AuctionShipper is a start-up packaging and shipping organization that caters to online auctions such as eBay as well as offering regular shipping services to walk-in customers. AuctionShipper can be described as the convenient, affordable and environmentally sensitive service provider.
AuctionShipper has identified three keys of success that will be instrumental in its sustainable success. The first is to offer affordable packaging and shipping service. The second will be to ensure its services are as convenient as possible. It will not be a long-term customer if it isn’t the most convenient. The last thing is strict financial control.
AuctionShipper targets three segments of customers: new eBay users, advanced eBay users, and intermediate eBay users. Each group will have different compelling reasons as to why they use AuctionShipper. Recognizing the two distinct groups, they will target differently. The new eBay users are able to reach 11,216 potential users at a 15% rate. While the advanced users can reach 8,097 potential customers at a 9% rate. The last group is all customers with a growth of 7% or more and 23,221 potential clients.
AuctionShipper faces two different types of competition. There are two types of competition. The first is mom-and pop shops that offer additional shipping and packaging services. These shops often offer shipping as an additional service. Franchises are another form of competition. They focus on shipping and packing. There are many different competitors in this space and as a general rule have high priced shipping options. These service providers appeal to someone who values convenience and is willing to pay for it.
AuctionShipper is led by Jack Paacker. Jack, an experienced entrepreneur who began his first business while still in school, runs AuctionShipper. Jack will succeed in using his MBA skills and his business experience to run his own business. AuctionShipper will benefit greatly from Jack’s education and experience. AuctionShipper will achieve $185,000 in revenue for year two, rising to $285,000 for year three.
1.1 Objectives
- Be the best auction shipping company.
- Reach profitability in the first two year.
- By year three, market penetration should be 15%
1.2 Mission
AuctionShipper’s mission is to become the premier auction shipping service. This will be done by offering fair prices, timely and environmentally sound services, and maintaining 100% customer happiness.
1.3 Keys to Success
- Provide a service market-required.
- Be as convenient as possible.
- Employ strict financial controls.