iChina Forum 企業計畫 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program. College of Commerce National Chengchi University. 碩士論文. 政治 Master’s Thesis 大. 立. ‧. ‧ 國. 學 y. sit. Nat. 論文題目. er. io. iChina Forum Business Plan. n. aiChina iv l C Forum 企業計畫 n hengchi U. Student: Josue Daniel Herrera Mayen Advisor: Professor Chester Ho. 中華民國一百年五月 May 2011.

(2) 論文題目 iChina Forum Business Plan iChina Forum 企業計畫. 何蘇埃. 指導教授：. Student: Josue Daniel Herrera Mayen. 何小台. Advisor: Professor Chester Ho. 治政國立政治大學大. 立商學院國際經營管理英語碩士學位學程 ‧. ‧ 國. 學. 碩士論文. y. sit. Nat. A Thesis. io. Submitted to International MBA Program. er. 研究生：. n. National Chengchi University a v. i. l. n Ch in Partial Fulfillment of itheURequirements e ngch. for the degree of Master in Business Administration. 中華民國一百年五月 May 2011 i.

(3) iChina Forum Business Plan - Abstract It has been said that the XXI century is the century of people; social media, web2.0 applications and other technology breakthroughs have made the world every single day a smaller place. iChina forum takes advantage of all available existing technology to provide seasoned China experts with a platform that help them share their knowledge with the world. Our purpose is to enhance the mutual understanding between east and west towards and harmonic future. This business plan explains how through the use of open source development tools, a network of partnerships and social media marketing a low cost internet startup is possible.. 立. Keywords:. 政治大. ‧ 國. 學. ‧. Internet, China, Experts, Network, Web2.0, Social Network, Video Streaming, Business.. Nat. n. sit. Daniel Herrera. Ch. engchi. ii. er. io. al. y. By. i Un. v.

(4) Dedication To God who makes everything possible from the eternal dance of planets and stars to the wonders of technology, to my mother and my father who gave me the gift of life and more important the values to guide me through the journey, to my brother and my sisters the columns of my life in so many different ways, to my people in Guatemala who struggles every day to build a better future for the coming generations, to Taiwan’s ICDF for giving me the opportunity to know better my potential, to my classmates and professors at NCCU and specially to the wonderful people of Taiwan the beautiful island to which I own many of the best things in my life. “nothing comes too early, nothing comes too late, there’s no time but eternity, nothing happens by chance”. Daniel Herrera. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. iii. i Un. v.

(5) Table of Contents I.. Introduction ................................................................................................................ 1. II.. Company Description ................................................................................................ 2. III.. Marketing Plan ..................................................................................................... 5 3.1. Market Analysis ................................................................................................. 5. 3.2. Our Strategy ...................................................................................................... 6. 3.3. Political, Economic, Social and Technological (PEST) Analysis ........................ 8. 3.4. Competitor Analysis ........................................................................................... 9. IV.. Business Model Analysis ................................................................................. 16. ‧. 4.1. Stakeholders .................................................................................................... 17. 4.2. Value Delivery.................................................................................................. 20. 4.3. Revenue Generation........................................................................................ 23. 5.1. Phase One-Prototype-Progress-98% .............................................................. 26. 5.2. Phase Two-Launch Promotion......................................................................... 27. 5.3. Phase Three: Post-Launch Ongoing Activities ................................................ 27. 5.4. Phase Four: Future Activities (To Be Prioritized and Scheduled) .................... 28. er. io. sit. y. Nat. al. iv n C Operative Plan .......................................................................................................... 26 hengchi U. VI.. n. V.. SWOT Analysis................................................................................................ 15. 學. 3.6. ‧ 國. 3.5. 政治大 Positioning ....................................................................................................... 13 立. Resources Needed by Activity ......................................................................... 29 6.1. Content Production .......................................................................................... 29. 6.2. Website Management ...................................................................................... 30. 6.3. Administrative .................................................................................................. 30 iv.

(6) VII.. Financial Plan .................................................................................................... 31 7.1. Cost Structure .................................................................................................. 31. 7.2. Income Statements until Horizon ..................................................................... 32. 7.3. NPV Analysis ................................................................................................... 33. 7.4. Exit Strategy .................................................................................................... 33. Organizational Structure ................................................................................................. 34. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. v. i Un. v.

(7) I. Introduction iChinaForum is a network of seasoned China experts with decades of success, sharing practical hands-on lessons from the front lines of Greater China who presents to the world the real face of a rapidly changing China. We present candid views and inside knowledge on current trends in China from Chinese and international direct participants. The interest of people around the world towards China and its culture has grown exponentially in the last decade following China’s increasing prominence in the. 治政 global scene. The number of foreign students enrolled 大 in Chinese institutions whether 立 in short term programs, studying Chinese language and even pursuing degrees ‧ 國. 學. reached 240,000 in 2009 according to figures from the Chinese Ministry of education,. ‧. of these students at least 20,000 were American nationals and this is just one fifth of. sit. y. Nat. the 100,000 students that educational authorities in the US and China had established as the goal for the next four years.. er. io. n. a l providing through our platform Our business model involves a way for the general iv n. C. h e nandg written public to have access to presentations c h i Umaterials prepared by our network of experts, the resources to perform this function would be provided by a group of sponsors and advertisers and most of the needed promotion would be carried out through the websites of our network of partners and would be focused in increasing our ranking in internet search for certain keywords. After our market research we have discovered that a concept like ours is not existent in the market and we expect that with a raising demand our website would grow in popularity very fast, we are asking you to join us in fulfilling our mission and taking the chance of being part of this adventure in the virtual China. 1.

