Comparison of Mutual Funds and Their Impact

This assignment requires a detailed comparison of regular and direct plans of mutual funds, exploring their differences and similarities. It also involves researching and discussing the best mutual fund apps available in the market. The assignment aims to provide insights into the benefits and drawbacks of online trading, making it an essential resource for students seeking to understand the world of mutual fund investing.

BUSINESS DEVELOPMENT
PLAN

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the research..............................................................................................1
1.2 Chosen Scenario...............................................................................................................2
1.3 The business opportunity..................................................................................................2
1.3.1 Rationale for the business idea.................................................................................3
1.3.2 Target Market, Customer and Accessibility.............................................................3
1.3.3 Business Model.........................................................................................................4
1.4 Structure of the work........................................................................................................5
CHAPTER 2: THE BUSINESS OPPORTUNITY..........................................................................6
CHAPTER 3: FEASIBILITY .........................................................................................................8
3.1 Market Research Methodology........................................................................................8
3.1.1 Defining the research problem..................................................................................8
(a) Problem formulation....................................................................................................9
(b) Aim of the current market research..............................................................................9
3.1.2 Design for the market research.................................................................................9
3.1.3 Information types and sources that are required.......................................................9
3.1.4 Proposed methods of data analysis.........................................................................10
3.1.5 Formulation of findings..........................................................................................12
3.1.6 Ethics Issues............................................................................................................12
3.2 Market research to identify business opportunity..........................................................12
3.2.1 Exploratory research...............................................................................................13
3.2.2 Market Segmentation..............................................................................................13
3.2.3 Market Accessibility...............................................................................................15
3.3 Industry/market analysis.................................................................................................15
3.4 Organisational feasibility................................................................................................17
3.5 Financial feasibility........................................................................................................19
Estimation of first year's sales.........................................................................................19

Funding requirement for the business proposal...............................................................19
Initial year's sales for break-even attainment..................................................................20
Sales required for payback in years 2-4...........................................................................22
Sales required for Pay-off i.e. excess of 150% ROEI in five years' time........................22
3.6 Resource sufficiency......................................................................................................22
Financial..........................................................................................................................22
Technical..........................................................................................................................23
Human Availability.........................................................................................................23
Physical office.................................................................................................................23
Organisational Business relationships.............................................................................23
Government approvals.....................................................................................................23
CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL.........................................24
4.1 Internal Analysis.............................................................................................................24
4.2 Sources of competitive advantages................................................................................26
4.3 Concepts in strategy which could be used......................................................................27
4.4 Business model...............................................................................................................29
CHAPTER 5: BUSINESS PLAN REVIEW.................................................................................31
5.1 Overall assessment of the business plan.........................................................................31
5.1.1 Product/Service idea...............................................................................................32
5.1.2 Legal issues.............................................................................................................32
5.1.3 Financial requirements............................................................................................33
5.1.4 Risk Issues..............................................................................................................33
5.1.5 Marketing matters...................................................................................................34
5.1.6 Organisational Feasibility.......................................................................................34
5.1.7 Overall resource sufficiency...................................................................................35
5.2 Proposed Plan of Action.................................................................................................35
5.3 Discussion of critical success/failure factors..................................................................36
CONCLUSION..............................................................................................................................36
REFERENCES..............................................................................................................................37

