協助初到台灣外國人電子商務平台 - 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. 立. 政治碩士論文. 大. Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 協助初到台灣外國人電子商務平台 er. io. CompareMe: An E-Commerce Platform assisting with the. a. n. v l Cof foreigners inn iTaiwan integration hengchi U. Student: Redwan Halim Advisor: Jack Wu. 中華民國一〇七年六月 June 2018 i. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(2) 協助初到台灣外國人電子商務平台 CompareMe: An E-Commerce Platform assisting with the integration of foreigners in Taiwan. 研究生：哈瑞文. Student: Redwan Halim. 指導教授：吳文傑. 政治大國立政治大學. 學. ‧ 國. 立. Adviser: Jack Wu. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat A Thesis. n. a l to International MBA Program Submitted iv n U i e n g c hUniversity National Chengchi. Ch. in partial fulfillment of the Requirements for the degree of Master in Business Administration 中華民國一〇七年六月 June 2018. i. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(3) Abstract A bi-lingual online e-Commerce Platform offering comparisons on essential services in Taiwan By Redwan Halim This thesis describes the business plan of my start-up online comparison service which will. 政治大 information of all essential day-to-day service providers such as mobile phone plans, credit 立 assist both local Taiwanese and Foreigners in Taiwan save time by consolidating the. ‧ 國. 學. cards, home loans, internet plans, insurance as well as many others, into one platform in order to save time as well as offer an informative choice.. ‧. The service is also offered bilingually in both Chinese and English therefore allowing. y. Nat. sit. foreigners who have newly entered Taiwan integrate into the country in a more efficient. n. al. er. io. manner. The idea came to me when I first arrived in Taiwan in late 2014 and had the struggle. i n U. v. of setting up my life in a country where I was not familiar with the local language, culture or. Ch. engchi. norms. With this experience in hand, I hope that CompareMe can alleviate some of the burden off newly arrived foreigners in Taiwan. This service is also open for local citizens who wish to become empowered in their purchases by making more informed choices and attain savings. This thesis comprises of the entire business plan, from the operations, marketing, market analysis and future growth plans. Keywords: e-Commerce, Web platform, Foreigner assistance, Essential services, bi-lingual services.. i. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(4) TABLE OF CONTENTS 1. Executive Summary.............................................................................................................. 1 1.1. Introduction ..................................................................................................................... 1 1.2. Our Mission & Values ..................................................................................................... 1 1.3. The Company and Management ...................................................................................... 2 2. Service Need .......................................................................................................................... 3. 治政大 2.1. Difficulties of living in Taiwan........................................................................................ 6 立 ‧ 國. 學. 3. Comparative Websites - An Insight .................................................................................... 9. ‧. 4. CompareMe – Service Segments ....................................................................................... 11. sit. y. Nat. 4.1. Entrance to Markets ....................................................................................................... 12. io. er. 4.1.1. Insurance............................................................................................................... 12. al. 4.1.2. Utilities ................................................................................................................. 12. n. v i n Ch Financial Services Sector...................................................................................... 12 engchi U. 4.1.3.. 4.1.4. Travel Services ..................................................................................................... 12 4.1.5. Classifieds section ................................................................................................ 13 4.1.6. Immigration Assistance ........................................................................................ 13 4.2. Objectives and Benefits to Partners ............................................................................... 13 5. Industry & Platform Analysis ........................................................................................... 14 5.1. Life Insurance ................................................................................................................ 14 5.2. Travel Insurance ............................................................................................................ 15. ii. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(5) 5.3. Broadband Internet: ....................................................................................................... 17 5.4. Credit Cards: .................................................................................................................. 18 5.5. Home Loans: ................................................................................................................. 21 5.6. Car/Scooter Insurance.................................................................................................... 24 5.7. Mobile Phone Plans ....................................................................................................... 28 6. Business Proposition (Company Analysis) ....................................................................... 30. 政治大 7. Competitor analysis ............................................................................................................ 32 立. ‧ 國. 學. 7.1. Insurance Competitors ................................................................................................... 32 7.2. Travel Service Competitors ........................................................................................... 32. ‧. 7.3. Classifieds competitors .................................................................................................. 33. sit. y. Nat. n. al. er. io. 8. Key Partners ....................................................................................................................... 35. i n U. v. 8.1. Government Agencies.................................................................................................... 35. Ch. engchi. 8.2. Service Providers ........................................................................................................... 35 8.3. Universities .................................................................................................................... 35 8.4. Foreign Embassies ......................................................................................................... 36 9. Market Impact .................................................................................................................... 37 10. Operational Plan ............................................................................................................... 39 10.1. Sourcing Information................................................................................................... 39. iii. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(6) 10.2. Human Resources: ....................................................................................................... 39 10.2.1.. CEO .................................................................................................................. 40. 10.2.2.. Business Development & Partnerships Manager ............................................. 40. 10.2.3.. Customer Service Manager .............................................................................. 40. 10.2.4.. Customer Service Contractors .......................................................................... 40. 10.2.5.. IT Development Contractors ............................................................................ 41. 11. Revenue Streams ............................................................................................................... 42. 政治大 11.1. Commission Revenue .................................................................................................. 42 立. ‧ 國. 學. 11.2. Advertisement Revenue ............................................................................................... 42 11.3. Preferential positioning ................................................................................................ 42. ‧. 11.4. Marketing Plan............................................................................................................. 43. sit. y. Nat. n. al. er. io. 12. Future Growth Streams ................................................................................................... 45. Ch. i n U. v. 13. Metrics for Success ........................................................................................................... 46. engchi. 13.1. Number of Partners...................................................................................................... 