Advisor Andrea Hershatter is the dean of the undergraduate student at the Goizueta Business School, Emory University where she teaches Entrepreneurship. She has strong experience in new venture management and will advise our company with their critical management issues. CoViTek is a company, which will allocate video vending machines across selected cities in the United States. Consumers will be able to rent videos anytime all year round. Implementation of the machines will be highly accessible to consumers, an aspect that brick and mortar stores will struggle with in respect to our competition.
The company’s unparallel technology application will allow CoViTek to function effectively and efficiently, ensuring that customers receive the best possible service and flexible payment options available in the video rental industry. CoViTek will rent videos to its target customers- the college student and urban population of the city of Atlanta. CoViTek has organized its components to provide a fully integrated solution for its customers, allowing them to interact in a completely automated environment. The interconnection of the components described below will make CoViTek the premier efficient video rental service available.
The customer can access the display screen with the swipe of his or her credit card. Navigating over an easy, customer-friendly interface, the customer is able to rent and return his favorite movies, quickly and in absolute privacy. The Video Dispenser Sizes CoViTek differentiates itself from its competitor by the uniqueness of its product. We will initially offer 1 type of video dispenser then introduce 2 more. The biggest one will be able to store 698 videotapes or 1396 DVDs or a mix of videos and DVDs.
Some other locations may need smaller machines, and in this case, there are two other types of machines available. One version of the machine stores 454 videotapes, and the smallest version stores 324 videotapes. The machine is approximately the same size as an ATM machine and has a 20 inch color screen. Available models of video dispensers The machine presented above has the 2×1 internal storage system, which means that for any space available for a videotape, two DVDs can be put. This machine could for example store 1428 DVDs or 714 videotapes. Detailed Operation.
Once the customer inserts his or her credit card and types in his or her personal code, the CoViTek will welcome the user and invite him or her to proceed through a movie search. Several time-efficient ways of conducting a movie search will be offered. The user will be allowed to browse new releases, most demanded movies, and awarded movies. The user will also be able to search by the genre of movie: suspense, action, comedy, or romance. There will also be an alphabetical listing to search by either movie titles or the starring actors’ names. Once the user has chosen a movie, he has to press select in order for the movie to be released.
A special compartment of the machine will open and release the movie. The machine will then thank the customer for using CoViTek and warn them that they have to return the videotape within a 30-day period or otherwise they will be charged a penalty fee of $80. Posted on the machine will also be a 1-800 customer service number for the customer to call to report if they receive a damaged or incorrect movie, so their account can be credited. The credit card transaction will process through the centralized automated local area network (LAN) system located in the city we are located in.
The system will run a credit check on the credit card and will secure an unbilled collateral amount of $80 for the videotape. The LAN will then identify the list of videos the customer has purchased previously and list them on the colored screen of the video machine. The system will then run Firefly (to be added one year from starting date). The customer will then be allowed to choose any of the videos the software has chosen for him from the menu. If he chooses not to go through Firefly’s process, he can then proceed to engage in a search for a different video.
Credit card slot CoViTek 20 inch screen Machine Architecture As for the construction of the machine, it is based on a well-structured and user-friendly design. A large piece of iron forms and holds together the body of the machine. There are two main parts of the body. Body 1 is for the storage of the movies, and Body 2 is for the computerized system. BASIC MODEL DESIGN AND DIMENSIONS: Body 1 contains the compartments to store the movies and is made with the same material used in the shell of the videocassettes. This avoids the damage to the videocassettes and DVDs caused by friction.
In addition, in order to have enough capacity and offer a better service, movies must be offered in every format. Moreover DVDs provide the advantage of increasing the storage capacity: 2 units of DVD can be placed in the height occupied by 1 VHS, that is to say, increasing the capacity in a progressive way by moving away from the VHS format. Body 2 contains the monitors, computers, and credit card device. Therefore, all the heat sources and possible electromagnetic emissions remain isolated from the videotapes. The computers are designed in a precise way so that there is no user confusion.
All the movies will have a barcode to track when the movie was rented and returned. Since everything is computerized and monitored, we will have access to all the user information needed, sorted by copy, title, or gender. This will allow us to compare the rental habits of our customers. We can also program our purchases and movie rotation, in a rational way in order to obtain maximum revenue. With the combination of the two different bodies, CoViTek machines provide: * The protection of the videotapes from the heat and the monitor’s radiation.
A viewing height at the perfect position for the customer. * Maximum visibility at any hour achieved by the placement of the monitor behind a dark, antireflective shade. All the monitors will be designed with a slight inclination in order to guarantee both privacy and perfect visibility throughout the day. Also, the machines will be located in a way that 100 cm are left all around the machine in order to facilitate its maintenance. The Billing Process Our pricing will be flexible depending on the amount of time the video is out.
Our standard rental time for DVDs is “midnight of the following day” for a price between $2. 50-$3. 00. Each additional day will be between $1. 50-$2. 00. Video Cassettes will be $3. 99 and if returned within 24 hours $1will be credited back. Each additional day will be $1. 99. (Based on new releases) With this unique flexible payment plan we will gain an extreme competitive advantage realizing our quest to enter the market. Profiling Technology CoViTek plans to use Firefly’s profiling technology. This technology will enable us to offer customized recommendations to our customers.
It will profile our customers according to their rental habits and give them recommendations based on what other customers with similar tastes rented. This tool will enhance our customer relationship management which is oriented toward building a long term relationship with our customers Technology CoViTek will engage in a sharing technology developed by a third-party programming team (Vstar). The site architecture and database will be fully scaleable, allowing it to effectively manage CoViTek’s growth transactions and user traffic.
CoViTek’s Chief Operating Officer will supervise the site’s construction. The company’s operating platform will use the Linux operating system, Apache servers and the Oracle 8i Enterprise Edition Database. CoViTek will create a website developed using a combination of HTML, PERL script and JAVA script. Both Linux and Apache are “open source” platforms, and both are faster and more stable than the combined Microsoft NT 4. 0/IIS 4. 0. Staffing Through the use of contacts, CoViTek will recruit talented college graduates in the fields of interactive technology and advertising.
Specifically, CoViTek will hire students on the campuses the machines are on in order to help educated the student population on usage of the machines. The CEO and COO will be in charge of putting in the new movies, and taking out unpopular ones. As we expand our facilities and operation then the students who are delegated by us will do so accordingly. We will try not to have any unutilized videotape, as we will be very flexible to market demand, and we will transfer the movie from one machine to another that has a different type of demand.
In order to implement our machines on university campuses and in urban locations, we will need to negotiate with each specific location where we would like to place the machines. University Campuses The university campuses will require us to negotiate a contract with them under which we would give them a percentage of our revenue or a fixed cost for property and phone line usage per month. The standard for a vending machine is 15%, but as our sales per machine will be significantly higher than any other type of vending machine, we will try to bring this number down to 10%.
All the universities allow the presence of vending machines but we understand that certain university regulations might forbid us to implement a machine on campus. If this is the case we will try to find a location in a nearby area easily accessible to the students. We will also try to negotiate with universities to enable our machine to accept university cards. Almost two thirds of college students in Atlanta carry a credit card while spending an average of $1,213 per month, with up to 10% of expenditures on some form of entertainment, including video rentals.