Tranzsocial.com Business Model and Plan

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This report outlines the business plan and model for Tranzsocial.com, an online sports entertaining network that offers games program, equipment, and clothing. The report includes information on the company's unique features, revenue structure, cost structure, and target customers.
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Business model and plan 1
University
Full name
Students ID
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Business model and plan 2
Executive summary
In this report I will create a business plan and a model for a new business venture that would
be based at Sydney, Australia. My proposed new business venture name is Tranzsocial.com,
the company would create an online sports entertaining network that would offer games
program, equipment and clothing. Identifying that a vibrant traits of retailing merchandise
over an internet is to give persuasive entertainment content that would inspires sales.
Tranzsocial.com unique features would reveal the latest thrilling entertainment and the entire,
events, products services, and explorations that are associated with sports programme. The
company would offer effective and interactive experience in shopping, its channels will cater
for global audience who are interested in sports. My company vision is to create a global
sports entertainment community.
Tranzsocial.com will build a network that is based on internet. The network would assist the
company to promote its sports, clothing and equipment and also sales and marketing of their
products.
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Business model and plan 3
Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Business model canvas..........................................................................................................................4
Customer segments...........................................................................................................................4
Value proposition..............................................................................................................................4
Benefits to the clients....................................................................................................................4
Customer relationship.......................................................................................................................5
Channels............................................................................................................................................5
Key activities......................................................................................................................................6
Key resources....................................................................................................................................7
Key partners......................................................................................................................................7
Revenue structure.............................................................................................................................7
Cost structure....................................................................................................................................8
Source of funds and the use proceeds...........................................................................................8
Planning.................................................................................................................................................8
The company profile..........................................................................................................................8
Marketing..........................................................................................................................................9
Target customers...............................................................................................................................9
Demographics of target customers...............................................................................................9
Operation and technology.................................................................................................................9
Human resources.............................................................................................................................10
Finance............................................................................................................................................10
Conclusion...........................................................................................................................................12
Reference............................................................................................................................................13
Appendix.............................................................................................................................................15
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Business model and plan 4
Introduction
I got the business idea from the identification of market gap. After I research, I found that
there is few companies that operate the said business. The company name would be
Tranzsocial.com Tranzsocial will provide an inclusive services to the customers ranging
from sports equipment and clothing, personalization, shopping and buying experience to
customers. The company would market its products and services globally (Scarborough,
2016).
Business model canvas
Customer segments
I. Demographic segmentation – the type of segmentation that would be used would be
mainly demographic. The company would address mainly to young generation who
like sporting activities and enjoy being associated with celebrities (Reymen, Berends,
Oudehand & Stultiëns, 2017).
II. Behaviour segmentation- customers would be differentiated according how they buy
products, create need or utilise merchandise. These occasions would help
tranzsocial.com to expend its market.
III. Geographic segmentation- the geographic division would enable the company
products to be distributed globally (Serrat, 2017).
Value proposition
Benefits to the clients
Affinity clothing clients will be engrossed because the following important value
propositions the would be employed
Content – the content of the company would inspire customers to read the articles of the
company and encourage them to repeat their visits and discover new exciting offers in sports,
clothing and celebrity across the world. The development and the acquisition of the content is
going to be mostly exclusive to secure the brand of the company (Massa, Tucci & Afuah,
2017).
Unique shopping – the company site would give a inimitable visual experience to clients who
are browsing over the products. Though now days shopping experience does not contain true
colour and texture, but through the use of technology, the company would create the clients
with experience via a vibrant experience. Users would be lucky to utilise the technology of
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Business model and plan 5
3D mannequin. The online shoppers may be required to input height, bust, weight, waist size
and other details. All the products would have a rotation of 3D to enable a better view
(Pedersen, Gwozdz & Hvass, 2018).
Highly customizable- the tranzsocial site will be highly customizable and interactive for
customers to view and do shopping. Every time a client enters the tranzsocial.com will
recognize the clients and offers products and services that are mostly purchase by customers
or the contents that are mostly preferred by the customers (Hopp, Greene, Honig, Karlsson &
Samuelsson, 2018).
Easy to use- the tranzsocial.com site will be created to major on sports consumer and it will
be easy to purchase products.
Community- tranzsocial is going to create a strong group of people who have common
interests in in content and programming.
