Due to the sensitive nature
of this document, it has been heavily edited for the purposes of this
gallery demonstration. ACME PARTS.com will provide free "How To"
articles for businesses and consumers. We will guide the reader through
how to choose a product or service, diagnose a problem or effect a repair.
Integrally linked to the content will be opportunities for the reader
to purchase products or services specifically related to their query.
We will provide an extensive library of articles, videos, primers, owner’s
manuals and "How To" features; entirely free of charge. We will
provide detailed, thorough information complete with supporting photographs
or diagrams. We will provide information that enables people to make informed
product & service selections, diagnose problems and to make their
own repairs.
In
tandem with our extensive library we
will offer the most complete selection of replacement parts and accessories
found anywhere. We will improve consumer access to parts by offering the
combined inventory of many manufacturers and distributors. By virtue of
our unmatched selection we will make available to consumers the parts
they need, including hard-to-find, unstocked, and parts not available
through normal resale channels.
We will grow our organization
by continually adding new market segments. We will target viable markets,
fully implement content and commerce coverage to fulfill the needs of
that market and then launch into the next market segment.
We will make ACME PARTS.com
a destination site for both our array of product offerings and our encyclopedic
knowledge base. By providing the broadest possible selection and by continually
adding product lines and related content features, we will develop for
ACME PARTS.com the reputation and name recognition to become the de facto
choice of consumers for replacement parts, accessories, tools, supplies
and repair service.
What We Do
There are three components
to our business; content, product and service offerings. Respectively,
these contribute to revenue in the form of advertising sales, retail sales
and service subscription sales.
The key component of our business
is our content publishing. We publish an enormous library of articles,
videos, owner’s manuals and troubleshooting materials. We also host discussion
groups, provide access to experts on-line and conduct webcasts. All of
this content is provided to our site visitors entirely free of charge.
Within the content section we sell advertising space which appears alongside
each article. These ads can be targeted by both relevance to the article
and relevance to the reader (based upon collected demographic data).
The second component is our
retail arm. We are an Internet based retailer of replacement parts, accessories
and tools. Links are embedded within our articles to merchandise directly
related to the subject of each article. If a reader discovers while following
a guide that a component needs replacing, that guide will also include
links to purchase the parts, supplies and tools related to making the
necessary repair.
Our third component is service
referral subscription sales. For our readers who elect to hire a professional
service provider, we provide links to local
qualified technicians. We sell service referrals to service providers
and match them up with customers requests based upon geographic location.
We generate three streams of
income. Our
first stream is derived from advertising sales in our content library.
Our second stream is through direct product sales. The third revenue stream
comes from the sale of service referrals.
Our initial launch will encompass
major appliances. Site visitors will be able to diagnose problems with
major household appliances, learn how to make repairs, purchase replacement
parts and related supplies or hire a service professional. We will also
provide primer's on the availability and value of features on new products.
Whether a visitor wants to make their own repairs, hire someone or pruchase
a new appliance, ACME PARTS has something of value for them.
A partial list of future targeted
market segments include all areas of home maintenance, landscaping, power
tools, bicycles, personal computers and ultimately automotive.
Value Proposition
We enjoy several unique advantages
in this enterprise, the first of which is an opportunity to be the first
major e-tailer on the scene. No other on-line company offers a comprehensive
selection of replacement parts which can be viewed and purchased on-line.
And no other website offers the kind of in-depth diagnostic tools and
repair tutorials that we do.
The value to our visitors of
our enormous library is that it enables them to diagnose and repair problems,
and to learn about and make informed choices about products. The value
to ACME PARTS.com is four-fold. First of all, every page of content contains
paid advertising. These advertisements have the potential to generate
tremendous income for our company.
By providing "content", we
maintain a strong draw for our website. Internet users seeking repair
information through search engines will be led to ACME PARTS.com. Every
individual article can be listed with search engines under its respective
category. This effectively multiplies by the thousands the number of entries
ACME PARTS.com can place into each engine. The more topics we cover, the
more hits that search engines generate. The benefit of this being, "hits"
translate into traffic flow, which in turn translates into advertising
revenue and conversions to sales on our commerce site.
Providing content has the value
of encouraging repeat visits and customer loyalty. Once a person visits
our library, the likelihood is great that they will return to use it again.
It is a significant hook for bringing people back.
Additionally, by providing
content we are attracting the people who are most easily converted into
customers. That is, we are attracting visitors who are interested in learning
how to make a repair and thus a potential customer for parts. The site
blends commerce with content by enabling customers to make purchases directly
from the text of "How To" articles.