(8) II. Company Description The Need Coverage about China in the western mainstream media is often limited to a handful of themes, including (i) Human Rights, (ii) Natural Disasters, (iii) Economic Growth, (iv) Taiwan/Tibet/Xinjiang, (v) Scandals, (vi) Sino-US Relations and (vii) Large Events (Olympics, World Expo). These provide viewers a very narrow view of the long term transformations China is undergoing, which is further hindered by short-term changes in foreign public opinion, as well as political and corporate agendas.. 政治大. 立. ‧ 國. 學. We have identified a clear need to provide objective and unbiased information about China beyond these recurring themes. We want iChinaForum to exist between the. ‧. cheerleaders and the bashers, presenting the raw and unfiltered views and. sit. y. Nat. perspectives of insiders with decades of on-the-ground experience, rather than foreign. n. al. er. io. observers passing by the region. Who We Are. Ch. engchi. i Un. v. iChinaForum is a network of seasoned China experts with decades of success, sharing practical hands-on lessons from the front lines of Greater China. What We Do iChinaForum presents to the world the real face of a rapidly changing China. We present candid views and inside knowledge on current trends in China from Chinese and international direct participants. We do this through online interviews, live events, customized programs and publications, as well as traveling exhibitions.. 2.

(9) iChinaForum provides sharper insight, foresight, and hindsight, on China’s progress, growth and evolution. By focusing on the changes in China, we act as a prism to provide a richer, broader perspective of China’s progress than just a narrow “economics only” approach. Our Approach China’s transformation in the last three decades has been fundamental and rapid. The impact of these changes is evident across a broad spectrum of society, both in China and around the world.. 政治大 While much worldwide attention 立 has focused on China’s economic growth, we focus. ‧ 國. 學. on manifestations of the changes and on the people who are making important things happen today in China for a better tomorrow. While some of our focus is economic,. ‧. we include a broader range of people who are engaged actively in supporting positive. sit. y. Nat. developments in China’s journey to the future.. er. io. We strive to deepen understanding and increase awareness of China’s transformation. n. a. l C into positive action. in order to convert that awareness ni. hengchi U. v. Our Mission 。 To support the peaceful and balanced development of the rapidly evolving Greater China market 。 To provide platforms and events to share the knowledge needed to establish, operate and grow successful: 。 Cross-border businesses into China. 3.

(10) 。 Outbound Chinese business to the world 。 People-to-people exchanges and initiatives 。 Community programs and organizations 。 To highlight the human face of China, and how China’s lessons can benefit, assist and inspire others around the world. Our Experts. 學. ‧ 國. 。. 政治大 Leading executives and entrepreneurs 立. 。 Well-known scholars, opinion makers, and thought leaders. ‧. 。 Seasoned consultants and professionals. n. er. io. al. sit. y. Nat. 。 Leaders from people-to-people community groups. iv. n perspectives from China 。 Individuals and organizations C delivering front-line hengchi U. 4.

(11) III. Marketing Plan 3.1 Market Analysis The demand of western audiences for China-related information has grown exponentially in the last decade. This is evidenced by increased commercial activity between China and western nations, as well as the growing interest of foreign students to live, study and work in China. Foreign direct investment (FDI) into China reached a full-year record of $105.7 billion in 20101. China is also the number one creditor of the. 政治大. United States, holding a whopping $892 billion2.. 立. Furthermore, the number of foreign students enrolled in Chinese. ‧ 國. 學. institutions, whether studying Chinese language or pursuing university. ‧. degrees, reached 240,000 in 20093. Of these students, at least 20,000 are. sit. y. Nat. American nationals. This number is just one fifth of the 100,000 student goal that educational authorities in the US and China have established for. er. io. the next four years. Thisafinal objective as well has been supported by. n. iv l C 4 n private sector pledges in the order of the US$2.25 million . U hen gchi. In order to quench this thirst for China-related knowledge, western audiences have turned to the Internet in droves. The table below shows a sample of the most popular China-related keywords and their search volumes: 1. Beijing (AFP), Foreign investment in China hits record in 2010, http://www.google.com/hostednews/afp/article/ALeqM5h6kb_udj1QYwHMCAsl2g7Q1mxsWg?docId=CNG.55c 507d303160fbb5de1b214b3d1c635.1e1, (Feb 17, 2011) 2 Stonebtb.com, China - US No. 1 foreign creditor, http://www.stonebtb.com/news/Global_Trade/15263-China-US-No-1-foreign-creditor.shtml, (Nov 20,2008) 3 Xinhua news agency, China looks to attract more foreign students, http://news.xinhuanet.com/english2010/china/2010-09/28/c_13532971.htm, (Sep 28, 2010) 4 Chen Jia and Lu Chang (China Daily), American students chase China dream, http://www.chinadaily.com.cn/china/2011huvisistsus/2011-01/21/content_11892607.htm, (Jan 21, 2011). 5.

(12) Keyword. Google Global Monthly Searches 37,200,000 823,000 450,000 201,000 201,000 135,000 110,000 90,500 60,500. China Made in China China Business China Language China News China Trade Chinese Culture China Manufacturers Jobs in China. Google Results 1,290,000,000 354,000,000 79,500,000 27,000,000 89,600,000 24,500,000 15,100,000 21,100,000 221,000,000. Amazon Books Results 131,823 1,524 28,517 4,606 844 3,788 3,624 2,732 91. 3.2 Our Strategy Internet video is a major global trend of our time. Considerable percentage of internet traffic is related to uploading, watching or. 治政大is self created and downloading video content which in many cases 立 posted on virtual communities, like YouTube . 5. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Internet video resources are not only means of entertainment or self-expression for their authors they are becoming important sources of information. The most important news agencies are increasingly including online videos as part of their coverage and people is getting use to rely on online video as a source of information6. 5. The Blog Herald, History of Online Video, http://www.blogherald.com/2010/10/27/history-of-online-video/ (Oct 27, 2010) 6. Idem. 6.

