Building E-commerce (Rent all Marine activities and boat charters) - Research Paper Example

Executive Summary MarineQ8.com is an unparalleled online service that offers marine charter services in Kuwait through local vendors with a wide-cut range of selections such as luxury yachts, catamarans, and water skiing. It is an online/mobile based business that acts as a mediator to the customer who seeks its service. It has a vision of becoming the greatest planner and coordinator for marine related activities while establishing a dominating presence throughout the MENA region. Its mission is to offer customizable marine-related activities via online booking that meet the highest of standards in reliability, comfort, and convenience.

The company will commence its operations, under the Commercial Law of Kuwait government, with a total share capital of KD 60,000. The contributors are Mr. Fahad Alnasrallah (Chief Marketing Officer – CMO), Mr. Mohammed Almejadi (Chief Financing Officer – CFO) and Mr. Abdulaziz Almohaisen (Chief Executive Officer-CEO and founder). Each partner will invest KD 20,000. The NPV after the feasibility study for five years forecasting shows a positive KD 2,247, which indicates that it is a feasible business venture.

It will start generating positive income cash flow for the third year in 2018 with a margin of 7%, and on an increasing scale to reach a margin of 22% in the year 2020. The Pay Back Period is 4.6 years.The primary value proposition for the company is to save time and money by providing the customers an opportunity to adventure the sea with the convenience and avoiding unqualified vendors. The company will receive transaction fee based on successful transaction/confirmation done, the yearly subscription from vendors, and advertisement from advertisers.

The market opportunity is large due to lots of individual vendors who will be attracted to join. The market will be competitive after few years of initiative, but the company will mostly possess the largest market share, giving the new entrants a bleak in an entry. This will be achieved by engaging experienced, knowledgeable, and well-known employees. The market strategy includes marketing campaigns, advertisements, and word of mouth. The company will undertake to recruit highly skilled staff to achieve an effective organizational development plan.

With the well-able management team, the company will pull in and convince customers that the business has a plenitude of market-specific expertise and the experience necessary to implement the business plan.ConclusionGiven the positive Net Profit Value of KD 2,247 after the feasibility study for 5 years forecasting, the business is a viable and lucrative venture worth investing in. This is further supported by the fact that it will begin realizing positive income cash flow for the third year in 2018 with a margin of 7%.

This is further expected to increase at a positive scale to reach a margin of 22% in the year 2020 with a Pay Back Period is 4.6 years. In addition, the market opportunity and market share are large and competitive. However, with the services of the experienced, knowledgeable, and well-known employees such as the CEO, CFO and CMO, the company with dominate the market. These human resources will further, pull in and convince financial investors that the business has a plenitude of market-specific expertise and the experience essential to follow the business plan.