Summer Special Semester 2021-22

Lean Startup Management (MGT1022)

Final Report

RENTRONIX

Submitted by
Vamsi Krishna Palepu (19BEC0841)
Abhiram Sreekantham (19BCE2294)
Varun Chowdary Atluri (19BEC0832)

Under the Guidance of

Dr. SIVAPRASAD DARLA
 ACKNOWLEDGEMENTS
This is to declare that the project entitled “RENTRONIX” is an original work
done by the undersigned, in partial fulfillment of the requirements for the degree
“Bachelor of Technology in Computer Science and Engineering” at the School of
Computer Science and Engineering, VIT, Vellore as part of the course Lean Startup
Management (MGT1022).

All the requirements, analysis, and design have been accomplished by the
undersigned. Moreover, this project has not been submitted to any other college or
university.
 TABLE OF CONTENTS
S.No TITLE Page No.
1. Introduction 4

1.1 About the Company 4

1.2 Logo 4

1.3 Business Type 4

1.4 Motivation 5

1.5 Location 5

1.6 Technologies Used 5

1.7 Vision and Mission 5

2. Background 5

3. Business Model Canvas 8

3.1 Market Size 9

3.2 Cost Structure 12

3.3 Revenue Streams 15

3.4 Value Chain 17

3.5 Customer Segment 21

3.6 Customer Channel 22

3.7 Customer Relationship 24

3.8 Key Resources 24

3.9 Key activities 26

 4. Legalities, Company Registration, Financials And Human Resource 28

4.1 Registering the Company or Start-up 28

4.2 Eligibility for Start-up 30

4.3 Hiring Policy and Methods 30

4.4 Financial & Tax Regulations 31

5. Results and Discussion 33

6. Conclusion 43

7. References 43

1. Introduction
1.1 About the Company
Rentronix is a start-up that offers productivity devices such as laptops and desktops as rental
devices for cheap prices along with hassle-free browsing of available devices along with
performance details and delivery and pickup for hourly, daily, or monthly plans priced affordably
based on the performance of the device rented. This allows the customer to temporarily have a
device according to their needs without actually owning a product. For instance, during these
pandemic times, it is necessary to have a laptop or desktop for many activities which previously
didn’t require any need for laptop-like schools for online classes, employees who work on
company systems, etc. It is also helpful for people who travel frequently and also for general
customers as using our solutions helps them to not bother about upgrading the device within a few
years or technical support for devices.

1.2 LOGO:

1.3 Business Type:

The start-up will be a Limited Liability Company and the members will share the profit based on
their investment. LLC was chosen since it is more flexible for private companies as compared to
being a partnership or a corporation. Also, this type of business separates the liabilities of the
members and the company. It also protects the members from any kinds of fraudulent acts done
by the employees and company debts. The objective is to hold only the company accountable in
case the members are found not to have participated in the act. LLCs also have an advantage in
paying taxes on profits as the profits and losses are passed through to members, which are their
reporting on individual tax returns instead of paying taxes as a whole company.
1.4 Motivation:
There are countless people who are unable to afford to pay the full price of devices. And as
electronics change rapidly over the years, many people find it too expensive to upgrade to newer
devices to meet their needs as this method is way too expensive than renting a device according to
needs. Electronic devices like cameras can also be seen for rent due to similar reasons. E-waste
has become a threat to the environment. With laptops becoming less upgradable and repairable it
is necessary to reduce the number of devices. Multiple people using a single device can contribute
to this.

1.5 Location:
The business will be located close to prime areas of a city which are also accessible from remote
locations. This is to make it easier for customers who opt for in-store pickup and to make delivery
easier. This location will house the necessary computer hardware and employees to verify the
devices being received or delivered. Future points of contact for customers will be based on
demand in particular areas.

1.6 Technologies Used:

The business will make use of a customer-focused web application in order to make it easier for
customers to view the available devices which meet their requirements. Customers will be able to
know the performance level of each device with the help of industry-standard benchmarks listed
for every device. Hardware and Software Monitor applications will be used to test devices each
time when it is delivered or received to maintain the condition of the devices and improve their
usable time period. Also, the state of the system will be registered along with the serial number for
parts in the employee-side application to safeguard the components and combat mischievous
behavior.

1.7 Vision and Mission:

Rentronix aims to make productivity devices such as laptops, desktops, etc. cheap and accessible
to everyone. By making use of these devices for multiple years and several different users,
Rentronix hopes to reduce e-waste due from used devices. Also by repairing and making use of
older devices that would have been disposed of otherwise, rentronix aspires to improve reusability.
It can be summarized that Rentronix wishes to reduce and reuse devices.
2. Background:
The global pandemic has drastically raised the need for computing devices either mobile devices
or desktops. However, there is a global silicon shortage which has affected not only mobiles and
laptops but also other industries that depend upon microprocessors. This has not only created a
supply shortage but also increased the prices of processors which are a core component of
computing devices, which led to increasing prices of laptops and personal computers, and owning
a system that suits customer’s needs became more difficult due to the prices and also the
availability.

The time taken to produce processors are high and range from three months to six months. This
made it difficult for the processor manufacturers to keep up with the demand even if they have
increased their production like never before. While the prices have reached an all-time high there
is also a shortage of supply. The demand for devices has increased drastically. This can be seen in
the YoY increase in the shipments of laptops which have increased by over 70% from 2020 to
2021.
It is also to be noted that in India, the majority of the devices with access to the internet are mobile
phones. However, mobile phones alone are not enough for every task. Writing documents, doing
projects, programming, designing, content creation, etc. requires laptops or desktops. While the
majority of the people have mobile devices and can handle tasks like online meetings, more work-
heavy tasks require laptops or desktops.
These tasks might not be done on a regular basis or might be done less frequently compared to
online meetings. It might not be feasible for a person to invest in a device that they would use
sparingly and lower-priced devices might not be good enough. There are also chances of device
failure and the user is in need of a device until it is repaired.

3. Business Model Canvas

3.1 Market Size
Market Size for Electronic Rentals

Electronics rental are hired appliances with a base of the agreement for temporary use. There is a
monthly or weekly rental amount deposited to the service provider coupled with a refundable
security amount in the initial stage. Products categorized within the electronic rental market are of
various types and are used in residential and commercial areas. These devices are rented on a
certain tenure within which the rent is paid periodically. The appliances seem to be subjected to
maintenance and must be returned to the service providers in good working order at the end of the
term to get a complete refund of the security deposit.

The rented devices are mostly used in urban areas as the rate of migration of people and students
is very high. Most of the migrated population opts for rented electronics as they are more affordable
and feasible. People can rent these electronics for a fixed period of time which gives them the
option of returning the appliances after the period is over. This is estimated to escalate the demand
for rental electronics across the globe in the future. Low maintenance and service costs and an
increasing number of people residing out of their hometowns are some of the factors which are
bolstering the growth of the global electronic rental market over the forecast period. Increasing
convenience and flexibility provided by the rental appliances companies, and a higher focus on
value experience are some of the factors which are fueling the growth of the global appliances
rental market over the forecast period. The market size of global appliances rental was valued at
USD 4,269.7 Million in 2018 and is expected to cross USD 8,219.0 Million by the end of 2025 by
growing at a CAGR of 9.87% over the forecast period i.e. 2018-2025.

