Kathmandu UNIVERSITY

Dhulikhel, Kavre

MGTS 402
Project report on:
Business Plan for Oldbooks (Group C)
(For partial fulfillment of 4th Year/ 2nd Semester in Computer Engineering)

Submitted By:
Pusendra Chaudhary (12)
Avineak Duwal (16)
Arpan Mahatra (28)
Bishal Sarangkoti (45)
Pranish Shrestha (51)

Submitted To:
Mr. Sushanta Khanal
Department of Environmental Science and Engineering

Date of submission: 28th August, 2020

 Executive Summary
Oldbooks is used books renting and selling service. People have been selling old books as the
junk in price of paper. Others have only been filling their homes with books that have been taking most
space and get eaten by lice if stored for years. It also adds with it the home delivery service for buyers and
renters. Alongside, the website and mobile application provides online user interface for easy service
provision to customers and management for company staffs.
Its first five offices will be all in Kathmandu since most readers, colleges and schools are present
in the capital city. This would also help with low transportation charges in city with high population
density of readers. The service will extend out then first to provincial capitals and then to other cities.
There are no age groups from secondary level education who don’t read or need books. It includes school
students who are getting attracted to literary works and college students who want to read but not buy new
books. Such college students need books for short term, mostly during examination. The next is graduate
novel readers or old people who spend their most time mastering the subjects and require to move to
many books one after another. People are not aware that they can save huge amount through this service
but once it come into use, big publication houses would have to update their books regularly to compete
with old books market. To reach these people, the plan is social media marketing and advertisements and
newspaper advertisements.
The initial investment is allocated to Rs.25,00,000 which will cover equity and initial expenses.
This will be covered in 6 months and then internally generated cash flow will enable business expansion.
Net sales revenue could grow over 1 million in a year.
With Oldbooks, people will develop habit of reusing the used books over and over again. The reading
behavior will be highly encouraged as people would care less on price and new versions and more on
reading materials. The company would require less initial investment, small market boundary and less
human resource with basic computing skills and bike license to contribute for the firm. So, the
entrepreneurship company has a huge potential.

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 Acknowledgement
We would like to express our deepest appreciation to all those who provided us the possibility to
complete this report. A special gratitude we give to our MGTS 402 course instructor, Mr. Sushanta
Khanal, whose contribution in stimulating suggestions and encouragement, helped us to coordinate us
project especially to get a new business idea and work on it.
Furthermore, we would also like to acknowledge with much appreciation the crucial role of the
Department of Computer Science and Engineering to include this subject in a course plan and gave
permission to use all the required equipment and necessary materials to complete our project. In addition,
we would like to thank all group members that have always been dedicated in making the project
successful at any cost.

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Table Of Contents
Executive summary.....................................................................................................................i
Acknowledgement..................................................................................................................... ii
Table of Contents......................................................................................................................iii
List of Figures........................................................................................................................... iv
List of Tables..............................................................................................................................v
1. Introduction.........................................................................................................................1
2. Mission Vision....................................................................................................................2
3. Business Model Canvas...................................................................................................... 3
4. SWOT Analysis.................................................................................................................. 4
5. PESTEL Analysis............................................................................................................... 6
6. Porter’s Five Forces Model.................................................................................................8
7. Marketing Plan .................................................................................................................12
8. Competitor Analysis ........................................................................................................ 16
9. Organization & HR Plan...................................................................................................17
10. Location & Layout............................................................................................................18
11. Conclusion........................................................................................................................ 20
12. Appendix...........................................................................................................................21
13. Reference.......................................................................................................................... 22

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List of Figures
9.2.1 Organization structure.........................................................................................................17
10.4.1 Layout for Head Office.......................................................................................................19

iv
List of Tables
3.1 Business Model Canvas for Oldbooks............................................................................3
8.1 Competitor Analysis......................................................................................................16
9.1 Salary Information.........................................................................................................17
10.2.1 Weighted Matrix for Location Determination...............................................................18

