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8/2/2019 Team 59 Report
1/8
Bamboozle- Bamboo Home Construction -
Global Entrepreneur Experience 2009Business Concept Proposal
Team 59:Diana Marcela Oleya Mesa (Columbia), Maria Alejandra (Columbia), Md.Wasequzzaman (Bangladesh), Ibtihaj Samad Nabil (Bangladesh), ElysseEgerman (USA), Jack Cullen (USA), Timothy Newton-Howes (NewZealand)
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Table of ContentsExecutive Summary ..................................................................................3Business Overview ...................................................................................3
The Housing Problem in Latin America ......................................................................... 3About Bamboozle ......................................................................................................... 3Goal Summary .............................................................................................................. 4
Market Analysis . . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . .. 4Location....................................................................................................................... 4Target Market...............................................................................................................5Competitive Advantage.................................................................................................5
Business Strategies ..................................................................................5Thee Resource - Bamboo............................................................................................. 5Market Strategy............................................................................................................6Distribution and Transport........................................................................................... 7
Financial Overview ...................................................................................7Profitability Spreadsheet..............................................................................................8
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1. Executive SummaryBamboozleisasolutionfortheshelterneedsofthepoorindeveloping
countries.Ourcompanywillconstructhomesforthesepeopleatpricesthatareonlyafractionofthecurrentpricetobuildahome.Theyneednotbeelaboratehomes,
butsomethingthatisstrong,durable,andmostimportantlywillprovideshelterfor
thosewhohavenone.Bambooismuchcheaperthanothermaterialsonthemarket,
allowingustobuildourhomesforpeoplewhonormallywouldbeunabletoafford
them.Wearecommittedtogivingbacktothecommunityaswell,andwewilloffer
todonatethebuildingofonesmallhomeforeveryfivethatwebuildina
community.2. Business Overview2a.TheHousingProbleminLatinAmerica
HousinginmostofLatinAmericahasbeenasevereproblemfordecades
upondecades.Manyofthehomeslackproperinfrastructure,areextremely
overcrowded,andaretooexpensiveforthepeopleofthesecountriestoafford.
Becauseofthepoorconditionsofthesecountries,manyhomesarebuiltwith
impropermaterialsthatdecayatquickrateandarecompletelyunsustainable.1The
housingandfinancialcrisisthathittheUnitedStatesandrippledthroughtherestof
theworldin2008hasonlyexacerbatedthissituation.CountriesinLatinand
CentralAmericahavebeenhitharderthanmostbecausetheyhadhousingproblems
inurbanandespeciallyruralareaspriortothecrisis.Thecrisishasonly
deterioratedthesituationmorebecausefundinghasdissipatedandunemployment
hasskyrocketed.
2b.AboutBamboozle
ThesecountrieswithinLatinAmericahavemanypeoplewithhousingneeds
thatarenotsatisfiedefficientlybytheirgovernments.Theconstructionsectoris
focusedonhousesforpeoplethatcanaffordthem
andtheyforgetaboutthepeoplethatdonothave
themoneytopurchaseahome.Forexample,the
Colombiangovernmentgivesubsidesforpeople
withlowincomesintheurbanareasofthe
country,buttheruralareasarenot.Therural
areasarewherethereismoreofanecessityfor
homes.Ourcompanyisheretohelpthiscrisis
becausewecanprovidehomesatamuchlower
costwiththeuseofbambooasourmainmaterial.
1http://www.unu.edu/unupress/unupbooks/uu23me/uu23me0c.htm
GuaduaBamboopoles
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WealsoplantoprovideourservicestodevelopedcountriessuchasFrance,Italy
andSpaintoprovidelowercosthomes,butwewillfocusoureffortsinLatin
America.
OurcompanywillserveasaconstructioncompanyinLatinAmericathat
usesbambootobuildourhomes.AtBamboozle,webelievethatwecanmakea
differenceonehouseatatimethroughtheconstructionofenvironmentallyfriendlyhomesthatarequicktoproduce,easytoerect,andlonglasting.Wewillaccomplish
thisbybuildingpredesignedecohousesfromGuaduabamboo,whichgrowsvery
quickly,andoneofthestrongestvarietiesofbamboo2,whichretainallthemodern
comfortsyouwouldexpectfromusingotherbuildingmaterials.Ourhouseswillbe
stronginthefaceofadversewindconditionsandareenvironmentallysustainable,
asweonlyrequiretheuseofbamboo3to6yearsoldforbestresultsin
construction3.
Additionally,hereatBamboozle,webelieveingivingbackaswell.Duetothe
widespreadandcheapnatureofbambooand,unfortunately,thelargeamountof
homelessnessinLatinAmerica,wewilldonateonehometoahomelessfamilywithinLatinAmericaforeveryfivethatwebuild.
