Presentation prepared during the MBAs International Week for the EMBA Consortium in Miami (2013). Thanks to Dr. Rao, FIU and COPPEAD Business School.

1. Dis.com
Enhancing shopping experience
EMBA Consortium – International Week
Executive MBA
Gee
Andrei
Delmarie
Jan Thomas
Stefano
Qing

2. Understanding the American Retail Market and Consumers
According to the 2005 census report there were approx. 50,000 shopping malls
or strip malls in the USA
A majority of the public now owns a smartphone, and mobile devices are playing
an increasingly central role in the way that Americans access online services and
information
US retail e-commerce spending grew by 13% year-over-year to reach $50.2
billion
How can opportunities
and trends be explored?
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3. The Dis.com business
Consumers
 Go to shop with online
discount coupon on
smartphone
 Receive alerts of
discounted products
walking pass shops
Shops
Sell discounted product $$$
 Download app and create
shopping profile on
smartphone or website for
free
Provide Dis.com
Online Service
Dis.com
Provide online products
search tools (websites and
smartphones)
Promotions and publicity
Shopping Maps
Update discouted
products in Dis.com
system
Pays Dis.com service $$$
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4. What distinguishes Dis.com from competitors?
Dis.com
 Online shopping fees
 Memberships
 Delivery process
 All products with at least 10% of discount
 Not only discounted products retrieved
on online search
 Online reservation of discounted product
to pick at the shop
 Shopping area maps and products search
features
 Alerts of discounted products on
smartphones based on the user profile
and proximity to the shops
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5. Value Curve
Benefits
Value and Features
Time Saving
Notifications
Alerts and messages
User Interaction
Smartphones
Ease of Use
Technological features
Optional Features
User profiles
Customized
Increased volume of sales
Advertising
Price to Shops / Cost Benefit
Relative Level
Dis.com
Competitors
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6. Product Competitive Advantage
• Partnership with Shopping Outlets. E.g.: Name Brand Outlets – Sawgrass
Mills, Premium Outlets
• Partnership with Major Malls
• Scalability of Business
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7. Segment Description
• Tourists
• Medium and low income consumers
• High income value seekers
Segmentation
Tourists
Medium income
High income
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8. Industry Characteristics & Barriers
• Barriers market entering
 Tourist access to local
network if not using free wifi
 Limited use of smart phone in
medium income groups
 New process of discount
shopping
 Online vs direct store
purchase
Trust habit
Initial network effect
•
Barriers to increased sales
 Malls competition
 Shops competition
Fad element
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9. Pricing Analysis
• Fixed Cost
 Monthly fee for the shops – Allows shops to appear in dis.count search
system
 150 $
• Variable Cost
 Pricing to control needs
 Depends on number of products announced
 Depends on days announced of each product
 1 $ / product / day
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10. Harvest Potential
As Is Scenario
• USA Population: 313.9 million
• 50 states
• Approximately 50,000 shopping malls or strip malls in the USA
Start Up
• First Area: Florida – Tourist destination of approximately 90 million tourists a year
• 32 malls in first year ~ 40 shops per mall ~ 1280 shops
Roll Out
• Areas with high tourist rates – E.g.: New York; California
• Areas with high rate of medium income inhabitants – E.g.: Universities, Immigrant areas
• 512 malls in fifth year ~ 1% total malls in USA ~ 20,480 shops
• Expected $250 income per shop
20480
10240
Shops
5120
1280
Year 1
2560
Year 2
Year 3
Year 4
Year 5
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11. Potential Financial Return vs Investment Required
• Amount needed from investors
$ 2,000,000
• Return Rate To Investor
20%
• IRR of Business
13%
• Monthly Sales after 5th year
$5.120.000,00
•Valuation after 5th year
$49.850.000,00
• Share to Investor after 5th year
12%
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