor parts, bus , microbus etc by

giving advertise in our automobile blog.

Real Estate: This also work when buyer and seller post in our

real state blog then we also do sending message to both party and

we help them to contact but we charge seller.

IT solution: We also provide IT solution also like internet

provider give Ad in our blog then we charge from them for

advertising. In this blog, people can also give post for selling

computer and its parts, modem etc. IT related product. We charge

5tk for each second hand product.

Industry product: Garments product, imported product etc all

industrial products advertisement can give in this blog we charge

.5% from products total value. There seller must be note about

his/her products quantity and amount

Social site: This site is free for all register customers where

they can share their thought. They can also provide their writing

who got more like in two months then we will publish this in the

newspaper.

Job Alert: People may also get job alert from this blog but for

getting this they have to pay extra service and its amount is 10

Tk only

Servicing Zone: Its one zone where service provider can give

their Ad and can get the customer through it. Ad also be charged

50Tk

Pet: People can also get pet like dog, cat etc. because pet

seller can also give their Ad in this blog

Tutor: People can also get tutor alert through registration.

E-book: People can also get E-book facility through the specific

charge of this book.

Agricultural products: Farmers can also sell their product

through registration, other ad and post is free we give this

facility to promote to use Banglalink and Agriculture.

Electronic Product: People can sell and buy the new product and

second hand electric product by posting their but charge will be

different in case of new and old. Electric products like TV,

Fridge and AC etc.

Other Products: In this blog they can give post for other

products which is not fall above categories.

Place:

Target marketing: We basically target all customers of Banglalink

and young generation who usually use the internet like WEB, WAP

etc. We also provide fast, easy website which swiftly finish the

task.

Distribution Channel:

Price:

Product list Price listTo-Let solution 100 Tk

Pet 50 Tk

Tutor 10 Tk

Agricultural products Free (SMS charge only)

Electronic Product 0.5% (Total amount New) and

0.3% (Old) Other Products 5 Tk

Real Estate 500 Tk

IT solution 50 Tk

Industry product 100 Tk

ServicesConsumer

Social site Free

Job Alert 10 Tk

Servicing Zone 10 Tk

Automobiles 1000 Tk

Promotion:

Television Advertising: Television advertising is the main

strategy for attracting the market. We have also plan to expand

into all rural, suburban and urban area that’s why we telecast

our Ad in most popular NTV and BTV. We select BTV for rural area

people where satellite connection doesn’t exist.

Booklet: Booklet also another way to promote our product so we

decide to provide booklets in the Schools, Colleges,

Universities, Local markets and mosques etc. where all the

information and instructions have been given.

Radio Ad: Now FM radio is becoming most popular that’s why we

have to focus on this section and we will also broadcast radio ad

Sticker: We also print sticker to stitch on the vehicles glass

( Bus, Car, Microbus, CNG etc), saloon, hotel etc.

Billboard: Billboard is another attractive way for marketing

because large billboard draw attention of people. So we decide to

place the billboard in the urban area where dense people live

like Dhaka , Chittagong and Sylhet etc.

Research and Development:

HTML: HTML is a simple, universal mark-up language that allows

Web publishers to create complex pages of text and images that

can be viewed by anyone else on the Web, regardless of what kind

of computer or browser is being used. All you really need to

create Web pages is a simple text editor and a basic

understanding of HTML.

Figure 2: Basic Structure of a HTML Page

CSS: The technology behind style sheets is called CSS, which

stands for Cascading Style Sheets. CSS is a language that defines

style constructs such as fonts, colors, and positioning, which

are used to describe how information on a web page is formatted

and displayed. CSS styles can be stored directly in an HTML web

page or in a separate style sheet file. Either way, style sheets

contain style rules that apply styles to elements of a given

type. When used externally, style sheet rules are placed in an

external style sheet document with the file extension .css.

Figure 3: Layout Techniques in CSS

JavaScript: JavaScript is a client-side scripting language for

web pages. It can include JavaScript commands directly in the

HTML document, and the script will be executed when the page is

viewed in a browser.

