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Unit name: Leadership and Entrepreneurship Unit number: BUSM 3036
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Title: 1A Applied Project
Length: 1621 words Due date: 24 Oct 2021 Date submitted: 24 Oct 2021
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 Table of content
I. Abstract-----------------------------------------------------------------------------------------------------3
II. The new business---------------------------------------------------------------------------------------3
1. Problem Identification----------------------------------------------------------------------------3
2. Light-It-Up (LIT)-------------------------------------------------------------------------------------3
III. Business Model Canvas------------------------------------------------------------------------------4
1. Customer Segments------------------------------------------------------------------------------4
2. Value Propositions--------------------------------------------------------------------------------4
3. Customer Relationships-------------------------------------------------------------------------5
4. Channels----------------------------------------------------------------------------------------------5
5. Key Partners-----------------------------------------------------------------------------------------5
6. Key Resources-------------------------------------------------------------------------------------6
7. Key Activities---------------------------------------------------------------------------------------6
8. Cost Structure--------------------------------------------------------------------------------------7
9. Revenue Stream------------------------------------------------------------------------------------7
IV. Lean startup principles-------------------------------------------------------------------------------7
V. Conclusion------------------------------------------------------------------------------------------------9
VI. References----------------------------------------------------------------------------------------------10
VII. Appendices--------------------------------------------------------------------------------------------13

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 I. Abstract
Having identified the inconveniences associated with phone charging, such as
charger availability and user forgetfulness, LIT - a wireless charging sticker - was
created to provide a more convenient charging experience. We will introduce the
innovative product, discuss all nine blocks of the Business Model Canvas to
demonstrate that the idea can progress beyond the concept phase, and apply lean
start-up principles to foster an entrepreneurial mindset.

II. The new business:

1. Problem identification:
Smartphones are now considered indispensable companions by most humans due
to their portability and versatility (Anshari & Alas, 2015). However, there are still
unsolved problems that people might face every day, including forgetting to charge
before use, not having any chargers available when the phones run out of battery,
and not having time to re-charge their phones – which may cause usage interruption
and irritation, result in forcing people to unplug the charger when it is not full,
causing the battery degradation over time (Appendix A.1). Consequently, portable
batteries are the best solution for dead phones. Despite their many benefits, power
banks are bulky, take a long time to charge, and people may forget to bring them
along (Appendix A.1). Evidently, people need a more sophisticated and convenient
solution.

2. Light It Up (LIT):
Through the lens of design thinking, we have created Light-It-Up (LIT) – a solar-
powered wireless charging sticker. In detail, the solar panels within each sticker will
receive photons (or particles of light) to generate electricity, which will then be
converted into people's phones via bluetooth transmission (Appendix A.2). Thanks to
the ability to store a huge amount of energy (up to 20,000mAh) in small stickers –
we can satisfy the customers’ demands (Appendix A.3) and ensure that they can
make use of it even on foggy or rainy days. The lack of glass or plastic backs, USB
ports, or charging before use makes LIT a significant step up from its competitors, in

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 addition to the availability of various shapes and colors. Furthermore, LIT is an
environmentally friendly product that eliminates the dependence on non-renewable
energy resources. In short, not only can LIT meet people’s basic needs for
connectivity and updates, it can also create ultimate freedom and convenience when
charging phones (Appendix A.4).

III. Business Model Canvas:

1. Customer Segments:
Absence of customer segmentation, marketing may resemble investing a large sum
for making an ill-fitting garment. In fact, the top 20% of profitable customers generate
80% of earnings, whereas the 20% unprofitable ones account for 80% of expenses
(Duboff, 1992; Gloy, Akridge, & Preckel, 1997). Originating from the frustration of
aforementioned charging issues, we identified smartphone users who consider their
phones as an essential part of their daily lives for entertaining or working as the
primary target – among other segments – due to its large and growing market size,
and ease of market access (Appendix B.1). Larger cities are preferred for the initial
launch. Hypothetically, 30% of the urban citizens in Vietnam would need a portable
charger, or approximately 10.8 million potential customers (Appendix B.1). Our
expected conversion rate is 0.5%, representing 54 thousand users.