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 1. Introduction
Oldbooks is an innovative way to help customers lower their education costs by buying, selling and
renting used books. It could be achieved through the combination of e-commerce website and mobile
application. The services aim to offer used books to students at the least possible price.
Oldbooks is an interface between small scale (second hand) booksellers and customers. Instead of
keeping our inventory we would keep a live database of inventory held by our second hand sellers.
Initially we would create a database of all quality-checked books in stock and for renting and list the
available books in the website and mobile app. Oldbooks will offer a wide range of used books. This
includes just about every conceivable category including fiction, non-fiction, business, science, children's,
hobbies, collecting, and other types of books. Customers and Students who don't want to buy the book
can rent books from our website and mobile application.
Oldbooks is primarily a service based firm where old books are mostly sold and rented by interaction with
buyers and sellers available in the database registered through website and mobile application. We have
acknowledged the needs of students and the public who can’t buy the new books and would prefer to rent
or buy old books saving a lot of expenses. The books’ quality like edition and condition would be
acknowledged before the price is discussed. We will begin by having 25 employees inside the Kathmandu
valley around at least 10 educational institutes. These employees would work as one community to follow
orders of the main office. In the initial phase, a manager would be required to assign tasks to these
employees for next day delivery using a system with least transportation cost like through delivery
scooters. The products would also include packaging and branding using boxes and the company's logo.

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 2. Mission and Vision
The missions and visions of Oldbooks are:
 To be a leader in Online Reused and Renting Books Service,
 To provide books to the students across Nepal at affordable prices with easy delivery and returns,
 To replace paper garbage by reusable product and highly desired service,
 To provide online platform with highly manageable interaction, and
 To provide home delivery at no cost for buyers.

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 3. Business Model Canvas

Table 3.1: Business model canvas for Oldbooks

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 4. SWOT Analysis
Based on the conclusion obtained through project discussion, the idea was processed through SWOT
analysis to detect the organizational internal and external as well as positive and negative aspects the idea
carries with it. Following were the points derived:

4.1 Strengths (Internal and Positive):

● Use of Technology: Leveraging technology like mobile apps and web apps to form a model that can
combine the vast collection of second-hand books vendors giving us a great supplier side.
● Partnering with second-hand books vendors: Through this, we will be able to provide books at much
lower rates than fresh books. We don’t have to worry about stock for books for renting books to
customers.
● Tech-Savvy Marketing: With the use of technology at every facet of the business like mobile apps,
online/digital marketing can attract more number of student customers.
● Minimum physical assets & less overhead charges on warehouses as we connect many sellers.

4.2 Weakness (Internal and Negative):

● Evaluation of returned books: Determining quality of returned books condition for its suitability for the
next renting.
● Disposal of degraded books whose conditions won’t be suitable for renting anymore.
● Unrealized revenue: Revenue is only realized on rented books when it's returned and not soon as the
service is accepted.
● Non-standard price across a nation: Since the business is dependent on local vendors, the process will
vary across different regions of the country.
● Lack of funding for initial setup.

4.3 Opportunities (External and Positive):

● Economic condition of Nepalese students: Most of the students of Nepal come from low-medium
income group families. So, Nepal is a great marketplace for second hand books.
● Connecting readers With sellers. For example: A final year student has a text book of C++ and a first
year student wants to rent the book or buy the book. We can help them connect by our online platform
and can earn revenue.

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4.4 Threats (External and Negative):
● Cyclical nature of demand : The orders will be highest in the new Session starting every year as
students will be graduating from one class to another and will be decreasing throughout the year will give
the business cyclic nature.
● Threats of new entrants: As the entry barrier is low in this industry, it can generate threats of new
entrants.
● Unavailability of all the books in the second hand market during peak times (new session starting).
● Arrival of online books stores like Amazon books will decrease the demands as Amazon books give
huge discounts on fresh books.
● Competition with local second hand book sellers in nearby areas.
● Accessibility of substitutes like e-book, Kindle.