CHAPTER 1: INTRODUCTION
A Business Development Plan is being considered as a document that delivers
information related to decisions that are needed to be made based on development strategy
(Blackburn, Hart and Wainwright, 2013). Through this, it can be said that an organisation may
directly grab a good position at marketplace in short period of time frame. Basically a business
development plan is developed for the purpose of long term success. Specifically, scope of a
business development plan mainly consist of both sales along with marketing functions because
they stay connected to each other within an organisation in any industry.
In present report, a business development plan is going to be developed for Revolut Ltd.
which is coming under financial technology sector of United Kingdom. Company offers a range
of banking services to the users including pre-paid debit cards, peer to peer payments,
cryptocurrency exchange. It is a mobile application that basically supports money spending,
withdrawals considering around 120 currencies. With the help of business development plan,
Revolut Ltd. Is directly going to attain different business opportunities in specific time frame.
1.1 Background of the research
United Kingdom's one of the famous Fintech company named as Revolut Ltd. Was found
in the year of 2015 by Nikolay Storonsky and Vlad Yatsenko. It is a mobile application which
offers offers banking services to its users, and speciality of this Fintech company is that, it offers
cryptocurrency exchange as well (Bournaris, Moulogianni and Manos, 2014). However,
cryptocurrencies basically kept locked within the mobile application only. That means it cannot
be moved to any other cryptocurrency wallet. Company has already given a range of services
related to finance, to its users but now they are looking forward to improve customer base and or
keep them loyal against the financial services offered by them. Along with this, it can be said
that cryptocurrency feature has definitely played a part in their growth, and their financial
marketplace of products have also helped hugely in catching eyes of people and made them feel
to join Revolut. Marketplace of this industry, gives users access to insurance and credit products
from a variety of providers, similar to a feature offered by rivals like Starling.
Revolut Ltd. is presently available in Europe with 630 staff members, and is most widely
used in United Kingdom. The firm is looking to expand its presence to the U.S., Canada,
Singapore, Hong Kong, Australia and New Zealand within months (Burns and Dewhurst, 2016).
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In this case, a business development plan is going to be formulated for Revolut Ltd. in order to
gain competitive advantages and to improve existence of the company not only in United
Kingdom but in other European and others countries as well like Germany, France, United States
and more. For this purpose, Revolut Ltd. is going to launch commission-free trading services for
its users. That means, users of Revolut Ltd. will directly get the opportunity of investing money
in places where they can get high range of returns on investments.
1.2 Chosen Scenario
In past two years, Revolut Ltd. did not saw a hike in their revenue and profit margins as
well. This made board of directors of the company to bring innovation among its services and
decided to launch commission - free trading services for its users (Casey, Glennerster and
Miguel, 2012). With the help of this, board of directors believe that company, customer loyalty
can be attained as the targeted customers (service users) that are looking forward to invest their
money in different industries will start using commission - free trading services offered by
Revolut Ltd. The basic need of bringing innovation in its services is that, Revolut has already
doubled its user count just in few months after it said it had passed the 1 million user mark in
November 2017. But then also, company's expectation did not meet as Revolut had the idea of
tripling the amount of existing users through the services that were offered by the company.
This, made the organisation to think upon planning commission-free trading services in order to
improve profit margins and to give competition to its rivals like U.K.'s Trading212 and United
States' organisation like Robinhood.
1.3 The business opportunity
"For many years, people were not been able to trade or invest among different areas and
this happened because of high fees or high taxation rates on transactions. Focusing on this
scenario, Revolut has kept its focus on making the investments much more cheap, simple and
completely over a mobile. Nikolay Storonsk, co-founder of Revolut has mentioned that, bringing
commission-free trading service as a value added service or a core service in the existing
services that had been offered by Revolut Ltd. will directly help them in improving customer
loyalty, base and reputation as well at international market (Chan and Park, 2015). Along with
this, it is being found that this innovative approach, will also help Revolut Ltd. in cutting out
nearly all costs that are typically associated with investments. Apart from this, since trade off is
free. Thus, Revolut Ltd. directly offers both web and mobile trading, the platforms are purposely
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bare bones, and some investors may find the range of trade related securities and account options
lacking. This made Revolut Ltd. to rebuilt its services and to add service like commission-free
trading where users can directly invest a good range of money and can expect high return on
investment (Chatterjee and Finger, 2014).
This can be taken as a business opportunity that would aid Revolut Ltd. in reaching to
new heights where company may give good rivalry to its rivals like Starling, Robinhood,
Trading212 and so on. Along with this, it has also been analysed that commission-free trading
services will also help both clients as well as Revolut Ltd.
1.3.1 Rationale for the business idea
In present time, most of Fintech companies in all over the world do not offer
commission-free trading services to their clients (on mobile application). Therefore, bringing in
this commission-free trading services within Revolut Ltd. would aid them in reaching to new all
new heights. As the company was also looking forward to grab a good position not just in
domestic but in international market as well (Croitoru, 2012). Thus, offering financial service
like commission-free trading will directly start aiding Revolut Ltd. in giving good rivalry to its
competitors. The basic reason behind implementing this kind of business idea is that, Revolut
Ltd's customers loyalty will improve with them because, users of their mobile application are
looking forward to invest their money, may easily start investing their money among share
market or other commodity markets based on their interests. Through this kind of business idea,
Revolut Ltd. will directly start hitting its targets and will gain good reputation at international
marketing in a really very short span (Dahlgaard and et. al., 2013).
1.3.2 Target Market, Customer and Accessibility
In present context, where Revolut Ltd. has made modifications among mobile application
where a new service is being added of commission - free trading services. Under this case,
company targeted the customers (mobile users) that are looking forward to invest money and are
having a valid current or brokerage accounts. If the users are not having a brokerage account, the
service offered by Revolut Ltd. would not be able to trade single stocks commission free
(Dimitriou, Voskaki and Sartzetaki, 2014).
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On the other hand, mostly, company is also going to target using behavioural approach of
segmentation, because investment is a factor that cannot be done by every single person. Here,
Revolut Ltd. Will directly target customers based on their behaviour through promoting the new
service in different areas from digital market to regional one (Dudin and et. al., 2014). The best
strategy of targeting the investors (targeted users) will be the existing mobile application of
Revolut Ltd. where company will grab the attention of clients that have an intention of investing
their money among different areas. Along with this, company is also going to offer people that
are having either one of them accounts like individual or retirement based account. This is
basically being done for the promotional based perspectives. Revolut Ltd. Has also given a value
added service to targeted users with a toll free number where any query regarding eligibility and
others as well (Dunning, 2013).
On the other hand, accessibility will only be given to the users that are having current
accounts or brokerage accounts, because then only mobile application will show them on which
company they need to invest, Along with this, Revolut Ltd. As developed this approach, this will
aid organisation in gaining or grabbing a good reputation at both European and United States
marketplace.
1.3.3 Business Model
The Business Model Canvas (BMC) is being considered as a graphic representation of a
number of variables that show the values of an organization. A Canvas can be used as an
effective strategy tool when it comes to analyse or evaluate the situation that an existing business
organisation is having. In present case, Revolut Ltd. has kept its focus on business expansion in
United States considering commission - free trading as their additional service that they are
going to offer to targeted customers (Finch, 2013). Away with this, there are some of the key
partners as well that enabled Revolut Ltd. to bring commission - free trading as one of an
essential service that could help company in giving good rivalry to competitors among different
countries like U.S. Along with this, in order to take right decisions so that Revolut Ltd. do not
face any sort of issue, a business model canvas has been used which will help in overlooking into
the existing situation of overall business of Revolut Ltd.
Under this case, where Revolut Ltd. needs to keep its focus on a range of factors that are
a part of business model canvas and these are: key partners, key activities, key resources, value
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propositions, customer relationships, channels, customer segments, cost structure and lastly
revenue streams which will aid in analysing their current position in the market and through this,
they can also find out the gap as well in between current and desired position. Through this,
Revolut Ltd. could directly make determinations in short span (Frankenberger and et. al., 2013).
1.4 Structure of the work
Conceptual framework is the blueprint for all the activities which are conducted in a
research (Groves and Hinton, 2013). In this research proposals, investigation using Revolut Ltd.
is conducted which is classified into five chapters which are mentioned below:
CHAPTER 1 : INTRODUCTION – In this section of work, an understanding about the
research topic is developed. Introduction refers to the overview and background of the research
which provides understanding about the topic (Halme, Lindeman and Linna, 2012). On the other
hand, report has also included a range of information like background of Revolut Ltd., purpose
of business plan and so on are some of factors that has been included in this section. Along with
this, business model canvas has also been developed for the purpose of reducing the number of
barriers and so on.
CHAPTER 2 : THE BUSINESS OPPORTUNITY – Under this section, various
sources are analysed in order to build an understanding about desired objective which has been
developed by Revolut Ltd. This section is basically enclosed with a range of decisions that
company needs to make in order to gain many competitive advantages while using commission -
free trading services in their mobile application for users in specific time frame (Harrison, 2012).
CHAPTER 3 : FEASIBILITY – This is being considered as another important section
of present business plan which is used for showing that the developed plan is basically
approachable or not. Here, a range of research methods are going to be used so that right
determinations could be made (Haven‐Tang and Jones, 2012). This process includes various
techniques of data collection and research techniques. In this section, discussion about secondary
and primary research is undertaken along with the techniques in order to gather data related to
the business opportunities.
CHAPTER 4 : STRATEGIC ANALYSIS AND BUSINESS MODEL – Under this
segment of business plan, a proper strategic analysis is going to take place which will be done
considering a business model that will show Revolut Ltd. actual performance. This will directly
aid in making right determinations as per the requirements. Main aim of present plan is to start
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offering a new service to its customers related to commission - free trading. With the help of this,
Revolut Ltd. Has also kept its focus on business expansion in most of countries of Europe and in
United States as well (Hess and Mai, 2015).
CHAPTER 5 : BUSINESS PLAN – This is being considered as the last segment of the
report, where proper execution of business objective (plan) will take place. Under this, various
determinations for the Fintech company named as Revolut Ltd. is going to show different range
of corporate strategies which the company will develop in specific time frame (Highsmith,
2013). Through this maximum benefits can easily be developed by the company where high
range of profits can be earned among different countries like United States, France, Germany and
many more.
CHAPTER 2: THE BUSINESS OPPORTUNITY
Most of investors were basically going through a range of problems where they had to
pay a piece of amount in order to make investment and at the time of withdrawal they also had to
give a small amount. On the other hand, most of Fintech organisations were just offering a range
of banking services only and people (users) were looking to invest the money which they have
kept in wallets (Hiles, 2012). This raised ample number of opportunities for companies that
could help them in reaching to new heights. This was one of the gap which was basically be
filled through offering customers with a range of problems and issues as well at the same time.
Revolut company's new approach where they are offering service to its customers where
investing process is basically free considering a trade online commission-free approach. This is
one of a crucial business opportunity for the company where it will offer elimination of barriers
linked with investing by offering commission-free online stock and ETF trading. The number of
available free trades increases based on a customer's Chase relationship, from 100 free trades
every year for Premier Plus Banking, to unlimited free trades for Sapphire Banking and Chase
Private Client (Jenkins, 2013).
Using trade online commission-free approach, Revolut Ltd. will directly start catching
the eyes of investors where they will start getting a good position in specific time frame and will
develop smarter decisions and this would aid them in earning high range of returns on
investments. The modification which has been made under the mobile application, where
existing user or a new client can open an account in three minutes and transfer funds between
their chase accounts in real-time. A Portfolio Builder tool assesses an investor’s risk tolerance,
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and helps them design and invest a diversified portfolio of stocks and ETFs (Jones and Penaluna,
2013). On the other hand, the new updates brought among mobile application has been
developed or designed for those who want help creating and implementing a long-term
investment strategy. Apart from this, modifications has also been made in gaining digital
experience for customers who work with advisors, providing access to Revolut research,
redesigned content and tools and enhanced mobile capabilities.
This basic opportunity that can be seen of developing this business plan is to gain ample
number of competitive advantages at both domestic and international level. Through this,
Revolut Ltd. may become much more helpful to its customers so that they could directly make
high range of money as well. This is done for both of the purposes like (rivals to competitors and
high return on investments for the clients) and this will directly help business company in being
thankful for banking and investing with them. Just after finding out the market within the gap
where Revolut Ltd. is going to offer commission - free trading services for the application users
of both U.S. and U.K. market (Kilelu, Klerkx and Leeuwis, 2013).
Mission: In present context, the mission of Revolut Ltd. is “To adopt commission - free
trading services in order to gain competitive advantages at United States business market.”
Vision: Vision of Revolut Ltd. is to become one of leading Fintech company in all over
the world.
Service: Revolut Ltd. is basically offering banking services including a pre-paid debit
card (MasterCard or VISA), currency exchange, cryptocurrency exchange and peer-to-peer
payments. A new service that this company has developed i.e. commission - free trading services
where there clients can easily invest capital (assets) in places where they can get heavy return on
investments.
Positioning: In present case where Revolut Ltd. is looking forward to expand their
business in United States. Thus, they are going to position themselves where targeted clients can
reach to the new service with just three touches in their mobile phone (Kuik and Verbruggen,
2012).
Scale: The target market of Revolut Ltd is really very huge as company is directly
targeting clients (investors that are having a Demat account (brokerage account)). Under this
case, around 1,90,00,000 Demat account holders are present in United States and U.K. is having
7