Figure 4: JavaScript Alert PopUp Message

jQuery: jQuery is a coding language that is a branch from

JavaScript. jQuery works like JavaScript where its used to help

with interaction and effects with your development code. jQuery

hasn’t been around very long, it was release in January 2006 and

only on version 1.4.0. jQuery is a new and exciting technology

that is catching on quickly and making the internet more

interactive and enjoyable.

The best featuring for jQuery is the effects you can accomplish,

with less code than what it would take with JavaScript. Most

common jQuery effects are drop down menus, drag and drop

elements, animations and form validation. Developers have also

connected this with other coding languages like JSP, ASP, PHP and

CGI.

MySQL: Database programs have many different methods for storing

and retrieving data, as well as for organising the stored data on

the computer. One popular way for accessing data, both to store

and to retrieve it, is to use a computer language called "SQL"

(often pronounced as "sequel"). SQL was specially designed for

database access. There are many databases that support the use of

SQL to access their data, among them MySQL.

PHP: PHP is a programming language that you can use to write Web

applications. A Web application can be anything from a simple

"contact us" form through to a fully-fledged blogging system,

online store, or forum system.

It runs on the Web server. Most Web programming languages are

server-side, but some, such as JavaScript, are client-side, which

means they run on the Web browser. Server-side languages give you

more flexibility as they can do many things that are hard to do

with JavaScript — for example, working with files and databases,

or manipulating images. That said, JavaScript is coming along in

leaps and bounds these days (as these examples show).

Ajax: Ajax (sometimes called Asynchronous JavaScript and XML) is

a way of programming for the Web that gets rid of the hourglass.

Data, content, and design are merged together into a seamless

whole. When your customer clicks on something on an Ajax driven

application, there is very little lag time. The page simply

displays what they're asking for. If you don't believe me, try

out Google Maps for a few seconds. Scroll around and watch as the

map updates almost before your eyes. There is very little lag and

you don't have to wait for pages to refresh or reload.

Database Architecture: Privatevarsity.com is using relational

database. A relational database is a system in which data are

stored in tables of rows (records) and columns (fields). The

defining characteristic of a relational database is that the full

data set is broken down into multiple tables (each representing a

single subject) and that relationships can be established between

those tables through the use of key fields. Structured Query

Language (SQL, sometimes pronounced "sequel") is used to

manipulate the data.

Payment Process: For generating money Privatevarsity developing

some payment option for their user. Those will be launch in

future. In those option include Paypal Integration, Recharge

Card, Pay through SMS (from Grameen Phone & Airtel).

Overall Network Architecture: The entire network which will be

responsible for the proper execution of this current website is

shown in the following diagram:

Server Configurations: Privatevarsity is using VPS server that

using X2 Linux and other server configuration in below:

1x CPU Cores 10GB Storage384MB Guaranteed RAM 2 Dedicated IPs500GB Data Transfer Self-Installed Control

Panel

Figure 11: Web Server Control Panels

Server Security: Privatevarsity had domain security scanning, a

new feature that scan all sub-domain name and detect any malware

infection on index web file. Once the virus or malware being

detected, security team will remove those security threats.

WhoisGuard: Its protected accurate contact information from

public database called the "WHOIS" database.

SSL Certificates: SSL certificates installed on Private varsity

web server. Therefore, an end-to-end SSL installation support is

possible.

Operational Plan:

Operational plan implies that how an organization runs its

business and implement its strategic plan. For this first of all

we would like to set our business location at Gulshan, close to

our mother business organization Banglalink Headquarters. Then we

set up server which is very important to operate our e-commerce

business. Again we will purchase computer, furniture and other

necessary equipments that necessary for our e-commerce business.

We reckon that those server, website and equipment would be handy

NetBazaar.com SellerFrom All over the Bangladesh

BuyerFrom All over the Bangladesh

to run our business properly and to provide best services to our

customers.

Our e-commerce site remains open 24/7 for our customers. For this

we use high efficient technology and skilled workforce.we

introduce every time new technology to support our operation.

Because high speed server and technology is essential for proper

operation and to provide best facility to our customers.Again to

run our e-commerce site more smoothly we establish highspeed

server in the prime location of every divisional cities and

district towns.