2c:GoalSummary
Wewillprovideafastandefficienthomeconstructionservice.Wewilldiffer
fromothersbecauseofourchoiceofworkmedian,GuaduaBamboo,whichallows
ustostakeourplaceinthemarketandseparateourselvesfromotherconstruction
contractors,thereforeprotectingourprofitsandplaceinthemarket,sinceweare
notdirectlycompetingagainstthem.Ourhomeswillbesoughtafterand
comfortabletolivein,whileprovidingthepeaceofmindtoourcustomersthatthey
havehelpedpreventunnecessarydeforestationandhavemadeasustainable
contributiontoreducingtheworldscarbonfootprint.3. Market Analysis
3a.Location
Ourcompanywillbeofferingafewdifferenttypesofproducts,onebeing
beautifulchaletsofbambooforcountriessuchasFrance,Italy
andSpain,andtheotherproductbeingcomfortablehousesbuilt
atlowcostsmadeofbamboo.ThissecondproductisforpoorpeopleindevelopingcountriesCentralAmerica,suchasCosta
Rica,Panama,theDominicanRepublicandPuertoRico,aswellas
inColumbia.
2http://en.wikipedia.org/wiki/Guadua3http://www.bambooliving.com/faq.htmlConstruction
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Themainfocusofourcompanywillbenotbeindevelopedcountries,butin
thepoorercountriesofLatinandCentralAmericabecauseourgoalistohelpthese
countrieswiththeirepidemichousingproblems.
3b.TargetMarket
OurtargetmarketisfamilieswithlowresourcesindevelopingcountriessuchasColombia,CostaRica,Panama,DominicanRepublicandPuertoRico,who
liveinruralareasnotinurbanareasandneeda
placetoliveonalowercost.Wechosetotarget
thesemarketsfirstbecauseofthehighpovertyrate
intheruralpopulationofthesecountries.
3c.CompetitiveAdvantage
Identifyingacompetitiveadvantageofacompanythatdoesnotexistisvery
difficultbecausewecannotanalyzeitsperformanceinthemarket.However,taking
intoaccountourstrategies,wecansaidthatourcompetitiveadvantageisthat
bambooisaverylowcostproductforconstruction,whichallowsustocompetein
themarketwithalowercostproduct.
Anotherkeycompetitiveadvantagecomesthroughthediversityinmarkets
thatwearesellingto;andtheabilitytospreadcostsoverthecombinedmarkets.WecanusetheprofitsfromsaleofluxuryecohomesandchaletsinItalyFranceand
Spain,toundercutthecostswefaceinColombiaandCentralAmerica.Inthisway
wecanremaincompetitiveinbothmarketsandwillincreasetheabilitytomake
profitsinbothmarkets.
4. Business Strategies4a.TheResourceBamboo
Therearemorethan70differentgeneraofBamboointheworldthataredividedinto1,000species.Theyarefoundinverydiverseclimates,rangingfrom
thecoldmountainsofAsiatothehottropicalregionsofLatinAmerica.Itisthe
fastestgrowingplantontheplanet,reachingamaximumgrowthrateofmorethana
meterperhourattimes.Bamboohasamyriadofuses,mostlydependantonitsage.
4EconomicCommissionforLatinAmericaandtheCaribbean.
PovertyRate(%ofRuralPopulation,2006)4CostaRica 20.4Panama 30.8
PuertoRico 45.4
Colombia 46.8
DominicanRepublic 49.5 AcurrentruralhomeinPanama
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TheidealageforGuaduabambootobeharvestedforconstructionis36years,afar
cryfromallothertimberplantations,whichhaveacycleof1060years.5When
treated,bambooformsaveryhardwood,whichislightweight,stable,and
exceptionallydurable.6Itisusedinelementsofhouse
construction,scaffolding,asasubstituteforsteel
reinforcingrodsinconcreteconstruction,andsoon.4b.MarketingStrategy
Over1billionpeoplearoundtheworldareaffected
byinadequateliving conditions.WechosetofocusmostofoureffortsinLatinAmericabecausemanyofthecountries
populationsareindesperateneedofdecenthousing:Peru
53%oftheirpopulation,Brazil45%oftheirpopulation,
andColombia43%oftheirpopulation.Constructinghouses
outofbamboowillworkinthesecountriesbecauseitis
cheap,strong,andoneofthemostrenewableresourcesontheplanet.Withthat,the
aestheticsofbamboocreationwillpresentanidealsolutionthatwillreplacetraditionallumber.Ourmainmarketingstrategyistoeffectivelycommunicatethese
advantagestoourpotentialclients.Wewillhavetomarketdifferentlyinthe
differentregionsthatwearetargeting.