(13) China is the country with the largest number of internet users in the world (1,330,141,295 according to 2010 estimations)7 and of course is part of. 治政大 that facilitate the global trend towards web2.0 (“web applications 立. participatory information sharing, interoperability, user-centered design,. ‧ 國. 學. and collaboration”)8, a number of equivalents of the most popular web2.0. ‧. services in the west has flourished in China in the latest years9.. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. 7. www.internetworldstats.com, top 20 countries with the highest number of internet users, http://www.internetworldstats.com/top20.htm, (Jun 30, 2010) 8. www.techpluto.com, Core Characteristics of Web 2.0 Services, http://www.techpluto.com/web-20-services/, (Jun 10, 2009) 9. Thomas Crampton, Social Media in China and across Asia, http://www.thomascrampton.com/china/china-social-media-evolution/, (Mar 03, 2011). 7.

(14) The huge user base that the Chinese internet market offers has brought a high and sustainable growth to some of this websites, in the area of web video the site Youku increased its ad revenues 15-20% in 2010 and started this year making efforts to invest in new content10. It could be said that a lot of books have been written about China’s history, business environment, negotiation style and culture, as well there are a lot of blogs about China in English but the production of video resources about China is rather limited qualitatively and quantitatively. 政治大. and that is the blue ocean that we aim to sail.. 立. 3.3 Political, Economic, Social and Technological (PEST) Analysis. ‧ 國. 學. Political. Economic . . Chinese authorities are gradually opening their mindset towards mass media.. y. sit. n. Social . Ch. Online video is growing everywhere. engchi. iv. Technological Un. . Bandwidth (YouTube, CDN). . Great Firewall. . Social Networking: Sharing vs. Searching. . Expectation for content to be free. . People follow influencers and our experts are influencers in their  respective area.. 10. Economic downturns affect online ad revenues considerably. er. io. al. ‧. Censorship. Nat. . Traffic Leakage. Yahoo finance, Youku.com statistics, http://finance.yahoo.com/q/ks?s=YOKU, (May 18, 2011). 8.

(15) Political Factors . Censorship . We are not interested in controversial topics. Those are covered in mainstream media. . Because our experts have decades of experience, we trust them to handle delicate issues in a way that fosters discussion but does not antagonize. . We understand that many of our experts, as well as potential. 治政 partners and advertisers live in China. 大 We do not want them to 立 get into trouble. ‧ 國. 學. . All user-generated content will be carefully moderated.. ‧. Technological Factors.. y. Nat. io. sit. The technology on which our platform is built is based completely on. er. open source resources this strategy have helped us greatly to reduce our. n. a. v. l Con the technology side costs. The risks that we face n i are related to the. hengchi U. limited capabilities of our current servers that could become insufficient if the site becomes popular very quickly, on this matter we have considered acquired content distribution network services (CDN) from a Chinese and an American provider this strategy will allow us to cope with an exponential demand if that is the case. 3.4 Competitor Analysis After conducting extensive market research, we have discovered that there is a very limited number of direct competitors in our selected niche (video-focused business/social-sector information about China). In order 9.

(16) to make this analysis more useful, the table below includes several websites that do not provide information in the same format, but partially compete for the same audience. It is important to note that even though we are listing these websites as competitors, this sector is highly cooperative and eventually they could be considered as partners. Website. Value Proposition Strengths. Bottom Line.  Interviews and  Started in  Most articles on 2008 speakers practical would fit in  SEO11 business topics our http://bit.ly/cGI Friendly “toolkit” Vmq  Podcasts and (domain category Video name) Interviews  Founder-foc  Multimedia used (CBN  Subscription-bas content = Christine ed directory of  Social media Lu) China savvy professionals  Multimedia promotion materials  Fee-based event al iv sporadically n Ch promotion U produced engchi The China Business Network. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat.  This is our most direct competitor. 11. SEO stands for Search Engine Optimization. 10.

(17) Website. Value Proposition Strengths.  A multimedia  research, public http://bit.ly/aiY education, and Ryl  oral history project designed to explore the  question “Why did China boom?“ by recording the collective  wisdom of our moment.  China Boom. 政治大. ‧. y. sit. io. n. al.  Been on the  Most market for speakers several years would fit in our  Effective ad “toolkit” v i sales nteam Ch category U i e n g h c Partnerships  Content on with website not conference written by organizers native  Corporate English branded speakers interviews  Very commerciali zed (many ads, “marketing speak”). er. Nat.  Asia-focused business news http://bit.ly/hPU and video fSA interviews ITV Asia.  Sets the standard in terms of Asia Society polish and “Brand” depth of Very high content production  A one-time values, both academic on videos and project. site. Intended as Intuitive a navigation “snapshot”, not an Well funded ongoing effort. High profile experts. 學. ‧ 國. 立. Bottom Line. 11.

(18) Website. Value Proposition Strengths. China Success  Practical articles  about doing Stories  business in http://bit.ly/ecg China. KqE . 立. Bottom Line. SEO Friendly  No multimedia Large number content of articles  Stopped Very practical producing business new content advice in 2009. 政治大. ‧. ‧ 國. 學.  It is still a competitor because they rank well in search engine results. n. er. io. sit. y. Nat.  English  Strong brand  Not focused translation of on business http://bit.ly/14r  Founder is news in Chinese GXj clearly  Main media al influencer function is v in i Ch  Podcast aggregating U nexpat icommunity e n g c h China and  Video translating.  Focused on  Consulting media  This is the Services site most  Very Popular likely to  Clear editorial become a voice partner (founder  Social media featured on savvy iChina) Danwei.org. 12.

