一個新型態的迷你倉模式 : 結合第三方物流和線下門市的迷你倉服務 - 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. 政治大立Master’s Thesis. ‧ 國. 學. 一個新型態的迷你倉模式:. ‧. sit. y. Nat. 結合第三方物流和線下門市的迷你倉服務 er. io. A new business model of mini-storage industry:. n. a lcombined with third-party v i the mini-storage logistics and n C hengchi U. offline shop service. Student: Melvin Liao Advisor: Professor Jack Wu. 中華民國一○七年六月 June 2018. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(2) 一個新型態的迷你倉模式: 結合第三方物流和線下門市的迷你倉服務 A new business model of mini-storage industry: the mini-storage combined with third-party logistics and offline shop service. 研究生：廖承中指導教授：吳文傑. 立. Student: Melvin Liao. 政治大. ‧ 國. 學. 國立政治大學. Advisor: Jack Wu. 商學院國際經營管理英語碩士學位學程. ‧. 碩士論文. A Thesis. er. io. sit. y. Nat. al. n. v i n C International Submitted to h e n g c hMBA i U Program National Chengchi University in partial fulfilment of the Requirements for the degree of Master in Business Administration. 中華民國一○七年六月 June 2018. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(3) Abstract A new business model of mini-storage industry: the mini-storage combined with third-party logistics and offline shop service By Melvin Liao. 政治大 of rapid development on recent years. It will affect the quality of living seriously, especially in 立 The most serious of the metropolitan in Taiwan is high house price and rental fee, because. ‧ 國. 學. Taipei. A normal family on Taipei doesn’t have enough storage space due to a small house. Besides, small and medium enterprises often reduce their office space to save the rental cost. ‧. in recent years. Even they move to a co-working space or business center to replace renting an. sit. y. Nat. own office.. io. er. So, many people living in the metropolitan have the demand to additional storage space.. al. v i n C hstorage space forUthe customer. The location of to offers the flexible and independent engchi n. The mini-storage industry is just for these kinds of customer. It is a new type storage industry. warehouse is not in the far industrial area but in the business district or residential area in the city center. It will be more convenient for the near people living in these business circle or community. Depending on this new additional service, the mini-storage industry will increase more additional value. It will enhance the revenue and gain more net income at least 30 percent. When the increasing of logistics volume, the mini-storage industry can hire more variable human powers to create higher value of every mini-storage branches.. i. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(4) TABLE OF CONTENTS 1. Executive Summary.............................................................................................................. 1 2. General Company Description ............................................................................................ 4 2.1. Mission Statement............................................................................................................ 4 2.2. Company Goals and Objectives ....................................................................................... 4 2.3. Business Philosophy ........................................................................................................ 5. 政治大. 2.4. Describe your industry ..................................................................................................... 5. 立. 2.5. Describe your most important company strengths and core competencies ..................... 6. ‧ 國. 學. 3. canvas analysis ...................................................................................................................... 7. ‧. 3.1. Value proposition:............................................................................................................ 7. y. Nat. io. sit. 3.2. Target audience................................................................................................................ 7. n. al. er. 3.3. Customer relationship ...................................................................................................... 8. Ch. i n U. v. 3.4. Channel ............................................................................................................................ 9. engchi. 3.5. Key resource .................................................................................................................. 10 3.6. Key partner .................................................................................................................... 11 3.7. Key actitivty ................................................................................................................... 13 3.8. Revenue streams and cost structure ............................................................................... 15 4. Marketing plan ................................................................................................................... 16 4.1. Market scale analysis ..................................................................................................... 16 4.2. competitor analysis ........................................................................................................ 19 ii. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(5) 4.3. competitive advantage analysis ..................................................................................... 20 4.4. potential risk analysis..................................................................................................... 22 4.5. pricing strategy: ............................................................................................................. 23 4.6. marketing program ......................................................................................................... 24 5. Operational plan ................................................................................................................. 27 6. Financial plan...................................................................................................................... 30. 政治大. 7. Conclusion ........................................................................................................................... 36. 立. 8. Appendix ............................................................................................................................. 38. ‧. ‧ 國. 學 List of Figures and Tables. Nat. io. sit. y. Figure 1 Value proposition by CANVAS analysis...................................................................... 7. er. Figure 2 Target audience by CANVAS analysis......................................................................... 8. al. n. v i n C h by CANVASUanalysis ............................................. 9 Figure 3 Customer relationship difference engchi Figure 4 Channel by CANVAS analysis................................................................................... 10 Figure 5 Key resource by CANVAS analysis ........................................................................... 