1.0 Executive Summary Over Power Sdn. Bhd. (OP) Is a Private Limited
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1.0 Executive Summary Over Power Sdn. Bhd. (OP) is a private limited company owned by four shareholders that innovates product that can ameliorate the standard of living of the society and provide an easier solutions to solve trifles in daily life. Our mission is to improve consumers' lifestyle by weeding out other redundant cards carried daily. Our visions are to become the most seamless and secure payment card method, to create a trend by using one unique card for multipurpose and to be the most successful company that provide creative products that is unable to replace and surpass. However, our company aims fulfill the needs of consumers in domestic and then expand globally together with our strong management team. But firstly, we had done an analysis based on the payment card industry. Through the PEST analysis, we had noticed that the political in Malaysia is stable. Thus, we had done research about the rules and regulations, such as IFSA 2013 that needed to be followed while entering to this industry. Hence, there is an expectation on economic growth in Malaysia due to the increase of consumer spending. Besides, unemployment rate is controlled and Malaysia has overcame from inflation. Next, merging trends, time scarcities and safety precaution shave caused consumers to pursue the use of payment cards. In addition, technology such as card reader system, internet and AFC have revolutionized payment methods. Thus, more and more people adopt payment cards. Therefore, payment card industry is believed to be accessible and profitable. OP Card targets on those who seek for a more convenient life. Thus, market selection can divide into teenagers that follow the trends, working adults with stable income and senior citizens that seek easy lifestyle. Also, buyer behavior of consumers nowadays tend to use more on credit and debit card rather than bring a handful of cash for shopping as it is more secure. OP has three major competitors which are MYPass, Plastc Card and Wocket. Based on the competitive analysis grid, OP gains competitiveness in product features, price, branding, packaging, functionality and customizability. Hence, our branding might discourage OP to compete in the market as OP is a newbie brand in the market. The first product which is Omnipotent Card (OP Card) will be launched in Malaysia with the collaboration of our key partners, which contains bank institutions, public transports and other franchisers. OP Card is a card that combines the functions of all types of card. Hence, OP Card is 37 a user-friendly card that can be used in stores together with our OP Device, which will be placed in the stores. Using value-based pricing method and different pricing strategies, price for OP Card is allocated RM50 per unit, meanwhile the price of OP Device is RM50 paid by monthly. OP mainly promotes OP Card and OP Device through TV and social media. For distributions, OP cards will be distributed by direct selling, which is selling our products in OP offices and indirect selling, which is selling our products through bank institutions. Further, OP will also operate a counter in different regions of our cooperated banks. OP has make assumptions on pro forma financial statements of OP for the year 2015 and 2016. First and foremost, OP needs a total start-up budgets around RM373,810. Hence, the amount of OP's income which is RM19,980 is projected to be earned by 2015, whereby RM38,700 is projected to be earned by 2016. Thus, outflow of cash is expected to occur as OP is a new established company. In order to recover OP's initial investment in terms of production, OP has to reach at least 15166 units of sales. To obtain certain level of profitability, OP has to trade higher than the break-even point. In a nutshell, Over Power Sdn. Bhd. wants to create a legend of "One step, multi time". 37 2.0 Company Background 2.1 General Description of Over Power Sdn. Bhd. Our company is named Over Power Sdn. Bhd. (OP). It was established in January 2015 whereby it is operated in March 2015. The word "Overpower" means to vanquish by superior force (TheFreeDictionary, 2015), which symbolizes our company urges to monopoly the market by our intensive productions. Hence, OP concentrates in innovating a brand new multifunctional Omnipotent Card (OP Card) that will enhance the lifestyles of the society. Recently, OP had discovered the problems and difficulties of consumers to bring redundant cards in a heavy wallet. Thus, our company aims to provide this unique service to the public through this OP Card. 2.2 Ownership Structure Over Power Sdn. Bhd. is a Malaysia-based private limited company (PLC) formed under