ENT300

FUNDAMENTALS OF ENTREPRENEURSHIP
BUSINESS OPPORTUNITY
IFZA MECHTECH
“IFZAFOLD”
FACULTY OF MECHANICAL ENGINEERING

PREPARED BY
AIMI NABILA BINTI DAUD (2017227984)
MUHAMMAD AMIRUL FIESAL BIN YUSOF (2017228536)
ILYASA’ HAKIM BIN FAUZI (2017227986)
MUHAMMAD ZIKRY AIZAT BIN MOHARAM (2017253576)
J4EM1105F

PREPARED FOR
EN. AHMAD NUR MISUARI BIN IBRAHIM

SUBMISSION DATE
24th OCTOBER 2019
 CONTENTS
1.0 EXECUTIVE SUMMARY .....................................................................................................1

2.0 IDENTIFICATION, EVALUATION & SELECTING BUSINESS OPPORTUNITY .....2

2.1 Customer Segment ...........................................................................................................2

2.2 Value Proposition .............................................................................................................3

2.3 Channels ............................................................................................................................4

2.4 Customer Relationship.....................................................................................................5

2.5 Revenue Streams ..............................................................................................................7

2.6 Key Resources ...................................................................................................................8

2.7 Key Activities ....................................................................................................................8

2.8 Key Partners .....................................................................................................................9

2.9 Cost Structure .................................................................................................................10

3.0 BUSINESS MODEL CANVA ...............................................................................................11

4.0 CONCLUSION ......................................................................................................................12

5.0 REFERENCE .........................................................................................................................13

1.0 EXECUTIVE SUMMARY

Clothes folding is one of the basic house chores that we should have done every time laundry
process has been completed. However, due to time constraint, lots of people are unable to do
their chores causing the clothes to pile up in the basket. Folding clothes is really important as
it can train our self to be more discipline. This is because folding clothes take so much times
to finish especially when it is piled up in the basket. For the person that really prioritize tidiness,
this process can really help them as it can prevent the clothes from wrinkle. Folding clothes
also can help to minimize the usage of space whether in a shop lot or in a house. For an
example, in Uniqlo, they only hang some clothes for display and the other they will fold and
keep it on a shelf or on a rack.

Doing laundry itself is never fun, but the worst part might just be all the folding that comes
after your clothes have gone through the dryer, imagine how time-consuming it can be. So, the
real question is, what if you never had to fold your laundry again?

The clothes folding machine is a device that could be used to fold clothes. By taking much of
the manual labor out of the process, the clothes folding machine can turn out those big pile of
clothes in seconds rather than hours and it would be pretty much conventional and easy to be
use for every age. This machine will be the right one for you and would not run out from your
budget.

Our product will provide the consumers with a handle. This will ease them to bring along the
mini machine anywhere as our product also is light in weight. As an example, for those who
wash and dry their clothes at self-service laundry, they can bring this machine as it is portable
so they can directly fold the clothes to avoid them from wrinkles.
2.0 IDENTIFICATION, EVALUATION & SELECTING BUSINESS OPPORTUNITY

2.1 Customer Segment

Customer segmentation is the practice of dividing a customer base into groups of

individuals that are similar in specific ways relevant to marketing. Companies employing
customer segmentation operate under the fact that every customer is different and that their
marketing efforts would be better served if they target specific, smaller groups with
messages that those consumers would find relevant and lead them to buy something.
Customer segment can be defined through demographic factors such as age, ethnicity,
profession, gender or on their psychographic factors such as spending behavior, interests
and motivations. Companies also hope to gain a deeper understanding of their customers'
preferences and needs with the idea of discovering what each segment finds most valuable
to more accurately tailor marketing materials toward that segment.

Based on the survey that has been conducted regarding to the production of the folding
clothes’ machine, majority of respondents agreed and interested with our product
especially students and housewives due to its helpful functions. With today people’s busy
lifestyle, they will choose to spend some money on a helpful machine rather than wasting
time and energy on doing their house chores.

Respondent's Professions
60

50
Number of respondent

40

30

20

10

0
Student Housewives Others
Respondent's profession type

Figure 2.1.1 Chart above shows types of respondent’s professions.

2.2 Value Proposition

To put in a simple word, a value provided or known as value proposition makes a case
why customers should put our product on top of another competitor’s product. IFZA
MECHTECH has produce a very useful portable clothes folder which named IFZAFOLD
to ease the work or chores that done by human focusing to the laundry problem.
IFZAFOLD helps students, housewives and others to fold their clothes easily and faster
compare to do it manually. The invention seems to have many advantages to humankind.

One of the advantages of the product is it is a mini machine which explains the mobility
of the product. IFZAFOLD was made from various type of lightweight material such as
PVC, plastic and many more. The specification of the product seems to be more excellent
compare to other competitors that is not portable.