2. Value Propositions:
To better comprehend our customers' needs, we try to identify the values that drive
them. Those who rely on their phones to communicate and stay informed will
appreciate our automatic charging sticker for a seamless experience. Our sticker is
designed to be lightweight and compact, allowing our customers to use it anywhere,
anytime, and without any hassle. Moreover, we believe that by introducing an eco-
friendly product to the market, we are promoting a sustainable lifestyle. Finally, we
proudly offer the sticker in a variety of designs, defining it as an accessory that users
can use to highlight their personalities.

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3. Customer Relationships:
Our venture aims to build strong customer relationships. We will use advertising to
raise brand awareness and attract new customers. To promote our business, we will
work with micro-influencers who possess deep expertise in the electronics sector
(Appendix B.2) since they can reach a large number of customers interested in this
category quickly (Wissman, 2018). Retaining customers is critical to maximize
profits. Investing in customer service is vital to build trust between LIT Company and
our clients. We will also establish loyalty programs and seasonal promotions to keep
our customers committed to the brand (Appendix B.3). Collaborations with other
brands and influencers help retain existing customers as well as attract new ones.
Moreover, we also aim at growing customer relationships by increasing long-term
value through upselling strategy for more storage capacity products.

4. Channels:
As E-commerce share is receiving a lot of attention (Appendix B.4), online sales will
generate the most revenue for our company. To distribute the products, we would
choose Shopee, Tiki, and Lazada, regarding that they are the most transactional
websites and shopping apps (Kemp & Moey, 2019) (Appendix B.5). Besides that,
our primary channel would be electronics specialty retailers like FPT Shop, Mobile
World, or Dienmaycholon, with more than 60% share of distribution (Euromonitor
International, 2021) (Appendix B.6). Besides running our own advertisements on
social media platforms like Facebook, Youtube, Instagram, and TikTok to promote,
we also work with micro-influencers – acknowledging that affiliate marketing is now a
growing trend (Appendix B.2).

5. Key Partners:
A strong network is vital for LIT to succeed. The first and most obvious partner is the
manufacturers, chosen from at least 3 potential providers like Vietnam ABECO
Electronic Co. Ltd. or Daewoo Electronic Equipment Vietnam Co., Ltd, which will
manage from raw materials to finished goods (Vietnam Credit, 2020). Retail

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channels are also critical partners, particularly online platforms, which account for
the majority of our initial sales. Additionally, partnerships with social media sites and
micro-influencers are also emphasized to attract more customers and possibly sales.
Other partners include delivery services, banks, and e-payment firms.

6. Key Resources:
Identifying the right key resources can contribute deeply to the success of LIT.
Physical assets include third-party manufacturing facilities and warehouses, physical
offices, computers, and transporting vehicles such as cars, trucks. Since our
business is in the electronic industry, intellectual properties play the most imperative
role. These properties that require strict attention and protection include databases,
branding, patents, trademarks, and trade secrets since they can affect business
activities. Human capital for this form of venture consists of sales, marketing,
financing, and IT. This resource category can be adjusted after a period of an
ongoing operation. The financing covers activities that affect corporation cash flow,
which is demonstrated precisely in Appendix B.7.

7. Key Activities:
As an entrepreneur, we must be able to define key activities to undertake.
Specifically, we constantly manage the supply chain – from overseeing the sourcing
of raw materials to distributing final products to retailers and end-users. We work
closely with the manufacturer, monitoring the manufacturing process and performing
quality assurance. Our company also invests in marketing activities like market
research to keep up with trends, advertising on various platforms, and organizing
events to reach potential customers. In terms of sales tactics, we work hard on
processing online orders and providing exceptional customer care. Last but not
least, we invest in R&D to stay ahead of the curve, knowing that customer needs
change and new competitors may enter the market with similar products.

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 8. Cost Structure:
Our cost structure for the venture amounts to $262.113 (Appendix B.8). The capital
cost is the highest, estimated to be $174.000 to fund. The manufacturing expense is
the most expensive key activities cost. We decided to sign a third-party contract with
the manufacturing facility to produce 5,000 units initially, with the cost of $8.7 for
each product. Training and wages also account for a high proportion of the start-up
cost. Our budget for human resources is worth about $6.087 for 5 employees,
including benefits and compensation. The number of employees is expected to
increase after 6 months of operation.