(19) Website. Value Proposition Strengths.  Goal is to  discuss the practical aspects http://bit.ly/BO  of Chinese law Tg and how it impacts  business there. China Law Blog. Bottom Line. Conversationa  Best in its l niche. Clear editorial  Marketing voice vehicle for Harris & Very Moure knowledgeabl e  Partnerships could be  Focused developed  SEO friendly. 立. 政治大  Social Media Savvy. ‧ 國. 學. 3.5 Positioning. ‧. After analyzing the content offerings from other outlets in this space, we. China. Success Danwei. a Network Boom Asia iv l C Stories n h e6n g c9 h i U5 6. n. Relevance. Business. China. China ITV. er. io. The China. sit. y. Nat. have ranked them on several key metrics on a scale from 0 to 9. iChina. Law Blog Forum 8. 8. 8. Usefulness. 6. 9. 5. 8. 8. 8. 8. Quality of Experts. 5. 9. 5. 6. 8. 8. 8. Focus on China. 8. 8. 5. 7. 8. 8. 8. Focus on Business. 8. 6. 8. 7. 5. 8. 7. Content Organization. 6. 8. 7. 7. 8. 5. 8. Text Content Quality. 6. 8. 5. 7. 8. 8. 7. Editorial Voice. 6. 8. 5. 7. 9. 8. 7. Original Content. 7. 8. 6. 7. 7. 8. 8. Multimedia Content. 7. 8. 5. 0. 7. 0. 8. Social Networking Functions. 5. 0. 0. 3. 5. 0. 6. SEO Friendliness. 7. 5. 6. 7. 8. 7. 5. 13.

(20) Based on the table above, we have built the following positioning curve. Content. Structure. Editorial. Friendliness dliness. 立. 政治大. ‧ 國. 學 ‧. Based on the figure above, it is clear that there is room under current. sit. y. Nat. market conditions for an outlet that publishes high quality multimedia content on a wide variety of China-focused topics, on a regular basis. It is. er. io. also clear that the impact a of such an outlet would be amplified by. n. iv l C n providing social networking tools users to connect and engage h e that n gallow chi U our experts, as well as each other, in meaningful discussion. As evidenced in the current prototype, iChinaForum.com already ranks highly on many of the key areas analyzed and, with proper funding, other areas can be improved so our platform becomes an indispensable information source presenting the real face of China.. 14.

(21) 3.6 SWOT Analysis Strengths  .  . Opportunities. Content Quality (High Profile Speakers) Content Scope (Business, Social Sector and Other Topics Covered) Clean, Easy to Use Website Interface Content organization (easy for.   . Growing global interest in China Popularity of social networks Increased audience for video content online. users to find and discover content) Weaknesses. 立. policies towards mass media in China.. 學. Limited Budget Personnel constraints may delay implementation of additional projects. ‧. ‧ 國.  . 政治大 Threats  Administrative regulations and. The figure below provides a representation of all the different. Nat. sit. y. stakeholders iChinaForum needs to manage successfully in order to. n. al. er. io. achieve its mission.. Ch. engchi. 15. i Un. v.

(22) IV. Business Model Analysis The diagram below describes de value given to and received from different stakeholders. In its initial stages, iChinaForum will be mainly funded through foundation grants, user donations, and participation in affiliate programs for relevant vendors (i.e. Amazon.com). Operational expenses will be kept as low as possible by leveraging mutually beneficial partnerships with organizations that can help develop new content at low or no cost.. 政治大. As our audience reaches critical mass, we will develop a demographic. 立. profile and approach advertisers, either directly or through ad agencies. In. ‧ 國. 學. later stages events, premium content and consulting services will provide additional revenue streams.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. Value Generated. i Un. v. Value Received. 16.

(23) 4.1 Stakeholders In our model we have indentified four different categories of stakeholders, Experts Leading voices of the industry, NGOs the academic world and even the governmental sector that are building day to day the reality of contemporary China. Audience We have segmented our audience with the objective to serve better their. 治政大clearly differentiated interest for content since and to allow us to have 立. profiles to target our premium content and the services and products of. ‧ 國. 學. our financial supporters.. ‧. General Audience: People interested in understanding China from. sit. y. Nat. different angles (cultural, industrial, social, commercial etc.) and from. io. Greater China.. er. the perspective of renowned experts with probed expertise in the. al. n. iv n C Registered Users: Peoplehinterested U about China in a e n g c inh ilearning interactive way by participating in our community of users. Members: People in the business, academic or Social Sector with the need of special know how, to develop their business, academic or social projects in Greater China. Through this segmentation strategy we pretend being able to structure different value propositions for each of the segments; our objective is that the majority of them would be part of the segment of Registered Users which would allow us to know their patterns for content consumption in order to capture a fraction of them to make them 17.

(24) members. Financial Supporters Our financial supporters would be segmented as well in three categories donors, sponsors, and advertisers. Donors: Will be individuals or companies that share our vision and are willing to support us economically. Sponsors: Will be leading companies from China and from abroad that would provide us with resources for the launching of our project in exchange we are going to co-produce contents with them (which. 治政大 background to will allow them to have a highly contextualized 立 promote their products and services).. ‧ 國. 學. Advertisers: Will be companies to which we are going to provide. ‧. banners, video embeddings and other forms of promotion inside our. sit. y. Nat. website as means for them to reaching to our audience, (our website development team will develop a way to analyze which contents has. er. io. been rated and viewed a by each one of our registered users, through. n. iv l C n this analytics we can targethour directly to the kind of public e nbanners gchi U that our advertisers are aiming to reach). Partners Our partners are also segmented in four categories: a. Non Governmental Organizations: Whether their objective be academic or social (they are going to provide experts as well). b. Academic organizations: Universities in Greater China and abroad and university affiliated organizations.. 18.