India's asset-acquiring habits now have a new parameter— renting. To understand the expanse of
India's rental economy, formally known as the sharing economy, consider this: The market for
electronic device rentals is estimated to be worth $ 500 million, while the market for bicycle rentals
is estimated to be worth $ 300 million. The total of these markets is roughly $ 800
Million, close to five percent of India's total market cap.

The boom in this industry may also be gauged from the fact that in the last three years, close to
100 online rental service providers have come up that cater to varied demands across computing
devices like laptops, tablets, professional workstations, gaming equipment, VR, and AR-related
equipment for all categories of customers.

Market Size for Electronic Rentals in India over the years

Global Market Size for Laptops

Now coming to the market size and demand for laptops alone, The global laptop market size was
valued at USD 101.67 billion in 2017. During the forecast period, it is expected to grow at a CAGR
of 0.4 percent. In terms of volume, the market is anticipated to register a CAGR of 1.0% during
the same period. Growing internet penetration, rising disposable incomes, swelling global
population, and increasing awareness among consumers about the emergence of novel
technologies are among the primary growth stimulants for the market.

A growing number of users want cross-functional gadgets that include many functions and
capabilities in one device. As a result, the development of multipurpose gadgets has accelerated.
Laptops may be used for a wide range of purposes, including business, education, and pleasure.
Furthermore, the market is expected to benefit from increasing investments, the availability of low-
cost devices owing to mass production, and a wide range of applications.

The market is characterized by intense competition with the presence of several giants including
Dell; HP Development Company, L.P., ASUSTeK Computer Inc.; Apple Inc.; and Acer Inc. Some
of the key market incumbents are making substantial investments in R&D initiatives intending to
manufacture more affordable laptops whilst keeping pace with technological advancements and
developments.

Similar market trends regarding the supply and demand changes were seen even in India with
demand increasing at an exponential pace powered by the latest Covid-19 pandemic and work
from the home culture adopted by many IT companies. At the same time, India also experienced
its biggest IT boom which led to many young students opting for their careers in Computing and
IT-related fields.

Market Size for laptops in India

In the first quarter of 2021, India's PC sales (including tablets) increased by 72% year on year to
4.0 million units, including 517,000 desktops, 2.5 million laptops, 930,000 tablet devices, and
43,000 workstations. Almost all categories had strong growth, owing mostly to a bad Q1 2020,
when supply was hampered by pandemic regulations in China. Shipments of notebooks (including
portable workstations) increased by 119 percent year over year in Q1 2020. With 52 percent year-
over-year increase, tablets enjoyed one of their best quarters since 2016. Due to a decline in the
popularity of the device, desktop shipments declined 6% to 517,000 units.

Due to the prevailing covid-19 pandemic and increased workforce working from home, the
demand for laptops and notebooks increased but due to silicon chip shortage and factories in China
being shut down, the suppliers were not able to meet the demand needs. This is where laptop rentals
were benefiting as with increased demand is the increase in cost. Companies demanding around
1000 were now demanding around 5000 PCs paying over 4000 Rs when previously they paid
around 1700 Rs.

As we can see, the rental market share across the world is bound to increase due to various reasons
and the market size of especially electronic rentals is forecasted to increase exponentially while
laptops and notebooks act as the major driving factor. Increased costs due to demand-supply
imbalance, increased need for digitalization and computing devices, prevailing covid pandemic,
young students and entrepreneurs and the recent IT boom rewarding huge for skilled IT workers
are the major stakeholders for this huge market size.

3.2 Cost Structure

Cost management is crucial in this industry since the invested amount affects the rental costs which
in turn affects the company as a whole. Existing rental services have not been able to perform
properly due to various reasons. Some of these are:
● Not having a proper web application, a crucial point of contact and made for the ease of use of
the customers, which offers quick and easy functions. Some of the existing platforms only
show the catalog and prompt the user to contact using a mobile phone for further services such
as price quotes, rental, etc.
● A limited catalog of devices could be seen in most if not all of the rental services. Even major
rental services such as RentMojo which has been the best laptop rental service compared to
others only offer 20 devices in their catalog with most of the devices not in stock.
● Technical support which offers additional services such as pre-installed software, custom OS,
etc. can rarely be seen in the rental services. Customers who are renting devices might prefer
getting a device that has the necessary applications pre-installed rather than having to spend
time setting up the device.

In order to become more successful than existing rental services, it is necessary to overcome the
above-mentioned drawbacks. Hence, the investment and expenses have to be allocated sufficiently
to perform these tasks properly. The expenses for the company have been allocated based on the
following parameters.

❖ First and foremost, it is necessary to build web and mobile applications. The cost for
development varies greatly based on the requirements, since the application must have
payment options and hold critical customer information, security is a major concern. The
development can be provided to a company that develops and maintains applications rather
than hiring developers for the sole reason of building a single application. This might cost a
minimum of 1 Lakh rupees and can go up to 5 Lakhs. While the quality of the application is
necessary, it is also crucial to manage costs. Partnering up with a foreign firm to develop an
application will result in much higher development costs. Once the development is done, it is
necessary to pay for the domain costs and for the deployment of the application along with the
cost of maintaining the application. The deployment cost might vary from 20K to 60K rupees
per month based on the traffic. This cost might increase if the customer base increases over
time. The maintenance cost might vary depending on the provider. This can be considered as
10K to 50K rupees per month. It can be considered that the upfront cost for development will
 be 3 Lakhs and further it will cost 50K per month to maintain the application. Since the web
application is to be deployed on the cloud there is no cost for electricity or server maintenance.
The web application will also include a company portal which allows maintaining the device
database and other details.

❖ The next part is the most crucial, which is the cost of laptops and desktops. When setting up
the service at the location, a minimum of 50 laptops and 20 desktops will be bought or
assembled. They will be split into 25 budget, 15 mid-range, and 10 high-end laptops and 5
budget, 10 mid-range, and 5 high-end desktops. In case a business requests devices in bulk,
they will be provisioned accordingly. All the devices will be bought with a maximum warranty
including on-site and accidental damage protection with battery replaceable options. This
might increase the cost of the device but is crucial in order to avoid mishaps in the future.
Budget devices include anything less than 50,000 rupees, mid-range will contain anything in
the range of 50,000 to 100,000 rupees while high-end consists of anything higher than 100,000.
The total cost of investment would be around 60 to 70 lakhs which can be paid up-front or as
installments. It is also to be noted that many companies such as Dell, Lenovo, hp, etc. which
offer business laptops provide discounts when bought in bulk.
❖ Next, the cost of infrastructure is to be analyzed. Having a proper office is necessary since the
devices have to be configured to work on other revenue streams when not rented. It is also
necessary to have a physical point of contact for the customers to reach out. The cost can vary
greatly based on the location. However, since the office is to be located in places accessible
from both remote places and prime areas of the location, the cost might range from 1 lakh to 2
lakhs per month. The interior costs might be minimal due to there not being any major
requirements and cost up to 1 lakh as a one-time investment for all the power cable routing etc.
The electricity cost might vary from 10,000 to 40,000 rupees based on the number of devices
being used for passive revenue.