9. Revenue Stream:
With the embrace of the transaction-based model, proceeds from product sales
remain as the main source of revenue for our business. By adopting the use of both
the cost-plus and the odd-even pricing strategy, we have arrived at the decision to
charge our stickers for 527,000 VND/unit (approximately $23/unit). Through
investigations and calculations, this price allows us to compete with other
competitors, while still being able to deliver the value that our customers are willing
to pay for. Currently, we are expecting a revenue of $166,750 in the first year – with
7250 units sold. With our vision to quickly expand our business nationwide and
through different channels, we can cover all costs and generate profits within the
next 3 years (Appendix B.9).

IV. Lean startup principles:

Overall, we have applied the lean start-up strategies of Blank (2013) to develop our
business model using the customer-centric approach. Apart from researching
people’s trouble and making assumptions of how we can serve that market, LIT
Company proactively tests the product-market fit by building a minimum viable
product (MVP). These products will just include the basic features that the customer
would demand: a rectangle solar panel that can be stuck on the back of their phone
and cover the majority of it, integrated with a bluetooth chip. Indeed, by approaching
the early adopters in this MVP test, we can validate whether our product’s

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functionalities, design, and other aspects can meet their expectations or not.
Defining ourselves as a lean startup, we follow an iterative process of empathize,
define, ideate, prototype, and test - which allows us to progressively modify our
products to best suit their needs within the 2-month launching. Whenever above
70% of consumers complain about an issue, we will take action to solve the new
hypotheses – using both divergent and convergent thinking. Most importantly, we set
our sights on searching for a scalable business model – by manufacturing a
conservative rate of products in the first steps, then focusing on marketing and
quickly expanding our business with speed and efficiency. Below is our business
model canvas:

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V. Conclusion
We anticipate that LIT will not only solve current charging issues, but will also become
the future of the power bank market. Following that, as LIT grows in size and attracts
additional capital, the LIT entrepreneur envisions increasing sales and establishing a
sustainable position as a market leader.

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VI. References

Anshari, M., & Alas, Y. (2015). Smartphones habits, necessities, and big data
challenges. Journal of High Technology Management Research, 26(2), 177–185.
https://doi.org/10.1016/j.hitech.2015.09.005

Blank, S. (2013). Why the Lean Start-Up Changes Everything. Harvard Business
Review. Retrieved 23 October 2021, from https://hbr.org/2013/05/why-the-lean-start-
up-changes-everything

Bond Brand Loyalty. (n.d.). The 2016 Bond Loyalty Report. Retrieved 23 October
2021, from
https://info.bondbrandloyalty.com/hubfs/Bond_Brand_Loyalty_2016_Loyalty_Report
_Infographic.pdf?t=1512069435103

Cao, L. L. (2021). Digital transformation already taking place worldwide. Viet Nam
News. Retrieved 20 October 2021, from
https://vietnamnews.vn/economy/1059962/digital-transformation-already-taking-
place-worldwide.html

Duboff, R. S. (1992). Marketing to Maximize Profitability. The Journal of Business

Strategy, 13(6), 10–13. https://doi.org/10.1108/eb039521

Euromonitor International. (2021). Portable Consumer Electronics in Asia Pacific.

https://www-portal-euromonitor-com.ezproxy.uws.edu.au/portal/analysis/tab

Gloy, B. ., Akridge, J. ., & Preckel, P. . (1997). Customer lifetime value: an

application in the rural petroleum market. Agribusiness (New York, N.Y.), 13(3),
335–347. https://doi.org/10.1002/(SICI)1520-6297(199705/06)13:33.0.CO;2-1

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Hivency. (2021). Infographics: the influencer pyramid. Retrieved 23 October 2021,
from https://blog.hivency.com/en/infographic-hivency-influencer-pyramid

Kemp, S., & Moey, S,. (2019). DIGITAL 2019 SPOTLIGHT: ECOMMERCE IN
VIETNAM. Datareportal. Retrieved 23 October 2021, from
https://datareportal.com/reports/digital-2019-ecommerce-in-vietnam

Kemp, S. (2021). DIGITAL 2021: VIETNAM. Datareportal. Retrieved 23 October

2021, from https://datareportal.com/reports/digital-2021-vietnam

Mordor Intelligence. (2021). POWER BANK MARKET - GROWTH, TRENDS,

COVID-19 IMPACT, AND FORECASTS (2021 - 2026). Retrieved 20 October 2021,
from https://www.mordorintelligence.com/industry-reports/power-bank-market#faqs

Nguyen, L. T. M. (2021). State Of Influencer Marketing in Vietnam 2020. 7SAT.