(25) c. Business organizations: Content producers and event organizers like TEDx, networking groups, chambers of commerce and other for profit organizations. Though the majority of our content would be self produced as well we have already established contacts with top content producers like TEDx Japan and Taipei, USC US-China Institute and top universities in China, Taiwan and US. The model for the partnerships would be mutual promotion in the case of other content producers and annual content production competitions in the case of the schools.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 19. i Un. v.

(26) 4.2 Value Delivery A. Experts Segment. Value. Vehicles of Delivery. 1. Experts. Establish themselves as a Recognized Leader in their Industry Share their expertise with a worldwide audience and their network Leverage their marketing. We would offer them our platform infrastructure to share their knowledge with the world. efforts.. Audience. audience across the world.. We would provide to our audience around the world with a platform to interact ask questions, increase their knowledge and share their perspective about Greater China, all of this by registering for free and be part of our community of registered users.. We would deliver this value through the social network utility attached to our platform, after filling one simple form and providing us with an email address one gets to become a registered member which gives access to post comments to our content and to post in the discussion forum and as well is. io. n. al. Ch. engchi. y. ‧. Nat. 2. Registered Users. 學. academic and social environment directly from the people who have built or are currently modeling greater China history.. ‧ 國. 1. General Audience. 治 Vehicles of Delivery 政大 documentaries and We provide them a firsthand Interviews, 立 China business, articles, which are free to all our view on greater Value. sit. Segment. er. B.. i Un. v. the starting point to build your private china network with other users. 3. Members. We would give our members. We would deliver this value. access to premium content tailored to their specific area of. through special content developed by our network of. 20.

(27) interest, as well we would offer. experts and by our schedule of. our members special prices on iChina forum organized seminars, workshops and networking activities, enhancing their opportunity to strength their Private China Network.. iChina forum activities, the activities would be organized (after the third year) in the main cities of Greater China and United States.. C. Financial Supporters Segment. Value. Vehicles of Delivery. 1. Donors. Be part of our effort and be recognized by peers in our donor directory.. Donor directory to be updated periodically as part of our website.. 2. Advertisers. We would offer organizations. n. al. b.. Ch. engchi. organizations are able to certify to the world their China expertise. Chinese Organizations: Local Greater China organization would show themselves shoulder to shoulder with the most 21. y. Our sponsors would be able to create awareness about their expertise by:. sit. ‧ 國. io. Sponsoring our platform will provided organizations with an iChina Forum scent of expertise this value could be understood from two different perspectives: a. International Organizations: Through their sponsoring of our platform the international. ‧. Nat. 3. Sponsors. advertisement spaces in the form of embedded video ads and banners to be published in our website and as well in special cases through customized advertisement strategies.. 學. the opportunity to utilize our platform as a mean to create awareness of their product or service into our target audience in a highly contextualized manner.. er. 立. 政治 We大would offer this. i v Branded Custom n U. a.. Presentation Series: A series of presentations that showcases their firm’s expertise, or how their products/services can help our audience succeed in any aspect related to business in China. Presentations in the series can feature speakers from the sponsor’s firm or suitable speakers within our community as well.. b.. Editorial Promotion: Combines traditional.

(28) dynamic western pairs that they have working in China showing to the world their global scope.. advertisement vehicles with other subtle, context-sensitive vehicles in our blog, including guest posts and product/service reviews and recommendations. As both of these services involve co-creation of content and institutional endorsement, our sponsors would be selected and approved by our board and would be leading organizations which share our vision and. 立. 學. Segment. ‧ 國. D. Partners. 政治大 principles. Vehicles of Delivery. For NGOs we would offer a suitable platform to create awareness towards their. We would offer them a chance to speak about their cause.. ‧. 1. Non Governmental Organizations. Value. Nat. n. al. Ch. engchi. sit. We would deliver this value through co-production of content, as well we are going to promote contest on documentaries about China to be organized by our partner universities, this would provide us with a series of materials that would have a fresh perspective. er. We offer to our academic partners the opportunity to co-create content with us, and the opportunity to promote their websites through ours in the case of universities we would organize academic exchange programs.. io. 2. Academic organizations. y. mission.. i Un. v. about China and to the students would mean a chance to go abroad and visit our partner universities in the US or to attend special events. 3. Business organizations. To our business partners we would offer the opportunity to co-organize events with 22. This would be done largely to co-organization and co-promotion of events..

(29) them and promote those events to our network of users.. 4.3 Revenue Generation A. Our products Name. Benefits. Sponsorship packages.  . . 立. Access to our professional generated China materials for one year.. . Discounts in the purchase of our generated products. Discount in the tickets for our seminars and workshops.. . n. al. y. sit. io. . er. ‧ 國. 政治大. ‧. Nat Video embedded advertisement. of the chosen category during that month). Top banner presence in the corresponding category during a month. Editorial support in our blog for the sponsors product and services during one year. Constant banner presence in the sponsor category during one year.. 學. Membership. . Coproduced video series. Video embedded advertisements in a month and category left to the election of the sponsor (would be the only embedded advertisement in the videos. iv n C  Appears at the beginning of a selected video heng chi U. Premium banner. . Appears at the top of the screen when the video is presented. Regular banner. . Appears at the side of the screen.. 23.

(30) B. Pricing Model Source. Unit Value US$. First Year Projection12. Sponsorship packages. 20,000. (10) 180,000. Membership (yearly). 100. (100) 10,000. Advertisement Source. Unit Value US$13. Video Embedded Ads (per Video per month). 100. Top banners (per page per month). Base. Per Click. 80. 2. (100) 10,000. Regular Banners (per page Base per month) 40. Per Click. 10,000 20,000. 1. 政治大. Miscellaneous Income We estimate that at least $10,000 dollars would be generated through donations, rewards for editorial support from no sponsors and other related activities.. 立. ‧ 國. 學. C. Revenue Projections. ‧. Nat. n. Ch. er. io. al. sit. Year 1. Revenue Sponsorships Memberships (Increasing in 0.3 Yrl) Advertisement (Increasing in 0.3 Yrl) Miscellaneous (editorial support, donations, others)(Increasing in 0.3 Yrl) Total Revenues. 12. y. Most Likely Scenario. US$ 180,000.00 US$ 10,000.00 US$ 40,000.00. engchi. i Un. v. US$ 10,000.00 US$ 240,000.00. Projections according to the most likely scenario.. 13. All the prices in this section are approximations since in actuality are subject to change according to the traffic generated by the videos and the pages in which the advertisements are shown. 24.