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 5. PESTEL Analysis
The entrepreneurship idea is in the initial stage thereby not getting affected by macro forces now that can
affect an organization in future. These could be measured by PESTEL analysis which are discussed as:

5.1 Political Factors:

● As this firm is mainly based on delivery, government’s lockdown and curfew like in covid-19 condition
and mass agitation could hamper it’s main source of revenue i.e. transportation.
● Having the high level staff related to a political party could secretly influence the decision of the firm
leading to individual’s good and party’s good before firm’s.
● Press would always look for new news and could openly violate some methods thereby influencing the
people’s trust.
● Delivering items to places with criminal identities means danger for the staff.

5.2 Economic Factors:

● There is always a danger of loans from banks, investments and time for firms to pay back those costs
with interest.
● In the initial phase, labor costs should either be high or founder and co must make labor trust on
organization’s objectives that would benefit laborers highly in future.
● The idea shouldn’t add to the unemployment rate of the nation.
● There are colleges and schools getting commission from new books suppliers.

5.3 Social Factors:

● Rich communities of places like Pokhara and Kathmandu show interest in new books.
● Illiterate localities even from urban areas never have love for reading.
● There are minorities especially old people and religious groups who would afford old books only that
no one reads except them which could show discrimination if not delivered.
● Festivals bring seasonal expectations like discount packages.

5.4 Technological Factors:

● Pirated pdfs are taking over books and people have started getting used to them already.
● Many students desire limited slides in laptops rather than whole books.
● Instance automation and human-technology interaction for orders, deliveries and rent would bring
reviews in the market.
● Technological awareness of new platforms is tedious for all at the beginning.

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5.5 Environmental Factors:
● Stored books get destroyed by termites so books should be delivered and stored even for small duration
in cleanest places.
● Still books bought would get junked into fire leading to carbon emission.
● Disasters like floods and landslides could pause deliveries.
● Packages like jute bags instead of plastics would cost more but are expected by many NGOs and even
the Nepal government for deliveries.

5.6 Legal Factors:

● Security of customers’ profiles and privacy policies are hard to expect when criminals could hire
international hackers even for a day.
● Health and safety regulations of staff should be guaranteed initially.
● Labor law won’t allow staff to do overtime which would hamper the initial stage when more works are
to be performed for establishing stable organization.
● Advertising standards and limits could slow down people’s awareness over the market with big
publications houses.

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 6. Porter’s Five Forces Model

Porter Suggested to have a close look at your rival and always understand your supplier and buyer
thoroughly to maintain your status in the market, introducing ‘Porters’ Five Forces Model’.

6.1 Competitive Rivalry: Low

Competitive rivalry tries to indicate how strong our rivals are and also to point out the difference in
service provided by our rivals and us.

What is the competition?: After a competitive analysis of our business plan, we found two companies
that had some common ideas and motives just as ours in the market. Those two companies were
Puranobooks.com and Booksmandala.com. Other competitors include the traditional book shops vendors
located at Newroad that have facilities of buying and selling old books offline.

Websites like Puranobooks.com and Booksmandala.com, even though they buy and sell second hand
books, they don’t provide books for rent. Even though customers have the substitute of buying second
hand books from other vendors there is no rental system for books. That's where our company ‘Old
books’ come in. We will collect old books from door to door of the customers and even we rent the books
to customers.

Switching Cost​ : The consumer in the market end has no switching cost for the services. One can
choose any services for buying second hand books whether it is our venture or BooksMandala or
PuranoBooks or second hand books shops of New Road or any vendors. As we will collect books from
door to door or collect books from our various books stations, this would make it easy to sell books for
books sellers to our vendors. As for consumers we will provide verified, undamaged books at low cost
that of new books . We even provide options for renting books at low cost which may help those readers
who don’t want to buy books.

Customer Loyalty​ : The quality of services we provide is different and better for both buyers and
sellers compared to other ventures. We will provide quality books and establish ourselves as a brand in
the future which will gain trust and loyalty from the consumers' end. Also, our service of renting books
will benefit those who don’t want to buy books. Though the other ventures have been providing their
services for a long time and have gained some customer loyalty, we on the other hand have the potential
to lure them to be loyal to our service.