Another important element for proper operation of our e-commerce

business is geographical location. Our e-commerce business is

customer centric business. So ,we want to run business operation

where our customers are available. Because if we operate business

such geographical location close to our customers.as a result our

e-commerce site would be quickly familiar to our customers and

they show enough interest to perform transactions by using our

site.

Our business is web related so, we need workforce who are skilled

in server operation, website design, search engine optimization

and skilled in software development. So to run our operation

properly we appoint skilled workforce.

We charge prices for our customers only when they place an ad in

our site and people who access our site need to register.

Buyer Seller

Goods

Delivery PointDelivery Point

NetworkingIMFiles Sharing

Rating Each Other

Monthly Rate for Advertisement

For Local and Foreign Clients

Location Size (width& Height in

Pixel)

Total Pixel Rate in TK Total Amount(per Month)

TKHome Banner 1

315×60 18900 5tk 94500

Home Banner 2

315×60 18900 5tk 94500

Top Banner 473×75 35475 6tk 212850Middle Banner

468×70 32760 5tk 163800

Right Panel 1

300×57 17100 5tk 85500

Right Panel 2

300×57 17100 5tk 85500

Right Panel 3

300×57 17100 5tk 85500

Right Panel 4

300×57 17100 5tk 85500

Left panel 1

280×60 25200 5tk 126000

Left panel 2

280×60 25200 5tk 126000

Left panel 3

280×60 25200 5tk 126000

Left panel 4

280×60 25200 5tk 126000

Spot Banner 1

468×70 32760 3tk 98280

Spot Banner 2

468×70 32760 3tk 98280

Management Summary:

Business Model and Structure:

The company plans to locate its headquarters in a metropolitan

area that can provide access to a large pool of high-tech labor

force, current e-commerce intelligence, and sources of financial

capital. The location should ensure the best logistics when

reaching existing and potential clientele, as well as strategic

partners. Operations in which the company cannot develop core

competencies should be outsourced. A close proximity to

outsourcing companies should be maintained. The headquarters will

initially host the entire executive team, sales force, and staff.

As company progresses through its growth stages, sales regions

will be assigned for various parts of Bangladesh and either in-

field sales representatives are placed or distributors assigned.

Presently, NetBazaar will be going to be headquartered in Gulshan

01, Dhaka.

Organizational Structure:

Those activities that are not crucial to the corporate success

(i.e. payroll) will be outsourced or subcontracted. Below are

brief summaries of major responsibilities for corporate officers.

Managing Director: oversees the overall strategic direction

and progress of the company. Specific areas include

operational soundness, financial stability, and long-term

well-being of the corporation.

Chief Executive Officer: the main responsibility is to

maintain a strategic fit between the corporate resources and

external factors. Responsibilities include running of the

overall day-to-day operations, technological and operational

soundness, and financial stability.

Director of Finance and Operations: responsibilities include

financial oversight, safeguarding of assets, and human

resources management.

Director of Information Technology: responsibilities include

overall technological efficiency, software development, and

information control.

Director of Sales and Marketing: responsibilities include

sales generation, marketing programs development, and public

relations.

Organizational Chart:

Financial

Plan:

Executive Of ITIT OfficersIT officersSales ManagerPersonnel Plan

Year 1 Year 2. Year 3

All Departments10,000,0

00

$1,960,

000

$4,105,0

00

Other 0 0 0

Total People 5 40 80

Total Payroll 10,000,

000

1,960,00

0

4,105,00

0

The statements incorporate two rounds of venture capital

investments of 9000000 total, plus access to additional 200000

for cash flow purposes. The statements do not include any funds

raised during the proposed IPO. Any revenues from advertising,

affinity, consulting, and partnership programs were omitted.

Year-end is December 31.

Projected Cash Flow

The following chart shows monthly cash balance and cash flow. The

table shows the expected cash flow for the first twelve months of

operation, with yearly estimates thereafter. Capital expenditures

include computer equipment and technology & software investment:

Computer Equipment: represents 20% of the current fixed

corporate costs. In 2013, it represents 1500000 from the

fixed corporate costs.