Retrieved 23 October 2021, from https://blog.7saturday.com/free-download-state-of-
influencer-marketing-in-vietnam-2020-tu-7sat

Probstl, A., Islam, B., Nirjon, S., Chang, N., & Chakraborty, S. (2020). Intelligent
Chargers Will Make Mobile Devices Live Longer. IEEE Design and Test, 37(5), 42–
49. https://doi.org/10.1109/MDAT.2020.3006799

Samuel, P. (2021). Vietnam’s Digital Transformation Plan Through 2025. Vietnam

Briefing. Retrieved 20 October 2021, from
https://www.vietnam-briefing.com/news/vietnams-digital-transformation-plan-
through-2025.html/.

The World Bank. (n.d.). Vietnam | Data. Retrieved 20 October 2021, from
https://data.worldbank.org/country/vietnam

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Vietnam Credit. (2020). Top 10 largest electronic components manufacturers in
Vietnam. Retrieved 20 October 2021, from https://vietnamcredit.com.vn/news/top-
10-largest-electronic-components-manufacturers-in-vietnam_13807

Wissman, B. (2018). Micro-Influencers: The Marketing Force Of The Future?.

Forbes. Retrieved 22 October 2021, from
https://www.forbes.com/sites/barrettwissman/2018/03/02/micro-influencers-the-
marketing-force-of-the-future/?sh=9ccfe5f6707b

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VII. Appendices
Appendix A
Appendix A.1 Problems with current smartphone charging solutions
According to Probstl et al. (2020), current charging solutions encourage users to
develop habits that cause battery aging like overnight charging, constant plug-in
throughout the day, charging via a laptop, etc. We also conducted a small survey on
smartphone charging issues from 94 smartphone users that has a similar result. The
survey also showed that most of the respondents are disturbed by the out-of-battery
situation of their phone for its interruption of their communication, entertainment,
studying, or working process.
Figure 1: Survey results

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Figure 2: Empathy map

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Appendix A.2 LIT solution visualization

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Appendix A.3 Desire features for portable chargers
Of 94 respondents from our quick survey about smartphones’ charger, huge storage
and convenience is what they value the most for a power bank

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Appendix A.4 Product’s SWOT analysis

Strengths Weaknesses

● The sticker sticks directly to ● Takes a little more time to store

people’s phones, no worries about power on gloomy or foggy days.
forgetting or losing it. ● Once the sticker has been stuck
● The sticker has a lightweight yet to the phone, it can not be
compact design, easy to be carried removed without having damages.
around. (People need to replace a new
● The sticker runs on solar power, one if they wish to use the new
partly reduces energy consumption, models)
and is good for the environment. ● Cannot be utilized on non-
● It can automatically charge people’s smartphones.
phones when they are down to 20%
battery.
● It is user-friendly – easy to use with
Bluetooth.
● It has huge storage – up to
20000mAh.
● It comes in various designs.

Opportunities Threats

● Rising of the potential market, ● Threats of substitutions.

demand for this product can ● Big companies can enter the
increase significantly. market – because they see the
● Lean startup – easily adapt to potential and because the EU has
changes in customers’ demands. proposed new regulation of using
● First-mover advantage – able to a standard charger worldwide.
create brand positioning and keep a
high price.
● Stickers that works for other smart
devices such as laptop,
smartwatch, tablets, etc.

Appendix B

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Appendix B.1 Identification of customer segments
● Segments identified and their value proposition:

No. The specific segment Value proposition

1 Smartphone users who consider their - The convenience of an automatic

phones as an essential part of their charger
daily lives for entertaining or working - No interruption while using their
phones throughout the day
- 24/7 chargeable
- High durability
- Easy to use/connect
- Compact
- Efficiency at work

2 Students who use smartphones, - Easy to use

tablets, or laptops as a tool for - Diversified patterns
communication, entertainment, - Increase efficiency
studying - Compact

3 Smartwatch/wearable, and other digital - Compact

devices users - Long usage time without
plugging in

4 Companies that have their - Efficiency at work

Salespersons or waiters/waitresses - No interruption while making
use smartphones or tablets as a crucial deals/orders
sales tool - Compact
- Easy to follow their customers