approximately 1,80,00,000 Demat accounts that means Revolut Ltd. is basically targeting a big
scale.
Growth anticipation: Since most of banking service based Fintech companies that are
doing business at international level but did not offered services like investments and so on
(Lafferty and Eckerberg, 2013). Therefore, Revolut Ltd. Will be offering service like this, where
mobile users (clients) that are having brokerage account can easily invest their money without
paying anything to brokers. This can be considered as sure short idea that Revolut Ltd. will use
to earn great profit margins and it will also aid in attaining competitive advantages as well at
United States.
Business model: In present context, where business model canvas has been used which
may aid in identifying different factors like stakeholders, key resources, strengths, weaknesses
and others (Lee, Phaal and Lee, 2013). This basically aid in doing analysis and making
determinations as well through which maximum benefits could be gained by the company. Here,
Revolut Ltd. is going to expand business at international level, specifically in United States, in
order to gain competitive advantages as well, company will enter the U.S. Market with a new
approach in their mobile application where users can just not transfer but they can invest their
assets as well in free. For the same, a proper business model canvas has been developed by
researcher in order to become a business leader in Fintech sector. Here, a range of elements that
are being considered as factors that will help Revolut Ltd. in reaching to new heights.
CHAPTER 3: FEASIBILITY
3.1 Market Research Methodology
This is being considered as one of essential section of an investigation which could be
used to conduct a research or develop a business plan. Here, a vast majority of techniques fit into
different categories and these are : secondary research, surveys, focus groups, interviews,
observation and so on. These are the techniques which can be used by BOD of Revolut Ltd. in
order to draw favourable outcomes in specific time frame. There are range of elements that this
section will include are given beneath:
3.1.1 Defining the research problem
As Revolut Ltd. is only doing business in United Kingdom and in some other countries
where it is offering banking services with considering approximately 120 currencies. With
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growing digital exchange considerations, Fintech organisations are rapidly developing a range of
services for their users (Muscat, 2016).
(a) Problem formulation
The above discussed situation has raised raised competition among companies, where
Revolut Ltd. was lacking. The problem is to execute the business plan of Revolut Ltd.
effectively in order to offer customers with commission - free trading services. With the help of
this, Revolut Ltd. may effectively raise profit margins in much effective and efficient manner. It
also aid in expanding the business in United States.
(b) Aim of the current market research
To examine the benefits of adding commission - free trading in existing banking services
offered by Revolut Ltd. while expanding business in United States.
3.1.2 Design for the market research
In present context, there are a range of alternative styles which can be utilised for market
research and these are given beneath: Exploratory, Quantitative, Qualitative, Descriptive, Casual
investigations and so on. Under the case scenario of Revolut Ltd., the method which is being
used for conducting the overall investigation is Exploratory research that will specifically aid in
formulating or identifying the market within the gap. On the other hand, another method which is
being utilised i.e. market segmentation and accessibility as well of the market and this is going to
be identified right on time (Pearson, 2016).
3.1.3 Information types and sources that are required
With the help of article which was given by Natalie Campisi, who is a reporter have said
that, online trading continues to grow in popularity (Some pros and cons of online trading,
2016). More than 14 million households in the U.S. are signed up with an online trading service,
according to data from Statista, a statistics company. With online trading, or e-trading, traders
make all their decisions themselves. Such an approach to trading differs from using a
stockbroker, as the broker typically offers input and advice. For the same, a proper business plan
has been developed for, Revolut Ltd. where it will focus on a range of channels through which it
can gather information related to strategies that has been adopted by rivals in order to serve
9

targeted customers. It is also required to have collect information related to current trends and
needs of clients as well. Through this, right decisions can be made based on correct information.
3.1.4 Proposed methods of data analysis
Since Revolut Ltd. is looking forward to expand their business in United States, with the
help of implementing the new strategy i.e. commission-free trading services to the investors.
Here, inductive approach where exploratory investigating method has been used in order to gain
competitive advantages and to deliver strong rivalry to its competitors (Pedler, Burgoyne and
Boydell, 2013). On the other hand, in order to collect data and analyse it, secondary research
method has been used. where
(Sources: What are the best mutual fund apps?, 2018)
With the help of above mentioned graph, it can be said that direct value on investments is
way higher than the regular. This is also showing that an individual if directly invests its assets
among mutual investments or any other kind of applications that offers the same would directly
help in earning returns on investments more than 30% if it is analysed with a period of 30 years.
10
Illustration 1: What are the best mutual fund apps?, 2018

Therefore, it can easily be said that new approach which has been adopted by Revolut Ltd. for
business expansion will directly help in gaining heavy competitive advantages.
Here, the decision which as been made by Revolut Ltd. will start offering customers with
free services where previously they used to pay a section of return on investments to brokers,
which has been made on the investments.
(Sources: What is the difference between regular and direct plans of mutual funds?, 2018)
With the help of above given graph, it can be said that decision which was made by
Revolut Ltd. where there clients can directly invest money just through transferring the money
from their wallet to Demat account. With the help of this, maximum benefits could be gained by
Revolut Ltd. Direct investment if done for a longer period of time (30 years of time frame), than
8% of hike can be seen among return in investments made by individuals.
Henceforth, considering the above information, it can easily be said that maximum
benefits could be gained by Revolut Ltd. Like competitive advantages, attaining goals and
objectives, grabbing a good position at United States and so on.
11
Illustration 2: What is the difference between regular and direct plans of mutual funds?, 2018