❖ Finally, the cost for the technicians and employees per office will be based on the number of
personnel required. Technicians are very crucial since they have to check all the devices before
sending them out for delivery and after receiving them from the customer while also having to
configure the device. Technicians will be provided with the highest income among other
employees. The salary will range from 30,000 to 60,000 rupees based on their expertise and
two technicians will be employed initially with more technicians recruited based on the
requirement. Delivery personnel will be paid from the delivery charges paid by the customer
with a small 10 percent cut to the company. A consumer relation employee who will also
oversee the proper working of the office will be appointed in each location with a salary of
10,000 to 20,000 rupees based on the expertise of the individual.

Service Price
 App Development 1 - 5 Lakhs

Application Maintenance 40 - 60 KpM

Purchase Devices 60 - 80 Lakhs

Infrastructure 1 - 2 LpM

Technician 60 - 120 KpM

CR Employee 10 - 40 KpM
The total upfront cost to establish the application will cost an average of 3 Lakhs and one branch
will cost 60 - 80 Lakhs to set up. The cost to keep the application running ranges from 40,000
rupees to 60,000 rupees per month. However, these costs might be reduced when cloud resources
are reserved instead of being provisioned on-demand. Therefore yearly operational costs might be
as low as 3 Lakhs. On the other hand, the yearly operational cost of each branch would range from
20 Lakhs to 30 Lakhs.
3.3 Revenue Streams
Existing businesses based on similar models have not been too successful or have run out of
business due to a primary reason, Revenue. The renting costs might not be enough to offset the
cost of buying and maintaining the devices and paying the employees. Moreover, the time taken
to recover the cost of the investment on the device might be long enough that the business might
run on a loss or not be able to pay the employees during that period. However, there are numerous
ways in which the cost of investment can be recovered at a faster rate compared to just renting out
the devices. The possible revenue streams include:

❖ Primary Source - Renting: As mentioned previously, the key source of income for the
business is renting. Laptops will be rented based on a percentage of the MSRP and as time
passes, the cost of renting will change based on the market price in order to offer honest prices
and maintain a healthy business-consumer relationship. Desktops on the other hand are
different compared to laptops in the sense that the prices fluctuate more than laptops and hence
the prices will be set based on the market price of similar performing desktops or prebuilts
offered by companies.

❖ Advertising: Ad-based revenue has been on the rise over the years due to how simple it is to
implement yet effective. Rentronix charges different advertisers for displaying their adverts on
the customer's website in an uninterrupted way. This allows the company to grow as the
website becomes more popular since it is based on the CPC (cost per click) or CPM (cost per
thousand/mile) types of advertising revenue. Furthermore, making the advert subtle and
 providing an unimpeded user interface is also necessary since showing adverts in applications
could backfire due to customers disliking any kind of ad-tracking or cluttered interface due to
adverts.

❖ Product Placement: While this can be considered a form of advertising, it is different from
just displaying adverts in the web application. Companies can pay to make their products be
featured on the website or in recommended sections. By doing this, customers will be able to
see the companies’ products more frequently which can influence the customer. Companies
try to achieve this by making their products visible wherever possible for brand recognition
and other reasons.

❖ Pre-Installed Software: Customers who rent the devices will be provided with a stock
configuration installed with an OS of their choice and a new user account. However, this will
not include any other software and the required software has to be installed by the customer.
Based on the requirement of their workflow, customers can install applications as needed.
There are countless open-source or free applications available that might be suitable for the
customer.
However, there is specific software that might be required to perform some tasks such as the
adobe suite, office, etc. Given that it is a rental device, it is a loss for the customers to pay the
whole price of the application just to use it over days or weeks. However, it is cheaper to buy
the software in bulk for multiple devices, making it easier for the customer in case an option
to pre-install the required software is provided. It is also profitable for the business to provide
devices with pre-installed software which was purchased with a one-time payment. For
comparison, MS office for business can cost north of 15,000 rupees which is not feasible for
the person renting it while providing it along with rental for a small extra cost is much easier
for the company.

❖ Premium Subscription Service: Subscriptions that offer additional benefits to customers

have also been used by a multitude of applications. In this case, it is necessary to price the
subscription at a lower price and offer appropriate benefits else the service will not be feasible.
Compared to other applications which use subscriptions such as food delivery, laptop renting
is not used at the same frequency. Therefore, it is crucial to provide proper benefits. Rentronix
subscription service offers benefits such as on-door pickup and delivery at lower prices (up to
40% lower), a complimentary USB drive to use at the time of renting the device, an ad-free
interface, reduced prices with pre-installed software (up to 30% off) and offers on renting
prices. While this might not seem to be anything groundbreaking, it will be helpful to small
businesses that rent laptops in bulk. Getting a few percent of the price reduced might have a
drastic impact when renting in bulk.
❖ Mining: Crypto Mining has skyrocketed due to it being a source of passive income which does
not need much physical input. This can also help Rentronix in gaining income from a device
which is idle and not being rented. Though the profits might not be as much as renting a device,
an idle device can be used to generate profits rather than not working at all. Existing renting
services have not explored these possibilities. A mid-range desktop costing around 60K will
be able to generate 2K profit per month in case niceHash is used. NiceHash is a pool mining
service that uses the mining power of a device and pays for that. Their site offers a pricing
calculator using which the profit was calculated based on the earnings of devices with similar
specifications. This profit is calculated after deducting electricity costs. Other services can also
be used which provide similar profits. Another alternative is to set up all the devices to mine
independent from other services which might offer more profits but it costs more to set up and
the income from mining might not be consistent.

❖ Distributed Computing: While mining with desktops is feasible, the same cannot be said for
laptops. Laptops have lower wattage processors and lower cooling solutions. This might result
in the devices overheating when put through a heavy workload, affecting the longevity of the
device.
However, there is another way to use the computing power of laptops to earn while idle. This
method is to allow distributed computing networks to use the computing power of the laptops.
Some examples of these are MQL 5, Golem Network, BOINC along with GridCoin, and
upcoming projects such as hyperlink. However, the revenue from these sources is not stable
and might not be very profitable at times. Some have seen earnings of 1000 rupees per month
in MQL 5 while it can also go as low as 10 rupees per month. However, hyperlink promises
20000 rupees per month though it is still in early access.

❖ Selling Old Devices: Processor computing performance usually remains at the same level with
incremental updates when a certain architecture is developed. Drastic updates can be seen
when a new architecture is developed. Major performance improvements happen within an
interval of 3 to 4 years. While desktops can still be viable as there are many ways to improve
performance without swapping out the entire device, the same cannot be said for laptops.
Along with this, major laptop manufacturers provide extended warranty only up to 4 years,
which Rentronix is dependent on due to its nature of renting out devices and having to maintain
them. Therefore, when laptops have been purchased and used for 4 years, they can be sold at
half the price which is usually the market value. Some laptops such as MacBooks retain their
value and can be sold even for more than 60 percent of the original buying price. Desktops on
the other hand can be used for longer periods after which they can be converted into exclusive
rigs for distributed computing or mining for a period of time before being sold. By doing this,
the profit obtained from the devices can be maximized.
3.4 Value Chain
In the corporate sector, Porter's value chain model is quite popular. Rentronix, on the other hand,
does not treat it as a strict, stand-alone structure, giving equal weight to all actions. In order to do
a successful Value Chain Analysis, we must first recognise that not every activity or function
requires the same amount of examination. As a result, identifying the relevance of activities based
on their position in the product/service delivery process is the first step in modifying the Porter
Value Chain framework.