11 Figure 6 Key partner by CANVAS analysis ............................................................................. 12 Figure 7 Key activity by CANVAS analysis ............................................................................ 15 Figure 8 the mini-storage development in American ............................................................... 16 Figure 9 gross floor area per capita in SQF .............................................................................. 17 iii. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(6) Figure 10 The e-commerce gross revenue in Taiwan ............................................................... 18 Figure 11 the branches of major brand mini-storage in Taiwan ............................................... 19 Figure 12 EZFUN four competitive advantage factors ............................................................ 22 Figure 13 potential risk analysis: two kinds of new potential competitor ................................ 23 Figure 14Three stages of marketing program........................................................................... 26. 政治大. Figure 15additional operation cost due to new business service .............................................. 28. 立. Figure 16 operational forecast by different stage ..................................................................... 29. ‧ 國. 學. Figure 17 forecast income statement on 2017-2022................................................................. 35. ‧. Figure 18 New model will cause a win-win game between EZFUN with the TA ................... 37. io. sit. y. Nat. er. Table 1 Balance sheet on 2017 end of year .............................................................................. 31. al. n. v i n C........................................................................................... Table 2 Income statement on 2017 32 hengchi U Table 3 forecast income statement in the next five years ......................................................... 32 Table 4forecast balance sheet in the next five years ................................................................. 34. iv. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(7) 1. Executive Summary The most serious of the metropolitan in Taiwan is high house price and rental fee, because of rapid development on recent years. It will affect the quality of living seriously, especially in Taipei. A normal family on Taipei doesn’t have enough storage space due to a small house. Besides, small and medium enterprises often reduce their office space to save the rental cost in recent years. Even they move to a co-working space or business center to replace renting an own office.. 治政 So, many people living in the metropolitan have the demand 大 to additional storage space. 立 The mini-storage industry is just for these kinds of customer. It is a new type storage industry ‧ 國. 學. to offers the flexible and independent storage space for the customer. The location of. ‧. warehouse is not in the far industrial area but in the business district or residential area in the city center. It will be more convenient for the near people living in these business circle or. er. io. sit. y. Nat. community.. The size of mini-storage is different with traditional big size warehouse. It is smaller than. n. al. Ch. i n U. v. traditional one. Every customer has an independent storage unit and he can chose any size one. engchi. which he needs. One the other hand, they have the right of access control system, and they can enter or pick up the goods freely by themselves without the mini-storage staff member support. It is very convenient and flexible for the customers. The first mini-storage industry in Taiwan is “More Space” from 2009. After this year, this industry grows very quickly. Until 2018, there are about 30 mini-storage industries, and there are totally more than one hundred mini-storage branches in Taiwan. No matter the total value of production or the number of branches, it also grows up very hugely and rapidly. Besides Taipei city, other cities also have mini-storage branches, for. 1. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(8) example Taichung, Hsinchu, or Kaohsiung city. However, most mini-storage industries still maintain the same business model, they just offer the small size storage service. They only offer the additional storage space for the family or small and medium enterprise to solve their storage problem. But, the additional value of storage service is very low and it will limit the highest revenue due to the total numbers of mini-storage unit. Therefore, the business model still stays the simple “second landlord model”. The revenue only depends on the rental fee.. 政治大. On the other hand, according to the Institute for Information Industry report (2016), there. 立. are twenty thousand new small e-commerce sellers. The total output value of B2C and C2C is. ‧ 國. 學. up to one trillion NTD. And it maintains double-digit growth in these industries. This kind of small and medium e-commerce sellers almost don’t have their own warehouse and logistic. ‧. system. They often package and manage their stocks at home. Therefore, they need the third-. y. Nat. sit. party logistic service. However, the traditional third-party logistics service can’t satisfy their. n. al. er. io. demand because no flexibility of storage space and more work package with customized. i n U. v. processing. So, they want to a new third-party logistics model to solve their problems.. Ch. engchi. According to these research reports, if we can integrate the advantage of mini-storage in the city center, we will create a new model third-party logistics for the small and medium ecommerce sellers. They don’t need to establish own warehouse or hide the fixed warehouse management employee. Besides, they can outsource the logistics jobs rather than do it by themselves. On the other hand, the mini-storage location is near the downtown or MRT station, so it will offer the pickup service in the convenience store. Even though the customer can make the face-to-face transaction by mini-storage clerks. The new model business will become the small size logistics center in the downtown. It will integrate the total logistics solution, 2. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(9) including taking inventory, storage management, package processing, convenience delivery and face-to-face transaction. Depending on this new additional service, the mini-storage industry will increase more additional value. It will enhance the revenue and gain more net income at least 30 percent. When the increasing of logistics volume, the mini-storage industry can hire more variable human powers to create higher value of every mini-storage branches.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 3. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(10) 2. General Company Description 2.1. Mission Statement I had started a mini-storage which name is EZFUN from 2013, and now it has seven branches in greater Taipei area. However, I want to establish a new model mini-storage service to expand my enterprise and enhance the competitiveness in the recent market. It’s not only a storage service for the family or small and medium enterprise, but also a third-party logistics service including taking inventory, storage management, package processing,. 治政 convenience delivery and face-to-face transaction for the大 small size e-commerce sellers. 立 Because this kind of small size e-commerce sellers don’t have much stock, they don’t need ‧ 國. 學. a big size storage space or establish their own warehouse. In addition to these type sellers. ‧. often have other job, they just take a second job for the e-commerce or online auction. So, they don’t have more extra-time to finish the logistics jobs. However, they don’t have much. y. Nat. er. io. sit. budget to hire full-time employee or pay for the third-party logistics industry. Therefore, I will establish a new model mini-storage service combined with the third-party. n. al. Ch. i n U. v. logistics service. These small size warehouse will be established in the city center near the. engchi. MRT, and it will offer more flexible, more convenient and quicker logistics for these target audience.. 2.2. Company Goals and Objectives The target audience is the small and medium size e-commerce seller, group buying businessman or oversea purchase broker. They often have other jobs and just take a part-time work for the online shopping business. So, it’s not cost-effective to establish their own warehouse or logistics system due to small scale and unstable orders.. 4. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(11) The new model third-party logistics will help them enhance the operation efficiency and save the cost. These e-commerce sellers can focus on other more valuable tasks which they should execute, for example selecting the goods, finding the cooperation channel, taking the marketing proposal or optimizing the advertisement.. 2.3. Business Philosophy EZFUN is not only a storage industry, but also a service industry. I want to create more. 政治大. additional value and help my customers earn more revenue. My business philosophy is. 立. altruism because if the new model succeeds or not will depend on the customer business. It is. ‧ 國. 學. very different with the traditional mini-storage model. Besides the rental fee, the logistics service fee will be the major source of income in the new model. So it’s very important to. ‧. support our customers to grow up and get more orders.. sit. y. Nat. n. al. er. io. 2.4. Describe your industry. i n U. v. The first mini-storage occurred on 2009, and this industry grows very quickly. There are. Ch. engchi. more than one hundred mini-storage branches in Taiwan this year. The desire of more storage space is a rigid demand in recent years. On the other side, the e-commerce also develops very rapidly and hugely. The purchase habit is changing from the offline store to online shop. It causes many people to take a second job to become online sellers or oversea purchase brokers. In conclusion, this is a very potential industry and maybe will have a double growth in next five years. So, I will take the first-mover advantage and optimize my service from the feedback of our clients continuously.. 5. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(12) 2.5. Describe your most important company strengths and core competencies what is the reason that not many companies focus on this area if this is a so potential market? The possible reasons are the following three points Low gross revenue per user: The target audience are usually little scale sellers. Maybe one seller only has several hundred numbers packages one month, even less dozens. So, the general third-party logistics company doesn’t want to involve in these markets. However, the mini-storage has smaller and flexible storage space and can receive less package volumes.. 政治大. But, EZFUN can charge more unit price for the customized service to support this revenue. 立. model. On the other side, we have storage rental fee incomes and plus the additional logistics. ‧ 國. 學. service fee. This pricing strategy will win over other traditional industry. Complicated package and customized delivery process: Standard logistics process is. ‧. necessary for the traditional third-party logistics industry. They need finish the task by much. y. Nat. sit. automated equipment. However, the too much automated and standard principle doesn’t. n. al. er. io. match the customized demand. The EZFUN has collected many user’s data for five years.. i n U. v. And it will be the most important niche for the new business model. We know what they think and what they want. Ch. engchi. Marketing strategy and ecosystem for small e-commerce sellers: The pain point of our target audience is not only storage and logistics service, but also marketing support. EZFUN can offer a very good and convenient location near MRT station. In other word, the ministorage will become a new style offline shop. If the e-commerce sellers can take advantage of this location, they will create many marketing strategies and events. The storekeeper can help them to execute some marketing events, for example, a flash event, pop-up store, an offline experience activity or a free trial event.. 6. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(13) 3. canvas analysis I want to use this tool to analyze the new business model factors.. 3.1. Value proposition: It is the most important factor to every business model. We must define a clear and strong value proposition to our target audience. For the small e-commerce seller and oversea purchase broker, we will offer not only storage space, but also customized third-party logistics service.. 立. 政治大. Besides, it can control their cost efficiently to help the manage the warehouse and stock,. ‧ 國. 學. even though offer more offline marketing events. These online e-commerce sellers will have a. ‧. total clicks-and-mortar business model. Online to offline conception will help them take much advantage in this competitive online shopping market.. n. al. er. io. sit. y. Nat flexible storage with customized logistics service. Ch. offline marketing event. engchi. i n U. v. O2O business model. Figure 1 Value proposition by CANVAS analysis. 3.2. Target audience According to my observation and feedback from customer from this years, I will set the customer segmentation for this model. The new third-party logistics will focus on the small ecommerce seller, group buying businessman or oversea purchase broker. This group members are young, trendy, and willing to accept new change. 7. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(14) On the other side, Therefore, they will hope the more flexible, customized and multipleangel service. In order to face the competitive and changing e-commerce market, the enterprise must maintain the motivation to satisfy this type customer’s desire.. 