Customer relationship
Tranzsocial.com would be created to enhance a good relationship with customers. The
relationships would be as follows (Hiteva & Sovacool, 2017).
Self-registration- the potential customers who can browse the site would be able to sign up
before purchasing the products. The customer would be prompted to register before making
any purchase. The user would also be prompted to select the preferred language and the
currency.
Personalised services –customers will have a chance to customize the viewing experience,
this would increase the loyalty of customers, each customer is authenticated and their
preference are sorted by the system to be priority.
Culture- in order to meet the needs of the customers the company intends to listen to the
clients’ needs that would assist them to build the customers profile that add market
demographic data and provide feedback to the sponsors.
Channels
Tranzsocial.com is going to sell their products via multiple distribution channel or single
distribution channel. These would involve either business to business (B2B) or business to
consumer (B2C)
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Business model and plan 6
Wholesaler/Distributor- customers would order for goods and services and would be channel
via a wholesaler or distributor.
Direct/Internet- clients may purchase products from the company’s website and delivered to
them directly using the company’s vehicles.
Direct/Catalogue.
Direct/Sales Team- the products may be sold directly to the clients
VAR- the company may channel goods via value-added reseller.
Consultant- the customers may obtain the products from the company consultants, who
would give guidance to the clients.
Dealer- clients may order for products or service via a dealer, the dealer would organise
everything until the clients receive the products.
Retail- the customers may order goods and get them through the retailers who are also the
company
Key activities
Tranzsocial.com will give a comprehensive consumers services that are value added that
would concentrate on its audience and the products sponsors. To secure the brands, products
and prices, the company would put their services as a priority on the sales. The company will
not only deal with online services off-line alternatives would be used as well. It would
emphasis on customer interaction on the selling process. The key activities of the company
would be as follows: (Ross & Byrd, 2015).
I. Content/ programming- the users of the platform would be experiencing the leading
programming and expositions that would focus in sporting activities, clothing and
celebrity. To enhance the services of the company more of the products and services
would be sold to syndication partners (Boons &Lüdeke, 2013).
II. Buying and referring- the buyers would be referred to the merchants who are
available online through clicking on products that are shown the company content and
programming section. Each and every activity would be tracked for purchases history
and the customer services (Taneja, 2017).
III. Interactive browsing- tranzocial.com would use the modern technology that would
facilitate interactive browsing. Users would be able to drag products and drop it to
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Business model and plan 7
their shopping cart this service would affect way in which the customers do shopping
over internet.
IV. Community- Users of the tranzsocial platform would be inspired to participate in
community services and communicate via boards, email and chat rooms. This would
create a good profile for the company that would add value marketing and feedback
and demographic information to sponsors (França, Broman, Robèrt, Basile & Trygg,
2017).
V. Personalization- clients would be in a position to personalise the viewing experience.
Key resources
The key resources of the company would involve tangible and intangible resources
The tangible resources would offices, vehicles, office computers, servers, the company phone
number. The intangible resources would involve the brand name of the organization,
company logo, the website, insurance, permits, employment contacts, shareholders
agreements, supplier contracts and the copy rights (Yang & Evans, Vladimirova & Rana,
2017).
Key partners
Tranznet.com will create a sponsorships and strategic alliances with main key industry
companies that will create a public relation credibility and traffic to the companies’ site. The
main partners of the company would be as follows:
Big pipes- this would be internet service provider, this company would offer services like
internet distribution.
Cool Content- this company would provide the internet portal and internet distribution
services
Technology Web Builders - this would provide the company with the website, maintenance
services and inventory distribution.
Traffic and Brand Builders – would offer marketing activities, content syndication and
affiliate marketing.
Revenue structure
Tranzsocial will generate profits and revenues from variety of sources
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Business model and plan 8
I. Sponsorships
II. Advertising- the advertisers will have to pay banners and ads, link placements and the
featured articles in the company content
III. Affiliate commissions
IV. Content/ design syndication – tranzsocial.com services will be directly sold to affiliate
associates for co-branding and republishing exposure. The associates will be receiving
fresh updates content from tranzsocial.com every day. The will be received over the
links on the website (Schaper, Volery, Weber &Gibson, 2014).
V. Services that are value added- the tranzsocial will offer additional products and
services to its sponsors like web casting of live events, chat hosting and moderation,
messaging boards.