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6.2 Supplier Power: Low

It refers to the power and control the supplier has to raise or reduce the quality product or services quality
which in turn could affect an organization's profitability. The factors affecting the suppliers power or
bargaining power of suppliers are:

Number of suppliers: ​ The fewer the number of suppliers, greater the supplier power. If suppliers are
more in number, suppliers should compromise on the selling power with competitive pricing to attract the
customers. There are only three firms providing services similar to our firm in Kathmandu, namely
Amazon (inner market through international vendors), BooksMandala and PuranoBooks. Some small
shops are also providing similar services but are limited to store only and don’t have online services. The
number of suppliers i.e. the book sellers is initially less which increases the bargaining power in the
beginning. But once the firm is well established, the suppliers have competition but our commission rate
remains intact. Ultimately, suppliers’ bargaining power decreases.

Supplier concentrations: ​ Kathmandu valley has major numbers of academic institutions. Though
being the case, there are less people who would supply books through websites in the beginning. The
supplier concentration isn't high as compared to the demands from the large number of academic
institutions. With an unsatisfied number of students, it would be difficult to win their trust at first. So the
bargaining power is high in this context which means commission is relatively less in the beginning. This
could change in less than two years

Switching cost: ​ Our firm doesn't have a huge membership cost in the beginning for services of only
selling books. It's free to browse applications and websites and get the only service needed. If a user is
unsatisfied with our service, there is no loss for him/her to switch to other services. Puranobooks is
providing similar service without any membership payment but is too limited in delivery services. So, the
switching cost is low, which decreases the bargaining power of suppliers.

Available substitute: Puranobooks and Booksmandala provide identical services. One can choose among
any of the services providers. Other substitutes such as Hamrobazar and Amazon provide similar services
which increase bargaining power.

Strength of distribution channels: ​ Old books services are provided through an app, website and
through some stalls and shops near educational institutes. Website and app is easily accessible as long as
one has internet and even for those without internet, the stalls and shops will provide excellent services.

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The strength of distribution channels of other companies is not that high which decreases the bargaining
power of suppliers.

Uniqueness of supplier product: Old books provide services like renting books while sharing the profit
with the original book owner. This service is unique to any similar competitors in the market. It will
attract a lot of suppliers who are looking to rent a book for a limited time. Other than that the stalls are not
common either. The two services are unique and it decreases the suppliers’ bargaining power.

6.3 Buyer Power: Low

The power of customers from choosing between competitors to using study of services provided by
competitors to lower prices of the company they depend upon comes under buyer power. The ultimate
goal of considering buyer’s power is getting best loyalty from customers.

Number of customers: Books are part of everyday lives mostly for students from Kathmandu valley,
university students, students from remote areas that couldn’t afford non-updated new editions of
publications. Novels and inspirational books are desired by both youths and old citizens in search of busy
routine. Ordering books online would initially be a difficult task with limited manpower but it is still
approximated to be 50 customers per day from one institute area. With 5 staffs’ residences in 5 similar
institutes around Kathmandu valley, it could be around 250 customers per day.

Size of each order: The firm has its target not only to sell but rent books. The average price of a new
book is Rs.500 from novels to courses. Old books might cost Rs. 300 per book for buyers. Customers buy
books in bundles i.e. 2 books on average per order. At the same time renting books is mostly not in the
bundle for novels. But renting books for courses occurs in the number of 5 on average.

Difference between competitors: While Puranobooks has limited services and less handy website, we
are planning to have an mobile application and 5 staffs in 5 locations initially. Booksmandala is only a
competition for online services. With the renting system, we have advantage over book firms.

Price sensitivity: ​ Surely, customers are price sensitive when they buy from regular book stationaries.
However, ordering books online with mutual understanding between book sellers and book buyers means
this won’t be a problem for the firm. We work on commission of deals established.