Another advantage is our opportunity
to partner with manufacturers and secure direct links from their websites
to ours. We provide in our library a thorough selection of user’s manuals,
diagnostic tools and repair guides. Manufacturers can link to us and provide
an avenue to consumers for diagnosing and making repairs as well as obtaining
replacement parts. Manufacturers can provide links for their customers
benefit and subsequently reduce their own support burden.
A major cost-saving advantage
for this enterprise is the ability to be a virtual warehouse of replacement
parts and accessories without the necessity of maintaining any inventory.
A network of product distributors transacts all order fulfillment. This
eliminates a tremendous overhead that would otherwise exist. By maintaining
relationships with duplicative distributors, we can ensure to a great
extent that parts are always maintained "in stock" and that we have access
to the best price.
We have the opportunity to
collect a variety of useful demographic data. Two examples include our
ability to track an individual’s interests by the articles they choose
to read and to track a customer’s product ownership by device type and
manufacturer. The more time a visitor spends at our site, the more valuable
data we accumulate. None of this information requires the visitor to volunteer
any personal data. Visitors who do volunteer information make our data
even more valuable.
Advertising revenue increases
along with the demographic information we can associate with a visitor.
For instance, a visitor who is reading about how to replace a washing
machine motor can be matched with an ad for Tide detergent or even for
a brand new washing machine. These targeted ads can be sold at a premium
rate over ads matched at random.
Sustainability
As with any venture, sustainable
advantage is important. The sustainability of this venture is very good.
Certain normal consequences of our operation will result in a natural
sustained advantage. In other cases, we develop elements to our business,
which serve as barriers to entry for potential upstart competitors.
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The Deterrent Effect
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By building our organization to fulfill
our described niche, we serve as the greatest deterrent to upstart
competitors. By doing our job well, it serves as the greatest deterrent.
A potential competitor has to believe they can do what we do either
better or more economically. We simply won’t give them that opportunity.
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As we add product lines, it becomes
even more difficult to do what we do. Our growth strategy serves
as a deterrent to competitors. The larger our organization and the
broader our offerings, the less appealing our niche appears to would
be competitors.
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By virtue of being there
first, we have a huge advantage over others. For second up companies
their access to capital is reduced, morale can be heavily impacted
by successes of their competitor and they lose much of the opportunity
for generating hype that the first to appear on the scene typically
enjoys.
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Library Contents
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We are continually building
our enormous library of articles, videos, diagnostic tools, help
guides and owner’s manuals. For a competitor to duplicate our library
will be time consuming and costly. Failure to duplicate our library
would be even more costly. In light of the traffic generated by
search engines, any competitor failing to offer a similar aid would
be at a significant disadvantage. Additionally, failure to match
us feature for feature leaves us with the advantage in satisfying
the needs of our customers.
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Our library will continue
to grow and to add new subjects to coincide with the introduction
of new product lines in our commerce division. This growth keeps
us ahead of the competition.
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Consumer recognition
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Consumer recognition
means that a person doesn’t have to hunt for a resource, they know
where to find us. We will take advantage of all opportunities for
media coverage. By effectively utilizing press releases, submitting
articles to magazines and journals, doing interviews and generating
interest in every way possible we will build consumer recognition.
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We plan to saturate the
media with our advertising and do what it takes to make our name
a household word. Once a person remembers the name of a business,
that business has an advantage over its competitors. We will make
certain people learn our name.
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Customer Nests
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Consumer loyalty cannot
be counted upon in a competitive market, but consumers are creatures
of habit and also typically take the path of least resistance. It
is easier to return to the familiar than to explore new territory.
And even though customers will explore, we will make a comfortable
nest for them to return to.
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By developing features
tailored to customer needs and maintaining a simple, familiar environment,
we will seek to keep our customers close to home. For example, once
a customer has provided their ordering information, future purchases
are streamlined. Customers don’t have to re-enter their information
as they would by visiting a competitor’s site. On-line shoppers
want the experience to be easy and we’ll do everything possible
to make it so.
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Another feature we will
employ is drawn from the "portal" concept. We will enable
the user to customize the site to their preferences and allow them
to set display features such as home/auto project calendars and
To-Do lists or possibly even weather reports and sports scores.
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Patent Protection
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Patents will be sought
on all technology we develop.
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Applications and features
may be developed, if deemed appropriate, specifically for the purpose
of locking out other companies from implementing the same features.