3.1.5 Formulation of findings
Based on findings, it has been interpreted that there are a range of Fintech companies like
NerdWallet that basically spent more than 300 hours in order to review top online brokers and
after that only, they offer different financial tools and delivers information to their client users to
have a better understanding of financial market, so that they could easily get good return on
investments. Thus, if Revolut Ltd. is focusing on business expansion, then it will be required for
them to develop a range of strategies and would require to spent much more hours than
NerdWallet for review purpose so that right determination could be made by them in specific
time frame for considering the aim of business expansion in U.S. Market.
As service which will be offered by the Revolut Ltd. will stay free, here what company is
going to earn from offering this service is that, they will get a good hold at marketplace of
United Kingdom and will also become a renowned organisation in specific time frame (Porter
and Tanner, 2012).
3.1.6 Ethics Issues
While going through the analysis, there are basically no ethical issues that will come in
front because all the information which has been carried out is from secondary resources. This
scenario, reduce the chances of going through a number of issues linked with ethical aspects. On
the other hand, getting information related to competitors was one of the basic ethical issue
which was faced at the time of developing the business plan. This kind of issue mainly stays
every where whenever a company focuses to expand its business (Reid, 2013). Thus, at the time
of developing a business plan for Revolut Ltd. is specifically trying to offer commission - free
trading services to their targeted customers, so that business expansion at US market could be
done.
3.2 Market research to identify business opportunity
This is basically one of a crucial section of an investigation at the time of developing a
business plan, because a plan cannot be made if there is no opportunity for a business
organisation like expansion, improvement in sales, enhancement among profit margins and so
on. In present case of Revolut Ltd. Where organisation is expanding business in United States
with the help of commission - free trading services, a range of factors that are involved which are
mentioned below:
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3.2.1 Exploratory research
Exploratory Research
This is one of a crucial investigating method that could basically aid investigator in
looking at the areas within the market where demand of an offered service has not at all been
saturated. In present case, where Revolut Ltd. has specifically trying to offer commission - free
trading services to their targeted customers in both United Kingdom and in United States as well.
With the help of this, company will start gaining customer loyalty and may start giving good
rivalry as well to companies like Robinhood, Trading212 and so on.
Since most of companies were not offering commission - free trading services to the
customers, that means investors had to go through various steps in order to invest money at
commodity and other kind of markets (Saaty and Vargas, 2013). Here, Revolut Ltd. started
focusing on offering commission - free trading services to the customers.
Service that Revolut Ltd. will specifically deliver a range of benefits to its clients as they
were only doing transactions previously with a minimal rate of interest that clients will get of the
amount that they kept in company's wallet for a longer period of time. Now, the service that has
given by Revolut Ltd. will directly aid in reaching to new heights.
3.2.2 Market Segmentation
An approach which is useful for finding out, identifying or targeting the users in much
more effective and efficient manner. Under this case, it can be said that there are a range of
segments that are available which can be used by investigator, or at the time of developing a
business plan and such factors are: demographic segmentation, geographic segmentation,
behavioural segmentation, psychological segmentation and price segmentation as well (Sachs,
2012). These are described underneath:
Demographic Segmentation : This is being considered as one of effective and simple
segmentation which is used by a range of business organisations in order to target the customers.
Most companies use it to get the right population in using their products. Segmentation generally
divides a population based on variables. Thus demographic segmentation too has its own
variables such as Age, gender, family size, income, occupation, religion, race and nationality.
Geographic Segmentation : This type of market segmentation divides people on the
basis of geography. Potential customers at a wider area basically consist of a range of different
13

needs. Therefore, this type of segmentation specifically used by a company when it develop a
business plan to expand their business at international level. Thus, the need can vary on the basis
of area where the company is expanding its business.
Behavioural Segmentation : This is another segmentation related approach which is
specifically used a range type of market segmentation and this specifically divides population
considering utility and determinations and behaviour as well. Under this, it can be said that based
on the behaviour of an individual or the targeted customers, the product is basically marketed.
This is being considered as one of the effective approach where market segmentation has
boomed especially under the smart phone market. An example can be taken is of Blackberry
launched for users that were specifically business people. Here, Samsung was launched for users
who like android and like various applications for a free price, and Apple was launched for the
premium customers who want to be a part of a unique and popular niche. Therefore, Revolut Ltd.
is one of rising company leading business organisation like Fintech is expanding business at
international level (Schindelheim, 2012).
Psychological Segmentation : Another effective approach used on the basis of lifestyle
of people, interests, their activities, and opinions as well. This kind of segmentation majorly
being taken considering a range of psychological aspects of linked with buying behaviour that
customers are having. This basically stays linked with social belongings and thinking which has
been carried by targeted customers.
Price Segmentation : This is one of the most powerful segmenting tool and it can be
defined as simply charging a range of different prices to people that are coming under this sector
and consist of or offering similar products and services to the customers. Under present case, this
segmenting approach cannot be used by Revolut Ltd. As company's business plan is to expand
business in United States through using commission - free trading services to the users that are
having brokerage account and using their mobile application.
For the same purpose, the segmentation which has been chosen i.e. geographic
segmentation where Revolut Ltd. will specifically target urban areas of both United Kingdom
and United States as well because, a range of urban areas consist of people that are rich in nature
(millennials) and are looking forward to invest money in order to gather a good return on
investments which has been made by the individual.
14

3.2.3 Market Accessibility
Market Accessibility
Market Accessibility basically consist of goods where tariff, conditions along with Non-
tariff measures mainly set by nations related to entry service into the market. Here, it can be said
that tariff commitments basically consist with goods and these are agreed over different actions
like concessions that are needed to be made on goods or not. There are a range of factors like
competition, oligopoly, laws, regulations and barriers to entry comes under market accessibility
which basically decides a range of decisions made by Revolut Ltd. Some of laws in United
States like Regulation National Market System (NMS) which consists with a range of rules
passed by Securities and Exchange Commission (SEC). This is one of factor that could lead
Revolut Ltd. to face a range of issues or could be considered as something which can be
considered as a barrier to entry in US market.
A new market consist of different range of legislations, oligopolies, regulations that
means expansion or a business plan needed to be made considering all the factors in specific time
frame. In present context, where Revolut Ltd. is looking forward to expand the business through
looking at different business opportunities. Here, company has decided to offer clients with
commission - free trading services where they can invest money without paying any fee.
Through this, high rate on returns can be expected by the company (Spenceley, 2012).
3.3 Industry/market analysis
Since United States is one of effective business market where Fintech companies are
performing well through offering a range of services to the customers. Thus, offering customers
with “commission-free” trading for new and existing customers across shares and exchange
traded funds (ETFs) on a specific platform - with no limit on the frequency and value of trades -
might look fruitfull for a company in United States market.
The same zero commission offer is also being made available through the firm’s newly
launched stocks and shares ISA, which offers investors access to thousands of ISA eligible
stocks across the world’s leading exchanges - including those in the U.S, Britain and Germany
that spans around 1,800 stocks currently - as well as exchange traded funds (ETFs).
On the other hand, competitive structure at United States of America and the operating
environment can easily be analysed through a range of analytical tools and techniques. Some of
these are mentioned below:
15

PESTEL Analysis:
Political : United States is already having strong democratic setup and effective rule of
law, with elections that are considered fair and transparent. That means, if Revolut Ltd. enters
the U.S. market, it will be required for them to focus on every single rule of law at the time of
implementing new services. Along with this, it can also be said that, service which has been
offered by Revolut Ltd. where commission free based technique is going to be enjoyed by
massive political and economical influence over both national and global policymaking, and is
recognized as the leading superpower in the world (Stacey, 2016).
Economic : United Nations is having GDP of more than $16.760 trillion. Therefore, it
can be said that Revolut Ltd. if launches its services among U.S. market, then, it can expect a
good growth and improve its customer base in much effective and efficient manner. Along with
this, economic system of America is well-developed and consist of strengths from its services
and manufacturing industries. Therefore, commission - free trading services if directly given to
users (new and existing) than this would lead them to improve their profit margins.
Social : People of United States consist of a liberal mindset. On the other hand, racial
intolerance is also increasing. Along with this, illegal immigration has also taken place which
means United States is filled with approximately 11.7 million people that are living their life
illegally. Thus, Revolut Ltd. if launches new services in their mobile application i.e. commission
- free trading services, it will be required for company to follow all the rules and regulations
linked with immigrants and so on.
Technological : United States is rapidly looking forward to develop different sorts of
technologies and has kept focus on a range of a different techniques like nanotechnology,
biotechnology and environmental technology and this can give opportunities to Revolut Ltd. as it
is going to launch commission free trading services for its consumers (users of mobile
applications) of U.S. and United Kingdom as well.
Environmental : Diversity at United States has basically coupled with a range of factors
considering a driving force which attracts tourists toward the nation. Here, 75 million people
from all over the world visits on yearly basis. Therefore, Revolut Ltd. may also become a famous
brand among other nations as well, because of the tourist numbers that came from different
countries.
16