Cost structure
Source of funds and the use proceeds
For the company to achieve its objective it needs to incur some costs. The company is
looking forward to secure funding through an equity funding that would create investments in
many areas and fund financial needs for the first 12 months of the business operation.
Tranzsocial is seeking 200 million US dollars to finance their activities. The funds from
equity would be utilize as follows;
Payroll $ 15 million
Strategic alliance and marketing $ 20 million
Technical equipment start up $ 100 million
Man power $ 20 million
Other expenses $ 55 million
Total $ 200 million
Planning
The company profile
The name of the company would be Tranxsocial.com. The aim of the business is to create an
online sports entertaining network that would offer games program, equipment and clothing.
Identifying that a vibrant traits of retailing merchandise over an internet is to give persuasive
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Business model and plan 9
entertainment content that would inspires sales (Brinckmann, Dew, Read, Mayer & Grichnik,
D., 2018).
Marketing
Tranzsocial.com market efforts would be focused to execution of the organization strategies
of creating awareness and bring the traffic to the company website. The amalgamation of
robust creative marketing will increase the association with the traffic sites which would
result to more visitors who are going to be loyal and frequent customers. The company is
expecting to utilise many tools of marketing that includes web advertising, grassroots
marketing, affiliate market and public relations. The company is forecasting a total of 24,
000,000 in their first year of operations (Ghezzi, Cavallaro, Rangone & Balocco, 2015).
Target customers.
I. People who are interested in merchandise and sports products
II. People who are entertained by shopping experience
III. People who like purchasing clothes online
IV. People who are living or working in Australia, Asia, North and South America
V. People who can access internet either at work or at home or at work
VI. People like purchasing clothes that contain names of celebrities.
Demographics of target customers
The customer of the tranzsocial would have the following demographic features
I. Male 82% age between 25-54 / female 18 percent
II. Average of 34 years old
III. 55 percent full time employed
IV. 59 percent married
V. 72 percent can access internet from home are office
VI. 45 percent are
Operation and technology
It is going to be critical that the audience of the Company enjoy the design and the layout of
the company’s website and interact freely from the nature of the companies programming.
Tranzsocial design and layout is going to be user friendly and it will be very attractive to the
eyes of the target audience. The functionality features and the content may be simulated by
the competitors. The company would have a robust branding message that is going to
advance to all areas of the site and is going to provide a good experience for the clients. The
website should encompass the identification and the sophistication of sponsors and the
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Business model and plan
10
programming that is presented and offered to the clients to enhance an interactive community
(Chambers & Humble, 2017).
Market trends
There are a good number of trends that are going to make tranzsocial.com the ultimate
solution in sports industry
New technology- the company site will provide adequate viewing experience to clients
online. The 3D graphics, broadband technology and interactive televisions is enabling new
both new and existing business that is going to challenge shopping and viewing experience.
Merging partners- the eTailers and the companies that concentrate on internet content are
merging and joining together to reinforce offerings.
Pro sports over internet- celebrities are constantly and increasingly making us e of the
internet to be a communication medium so as to exploit latest product offering while
marketing their personal value gaining fame.
The sports industry is reluctant to utilizing technology- most companies shy off using
technology. My company take this to be a chance in the evolving industry.
Success of other online sites- most companies that use online has experience success, for
instance Amazon has demonstrated that clients value online shopping.
Competition
Currently we have several companies that are providing products or content online. For
instance we have BCD limited. Penetration into market for companies might be limited due
to the following factors:
I. Minimal interactive services offered which build communication with clients, for
instance message boards and chats.
II. Most companies focus on selling products with no rewards experience such as
culture, sports and clothing
Business strategies
My company will adopt the following strategies to meet the objectives which would make it
the leading company for online sports.
I. Build a persuasive value preposition for both clients and the sponsors
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Business model and plan
11
II. Create a robust brand leverage and recognition brand equities affiliated by
Tranzsocila.com
III. Develop a good relationships with clothing manufactures and the content syndication
partners.
IV. Give a persuasive content presentation that would encourage clients foe repeat visits.
V. Provide highly personalized services
Human resources
The human resource team would involve the experience executives and other employees of
the company. The executive team will Have a general backgrounds in controlling developing
and managing business inside sports and the online industries. The company is planning to
have three senior executives and around ten supporting staffs would be in charge of every
departments. Some of them would assist in site design, marketing, media programming and
business development. The executive’s staff and main business operations will be situated at
Sydney, Australia. (Burns & Dewhurst, 2016).