46 13.2. Level of Engagement ................................................................................................... 46 13.3. Return on Investment .................................................................................................. 47 14. Key Financials ................................................................................................................... 48 14.1. Commission Percentage Breakdown ........................................................................... 49 14.2. Forecast Financial Statement ....................................................................................... 50. iv. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(7) 14.3. Explanation of Expenses ............................................................................................. 52 14.3.1.. Office Rent ....................................................................................................... 52. 14.3.2.. Utilities ............................................................................................................. 53. 14.3.3.. Salaries - Permanent Staff ................................................................................ 53. 14.3.4.. Marketing Expense ........................................................................................... 53. 14.3.5.. Platform Development Costs ............................................................................ 53. 14.3.6.. Maintenance of Platform costs ......................................................................... 53. 14.3.7.. Travel Costs – Promotions................................................................................ 53. 14.3.8.. Cost of Contractors ........................................................................................... 54. 14.3.9.. Sponsorships costs ............................................................................................ 54. 立. 政治大. ‧ 國. 學. 14.3.10. Miscellaneous Expenses ................................................................................... 54. ‧. sit. y. Nat. 15. Year 1 Roadmap ................................................................................................................ 55. n. al. er. io. 16. References.......................................................................................................................... 56. Ch. engchi. i n U. v. v. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(8) 1. Executive Summary 1.1. Introduction Every day in Taiwan, a vast number of the population are obliviously spending on essential items without a second thought. These are everyday services such as plans for Mobile Phone, Internet, Credit Cards, as well as various types of insurance. Individuals opt into these services and often continue their subscriptions for them without electing to take the time in comparing the other offerings present in the market.. 政治大. CompareMe is a comparative tool for the prices of everyday essentials such as utilities,. 立. insurance and personal finance needs. By working with the leading providers in Taiwan,. ‧ 國. 學. CompareMe offers a comprehensive database of service offerings detailing comparative features and benefits of services in order to empower the end-consumer to make an. ‧. informative choice. The service platform is offered in both Chinese and English, thus catering. y. Nat. n. al. 1.2. Our Mission & ValuesC h. engchi. er. io. everyday needs in Taiwan as well as local Taiwanese.. sit. to foreigners whom have often found it difficult to find clear English materials for their. i n U. v. CompareMe’s mission is to offer an informative all-in-one solution for everyday items and utilities which allows users to compare prices between different service providers. The CompareMe platform allows users to attain these services through a one-stop solution rather than go through different channels to attain these services. Saving time and giving the best deal to the end consumer. The vision is to become Taiwan’s leading Multi-Channel comparison service, providing the broad consumers with trusted service and product comparisons as well as advice on a large spectrum of service and product partners in the national marketplace.. i. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(9) CompareMe maintains strong values by being transparent to consumers and offering unbiased solutions which are attained directly from service providers. It does not offer favouritism towards any particular brand or service offering and operates ethically for all end-users. All sponsored figures are noted and openly disclosed.. 1.3. The Company and Management CompareMe will be strategically located in Taiwan’s largest city and capital, Taipei. Given the higher commercial activity of Taiwan being largely concentrated in Taipei, it is imperative. 政治大. to maintain a close proximity to this for CompareMe’s development, growth and reachability. 立. with partners. Management will be lead by functional heads whom specialise in their areas of. ‧ 國. 學. responsibility. Further detailed analysis in regards to personnel will be discussed within the “Human Resources” section.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 2. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(10) 2. Service Need As at March 2018, accordingly to the Department of Immigration statistics, Taiwan has over 715,000 foreigners living within the country. They are distributed all throughout the island as demonstrated below in figure 2.1:. Foreigners in Taiwan by Region 120,000. 立. 100,000. y. sit. n. al. er. io. 0. Nat. 20,000. ‧. 40,000. ‧ 國. 60,000. 學. 80,000. 政治大. Ch. engchi. i n U. v. Figure 2.1: Source: https://www.immigration.gov.tw/ct.asp?xItem=1346322&ctNode=29986&mp=2. Taipei and New Taipei city are home to almost 170,000 foreign nationals cumulatively, with Taoyuan and Taichung coming in as the next locations with a largest concentration of foreign nations within Taiwan. Taiwan’s population at present hovers around the 23.7 Million range. Therefore, the ratio of foreigners in Taiwan relative to the total population is a mere 3%. Comparing this to similar countries in Asia such as South Korea where the percentage of foreigners is 3.4% and Japan where it’s only 2.6%. Western countries are more noticeably. 3. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(11) more multi-cultural than those within Asia however it would be difficult to compare nations that have totally different cultural values and norms. The smaller proportion of foreigners can be explained through reasons such as a lack of exploding economic growth in Taiwan compared to more vibrant economies in areas such as the ones present South East Asia or Mainland China. This also explains the shortage of talent in Taiwan. The problem of Taiwan’s talent shortage continues to plague its national economic development. It has been reported that Taiwan has the second most acute shortage of talent in. 政治大. the world, trailing only Japan. With stagnating wages, long working hours and also an. 立. autocratic working culture, many young Taiwanese are choosing to develop their careers. ‧ 國. 學. abroad. Furthermore, adding that the population is expected to decline from more than 23. ‧. million to fewer than 20 million by 2035 if current trends continue, it’s a sad place Taiwan finds itself in at present. This has given rise to the hunt for expat talent. Contact Taiwan, is a. y. Nat. er. io. sit. national Internet Platform mandated by the Ministry of Economic affairs in order to lure quality foreign talent to the nation. There have been some stories of successful employment. n. al. Ch. i n U. v. through the service and surely more to be experienced in the future. Furthermore, Taiwan has. engchi. introduced an “Employment Gold Card” to simplify the working process for foreigner professionals in Taiwan. Foreign special professionals who plan to work in Taiwan can apply to National Immigration Agency for 4-in-1 employment gold card which includes work permit, resident visa, Alien Resident Certificate and re-entry permit. These intricate measures put in place by the government can also be bolstered by promoting Taiwan as a country that is easy to integrate oneself in. It is noted that although the government of Taiwan is trying to lure more foreigners, the rest of the industries, and businesses are somewhat lagging behind.. 4. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(12) The international appeal of Taiwan is required to be bolstered by focusing on its strengths and benefits over its smaller size and lack of economic growth. The top 10 nationalities of foreigners in Taiwan are shown below in figure 2.2:. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. i n U. Figure 2.2 Source: https://horsetoast.github.io/Taiwan-Foreign-Residents/#/. Ch. engchi. v. As we can see, there’s a large contingent of South-East Asian foreigners in Taiwan, the top 5 spots are occupied with Nationals from that particular region. This is largely comprised of laborers whom work in blue collar roles such as caretakers for the elderly, factory workers as well as maids for households. Taiwan’s high quality of life, friendly people, and great healthcare system are all very enticing for people from abroad, however, it is not always easy for foreigners to truly integrate themselves here, especially because of the language barrier.. 5. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(13) Traditional Chinese can be very difficult to read and write for individuals whom do not have a background in languages which are similar. As we saw above, the leading nationals of foreigners present in Taiwan currently, aside from Malaysia, are those that may not have Chinese as a spoken language in their native country. The unique pictogram-style nature of many characters can leave foreigners bamboozled, given that many day-to-day documents, letters and services are conducted only in Chinese, it is often very difficult for foreigners to proceed to complete everyday tasks. This gives a great opportunity for CompareMe to be the. 政治大. leader in this segment and offer a service which can be highly beneficial for foreigners.. 立. 2.1. Difficulties of living in Taiwan. ‧ 國. 學. In order to determine what difficulties foreigners faced in their lives in Taiwan. A survey was conducted to foreigners currently in Taiwan. There were over 150 respondents in this survey.. ‧. Respondents gave their basic details and rated the biggest challenges they had encountered in. io. sit. y. Nat. Taiwan.. n. al. er. There were 8 choices, and the survey asked for the difficulty that was most limiting for the. Ch. i n U. v. respondent. We took away options such as “Job opportunities” or “Friendships” since those. engchi. are often due to Language barriers and cultural differences. Each respondent then filled out their biggest difficulty in Taiwan as a foreigner. The results are demonstrated as below in figure 2.3:. 6. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(14) Difficulties Faced by Foreigners in Taiwan 35% 30% 25% 20% 15% 10% 5% 0%. 政治大. 立. ‧. ‧ 國. 學. Figure 2.3. As you can observe, the biggest issue for foreigners here is the language barrier. This limits. Nat. sit. y. foreigners the most as the economy of Taiwan is not a truly international one therefore the. n. al. er. io. need for people to be proficient in Chinese is high, especially outside of the city, Taipei. The. i n U. v. language barrier effects foreigners on a day to day basis, whether it be for basic things such as. Ch. engchi. ordering a specific type of food or more complex things such as dealing with administrative issues in government departments. CompareMe will assist greatly in this by offering a lot of services on a bilingual platform which can be fully understood by foreigners. Next up is the cultural differences, given that most survey respondents were westerners, this makes sense as the cultural norms that are present in most western countries vary vastly to that existing in Taiwan. Furthermore, this is often overcome by spending time in Taiwan and beginning to adapt to the culture.. 7. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(15) Then comes the lack of belonging. This is a harder problem that is often hard to eradicate. No matter how long a foreigner lives in Taiwan, or how fluent their Chinese language skills become, they will more often than not be visually able to be differentiated from locals. Given the insular culture and largely homogenous population, and the traditional views towards “outsiders” this is something that cannot be totally overcome. Lastly, it’s getting started in Taiwan, which is the direct reason for starting CompareMe in the first place. Getting started in Taiwan is difficult for foreigners. There are lots of new things to. 政治大. consider once a foreigner has moved to Taiwan. Rental property, work permit, national health. 立. insurance card, as well as many other things. To get a solution where a one-stop application. ‧ 國. 學. and platform that can compare and give suggestions to what you want allows for a much more. io. sit. y. Nat. n. al. er. life.. ‧. streamlined process so that foreigners can focus on other aspects of their adaptation to Taiwan. Ch. engchi. i n U. v. 8. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(16) 3. Comparative Websites - An Insight Globally, Business models generally used by comparative website operators are as follows: • ‘Information-only’ sites—these websites provide information about available products but do not operate as a sales channel. Information-only website operators often rely on revenue generated from advertising that appears on their site. • ‘Lead generation’ sites—these comparator website operators have commercial relationships with some or all of the listed service providers and provide consumers with comparisons of. 政治大. products from those providers. The website is used as a platform to generate leads by doing. 立. one or more of the followings:. ‧ 國. 學. − Including a link to the service provider’s website or to another comparator website for the. ‧. consumer to click-through.. sit. y. Nat. − Encouraging the consumer to contact the service provider directly (online or by phone).. n. al. er. io. − Collecting the consumer’s details for the service provider to contact them directly.. Ch. i n U. v. • ‘End-to-end’ sites—these are similar to ‘lead generation’ sites, but rather than generating. engchi. leads, the comparator website operator’s complete sales on behalf of service providers. These operators function in a manner that is similar to that of a traditional insurance or mortgage broker. While the legal relationship is different to that of a broker structure, end-to-end comparator websites operate as a sales channel, promoting and selling products on behalf of the service provider. These operators tend to invest more effort in seeking to convert a contact to a sale and usually operate a call centre as part of an integrated engagement strategy with consumers. 9. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(17) CompareMe will operate more on a hybrid of the “Lead Generation” and “Information Only” rubrics. A number of sectors which CompareMe will enter into will purely stay as “Information Only” due to the nature of the offerings. Generation of Leads will be the key revenue generating activity for CompareMe, through the development of commercial relationships with service providers CompareMe will act as an agent that is able to promote and compare the structure of services, earning its revenue from commission from sales and leads.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 10. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(18) 4. CompareMe – Service Segments The below diagram, figure 4.1 shows a depiction of the streams CompareMe will initially enter within the Taiwan market.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 4.1. 11. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(19) 4.1. Entrance to Markets CompareMe will enter a large spectrum of markets in order to gain traction with local consumers and offer an optimum array of options thus maximising initial acquisition of customers. The initial entry will focus on the following industries:. 4.1.1. Insurance For the Taiwan market CompareMe have identified the following insurance streams to enter: Life, Home, Car, Health, Income Protection. 4.1.2. Utilities In Taiwan the electricity, gas and water are all centralised and monopolised through. 治政 government providers, hence the monthly Utilities streams大 CompareMe will enter are the 立 following: ‧ 國. 學. Mobile phone plans, Home Internet services. ‧. 4.1.3. Financial Services Sector. sit. y. Nat. There are a large number of banks both local and international which operate in Taiwan.. io. al. er. They offer a large spectrum of products and services. This is a key market for CompareMe to. n. strive within and therefore the following streams are to be entered by CompareMe: Home. Ch. Loan, Personal Loans, Credit Cards. engchi. i n U. v. 4.1.4. Travel Services Taiwan’s often been a very popular travel destination for a wide spectrum of visitors globally. However, compared to some other countries in Asia, the language barrier in certain areas of Taiwan can be an opportunity for CompareMe to capitalize especially due to its bilingual service offerings. CompareMe will offer information and a purchase funnel for the following Travel services for tourists: Transportation – High Speed Rail (HSR), Metro Rapid Transit (MRT), Taiwan Railways Administration (TRA), Car Rental, Scooter Rental 12. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(20) Given the HSR, MRT and TRA are government-based services, CompareMe will not be making a profit on top of the price of these services. These are provided mainly to assist the users of our platform whom are overseas and want to make sure their holidays have the information and tools needed for their travelling within the country.. 4.1.5. Classifieds section Furthermore, in order to continue to offering value to end consumers CompareMe will provide bi-lingual service listings for vital services for foreigners in Taiwan. Bi-lingual doctors, dentists clinics, lawyers, accountants as well as real estate agents can be listed on the. 政治大 hope to overcome the language barrier. 立. platform in order to provide improved integration to expats who are residing in Taiwan and. ‧ 國. 