(31) Conservative Scenario Year 1 Revenue Sponsorships Memberships (Increasing in 0.2 Yrl) Advertisement (Increasing in 0.2 Yrl) Miscellaneous (editorial support, donations, others)(Increasing in 0.2 Yrl) Total Revenues. US$ 160,000.00 US$ 5,000.00 US$ 25,000.00 US$ 10,000.00 US$ 200,000.00. Optimistic Scenario Year 1 Revenue Sponsorships Memberships (Increasing in 0.5 Yrl) Advertisement (Increasing in 0.5 Yrl) Miscellaneous (editorial support, donations, others)(Increasing in 0.5 Yrl) Total Revenues. US$ 10,000.00. 學. US$ 280,000.00. ‧. ‧ 國. 立. US$ 220,000.00 治政 US$ 10,000.00 大 US$ 40,000.00. n. er. io. sit. y. Nat. al. Ch. engchi. 25. i Un. v.

(32) V. Operative Plan 5.1 Phase One-Prototype-Progress-98%. Phase One- Prototype. Time Frame (Months) 1. Activities:. 2. 3. 4. 5. First sponsor agreement Concept design Dataflow design Website sketches design Graphic features design Definition of Channels and Themes Contact first batch of experts. 立. First partnership agreement. 政治大. ‧ 國. 學. Production of first round of presentations. Publish first round of videos. n. 1.. Finalize primaryawebsite l C design h. 2. Have a working prototype. y. sit. io. Objectives. Key Stakeholders. er. Launch. Nat. Debugging. ‧. Start beta testing (site available through private invitation). iv n U Topping e nSeymour g c handi Audrey Experts:. Michael Chinnoy. 3. Create awareness about the site in expert circles 4. Interview first round of iChina experts.. 26. 6. 7. 8. 9.

(33) 5.2 Phase Two-Launch Promotion. Phase Two-Launch Promotion. Time Frame (Weeks) 1. Activities:. 2. 3. 4. 5. 6. Eliminate Password Press Release Partner Outreach Blogger Outreach Traditional Media Outreach Announcement to Pamirlaw Mail list Objectives. 立. site in the target audience.. Bloggers:. 學. ‧ 國. 1. Create awareness about the. 政治大 Key Stakeholders Danwei, CDT, China Hearsay,. increasing progressively the. Partners:. revenue coming from ads,. USC, Taipei Chambers, Friendly. premium content and. NGOs.. y. ‧. Tw Blog.. Nat. 2. Recruit new sponsors while. er. io. sit. memberships.. n. 5.3 Phase Three: Post-Launch Ongoing Activities a v On-going activities 1. 2. 3. 4. 5. 6. 7.. i l C n U hengchi. Speaker recruitment Promotion in social media Video production Partner recruitment Sponsor recruitment Audience demographic analysis Ad sales. 27. 7. 8. 9.

(34) 5.4 Phase Four: Future Activities (To Be Prioritized and Scheduled) Activities to be defined. 5. 6.. 立. 政治大. 學 ‧. Nat. y. 4.. io. sit. 3.. n. al. er. 2.. Events (first user meet up) Premium content Joint programs with partners (university exchange) Blog Podcast Social network features. ‧ 國. 1.. Ch. engchi. 28. i Un. v.

(35) VI. Resources Needed by Activity 6.1 Content production Human Resources Qty Position 3 Content Coordinators (one for each city, BJ,TPE,SH) 1 Full time video editor 1 Copy writer. 3. Function a. Draft the question for the interviews b. Conduct the interviews c. Program the interviews schedule a. Produce the final videos a. Write all the wording needed by the site including promotion materials and official communications Freelance Personnel Freelance camera operators a. Film the interviews (one for each city) Freelance video editors b. Edit and render final versions of the videos (according to demand needs) Freelance translators c. Translation and subtitles (according to demand needs) Physical Resources. Function Content coordinators and copy writer workstations Video editor working station Video production Video production Video production. ‧. Qty Equipment 3 Regular computers. Nat. sit. er. n. al. y. Heavy duty computer Video cameras Tripod Lightning sets. io. 1 3 3 3. 學. ‧ 國. 立. 政治大. Ch. engchi. 29. i Un. v.

(36) 6.2 Website Management Human Resources Qty Position 1 Web developer. 1. Function a. Develop the data management capabilities of the site b. Perform routine updates. a. Design all the graphic elements of the site and marketing materials. Graphic designer. Physical Resources Qty Equipment 2 Regular computers. Function Workstations. 6.3 Administrative Human Resources. 1. Sales representative. 1. Executive assistant. sit. y. Nat. io. whole project a. Partner and expert and sponsor recruitment b. Define co-creation of content and editorial support strategies c. Enhance the promotion of the site (virtual and conventional) a. Manage advertisers accounts b. Manage donor directory c. Manage member accounts a. Routine clerical task b. Basic accounting task Physical Resources. ‧. ‧ 國. Communication and Marketing manager. 學. 1. 立. 治政Function 大 and execution of the Coordinate the activities. n. al. Qty Equipment 4 Regular computers Qty Real estate 3 Furnished office spaces. er. Qty Position 1 Executive director. Ch. eFunction ngchi. i Un. v. Workstations Common resources Function Headquarters and two branches. 30.