Ability to substitute: It is always known that books could not be replaced unless traditional
examinations are replaced by practical approaches. For researchers and novel readers, books are interests.
There are illegal printing of course pages from books and using pirated pdfs rather than books. Thus,

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buyers could substitute the firm services in the wrong way. Still, recent data and we, as our experience
know that pdf and slides reading aren’t feasible methods for people. Thus, the firm would always have an
edge over pirated methods.

Cost of changing: There is no cost of getting substituted to new methods. Customers would get back
their initial security deposit of Rs. 1000, the price upto which they could rent books and not return. They
could lose money if they don’t return rent books or pay a price for damaged ones. However, they could
easily realize that other methods are expensive for a long term basis.

6.4 Threat of Substitution: Low

A substitute product is one that may offer the same or similar benefits to a company as a product from
another industry. The threat of a substitute is the level of risk that a company faces from replacement by
its substitutes.

Substitute Performance: The direct substitute to our venture would again be the online platforms like
Puranobooks and Booksmandala which are online platforms to buy and sell books. After analysing the
potential competitors, we found these two services don't have a user friendly interface and work in a buy
and sell model. In contrast our product works in buy, sell and rent model. The physical old books store
can be the other potential substitutes to our product, but since they are not online and lack delivery service,
there is little or no chance that customers will switch over.

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 7. Marketing Plan
7.1 Marketing Objectives
The firm ‘Oldbooks’ is a unique motivation in the marketing sector. The idea would be initially hard for
consumers to get used to. So, the group has come up with some of objectives to catch:
1. Sell books or rent books of at least Rs. 180,00,000 in first 6 months and achieve the revenue of at
least 20% in the first year.
2. Have a sales growth of 20% in second year.
3. Earn the brand loyalty of 50% of consumers in a year.
4. Attend the profit of 100% in 4 years.
5. Have employees in colleges and schools in 77 districts within 5 years.

7.2 Marketing Mix

Product/Service
Oldbooks is primarily a service based firm where old books are mostly sold and rented by interaction with
buyers and sellers available in the database registered through website and mobile application. We have
acknowledged the needs of students and the public who can’t buy the new books and would prefer to rent
or buy old books saving a lot of expenses. The books’ quality like edition and wear and tear would be
acknowledged before the price is discussed. We will begin by having 5 employees inside the Kathmandu
valley around 5 colleges and 5 schools. These employees would work as one community to follow orders
of the main office. In the initial phase, a manager would be required to assign tasks to these employees for
next day delivery using a system with least transportation cost through delivery scooters. The products
would also include packaging and branding using boxes and the company's logo.

Place
Oldbooks’ products and services would be distributed first only in nearby locations of Kathmandu with
many schools and colleges. The 5 office heads will handle 5 sections: Himalayan Whitehouse School and
Pentagon Schools and Colleges,VS Niketan School and College at Tinkune , CCRC, Kanjirowa, NCIT,
Kathford and KUSOM at Balkumari, Liverpool International College, KMC School and Nobel Academy
at Baneshwor, Prasadi Academy, St. Xavier’s School and United Academy in Jawalakhel and Trinity,
KMC and Padma Kanya in Putalisadak. One room will be rented as offices in Tinkune, Balkumari,
Baneshwor, Jawalakhel and Putalisadak with head office in Baneshwor area.

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Price
Capital of Rs. 25,00,000 will be required for establishing the company. Our monthly cost involves Rs.
6,00,000 of manpower cost and Rs. 40,000 of office rent charges for all 5 locations. Rs. 12,500 of total
internet and Rs. 22,500 for web hosting per month. Rs. 2,50,000 office expenses and Rs. 1,25,000
miscellaneous expenses is also separated. These all tend to total of Rs. 10,50,000 expenses for the first
month. Our revenue scheme tends to Rs. 15,00,000 per month which means we could have our
investment covered within 6 months.

Promotion
We have decided to go for following promotion techniques:

Advertisement:
Using Guerilla technique, we have considered using mascot “books-bajhe” for seasonal advertisement
mostly during exams. Next one is the books bin titled “books-malai” that takes old books mostly in the
streets and during book festivals like in Ratnapark.