Technology & Software Investment: represents 60% of the

current fixed technology costs. In 2013, it represents the

5000000 of the fixed technology costs.

Pro Forma Cash Flow:Year 1 Year 2 Year 3

Cash ReceivedCash from OperationsCash Sales 5000000 8000000 12000000 Cash from Receivables 0 0 0 Subtotal Cash from Operations 5000000 8000000 12000000

Current Borrowing 300000 600000 1000000

Other Liabilities (interest-free) 0 0 0

Long-term Liabilities 1000000 1000000 1000000 Sales of Other Current Assets 0 0 0

Sales of Long-term Assets 0 0 0 New Investment Received 400000 800000 1000000 Subtotal Cash Received 6700000 10400000 15000000 Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending 2000000 4000000 6000000 Bill Payments 300000 700000 1000000 Subtotal Spent on Operations 2300000 4700000 7000000

Principal Repayment of Current Borrowing 300000 600000 1000000

Other Liabilities PrincipalRepayment 100000 200000 300000

Long-term Liabilities Principal Repayment 0 0 0

Purchase Other Current Assets 100000 200000 300000

Purchase Long-term Assets 5000000 1000000 1000000

Subtotal Cash Spent 7800000 6700000 9600000 Net Cash Flow (1100000) 3700000 2400000

Break-even Analysis

The following table shows our estimated monthly break-even pointto be approximately Tk. 102000.

Break-even Analysis

Monthly Revenue Break-even 102000

Assumptions:

Average Percent Variable Cost 0%

Estimated Monthly Fixed Cost 102000

A calculation of the sales volume (in units) required to just

cover costs.  A lower sales volume would be unprofitable and a

higher volume would be profitable.  Break-even analysis focuses

on the relationship between fixed cost, variable cost (or cost

per unit), and selling price (or selling price per unit).

Fixed Costs

Cost that do not change when production or sales levels do

change, such as rent, property tax, insurance, or interest

expense.  The fixed costs are summarized for a specific time

period (generally one month).

Variable Cost (Per Unit Cost)

Variable costs are costs directly related to production units. 

Typical variable costs include direct labor and direct

materials. The variable cost times the number of units sold

will equal the Total Variable Cost. Total Variable costs plus

Fixed costs make up the total cost of production.

Selling Price (per unit price)

The price that a unit is sold for. Sales Tax is not included

the selling price and a sales tax paid is not included as a

cost.  The Selling Price times the number of units sold equals

the Total Sales.

Break Even Point

The sales volume (express as units sold) at which the company

breaks even.  Profits are $0 at the breakeven point.  The

breakeven point is calculated by the following formula: Break

Even Point = Fixed Costs / (selling price-variable costs).

Time Period

The fixed costs are summarized for a specific time period.

The per unit variable cost is not dependant on a specific

period of time.

The per unit selling price is not dependant on a specific

period of time.

The Break Even Point is expressed the number of units,

over a specific time period that must be sold to obtain a

Net Profit of $0.  The time period the units must be sold

is always the same as the time period of the fixed costs.

Typically the time period is monthly; however it could be

Yearly or even Hourly.  For example, a farmer seeking the break

even on an annual corn crop would choose a yearly time period.

The farmer would add up the fixed costs for the whole year and

the break even sales volume would be expressed as a yearly

sales volume.

The text that is written in the time period field is copied to

the title of the Break Even Graph and Break Even Report.  If

you leave the field blank then nothing will be copied.

Break Even Calculation:

Assume the following:

Fixed Costs:Monthly Rent 100000Insurance (24000 per year 24000/12 months = 2000) 2000

Total Monthly Fixed Costs 102000

 

Variable Cost:Materials 5Labor 7Total Variable Cost 12  Selling Price: 25

Break Even Point CalculationBreak Even Point = Fixed Costs / (selling price - variable costs)

Break Even Point = 102000 / (25-12)

Break Even Point = 102000 / 13

Break Even Point = 7846

To break even the company must sell 7846 units per month.