學. 4.1.6. Immigration Assistance. With the governments loosening of barriers for Foreigners to work in Taiwan, a link to the. ‧. Taiwan governments Immigration website would be provided in order for new incoming. sit. y. Nat. foreigners to stay up to date with the latest proceedings regarding migration policies. A. io. n. al. er. listing of all foreign embassies in Taiwan would also be provided for foreigners who wish to. v. take part in events or need services that their local countries embassy can assist with.. Ch. engch 4.2. Objectives and Benefits to Partners. i. i n U. Our ideal is to provide a complete picture to consumers before making a choice. Our platform has a dual-incentive notion attached to it. The incentive for service providers is that they gain advertising and exposure through being present on the CompareMe platform, expanding their reach to new customers. For consumers they get a fully bi-lingual service in both English and Chinese which details features, prices, and benefits of each offering they are interested in, bolstering their chances of making an informed, definitive choice. They are able to save time by finding a means to access an array of information and reviews as well as be provided with a channel to make purchase in the same platform thus also saving time. 13. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(21) 5. Industry & Platform Analysis We firstly need to analyse the business environment for each of the sectors we are entering. In order to gauge the competition and key market players in each sector, we are then able to optimise the use of our service based on the characteristics present within the industries.. 5.1. Life Insurance Taiwan’s aging population has given rise to a large array of Life Insurance companies being present within the island. It is common to see many Insurance companies hire Sales Consultants whom use creative means to make sales. CompareMe cuts the long and annoying. 政治大. sales pitches and provides the end consumer with a list of the 23 registered life insurance. 立. companies in Taiwan.. ‧ 國. 學. In order to determine the best policies for Life Insurance the following short form will be completed by applicants as demonstrated in figure 5.1:. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 14. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(22) Figure 5.1. Following this an output of showing the different insurance companies and their monthly premiums will be provided. Applicants can then select which one they are interested in and this will be communicated to the relevant insurance company for a Sales agent to process the. 政治大. transaction or assist further in any potential queries the customer may have.. 立. The above model can be applied to all the insurance stream where a basic form is filled out. ‧ 國. 學. by the applicant in an interactive manner, and then the output of premium prices and features. ‧. being extracted in order to form a comparison. Users are then allowed to pick the service that they wish to choose and then the lead is generated for the sale leading to provider taking the. y. Nat. er. io. sit. relevant steps to then finalise the sale. Following this there will be either a commission charged for the click through lead, or the commission charge for the successful sale of the. al. n. service.. Ch. engchi. i n U. v. 5.2. Travel Insurance Travel Insurance is a strong market for the Taiwan market, especially Taiwanese locals. Taiwan being in a geographical location where travel is very accessible to nearby countries, resulting in the demand for Travel Insurance remaining strong. As shown below the outbound tourist figures from Taiwan have increased year-on-year since 2009.. 15. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(23) 立. 政治大. ‧ 國. 學. Figure 5.2. Source: https://www.statista.com/statistics/321351/taiwan-outbound-tourist-travels/. ‧. Presently, travellers purchase travel insurance through a travel agent or separately when they. sit. y. Nat. make their bookings online. However, these services often have high levels of commissions. io. er. and customers are often unaware of the rival’s prices as they opt for an easy time saving solution rather than a time and cost saving one. The Travel Insurance platform will maintain a. al. n. v i n C h and travel dates asUthe instigators of the search simple form with location, type of cover engchi features.. Figure 5.3. Following the filling out of essential items, a comparative output will be displayed in order for the user to continue comparing covers and their respective features and prices. The site. 16. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(24) will then give the option for the user to fill their details out and proceed with taking out the insurance policy Figure 5.4. 立. 政治大. ‧ 國. 學 ‧. 5.3. Broadband Internet:. The prevalence of the technology sector in Asia has previously lead Taiwan to substantial. y. Nat. sit. growth in the past. Taiwan’s internet is amongst some of the best in the world, with Taiwan. er. io. being ranked amongst the top 20 in the world for global average internet connection speeds.. al. n. v i n Most households never really comeC to think twice about their internet plans or connection hengchi U. speeds. They simply go with what they are contracted with and often fail to shop around to find the best deals available to them. Taiwan has a large spectrum of broadband providers such as Chunghwa Telecom’s HiNet, T-Star as well as many others. The platform will ask for details of the applicant such as desired speeds, address, location and phone number before presenting an output like the following which will detail the features of the plan and the relevant price. This will allow the user to compare between the different plans from each provider before making a final choice. The purchase can be completed once the click-through to the ISP is completed.. 17. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(25) 政治大 Figure 5.5. 立. 5.4. Credit Cards:. ‧ 國. 學. Life without a credit card is almost unthinkable for the current generation of adults. However, credit cards can be confusing for the majority of individuals whom struggle to understand the. ‧. pros and cons of each card. There are so many options offered with rewards and benefits. sit. y. Nat. which are more widespread and unique with time. CompareMe will help simplify this with a. n. al. er. io. intuitive form prior to user shopping around to get a credit card online.. i n U. v. Users can start off their search by giving the website some hints for what they looking for, as follows:. Ch. engchi. Figure 5.6. 18. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(26) CompareMe will then ask users to think about their most purchased items every month and then, in order to scan the listings for the suitable cards that would most benefit the end-user.. 立. 政治大. ‧. ‧ 國. 學. Nat. sit. y. Figure 5.7. n. al. er. io. Rewards are a large part of any credit card program these days. Users then select if they prefer points, cash back or travel rewards.. Ch. engchi. i n U. v. 19. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(27) 學. ‧ 國. 立. 政治大 Figure 5.8. ‧. To determine if a user is a first-time credit card user or using this card concurrently, it is important to ask if this is their only card that they presently have.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5.9 20. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(28) Lastly, after putting in the user’s monthly salary the recommended cards and their features are displayed in a comparative output.. 立. 政治大. ‧ 國. 學. Figure 5.10. This facilitates the true essence of easy to compare and select which is the ethos of. ‧. CompareMe’s philosophy.. sit. y. Nat. 5.5. Home Loans:. n. al. er. io. Buying a home in Taiwan is often a large obstacle for many people. The sky-high prices of. i n U. v. properties result in most people taking out home loans. In order to make sure the end-user. Ch. engchi. attains the right home loan on such a large purchase, it is paramount that they shop around before making that long-term commitment. This service will be useful for Taiwanese locals as the restrictions for property ownership for foreigners can often be a limiting factor in home ownership.. 21. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(29) Figure 5.11. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5.12. 22. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(30) 立. 政治大 Figure 5.13. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5.14. Lastly, after keying in the important information such as income, current credit allowance, and so on. An output is spit out with comparison home loan rates and their features:. 23. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(31) Figure 5.15. 學. ‧ 國. 立. 政治大. 5.6. Car/Scooter Insurance. A car or scooter is the main means of personal transportation in Taiwan. Besides Taipei and. ‧. Kaohsiung, none of the other cities in Taiwan have an MRT system at present. This gives rise. Nat. sit. y. to a number of individuals whom operate a car or a scooter in Taiwan. According to. n. al. er. io. government statistics there are 15 million registered scooters in Taiwan and roughly 21. i n U. v. million cars registered in Taiwan, this is a major market that CompareMe can target due to its. Ch. engchi. mass. It is a legal requirement in Taiwan for all drivers to have third party liability insurance. Any further cover is taken at an individual’s discretion. A car insurance policy can be very complex and in order to simplify this procedure, CompareMe will employ a very simple form which will attain the end users details and then provide them with a comparative quote which they can proceed to finalise into a car insurance policy. First of all, a location of the car, as well as the car’s registration will be entered into CompareMe, as follows:. 24. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(32) Figure 5.16. The specifics are then keyed in, this includes the make, model and year of the vehicle.. 學. ‧ 國. 立. 政治大 Figure 5.17. ‧. Detailed specifics of the vehicle will then be input by the user in order to attain the most accurate representation of the vehicle that is to be insured, as shown on figure 5.18 below.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 25. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(33) 立. 政治大. ‧. ‧ 國. 學 Figure 5.18. sit. y. Nat. n. al. er. io. The essential drivers’ details are then input to give the most fair and accurate quote for the policies, as demonstrated on figure 5.19:. Ch. engchi. i n U. v. Figure 5.19 26. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(34) Desired features are then selected:. 立. 政治大. ‧. ‧ 國. 學 Figure 5.20. Nat. sit. y. After completion of this form, the end product is a number of closely matched. n. al. er. io. insurancepolicies which are suitable for the user to browse through and compare:. Ch. Figure 5.21. engchi. i n U. v. 27. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(35) Most importantly, the output displays the essential features of each policy compared against one another for a true representation of the benefits of each policy.. 立. 政治大. ‧ 國. 學. Figure 5.22. 5.7. Mobile Phone Plans. ‧. In the current times, it somewhat of an essential to have a smartphone capable of servicing. sit. y. Nat. ones demands for digital media consumption and also communication. Phones aren’t just. n. al. er. io. used to make phone calls anymore, they are now a part of our lives and have increasingly. v. become more and more of a reliance for all. Therefore, it is essential to be signed up to the. Ch. engchi. i n U. correct mobile phone plan in order to service the needs of the consumer based on their consumption levels. The CompareMe platform will prompt the user to fill in their monthly needs, weather it be data, call minutes, messages as well as check if they would like a new phone or bring a preexisting phone with them into the plan. The user can also select their current mobile phone provider in order to make an easier transfer of number in the event they make the change to change to a plan from a different mobile network. 28. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(36) Figure 5.23. 政治大 with the plans, and their appropriate features in an intuitive and easy to follow output 立. After the essentials are selected by the user, the CompareMe platform will provide an output. ‧. ‧ 國. 學. represented below.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5.24. Here on in, the user can select the most appropriate plan and go to the site of the mobile network provider directly from CompareMe to complete their purchase. 29. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(37) 6. Business Proposition (Company Analysis) Consumers often find it difficult to compare complex products because the product features of one offer are not directly comparable with those of another. Where they provide a comprehensive upfront needs analysis, CompareMe will allow consumers to filter options based on their needs and can facilitate like-for-like comparison, both on the website and through the application Comparative platforms like CompareMe are almost universally free for consumers to use, with revenue being earned through one of the three business models set out below.. 政治大. The two-primary means of revenue generation are:. 立. • Fee per lead or call. A fee is paid by the service provider for each lead that is generated to. ‧ 國. 學. the service provider. This model includes a fee per ‘click-through’ where a service provider. ‧. pays a fee for each customer that is directed to its website from the comparator website.. sit. y. Nat. • Commission on sales. A commission is paid by the service provider for each successful. io. al. er. sale. Commission is paid either upfront, on a trailing basis (commission paid over a period of. n. 3−4 years, subject to the customer remaining with the service provider) or through a combination of both.. Ch. engchi. i n U. v. Comparator website operators and service providers reported that the fee and commission payments received vary depending on the service provider and sector. For example, in the private health insurance sector, commission payments are generally between 20 to 40 per cent of the first year’s premium, with a trailing fee also payable in some cases. Where a trailing fee is payable, the upfront fee tends to be lower. Additional methods of achieving remuneration include charging for advertising on the comparator website or selling customer data. CompareMe will not sell customer data or disclose private information of consumers however can provide demographic analysis and 30. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(38) optimisation assistance to its clients in order to maximise their return on investments with our platform. CompareMe is simply a platform in order to assist users to compare the costs of essential services in order to ensure that consumers are able to get the best price and features that suit their needs. The information sharing platform is provided through both an online website, as well as a mobile phone application which is available in both Android and iOS. As a user of the service you can save time by not going to each service providers website or store and get quotes for their services, instead you can get a listing of all providers with their. 政治大. relevant prices and this will allow users to make a better and more informed choice.. 立. Providers of services attain a new funnel of getting customers, they can have their service. ‧ 國. 學. offerings exposed to a greater number of users and only pay a commission to CompareMe. ‧. upon a sale being successfully made through the platform or through lead generation. Providers can also pay to advertise their services through the platform, weather it be through. y. Nat. n. al. er. io. sit. advertisements placed on the website of the platform or through the mobile application.. Ch. engchi. i n U. v. 31. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(39) 7. Competitor analysis Presently, there are no services that offer a consolidated solution for users in Taiwan aimed at both locals and foreigners. There are services that focus and specialise on some of the sectors that CompareMe operates within and therefore we will analyse these in order to ascertain the level of competition present within the market currently as well as means CompareMe will take in order to differentiate itself from the market presently.. 7.1. Insurance Competitors The biggest competition CompareMe faces on the Insurance marketplace is the companies. 政治大 customers. CompareMe hopes to counter this as it is a passive solution for Sales and 立. themselves whom often have Field Sales agents who try to sell insurance to prospective. ‧ 國. 學. Marketing for Insurance companies therefore it will not have to pay staff salaries or commissions, instead only pay for commissions for the successful sales through the platform.. ‧. This can in-tune work with the Insurance company sales representatives which is a more. sit. y. Nat. direct and aggressive sales tactic.. n. al. er. io. 7.2. Travel Service Competitors. i n U. v. For travel services that are able to compete with CompareMe there are two start-ups which. Ch. engchi. are attaining a strong level of success, they are KKDay, Klook and Skyscanner. KKDay is a Taipei based travel-start-up founded by Ming Cheng in 2014. This is an ecommerce travel platform that connects travellers with authentic local tours & activities. KKDay focuses more on the outbound market of tourists from Asia that are travelling to either other parts of Asia or the world. It also possesses a commission structure with its partners for each successful sale made through the platform. The company is somewhat of a direct competitor for CompareMe for its travel arm of business. However, CompareMe at its initial stage will focus more on the inbound tourists to Taiwan rather than outbound tourists out of Taiwan. KKDay has multiple offices in Asia and appears that its growth strategy is to 32. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(40) expand to further countries and continue specializing in the travel field rather diversify with its service offering mix. Klook is a similar platform to that of KKDay, founded in Hong Kong in 2014, it provides technology for exploring and booking travel experiences online and on mobile. It teams up directly with operators offering various travel experiences, such as specialty activities, foodthemed excursions and adventure expeditions, shows, and various modes of transport, as well as sightseeing tours and iconic attractions. Skyscanner is a world-famous platform which has thrived in the comparison of flight prices,. 政治大. it also has a “Hire car” section on its website which is less known. Skyscanner can be a threat. 立. to CompareMe for its car hire services as foreigners who are looking to holiday in Taiwan. ‧ 國. 