Digital Marketing:
Running the page on facebook and instagram will help viewers to get associated with books that are old
yet need to be read. We could also publish videos on youtube about stories of writers and how books and
literary rate has changed the nation. During nearby exam seasons, we could also post stories related to
available course books with prices that beat others in the market. Once the firm gets going,
advertisements could be posted along the social media sites and in cooperation with other education
related organizations.

Sales Promotion:
On sales promotion, we will lower our books price when the sales increase. As we will progress towards
profit, we will organize our own programs which will invite people to attend just for even lower price
books than usual. Our longest connected customers will also get a books free of their choice of Rs. 1000.

Personal Selling:
We will have our stalls on various book fairs in Ratnapark and in colleges. Also, we will have our staffs
visit various rural sites for books distribution at a much lower price during exam seasons and during new
admission days.

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7.3 Market Segment

7.3.1 Demographic

1. Age: Oldbooks is feasible to age group of people from 15-60 because most of the people in this
group are capable of reading books whereas the rest of the age group are children and adults
might find it somewhat difficult in the beginning. The age group is capable of understanding the
technology and using it effectively. The Old books application and website has an easy and
simple interface. This is why even children and elderly people are expected to use it quite easily.
2. Income: All middle class family and low class family of income less than Rs. 30,000 per month
who can’t afford to buy new books.
3. Location: Initially, it is targeted for Kathmandu Valley but it could be extended later on with
profit. The next targets could be other municipalities and urban places only to end up in rural
areas.
4. Education: Students from grade 8 to graduation have to be among book readers.

7.3.2 Psychographic

1. Personality traits: Literary people, young people with progressive mentality, introverts who like
to read books rather than spending time on social media.
2. Values: Most of our customers will have economical values .They can buy two or more books on
the same price of a new book.
3. Attitudes: Reading behaviour is highly important for our customers. And, they must maintain the
mentality that new books don't bring better grades than old ones.
4. Subconscious and conscious beliefs: Many people, especially school children and old men start
their days by reading books early in the morning since they have retired and life without jobs and
only to share and gain knowledge.

7.3.3 Behavioural
1. Purchasing habits: People who buy new books whether it is for academics or buy novels are
likely to use our services because they can buy or rent two or more books with the same price of

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 buying a new book. Those people who don’t like to go to book shops can buy online using
services like esewa, khalti on our website.
2. User status: Middle-class and lower-middle class people with low income.

7.3.4 Geographic

1. City: Oldbooks is feasible in the city where there are more education institutions available.
Though educational institutions are available all over the country, rural areas don’t offer such
markets like municipalities.
2. Radius around a certain location: Most likely to be used in the city area and around the city area
where there are many educational institutions . Like if Tinkune is the city area there are many
educational institutions such as Whitehouse, Pentagon,VS-Niketan, Florida colleges,etc
3. Urban or rural:Urban area is the targeted spot for using Old books rather than rural areas because
there is less education of technology among people in rural areas and also most of the students
from rural areas come to urban areas for their higher studies.

7.4 Customer Profile

We are trying to deliver second hand books at customers' doorsteps that aims to address the problems of
middle class families who are not able to buy new books and save the transportation charge of customers
to go to the book shops by delivering books at their doorsteps. The students who belong to middle class
family and those who don’t want to buy new books are our Best Customers.The spread of Coivd19 is
increasing day by day and due to the less labour in books factories we can extend our business of old
books as their will not be many books available in the market.Those who want more books on the same
price of new books or those who want to rent books instead of buying the books are our normal
customers . Our normal customer would be from City areas, who are familiar with growing technology
and those who come from rural areas to urban areas for higher education. They basically range from age
group 15 - 60 years. But because the transaction with old books is easy, elderly as well as adults can also
be comfortable with this technology.