Thus, the major problem of the laundry chores which is folding the clothes seems has been
solved with the invention of IFZAFOLD folder machine. The machine itself has many
special characteristics that made it stand ahead of others competitor’s product such as;
- Lightweight
- Made up from strong and firm material
- Cheap in price
- Portable and easy to carry anywhere
- Save your time
- Safe from any harmful edges for children’s safety purpose

To put more details about this product, here are some IFZAFOLD’s specification:

Weight Approximately 700g

Price RM220
Waterproof No
Dimension 15 inches
Mobility Portable ad easy to carry anywhere
2.3 Channels

IFZA MECHTECH do communicates through some medium in order to reach the all of
the customers especially our target customer that will probably have more interest in
IFZAFOLD. Through this, we can make sure that our IFZAFOLD as well as our company
name is spread widely throughout the community no matter what the age.

Below is the description that explains about our channel and medium that we used:

 Social Media

Nowadays, advertising through social media is a common and most effective way since
everyone are already expose to social media such as Twitter, Instagram and Facebook no
matter kids or adults. So, our customer pays those who made paid review through social
media in order to make sure people know about our products.

 Local Newspaper

We also come up with a strategic way by advertising our product, “IFZAFOLD” through
daily newspaper and we even give discount coupon in the newspaper to gain everyone’s
attention and a way for us to introduce our product.
  TV Ads

Our products are also been introduce to community through TV ads and TV channel such
as “GOSHOP”. Through this, people will easily know our IFZAFOLD and basically know
how our product functions.

2.4 Customer Relationship

When it comes in increasing profits, it's tempting to concentrate on making new sales or
pursuing bigger accounts. But attention to your existing customers, no matter how small
they are, is essential to keeping your business thriving. The secret to repeat business is
following up in a way that has a positive effect on the customer. Effective follow-up begins
immediately after a sale, when you call the customer to say "Thank you" and find out if he
or she is pleased with your product or service. “Research shows that just ‘satisfying’
customers isn’t enough to guarantee they’ll come back,” says Palin. “You need to go above
and beyond. That’s true whether you run a coffee shop where regulars want to feel like a
part of the family or an auto-parts company whose customers demand high quality and
responsive service.”. So, how do you exceed the expectations? Beyond this, there are
several effective ways to follow up that ensure your business is always in the customer's
mind.

2.4.1 Accessibility

To provide an excellent customer experience, our company will prepare and train
service and support team that will readily available to help if there is any problems
and malfunction that related to the product. A Microsoft survey revealed that over a
third of consumers reported that their biggest complaint with a company is not being
 able to get help from an agent when needed to. While it helps to have things like
chatbots, self-service help desks and hotline link, our team still needs to be there
when the customer has a problem. Technology can help ease some of the stress for
our customer service team, but it can never recreate the memorable experience that
a live rep can provide. This human interaction is crucial to creating a meaningful
relationship between a company and its customers.

2.4.2 Understand customers’ value

To find out what customers value, always listen to what they say and how they say
it. Then, approach will be adjusted to match their expectations. Some people will
want a lot of personal contact with our business. Others may not be interested in
getting too much attention: They just want to call you up, place an order and get on
with their day. Some will be very price-conscious while others will be looking for
all the bells and whistles.

2.4.3 Promotions and Sales

In order to maintain and encourage customers’ interest towards the product, IFZA
MECHTECH offers variety of interesting promotions and sales. Thus, these
promotions and sales allow the customer to get a better price and deals when they
buy the IFZAFOLD. For example, they will get 50% off when they buy for the
second product.
2.5 Revenue Streams

Revenue streams are the various sources from which a business earns money from the sales
of goods. The type of revenue that a business records on its account depend on what type
activities of IFZA MECHTECH carried.

Revenue streams categorize the earnings from IFZA MECHTECH generates from certain
pricing mechanisms and channels. To put it in a simple word, there are some revenue
streams that been use:

• Project revenue: Revenues are earned by one-time projects with existing or new
customers

• Recurring revenue: Earnings from ongoing payments for continuing services or

after-sale services to customers. The recurring revenue model is the model most
commonly used by business because it is predictable and it assures the company’s
source of revenue as ongoing.

• Warranty: IFZA MECHTECH has set a warranty for the customer which is 3-
years period of warranty.

• Service revenue: Revenues are generated by providing service to customers and

are calculated based on time. IFZA MECHTECH can consulting with the customers
for hours for some advice while choosing the product.

This portable clothes folder elaborates the earnings that our business gets by subtracting
the costs from the revenue generated by each of the customer segment. Revenue streams
are differentiated by differences in pricing mechanisms which is fixed list prices,
bargaining, market dependent or yield management.

• From ads: RM 1.85 M

• Other: RM 153.8 k
• From transaction: RM 658 k
2.6 Key Resources

Key resources basically is the most important assets needed in a company to make sure the
production of business model going smooth. It is a must as these things are what make our
product able to become one and can be produce without having problem that can affect our
progress of making IFZAFOLD. It can be considered as important ingredients and
components that are needed for value proposition to exist. Below are examples of our key
resources:

2.6.1 Human sources

One of our most important resources is human resource which is basically people
that will help in terms of making our IFZAFOLD to come into pieces. Here in IFZA
MECHTECH, we have a manager who will in charge of our workers in each of their
section of job to make sure the production of the product will go smooth. Basically,
communication and teamwork between the workers and higher authority needs to
be prioritized to make sure everything is perfect in progress.