Legal : It is being found that, each state that are coming under U.S.A. has their own type
of legal scheme and governmental structure. That means, Revolut Ltd. would require to make
alterations, as per the requirements and governmental structure of different states in which
company is going to launch its service.
Porter five forces model:
Bargaining power of buyers: If Revolut Ltd. enters into the U.S market, it would be
tough competition. This is why because Bargaining power of buyers is high, because customer's
always looks for discount/ offers. Buyer could easily shift to other fin-tech corporation. In that
case, Revolut Ltd should focus on customer demand as well as their preference.
Bargaining power of suppliers: It is relatively moderate. If Revolut Ltd enters the U.S
market, there would be pressure build onto the suppliers regarding the product development. If
suppliers will be few, they needs to develop more products on which more offers will be given to
customer's, that will create major burden.
Entry barriers: Entry barrier are relatively low for the fin-tech corporation, because thy
are enters into the market, which could create employment into the economy as well as generate
cash inflow into the US economy. If Revolut Ltd entered into the U.S market, barriers to entry
would be low.
Competitive rivalries: If the Revolut Ltd enters into the US market, competitive rivalry
will be high, because of competitor such as Oxygen wallets, PayPal etc., who are offering high to
their customer's with attractive offers. Hence, Revolut Ltd needs to counter this competition by
creating their positive image in the mind of their prospective customer's.
Threat for substitution: In present case, where Revolut Ltd. has given its new service i.e.
commission – free trading services to new and existing users of their mobile application. Not a
good number of companies that has given both banking and investment related services to the
customers. Thus, there will be less power to supplier and to buyer as well and this could lead the
business organisation to reach to new heights (Thébaud, 2015).
3.4 Organisational feasibility
Promoters : Revolut Ltd., is basically expanding its business in United States with the
help of a new service i.e. commission - free trading service. Due, to company was found in 2015
only, it is may be possible that company would not find a good range of promoters. Thus, it can
be considered as an issue for Revolut Ltd.
17

Passion – Motivation : Company is doing business expansion in United States and this
will carry out a range of change among organisational functions. This might create issues for
employees and may feel less motivated. This could take place because, a little change brought by
Revolut Ltd. Bring fear among staff of loosing their jobs.
Management Expertise : Since Revolut Ltd. Is focusing on business expansion,
management is to required to have ability to organize activities in line with set guidelines while
still limiting available resources like money, labour and time.
Business structure : Revolut Ltd. follows functional organisational structure, since
company is expanding business in United States whose culture is different from U.K, it is may be
possible that company would require to make alterations and use matrix structure for betterment
of the expansion policy of company.
Internal
Employee Training : As Revolut Ltd. is expanding its business in United States with
additional service like commission - free trading in their mobile application. It will be required
for the company to deliver training to staff so that they could perform well at workstation of
United States and easily resolve all the queries raised by the users (Trimi and Berbegal-Mirabent,
2012).
Anti-discrimination : United States government do believes in equality and do not
entertain discrimination. Thus, it will be required for Revolut Ltd. To develop a range of anti-
discriminative related policies so that company would not get into trouble.
External
Proper customer policy : Business expansion always takes place on the basis of demands
of customers and current/future trends. Thus, it will be required for Revolut Ltd. To develop a
policy related to consumers where they can give feedbacks, suggestions and many more other
things because, United States people expect for more and spends less.
Government Relations: Since Revolut Ltd. is a Fintech company is looking forward to
expand its business in United States, where they are offering banking services and commission -
free trading to its clients. Thus, influencing public and government policy at all levels of the
company would aid Revolut Ltd. in making effective relations with governments of different
levels like local, regional, national or international.
18

3.5 Financial feasibility
Estimation of first year's sales
For fresh business proposal figures of sales is determined by analysing following factors:
 Estimating maximum number of sales: This is first factor or measure under which sales is
determined based on organisation's capacity.
 Estimating local demand and re-evaluate your estimate: Estimating local demand based
on trends and experience is another factor to determine the figure of sale. Re-evaluation
in estimated figure is required if there is major gape between amount of sales by
Estimating maximum number of sales and estimating local demand.
 Estimating appropriate price for your product or service: Appropriate price of product or
service is determined while considering price range of competitors (Ward, 2016).
In this context for given given task following are the illustrated figures of sales:
Estimating maximum number of sales: 2000
Estimating local demand: 2500
Average demand: 2250
Price per product range of competitors: $465 to $500
Proposed price of product: $470
Estimated first year sale: $470 x 2250 = $26320
Funding requirement for the business proposal
Funding requirement are determined as per costs and expenses in business so following
are the major cost in proposed business plan:
Mortgage/rent 5000
Gas, electricity and oil 7210
Water rates 3540
All personal and property insurances 1450
Car tax, insurance, service and other expenses 1180
Total costs (£) $18,380.00
19

Initial year's sales for break-even attainment
20

Selling Price (P): $470.00
Break-Even Units (X): 56 units
Break-Even Sales (S): $26,010.93
Fixed Costs
Advertising $1,000.00
Accounting, Legal $2,000.00
Depreciation $4,500.00
Interest Expense $2,120.00
Insurance $1,100.00
Manufacturing $2,250.00
Payroll $3,600.00
Rent $2,100.00
Supplies $1,450.00
Taxes (real estate, etc.) $3,120.00
Utilities $156.00
Total Fixed Costs (TFC) $23,396.00
Variable Costs
Variables Costs based on Dollar Amount
per Unit
Cost of Goods Sold $4.00 per unit
Direct Labour $3.00 per unit
Overhead $5.00 per unit
Other (specify) per unit
Sum: $12.00
Variables Costs based on Percentage
Commissions 7.50% per unit
Total Variable Cost per Unit (V) $47.25
21

Contribution Margin per unit (CM) = P - V $422.75
Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 89.9%
Break-Even Point
Break-Even Units (X) X = TFC / (P - V) 56 units
Break-Even Sales (S) S = X * P = TFC / CMR $26,010.93
Targeted Net Income
Targeted Net Income Before Taxes (NIBT) $25,000.00
Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) 115 units
Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR $53,805.13
Rate of return on sales before taxes = NIBT / S 46.5%
Tax Rate (T) 25%
Net Income After Taxes (NIAT) = (1-T)*NIBT $18,750.00
Rate of return on sales after taxes = NIAT / S 34.8%
Sales required for payback in years 2-4
Payback Period Analysis
Projected
Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow
$
(2,00,000) $ 50,000 $ 70,000 $ 75,000
$
1,00,000
$
1,25,000
Cumulative Net Cash Flow
(1,50,000
) (80,000) (5,000) 95,000 2,20,000
Positive Cash Flow? FALSE FALSE FALSE TRUE TRUE
Payback Period 3.05
22