Primary Activities
The primary value chain activities of Rentronix are directly involved in acquiring and renting high-
quality products to targeted customers at an affordable price. Analysis of primary value chain
activities can improve the performance of Rentronix as explained below:

(i) Inbound Logistics:

It's crucial to build excellent ties with suppliers since you'll need their help to receive, store, and
distribute the product. Rentronix may encounter a variety of issues throughout the product
development process if incoming logistics are not properly analyzed. Inbound logistics analysis
necessitates a company's attention to every area of transformation, from raw material (in our
example, a completed product purchased in bulk) to the final product being rented.

(ii) Operations
The importance of analyzing operational activities rises when we already bought the laptops and
our company is ready to process these products with required customizations and software into the
end product and ready to rent to the market. Some examples of operational activities are
machining, assessing the damage of the rented product, renting, and testing. Contacting companies
for repair and maintenance also falls into this category. Analysis of operational activities is
important for improving productivity, maximizing efficiency, and ensuring the competitive
success of our company. The increased productivity can help Rentronix to achieve consistent
economic growth, increase profitability and set a powerful basis for competitive advantage.

(iii) Outbound Logistics

Outbound logistics refers to the actions that convey a product to a client via several intermediaries.
Material handling, warehousing (keeping non-rented computers), organizing, order processing,
transporting, as well as delivering to the destination are all examples of outbound logistics tasks.
To investigate competitive advantage streams and fulfill its company growth objectives, we need
to examine and optimize outbound logistics. Because when outbound operations are managed in a
timely manner with optimal prices and product delivery, procedures have a minimal negative
impact on quality, customer satisfaction is maximized, and growth potential for the company is
increased.

(iv) Marketing and Sales

At this stage, we will try to highlight the benefits and differentiation points of our offered products
to persuade the customers that we are offering better than competitors. Only delivering high-
quality products at affordable costs and distinctive features cannot create value until we invest in
marketing and sales activities. The sales agents and also the marketers play a very crucial role here.
Some examples of Rentronix's marketing and sales activities are- sales force, advertising,
promotional activities, pricing, quoting, and building relations with customers and suppliers.
Effective and wisely integrated marketing activities can develop the brand equity of our company
and help it stand out from the competition. This indicates the need to ensure the coordination
between various value chain functions and activities.

(v) Services
The pre-sale and post-sale services offered by Rentronix will play an important role in developing
customer loyalty. Modern customers consider post-sale services like customer support and
interaction as important as marketing and promotional activities. Our company shall analyze its
support activities to avoid damaging brand reputation, and instead use it as a tool to spread positive
word of mouth due to quick, timely, and efficient support services.

Secondary Activities
The support activities that aid in the coordination and facilitation of the primary value chain
operations are:

(i) Firm infrastructure

Quality management, legal affairs handling, accounting, finance, planning, and strategic
management are all part of the firm infrastructure. We can optimize the value of the entire supply
chain by effectively managing infrastructure for storing and distributing our computers. Complete
control throughout our infrastructure can assist us improve our market position.

(ii) Human resource management

We will assess many elements of human resource management, such as recruitment, selection,
training, rewards, performance evaluation, and other people management operations. By
comparing recruiting and training expenditures to our relative return, the organization will be able
to meet its cost-cutting goals. Except for shipping laptops, Rentronix's reliance on employee skill
is minimal, which reduces the impact of this value chain support activity slightly.
(iii) Technology development
In the current technologically advanced modern era, almost all the activities of the value chain
depend on technological support. The technological integration in production, distribution,
marketing, and human resource activities which we manage through our website is divided into
product and process technological development activities. Some examples aretechnology-
supported customer service and data analytics both for customer and employee feedback.

(iv) Procurement
The procurement in the value chain denotes the processes involved in purchasing the inputs that
may range from equipment, supplies, and other items necessary. Due to its linkage with multiple
value chain activities, Rentronix shall carefully consider its procurement activities of laptops and
similar computing electronic devices according to the current demand in the market to optimize
the inbound, operational, and outbound value chain.
After carefully analyzing all the above-listed factors using porter’s value chain analysis, we can add some
differentiation factors from us to our competitors as follows:
Inbound logistics:
● Procure high-quality inputs to offer a high quality finished product
● Effective incoming input handling to reduce damage

Operations:
● Flexible manufacturing system
● Wide product range
● Improved product appearance
● Prevention of product premature failure
● Quick response to unique specifications
● Improved customer satisfaction through lower defect rate
● Improved product performance due to conformance to technical specifications

Outbound logistics:
● Effective handling and better shipping to reduce product damage
● Timely product delivery
● Flexible delivery capabilities
● Effective order processing procedure

Marketing and sales:

● Improved relationships with suppliers and customers
● Enhanced communication with customers by offering high-quality information.
● Brand awareness, reputation, and image development due to extensive and effective advertising.
● Effective coordination among product, research, and marketing departments.
 ● Wider sales force coverage.

Services:
● Superior service quality
● High-quality technical assistance
● Reliable and quick repair/maintenance service

Secondary Activities:
Firm Infrastructure:
● Extensive database development for effective marketing ● Advanced information system
to get deeper customer insights.

Human Resource Management

● Attractive rewards to encourage creativity and maximize productivity
● Personnel training for effective interaction and superior customer service
Technological development
● Quick new product development
● Innovation integration in product designing
● Innovative product features with patented technology

Procurement
● Reliable transportation to ensure quick delivery
● Procure high-quality raw material and replacement parts.

3.5 Customer Segment

These days a lot of choices are available for the customers to choose from. Different branded
companies build different types of laptops aiming at different demographics of people. Laptops
with basic features for people with basic need for preparing presentations or for students for taking
part in online classes or meetings. Laptops with better and faster processors and memory space for
people who are interested in coding, application/software development, etc. Laptops with higher
configurations and better cooling systems for people interested in gaming, machine learning and
AI purposes. With the various models offered, a wide range of customer segments and their various
requirements are met.

Primary customers :
People with temporary need for computing devices. For example students for online classes, people
with their primary devices in repairs, people looking to have the latest devices and upgrade when
needed. With the rise in demand of online activities due to the pandemic, there are so many people
in need of temporary productive machines like laptops to meet their requirements such as work
from home, online classes/meetings, etc. Even travelers can benefit from our service, for example,
if a person has to travel frequently between many regions, it is not feasible to have a proper system
to every location he travels, by using our service, he can temporarily use the rental systems for his
period of stay in a particular location and then travel freely and avail the service in the destination
location without actual need to safely with a portable machine or own a high end machine in every
location.

