We live in a world where information is the key for any businesses to succeed regardless of what industry it is in. In the decades before the internet, printed directories such as Yellow Pages has been the sole source of information for anyone looking for a product or service.
This has now begun to change drastically with online business directories emerging significantly. Search Engines such as Google and Yahoo has made information literally at the tip of our fingers and we now could have more information than we ever needed. The challenge for today’s businesses is no longer finding information but more importantly finding the right information.
It is on this backdrop that we have developed a unique business portal called MySeekit.com that aims to be the ultimate source for our customers to seek the right products from the right suppliers. We have gone against the convention of “More is Better” by focusing on only one specific industry, the Construction Industry.
Why Construction Industry? The annual Total Value of Construction Projects in Malaysia is approximately RM 80 billion of which about 70% relates to the procurement of material and resources. The industry is intricately linked to thousands of other supporting industries and suppliers of material and resources. There are currently about 64,000 registered contractors and a large proportion of the more than 500,000 SMEs in Malaysia produce products related to this industry. The industry is also the slowest to adopt Information Technology application and services and finally, we are expected to see a boom in construction as the nation gears towards 2020.
It is for these reasons that we believe that we are creating a new Blue Ocean with our portal. Our Business Model is based on a unique BPB (Business-Product-Business) Model which we believe would be far more effective for businesses to seek the right products from the right suppliers. We will highlight this in the succeeding pages of this proposal.
We believe in the principles of Long Tail theory that “Selling Less of More” by targeting smaller companies of abundant quantity is the right approach in this increasing competitive world. Our focused target market within the construction industry therefore is not the G7 companies or the multinational manufacturing companies. In most cases, the actual construction works are done by the smaller contractors and they typically buy from the smaller traders and suppliers. These companies make up most of the Long Tail companies and would be our target customers. Our revenue model is based on this concept of “Selling Less of More” and therefore our subscription fees would be very affordable to small businesses. We confess that our business proposal and portal is not a technology breakthrough nor does it utilize the most sophisticated technology available. However, we understand the industry and have catered the functions and features of the portal to suit its needs. We strongly believe in the commercialization potential of this portal and its sustainability as a business entity.
The main challenges that we would face in this business venture is creating market awareness and educating construction personnel to utilize Web Technology. We are critically aware that adoption of IT application within the industry is at an infancy stage and there remains much resistance from all quarters. This scenario is partially due to the fact that there are very few IT applications that are catered specifically to the needs and requirements of the construction industry.
We therefore require CIP500 to assist us. In order for us to succeed, the initial barrier of market awareness and acceptance must be overcome and this would require substantial resources and financial backing. We have outlined a detailed unique marketing strategy that we hope would spark the interest of our potential clients but we are aware that this would take time and persistence. We hope that the funding from CIP500 would allow us to brave through this initial barrier without having to be held down due to financial constraints.
If we are able to overcome this barrier we believe that the portal will significantly alter the way construction builders and suppliers do business and move the entire industry towards more IT adoption. Our success would also mean success for the industry and indirectly the nation.
We would be most grateful if given the opportunity to present our proposal and demonstration in person and share with you our passion for this
BACKGROUND AND PROBLEM STATEMENT
The Malaysian Construction Industry
The Construction Supply Chain
History of Business Directory
The Online Business Directory
The Problem of Existing Directories
STRATEGY & IMPLEMENTATION SUMMARY
7 Key Benefits to Contractors / Buyers
7 Key Benefits to Suppliers
THE BUSINESS MODEL
SALES AND MARKETING STRATEGY
Marketing Penetration Strategy
Sales Force Strategy
CONCLUSION AND SUMMARY