E.T. PHONE HOME, Inc. Forecasting Business Demand

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E.T. PHONE HOME, Inc.Forecasting Business Demand
Group 6 Vinay Iyengar
04BM8002 Vikram Narayanaswamy
04BM8090 C R Ramesh
04BM8089 Srikiran Kundeti
04BM8085 Ganapathy Subramanian N 04BM8086
Jaiguru M 04BM8088
Praveen Vasudevan 04BM8087
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OBJECTIVE

• Critical analysis of the basic assumptions in
  the Business Model

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CRITICAL ANALYSIS

• Forecasting and Initial Survey
• Market Share
• Pricing
• Costing
• Technology

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FORECASTING AND INITIAL SURVEY

• Number of businesses in Cleveland
• Growth rate 0.9 or higher ?
• 427m investment in construction was it
  considered?
• Penetration Levels
• Similar to that of consumer durables ?
• 15 90 in shorter time?
• Advertising and Equipment costs

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MARKET SHARE

• Majority Users Business Sector
• Chicago Waiting Lists
• Business user survey in Cleveland
• Past experience with Mobile Phones Pagers
• Other professionals and domestic users not in
  sample population
• Market Share for ETPH 50
• Depends on many factors such as early start of
  service, tariff rates, quality of service,
  functionality etc

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PRICING

• Most popular Price Range - 110
• Includes monthly charge of 25 plus talk-time
  charges likely to vary with competition
• Fall in price with introduction to retail
  markets is not accounted for
• Same Price Demand Relationship
• Will 21.2 steady increase of 0.2 hold good
  for all 10 years?
• Demands may vary with region and time

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COSTING

• Maximum limit on customers
• Support for 10,000 users max may increase
• Salaries and Overhead Expenses
• Fixed at 250,000 may increase with time
• Cost Estimates
• No rationale for average of ATT and Low
  Estimates

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TECHNOLOGY

• No challenges by newer technologies
• Will newer technology replace Cellular Telephony
  as it is intended to replace Mobiles pagers ?
• Co-existence with mobile phones and pagers
• Is the assumption that Cellular will replace
  Mobiles Pagers valid will they co-exist?

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APPENDIX

• Financial Feasibility
• Realistic Growth Rate
• State Map of Ohio

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FINANCIAL FEASIBILITY
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REALISTIC GROWTH RATE
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STATE MAP OF OHIO