政治大 Target audince. 學. ‧ 國. 立. small ecomme oversea rce purcha seller se broker group buying busines sman. ‧. Figure 2 Target audience by CANVAS analysis. sit. y. Nat. io. er. 3.3. Customer relationship. al. v i n relationship is simple and weak. C It doesn’t more value for the customer. A strong h e nproduce gchi U n. A traditional third-party logistics company is just a service provider. The customer. relationship between service provider with target audience should create the new value more than solve the customer’s pain point or finish the job. I think it should be a “partner relationship” between this new business model with target audience. EZFUN can offer them many precious experiences to cut down their cost or optimize the logistics process by cooperation. Even though, EZFUN will become their consultant to provide marketing suggestion.. 8. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(15) Traditional logistics company. EZFUN •partner •consultant. •service provider. 立. 政治大. Figure 3 Customer relationship difference by CANVAS analysis. ‧. ‧ 國. 學. 3.4. Channel. sit. y. Nat. The online advertisement will be the major channel to our target audience, for example. io. er. Facebook, google keyword advertisement and some internet social group. Because EZFUN. al. v i n C h broker skills. ItUwill help enhance the rank when the related e-commerce or oversea purchase engchi n. has a customer pool and many online seller operation experience, I can write some articles. target audience searching the key word. On the other hand, word of mouth marketing is also an important and effective marketing channel. Echo chamber effect will be helpful, I can contact more potential customer by the existing clients. Finally, EZFUN has seven good branches near the city center. I can take advantage of these location to hold some marketing event. It will be a very accurate channel to assemble customer data.. 9. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(16) on line AD. Channel offline branches. WOM marketing. 政治大. Figure 4 Channel by CANVAS analysis. 立. ‧ 國. 學. 3.5. Key resource. EZFUN has a chance to establish the small and medium e-commerce seller ecosystem. By. ‧. one-stop service, it will integrate logistics and offline store service.. y. Nat. sit. To compare with the traditional warehouse, the EZFUN branches location is better and more. n. al. er. io. convenient than it. For the small logistics center in the city center, the location is very. i n U. v. significant. The customer will not only take advantage of EZFUN for storage, but also offline. Ch. engchi. shop or experienced store marketing location. The location is the most important to their clients if willing to involve this marketing event and go to shop or pick up the goods in the offline shop. On the other hand, EZFUN mini-storage has the air conditioning and controls the temperature between 25-28 degree. The layout and environment level is quality and match the demand of these target audience more. There are many e-commerce sellers who want to find a better storage environment, and it’s because that their commodity is maybe food or more expensive one.. 10. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(17) Finally, EZFUN can hold an e-commerce service ecosystem. There are many e-commerce sellers gathering in here for a long time. I have definite data and much meaningful information for our target audience. I will use it to help my customer enhance operational performance, decrease the cost and integrate the resource horizontally and vertically.. warehouse location. 學. ‧ 國. 立. 政治大 ecosystem. ‧. quality storage enviorment. n. al. er. io. sit. y. Nat. big data. i n U. v. Figure 5 Key resource by CANVAS analysis. 3.6. Key partner. Ch. engchi. Generally, the key partner is estate agents, capitalist, real estate fund or logistics provider for the mini-storage industry. Because the key factor is the find the lower cost space which will decide the competitiveness of the mini-storage industry. However, it’s is very different with my new business model. The capital and the lower cost space will not be the major factor. I want to establish a small and medium e-commerce group. Therefore, my key partner will be e-commerce platform system industry, innovation incubation center, business center and many kinds of innovation startup group.. 11. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(18) Through cooperation with these partners, EZFUN can contact more target audience. These partners maybe have many e-commerce customers, but they can’t offer the storage and logistics service for them. As a result, we will have a mutualism ecosystem to provide a onestop shopping. The small e-commerce seller or individual oversea purchase broker often just has a few employees or even though work by himself alone. They need many various supports from social network, marketing resource, office administrative service and logistics. It will be the niche factor if EZFUN can help them save the management cost and reinforce the business. 政治大. competitiveness.. 學. ‧ 國. 立. Nat. sit. y. ‧. e-commerce platform system industry. n. al. innovation incubation center. er. io. innovation startup group. Ch. engchi. i n U. v. business center. Figure 6 Key partner by CANVAS analysis. 12. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(19) 3.7. Key actitivty EZFUN major service will include the following five items. A. Storage space: It still the core business for the mini-storage industry. Because it is the rigid demand for the general e-commerce customer. The flexible size option of warehouse will attract the kind of customer who has smaller size goods and less shipped quantity. And it is just. 政治大. our target audience for my other additional service.. 立. B. Administrative service:. ‧ 國. 學. The e-commerce seller doesn’t need hire a full-time employee, and our store keeper can help them receive the goods and documents or letters in the office hour. On the other. ‧. hand, they need to set up a company and a registered address for their company by law. y. Nat. sit. regulation when their gross sales revenue is over eighty thousand per month. So, it is. n. al. er. io. very convenient if their company and warehouse address are the same. We can help. i n U. v. them solve some administrative trivial things and waste their cost.. Ch. engchi. C. Third-party logistics: Only storage service will not satisfy the small e-commerce seller and oversea purchase broker. They often have a few employees or even though operate the business alone. The high percentage of them are part-time in the online business and they usually have other full-time job. EZFUN will take advantage of the mini-storage warehouse in the city center to offer the third-party logistics service. It will solve the pain point of the target audience. It is difficult to they find the proper logistics provider because of no economic scale. And too much customized package process will increase the difficulty 13. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(20) for standard process service provider. The flexible and customized third-party logistics service will be the key activity of mine.. D. Offline shop: For the recent e-commerce market, to pick up in the convenience store is the very popular delivery way. Because many e-commerce platforms will offer the free shipping subsidy program to attract the sellers for the market share. On the other hand, the. 政治大. density of convenience store is the first one in the world. But, the traditional warehouse. 立. location is in the industrial area, it can’t offer the convenience store shipping service. ‧ 國. 學. mostly. Furthermore, there are many fakes in the online shop, so the customers maybe want to pick up the goods in the offline shop. If e-commerce seller will have an offline. ‧. shop, it will reinforce the confidence in their customer’s mind. EZFUN storekeeper can. y. Nat. n. al. er. io E. Marketing event:. sit. offer the pickup, demonstration and return as an offline shop function.. Ch. engchi. i n U. v. To establish an e-commerce ecosystem, I will seek for many startup and innovation organization to cooperate. It can integrate some marketing resource to help the online sellers to marketing their business or products. For example, I can hold some marketing or startup topic lectures in my store public space or hold experienced flash retailing in the offline shop. It will bring some interesting marketing effect under the limited budget.. 14. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(21) Third-party logistics Administrative service. Key activity. Storage space. 立. Offline shop. Marketing event. 政治大. Figure 7 Key activity by CANVAS analysis. ‧ 國. 學. 3.8. Revenue streams and cost structure. ‧. I will explain it on the operational plan and financial plan topic.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 15. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(22) 4. Marketing plan I will analyze it from following six parts, market scale analysis, competitor analysis, competitive advantage analysis, potential risk analysis, pricing strategy and marketing program.. 4.1. Market scale analysis According to the Self Storage Association Asia(SSAA) research report(2016), per capita. 治政 square meter of mini-storage is 0.1 in the American, and大 there are over fifty mini-storage 立 branches on 2016. It is very popular service for general American family and there are 10% ‧ 國. 學. American family having a mini-storage unit.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 8 the mini-storage development in American From SSAA research report, (2016). 16. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(23) Then, according to the Taiwan self-storage industry report by the Taiwan Self-Storage Association (2017), per capita square is only o.o29 and there are only 79 mini-storage branches in Taiwan. It shows the result that per capita square of self-storage floor area is less than Hong Kong, Singapore and America very much.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 9 gross floor area per capita in SQF From TSSA, the Taiwan Self-Storage Association, (2017). 17. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(24) This mini-storage demand will accompany the city development. It will be more popular if the development level is higher and the living space is less. In comparison to nearby country Hong Kong and Singapore, the city type is similar with Taiwan. So, I think it is still very potential in the mini-storage industry. The saturation of mini-storage maybe has a big gap. I predict the per capita square of mini-storage should be 0.2 to 0.3 at least by comparison with nearby country. It will still have ten times growth space. On the other hand, according to Department of Commerce E-commerce report in Taiwan. 政治大. (2016), the e-commerce gross revenue still has a high speedy performance by two-digit. 立. growth. Total B2C and C2C gross revenue has exceeded one trillion on 2016. It’s a very. ‧ 國. 學. amazing performance in Taiwan recent years.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 10 The e-commerce gross revenue in Taiwan From The e-commerce research report in Taiwan, (2016). In conclusion, if the mini-storage can combine with e-commerce logistics service, the market potential is very strong.. 18. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(25) 4.2. competitor analysis I will analyze two parts competitor, major mini-storage companies and traditional thirdparty logistics service companies focusing on small scale e-commerce sellers. According to the research report of Taiwan Self-Storage Association, there are twelve ministorage brands with branches on 2017 and they are usually in the greater Taipei area.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 11 the branches of major brand mini-storage in Taiwan From TSSA, the Taiwan Self-Storage Association, (2017). Some of them ever try to do the third-party logistics service, but finally fail not to continue this service. The possible reasons are that the core value and business model is different. The location and the human power quality is very important for the third-party logistics. It needs very convenient location and high quality employee to serve the small e-commerce sellers or oversea purchase broker.. 19. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(26) However, it will increase the operational cost and expand the learning curve. Unless the enterprise really want to change his business model and core value, it will not a easy task. On the other hand, if the mini-storage enterprise has the enough capital and get lower cost location, it still can earn stable and excellent revenue by rental fee income. It will be unnecessary to involve in the new business service. There are a few traditional third-party logistics providers involving in the small ecommerce market recent year, for example Honeycomb company. Besides, there are also a. 政治大. few innovation companies focusing on this area, for example ECFIT company.. 立. However, there are still a lot of difference between these industry with my business model.. ‧ 國. 學. The main factor is still location, and they are in the industrial area not in the business district. It will bring critical factor in the gap between convenience and shipping speed.. ‧. Besides, these companies want to get more shipping quantities, so they will set up many. y. Nat. sit. standard principle and package process. It will exclude so many type small e-commerce. al. n. flexible logistics service.. er. io. sellers and individual oversea purchase brokers. These customers need some customized and. Ch. engchi. i n U. v. In conclusion, if EZFUN can find some good solution and overcome these cost factor, it will create a big competitive advantage.. 4.3. competitive advantage analysis EZFUN will have four competitive advantage factors resulting in overcoming the other competitors. A. First-mover advantage: I have served the small e-commerce seller and oversea purchase broker group for several years. My new business model will focus on what they desire and what I can provide to 20. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(27) match the real demand because of collecting enough data. The customer feedback is very good and meaningful for the new model third-party logistics service. As a result, I trust that it is still a potential market and I have a competitive first-mover advantage if other the same trade wants to involve in this market.. B. Customer orientation: The reason why I want to establish this new third-party logistics service results. 政治大. from the feedback of customer and analysis of empathy map. After gathering much data,. 立. listening what they say and what they want, I create this new business model. It is not just a. ‧ 國. 學. flash thought and a customer orientation service. I believe it will solve the customer pain point and enhance their operational efficiency.. ‧ y. Nat. sit. C. Service differentiation:. n. al. er. io. Storage and logistics are very traditional and big scale industry. However, the enterprise in. i n U. v. order to face the change of business behavior and customer demand, they need to innovate. Ch. engchi. in the different customer segmentation. EZFUN scale is not very big so that we can adjust the service type very quickly and flexibly to fit the demand of our target audience. Too much standard service process maybe not the optimal solution for the differentiational small scale e-commerce market segmentation.. D. Bargaining power In fact, logistics is a very low unit price service so that the enterprise wants to receive big scale customer who has many shipping quantity to earn more logistics service income. However, if I can provide different and customized service, I can charge higher unit price. 21. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(28) Besides, how I offer the additional value will decide if my bargaining power is stronger than others. Through flexible and customized third-logistics service with mini-storage, I have the strong pricing weapon. Firstmover advantage. Bargaining power. 立. EZFUN 治政 competitive 大 advantage. Customer orientation. ‧ 國. 學 ‧. Service differentia tion. y. Nat. n. al 4.4. potential risk analysis. er. io. sit. Figure 12 EZFUN four competitive advantage factors. Ch. engchi. i n U. v. I will analyze potential risk from two parts: service quality with profitable cost and new potential competitor. A. Service quality with profitable cost: Although EZFUN wants to provide flexible and customized one-stop shopping logistics service as possible as I can, it certainly will increase the operational cost, especially in the human power salary. Non-standard service process will enhance the difficult with stable quality and cause the increase employee turnover rate. I will maybe pay higher salary or performance bonus to motivate the employee work hard and adapt the customer demand. How to maintain the gross profit to face the potential risk is very important. 22. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(29) B. New potential competitor In fact, there are more and more enterprises try to enter this potential market. Because the traditional big scale e-commerce market has been saturated, the enterprise wants to find the new growth momentum. As mentioned above, the Honeycomb which is a traditional logistics industry originally also enter this new niche market. They have a big area warehouse space and abundant logistics service experience. In other words, there will be more and more these kind industries involving in the small e-commerce niche market. on. 政治大. the other hand, there are another kind player entering in this market, and it is a e-commerce. 立. start-up company. They have excellent performance in the e-commerce business and wants. ‧ 國. 學. to make a vertical integration. As mentioned above, ECFIT is just this type start-up company. They also realize the pain point of e-commerce seller and have much horizontal. Nat. er. io. sit. y. ‧. resource in the e-commerce marketing area.. a. n. i ve-commerce traditional l C n logistics industry h e n g c h i U start-up company • eg: Honeycomb. • eg: ECFIT. Figure 13 potential risk analysis: two kinds of new potential competitor. 4.5. pricing strategy: Through many related researches about traditional logistics price list, I will use the discriminatory pricing strategy depended on logistics process difficulty and accompanied with 23. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(30) a basic service fee. Because every customer’s demand maybe different totally by various products, the quotation will be also different. The basic service fee is 6800 NTD with 200 shipping units, 12800 NTD with 600 shipping units and 20800 NTD with 1200 shipping units. To give a little benefit per unit price for the bigger scale customer and maintain the basic service income avoiding the waste for the too little shipping units On the other hand, I will charge some other fees by additional service, for example more. 政治大. complex package process, labeling, packing material, delivery by convenience store, or face. 立. to face transaction. In fact, the additional service fee is the key factor to enhance the gross. ‧ 國. 學. revenue and get more customer whom other the same business can’t serve. The pricing strategy doesn’t charge more if the product is more expensive, it is just. ‧. accompanied with the delivery quantity and process difficulty. Besides, when the customer. y. Nat. n. al. er. io. dependence because of the cost reduction with sales growth.. sit. delivery quantity is increasing, they will get beneficial price program. It will result in the. i n U. v. In other word, I want to take advantage of the beneficial discriminatory pricing strategy to. Ch. engchi. develop the customer royalty. It is consistent with our value proposition and customer relationship. We are start-up partners of small e-commerce sellers and oversea purchase brokers.. 4.6. marketing program I will set a three steps marketing program for the new business model A. Initiate stage: In this stage, I will try to let more potential customer to contact the new service as possible as I can. To build the basic new service introduction in the official website and 24. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(31) Facebook fans page, in addition to hold some lectures to promote my new logistics service. Of course, the promotion activities are necessary to attract the first users. This stage should be three to six months. B. Growth stage: After the first stage, we should have basic customers and gather some feedback to adjust our service. The key point is expanding the market share and try to provide the service to the target audience actively. I will enlarge the advertisement budget in the Google. 政治大. keyword advertisement, FB target advertising, and the search engine optimization.. 立. Besides, to share many real experience cases on the office website and blog, it will. ‧ 國. 