Revenue models and cost base

i. Revenue Model:
Revenue model light upon the sources which will stream revenue for business.
Playcrafts revenue sources will be following:
a. Sales of product:
First and foremost revenue source is sales of product. Playcraft will generate
revenue by selling its goods both nationally and internationally and generate
revenue. Playcraft will emphasize much on international market, as its vision is to
create a world recognize angladeshi leather brand.
b. Agent commissions:
Playcraft has planned to set up agent in the preferred region who will be work as
liaison of the Playcraft. !hose agents will sell firms product under the title of
Playcraft.
c. Sales commissions:
Playcraft will place agent who will be paid by the number of sales. !he more units
the agent will sell the more commission it will generate.
d. Strategic partner:
Playcraft will go for strategic alliance and partnership with different giant and
controlling corporations of different country. "t may be #oint venture or strategic
agreement under which those companies will sell Playcrafts products. !itle of the
product will be shared by both company or as per situation re$uirement.
ii. Cost base:
%ost of establishing Playcraft is following:
&. 'stablishing own manufacturing plant.
(. )iring manager, staff and workers.
*. +etting up two mega outlet at primary stage.
,. -etting own transportation system.
.. /wning a website and design it appropriately.
0. 1ffiliation with inter2continental courier services and container line.
3. %ost of establishing agency in different country.
4. ( site registration for getting foreign buyers.
5. 6esigning e2supply chain management.
Competitive Environment
Playcraft will face a strong competitive environment both nationally and internationally.
"ts ma#or competitors are:
&. Aarong: 1arong is one of the biggest handicraft manufacturer and e7porter.
!hough its mainly selling its product through physical outlet, it uses internet for
getting foreign orders.
(. Probartana: "t is also e7porter of handicraft based in angladesh.
*. Bata: ata one of the top global company is playcrafts strong competitor both in
national market and international market.
,. Apex: 1pe7 produces fine $uality footwear and menswear will be Playcrafts
another competitor globally as 1pe7 mainly focuses on global market more.
6espite these Playcraft will face some international competitors such as -ucci,
%hanel and other leather goods manufacturer.
Supply Cain of Playcraft
+upply chain management 8+%9: is the management of the flow of goods. "t includes
the movement and storage of raw materials, work2in2process inventory, and finished
goods from point of origin to point of consumption. +upply chain of Playcraft is
described by following diagram.
Fig: +upply chain of Playcraft.
&. Procurement of ra! material: 1t the first stage of supply chain Playcraft will
procure raw leather from local supplier from different location of the country.
(. Process of ra! leater: 1t this stage raw leather will go into processing stage.
Raw leather will turn into semi2finish leather.
*. "ransforming semi#finised leater: +emi2finished leather will delivered to
manufacturing site for making leather goods and handicrafts.
,. $areousing finised goods: 1fter finishing the goods the products will be
sent to warehouse for holding temporarily.
.. Sending goods to final consumer: 1t this stage products will be sending to
outlets to sell it to final consumer in local market.
0. Sending goods to foreign buyers or Agent commission: Products produced
for foreign buyers or agent will be send to them by container line.