Secondary customers :
Businesses who are in need to upgrade their devices frequently to stay at par with their competitors
come under this category. Many companies need high end devices and need to upgrade frequently
for better performance and more features, but completely owning these devices for such short
periods of time is very expensive and difficult to manage. With our solution these businesses can
rent the devices of their need for a period of time or until next generation/version of the products
are released to upgrade so that they can benefit a lot financially and also, since these businesses
provide a huge market for Rentronix, it is very beneficial to the company for increasing sales and
expanding the business. It also attracts the employees of the businesses to rent our devices and
suggest other people which increases reach and popularity of the company.

3.6 Customer Channel

The Customer Channels (Alternative access channels) selected in our laptop rental business are
three channels which are listed below:

Web-Application:
The major customer marketing channel we are focusing on is through our web application. We
chose web application over mobile application due to the reduced need to install a software or pay
for using our services as our website would be available on the internet for free and anybody with
the link can access it with ease. Without coming directly, prospective customers can order their
prefered laptops from the web application itself. The culture of today's society is inherent to
smartphones, and various digital devices making this channel a quick and easy access option.
Entrepreneurs who are pioneering new emerging technologies like cloud computing, blockchain
mining etc need larger computing power either in the form of generic CPUs or video GPUs for
smaller periods of time and such people can make use of our service instead of buying all the
computing hardware.
Other prime customers of our service include young individuals especially students who need
greater ease of access and better speed of response which can be achieved using a web application
instead of going to an in-person store to check and order or take the laptop back. Better SEO
optimisations and unique attraction features of our website added with our unique idea of startup
increases the chance of our website being seen. Thus, the customer channel via our web application
is expected to be an attraction for both of our customers either it may be businesses of any scale
or emerging entrepreneurs or even young students having a price constraint.

In-person Sales:
The classic customer channels that include customers coming directly to various stores in which
we are partnered or our own stores to choose their choice of rented laptop configuration at the
appropriate price. Now we will discuss sales through the partnered stores also known as channel
sales. Channel sales is the process of distributing a product to the market, typically by segmenting
sales operations to focus on different selling vessels. Channel sales can include any type of third-
party that offers your product or service to the end customer. Selling our product through a network
of channel partners can provide great leverage to the business. Re-sellers, distributors, value-added
providers and other types of channel partners can provide a wide reach for the business and get the
product in front of many prospective customers. It is also a very cost-effective way to enter new
markets as it spares the costs of maintaining a local operation directly by us.

Other than channel partners, to grow business performance, each year we will set our target to open
new branches and also partner up with more vendors to expand the marketing network and the size
and scale of this customer channel. Although the marketing by opening this new branch may/may
not be cost-effective, it can give confidence to the community, especially prospective customers
in the company seeing the growth of the company in a bolder sense. To approach the selected
customer segment, students, entrepreneurs, the branch location was chosen in the prime parts of
all major cities, where most of our target customers are located.

Telemarketing:
Telemarketing is the direct marketing of goods or services to potential customers over the
telephone, Internet, or fax. Telemarketing may either be carried out by telemarketers or
increasingly, by automated telephone calls or "robocalls."Telemarketing may also be referred to
as "telesales" or "inside sales."

By employing these telemarketers and customer care agents, expected existing customers can be
offered to do reorder by providing them with best in class customer service through mobile
conversations or internet live chat through our web application. A special Quality assurance
department can also be established which deals with various customer complaints which may be
related to technical issues faced either while using our services or during the usage of our product.
Personal complaints and cost based complaints or any other complaints would be treated with
utmost care to obtain the best possible solutions. A proper technical assistance would be provided
by our customer care agents which may even be extended to in person technical assistance. Besides
the current customers, telemarketers can also reach new customers.

Communication channels that can be used by these telemarketers include but are not limited to a
phone, WhatsApp, SMS, email, web adverts and live chat through the web application. Social
media can also be used which is in a boom in current times and has proved to be very effective in
marketing and reaching larger crowds. These channels do not target a specific customer segment
but can reach a wider community, with a broader coverage area with the help of digital services.
All the three customer access channels mentioned above are intended for providing efficient
marketing activities, ease in laptop ordering, communication, and complaints between both the
parties.

These three channels are mutually integrated, and function as the customer care services at its core.
Judging from the cost-efficiency side, our web application channels and telemarketing are the best.
While seen from the confidence and trust of customers, the in-person channel is the best. The
combination of these three channels is expected to provide maximum results in efficient marketing
and also providing better service to all our existing customers.
3.7 Customer Relationship

Customer relationship is the process used by businesses to engage with the customers and
encourage them to use the business services for a longer period of time. As more and more
customers use online services, customers are more in control about their choices, so it is more
important than ever before to have a great customer relationship for a business. The customer
relationship activities followed in our laptop rental service are:

Cater existing User:

It is important to keep in touch with existing customers and previous customers by responding to
issues, requests or communication channels such as e-mail, phone, chat or phone, etc. Good
relationships with existing users help businesses to gather feedback and improve the business and
also, long-term relationships with customers induces strategies for businesses to improve the
customer’s future experiences and increases the spread as they suggest others about the company
making it grow a positive impact in the community. There have been cases with successful
businesses where the customers, dissatisfied with the direction that the company has taken, avoided
the company which could affect the business severely. Hence it is crucial to retain existing
customers and to obtain regular feedback from the customers.
In Rentroix, we occasionally provide discounts and offers to frequent customers which increases
the purchases and also makes them stick to the company providing an edge over the competition.

Using Social Media:

Social Media can be another major source to spread about the business and increase the customer
base with targeted advertising on websites and apps such as Instagram, Facebook, etc. It also helps
to reach a wide range of users globally as more and more people use social media apps on a day-
to-day basis.

Customer support:
We provide technical services such as answering queries regarding the products or repairs due to
any technical errors through a toll-free number that is accessible by anyone anywhere.

3.8 Key Resources

Some resources are crucial in order to ensure that the value propositions and requirements for the
revenue streams are met correctly. These key resources are also inclusive of other resources which
are necessary to maintain customer relationships and channels. The resources which come under
these categories, the key resources, are mentioned below.

Infrastructure:
For a rental based business, it is necessary that there is a point of contact for the customers to reach
out to. Not only does it help the business but will also improve the trust that the customers gain
when they are able to get help with any kind of issues. Aside from this, infrastructure is necessary
for Rentronix since it has to store multiple devices that are available for renting. Aside from storage
of the devices, the revenue streams of Rentronix also includes revenue gained from mining and
distributed computing from the devices not in use. Hence, the infrastructure also includes the
necessary networking and power supply to run the devices when not rented. A server is also
necessary to host the web and mobile application. Infrastructure also includes the furniture,
computers and other gadgets for the office.

Rental Hardware:
The devices used for rental require the most investment since they are the core product for the
functioning of the business. Laptops and Desktops are the devices which are provided as rental
products and are procured in varying quantities for a range of prices and rented based on the
purchase price and the value of the device. These devices also require servicing in case of any
issues. Hence, these are obtained with a minimum of 3 years warranty which is also included in
the investment for these devices.