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8. Competitor Analysis
Factors Puranobooks Amazon Booksmandala

Location Currently in Pokhara Worldwide but Currently in major cities

currently not in Nepal of Nepal
Availability Book Available only if Book Available only if Book Available only if
present in Puranobooks present in Amazon present in Booksmandala
inventory. sellers inventory. inventory.
Target group Main Focuses on Targets a wide variety Targets the students and
academic books ranging of people ranging from people of Pokhara.
from primary level upto preschool student to
master level. master level students,
literature fan to
fictional fan,
technological to sci-fi
books.

User Experience & Not very intuitive & no Responsive, easy check Not user Friendly,
Delivery delivery out and delivers Responsive website and
everywhere delivers on major cities
Ordering (Searching Offer Cash On Delivery Offers Cash On Offers Cash On Delivery
and Placing Orders) Delivery and Online and Online Payment Mode
Payment Mode
Price Every book is sold at Price of books varies Every books have
40% to 60% of its from the publications, different selling price. The
original price. Books availability, condition, price of the book ranges
prices varies depending format and region. from RS 100 TO RS
on the conditions of the 10,000.
books.

Service Type Single point Buy and Buy Sell and Rent Used Single point Buy and Sell
Sell books Books books
Return Policy No Return Policy We offer 7 days return Return if books is
policy damaged/incorrect.

Feedback There is an unused form There is an option to feedback form provided

to provide feedback provide feedback
rating on each book ratings the book in
every book page.

Table 8.1: Competitor Analysis

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 9. Organization and HR Plan

9.1 Company Ownership

Old books is a product based company which will be started on a partnership of 5 persons. The co-
founders of the company are:
1. Arpan Mahatra: Chief Executive Officer
2. Pusendra Chaudhary: Chief Operating Officer
3. Bishal Sarangkoti: Head of Delivery Department
4. Avineak Duwal: Head of Marketing Department
5. Pranish Shrestha: Head of Technical Department

9.2 Organizational Structure

Figure 9.2.1: Organization Structure

9.3 Salary Information

Human Resource Salary

CEO Rs. 50,000/ month
COO Rs. 30,000/ month
MD, DD and TD Rs. 20,000/ month
Table 9.3.1: Salary Information

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 10. Location and Layout

10.1 City Selection For Oldbooks:

We have selected Kathmandu for our business due to the following reasons:
1. Population Trends
As most of the students from different provinces come to Kathmandu valley for higher studies and most
of those who came to pursue their higher studies in Kathmandu are from middle class family background .
So Kathmandu is the education hub of Nepal so Kathmandu will be perfect city to start our business.
2. Competition
There are some of the websites and some second hand books shops and most of the students are not aware
about this kinds of book shop and websites it will be easy for us to capture the second hand market in
Kathmandu.
3. Compatibility with community
Most of the people of Kathmandu valley are literate so they will support us by renting or selling their used
books to us.
4.Transportation Networks
As Kathmandu is the capital city of Nepal, Roads are well maintained so, the delivery boy of our
company can easily deliver books to the customer.
10.2 Head Office and Inventory Locations:

S.N Factors Weigh Baneshwor Balkumari Tinkune Putalisadak Jawalakhel

t
(W) Rating (R) Score Rating Score Rating Score Rating Score Rating Score
(W * R) (R) (W * R) (R) (W * R) (R) (W * R) (R) (W * R)

1. School Density 5 5 25 4 20 4 20 4 20 4 20

2. Avg. time per trip 3 3 9 4 12 3 9 3 9 3 9

3. Cost for Space 4 3 12 3 12 3 12 3 12 3 12

4. Existing competitors 3 3 9 3 9 3 9 3 9 3 9

5. Employee Preferences 1 5 5 3 3 3 3 3 3 4 4

Total 60 56 53 53 54

Table 10.2.1: Weighted Matrix for Location Determination

Based on some study and research we decided Baneshwor as our head office location. Baneshwor would
provide center to other offices and with higher students, schools and colleges density at Baneshwor, it
would mean low transportation cost for most transactions. Baneshwor’s head office don’t need to be on