Companies Act 1965. With this ownership structure, shareholders are legally protected by law from legal liability of the company and the liabilities are limited to the capital contributed by shareholders. Meanwhile, shareholders are not burdened with the management of the business and funds needed to operate the business are easy to obtain (UiTM, 2004). Furthermore, OP is registered under the jurisdiction of Business Unit of the Companies Commission of Malaysia (CCM).OP's founders, whom are also the shareholders include Ong Shyan Jing, Cheng Hsin Hsien, Kok Shan Ying and Kung Jae Hann. Figure 2.1 Proportion of share holdings among shareholders in OP 37 Proportion of share holdings among shareholders (%) 11% Ong Shyan Jing 16% Cheng Hsin Hsien Kok Shan Ying 52% Kung Jae Hann 21% 2.3 Products and Services Our products include Omnipotent Card (OP Card) and Omnipotent Device (OP Device). OP Card is a multipurpose card that combines the functions of credit card, debit card, member car and etc. It is more convenient for people to take only one card while going out and use it for making payments, showing memberships and taking public transports. The OP Device enables OP Card to insert and access to the card information by security fingerprints on the device's screen. 2.4 Mission Statement To improve consumers' lifestyle by reducing the holding of unnecessary cards daily. 2.5 Vision To become the most seamless and secure payment card method in the world. To create a trend of carrying only one unique card for multipurpose. 37 To be the most successful company that provide creative products that is unable to replace and surpass. 2.6 Objectives In short term, OP wishes to bring positive impacts to the payment card industry and create values to the consumers by introducing and enhancing the payment system in Malaysia. Thus, OP Card is expected to become the first and the only multipurpose card that carry by everyone in Malaysia within the first 2 years. Nonetheless, OP aims to become the largest company and monopolize the payment card industry in Malaysia by gaining at least 70% of the market share within 6 years. After the saturation of OP Card in domestics, OP looks forward to expand globally to foreign countries by 2020. 2.7 The Management Team As the shareholders of OP, it is important to assign the board of directors to carry the responsibility to manage and run the business. Hence, we had elect the board of directors to assign the roles of managers and recruit our management team. Figure 2.2 Organization chart of OP 37 HD B E C h a ei ox i r m ar a e a n de rc & c du M a t nto i a g i o v fn g rD eD i r Die r c t o ie r r ce ct t o r r s 2.8 Key Partnership As our company is mainly producing the exclusive OP Card, which is a multifunctional card for individuals. Hence, OP Card will bring in cards include credit cards, debit cards, stored-value cards and membership cards. Consequently, we will need to persuade and collaborate with companies in different sectors. In bank sector, our key partnerships will be Maybank, Citibank, Public Bank, United Overseas Bank (UOB), HSBC Bank, RHB Bank and Oversea-Chinese Banking Corporation (OCBC) Bank (BankNegaraMalaysia, 2015). This collaboration enable our OP Card to use upon payment in shops. Besides, we will then cooperate with companies such as SaSa International Holdings Limited, Sakae Sushi, Jatomi Fitness, Watson, Tesco, Neway Karaoke, Starbucks and so on. Therefore, OP Card also carries membership types and criteria. Besides, we will work jointly with MyRapid to enter the public transportation sector. Accordingly, OP Card can used to access to RapidKL LRT, monorails and bus (MyRapid, 2011).For instance, a lady goes shopping mall by using OP Card to ride on a bus, purchasing goods and getting membership discounts in Watson at the same time with OP Card. Furthermore, these companies will provide users of OP Card to have the rights and obligations to install 37 different forms of cards in to OP Card. With these collaborations, we believe we can gain the market shares and get first mover advantages. On the other hand, companies that have partnerships with us will get to reduce their costs and administrative efforts as they do not need to take into concern about the cards issued out. Lastly, they might also attract new users or buyers to their companies as adopting a card becomes more easier and efficient with OP Card. 3.0 Industry Analysis 3.1 Description of the payment card industry The products and services that our company provides are going to compete in the payment card industry in Malaysia. The structure of payment card industry is concentrated industry, which is 37 industry dominated by a few large firms that shape its direction and evolution (Business Dictionary, 2015).