(37) VII.. Financial Plan. 7.1 Cost Structure Fixed Asset Requirements Price Quantity US$ 6,000.00 US$ 537.00 US$ 62.07 US$ 10.00 US$ 14.37 US$ 100.00 US$ 585.00 US$ 647.00 US$ 2,730.00. y. US$. 50.00. US$. 50.00. n. Ch. i e nMonthly g c hCost. Human Resources Executive Director Public Relations and Marketing Manager Sales Representative Executive Assistant Content coordinators (TPE,BJ,SH) Web Developer Graphic Designer Copy writer Sub-total Freelance Personnel Freelance cameramen Freelance video editors Freelance translators Sub-total Total. US$ US$ US$ US$ US$ US$ US$ US$. sit. io. al. Operative Cost Monthly Cost Yearly Cost US$ 800.00 US$ 9,600.00 US$ 900.00 US$ 10,800.00 US$ 700.00 US$ 8,400.00 US$ 100.00 US$ 1,200.00 US$ 100.00 US$ 1,200.00 US$ 100.00 US$ 1,200.00. ‧. Nat. Administrative cost Office Space Taipei (HQ) Office Space Shanghai Office Space Beijing Utilities bill Taipei (HQ) Utilities bill Shanghai Utilities bill Beijing Stationary and office materials (TPE,BJ,SH) Equipment maintenance Sub total. 政治大. Total US$ 6,000.00 US$ 1,611.00 US$ 744.83 US$ 120.00 US$ 172.41 US$ 300.00 US$ 5,265.00 US$ 647.00 US$ 2,730.00 US$ 17,590.24. 學. ‧ 國. 立. 1 3 12 12 12 3 9 1 1. US$. er. Item Office Furnishings Camera (SH+BJ+TPE) Lighting (SH+BJ+TPE) Lighting Stand (SH+BJ+TPE) Microphone (SH+BJ+TPE) Tripod (SH+BJ+TPE) Desktop Computers Heavy Duty Computers (TPE) Software (TP+SH+BJ) Sub Total. i Un. v. 3,000.00 2,000.00 1,000.00 1,000.00 4,500.00 2,000.00 2,000.00 2,000.00. US$ US$. 600.00 600.00 33,600.00. Yearly Cost US$ 36,000.00 US$ 24,000.00 US$ 12,000.00 US$ 12,000.00 US$ 54,000.00 US$ 24,000.00 US$ 24,000.00 US$ 24,000.00 US$ 210,000.00. Monthly Cost Yearly Cost US$ 1,000.00 US$ 12,000.00 US$ 1,000.00 US$ 12,000.00 US$ 500.00 US$ 6,000.00 US$ 30,000.00 US$ 273,600.00. Investment Need First Year: US$ 291,000.00 31.

(38) 7.2 Income Statements until Horizon Most Likely Scenario Year 1. Year 3. Year 5. US$ 180,000.00 US$ 200,000.00 US$ 10,000.00 US$ 13,000.00 US$ 40,000.00 US$ 52,000.00. US$ 220,000.00 US$ 240,000.00 US$ 260,000.00 US$ 16,900.00 US$ 21,970.00 US$ 28,561.00 US$ 67,600.00 US$ 87,880.00 US$ 114,244.00. US$. US$ 16,900.00 US$ 21,970.00 US$. 10,000.00. US$ 13,000.00. US$ 240,000.00 US$ 278,000.00. US$ 321,400.00. US$ US$. 28,800.00 3,600.00. US$ 28,800.00 US$ 28,800.00 US$ US$ 3,600.00 US$ 3,600.00 US$. US$. 600.00. US$ 28,800.00 US$ 3,600.00 US$. 600.00 US$. US$ 600.00 US$ 600.00 US$ 33,600.00 US$ 33,600.00 US$ 210,000.00 US$ 210,000.00 US$ 30,000.00 US$ 30,000.00 US$ 240,000.00 US$ 240,000.00 US$ US$ 38,000.00 US$ US$ 6,460.00 US$ US$ 31,540.00. 立. US$ 371,820.00. 600.00. US$. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 81,400.00 US$ 13,838.00 US$ 67,562.00. 政治大. Worst Case Scenario Year 3. US$. 600.00. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 131,820.00 US$ 22,409.40 US$ 109,410.60. US$ US$ US$ US$ US$ US$ US$ US$. 600.00 33,600.00 210,000.00 30,000.00 240,000.00 191,366.00 32,532.22 158,833.78. Year 5. US$ 200,000.00 US$ 220,000.00 US$ 240,000.00 US$ 7,200.00 US$ 8,640.00 US$ 10,368.00 US$ 36,000.00 US$ 43,200.00 US$ 51,840.00. 10,000.00 US$ 12,000.00 US$ 14,400.00 a US$l 200,000.00 US$ 228,000.00 US$ 257,600.00 iv n Ch e nUS$g 28,800.00 US$ 28,800.00 c h i UUS$ 28,800.00. US$. US$. 3,600.00. US$. US$. 600.00. US$. n. US$. 17,280.00. US$. 20,736.00. US$ 289,120.00 US$ 322,944.00. US$. 3,600.00. US$ US$. 28,800.00 3,600.00. US$ US$. 28,800.00 3,600.00. 600.00 US$. 600.00. US$. 600.00. US$. 600.00. 3,600.00. US$ 600.00 US$ 600.00 US$ 33,600.00 US$ 33,600.00 US$ 210,000.00 US$ 210,000.00 US$ 30,000.00 US$ 30,000.00 US$ 240,000.00 US$ 240,000.00 -US$ 40,000.00 -US$ 12,000.00 -US$ 6,800.00 -US$ 2,040.00 -US$ 33,200.00 -US$ 9,960.00. 32. 28,800.00 3,600.00. 600.00. Year 4. er. io. US$ 160,000.00 US$ 180,000.00 US$ 5,000.00 US$ 6,000.00 US$ 25,000.00 US$ 30,000.00. US$ 431,366.00. y. Year 2. 28,561.00. sit. Year 1. Nat. Revenue Sponsorships Memberships (Increasing in 0.2 Yrl) Advertisement (Increasing in 0.2 Yrl) Miscellaneous (editorial support, donations, others)(Increasing in 0.2 Yrl) Total Revenues Expenses Lease office spaces Utilities Stationary and office materials (TPE,BJ,SH) Equipment maintenance Depreciation (Five years direct method) Salaries Freelance Personnel Total Expenses Operative Income Corporate Tax Net Income. Year 4. ‧. ‧ 國. Year 2. 學. Revenue Sponsorships Memberships (Increasing in 0.3 Yrl) Advertisement (Increasing in 0.3 Yrl) Miscellaneous (editorial support, donations, others)(Increasing in 0.3 Yrl) Total Revenues Expenses Lease office spaces Utilities Stationary and office materials (TPE,BJ,SH) Equipment maintenance Depreciation (Five years direct method) Salaries Freelance Personnel Total Expenses Operative Income Corporate Tax Net Income. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 17,600.00 US$ 2,992.00 US$ 14,608.00. US$ 600.00 US$ 600.00 US$ 33,600.00 US$ 33,600.00 US$ 210,000.00 US$ 210,000.00 US$ 30,000.00 US$ 30,000.00 US$ 240,000.00 US$ 240,000.00 US$ 49,120.00 US$ 82,944.00 US$ 8,350.40 US$ 14,100.48 US$ 40,769.60 US$ 68,843.52.