If the Company just broke even, then its Profit and Loss Statement would look like the following:

Monthly Profit and Loss StatementSales

Gross Sales (25 per unit times 7846 units) 196150

Less Cost of Goods Sold

(12 per unit times 7846 units) 94152

Net Sales 101998 Or 102000

Expenses

Rent 100000Insurance 2000Total Expense 102000Net Profit 0

Projected Profit and Loss:

The table below shows the profit and loss statement for

NetBazaar. The itemized costs for fixed technology, corporate and

advertising are reflected in the sales and marketing row in the

table:

Fixed Technology Costs: represents a percentage of revenues

allocation for all fixed computer and Internet-related

developments and charges. In 2013, Tk. 2000,000 is allocated

for the proprietary software development, Tk. 1000,000 for

the website design, and Tk. 500,000 for systems integration.

Fixed Corporate Costs: represent a percentage of revenues

allocation for all fixed corporate cost associated with

office related charges. In 2013, Tk. 600,000 is allocated

for initial sales force hire, Tk. 500,000 is allocated for

hiring and training expenses, and another Tk. 450,000 is

allocated for the office setup and purchase and lease of

necessary computer equipment and infrastructure.

Advertising: represents a percentage of revenues allocation

for advertising in all media. In 2013, Tk. 2000,000 is

allocated for the industrial marketing campaign. In the

subsequent years, the much larger budgets include

allocations for TV, Newspaper, advertising.

Sales & Marketing: represents a percentage of revenues

allocation for marketing and selling activities, including

commissions paid on sales. In 2013, Tk. 1000,000 is

allocated for the initial sales and marketing related

activities.

Research and Development: represents a percentage of

revenues allocation for R&D activities. In 2013, Tk. 350,000

is allocated for testing and fine-tuning of the computer

systems and programs.

General & Administrative: represents a percentage of

revenues allocation for expenses associated with running a

corporation. In 2013, Tk. 200,000 is expensed against the

initial set-up, legal and accounting fees, etc.

Depreciation: represents a depreciation on all capital

investment; straight-line depreciation over 25 years.

Projected Balance Sheet

The Balance Sheet shows solid growth in both sales and net worth.

Pro Forma Balance SheetYear 1 Year 2 Year 3

AssetsCurrent AssetsCash 1000000 2000000 3000000Accounts Receivable 0 0 0 Other Current Assets 100000 1500000 2000000 Total Current Assets 1100000 3500000 5000000Long-term Assets 5000000 5000000 5000000 Accumulated Depreciation 100,000 100000 100000 Total Long-term Assets 5100,000 5100000 5100000

Pro Forma Income StatementYear 1 Year 2 Year 3

Sales 5000,000 8000,000 12000000 Direct Cost of Sales 2200,000 2300000 2700000 Other 200,000 200000 300000 Total Cost of Sales 2400,000 2500000 3000000Gross Margin 2600,000 5500000 9000000Gross Margin % 52% 69% 75% ExpensesPayroll 1000,000 1100000 1500000Sales and Marketing and Other Expenses 1000,000 1200000 1400000

Depreciation 100,000 100000 100000 Research & Development 350,000 400000 500000 Payroll Taxes 150,000 165000 225000Other 100,000 115000 125000 Total Operating Expenses 2700,000 3080000 3850000Profit Before Interest and Taxes (100,000) 2420000 5150000

Interest Expense 200,000 220000 250,000Taxes Incurred 0 330000 735000Net Profit (300,000) 1870000 4165000 Net Profit/Sales 0.00% 23.38% 34.71%

Total Assets 6200,000 8600000 10100000 Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable 500000 1000000 1500000Current Borrowing 300000 600000 1000000 Other Current Liabilities 100000 200000 300000Subtotal Current Liabilities 900000 1800000 2800000

Long-term Liabilities 1000000 1000000 1000000Total Liabilities 1900000 2800000 3800000 Paid-in Capital 4300000 6000,000 6300000 Retained Earnings 0 0 0 Total Capital 4300000 6000000 6300000 Total Liabilities and Capital 6200000 8600000 10100000

Business Ratios

The following table presents important business ratios for the

business services industry, as determined by the Standard

Industry Classification (SIC) Index code 7389, Business Services,

nec (not elsewhere classified).

