Business Case for Global Hybrid Mail

Dr. Ben Livson

 

© Copyright: Ben Livson 1998. All rights reserved.

Commercial Secret - Document to be in kept safe custody at all times

 

 Table of Contents

1. Executive Summary

2. Business Concept and Value Proposition to Customers

2.1 Business concept

2.2 Value Proposition to Customers

3. What is the reaction by National Postal Services?

SWOT Analysis of National Postal Services (PS)

4. The Business History and Present

5. Technology Outline of the Product-Service how does it work?

5.1 Intelligent Addressing

5.2 Distributed Nodes

5.3 Description of Authentication

5.4 Billing and Customer Care

5.5 SMTP Handler Billing Functions

6. Market Analysis Breakdown of the major Users

6.1 Customer segments

6.2 Product service bundles, pricing and revenue, and costs

6.3 Critical Success Factors CSFs

6.4 Risks and Responses

7. Management and Organisation

8. Financial Plan - Pricing, Revenue and Cost

9. Industry Literature

10. Profile on Potential Business Partners

10.1 When and how to involve Global Business Partners?

10.2 What does it take to make it?

10.3 United Parcel Service - UPS

10.4 Federal Express Corp.

10.5 DHL Worldwide Express

11. Competitor Analysis

11.1 Microsoft - Royal Mail Relay One

11.2 Netscape-Sweden Post-Sun

11.3 AT&T Mail

11.4 International Data Post Hybrid Mail ePOST

11.5 IDP PC ePOST

11.6 Further development will be needed

11.7 EDI Post current and future

12 Where to from here?

 

Pricing Scenario 1: Penetration

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Volume

-

-

30,000,000

240,000,000

750,000,000

1,444,000,000

1,890,000,000

Price of basic hybrid mail

-

-

$1.80

$ 1.50

$ 1.30

$ 1.15

$ 1.00

Revenue*2 for value added service

-

-

$ 108,000,000

$ 720,000,000

$ 1,950,000,000

$ 3,321,200,000

$ 3,780,000,000

Unit Gross Margin $

-

-

$1.60

$1.30

$1.10

$1

$0.90

Gross Margin %

-

-

45%

43%

42%

43%

45%

Gross Margin $

-

-

$ 48,000,000

$ 312,000,000

$ 825,000,000

$ 1,444,000,000

$ 1,701,000,000

Overhead

Setup

$10,000,000

$25,000,000

$0

$0

$0

$0

$0

Maintenance

$0

$0

$5,000,000

$500,000

$500,000

$500,000

$500,000

Operations & support

Management

$ -

$ -

$ 2,000,000

$ 2,000,000

$ 3,000,000

$ 4,000,000

$ 4,500,000

Hardware & software

$ -

$ -

$ 5,000,000

$ 10,000,000

$ 20,000,000

$ 30,000,000

$ 30,000,000

Customer care

$ -

$ -

$ 54,000,000

$ 12,000,000

$ 25,000,000

$ 40,000,000

$ 40,000,000

Marketing & promotions

$ 2,000,000

$ 5,000,000

$ 10,000,000

$ 20,000,000

$ 40,000,000

$ 60,000,000

$ 60,000,000

Billing

$ -

$ -

$ 1,000,000

$ 3,000,000

$ 6,000,000

$ 9,000,000

$ 10,000,000

Total Overhead $

$ 12,000,000

$ 30,000,000

$ 77,000,000

$ 47,500,000

$ 94,500,000

$ 143,500,000

$ 145,000,000

Total Net Margin $ (1)

$ (12,000,000)

$ (30,000,000)

$ (29,000,000)

$ 264,500,000

$ 730,500,000

$ 1,300,500,000

$ 1,556,000,000

Total Net Margin %

245%

101%

67%

47%

Cumulative net cash flows (1)

$ (12,000,000)

$ (42,000,000)

$ (71,000,000)

$ 193,500,000

$ 924,000,000

$ 2,224,500,000

$ 3,780,500,000