AuctionShipper is a start-up packaging and shipping organization that caters to online auctions such as eBay as well as offering regular shipping services to walk-in customers. AuctionShipper is a service provider that provides affordable, environmentally friendly, and convenient services.

AuctionShipper identified three key keys to its sustainability success. Its first goal is to offer a needed service. This will be achieved by offering affordable shipping and packaging services. The second will be to ensure its services are as convenient as possible. If it is not the most convenient solution, then people will not become long-term customers. The last thing is strict financial control.

AuctionShipper is designed to target three types of customer segments: new eBay users as well as more experienced eBay users. Each group will have their own compelling reasons for using AuctionShipper. They will target different groups because they recognize that these are two distinct groups. New eBay users have 11,216 possible users and a 15% annual growth rate. Advanced users, on the other hand, have 8,097 customers and a 9.9% annual growth rate. All other potential customers will make up the last group with a growth rate between 7% and 23,221 customers.

AuctionShipper has to contend with two types of competition. First, there are mom-and-pop shops that offer shipping and packaging as an extra service. These shops usually offer shipping as an added service. The second form of competition is from franchise operations that focus on packaging and shipping. There are many different competitors in this space and as a general rule have high priced shipping options. These service providers are appealing to those who value convenience and are willing to pay more.

AuctionShipper’s leader is Jack Paacker. He is a veteran entrepreneur who founded his first business in college. Jack will leverage his MBA knowledge and be able to manage his own business. AuctionShipper’s success will depend on Jack’s experience and education. AuctionShipper will generate $185,000 in revenue in year two and $285,000 the following year.

1.1 Objectives

• Turn your company into the world’s leading auction shipping provider
• Reach profitability within two years
• Get market penetration of 15% within three years.

1.2 Mission

AuctionShipper is striving to be the leading auction shipping service. This will be accomplished by providing affordable prices, prompt and environmentally-sound service and maintaining 100% customer satisfaction.

1.3 Keys to Success

• Provide a service market-required.
• Be as convenient as possible.
• Employ strict financial controls.