(39) Best Case Scenario Year 1 Revenue Sponsorships Memberships (Increasing in 0.5 Yrl) Advertisement (Increasing in 0.5 Yrl) Miscellaneous (editorial support, donations, others)(Increasing in 0.5 Yrl) Total Revenues Expenses Lease office spaces Utilities Stationary and office materials (TPE,BJ,SH) Equipment maintenance Depreciation (Five years direct method) Salaries Freelance Personnel Total Expenses Operative Income Corporate Tax Net Income. US$. US$ 22,500.00 US$. 10,000.00 US$ 15,000.00. US$ US$ US$. 28,800.00 US$ 28,800.00 3,600.00 US$ 3,600.00 600.00. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 40,000.00 US$ 6,800.00 US$ 33,200.00. 立. US$. US$ 28,800.00 US$ US$ 3,600.00 US$. 600.00 US$. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 90,000.00 US$ 15,300.00 US$ 74,700.00. US$ 482,500.00. 600.00. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 155,000.00 US$ 26,350.00 US$ 128,650.00. 政治大. 28,800.00 US$ 3,600.00 US$. US$. 600.00. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 242,500.00 US$ 41,225.00 US$ 201,275.00. 2 3 4 5 US$ 31,540.00 US$ 67,562.00 US$ 109,410.60 US$ 158,833.78 US$ 23,178.87 US$ 42,564.57 US$ 59,090.88 US$ 73,539.24 -US$ 9,960.00 US$ 14,608.00 US$ 40,769.60 US$ 68,843.52 -US$ 7,319.64 US$ 9,203.15 US$ 22,018.99 US$ 31,874.20 US$ 107,900.00 US$ 161,850.00 US$ 234,475.00 US$ 335,112.50 US$ 74,700.00 US$ 128,650.00 US$ 201,275.00 US$ 301,912.50. US$. Ch. engchi. i Un. v. through an IPO in the best case scenario or private offering to media companies in the other two, as an established platform the stock of our original investors would have considerably increased its value to that time.. Hurdle rate for the internet industry taken from http://educ.jmu.edu/~drakepp/principles/module7/coc.pdf 33. 600.00. NPV Most Likely US$ 180,783.32 Worst Case US$ 9,725.26 Best Case US$ 722,147.26. Close to the horizon period we hope to sell the stock of the venture. 14. 28,800.00 3,600.00. US$ 600.00 US$ 33,600.00 US$ 210,000.00 US$ 30,000.00 US$ 240,000.00 US$ 363,750.00 US$ 61,837.50 US$ 301,912.50. sit. n. al. 50,625.00. US$ 603,750.00. er. io. 7.4 Exit Strategy. US$ 395,000.00. y. ‧ 國. 1 33,200.00 28,461.21 49,800.00 33,200.00. US$ 330,000.00. 33,750.00 US$. ‧. US$ US$ -US$ -US$ US$ US$. Year 5. 學. 0 17,590.24 17,590.24 17,590.24 17,590.24 17,590.24 17,590.24. Year 4. US$ 260,000.00 US$ 280,000.00 US$ 300,000.00 US$ 22,500.00 US$ 33,750.00 US$ 50,625.00 US$ 90,000.00 US$ 135,000.00 US$ 202,500.00. Nat. -US$ -US$ -US$ -US$ -US$ -US$. Year 3. US$ 220,000.00 US$ 240,000.00 US$ 10,000.00 US$ 15,000.00 US$ 40,000.00 US$ 60,000.00. US$ 280,000.00. 7.3 NPV Analysis14 Scenarios Most Likely Discounted Worst Case Discounted Best Case Discounted Hurdle Rate 16.65%. Year 2.

(40) Organizational Structure15. 立. 政治大. ‧. ‧ 國. 學. Board of Advisors Top Greater China Journalist Top Greater China Academicians Top Greater China CEOs. n. er. io. sit. y. Nat. al. 15. Ch. engchi. i Un. v. Names were omitted in this section due to the privacy policy of the project’s owner. 34.

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