學. could potentially book their flights using Skyscanner and then choose to use the “Car Hire” portion of the Skyscanner platform to try to hire a car. Fortunately, CompareMe will both. ‧. offer Scooter and Car Hire services with local providers around the island rather than just the. y. Nat. er. io. 7.3. Classifieds competitors. n. al. sit. larger commercial providers such as Avis or Hertz.. Ch. i n U. v. For the classifieds section, there are various Facebook groups where foreigners currently post. engchi. items to buy and sell, however, CompareMe plans to offer this service as an addition to its overall offerings more so to assist rather than to compete with existing entrants. It’s pure an information only service where the transfer of information is processed through the platform, which is the medium. There are also various web platforms for classifieds such as Craigslist, Carousell as well as others which have dedicated mobile applications, but given CompareMe’s approach to this segment and there being very little Financial incentive, there is no real intention to compete. 33. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(41) head on head with these enterprises which have dedicated their sole existence to serving this market specifically.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 34. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(42) 8. Key Partners CompareMe is a platform, hence without partners, the platform would simply not work as intended. The following identifies the key partners and their functions in relation to the success of CompareMe.. 8.1. Government Agencies It is known very broadly that Taiwan has suffered a substantial drain of talent whereby educated professional aged men and women how opted to further their careers outside of Taiwan. Often, Taiwanese locals have chosen to go to China in the search of higher salaries. 政治大 the Taiwan economy. Government agencies have taken an effort to use some of their 立. and further career growth. This has lead to extensive skills shortages in various areas amongst. ‧ 國. 學. resources in order to rectify this.. 8.2. Service Providers. ‧. Without the collaboration with Service Providers, CompareMe’s goal and philosophy will be. Nat. sit. y. underutilised. The platform depends heavily on Service Providers seeing the value that. n. al. er. io. CompareMe brings. All service providers on CompareMe have marketing budgets and. i n U. v. investing in the commission paid to CompareMe is to be viewed as a spectrum of introducing their product to new markets. Ch. engchi. 8.3. Universities Universities can assist CompareMe target the foreign student crowd in Taiwan through collaboration and sponsorship arrangements which will get the word out of the benefits of the platform. Taiwan is a very popular destination for foreign students who wish to learn Mandarin Chinese. Therefore, given that most of the students when they are newly arrived, they will not be able to read Chinese characters, it would be highly beneficial for them to be using an all-English platform.. 35. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(43) 8.4. Foreign Embassies Foreign trade offices and embassies can be of great assistance to CompareMe as they have connections to many foreigners in Taiwan. Assisting in events held by embassies would be an excellent opportunity for CompareMe to expand its brand recognition to the foreign community in Taiwan.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 36. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(44) 9. Market Impact The impact of our comparative service is that it can be enabling smaller, less-resourced service providers to compete with larger players by removing some of the barriers to entry for challenger brands. Research conducted by Accenture in 2013 highlights that the comparative platform model allows “…new or sub-scale players to access volume markets”, allowing small players to compete effectively without needing to heavily invest in technology, advertising or agency networks. While commissions and charges for click-through collected by comparator website operators can be sizeable, service providers only need to pay these. 治政大or potential sales, rather than enables service providers to direct marketing spend to actual 立 where the comparator website has made a sale or provided a lead to them. This method. advertising to build brand awareness or develop a physical presence, such as through. ‧ 國. 學. establishing shop fronts. This approach is particularly targeted and cost-effective for small. ‧. service providers who may have limited marketing resources and ability to independently. sit. y. Nat. develop a more general presence in the market. The CompareMe model shifts the marketing. io. er. expenditure on building brand equity from the service providers to the platform operator.. al. This can be seen in the UK where three of the ten highest advertising spenders in the general. n. v i n C h operators. Essentially, insurance market are comparator website e n g c h i U smaller service providers are able to leverage off comparator websites’ brand equity and recognition, rather than needing to invest in developing this for their own brand. For some service providers, comparator websites are regarded as a cheaper marketing and sales channel when compared to more traditional advertising or marketing channels. There is also evidence to suggest that comparator websites can drive sales to smaller service providers with limited brand recognition, thus continuing to level the playing field between larger and smaller players. A recent Australian study by Accenture has shown that more than 45 per cent of consumers will. 37. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(45) not focus on the best brands or reputations in making a purchasing decision on insurance products.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 38. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(46) 10. Operational Plan The operational side of CompareMe will be kept simple in its initial phases in order to allow flexibility as well as facilitate changes as deemed necessary. Given it is a technology company, the following will discuss the sourcing of information for the platform as well as the Human Resource needs.. 10.1. Sourcing Information CompareMe will employ two main approaches for sourcing product information: • Commercial arrangements: the service provider is listed on the CompareMe because it has. 政治大. entered into a listing agreement with the website operator whereby it allows the operator to. 立. list its products, and in return agrees to pay commission or a fee per lead generated.. ‧ 國. 學. • Web scraping: CompareMe uses computer software to extract pricing information. ‧. from other websites, including the service provider’s own website. This can be done without any commercial arrangement being set in place by CompareMe or the service provider.. sit. y. Nat. io. er. Most comparative platform operators use a combination of both approaches so that they can. al. compare across a product market but will only actively sell products directly to the consumer. n. v i n where they have a relationship withC thehservice provider inUorder to generate revenue. engchi 10.2. Human Resources:. Given that CompareMe is a start-up in Taiwan, it will adopt lean operational practices in its first year in order to establish its growth potential and set the guidelines for future operational structures in the coming years. CompareMe will rely on a small team based in Taipei and work with contractors and freelancers for its requests regarding more complex tasks which are outside the boundaries of the current team.. 39. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(47) 10.2.1.CEO It is imperative to have a CEO who’s overlooking the entire CompareMe project from the outset whilst also setting strategic goals, monitoring subordinates as well as involving themselves in the day to day activities required in the running of the organization if and when required. The CEO for CompareMe will have to be a hands-on type who has the ability to solve problems and think long-term.. 10.2.2.Business Development & Partnerships Manager This role is highly critical to CompareMe’s success, as the Business Development and Partnerships manager will collaborate with all the brands in each industry that CompareMe. 治政 will enter and forge partnerships, determine deals, commission 大 levels and influence the 立 growth of the CompareMe platform to a wide spectrum of partners. ‧ 國. 學. 10.2.3.Customer Service Manager. ‧. The whole CompareMe platform wishes to empower consumers, therefore strategic. sit. y. Nat. decisions, remedies and leading of the Customer Service Associates requires a powerful and. io. al. n. role of the Customer Service Manager at CompareMe.. C. hengchi 10.2.4.Customer Service Contractors. er. uplifting individual to drive the internal and external change with a driving force. This is the. i n U. v. In order to maintain our lower cost structure, we hope to use contractors from Philippines as customer service associates whom can speak fluent English and assist our foreign users with their queries, concerns and requests. Furthermore, we will also have local Taiwanese staff whom are native in Chinese and can also speak English in our team to assist with the local portion of our user base. Online support can be set up through LiveChat and help desk functions.. 40. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(48) Figure 10.1 Source: http://www.magellan-solutions.com/studies/philippine-contact-center-industry/. 10.2.5.IT Development Contractors CompareMe is ultimately a technology company, it doesn’t have finished goods, nor does it have high levels of fixed assets, but it has a lot of intangibles and a digital product. This requires maintenance, we will have an in-house IT developer as well as using contractors for. 政治大 applications and remunerate them based on their work, rather than maintain a team of in立 special projects and updates. For our App, we will use creators of iOS and Android. house developers. In the future, as the growth of the company continues, we hope to include a. ‧ 國. 學. development team which can foster both a cohesive work environment as well as continual. ‧. improvement in our final product for end-users.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 41. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(49) 11. Revenue Streams Revenue streams will need to be diversified in order to sustain the longevity of the platform over extensive periods of time. In order to attain profitability, CompareMe cannot rely solely on commissions from click through. 11.1. Commission Revenue This includes up-front commission revenue for some products (One-time purchases) as well as Trail Commission for ongoing products (Insurance products, life insurance etc). Furthermore, CompareMe will get “click-through revenue” for any leads it generates to the. 政治大. providers website which will be at a much lower rate than that of a confirmed sale.. 立. 11.2. Advertisement Revenue. ‧ 國. 學. CompareMe will run on Ads, both the online platform and mobile application will have advertisements in carefully selected areas in order to generation revenue. The website will. ‧. have ad banners, strategically placed in order to generate revenue on a per click basis. The. Nat. sit. y. mobile application will have push notification ads as well as sponsor messages laced through. al. n. end-user experience.. er. io. the application, these will not be too high of an interference as the aim is not to disturb the. Ch. 11.3. Preferential positioning. engchi. i n U. v. Companies can have their listings pinned so they are shown in each search for that category, however CompareMe aims to be transparent about this and will annotate the listing as “Sponsored” so users know that this particular product had given funds to CompareMe for its high listing positioning. Furthermore, the mobile phone application as well as online web platform can publish new and exciting deals that partners wish to promote, through ad banners as well as push notifications. These can be activated for further charges paid to CompareMe.. 42. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(50) 11.4. Marketing Plan Given that CompareMe is an online web platform, as well as a smartphone app, it is imperative to have a strong online marketing presence. Social Media is the fastest means to communicate the offers, updates and promotions for CompareMe. Therefore, CompareMe will utilize the major social media channels to promote its business online. These will be as follows: -. Facebook. -. Twitter. -. Instagram. -. Print Media Advertisements. -. Paid Online Advertisements. -. Banner Advertisements in Places of Interest. -. Sponsorships of Events. 學 ‧. ‧ 國. 立. 政治大. Nat. sit. y. First of all, a strong social media presence will be the easiest way to get clicks into. n. al. er. io. CompareMe, given they are both on the online sphere the flow through to the website is. i n U. v. quick and intuitive. Therefore, we will have an in-house Marketing staff who assists with the. Ch. engchi. management of Facebook, Twitter, and Instagram as well as the paid advertisements both online and offline. The need for offline advertisements in imperative as CompareMe wishes to attract foreigners to using its platform, therefore the targeting of advertisements in locations where Foreigners are most present in Taiwan is imperative. Therefore, partnerships with Universities, Airports as well as collaboration with foreign embassies and popular foreign owned venues will give a strong outreach to the foreign community present in Taiwan. A substantial portion of the first-year budget will be allocated towards creating long-lasting partnerships between CompareMe and powerful stakeholders in Taiwan. This in-turn will also be re-evaluated year 43. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(51) on year in order to determine the re-investment amount into the maintenance of these partnerships as well as the desire to forge and grow further. The positioning of CompareMe from a marketing perspective is to be of a high-technology company, committed to helping empower customers in making more informative purchasing choices. The push towards being customer-focused is a positive one as it can ensure that users get the biggest benefit of all, as they are attaining the best prices and deals.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 44. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(52) 12. Future Growth Streams The aim for CompareMe is not to maintain a stagnant presence in the market but to continue to expand and bring greater empowerment to customers all around the world. Taiwan being the first point of its Operations does not necessarily mean that it will not continue to develop a global presence. The plan for CompareMe going forward to achieve future growth can be described in the following two rubrics. -. Further Geographical Locations to introduce the Platform. -. Continue to add newer service verticals to the platform. 立. 政治大. The first point is to enter new geographical markets with the platform. There are several. ‧ 國. 學. candidates for this to occur. In Asia, we can compare countries that share similar. ‧. characteristics to Taiwan such as Japan, or Korea as they have a small concentration of education foreigners whom would be interested in attaining a platform that assists them. y. Nat. er. io. sit. making more empowered choices.. al. v. n. Next is to add more Services to our platform, this is simply just an add-on to what the. i n C platform currently has. Future Growth h Streams i U e n gcould c hinvolve -. Education: Chinese Mandarin or other language classes. -. Delivery Services: To deliver or track packages in English. -. Pet Insurance: Insurance for the health of pets. As well as many others that can be adapted in the future.. 45. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(53) 13. Metrics for Success In order to determine the success of CompareMe, measures need to be able to be put in place to gauge the performance over certain periods. These measures will change from year to year in order to align with the strategic objectives which will be implemented after the initial phase of entry to the market is completed.. 13.1. Number of Partners. The key metrics for success of CompareMe will be varied throughout the period of its operations. Initially, the focus is not to gain a lot of customers but to attain many partnerships. 政治大 crucial as if partnerships are built and commission structures are agreed, CompareMe can 立. with organizations in order to build up a database of the best deals for everyday items. This is. ‧ 國. 學. begin to offer the best services in each respective field to its users.. Having over 50 brands to work with after one year in its profitable verticals would be a good. ‧. achievement for CompareMe as it would have meant that CompareMe can offer a myriad of. Nat. sit. y. services and attain commissions from them rather than solely relying on advertisement. n. a. er. io. revenue to meet its Financial targets.. 13.2. Level of Engagementl. Ch. engchi. i n U. v. Furthermore, it is great to have a lot of views on our platform, weather it be through the App or the website. A strong metric would be to attaining 800,000 views in the first year. Having this amount of views would also mean a number of these views will convert into advertisement revenue through click throughs, or purchases made through the platform, which results in commission revenue. Another strong indicator of success is the interaction and follows on Social Media. After one year the aim is to have at least 100,000 followers on Instagram, and over 50,000 follows on Facebook. In comparison we can check other e-Commerce comparative sites like KKDay,. 46. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(54) which after 4 years of operation has almost 1.2 million followers on Facebook. Ultimately, the business will thrive on world of mouth and success stories. The higher numbers of interaction between social media accounts, website follows and general build up of services will act as a “testimonial” for future users both calming their scepticism towards the brand they have never used and also providing indirect marketing of its service offerings which will also continue to grow over time as partnerships begin to develop and blossom.. 13.3. Return on Investment In later years with some stability and refinement, the expectation is that CompareMe will. 政治大 comparisons on return on investment from year to year, however, this will obviously be a 立 commence making profits, where we can start to guage the level of performance through. ‧. ‧ 國. 