Sales required for Pay-off i.e. excess of 150% ROEI in five years' time
Years 1st 2nd 3rd 4th 5th
Sales 27500 30250 33275 36602.5 40262.75
Net Income 5500 6050 6655 7320.5 8052.55
Equity Investment 3650 4015 4416.5 4858.15 5343.965
ROEI % 150.68 150.68 150.68 150.68 150.68
3.6 Resource sufficiency
It has been critically analysed that, for a business plan feasibility plays a crucial role. This
can be done considering a range of resources that promoters would require. With the help of this,
business expansion or business plan could be executed in much more effective sense. Through
this, operations related management could be done right on time.
Financial
Funding – In present case, where Revolut Ltd. is expanding its business at United States,
with a new service i.e. commission – free trading service, company has taken loans from Banks,
credit facilities and so on.
Technical
Since, Revolut Ltd. is already a Fintech company where company is offering banking
services through their mobile application. Therefore, it can be said that, Revolut Ltd. Is already
performing well at workplace through using latest technology.
Human Availability
In the end of 2018, Revolut was having around 600 effective employees. For the business
expansion, it is possible that company would require 50 to 100 more staff members. So that
business expansion can be done right on time. For this, Revolut Ltd. may require to hire a range
recruitment related agency.
23

Physical office
Revolut Ltd. would require to have a physical office in United States, where they can
have super computers in order to run the network much more effectively and efficiently.
Organisational Business relationships
Revolut Ltd. Is a medium sized business organisation, thus, it is may be possible that
company would face a number of issues related to building relationships with other companies
that are already performing business at targeted market. On the other hand, since the market of
United States will be totally different from UK's business market, Therefore, it is possible that
company would go through a range of issues, while expanding business at United States.
Government approvals
It is not at all an easy way to expand business in United States, because every single state
is having its own government based structure. Thus, it can be said that Revolut Ltd. would
require to make alterations, as per the requirements in specific time frame in order to gain
approvals from government on different states where Revolut Ltd. is going to offer its
commission - free trading services to the targeted customers.
CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL
4.1 Internal Analysis
Strengths: Revolut Ltd. has allowed or its mobile application basically supports spending
and ATM withdrawals in 120 currencies and sending in 26 currencies directly from the app. On
the other hand, company also offers to the consumers with instant access to (Bitcoin (BTC),
Litecoin (LTC), Ethereum (ETH), Ripple (XRP) and Bitcoin Cash (BCH) and so on. Thus,
offering the same with adding a new service i.e. commission - free trading services to customers.
This would aid in reaching to new heights in specific time frame.
Weaknesses: Organisation basically, do not charge its mobile application users, in order
to use banking services. Thus, this basically impacts upon their profit margins. In some cases,
Revolut Ltd. charges only a markup from 0.5% to 1.5% on weekends. Through this, it can be
said that company is not earning a good amount among range of profits.
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This part include opportunities through which a company can gain competitive
advantages. It includes four major factors as- Efficiency, Quality, Innovation and Customer
Responsiveness, which help in creating or enhancing value of businesses. There are also
considered as four generic building blocks of competitive advantage which an organisation can
adopt for value creation. In context with present scenario, where management team of Revolut is
going to launch a new service as well as expand its business in United States with the help of
commission - free trading services. This new service is to provide opportunity for investors to get
knowledge of different fields where they can get information about share price and other. This
would also provide information about return of investment also after funding in such
corporations. Therefore, some source to gain competitive advancement in this field for respective
financial company are given as below:-
Efficiency: This source of competitive advantage includes quantity of inputs which is
used for producing a given output. In this regard, main input for Revolut for giving new service
is employee and capital productivity. Here, employee productivity refers to output per individual
and capital productivity includes put per unit of invested capital. In addition to this, for further
expansion of business, Revolut also need to concern on efficiencies of marketing techniques,
technology and ambience. This would help in increasing efficacy of resources which will be used
for successful execution of business plan (Weaver and et. al., 2017).
Quality as Excellence and Reliability: From excellence point of view, quality can be
measured in terms product's design, features, benefits and level of service, offered by a company.
Therefore, for Revolut, such an excellence can be built into product offering in such a manner
that customers will pay more attention to consume the same. While, from reliability prospectus,
new service can seem to reliable if consists following features:-
 Consistently carry the job for which it is designed for i.e., as new service will provide
timely information about investment plan for investors. Therefore, such information has
to be provided consistently to customers after installing new app of Revolut Company.
 Carry job well without any disruption and discrepancy.
 Needs to concern on efficiency of every feature before offering directly to end customers.
In addition to this, need to avoid those mistakes and defects in services which might
affects on customer's loyalty (Blackburn, Hart and Wainwright, 2013).
25

Thus, this kind of reliability will increase the value of customer gets after taking its
services. It also enhance price which respective company can charge after product offering. In
addition to this, if Revolut Ltd. will provide high quality services through its app then it increases
the customer's perceived value. It also allows respective financial firm to charge higher prices
because if services are more reliable then there must be greater efficiency of same and lower
units cost as well.
Innovation: This source provides opportunity to corporations to create something unique
which their competitors lack. Hereby, innovation can be defined as act to develop a new product
or bring modifications in existing one. Therefore, in terms of long run, it is considered as the
most important part of competitive advantage. It majorly concerns on two main criteria i.e. either
in Product Innovation or Process Innovation. In this regard, product innovation refers to
development in commodities which provide something unique and new features to customers. It
must include advanced features as compared to existing one. While, under process innovation,
evolution of a new process is created for producing new service and deliver them in effective
manner (Bournaris, Moulogianni and Manos, 2014).
With this assistance, chosen organisation i.e. Revolut Ltd. which is a UK financial
technology adopt the concept of Product Innovation. Under this process, it has added more
features in its app whereby, apart from financial transaction, customers can get information about
investment plan, companies or field where they can make investment as well as easy process of
funding also. It also entails customers about profitability or return of investment they will get
after a particular maturity period.
Customer Responsiveness: It entails a corporation who is going to produce new services
at competitive marketplace, about level of satisfaction and expectation of their customers. If a
company gains success to meet satisfaction level as well as exceed expectation of targeted
audience, then it will attribute to more value to innovative products. Therefore, management of
Revolut Ltd. concerns to create differentiation and innovation in its services. This would
ultimately leads to earn competitive advantage for business more easily. In this regard, superior,
innovation and quality all are considered as essential part of achieving high customer
responsiveness. Therefore, services offered by this company are differentiated in terms of
customisation. This refers to varying features of mobile app to tailor needs and demands of
customers in effective manner. It also reduce their time which they have spent on obtaining
26

information about shares of a company in order to decide to make investment or not (Burns and
Dewhurst, 2016).
4.2 Sources of competitive advantages
SWOT ANALYSIS:-
Strengths:
Revolut Ltd. users could basically transfer the
money among 26 different currencies among
world banks and could directly make a range of
payments within approximately 120 currencies
through using their own card.
Weaknesses:
Mobile application of Revolut Ltd. only allows
120 when there are around 180 currencies in all
over the world and this is required for company
to make alterations in its services where they
can perform their operations at international
level.
Opportunities:
Specifically, Revolut Ltd. if introduce mutual
funds related services, then this could help
company in expanding business or developing
reputation among international level in specific
time frame (Casey, Glennerster and Miguel,
2012).
Threats:
As there is a range of companies like
Trading212 and Robinhood are doing business
in same industry. Thus, they can be considered
as some major threats for Revolut Ltd.
Competitive advantage: In present case, based on Revolut Ltd. where company is
looking forward to expand its business in United States, thus, using there strength where
cryptocurrencies are allowed would help company in expanding business at international level.
On the other hand, opportunity that has been carried by Revolut Ltd. where expansion of
business in a country like United States will specifically aid in hitting company's target. Here, it
is required for Revolut Ltd. to use commission free based trading services that would aid in
maximising their profit margins and will gain good reputation in US business market.
4.3 Concepts in strategy which could be used
Concept of value creation for a business lies at heart of competitive advantage. It only
occurs when profitability of a company is greater than average profitability of industrial sector.
Therefore, to develop strategies for getting high competitive advancement, management of
27