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roadway. Instead, we have discussed to choose subway houses with low rent and most focus on storage as
our head office.
10.3 Service and Delivery centers For Old Books inside Kathmandu:
Based on weighted table matrix We have selected Balkumari, Tinkune, Putalisadak, Jawalakhel for
service and delivery locations as these locations also have good ratings.
10.4 Layout of Office for Old Books

Figure 10.4.1: Layout for head office

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 11. Conclusion
The rental, buying, selling and home delivery services that Oldbooks provide and commission the
business has decided to take as a revenue is newer yet positive approach that is highly required in Nepal.
Through business model canvas, the main takeaways were nearly all literate people as customers from
secondary education to old age, recommendation system on website and mobile application, discount
packages, colleges as partners, 5 offices on initial stage, initial investment of Rs. 25,00,000 and monthly
revenue of Rs. 15,00,000.
Major strength was minimum physical assets required. Weaknesses would be initial setup funding hard to
cover and price determination of books. Low economic status of many Nepalese students has been an
opportunity for such firm. Unavailability of books during peak time and introduction of other similar
companies including Amazon could be big threat. Similarly, factors to influence business plan include
strikes and curfews, high cost initially to cover, discounts expected, presentation based teaching-learning
system for students, natural calamities and staffs problems.
Puranobooks, Amazon and Booksmandala were taken as competitors and it seems Oldbooks could easily
compete at initial stage with Puranobooks based only in Pokhara and Booksmandala with no renting
feature. Amazon is yet to find market in Nepal.
There is low competitive rivalry since not many similar companies are there and none with zero cost of
delivery, low supplier power because of few substitutes, low buyers power because though there are less
customers, books bought or rented is high per person, low threat of substitution because very less firms
allow rental and home delivery and finally only a moderate threat of new entry.
In the beginning, 1 CEO and 4 COOs are expected to work with 4 staffs under each. CEO also has to
perform COO’s task in the beginning. The best location was found to be Kathmandu in Province 3 highly
due to students’ density and quality of staffs available.
Thus, with all above positive and negative aspects, Oldbooks has great chance starting in market of
capital city, deducing burden among readers to pay for new and expensive books and finally with
uniqueness and small investment, establishing it as emerging business plan if taken into account.

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 12. Appendix
Appendix I, Monthly Budget Plan

Our initial investment is Rs. 25,00,000 and and the monthly estimated cost is :

SN Factors Price Quantity Net Price

1 Staffs 20,000 20 400000
2 Office Heads 30,000 5 150000
3 Manager 50,000 1 50,000
4 Storage Rent 6,000 4 24,000
5 Head Office 16,000 1 16,000
6 Internet 2,500 5 12,500
7 Hosting 22,500 1 22,500
8 Office Expenses 50,000 5 2,50,000
9 Miscellaneous Expenses 25,000 5 1,25,000
1,050,000

Our total revenue generated as:

We have five different branches at different places inside Kathmandu valley. Let suppose In a day at any
branch average of 50 people buy books from us and from each people we save Rs.200. Then for five
branches we have 250 transactions daily to buy books from us and we save Rs. 200 each from them then
we have total revenue in a month is :
We have total of 7500 transactions happened in a month and we save Rs.200 each from them then total
revenue is
7500*200 = Rs.1500000. Monthly revenue is:

SN Factors Price Quantity Net Price

1 Transactions 200 7500 1500000

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 13. References

1. Jim Chappelow,”Porter’s 5 Forces”:

https://www.investopedia.com/terms/p/porter.asp

2. Mitchell Grant,“Strength,Weakness,Opportunity and Thread(SWOT) Analysis”:

https://www.investopedia.com/terms/s/swot.asp

3. “What is PESTLE Analysis? A Tool for Business Analysis”:

https://pestleanalysis.com/what-is-pestle-analysis/

4. “Business model canvas:

https://www.businessmodelsinc.com/about-bmi/tools/business-model-canvas/

5. Brian Tracy,“The 7 Ps of Marketing”:

https://www.entrepreneur.com/article/70824

6. “The Four Types of Market Segmentation”:

https://blog.alexa.com/types-of-market-segmentation/

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