學. metric that is introduced after a year or two of stable operations.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 47. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(55) 14. Key Financials In the first year of operation, CompareMe does not expect to make substantial amounts of profit, especially given the infancy of the company and the need to “try and test” different methods in order to optimize itself into a profitable entity that achieves its strategic goals. Operating at a loss initially, to stabilize the business in its infancy and work towards more concrete longer-term objectives will be the realistic target in year one of operation in Taiwan.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 48. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(56) 14.1. Commission Percentage Breakdown The following diagram shows each products commission percentage. Ongoing Insurance products offer a “Trail commission” where the percentage of the annual premium is paid to CompareMe as commission. Figure 14.1. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 49. i n U. v. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(57) 14.2. Forecast Financial Statement CompareMe has had to assert assumptions in its Revenue forecasting in year 1, the below is a breakdown of the Revenue mix with moderate assumptions in sales. Table 14.2. Profit & Loss (NTD) Revenue. Units in Year 1. Average Price. Commission %. Revenue Amount. Insurance Stream Revenue Car Insurance. 8,000. 2,000. 4%. 640,000. Life Insurance. 246. 30,000. 20%. 1,480,000. Travel Insurance. 2,000. 1,500. 20%. 600,000. Utilities Stream Revenue. 政治大. 2,000. 750. 15%. 225,000. Mobile Phone Services. 3,000. 600. 15%. 450,000. 5. 7,000,000. 0.50%. 175,000. Tour Activities. 5,000. 2,000. 10%. 1,000,000. Platform Advertising Revenue. 12. 64,167. -. 770,000. Click Through Revenue Total Revenue. Variable. 200,000. -. 200,000 5,702,500. 立. Finance Stream Revenue. ‧ 國. Home Loans. 學. Internet Services. Travel Services Revenue. Salaries - Permanent Staff Marketing Expense. 480,000 120,000. C3,200,000 hengchi 1,200,000. Platform Development Costs. 580,000. Maintenance of Platform costs. 200,000. Travel Costs - Promotions. 60,000. Cost of Web Contractors. 500,000. Sponsorships costs. 500,000. Misc. Expenses Total Expenses. sit. y. al. n. Utilities. Year 1. er. io. Office Rent. ‧. Nat. Table 14.3 Expenses. i n U. v. 120,000 6,960,000. 50. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(58) The above figures point to a 1.2M loss in the first year, however in subsequent years, the platform development costs will be erased and expectations of higher sales numbers due to increased market presence would be expected also. We will also enter more streams year on year in order to increase the spread and depth of our service offerings. The below is a 5-year forecast assuming positive growth and meeting the annual targets of the strategic framework. Profit & Loss (NTD). 政治大. Y2. Y4. Y5. 8,804,000. 9,904,500. 11,005,000. 480,000. 480,000. 480,000. 480,000. 120,000. 120,000. 120,000. 120,000. Salaries - Permanent Staff. 4,200,000. 4,300,000. 4,300,000. 4,300,000. Marketing Expense Maintenance of Platform costs. 700,000. 500,000. 450,000. 300,000. 200,000. 125,000. 100,000. 75,000. 60,000. 50,000. 50,000. 50,000. 立. y. Nat. io. Travel Costs - Promotions. a500,000 450,000 450,000 iv l C n h 400,000 e n g 300,000 c h i U 250,000. n Cost of Web Contractors Sponsorships costs. sit. Utilities. er. Office Rent. ‧ 國. Expenses. ‧. 7,703,500. 學. Revenue. Y3. 450,000 200,000. Misc. Expenses. 100,000. 100,000. 100,000. 100,000. Total Expenses. 6,760,000. 6,425,000. 6,300,000. 6,075,000. Net Profit. 943,500. 2,379,000. 3,604,500. 4,930,000. Table 14.4. In order to determine the time it will take for CompareMe to break even, the following cumulative figure is taken into account on a year to year basis and then scribed onto a graph against the number of years, as the measuring axis.. 51. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(59) Year. Year 1. Cumulative Profit. -1,257,500. Year 2. Year 3. Year 4. Year 5. -. 1,965,000. 5,569,500. 10,499,500. 414,000. Table 14.5. Break Even Analysis. 10,499,500. Break Even Point, after 2 years of operation. 政治大. 立. -414,000. YEAR 1. YEAR 2. 1,965,000 YEAR 3. 學. YEAR 4. YEAR 5. ‧. ‧ 國. -1,257,500. 5,569,500. Figure 14.6. y. Nat. sit. 14.3. Explanation of Expenses. n. al. er. io. CompareMe will be started with a capital investment made from the founders and CEO of. i n U. v. $100,000 USD, which is the equivalent of $3M NTD, this will fund the organisation through. Ch. engchi. the initial phase of operations as partners and awareness are increased. Below, the operating expenses are detailed in more detail.. 14.3.1.Office Rent Monthly rental for a small office that can house 10 staff, the office is to be located in downtown Taipei and offer the minimum requirements to have a comfortable work environment. 52. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(60) 14.3.2.Utilities Hosting charges, electricity, tea, coffee, water all of which are included within the Utilities bills.. 14.3.3.Salaries - Permanent Staff The salaries of the of the permanent staff are included in this fee.. 14.3.4.Marketing Expense Expenses relating to branding, promotions, advertisements, merchandise. Initial year of. 政治大. operation will have a higher expense for this category due to the entrance being pivotal in. 立. order to build a strong brand equity.. ‧ 國. 學. 14.3.5.Platform Development Costs. We have used quotes from two Taiwanese application and website developers in order to. ‧. determine this figure, Mores Technology Co and Soleil Software Studio. This covers the cost. y. Nat. io. sit. of sourcing information as well as developing both the back end and front end of our platform. n. al. er. as well as the training and assistance provided to our in-house development specialist.. C hcosts 14.3.6.Maintenance of Platform. engchi. i n U. v. Costs relating to outsourcing and upgrades of the platform to facilitate product innovation and changes. These can be through software back-end updates, website maintenance, as well as layout changes.. 14.3.7.Travel Costs – Promotions Promotional expenses for trade shows or conferences to promote CompareMe. Often, especially in the first year, there might be Taiwan-wide events that Senior Management may choose to attend in order to promote CompareMe to a wider audience.. 53. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(61) 14.3.8.Cost of Contractors Customer service contractors as well as freelancers for development projects. These are often managed by the team at the CompareMe office, and competitive rates are found through sites such as Fiverr and Upwork.. 14.3.9.Sponsorships costs Sponsoring of events, university societies, clubs as well as online web influencers. This will give CompareMe some further reach in new audiences through the short sponsor messages. 政治大. and introductions from various channels of viewership and reach to the wider community.. 立. Miscellaneous Expenses. 學. ‧ 國. 14.3.10.. The expenses which arise inadvertently and cannot be foreseen are covered by Miscellaneous expenses category. This is to act as a buffer in case some changes occur to operational. ‧. expectations which were not necessarily catered for.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 54. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(62) 15. Year 1 Roadmap It’s obvious that CompareMe cannot start off in its first year servicing every sector hence we have structured a roadmap to guide the entrance to in the first year, in it we see that initially CompareMe will enter 3-4 sectors then grow from there depending on success attained.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 55. i n U. v. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.

(63) 16. References Standing tall: how Australian insurers can achieve profitable growth in a challenging market, Accenture, 2013 Available: https://insuranceblog.accenture.com/wp-content/uploads/2014/02/Accentureaustralian-insurers-profitable-growth-challenging-market.pdf [Accessed May 24th 2018] Price comparison website: consumer market research, Financial Conduct Authority, London, June 2014. 政治大. Available: https://www.fca.org.uk/publication/research/price-comparison-website-consumer-. 立. research.pdf [Accessed March 19th 2018]. ‧ 國. 學. The Treasury, Discussion paper: Addressing the high cost of home and strata title insurance. ‧. in North Queensland, The Treasury, Canberra, 9 May 2014. sit. y. Nat. http://www.treasury.gov.au/~/media/Treasury/Consultations%20and%20Reviews/Consultatio. io. al. er. ns/2014/Addressing%20the%20high%20cost%20of%20home%20and%20strata%20title%20i. n. nsurance%20in%20North%20Queensland/Key%20Documents/PDF/DP_NQ_home_strata_in. Ch. engchi. surance.ashx, p. 11 [Accessed April 29th 2018]. i n U. v. The comparator website industry in Australia: An Australian Competition and Consumer Commission report, ACCC Australia, November 2014 https://www.accc.gov.au/system/files/926_Comparator%20website%20industry%20in%20Au stralia%20report_FA.pdf [Accessed March 25th 2018] iSelect Case Study: The Power of Quality People, Plan It Testing, November 2017 https://www.planittesting.com/us/Insights/2017/iSelect-Case-Study [Accessed May 25th 2018]. 56. DOI:10.6814/THE.NCCU.IMBA.031.2018.F08.