學. enhance the search rank effectively. This stage will be one to two years. C. Maturity stage. ‧. In the maturity stage, the key point is not only expanding the target audience reach rate,. y. Nat. sit. but also deepening the royalty or average revenue per user. We should suggest our. n. al. er. io. customer how to optimize their marketing strategy and logistics process. By the customer. i n U. v. revenue growth, this new model business will earn more income under the same fixed cost. Ch. engchi. of mine. Besides, a more expensive brand advertisement should by considered, such as television advertisement, radio advertising, or related topic exhibitions.. 25. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(32) maturity stage •optmize the ARPU •brand advertisement •exhibition. growth stage initial stage •introduction in website and FB •lectures •promotion activities. •keyword ad •SEO •expeience case sharing. 政治大. Figure 14Three stages of marketing program. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 26. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(33) 5. Operational plan EZFUN had the seven branches at the end of 2017 and would try to operate this new business model. I will list the additional cost to estimate the effect and operational performance.. A. Storage equipment: I have warehouse and most storage equipment so that it will not be a big expense. But, I. 治政 still need to buy some shelves and roll containers in every 大 branches. It should spend less 立 than 100 thousand NTD. ‧ 國. 學. Inventory Management System. ‧. B.. For the third-party logistics service, an inventory management system is necessary. I will. y. Nat. er. io. sit. use the Software as a Service(SaaS) system to waste the RD expense by myself. It can offer the service on time and pay by the usage amounts. So the one time fee in the first time is. n. al. Ch. i n U. v. only about 50 thousand NTD, and fixed cost per month is five thousand NTD, and then. engchi. variable cost is only four hundred NTD. C. Employee. In the first stage, it is not necessary to add human power because every branches have a storekeeper. So, the additional human resource is a variable cost, it will account for about 30% by the new business income.. D. Marketing expense It will be the main of the total expense. I estimate to pay 20 thousand NTD every month in. 27. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(34) the first stage, 50 thousand NTD in the growth stage and 80 thousand NTD in the maturity stage on average.. E. Remaining fee I need to estimate a preventive expense for the new business service. Maybe it is the administrative expense, management cost, insurance premium, or other miscellaneous expenditure. It will increase the fixed cost 20 thousand NTD every month.. 政治大. one-time cost立 fixed cost. variable cost. ‧ 國. 學. Storage equipment: 100000 System:50000. System: 5000. System: 400 per user. ‧. marketing: 20000. Employee: 30% per user. io. y. sit. Nat. Remaining fee: 20000. n. al. er. Figure 15additional operation cost due to new business service. Ch. engchi. i n U. v. On the other hand, according to the pricing strategy, I can estimate the average revenue per user is 15 thousand NTD which combined basic income with additional service fee. I can calculate the breakeven point by the formula due to the formula by above forecast. If the breakeven point is X, I can get the formula: (150000/5/12) + (5000 + 20000 +20000) = (15000 * X * 70%) – 400 X = 4.56 In other word, if I can get over 5 customer to use this new business, it will be profitable. I will use the conservative operational forecast to estimate the new business income in the initial stage. However, I trust this market is very potential and has a big shortage gap. The e28. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(35) commerce market grows up very quickly and there are so many small sellers who desire the new third-party logistics to help their online shopping business. EZFUN should can get two first users every branch in the initial stage for first year on average. Then, we can add more five small e-commerce sellers in the growth stage for the next two years. Finally, we can add three new customers every branch to reach the saturation per branch in the maturity stage. It will be a meaningful goal to my business model.. 立. 政治大. ‧. ‧ 國. 學. maturity stage. n. a. y. • more 35 users • 2 year. • 14 firstl users Ch • one year e n g c h i. sit. io. initial stage. • 21 new users • Saturation. er. Nat. growth stage. i n U. v. Figure 16 operational forecast by different stage. 29. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(36) 6. Financial plan I will show the original financial statements without the new third-party logistics service. Then, I can forecast the five years income statement and balance sheet in the future. It can be compared with the difference and find when to reach the break-even point after the new investment for the new model business model. Besides, I will make the stability of cash flow to maintain the operational safety for a long time. It is very important to avoid financial risk because of the initial investment and. 政治大. unsatisfied performance goal.. 立. 學. Cash. 7,525,000. ‧ 國. 1.Liquid asset. 5,000,000 525,00. Fixed deposit. 2,000,00. ‧. Accounts receivable. n. al. 14,250,00. Ch. i n U. 2-1.. Equipment and plant asset. 17,500,000. 2-2.. Accumulated depreciation. 2-3.. Refundable deposits. 1,750,000. 1+2.. Asset. 21,775,000. engchi. er. io. sit. y. Nat 2.Fixed asset. v. (5,000,000). 3.Liabilities. 6,300,000. 3-1.. Loans. 0. 3-2.. Accounts payable. 2,500,000. 3-3.. Unearned revenue. 3,800,000 30. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(37) 4.Owner equity. 15,475,000. 4-1.. Capital. 21,000,000. 4-2.. Retained earnings. (5,525,000). 3+4.. Liabilities and Owner Equity. 21,775,000. .Table 1 Balance sheet on 2017 end of year. 政治大 on month revenue. Besides,立 there are 2 million deposits.. There are still five million cash and the accounts receivable account for only 3 percentage. ‧ 國. 學. Because the industry characteristic, there are a lot of equipment and plant assets. And I take the straight-line depreciation method for then years. On the other hand, the seven branches. ‧. need pay the deposit for the landlord.. sit. y. Nat. Now, I only operate by the shareholder capital without loan. The totally capital is up to 21. n. al. er. io. million. Because mini-storage industry has a longer break even point period, EZFUN still. v. have 5 million retained earnings resulted from continuously expansion.. Ch. engchi. i n U. However, it has showed a turn from loss to profit one 2017. And we will stop expanding new branches to develop the new third-party logistics business.. 1.Revenue. 16,800,000. 1-1. 16,800,000. Rental income. 2.Expense. 1,4610,000. 2-1.. Marketing. 600,000. 2-2.. Rental. 6,720,000. 2-3.. Salary. 4,000,000. 2-4.. Administrative. 1,540,000. 31. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(38) 2-5.. Depreciation. 1,750,000. 3.Income. 2,190,000 Table 2 Income statement on 2017. Through these years effort, it has showed a turn from loss to profit on 2017 and the income is about two million. The main expense is rental and salary expense. In fact, the income statement is out of the red and I can keep on this operation scale. But, I. 政治大 Let me show the forecast income 立 statement next five year with new business model according have an opportunity to get more growth momentum if the new business model can succeed.. ‧ 國. 1.Revenue. 2019(F). 2020(F). 2021(F). ‧. 2018(F). 學. the above operational plan forecast.. 2022(F). 18,060,000 21,210,000 24,360,000 28,140,000 28,140,000. Nat. Rental. 16,800,000 16,800,000 16,800,000 16,800,000 16,800,000. 1-2. Logistics. 1,260,000. 7,560,000. 11,340,000 11,340,000. n. er. io. al. 4,410,000. sit. y. 1-1. i n U. v. 2.Expense. 15,625,200 17,014,200 18,043,200 19,638,000 19,638,000. 2-1. Marketing. 840,000. Ch. 2-2.. Rental. 6,720,000. 6,720,000. 2-3.. Salary. 4,378,000. 2-4. Administrative. e n g c1,200,000 hi. 1,200,000. 1,560,000. 1,560,000. 6,720,000. 6,720,000. 6,720,000. 5,323,000. 6,268,000. 7,402,000. 7,402,000. 1,907,200. 1,991,200. 2,075,200. 2,176,000. 2,176,000. 2-5. Depreciation. 1,780,000. 1,780,000. 1,780,000. 1,780,000. 1,780,000. 3.Income. 2,534,800. 4,195,800. 6,316,800. 8,502,000. 8,502,000. Table 3 forecast income statement in the next five years. 32. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(39) 2017. 2018(F). 2019(F). 2020(F). 2021(F). 2022(F). 1.Liquid asset. 7,525,000. 11689800. 17665600. 25762400. 36044400. 46326400. 1-1. 5,000,000. 9,164,800. 15140600. 23237400. 33519400. 43801400. 1-2 Accounts receivable. 525,000. 525,000. 525,000. 525,000. 525,000. 525,000. 1-3 Fixed deposit. 2,000,000. 2,000,000. 2,000,000. 2,000,000. 2,000,000. 2,000,000. 1-4 Fixed asset. 14,250,000. 12,620,000. 10,840,000. 9,060,000. 7,280,000. 5,500,000. 2-1. Equipment and plant asset. 17,500,000. 17,650,000. 17,650,000. 17,650,000. 17,650,000. 17,650,000. 2-2. Accumulated depreciation. (5,000,000). (6,780,000). (8,560,000). (10,340,000). (12,120,000). (13,900,000). 1,750,000. 1,750,000. 1,750,000. 1,750,000. Nat. 24,309,800. 28,505,600. 34,822,400. 6,300,000. 6,300,000. 1,750,000. 21,775,000. io. n. al. sit. y. 1,750,000. 43,324,400. 51,826,400. 6,300,000. 6,300,000. 0. 0. er. Asset. ‧. 1+2.. 政治大. 學. 2-3. Refundable deposits. 立. ‧ 國. Cash. i n U0. v. 3.Liabilities. 6,300,000. 3-1.. 0. C 0 h. 3-2. Accounts payable. 2,500,000. 2,500,000. 2,500,000. 2,500,000. 2,500,000. 2,500,000. 3-3. Unearned revenue. 3,800,000. 3,800,000. 3,800,000. 3,800,000. 3,800,000. 3,800,000. 4.Owner equity. 15,475,000. 18,009,800. 22,205,600. 28,522,400. 37,024,400. 45,536,400. 4-1.. 21,000,000. 21,000,000. 21,000,000. 21,000,000. 21,000,000. 21,000,000. (5,525,000). (2,990,200). 1,205,600. 7,522,400. 16,024,400. 24,626,400. Loans. Capital. 4-2. Retained earnings. 0 eng chi. 6,300,000. 33. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(40) 3+4. Liabilities and Owner Equity. 21,775,000. 24,309,800. 28,505,600. 34,822,400. 43,324,400. 51,826,400. Table 4forecast balance sheet in the next five years. In order to calculate simply, I assume the new service income that are all receive by cash without accounts receivable and I count it into the logistics income totally. On the other hand, original service income and expense is the same and I only need to calculate the additional. 政治大. income and expense result from new third-party logistics service by the fprecast of. 立. operational plan.. ‧ 國. 學. The additional equipment and system is depreciated by straight-line way for five years. I will increase some cost from new business service, especially in the salary.. ‧. On the other side, this service will not expand endlessly. It will be limited by the total. sit. y. Nat. storage space so that I assume the saturation in the maturity stage.. io. al. er. If it is expected as I predict, the result is very excellent and exciting. Although I must pay. v. n. more marketing budgets and salaries, the additional service income will be profitable under the control of additional cost.. Ch. engchi. i n U. EZFUN can cover the total remained loss on 2019, it strengthens the financial situation. On the other hand, the company will have much cash to expand the new branch or distribute dividends to shareholder.. 34. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(41) Forecast income statemaent 2017-2022 30,000,000. 8,502,000. 25,000,000. 7,000,000 6,316,800. 20,000,000. 6,000,000 5,000,000. 15,000,000. 4,195,800. 10,000,000 2,190,000. 立. 2017. 2018(F). 3,000,000. 政治大 2019(F). 2020(F). expense. 2,000,000 1,000,000 2021(F). 2022(F). 0. income. 學. revenue. ‧ 國. 4,000,000. 2,534,800. 5,000,000. Figure 17 forecast income statement on 2017-2022. ‧. io. sit. y. Nat. n. al. er. 0. 9,000,000 8,502,000 8,000,000. Ch. engchi. i n U. v. 35. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(42) 7. Conclusion As mentioned above, I want to establish a new mini-storage combined with third-party logistics and offline shop service model. This new business model will resolve many small ecommerce seller pain point and help them reduce the operational cost, even though increase the competitiveness. Recently, the e-commerce market changes very quickly and hugely, the online to offline conception become more and more important. These clients can take advantage of our offline. 治政 shop to achieve the goal, but only pay a little budget. 大立 Of course, it is quite difficult to establish a new business model in the initial stage. ‧ 國. 學. However, EZFUN doesn’t start from zero, we have operated for five years and gather much. ‧. data to set up this client-directed service.. On the other hand, this new project is under the limited risk and easily reach the breakeven. y. Nat. er. io. sit. point. I also plan the complete marketing plan and don’t spend too much additional expense. I trust this new model will cause a win-win game between EZFUN with the target. al. n. audience.. Ch. engchi. i n U. v. 36. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(43) EZFUN. TA. 1 mini-storage. 1 Flexible storage space. 2 third-party logistics 3 location in the city center. 2 Customized process 3 offline shop. 4 low budget. 4 save the cost. 5 marketing event. 5 competitiveness. 立. 政治大. Figure 18 New model will cause a win-win game between EZFUN with the TA. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 37. DOI:10.6814/THE.NCCU.IMBA.039.2018.F08.

(44) 8. Appendix 1. http://www.cnra.org.tw/edm/2016b2c.pdf, Institute for Information Industry report, 2016 2. The Self Storage Association Asia(SSAA) research report, 2016 3. The self-storage industry report in Taiwan, The Taiwan Self Storage Association, 2017 4. The e-commerce research report in Taiwan, Department of Commerce, 2016. 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.039.2018.F08.

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