Employees:
The rental hardware needs to be checked and handled properly at the time of renting and receiving.
This requires a certain level of expertise in computer hardware and software. The idle devices also
have to be configured for mining and distributed computing. Apart from this, someone has to
handle customer queries and issues to resolve it accordingly. To satisfy these needs, each location
requires a minimum of two technicians who are capable of running software tools to assess the
condition of the devices and also check the hardware for any kind of irregularities. They also have
to be capable of basic diagnosis when there is an issue in the device and resolve it with the company
in case warranty is available or report it to the hardware acquirement and managing team. Each
location also requires at least one employee as a customer relation manager. Rentronix also
provides an option for delivering devices which are not rented for less than one week. The
employees in the delivery department will be paid from the delivery charges and only a small
percentage will be taken by the company. Aside from these employees who are restricted to
operating in a single location, other employees operate for the company as a whole. This includes
the finance department which needs to take care of the company expenses, revenue, auditing and
accounting. The marketing department which makes sure that the features and services of the
business are being marketed and advertised effectively. Furthermore, the higher level positions
such as CEO, COO, CFO etc. are also part of the company.

Software Resources:
The primary source for customer interaction and secondary revenue stream is the web and mobile
application that will be used by the majority of the customers for checking the available devices,
renting, payment, delivery, etc. and the partnered companies will use it as a platform for
advertising their products and business. The necessary software applications to develop and run
this are also included in the software resources. The application provides the customers with a
platform to rent the devices, but it is necessary to deliver the devices in proper condition and to
review the condition of the device once returned by the customer. It is near impossible to access
the condition of the device just by having a top-level view. It is necessary to note down the details
of the components at a more in-depth level. The devices need to be checked for their performance
before renting in order to ensure the standard level of performance that is guaranteed to the
customer by the company. Several benchmark softwares are required for this. This software
includes both open source and paid applications. Apart from benchmarks, it is necessary to check
the parts and the specifications of the devices which can be done using hardware monitoring
software. Although the technicians will be able to check all these using the necessary software, it
is difficult to store and retrieve this information from a physical book or register. Hence, a portal
for the employees to store the details of all the devices at a particular point in time is also necessary.
This portal can be integrated with the rentronix application.

Funding:
All the above-mentioned resources will be difficult or impossible to obtain without proper funding.
Therefore, it is to be mentioned that funding is also a key resource of the business. These include
funds from financial institutions such as banks. Apart from the initial investment, additional
funding might be required to develop the business further.

3.9 Key Activities

New Customer Rental:
Maintaining a record of the activities from prospective customers and analysis of the same who
book or order the laptops, the process of feasibility survey of prospective customers, approval
process or rejection, until the renter gets his preferred product and gets the lease contracts.

Booking through the website:

The laptop rental orders can be placed through our web application which is both quick and easy
to use as an alternative to the generic in-person stores. Proper maintenance of the website and
frequent audits regarding its security and user experience need to be conducted. This comes to the
next key activity of our startup, the website development, and maintenance. We need to be adding
suggested features from the customers and also improve the existing features to the latest technical
standards.

Improving Features of the website:

Improving features include increased server capacity and bandwidth with respect to the load on
the website and cloud services can be a better alternative to be used instead of conventional data
centers and servers. Better UI and UX features for the ease of usage of our website covering a
broad range of customer opinions. These include simple controls to navigate all over our website
along with minimal color change palettes while choosing a simple but elegant color palette for our
website.
Other than the look and feel of the website, we also need to check the performance and the stability
of our website's daily absence which may lead to a website crash. Proper audits regarding both the
system health and system security need to be conducted frequently and any abnormal changes
noticed must be dealt with proper technical equipment. Proper security systems need to be
maintained to keep the websites from any potential digital attacks and security analysts need to be
employed who monitor these systems.

Reorder Rental:
Customers can reorder/renew the lease contract before the lease period expires. This can be done
through our website directly and we would ensure the lease contract is increased in the database.
All such test case scenarios must also be considered when renting out new devices, especially a
large number of such devices on a contract for more than one year.
Device Delivery:
Delivering the product to the customers in case of online orders while maintaining the integrity
and quality of the product. This can also be assembling the hardware in businesses. While
delivering the product, an audit is conducted in front of the customer regarding the status of both
the software and hardware of the product regarding any such presence of important software or the
status of the Operating Systems or Disk. Any such physical and external scratches or damage to
the body is also noted which would be checked while the device is returned to us.

Marketing and Data Analytics:

Analyzing the overall trends of market demand per region, analyzing the market size and share per
region, the types of devices prevalent in the region, and delivery duration need to be analyzed
carefully to ensure better customer service and also better marketing for the company. Marketing
techniques need to be implemented using means like social media, telemarketing, and also generic
marketing methods through proper employment of marketing personnel.

Better marketing is the result of better data analytics and proper analysis of all existing data
collected from various trusted sources and data collected from surveys properly conducted by the
company can help understand the demand and the status of the need for the company with respect
to a particular region or in general as a whole.

Proper Maintenance and Repair:

Any electronic device can only work at its best for some 5-6 years and it only gets less if not
maintained properly. Proper chip maintenance and management need to be done on a frequent
basis for all the laptops. The absence of proper maintenance may result in damage and loss of
property which affects the rental business at its core.

Another very crucial activity performed by the company is laptop repair which may be related to
software or hardware which is done to damaged parts of the laptops which include physical
damages to the body, chips, cables, etc, and digital damages like OS damage, and virus attacks,
etc.

Product Replacement:
The product may get damaged unintentionally when it is with the customer and when the company
decides and agrees that the damage is not done by the customer, a new product with the same
configurations if not a very close one is replaced with the customer.

Receive Payments from the customer:

The payment activity of the lessee for the agreed rental conditions can be done in several ways: 1.
Payment by debiting the balance of e-money (electronic money) internally.
2. Payment via mobile application through a payment gateway that has been cooperating with the
company.
3. Payment by transfer to the company bank account 4. In-office cash payment

Purchasing Laptops:
We do not manufacture laptops to rent them to our customers but instead purchase them either
directly from the wholesale manufacturer or on contracts consisting of bulk products which are
then rented out to our customers with their respective serial IDs.

Getting the payment money:

We lease or rent out laptops through various customer channels mentioned earlier which include
rentals through our web application, rentals through telemarketing, or rentals through in-person
stores. The in-person sales can also be done using channel sales through partnered sources. Thus
getting the payment settled from all these different sources according to their respective pay
procedure is also another crucial activity of the company as it produces the income for further
growth or maintenance or in other words sustainability of the company.

4. LEGALITIES, COMPANY REGISTRATION, FINANCIALS AND

HUMAN RESOURCE

4.1 Registering the Company or Start-up

The following steps are ensured while registering the company:

1. Request a provisional Director Identification Number (DIN): By submitting Form

DIN-1 online. After that, the application form must be printed, signed, and delivered to the
ministry for approval, together with evidence of identification and residence. A permanent DIN is
granted after verification and approval.
2. Obtain a Digital Signature Certificate: A digital signature certificate can be obtained
from one of MCA 21's six recognised commercial companies. The application form, as well as
proof of identification and residence, must be submitted by company directors.

