1、 . . . . . . . . . . . . 11 4.3Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 4.3.1Business Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 4.3.2Distributing a Service . . . . . . . . . . . . . .
2、. . . . . . . . . . . . . . . . . . . . . . . 12 4.3.3Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4.3.4Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 5.0Strategy and Implementation Summary . . . . .
3、 . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5.1Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 5.2Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5.3Marketing
4、 Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5.3.1Positioning Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5.3.2Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5、 . . . . 14 5.3.3Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 5.3.4Distribution Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 5.3.5Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6、 . . . . . . . . . . 15 5.4Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 5.4.1Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 5.5Strategic Alliances . . . . . . . . . . . . . . .
7、. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 5.6Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 6.0Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 6.
8、1Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 6.2Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 7.0Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9、. . . . . . . . . . . . . . . . . . . . . . . . .19 7.1Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 7.2Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 7.3Break-even Analysis .
10、. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 7.4Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 7.5Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11、 . . . . .23 7.6Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 7.7Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Table of Contents 1.0 Executive Summary Adventure Travel Inte
12、rnational (ATI) will begin operations in September 1999 and provide adventure and sport/travel packages to people in the Pacific Northwest, specifically the greater Woodville area. An opportunity for ATIs success exists because the national tourism and travel industry is growing at 4%, and adventure
13、 travel at 10% annually. Further, the Woodville adventure travel market is growing at least 12% annually and there are no providers who specialize solely in adventure travel in the greater Woodville area. ATI is poised to take advantage of this growth and lack of competition with an experienced staf
14、f, excellent location, and effective management and marketing. The companys goals over the next three years are: Sales of $650,000 by year three. Maintain margins of 10% on all airline travel. Achieve 15% of sales from the Internet. Develop strategic alliances with service providers nationally, inte
15、rnationally, and in the Woodville area. In order to achieve these goals ATI needs to focus on the three key areas of: Effective segmentation and targeting of adventure travelers within the larger travel market. Successfully position ourselves as adventure travel specialists. Communicate the differen
16、tiation and quality of our offering through personal interaction, media, and regional marketing. Develop a repeat-business base of loyal customers in order to create sufficent sales. ATI will be a sole proprietorship owned and operated by Shea Delaney in the town of Atkins Grove, California. The fou
17、nder and employees of ATI are experienced travel industry professionals and are passionate about the activities ATI will promote and offer. ATIs total start-up capital requirement is approximately $102,500. Start-up will be financed through the owners personal investment and a long-term note of $85,
18、000 secured from the Woodville First National Bank. The travel agency market is competitive, and technology, namely the Internet and Computerized Reservation Systems (CRS), has changed the way travel agencies operate. The Internet gives agencies and individuals the ability to perform travel related
19、research. Discount airfare brokers have taken advantage of the Internet by offering tickets online at discounted rates. This has increased price competition. Computerized Reservation Systems have increased the speed and efficiency of the agency-to-customer transaction. They have also increased the s
20、tart-up costs for travel agencies who wish to be competitive. One notable trend in the travel industry is increased deregulation. Deregulation has increased the need for differentiation and has, in many cases, lowered the prices of airfare and other travel-related services. Additional trends include
21、 caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins. The travel industry is highly fragmented. There are large national chains, small home-based businesses, consolidators on the Internet, etc. Membership numbers in some of the tr
22、avel- related associations give some indication of the number of participants in this market. The American Society of Travel Agents (ASTA) reports 25,000 members in 135 countries, most of whom are small businesses. ATI has approximately 30 immediate competitors in the greater Woodville area, includi
23、ng two agencies that are branches of national travel agency chains. ATI is researching the market to identify potential opportunities for future sales in this rapidly Adventure Travel International Page 1 changing environment. ATIs long-term goal is to establish itself as an internationally recogniz
24、ed provider of top-of-the-line adventure travel. This goal does not prohibit ATI from participating in additional segments. It does, however, provide a corporate focus and a differentiated offering. ATIs target customers are health-conscious couples and individuals, with median household incomes of
25、approximately $50,000. They are interested in popular adventure activities such as skiing, whitewater sports, and mountain biking. ATIs most important target customers, however, will be married couples, ages 25-35, with children and household incomes over $50,000. The Woodville area, like much of th
26、e Pacific Northwest, has a large concentration of outdoor recreation enthusiasts. These health-conscious individuals, couples, and groups interested in popular adventure sports, such as skiing, kayaking, trekking, etc., are ATIs primary customers. ATIs target market is an exploitable niche, and ATI
27、will provide a specialized and thus differentiated service. ATI has established relationships with providers of travel-related products and services. Two major airlines have been selected as our primary ticket providers in part because they do not cap the agents profit on tickets. This allows us to
28、capture the 10% margin on ticket sales that was for many years the industry standard. Market research has enabled us to identify and establish working relationships with service providers around the world. ATI has been able to identify opportunities to capture margins of up to 25% from certain parti
29、es. Sourcing will be continuously evaluated. ATI will take advantage of trade shows, travel industry publications, and other sources of industry-related information to monitor the quality of its offering. ATI has a number of major competitors that the company will seek to aquire market share from. T
30、hey are: Rollins Sundance Travel; Global Adventure Travel. None of these competitors have the combination of price, scope, or local focus that ATI will be able to offer. ATIs pricing strategy will be a major consideration. Much of it will be determined by market standards. ATI will attempt to mainta
31、in margins of 10% on all airline travel. Margins on all other products and services vary depending upon the provider but are expected to average 20%. ATI will make every effort to maintain a competitive pricing policy. However, as ATI builds its reputation as the premier provider of adventure travel
32、, it expects to earn the ability to charge a premium for its services. The company will also pursue an aggressive marketing campaign. During ATIs first year of operation it will hold a grand opening and will organize and sponsor several athletic events. All ATI employees promote ATIs services to loc
33、al athletic clubs. Negotiations with area health clubs have begun and additional promotions will likely occur through these strategic alliances. Specialty, rather than large national publications, will serve as media vehicles for ATI advertising. Local radio stations will also be used. Personal sell
34、ing will occur, though phone solicitation will be limited. ATI plans to occasionally station sales personnel in locations around Woodville such as shopping malls. ATIs goal is to develop personal familiarity between its employees and the community. ATI will be a small organization and its employees
35、will share in management duties and decision making. Shea Delaney will act as the General Manager, but it will be important for each member of the team to be capable in all aspects of the business. Prerequisites for all Adventure Travel International Page 2 ATI employees include at least five years
36、travel industry experience, knowledge and ability in the types of activities ATI will promote, and Certified Travel Counselor (CTC) certification for applicable positions. The CTC designation can be obtained through the Institute of Certified Travel Agents (ICTA). Prices will be competitive with the
37、 remainder of the market. The companys estimated sales for the first year of operations are $534,607, increasing 10% annually for the l background, they may feel that they have a very restricted overall view of the telecommunications network as a whole. The first purpose of this book is to provide a
38、n overall view of telecommunications networks to newcomers to the telecommunications business. This kind of general knowledge is useful to the users of telecommunications services, the personnel of operators, and the employees of telecommunications system manufacturers. The professionals working wit
39、h these complicated technologies very often have extensive knowledge of one very narrow section of telecommuni- cations, but are not familiar with the hundreds of terms and abbreviations that are used in other telecommunication areas by individuals with whom they need to interact. One purpose of thi
40、s book is to provide content to some of the most common terms and abbreviations used in different areas of telecommunications. When I was working as a development department manager at Nokia, I noticed that relatively few books are available that provide a good intro- duction to data, fixed, and mob
41、ile networks. This kind of oFirm: A.T. KearneyCase Number:Case setup (facts offered by interviewer):q Your client is a manufacturer of bicyclesq They have been in business for 25 yearsq They manufacturer and sell three categories of bicycles: Racing bikes: High end, high performance bikes for sophis
42、ticated cyclists Mainstream bikes: Durable, but not overly complicated bikes for everyday riders Childrens bikes: Smaller, simpler versions of their mainstream bikes for childrenq Profits at your client have decreased over the past five yearsQuestion:q What is driving the decline in overall profits?
43、q What recommendations might correct the situation?Suggested solutions:The first question is to determine what has caused overall profits to decrease. To accomplish this the candidate must first understand what has transpired in each of the three product categories over the past five years during wh
44、ich profitability has slipped. The following are questions and answers that would be provided in an interview scenario.q What are the clients margins for a bicycle in each of the three segments?Racing: Cost = $600/unit, Profit=$300/unitMainstream: Cost = $250/unit, Profit = $75/unitChildrens: Cost =
45、 $ 200/unit, Profit = $50/unitq What has happened to the market size of each of the three segments over the past five years?Racing: Has remained constant at its present size of $300MMMainstream: Has increased at 2% growth rate per year to its present size of $1.0BChildrens: Has increased at 3% growt
46、h rate per year to its present size of $400MMq What has happened to our clients market share in each of these segments?Racing: Market share has decreased from 60% to 30%Mainstream: Market share has increased from 0% to 5%Childrens: Market share has increased from 0% to 3% q Who are the clients major
47、 competitors in each market segment? What has happened to their market share in each segment over the past five years?Racing: There is one main competitor and a host of small firms. Your main competitor has increased market share from 30% to 50%Mainstream: There exist many, large competitors, none o
48、f which holds more than 10% of the marketChildrens: As in the mainstream segment, there are many competitors, none with more than 10% of the marketThe above information provides enough information to put together a picture of why profits have decreased over the past five years : Your client, with a
49、commanding position in a flat market segment (racing), expanded into new segments (mainstream and childrens). As this occurred, market share decreased dramatically in the most lucrative segment (racing), creating an unfavorable mix. The extent to which profits have decreased can be deduced from some quick math : profits have slipped from $60MM five years ago (=60% x $300MM x 33% racing margin) to $44MM today ( = (30% x $300MM x 33% racing margin) + (5% x $1B x 23% mai