Ratio Analysis

Year 1 Year 2 Year 3

Net Profit Margin (-300000/5000000) = -6% (1870000/8000000)=23.38% (4165000/12000000)=34.71%

Return on Asset (-300000/6200000) = -4.84% (1870000/8600000)=21.74% 4165000/10100000)=41.24%

Return on Equity (-300000/4300000) = -6.98% (1870000/6000000)=31.16%(4165000/6300000)=66.11%

Current Ratio (1100000/900000) =1.22 (3500000/1800000)=1.94 (5000000/2800000)=1.79

ROI (-300000/6000000) = -5% (1870000/7000000)=21.71%(4165000/9000000)=46.28%

Net Income Margin: This ratio measures net income per dollar of

sales; it is computed by dividing net income by sales. In year

one Net Bazaar had earned net income margin of (6%) after all

costs and expenses including interest, taxes had been deducted.

In year two and three it was respectively 23.38%, 34.71%.From the

above result we observe that net profit margin There was some

percentage of profit for the shareholder. From 2009 to 2011 net

profit went positive. There were some incentives for the

shareholders.

Return on Asset (ROA): The ratio of net income to total assets;

provides an idea of the overall return on investment earned by

the firm. This ratio is computed by dividing net income by total

assets. In 2009 ROA was 8.95% which shows effectiveness of

management in generating profits with its available assets. In

2010 and 2011 it was respectively 9.39%, 9.93%. As well as from

2009 to 2011 there were negative profit; firm could generate

profits with its available assets.

Return on Equity (ROE): The ratio of net income to common equity;

measures the rate of return on common stockholder’s investment.

This ratio is calculated by dividing net income by total

stockholder equity. In 2009 SAIC earned 21.69% of return on its

equity. In 2010 and 2011 it was respectively 21.69%, 24.81%. From

2009 to 2011 the figure went into positive, the return earned on

the common stockholder investment in the firm were positive. In

2011 return generate from the past years.

Current Ratio: This ratio is computed by dividing current assets

by current liabilities. It indicates the extent to which current

liabilities are covered by assets expected to be converted to

cash in near future. In 2009, 2010 and 2011 it was respectively

1.91 times, 1.87 times, 2.20 times. In 2009 company current

assets comfortably exceeded it’s the current liability but it was

below the standard. In 2010 company current ratio was decreased

it was also below the standard; and in 2011 company current ratio

was increased it was the standard it means firm’s was able to

meet its short term obligation.

Return on investment (ROI): It measures the gain or

loss generated on an investment relative to the amount of money

invested. ROI is usually expressed a percentage and is typically

used for personal financial decisions, to compare a company's

profitability, or to compare the efficiency of different

investments.

Risk Management Plan:

Risk in e-commerce: We are aware that e-commerce is not a fad; we

are here to stay. We do believe that today, it is an

organization’s ability to understand and manage the full spectrum

of risk which further bifurcates the boundary between success and

failure, more so when all government and private organizations

depend, to a large extent, on information technology.

Criticality criteria of e-commerce: we will focus on the

protection of customer interest, total up-time (obviating down-

time), security of payment gateway, credentials during log-in and

log-out, protecting the financial position from damage to

reputation, setting standards of corporate governance, keeping a

record of accountability and avoiding data degradation. Also

included are critical appliances partnership and contracts,

enhanced credibility, external evaluations and audit, 360-degree

management enhancement, business continuity, real-time decision-

making, social responsibility, customer decision-making, loop

inducting, motivation and need recovery, information search,

alternative evaluation, purchase decision and outcomes

(purchase/performance/feedback/execution), repeat purchase and

brand loyalty need to be addressed.

Risks in e-commerce projects: we are well aware of that E-

commerce projects are risk-prone mainly due to complexity and

integration challenges. Business service exchanges, sharing of

database, registry and repository have perpetuated risks. Cost

over-runs, choosing the wrong solution, implementation problems

etc, are also risk factors in e-commerce projects. However, by

using risk management procedures, companies learn to balance

their risks with desired outcomes, hence making projects

successful.