Revolut Ltd. can adopt concept of Porter's generic strategies. It will create superior value of
business by driving down either the cost of production or differentiate services. These type of
differentiation could add value in existing products which are prepared to pay on premium price
as well.
Porter's Generic Strategies:
This model of generic strategy provides a certain plan of action that managers of Revolut
can adopt for optimisation of resources. This would also help in developing core competencies to
gain competitive advantages. For this purpose, generic strategies are based on three main factors:
Cost Leadership; Differentiation and Focus. Each strategy of this model has a different criteria to
reach success. But before adopting any strategy, administrative department of Revolut Ltd.,
needs to concern on unique needs of customers and process by which they can be satisfied. In
addition to this, chosen strategy is also dependent on main strengths and desired outcome for
success of a company. Therefore, these three basis competitive approaches can be defined as: Cost Leadership: In order to overcome from competitors strategies, company hereby,
majorly concerns on giving out services at lowest price. Differentiation: This strategy has possessed the ability for satisfying customer's need in
such a manner where competitors fails in same process (Chan and Park, 2015).
 Focus: It concerns on serving needs and demands of particular group of customers.
Therefore, concept of these strategies for chosen organisation i.e. Revolut Ltd. Can be
understand in following manner:-
Cost Leadership Strategy: Hereby, main goal of a company for implementing this
strategy is to become cost-leader at marketplace. Therefore, to adopt this strategy, Revolut Ltd.
would require to develop a strategy first and then keep on monitoring it so that to become one of
a cost leader in United States.
Differentiation: Under this phase, Revolut Ltd. would required to be a unique firm within
the Fintech company. Here, commission free trading services given with banking services is
being considered as a unique thing that this company is having as dimensions which will help
them in gaining a good reputation in United States and may help in improving profit margins in
much specific time frame.
Focus: Basically, a business organisation like Revolut Ltd. keep its focus on different
narrow competitive scope in Fintech Sector. Under this case, specifically BOD of this company
28

as a focuser selected a segment i.e. geographical area where it developed a strategy i.e. offering
customers with mutual funds related services to serving them to the exclusion of others.
Mintzberg Organisational Model:
Mintzberg’s Organisational Model, basically focuses on a range of factors like medium
level, ideology, strategic apex, technostructure, operating core and supporting forces. These
basically stays enclosed with different values. In present case, Revolut Ltd. has used a number of
approaches like top management setting strategy which could aid company in expanding
business at international level. In consiist with a number of roles and these are:
Decisional Roles: Revolut Ltd. is expanding business at international level where the
company is offering a new service as well i.e. commission - free trading services, where BOD
specifically takes decisions for the betterment of Revolut Ltd. Here, it is their responsibility to
develop a range of strategies in order to expand business at international level.
Informational Roles: In present context, where responsibility of work linked with the
subordinates where motivating or encouraging employees, considering a range of formal
authorities would aid Revolut Ltd. in expanding business at international level.
Interpersonal Roles: Since a business expansion is taking place of Revolut Ltd. at United
States. Thus, it has been really very crucial for scanning the environment so that information
related to business expansion could take place (Chatterjee and Finger, 2014).
4.4 Business model
Bricks and Clicks Business Model:
Brick-and-Click is being considered as a business model that could help a business
organisation, to operates its business around both online store and offline stores within a single
strategy that consist of retailing. Since Revolut Ltd. is a Fintech company, it won't be possible
for the organisation to do business using an offline store as company is already doing or giving
services to mobile users (targeted clients) through their software application.
Integration of online or offline sales portals are being considered as some of major
challenges of successfully running a brick-and-click store. Thus, Revolut Ltd. Could develop an
offline store as well where an application user can directly reach to them to resolve their issues
and so on.
Freemium business model:
29

Freemium is being considered as a model that consists with a combination of two
different elements like free and premium which can be used by Revolut Ltd. after reaching to a
good level at place where company is expanding its business. Adding a new feature i.e.
commission free trading service may aid in reaching to a new level. This, could be charged by
Revolut Ltd. With a minimal amount in order to earn a good growth or to sustain at marketplace
of United States.
Business Model Canvas (BMC):
A proper business model canvas has been developed to analyse the situation of Revolut
Ltd. is given beneath:
Value Propositions: Design and addition of commission-free trading services in mobile
application are the two different areas of Revolut Ltd. That will aid company in creating a range
of value for their customers.
Customer Segments: For the developed plan, Revolut Ltd. has targeted high, upper
middle and middle class of users of their mobile application. Thus, it can be said that it is a multi
sided market which could help company in expanding business at both the places like European
countries and United States as well.
Channels: Social media, official website, brochures, electronic media and print media are
some of the channels that Revolut Ltd. will use in order to market their services among United
States.
Customer Relationships: Since the commission – free trading service that has been
offered by Revolut Ltd. to improve profit margins would lead company to hit their targets and
will help in developing effective relations with targeted customers of United States.
Key Activities: Marketing of the new service i.e. commission free trading service at
United States, Collection of capital, offering customers with investment related services are some
of key activities that will aid Revolut Ltd. in expanding business in US.
Key Resources: Finance, manpower and mobile application, official website of United
States are some of main resources that will help company in offering customers with a new
service where they can invest money with an ease (Croitoru, 2012).
Key Partnerships: Optimal Payments, investors, government and customers are some of
partners that Revolut Ltd. is having that will help in expanding business at United States with
their new investment related technique.
30

Revenue Streams: Offering services at affordable cost, getting benefits after providing
services, maximize profit and high quality service are some of the factors that will aid Revolut
Ltd. in generating a good range of revenue at the time of implementing the business plan.
Cost Structure: Fixed, variables, economies of scale/ scope, direct cost and indirect cost
are some of major elements of cost that will basically aid Revolut Ltd. to expand its business at
international level.
Key Partners
 Optimal
Payments
 Investors
 Governme
nt
 Customers
Key Activities
 Marketing
 Collection
of capital
 Offer
customers
with free
commissio
n trading
Value
Propositions
 Design
 Addition
of
commissio
n-free
trading
services in
mobile
applicatio
n
Customer
Relationship
 Strong
customer
relationshi
ps
 High
consumer
base
 Event
Customiza
tion
Customer
Segments
 High
 Upper
middle
 Middle
Key Sources
 Finance
 Manpower
 Mobile
applicatio
n
Channels
 Social
media
 Website
 Brochures
 Electronic
Media
 Print
Media
31