5 Electronic retailer: MWG, FPT Shop, - Expand their product options

Viettel Store, etc - Complimentary for their existing
offerings

6 Advertising, marketing, or event - No interruption due to power

agency that need backup batteries for shortage that could lead to failure
their smart LCDs or any other devices during an important event
with Bluetooth connection - High power storage

● The first segment is believed to be the most appropriate after consideration of the
following criteria:

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○ Big market size: Vietnam’s population reached over 97 million in 2021
with 37.34% of that being urban citizens, equivalent to more than 36
million people (The World Bank, n.d.). Moreover, according to Newzoo
(n.d.), abstracting from their annual Global Mobile Market Report 2020,
Vietnam ranked 10th in the world's highest smartphone users with 61.37
million. Due to the large proportion of mobile phone users in Vietnam, the
demand for solar-bluetooth charging stickers is promisingly high.
Figure 3: Top 10 highest smartphone users countries (Newzoo, n.d.)

○ Growth of the market size: The digital transformation that has been
happening in Vietnam, with a push from the event of Covid-19 (Samuel,
2021), promises an increasing demand for digital devices. Online
shopping, e-payment, internet banking, online education, work-from-home,
etc., are being developed at a faster rate than ever before (Cao, 2021). As
a result, the demand for constant smartphone use is increasing.
○ Power bank market:

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 ■ The idea of “work from anywhere” is becoming the workplace trend.
To offer a great touchless experience, workplaces are embracing
cutting-edge technology-enabled wireless charging (Mordor
Intelligence, 2021). As a result, wireless charging is anticipated to
propel the growth of the power bank market (Mordor Intelligence,
2021).
■ Increased usage of power banks capable of fast charging is likely to
boost market expansion for power banks with capacities ranging
from 10,000mAh to 20000mAh (Mordor Intelligence, 2021).
■ The Asia-Pacific area is predicted to have the fastest growth due to
expanding consumer electronic device usage, particularly
smartphones and tablets, accompanied by the rising disposable
income and the growing urban population (Mordor Intelligence,
2021).

● Market accessibility: The target market is expected to be reached at ease for

the growth of internet connection in Vietnam. By January 2021, in Vietnam, there
were 68.72 million internet users (70.3 percent internet penetration), 72 million
social media users (73.7 percent of the total population), and 154.4 million mobile
connections (157.9 percent of the total population, with many people have more
than one mobile connection) (Kemp, 2021). Consequently, digital marketing is a
potential strategy for our business to communicate with this segment.

Appendix B.2 Impact of micro-influencers

Micro-influencers have proven to be one of the most powerful groups of influencers. The
tendency of working with these individuals has been booming since 2018 (Nguyen,
2021). In Vietnam, micro-influencers have more than 4.000 channels. Although the
audience reach is not wide compared to macro and mega influencers, micro-influencers
still gain a potential amount of followers (range from 10K-100K followers). They
maintain high interaction with their followers and their contents are deeply relevant to

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the brands. Therefore, their audience is considered to be the “right segment” for our
business (Hivency, 2021).
Figure 4. The influencer pyramid (Hivency, 2021)

Appendix B.3 Benefits from loyalty programs

Loyalty programs are one of the most effective tools in retaining customers. The
loyalty program can increase customer satisfaction to 43% in the retail industry
according to Bond Brand Loyalty (n.d.). Consumers are willing to change their
purchasing behaviors, with 66% of members paying more in order to maximize
points. Loyalty programs are proven to deepen relationships between business
and consumers, as shown in the figure below (Bond Brand Loyalty, n.d.)
Figure 5. Loyalty programs deepen relationships (Bond Brand Loyalty, n.d.)

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Appendix B.4 E-commerce share continues growing, especially in the pandemic
(Euromonitor International, 2021)

Appendix B.5 Top transactional websites and mobile shopping apps (Kemp and
Moey, 2019)

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Appendix B.6: Portable Consumer Electronics in Vietnam: Distribution by
Channel 2016-2021 (Euromonitor International, 2021)

Appendix B.7: Cash flow statement (Vietnamese currency)

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Figure 6. Cash flow in 2022 (Monthly)

Figure 7. Cash flow in 2023 (Quarterly)

Figure 8. Cash flow in 2024 (Quarterly)

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Appendix B.8: Start-up costs

Appendix B.9: Profits and Losses

Figure 9. P&L in 2022 (Monthly)

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Figure 10. P&L in 2023 (Quarterly)

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Figure 11. P&L in 2024 (Quarterly)

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