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Created: October , 2012 Last update: January 2014

Ivan E-mail: strivanlab@gmail.com

Cell: +1 (416) 890-0037

Skype: ishmelev

Toronto, Canada

Digital Franchise

E-commerce Strategy Directive

Digital Franchise - Platform allowing entrepreneurs

to launch their own web/mobile e-commerce stores

to sell goods supplied by Best Buy

Consumer behavior in buying goods has changed dramatically. Buyers visit stores for

“showrooming”, but purchase the same goods on-line.

Best Buy has its own web-store offering the prices matching, free home delivery and

some social features. Those initiatives are not enough to lead the e-commerce market

as the competitors offer the similar services.

To lead the e-commerce market, company has to develop unique digital strategy with

exclusive business model and low-cost infrastructure.

Case

Vision

One e-store (today)

Thousands customers

VS

Millions CUSTOMERS

Thousands of e-stores Every e-store sells goods supplied by Best Buy

Strategy

Company Supplies goods

Entrepreneurs Open their own eStore to sell

goods from Best Buy

PLATFORM SALES

Mission: Lead the eCommerce market in North America

• Minimize the store occupancy costs

• Build the digital platform everyone can use to open own eStores

• Lead the innovations in eCommerce

Bikechain Effect

Platform

CRM

ERP

BILLING

Tools

Development

kit Franchise

Supply

Warehouse

Relationship

Processes

Services

PR/Marketing Financing

Shared customer database and CRM system

Data regarding goods, price and availability

Payment and accounting system

Tool to easy design the own web or mobile e-store. Or for third party developers.

Loans and finance services For entrepreneurs

Networking, support, guarantee

Logistic, partnership, supply chain, wholesale

License, certification, training,

Branding, rewards, promotions, advertising

Storage, pick-up locations, delivery, packaging

Consulting Management, finance, strategy, marketing

other It could be unlimited number of business services

Business Model Canvas

Suppliers Logistic

Manufactures

IT platform Warehouse

Supported by e-partners

Management

Platform development and e-partners support

Export/Import

Support

Company`s partners

Company`s activities

Business dev.

Relationship

Personalized rewards, support, recommendations

Delivery (depends on partner program

and type of merchandise)

Delivered by supplier

Delivered by company

Delivered by e-partner

Delivered by mail

Pick up in the store

Pickup from e-partner

Customers

E-partners selects goods for

their e-store creating unique assortment for every market

niche

Required resources

Cost

Distribution channels

Company`s web-site

E-partner`s web-site

E-partner`s mobile app

Interactive kiosk in any store or

public place

Revenue (depends on partnership and type of merchandise)

License fees Advertising Business services Commission %

Value

Consumers ePartners

Company

• Quality support, because each eStore specializes in field of their niche

• Cheap and fast delivery, because customers can choose a local eStore

• Easy to find goods in specialized eStores rather then in one big site

• Personalized deals and rewards

• Close customer relationship

• Easy to launch own business

• Low risk with no significant investment

• Could be used as a extra-income

• Guaranteed partnership

• Advanced development tools

• Professional marketing and business support

• Flexible business model

• Fast expansion to eCommerce market

• Benefit from the first entrance in Digital Franchise business

• Low entrance and operational cost

• Risk-free business model

• Significant capitalization growth

Proof of concept (case)

Entrepreneur Profile:

Charles is a engineer with an expertise in electronics and network devices. He is a high level professional who needs an extra income.

Current activity and services:

He buys the used modem/routers and sell them through: - Personal web-site: www.charleslidstone.com - Classified sites: Craiglist, KiJiJi, e-Bay - Neighbors, colleagues and friends

He provides following services: - Installation, configuration and maintains - 24/7 availability at home, mail or deliver - Professional recommendations and help - Guarantee and repairs

E-partner case:

Company provides the Developer Kit to design his own nice e-store specializing on networking devices only. System automatically checks the availability and price. Charles keeps the most popular models at home for the fast delivery. He prepare equipment for sale. He consult company about the best products and customer`s preferences.

eCommerce Revolution

Branded eStore and app

Affiliate Program / Dropshipper

Digital Franchise

Company:

• Supply • Operations • Sales/Marketing • Customer relationship

Partner:

• Marketing

Company:

• Supply • Operations • Sales • Customer relationship

Partner:

• Operations • Sales/Marketing • Customer relationship

Company:

• Supply

Affiliate Program Vs Digital Franchise

Affiliate Program Digital Franchise

Function Advertising Sales, Support

Strategy Bring all sales to one site Split sales to many sites

Delivery By supplier By partner

Technology Partner has to design the own

web-site Cloud Platform

Partners Bloggers/Publishers Entrepreneurs

Revenue Extra sales - % commission

• Extra sales • Advertising • License fees • Finance services • Etc.