The business owners would comprise of five family members who intends to be
entrepreneurs. The owners would be the directors and the executives as well. They are going
to be responsible for:
I. Organizing- this involves bringing together the materials, man power, machinery and
money to execute the organizations tasks and plan.
II. Staffing- the management of human resources and planning
III. Directing- give guidelines and directions to employees while performing work
IV. Planning – this is predetermining the performance of the activities of the organization
(Foss, & Saebi, 2018).
Finance
The implementation of this business model and plan will result to significant viewers, profits
and the commercial revenues. The key metrics of finance would include:
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Business model and plan
12
Year 1 Year 2
Page views monthly 24000 000 6,000,000
Total views 24, 000, 000 72,000,000
Tranzsocial.com revenues ($) 36, 000,000 432, 000,000
Tranzsocial.com total expenses ($) 20, 000,000 240,000,000
Net profit/ loss 16,000,000 192, 000,000
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13
Conclusion
For every new business venture, there must have business plan and model. This business
model plan will try prepare the tranzsocial.com to have solid business profile and trademark
that would make the company to achieve its set objectives (Brinckmann, Dew, Mayer, Read,
and Grichnik, 2015).
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Reference
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner production, 45, pp.9-19.
Brinckmann, J., Dew, N., Mayer-Haug, K., Read, S. and Grichnik, D., 2015. Of those who
plan: a meta-analysis of the relationship between human capital and business PLANNING
(SUMMARY). Frontiers of Entrepreneurship Research, 35(3), p.6.
Brinckmann, J., Dew, N., Read, S., Mayer-Haug, K. and Grichnik, D., 2018. Of those who
plan: A meta-analysis of the relationship between human capital and business planning. Long
Range Planning.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chambers, I. and Humble, J., 2017. Developing a Plan for the Planet: A Business Plan for
Sustainable Living. Routledge.
Foss, N.J. and Saebi, T., 2018. Business models and business model innovation: Between
wicked and paradigmatic problems. Long Range Planning, 51(1), pp.9-21.
França, C.L., Broman, G., Robèrt, K.H., Basile, G. and Trygg, L., 2017. An approach to
business model innovation and design for strategic sustainable development. Journal of
Cleaner Production, 140, pp.155-166.
Ghezzi, A., Cavallaro, A., Rangone, A. and Balocco, R., 2015, April. A Comparative Study
on the Impact of Business Model Design & Lean Startup Approach versus Traditional
Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).
Hiteva, R. and Sovacool, B., 2017. Harnessing social innovation for energy justice: A
business model perspective. Energy Policy, 107, pp.631-639.
Hopp, C., Greene, F.J., Honig, B., Karlsson, T. and Samuelsson, M., 2018. Revisiting the
influence of institutional forces on the written business plan: a replication
study. Management Review Quarterly, pp.1-38.
Massa, L., Tucci, C.L. and Afuah, A., 2017. A critical assessment of business model
research. Academy of Management Annals, 11(1), pp.73-104.
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Business model and plan
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Pedersen, E.R.G., Gwozdz, W. and Hvass, K.K., 2018. Exploring the relationship between
business model innovation, corporate sustainability, and organisational values within the
fashion industry. Journal of Business Ethics, 149(2), pp.267-284.
Reymen, I., Berends, H., Oudehand, R. and Stultiëns, R., 2017. Decision making for business
model development: a process study of effectuation and causation in new technology‐based
ventures. R&D Management, 47(4), pp.595-606.
Ross, L.W. and Byrd, K., 2015. Business Plan Competitions: Start-Up'Idols' and Their
Twenty-First Century Launch Pads.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Serrat, O., 2017. Business model innovation. In Knowledge Solutions (pp. 499-507).
Springer, Singapore.
Taneja, N.K., 2017. Simpli-Flying: optimizing the airline business model. Routledge.
Yang, M., Evans, S., Vladimirova, D. and Rana, P., 2017. Value uncaptured perspective for
sustainable business model innovation. Journal of Cleaner Production, 140, pp.1794-1804.
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Appendix
Appendix 1 start-up proposal
Appendix 2 initial questions to answer before venturing in the new business
Appendix 3 details to include on a business plan
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