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You will create a new business that will rely on selling its products or services online.

You will create a new business that will rely on selling its products or services online.

You will create a new business that will rely on selling its products or services online. The business must be in a different industry than the one you used in the Porter Forces Assignment.airlines, streaming services, cars, luxury clothing etc. (You can not use airlines Because you used in Previous work!!!!!!)


Defining your business

Select the name of your company

Choose one product or service you will sell within the industry (for example, if you select shoes, you can sell one model of shoe; if you define your industry as fashion, you can select a pair of pants)

What is your target market? (To whom will you sell your products?)

Use Porter’s Five Forces to evaluate the industry you are entering

Is buyer power low or high?

Is supplier power low or high?

Which substitute products and services are perceived as threats?

Can new entrants, like you, easily enter the market?

What are the barriers to entry?

What is the level of rivalry among existing competitors?

What is your overall view of the industry?

Use Porter to select the strategy you will use to enter the market. Justify why you are using the strategy you selected

Choose two competitors so you can determine your price point

Will you price your products lower or higher than the competition? Why?

How are you differentiating yourself from those competitors? (Price, quality, fashion, service, etc.)

Determine what is the cost per unit to make your products (just make it up by calculating a 40% margin based on your price point)

You need to find seed money to start your project.

Which platform will you use for funding?

Why did you select it over the competition?

How would you promote your project to get the funds you need?

Assume you were able to receive enough funds to manufacture your products or develop your services.


Your online strategy

In addition to the funds for your products or services, you can spend up to $1,000 USD to develop your online presence

What is the value of your products and services as perceived by your customers?

From the previous question: How will you differentiate yourself from the competition?

Please restate your target market

Look for the best options to create your online presence. You should at least consider two vendors for each service you plan to use, and mention their names. But just answer the following questions based on the vendor(s) you will use:

What domain (website name and domain) would you create? Is it available?

Will you use web hosting only, or an online store?

Will that vendor also assist you with developing an app?

Will you try entering a marketplace? If so, which one?

What will be your total cost per month for the services you selected?

Please select two social network sites you will have presence on. Explain why you selected those two for your line of business

Which marketing mix will you use to find your customers? Specify which services and strategies you will use and why

Once you selected the right marketing tools for your business, look for vendors and pricing. The vendors from (13) might also provide marketing services

What tool will you use to receive payments from your customers? How much does it charge you?

Remember you just have $1,000 USD a month to pay for all your online services


Path to Profitability

From the previous sections, you now have a price per unit, a cost per unit, and fixed costs (online services)

Run a break-even analysis. Please include the graphic.

How many units do you need to sell to be profitable?

If you wanted to be profitable faster, which costs would you reduce? How many units would you need to sell then? Is it worth it, or is it better to continue with your current costs?


Please note the following:

The paper must be four pages long or less, and can be single or double line. Cover page and references do not count towards the limit (you can have six pages: one cover, four pages for content, one page for references)


You must use the assignment template available in the Resources section of the classroom

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