Everyone know what is a model, but not everyone know what is a business model.
Today I am not going to tell you about models, but I would want to share with you some new knowledge about understanding a business, and how a business function. In short, it is the BUSINESS MODEL that is the core mechanism of the company.
In order for you to understand what is BUSINESS MODEL all about, I can refer you to this Youtube video that can give you a very brief knowledge on BUSINESS MODEL.
The most important part of the business model is the Value Proposition. This is where your company's product deliver the value in order to fill up the demand gap in the market. If your company is offering something that none other market competitor are able to offer, that is where the value stand out.
Every business looking for profit must have a viable business model, and not only that, the business model must keep on changing and adding in value in order to keep up with the evolving market. As you see, Kodak used to dominate the retailer segment in camera when everything is still using film, however, when digital camera become more advance and cheaper, Canon and Samsung had overtaken Kodak into this segment as retailer shift to digital camera for more shots without wasting films. Moreover, the ability of a digital image to be transferred from device to another device is easier, especially when the generation nowadays likes to share their photo in social media.
Whether you agree or not, a lot of things in our life are going digital. Unless you are planning to spend the rest of your lives in cave, you have to either embrace digital or face extinction - Brutal Reality.
 |
| Now that is Brutal Reality |
So for the case of Sasbadi, what is the brutal reality ???
According to the Malaysian Education Blue Print 2013 - 2025, one of the segment that the government will enhance is to leverage ICT to scale up quality learning across Malaysia.
As you can see from this excerpt taken out from the executive summary, this phase involve in providing internet access and virtual learning environment via 1BestariNet for all 10,000 schools.
Aside from that, this phase will also augment online content to share best practices starting with a video library of the best teachers delivering lessons in Science, Mathematics, Bahasa Malaysia and English language.
It also focuses in the use of ICT for distance and self paced learning to expand access to high quality teaching regardless of location or student skill level.
And to sum it all to you, I have to tell you that all these 3 important points in the Malaysia Education Blue Print will find a suitable solution from Sasbadi.
Why ?
Because Sasbadi is currently the only pioneering company that is involved in providing online e-learning platform through it's i-LearnAce online web education.
The i-LearnAce platform will not only cater for revision exercise, there are also video lesson for student to do referenced as well. What is more, Sasbadi is one of the contracted publisher for the printing of text book for schools throughout Malaysia.
And to answer you that, this could be one of the very core reason why EPF is buying and loading up Sasbadi for the future!!! Imagine how much for proprietary rights and provision of service that the government need to pay to Sasbadi when this is implemented at a massive scale ? It might not happen now, but what about the next 5 years, 10 years ?
Now coming back to the Business Model, I would like to share with you my simple thoughts of the Business Model of Sasbadi i-Learn Ace. Okay, hear me, I am refering to i-Learn Ace product only.
So what is so special in this i-Learn Ace business model ?
This capability of i-Learn Ace is that this platform is able to transfer the equivalent amount of knowledge that can be learned from the physical books - through the thin air!!! Amazing right ?
Alright, the thin air I am referring to is through the digital media. As digitalized content do not have physical appearance, hence this will eliminate all the printing cost, logistic cost, warehouse holding cost, inventory defects and damage cost, inventory theft or lost cost and etc. And I had to tell you that all this cost when added up together is a hell lots of money involved.
All the user need to access such content is
1. Internet
2. A smart device (Computer, Laptop, pads, smart phones)
3. And of course, ticket fees to access the content
Let me give you an example by comparing iLearnAce potential profit and traditional book print profit.
Let's say we are talking about a pool of 100,000 students every year.
For traditional method, the publisher need to print 100,000 books to cater for 100,000 students every year. So let's assume the total all in cost is RM 5 per book, and profit margin of RM 3, total RM 8 per book in average. So for this, the company earn RM 300,000 each year. This is perfect scenario, assume petrol no hike, electric no hike, books not printed wrongly and etc.
Now, let's put it to iLearnAce business model for 100,000 students every year.
For iLearnAce, the cost will be a 1 time development cost for the whole system. Let's assume the 1 time development cost is RM 300,000. And since there are no physical form of delivery, hence a lot of cost are saved. Now, let's assume 1 student need to pay RM 5 for the access to the content of the system, so 100,000 student will be paying RM 500,000 each year.
For the 1st year comparison, traditional method might be seeing a higher profit or RM 300,000 while the iLearnAce will derive RM 200,000 only. But for the next subsequent year, iLearnAce will be deriving RM 500,000 as there will not be a need to develop the content again. But, the traditional print method might be exposed to higher cost due to raw material and logistic cost which can impair the profit margin.
According to my knowledge, iLearnAce will only need approximate RM 350 for a 1 year access to 6 subject, which is like RM 1 a day. It is only a matter of time that once iLearnAce gain enough publicity, then the system will be able to benefit from the massive of scale usage.
For now, I had shown you the massive potential of Sasbadi, and also the reason why EPF is buying into Sasbadi without in huge chunks.
In conclusion, the Brutal Reality will strike you with regret in the next 2 years if you did not invest in Sasbadi now. Yea, no joke, just like how I had mentioned about GCB at RM 1 when cocoa price hit rock bottom!! I had teach you how a lower material price will bring benefit to GCB here and now GCB is RM 1.70. Now I am telling you how this iLearnAce business model will be bringing in big chunk of $$ to Sasbadi now!! Is up to you and in your hands now.
http://bonescythe.blogspot.my/2017/10/good-models-will-enrich-your-eyes-good.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+BonescytheStockWatch+%28Bonescythe+Stock+Watch%29
