Executive Summary

Mission Statement

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.

An important advantage we have is something we call "site stickiness". What we mean by this is that once a visitor comes to our site, we have many hooks to get that person to visit us again (and again). Repeat visitations have many benefits including additional advertising sales, increased name recognition and increased product sales. We have developed and continue to develop features that our visitors find valuable. Many visitors will find one or more features of interest to them and return because of it. For example, upon finding a large library of useful information, the typical Internet user will bookmark the page; virtually ensuring repeat visits. Aside from the obvious features of product selection and our library, subtler forms of hooks include discussion groups, on-line experts, webcasts, e-mail newsletters and mini-portals. We work very hard to encourage a visitor to become a "regular".

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.

  • The Deterrent Effect

    • 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.

    • 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.

    • 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.

  • Library Contents

    • 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.

    • 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.

  • Consumer recognition

    • 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.

    • 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.

  • Customer Nests

    • 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.

    • 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.

    • 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.

  • Patent Protection

    • Patents will be sought on all technology we develop.

    • Applications and features may be developed, if deemed appropriate, specifically for the purpose of locking out other companies from implementing the same features.