Risk management in e-commerce: Risk is a problem waiting to

happen and the goal of risk management is to make this inherently

risky process of applications development successful and

consistent. A risk management approach is crucial to success in

e-commerce; the need is for proactive risk mitigation both in

planning and in development. In the development of a new

technical system or project, there is a constant need to minimize

uncertainty and errors, which accompany an unprecedented

endeavor.

A project manager can never manage risks to the point of

eliminating them altogether. Only proven methods of risk

management and strategic plans can be used to draw up and

identify or monitor, and thus, mitigate risks.

Broad guidelines: There is a framework to assess, manage and plan

risk involves identification, analysis, envisaging consequences,

planning, tracking and control. The broad guidelines may or may

not follow a sequential pattern as given above. However, the

individual components are explained below.

Identify risk: Risk is assessed at all the stages of a

project; it can be attributed to factors such as non-

executive support or users’ resistance to change. In such a

case, the project team should be proactive and not reactive,

as the risk may reach a threshold and might be

uncontrollable.

Analyze risk: The way to go about it is to analyze,

prioritize and communicate risk so that the project team and

the user are aware, and an alternative or contingency can be

implemented.

Envisage consequences: It is easier said than done, it is

here that most project leaders or even team members forget

about this factor. Forethought and perceptual thinking will

help in evaluating the future of a particular risk factor.

Plan for risk: All the three factors mentioned above obviate

the requirement of planning, which can be classified into

immediate, urgent and essential based on the degree of risk—

high, medium and low respectively.

Track risk: We generally tend to ignore the importance of

tracking risk; documentation is also another tool that helps

in tracking.

Controlling risk: Risk management works hand-in-hand with

project management processes, controlling risk is not at all

difficult if a systematic approach is taken with sequential

preparation and plans.

The most important aspect to mention in risk management is that,

it is not done once, but requires scheduled periods along the way

to ensure that there is a constant re-evaluation of the risk.

Risk management needs to be an ongoing process to be successful.

If you don’t keep up the pressure, the risks will always win.

Hence, it is a ‘go-go’ situation and not a ‘no-no’, ‘no-go’ or a

‘slow-go’ situation.

From another perspective, we see managing risk in e-commerce and

projects under two holistic heads, ‘physical aspects’ and

‘psychological aspects

Physical aspects: The physical aspects include risk management

planning, plan verification, risk forethought, scope of risk

management organization, risk identification, qualitative and

quantitative analysis, proposal planning and monitoring and

control.

Psychological aspects: The psychological aspects are as follows:

-

Impulsive decisions: Impulse-driven decisions during the

course of the project will increase risk in e-commerce

projects.

Result psychosis: The need to attain results is influential

in the decision-making process during the course of

planning, development and implementation.

Zero error syndromes: Project managers tend to lose faith in

their subordinates or fear that the assigned task may not be

accomplished with the desired quality or time frame.

Further, the project manager may end up accumulating risk in

the course of the project.

Risk assessment:

Risk management can be simplified as risk assessment plus risk

mitigation. Risk assessment is as important as mitigation. What

we do is take the risks that are discovered in step one and give

them a designation of high, medium or low risk. Further one needs

to think and quantify about each risk’s possible overall impact.

Project management is a continuous process; hence laxity in risk

management will culminate in losses. We can coin a term Daily

Loss Expectancy (DLE) that can be evaluated on a day-to-day

basis. This helps in quantifying losses in terms of miss-

management of risks.

Daily Loss Expectancy (DLE) = Likelihood of failure (L)/failure

mitigation possibility (M)

-Both the variables are quantified in percentage.

-DLE ranges between 1 and 9.

-The ideal value of DLE is 1.

-If 3>=DLE>1, then DLE is low.

-If 6>=DLE>3, then DLE is medium.

-If 9>=DLE>6, then DLE is high.

-If DLE<1, then the evaluation is not realistic.

Selecting the right people will reduce risk manageability issues.

The ability of selecting the most suitable project manager is a

major factor that affects management of risk in e-commerce

projects, mitigating risk calls for unconventional ways of

planning and execution.

Concluding Remarks:

Appendix: