CoViTek can be an Atlanta based organization that offers an exceptional value added service to the $11 billion dollars video rental industry. CoViTek will revolutionise the sector by letting movies through its online video vending machines. These equipment are already going through tremendous success in The european countries, where these people were invented. Buyers will now have the ability to rent movies twenty-four hours a day, 7 days a week within a timely and efficient manner at the lowest price. Our devices can be executed anywhere, even in locations that are not accessible to our local competitors, and we will therefore focus our efforts on all of the strategic places.
Reve-lution Int. offer a unique business-to-consumer service for the rental of movies and Dvd videos. The technology, containing a completely automated program, will facilitate continuous local rental and returning of movies bridging the difference between video stores, whom only are open 15 hours a day, and software program as the no Kozmo. com, who also offer video delivery for any premium cost.
The business has a cost-per-action (CPA) charges. CoViTek’s concentrate on customers will include universities which has a student human body of at least 15, 000 in addition to the rest of the associated with Atlanta for the 1st six months of operation.
CoViTek will provide their clientele using a complete set of integrated tools within the equipment to make accurate and exciting purchasing decisions. CoViTek can give video leasing customers the freedom of leasing 24 hours a day, seven days a week, all year long. CoViTek will build the world’s really first practical and successful rental system… Target Clients Movie renting have proven to be an important part of the every day lives of the American populace. With more than $11 billion dollars in local rental sales in 1999, we recognize the aggregate with regard to the video local rental industry.
Regularly seeking immediate gratification, video rental stores want one of the most efficient and cost-effective strategies of satisfying their customers. CoViTek is likely to make rentals basic by providing buyers the most effective tools pertaining to with which to initialize accommodations process. With all the killer app technology used in these machines, the customer can conduct multiple searches in order to rent the movie of their desire. CoViTek can further assist them through the provisions associated with an active inclination search, which can be currently being employed by Amazon. com.
This application will determine what the customer hired last and list the most well-liked movies of the category the consumer will like based upon past local rental behavior. CoViTek’s potential customers can represent the bulk of video leasing households who have value local rental outlet ease and flexible payment plans. CoViTek will shoot for the most useful, cost-flexible obligations and lively searches for upkeep of good time. Market Expansion Perspective In respect to expert Paul Keagan & Acquaintances, at home motion picture consumption costs will increase around 40% by 2005 to $27 billion dollars, almost double the amount put in in 1990.
The vast majority of these expenditures, about 83%, will be for video/DVD rentals and retail. However , movie consumption will also encompass pay-per-view and video in demand (VOD) available through cable and satellite providers. Video Production Companies 90 percent of your videotapes can come from one in the six key production businesses: 1 . Excelente Vista installment payments on your Warner Bros. 3. Widespread 4. Fox 5. Extremely important, or 6th. Columbia-Tri-Star The potency of these suppliers is very high, as they keep the exclusive legal rights to the movies they produce.
One of the late opponents, Kozmo. com, has built an exceptional strategic relationship with these production companies. They have produced a profit writing system with the major production companies necessitating no first investment inside the videos, yet agreeing to provide 40% in the revenue made by the leases to the maker of the movie. We believe that this profit sharing system is monetarily unattractive, though it will allow all of us to reduce each of our initial expense costs; it minimizes each of our profits which often will postpone our expansion strategy.
We all will use an initial video seller, Video Bicicling, based out of Texas to supply all of us with our movies and DVDs. They will give us with the most up-do-date videos for competitive prices. Competitor Differentiation CoViTek differentiates by itself from its competitors in several important areas. When companies just like Blockbuster and Hollywood Entertainment offer the same features, simply CoViTek will certainly incorporate all the features referred to below in a manner that gives buyers the ultimate simplicity of use, active desire search, and extremely convenient locations of businesses.
Time Availability CoViTek’s competitive advantage is founded on its time availability pertaining to rentals. The machines will be open and available for utilization 24 hours a day, 7 days a week, throughout the year. CoViTek can keep customer service easily accessible even throughout holidays. Tactical Locations CoViTek will apply the snack machines in key strategic locations after performing reveal demo-geographical examination of the city of Atlanta. Spots will primarily be university or college campuses sometime later it was the urban areas of the metropolis.
Each equipment will be located in areas where there may be heavy people. Payment Flexibility Our charges will be flexible depending on the timeframe the video is out. Since CoViTek is a program that is available 24 hours a day you will find no later fees connected in our style. Our standard rental time for DVDs is “midnight of the following day” for a price between $2. 50-$3. 00. Each further day will probably be between $1. 50-$2. 00. Video Cassettes will be $3. 99 of course, if returned inside 24 hours $1will be awarded back. Every additional day will be $1. 99.
(Based on new releases) Energetic Search CoViTek will use a modern application technology which actively searches for video clips categorized simply by title, actor, new launches, type of motion picture (action, thriller, comedy), and a lot frequently leased movies. Comparative Competitive Component Blockbuster Online video Hollywood Video Kozmo. com CoViTek Family member Product Top quality and Differentiation i? i actually? i? i actually? Flexible Payment Plan i? Web commerce Based i actually? i? Company Recognition % 100% 63% 40% N/A Locations about campuses i actually? i? i actually? i? Locations on Campuses i? we? Large online video selection. we? i?
Range of employees less than 5/ position i? One of the most compelling facets of the CoViTek model can be its moveability into untapped realms of video rental opportunities. This will likely provide the organization with a crucial advantage-the versatility to transform itself in response to competitive issues or to changes in the online video rental industry environment. CoViTek’s flexibility will offer downside safeguard to its owners simply by insuring that new, ground breaking means of producing cash flow can be realized. Long term elements of CoViTek may include: Countrywide Expansion.
Video rental chances in picked national market segments such as: Washington D. C., Los Angeles, Arkansas and Huston. Washington Deb. C: our second position has comparable features to the first associated with operation. It has a few huge universities, traditionally used public transportation, and high pedestrian traffic. The colleges we focus on will be American University, George Washington College or university, and Georgetown University. Each of our downtown places will depend on areas where there is a great intersection in the public transportation lines and substantial pedestrian targeted traffic. Data Division.
Future plans may include the sale of CoViTek’s proprietary on the net consumer data to the significant video creation companies. Specialized Machine Content Another progress opportunity for CoViTek in the future is a implementation of machines with customized video selection. The information of these devices will be choose videos and DVDs targeted toward an audience based on certain themes. These kinds of machines will be placed in ideal locations based around all their themes. A few possible “themed” machines might include: classic movie machines, foreign movie equipment with The spanish language subtitles or dubbing, and award-winning movie machines.
The location of these equipment will require mindful market analysis and preparing, and therefore we plan to wait around before implementation to gather enough data about the market as well as the purchasing patterns of our consumers. Investment Needs Michel Khoury founder of CoViTek, offers accumulated profit excess of $12, 000 pertaining to the development plus the start-up expense of the company. CoViTek is now able to obtain funding through establishing a line of credit and putting into action an gear loan due to its initial equipment. It will later on apply for financial loans as needed in order to acquire more devices as it grows its operation.
Using the devices and profits as assets CoViTek needs to have sufficient money to obtain a personal credit line that will protected its implementation of technique. The initial stage of funding will be used to complete Web-site development, get hold of one machines, invest in computer hardware and software program, lease location space needed for the machines and market CoViTek through the first 12 months of businesses. After doze to 18 several weeks of operation, CoViTek will demand an infusion of an extra $15, 500 to expand its manufacturer image and increase it is service offerings at an accelerated pace.
Successful development and operation of CoViTek will allow it to become self-sufficient within approximately 9 to 12 months of first operation. CoViTek will be a for-profit company integrated in the condition of Atlanta. CoViTek – Start up costs Machines 20 dollars, 246. sixty four Inventory: video tapes $9, 210 Cash/ month $2, 808 Advertising and marketing $8, 000 Legal & Accounting $7, 000 Insurance $3, 500 TOTAL $50, 264. 64 Management crew Michel Khoury Chief Executive Officer President While founding CoViTek, Michel Khoury is usually Assistant Taking care of Director in Bear, Stearns & Company. Inc.
He’s working together with the Taking care of Director in the company in order to implement a method of taking foreign investment to the firm. He has received significance experience with young endeavors as he provides participated in the creation of several companies country wide and internationally. Michel Khoury is also consultant to the CEO of Santege Capital Property Management Group in Nyc. Michel Khoury graduated in May of 2001 from Emory University having a Bachelor of Business administration with concentrations in Financial, Consulting, Endeavor Management and Marketing.
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