3. Reserve the company name online: Approval of the company name must be completed
electronically. On the MCA 21 website, the applicant can verify whether the requested company
name is available. There is a limit of six names that can be submitted. Once authorized, the selected
name appears on the website.
4. Stamp the company documents: The request for stamping the incorporation documents
should include unsigned copies of the Memorandum and Articles of Association (MAA) as well
as the payment receipt. The copies are returned to the Superintendent, one of which is stamped,
signed, and embossed. The MAA must then be signed by the firm promoters, who must also fill
out the essential information in their own handwriting.

5. Obtain an Incorporation Certificate: Forms e-form 1, e-form 18, and e-form 32 must be
filled online on the Ministry of Company Affairs' website: Form 1 must include scanned copies of
the first directors' permission, as well as the MAA's signed and stamped form. Articles of
Association of the MAA, The Registrar of Companies must receive one copy of the MAA, Articles
of Association, Form 1, Form 32, Form 18, as well as the original name approval letter, permission
of directors, and stamped power of attorney. The certificate of incorporation is automatically
mailed to the company's registered office through registered mail.

6. Create a seal: When issuing share certificates and other papers, companies require a seal.
The cost is determined by the number of words to be engraved, the number of seals needed, and
the delivery timeframe.

7. Obtain a Permanent Account Number (PAN): Form 49A is used to apply for a PAN.
After obtaining a PAN, a printed PAN card will be sent. PAN applications can also be submitted
online, but the papers must be provided in person for verification.

8. Apply for a Tax Account Number (TAN): To apply for a TAN, fill out Form 49B and
bring it to any TIN Facilitation Center. The application is verified and transmitted to the Income
Tax Department, where the TAN is granted. A TAN application can be submitted either online or
offline through the NSDL website.

9. Register with the Office of Inspector, Shops and Establishment Act

(State/Municipal): A statement containing the names of the employer and management, as well
as the establishment's name, postal address, and category, must be delivered to the local shop
inspector, together with the required costs. Within 30 days of the establishment's opening, it must
be registered.
10. Register for GST: Every firm with an annual revenue of more than Rs 20 lakh (or Rs 10
lakh in special states) must register for GST. Please visit the GST portal and follow the steps
outlined there.

11. Register for Profession Tax at the State Profession Tax Office: Every employer (other
than a government officer) is subject to taxes and must acquire a certificate of registration from
the specified authority, according to section 5 of the Profession Tax Act. Form 1 must be submitted
to the registering authorities by the firm.

12. Register with the Employees' Provident Fund Organization (National): For allotment
of an Establishment Code Number, the employer must send the essential information to the
applicable regional Provident Fund Organization (EPFO) in the specified way. Employees are not
required to register separately.

13. Register for Medical Insurance: Registration is the process of identifying every paid
employee for the purposes of insurance and creating individual records.As per the Employees’
State Insurance (General), Form 01 must be submitted by the employer for registration after which
the Employer Code Number is issued.

4.2 Eligibility for Start-up

The following requirements must be met in order to be considered a startup, according to the
Startup India Action Plan:
1. Being incorporated or registered in India for less than seven years, with a maximum of ten
years for biotechnology enterprises.
2. In any of the previous financial years, annual turnover did not reach Rs 25 crores.
3. Aims to contribute to the creation, implementation, and commercialization of innovative
goods, processes, or services that are based on technology or intellectual property.
4. It is not established through the dismantling or reconstruction of an existing firm.
5. It must first seek certification from the Inter-Ministerial Board, which was established
specifically for this purpose.
6. It can be formed as a limited liability partnership, a registered partnership business, or a
private limited company.

4.3 Hiring Policy and Methods

When a corporation hires interns, it provides a young college student or a new professional hands-
on experience with industrial labor. Although it is a time-consuming process, employing interns is
critical for a startup. The following factors are critical to the startup's success:
Having a good understanding of the business's stage: Virtual interns would be ideal for the first
few months, but as the company expands, full-time interns and staff would be more effective.
Virtual interns provide flexibility, a large talent pool (from candidates from many places), and
make numerous duties simple in the early stages (content designing, social media marketing etc.).
Skype, Google Drive and Docs, Hangout, and a Facebook group may all be utilized to complete
the task. With the growing business, in-office employees are required who can control new
projects. They can be guided easily.

Employers must look for hard work, dedication, understanding of all software (computer-aided
design, data analysis), confidence, fluency in speaking skills, openness, and eagerness to join the
company in the hiring process. Interns must be enthusiastic about the startup's concept and make
an effort to connect with it.

Mentoring and guiding interns: The intern must be given time and attention in order to learn
new technical skills and so prove to be a valuable addition to the start-up. Communication between
the intern and the employer is essential. This might lead to better results.

HR formalities: Must be considered while developing a successful internship programme for a

start-up or a small or medium-sized company.

Internship Program That Has Been Carefully Planned: This is critical since there should be a
clear distinction between an employee and an intern. This information is needed to determine if
the new intern is entitled for allowances, perks, or paid time off. Interns who work for less than
three months are not eligible for paid leave, but interns who work for more than three months are
eligible for paid leave and other benefits.

Paid internships are preferable because they provide a start-up with a large pool of interested
individuals from which to choose. For marketing internships, a monthly fixed stipend is chosen,
and an incentive-based compensation structure is appropriate for target-based work.

Deductions: For salaried personnel, deductions such as PF, ESIC, and PT should be taken into
account in accordance with the rules.

4.4 Financial & Tax Regulations:

The Indian government has been working on defining what constitutes an "eligible startup" in
recent years (a startup that is eligible to claim regulatory and tax regulations). A startup is defined
as a company that is incorporated as a private limited company (under the Companies Act, 2013),
or is registered as a partnership firm (under the Partnership Act) or a limited liability partnership
(under the Limited Liability Partnership Act) in India and meets the following criteria:
● It has been less than seven years since it was incorporated/registered (for an entity in the
biotechnology sector, this period is 10 years).
 ● Since its incorporation/registration, the entity's annual turnover has never exceeded INR
250 million.
● The entity is engaged in product or process or service innovation, development, or
enhancement, or is a sustainable business strategy with a strong potential for job creation
or wealth creation.

The Indian government provides Eligible Startups with a number of perks, some of which are
mentioned below:
● Startups created on or after April 1, 2016 are entitled for a 100 percent profit deduction.
Furthermore, qualifying Startups have the option to take use of the tax exemption for any
three years throughout the first seven years after their formation.
● To help India's startup ecosystem, a long-term cap gains exemption of ₹ 5 ,000,000 is
available if the capital gain from the sale of investment goods is reinvested for 3 years in
units of a registered fund established for startups.
● The Indian tax system permits Startups to carry over and pay off unabsorbed tax losses
earned in the first seven years of business, as long as all shareholders in the year of loss are
stakeholders in the Startup firm during the year of carryforward and cast. As a result, even
though the change in ownership exceeds the 49 percent level applicable in other instances,
such protection is accessible.
● The government has waived the tax on investments in qualifying startups that exceed their
fair market value. These contributions might come from local angel investors, relatives, or
funds that aren't recognised as venture capital firms. Incubator investments that exceed fair
market value are also excluded.
● The present rules u/s 54 GB exempt protracted investment income on the sale of a
residential real estate from taxation provided such profits are invested in small or medium
firms as defined by the Mini, Small & Medium Act, 2006. However, this clause has
recently been updated to allow an exemption for earned income invested in qualifying start-
ups. Thus, if an individual or a HUF sells a residential property and uses the proceeds to
purchase 50 percent or more equity shares in a qualified startup, long-term capital gains
tax will be waived as long as the shares are not sold or transferred within 5 years of
purchase.
5. Results and Discussion

We have conducted a survey through various social media outlets to know the public opinion on
our concept and also to understand the customer base. The following were the questions framed
with their respective responses. Let us analyze them further:
Firstly, we asked about the age group so that we can know the age group of potential interested
customers and as expected students and working class age groups were more interested when
compared to children or elders who are retired. We can see that the age group 15-24 covers the
majority with almost 65% while the other 23% covers the people in the age group 25-64.