2.6.2 Material

Since our company prioritize and serves a very high-quality product, we make sure
our material used are also high and excellent in quality. So, our company decided
to have different supplier that serves the best quality for each material that
IFZAFOLD’s components needed such as “HIGHTECHRON SDN BHD” and
“DAISUKI FACTORY”.

2.7 Key Activities

This part is the most important things for our company to make sure that we will fulfill our
business purposes. To make sure we will run a big profit and be successful, our company
must carry out key actions that are mainly planned by the company and we also must refer
to the existing successful company as our benchmark. We can say that key activities are
very important in organization fulfilling its value proposition, reaching our customer
segments and create long term revenue streams.

These are three categories in this part which is:

 i. Problem Solving
 Research and survey section.
 Market size.
 Target market.

ii. Production
 Testing and optimizing the tools.
 Process of making portable clothes folder.

iii. Platform/Network
 Gain new opportunity for online sales.
 Provide a set level of trust between our company and the buyer.
 Create value by facilitating exchanges between our company and partners.

2.8 Key Partners

For this segment, key partners is a business partnership when two organization form an
alliance, which may either be a really loose relationship where both organization decided
to end streak being independence and automatically form partnerships or make a special
contract which limits the two companies to their one and only relationship or partnership.

This segment refers to the network of partners and suppliers that the business goes further
with effectively. The purposes for this section are:

a) To optimize the operation cost.

b) Reduce risk and uncertainty.

Below is a brief description that will explain a little bit about this business building
block:

1. Media Companies
• Improve sales.
• Improve networking opportunities with customers and other business.
• Can reduce marketing cost.
 2. Clothes suppliers

• Improves customers satisfaction.

• Develop a collaboration between organization and supplier.

3. Courier (J&T Express, Poslaju, GDex)

• Serving our customers and partners faster.

4. Lazada and Shopee Ads

5. Packaging Services

2.9 Cost Structure

Cost will always remain a major concern not only for our business but also for all business.
This segment represents all the cost that our business can afford if it is option for a
particular business model. Business can also categorize into two extremes based on the
volume of goods produced or values driven.

Below is a brief description that will explain about this segment:

1) Employees Salary.

Employee who is paid a salary is expected to complete a whole job in return for the
salary.

2) Licensing.

Is easy to gain entry into foreign markets, allowing our company to jump boarder and
barrier.

3) Advertising

Introducing our product in the market and improve the possibility to expand our
market.

4) Research and Development

Provides a platform for creativity and innovation improve organization. It also helps
our company to have a competitive edge over other competitors.
3.0 BUSINESS MODEL CANVA
4.0 CONCLUSION

The Business Model Canvas is useful for driving the conception of new products and services
through its nine basic elements from both rational and emotional perspectives. It also allows
the teams to brainstorm insights, ideas and opinions around the product, enabling a common
understanding among the stakeholders as well as generating strong performance indicators
towards a strategic innovation.

It’s another helpful tool for the product owner to conceive a new product, service, website, e-
commerce or game. To be successful, in sustainable business practices often requires
entrepreneurship and innovation. Entrepreneurship and innovation are relevant in for-profit
and nonprofit ventures. Entrepreneurship can be viewed as recognizing change, pursuing
opportunity, taking on risk and responsibility, innovating, making better use of resources,
creating new value that is meaningful to customers, and doing it all over again and again.

Being an entrepreneur requires taking on significant responsibility and comes with significant
challenges and potential rewards. Entrepreneurship is a mind-set, an attitude; it is taking a
particular approach to doing things. The motivations for becoming an entrepreneur are diverse
and can include the potential for financial reward, the pursuit of personal values and interests,
and the interest in social change.

For innovation to be relevant for sustainable businesses, it has to be meaningful and affect a
large number of stakeholders. Successful entrepreneurship often requires creativity and
innovation in addressing a new opportunity or concern in a new way.
5.0 REFERENCE

Business Model Canvas. Wikipedia The Free Encyclopedia.

https://en.wikipedia.org/wiki/Business_Model_Canvas. (Accessed, 23rd October 2019)

Clint Fontanella, (2019). “What is Customer Relations? Everything You Need to Know”.
HubSpot. https://blog.hubspot.com/service/customer-relations (Accessed, 22nd October 2019)

De Reuver, Mark, Harry Bouwman, and Timber Haaker. (2013). "Business model
roadmapping: A practical approach to come from an existing to a desired business model".
International Journal of Innovation Management 17.01

Searle, Nicola; White, Gregor (2013). Towse, Ruth; Handke, Christian (eds.). "Business
Models". in Handbook on the Digital Creative Economy. Cheltenham, UK and Northampton,
MA, USA: Edward Elgar Publishing: 45–56.

Sparviero, Sergio (2019). "The Case for a Socially Oriented Business Model Canvas: The
Social Enterprise Model Canvas". Journal of Social Entrepreneurship. 10 (2): 232–251