Cost Structure
 Fixed
 Variables
 Economies of scale/ scope
 Direct Cost
 Indirect cost
Revenue Streams
 Offering services at
affordable cost
 Getting benefits after
providing services
 Maximize profit
 High Quality Service
CHAPTER 5: BUSINESS PLAN REVIEW
5.1 Overall assessment of the business plan
With the help of above mentioned information, it can easily be said that developed
business plan for Revolut Ltd. will directly help company in expanding business at international
level (Dahlgaard and et. al., 2013). Here, offering customers with commission – free trading
services where they can invest money from which they can get high rate of returns on
investments that has been made by them. Through this, maximum benefits could be gained by
them. Since, most of people in United States do likes to invest their saved money among
different areas from where they can get good returns, that means organisations offering
customers with mutual funds related techniques will help them in reaching to new heights, where
company could easily gain a good reputation at marketplace of United States in specific time
frame. There are a range of factors which has been included in business plan and these are given
beneath:
5.1.1 Product/Service idea
It has been analysed that, commission - free trading services are running in trend in
present world, because it directly help an individual in looking at the areas, or share market
through which they can invest money in areas where right amount return on investment can be
gained. Thus, business plan of Revolut Ltd. is specifically going to offer a whole new service
where clients or mobile application users can not only transact their money but they can also start
investing their money into the areas where a good rate of return can easily be gathered by
individuals (investors) (Dimitriou, Voskaki and Sartzetaki, 2014). Along with this, since
32

company has already offering banking and other services like currency exchange, instant access
to cryptocurrencies and so on. Here, adding this new service would help Revolut Ltd. in
becoming a renowned brand at United States. On the other hand, it can also be said that,
considering this approach would specifically help Revolut Ltd. to sustain at international level.
Thus, developed service related business idea or the business plan of Revolut Ltd. will directly
aid them in expand business at United States and in other nations of Europe as well. This will
directly improve sustainability at marketplace, because there are no only few companies (Fintech
organisations like Robinhood and Trading212) that are performing same kind of services.
5.1.2 Legal issues
In present time, at the time of developing a new business development plan of a Fintech
organisation, it is required to focus on three different key areas that are basically shared by
regulators worldwide relating to a new idea or related to cryptocurrencies. These are given
beneath:
 At the time of developing a new business plan just the way Revolut Ltd. did for its
mobile application users to focus on consumer protection related acts. As personal data of
a person could be used by an individual against him or her which could create risks.
Thus, it is necessary for Revolut Ltd. to use all the consumer protection acts.
 Another issue which needs to be kept or focus on i.e. prevention of financial crime, in
particular money laundering. Since, Revolut Ltd. is offering a range of banking services
to its clients, where information is flowing at online market. Thus, this could lead
company to face issues as there are many hackers sitting online 24*7 for collecting the
data so that it could lead them to harass others.
 Integrity of the markets is also being considered as an effective approach which could
basically lead Revolut Ltd. to go through a range of issues at marketplace.
5.1.3 Financial requirements
Revolut Ltd. has kept its focus on two different sections like business expansion and on
adding a new service i.e. commission – free trading service in their existing ones. Thus, it can be
said that, company would require to have a number of financial elements or factors which may
aid a business company in reaching to new limits or executing the plan in specific time frame as
33

well. Along with this, it has also been analysed that, financial business companies could get
supported from both governmental and private banks as well. Along with this, it can also be said
that, friends, family, overdraft are some of other approaches through which Revolut Ltd. had
raised capital for themselves in order to execute the plan in much effective and efficient manner.
Under present case, where Revolut Ltd. is expanding business at United States and in
other countries as well of Europe, company would require to have a good amount of finance in
order to run and for expansion. Here, Revolut Ltd. has collaborated with Optimal Payments
which could also support them executing the plan and implementing it in specific time frame.
With the help of this, company will not face risks related to finance and will expanding
its business not only in United States but in other nations of Europe as well (Dudin and et. al.,
2014).
5.1.4 Risk Issues
As business expansion requires a good investment so that desired goal of enlarging
operations at targeted place can be done with an ease. In the same way, it is much required for
Revolut Ltd. to keep focus on different risks as well that may impact upon overall performance
level of the business plan. Here, a range of risks that has been carried out like, United States is
having different governmental policies in every single state of this nation (Dunning, 2013). Thus,
this could be considered as one of an issue or a risk that may impact negatively on overall
business plan where company would not be able to meet its profit margins or would not grab
attention of targeted customer as expected. Along with this, another issue which took place is
that, Robinhood and Trading212 are the two organisations that are already carrying a good
reputation at targeted market. This will bring a number of problems for Revolut Ltd. to run its
business in successful manner into the targeted marketplace.
Through this, all the issues could be resolved in right on time through developing a
number of strategies like time management, Freemium business approach and so on through
which risks could be reduced to minimal.
5.1.5 Marketing matters
This is being considered as an effective factor which may make or break Revolut Ltd. At
the time of executing the developed business plan. In present time, online marketing approaches
34

are mainly being used by business companies that may help in becoming a famous or renowned
brand at competitive market. On the other hand, it has also been analysed that, Revolut Ltd.
Would need to use both online and offline marketing tools like direct marketing, use of different
social media tools like Instagram, Facebook and many more. Through this, maximum benefits
could be gained by Revolut Ltd. in specific time frame (Finch, 2013).
5.1.6 Organisational Feasibility
In present context, where Revolut Ltd. is basically has kept its focus on offering
customers with commission free trading services where individuals can easily invest their money
among different areas from which they can get good returns on investments. Through this,
maximum benefits could be gained by Revolut Ltd. and by its users as well.
For the same, Revolut Ltd. has done a range of analysis of both internal and external at
the same time. On the basis of analysis which has been done on internal perspective, where it is
required for organisation to deliver training to staff. Through this, staff would help Revolut Ltd.
in expanding its business at international level (Frankenberger and et. al., 2013). It will be
required for the company to deliver training to staff so that they could perform well at
workstation of United States and easily resolve all the queries raised by the users. On the other
hand, Anti-discrimination related policies are also required for Revolut Ltd. To be followed so
that it do not entertain discrimination as well. To develop a range of anti-discriminative related
policies so that company would not get into trouble.
On the other hand, if it is talked about external related policies then, it will be required
for Revolut Ltd. to develop a range of policies related to customers as business expansion always
takes place on the basis of demands of customers and current/future trends. Here, company
would require to keep focus on feedbacks, suggestions and many more other things while
developing a policy or developing a business plan (Groves and Hinton, 2013).
5.1.7 Overall resource sufficiency
As Revolut Ltd. is offering banking services including commission - free trading to its
clients to its clients Thus, a range of resources like internet, finance, governmental policies of
United States, training to staff, would need to have in order to implement the business
development plan. Here, company is already having all of the resources that means, Revolut Ltd.
35

Would easily expand its business in U.S. and implement new service in its existing service i.e.
mutual funds. Through this, maximum benefits could be gained by Revolut Ltd. and could
expect high returns on investments which has been done by the company to expand its business
in different countries of Europe and in various states of United States as well (Halme, Lindeman
and Linna, 2012).
5.2 Proposed Plan of Action
Action Plan for Revolut Ltd:
Goal: Why is this goal
important?
Behaviour Change Make your goal
SMART
Regular changes
among strategies made
to deliver good
experience to targeted
customers of United
States with offered
service i.e.
commission - free
trading.
It is very much
important because,
customers priorities
gets changes on a
regular basis. This
could impact upon
overall strategy made
by Revolut Ltd. for
future sustainability.
From looking at the
start, it will be
required for Revolut
Ltd. to start focusing
on the end through
monitoring.
To analyse the strategy
in every 3 month so
that customer base
could be enhanced by
2% in every 6 month.
5.3 Discussion of critical success/failure factors
Based on overall success, it can easily be said that business development plan of Revolut
Ltd. could directly improve profit margins and could easily expand business in United States as
well. On the other hand, it has also been analysed that, company would easily start grabbing a
good position at marketplace of United States.
On the other hand, there is a possibility for a business company to consist of number of
failure factors, that would impact upon overall performance level as well. Through focusing on a
range of numbers factors which could impact upon goal that has been developed by the business
company (Harrison, 2012).
36

CONCLUSION
With the help of above mentioned report, it is being concluded that a business
development plan can help a company in reaching to new heights. Along with this, it can also be
said that, while developing a business plan, it is pretty much required for an organisation to go
through different internal and external factors so that execution could take place. On the other
hand, there are a range of business model like canvas, freemium business model, Bricks and
Clicks Business model that could be used at the time of implementing a new business plan in
existing services. Through this, maximum benefits could be gained in much effective and
efficient manner.
37

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