Next, we asked about the professional status of the respondents and most of them were students
with 57% of the total responses being students and others were mostly employed in one way or the
other while a minority being covered by any others which may even include the unemployed. From
these results, we can also derive a very important trait of our customer base, i.e., the people who
cannot afford laptops or who need it for some particular time for some particular job are the most
interested customer base for our startup.
Now, when asked about the preferred device that they feel comfortable working or browsing on,
Laptops and desktops covered the majority while tablets and workstations were the remaining
minorities. This shows that although android has come a long way it is still not suitable for work
or education when compared to a laptop or desktop. The reason that we can assume for laptops
being more in demand than desktops may include portability ease of use.

We also wanted to know for what reason our customers use their device for and here there was no
clear winner and the reasons varied from work to gaming and also general day to day web
browsing, chatting etc.
Another important question is to know the price range of the devices that the people are currently
using to propose our own cost structure and also to know the current market trends so as to adapt
to those trends whenever there is a change. Now in the above graph, we can see that almost all
laptops except a minority 10% cost more than 40k and more than 60% cost more than 70,000
rupees. So instead of spending this much at once, they can rent for about 5% of the total cost which
comes up to 3500 rupees only.

Another problem other than increasing costs of these electronic devices is their lifespan and thus
when asked about the age of their device, we can see that only 12% of the devices were older than
3 years while most were spending more than 70,000 to buy them.
We have already seen that most laptops were not lasting for more than 3 years, now even in those
three years these electronic devices were not perfectly fine according to our survey. When asked
about the frequency of the issues faced by these devices, never was again a minority with only
12% of the votes while more than 44% responded occasionally. Shockingly, more than 24% of the
people responded that they face issues with their device very frequently which is a problem when
they are spending so much to buy them at once.

The next question we asked was how often do the people upgrade their device i.e. buy a new device
or change components of their existing device and more than 70% of the responses were from 1-3
and 3+ years while about 27% responses said they upgrade their devices frequently and yearly and
our idea is very helpful especially for these people.
Now after all these when asked about whether they are satisfied with their current device, 57% of
the people responded with NO. The only possible reason that we can assume for them to not change
or upgrade their device is the cost.

Further, we also asked about the device that the respondent felt would meet their requirements,
62% voted laptops while other 25% voted desktops.
From the above question we can see that almost everyone felt that their android devices were not
compatible when compared with others and thus, we asked further about their preferred Operating
System in these devices and we can see that 53% of the responses were on Windows while both
Mac and LINUX shared the other half. This information is also useful to us so that we can pre-
configure devices according to the current market demand.

When asked about the idea of renting devices rather than buying them, the response was fairly
positive with almost 76% of the people agreeing to the idea. This shows the positive Customer
base for our start-up.
Now if they were interested in renting the device, we asked them on what basis or term would they
like to rent the devices and about 39% of the responses said that they would rent the devices
monthly and about 29% daily while other 20% said yearly and very few said hourly. This also
helps know the demand for various renting plans and we can set costs according to these results.

The final question was to know on what scale would the people rent the devices and the majority
of the people wanted to rent only an individual device and it is expected. Only large businesses
would rent devices in bulk.
Social Media Posts & Survey
Rental Plans
Based on the survey performed, the following rental plans have been developed. The cost has been
given per month, in case duration is less than a month it will be calculated accordingly.

Duration Cost (Per Month)

< 1 Month 6 Percent of Cost

1 - 6 Months 5 Percent of Cost

6 - 12 Months 4 Percent of Cost

> 1 Year 3 Percent of Cost

The softwares required can also be customized at the time of purchase. Open Source Software will
cost 50 - 100 rupees based on the complexity of installation. Other paid softwares will cost
10 percent of cost to full cost based on the software.
Software Application Design
Home page shows any new arrivals or discounts in the banner at the top and a list of most popular
devices in the rest of the page from which the user can also filter devices. The user will be able to
check notification, bookmarks and their profile from the bottom navigation bar and could get more
options from the side bar such as search, filters and more.

If the user selects a device it will take them to their product page where they can bookmark, select
colors, duration for renting, based device details and the original price of the device. The user can
swipe down to check benchmarks and detailed pricing and customization or press the button to
add it to cart.
6. Conclusion
From the above statistics, we can make sure that there is quite a large amount of demand and
interest for rental devices based on different time periods like monthly, yearly, etc. Also, as our
business model is based on multiple sources of income other than our primary source of renting
electronic devices, there is a high probability of success and profitability of the company after a
period of around 15-20 months. This not only makes it profitable for the companies using our
service but it also benefits our business. There are numerous people who will be able to benefit
greatly from this. Not having to spend enormous amounts to obtain a device will not only provide
access to devices that people will not be able to obtain otherwise. Getting access to computers for
a cheap price will enable people to do more than they were able to before. Apart from this, it will
also have an impact environment wise since a lot of devices that would have been discarded
otherwise will be put to use while also many devices which would have been purchased will be
sourced by us, reducing the overall footprint to some extent. Therefore, our startup can be
considered to be beneficial both to people and the environment which is the need of the hour,
making it a viable startup idea.

7. References
Background research:
1. https://www.bloomberg.com/news/articles/2022-01-04/chip-delivery-times-are-on-the-ris
e-again-shortages-to-continue

2. https://www.bloomberg.com/news/articles/2021-12-08/chip-wait-times-grow-again-signa
ling-shortages-will-drag-on

3. Top Countries using Internet

Market Size and Share for laptops:

1. https://canalys.com/newsroom/india-notebook-shipments-q1-2021

2. https://www.grandviewresearch.com/industry-analysis/laptop-market

3. https://infotechlead.com/devices/pc-shipments-in-india-surge-72-in-q1-2021-to-4-mn-can
alys-66842

4. https://www.thequint.com/news/india/india-tops-list-of-countries-using-internet-on-phone
 -over-desktop#:~:text=Digital%20India%20has%20400%20percent%20more%20mobile
%20users%20than%20desktop%20users.&text=Out%20of%20all%20the%20time,report
ed%20The%20Times%20of%20India.

Social media survey and Analytics:

1. https://docs.google.com/forms/d/1fLT-OJs5wcmEa8wJeTgUGRb5ulzbmsqSbjZPqfRFbE
E/edit#responses

2. https://twitter.com/rentronix