WeplantobuildluxuryhomesinEurope(France,Italy,Spain,etc.)and
thereforewewillbemarketingtheenvironmentalimpactandlowcostofbamboo
housing.Wewillreachourtargetmarketbycommunicating
throughtraditionalwesternmarketingmeanssuchas
newspaperadvertisements,magazineadvertisements,
flyers,andwordofmouththroughpartneringwithreal
estatecompaniesorenvironmentalgroupsinEurope.We
willconstructmodelhomesinorderforconductingtours
effectivelydemonstratethestrengthandpotentialbeautyof
bambooconstructionfromBamboozle.Homesbuiltinthis
regionwillgainahigherprofitthanhomesbuiltintheLatin
Americanregionandthereforewewillalsocommunicate
thatbypurchasingahomebuiltbyBamboozle,apercentage
oftheprofitsfromtheirhomegotohelpfinanceaportion
ofahomeinLatinAmericaforfamiliesandindividualsinneed.
IntheLatinAmericanregion,wehavemoreofadirectmarketingstrategy.In
ordertoaccuratelycommunicatethebenefitsthatourcompanyisoffering,wewill
besendingamarketingteamtotownsandvillagestospeakoneononewiththecommunitiesaboutourhousingstructures.Inanefforttoenterthemarket,insome
villageswewillbuildstructuresthatwillbedonatedtothecommunitysuchas
communitycenters,placesofworship,orbasicshelters.Wearealsoplanningon
partneringwithlocalgovernmentsinordertocreatealargermarketingimpactwith
5http://en.wikipedia.org/wiki/Plantation6http://www.bambooflooring.co.nz/index.php?page=hardness
FloorPlanofaBambooHome
BambooFlooring
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ourmessage.WefeelthatthefamiliesandindividualsinLatinAmericathatarein
needofhousingwillhaveagreaterunderstandingofthequalityandbeautyof
bamboohousingiftheyareabletoexperienceoneforthemselves.Thisnotion,
coupledwiththeideaofaffordabilitywillallowustogainalargepercentageofthe
marketintheregion.
4c.DistributionandTransport
IntheLatinAmericanregion,thelackofinfrastructure(roads,warehouses,
andcommunicationsystems)willnotaffectBamboozlenegativelybecausethese
manydifferentspeciesofbambooarenativetothisregion.Theresourceswillnot
needtobetransportedveryfar.Becauseenvironmentalsustainabilityisimportant
toBamboozlewearededicatedtoresearchinganddevelopingthemosteffective
waystotransportanddistributeresourcesforourbuildingprojectsviashipsand
trucks.Wearealsoplanningonacquiringlandinwhichtoplantbambooinareas
thatarenotasaccessible.
5. Financial OverviewThemaincoststhatwewillbeincurringinBamboozleatstartupare:
Purchasingorobtainingalongtermleaseoflandtostartdevelopmentinourownrenewableplantations
ThecostsinacquiringateamofbuildersinbothEuropeandLatinAmerica Contractingasmallteamofarchitectsandengineerstodevelopaportfolioof
kitsethousesforsaleinLatinAmericaandadjustablekitsethomesand
chaletsforsaleinEurope.
SecuringasupplyofacceptableGuaduaforuseinthefirst3yearsofoperation
PurchaseofmachinerytomillandtreatthebambooOngoingCostswillbe:
Wagestobuilders Bambooforthefirst36years Maintenanceonthebamboo LegalExpensesandMarketAdvice.Thisisimportantaswewillbedealing
withtwocompletelyseparatemarketsandlegalsystems,wewillrequire
adviceandcollaborationofspecificstrategieswithlocallegalandadvertising
agencies.
Treatmentofbamboo PremiserentalinbothLatinAmericaandEurope Transportationofbambooandemployeecosts CostofdonatedhousesinLatinAmerica
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OurRevenueswillbethesaleofhousesinLatinAmericaandEuropetobegin
with,however,onceplantationsareestablishedintheselocations,wewillbeableto
diversifyintofurthercountriesandareasofthecountrieswearealready
establishedin.Whiletransportationcostswillrise,wewillbeabletogainextra
saleswithagreaterserviceareatocoverthis.
Asyoucansee,thisventurewillpresentchallenges,however,willquicklybecomeprofitable,andasourprofitabilityrises,wewillbeabletoincreaseour
philanthropicdonationsinColombia,andalsoothercountriesincentralAmerica.
Hereisanstudyofourprofitability:
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