Business Strategy:
Outline of status / Accomplished:
1.) Reliance Tech for websites
2.) Priority One for payment and Credit Card Processing
3.) Verio as the online ramp through DSL
4.) Signo as the realtime pipeline for Credit card Processing
5.) carenetsolutions.com for a complete scheduling service for doctors to be cbqcare.com in the near future plus watchmegrow.com , e-travelinsurance.com , mattressgiant.com ,
6.) bid4it.com has been revamped
Missing to date to finsh the cart before the horse scenario.
1.) Content Providers
2.) Fed # for EFTs/Credit Card/ACH processing
3.) On line digital signature for Payment processing
Objective: CyberQuest's objective is to become the dominant business to business Virtual Marketplace on the Internet. CyberQuest also intends to leverage its position as a leading Internet channel for brand name merchandise to build strategic relationships with vendors who will use the Virtual Marketplace ultimately to purchase from each other. To that end, the Company is seeking additional capital in order to pursue the following key strategies:
Create Market Awareness and Brand Recognition: Management believes that bid4it will become a leading brand name in on line commerce(On Novemebr 26, 1999 I discovered bid4it.com has been revamped and apparently due to relaunch in the near future with automobiles, boats and computers as the listed items of interest). CyberQuest operates in a market in which its brand franchise is critical to attracting high quality vendors and a high level of business customer traffic. Accordingly, management's strategy is to promote, advertise and increase its visibility through a variety of marketing and promotional techniques.
1.) The formation of strategic relationships with major Internet Service Providers (ISPs)(Note: Nov. 1, 1999 entered into an agreement with Verio that allows CBQ, Inc. to offer nationwide internet access, which this will work as the onramp through DSL connection so no ISP is required by CBQI), use of search engines and directories and advertising on leading Web sites and in targeted trade publications will complement an ongoing public relations campaign.
2.) In particular, CyberQuest will establish relationships with leading on line content providers and commerce companies to attract traffic to its sites, secure merchandise supply and build competitive barriers to entry.
(Note: In negotiations, presently for content providers)
Strategic Relationships:
EDS. EDS represents a significant opportunity for CyberQuest. As the licensor of the core technology, EDS has a vested interest in CyberQuest's success. In addition, EDS is potentially a large customer as the original code was developed for EDS' internal use.
Search Engines. Management has conducted short-term tests of banner advertising on both Yahoo! and Infoseek. In 1999 CyberQuest will focus on increased use of banner ads on all major search engines. Additionally, where available, CyberQuest will contract for applicable key words.
Portal Sites. Within its projected budget, CyberQuest will initiate discussions with major content providers (portal sites), such as America Online
(AOL/Netscape), Excite, Lycos, Ziff Davis and ESPN. Bid4it was chosen as an Excite certified merchant in the spring of 1998. With the intent to build site traffic levels, management will use the pattern established by other high traffic commerce sites such as Amazon.com, Onsale and FirstAuction, among others. This may take the form of key words, links, banner ads, or some form of revenue sharing as demonstrated by AOL's interest in this area.
Advertising Networks. Management is in early discussions with an Internet start up advertising network, which it believes will re write the book on Internet advertising, to form a joint venture or to establish most favorable early adopter terms.
Vendors. All sellers on bid4it are actively encouraged to promote the site where possible, as it is in the best interest of all parties. This can take the form of links exchanges or banner ads on seller Web sites, press releases, or direct promotion in alternative advertising. Commission arrangements can be made with vendors who want to put links to bid4it on their Web sites. Amazon.com has proven this to be a highly successful arrangement with book publishers.
Advertising: Management believes that the most efficient and effective advertising available is on the Internet itself. Consequently, in 1999 the bulk of CyberQuest's ad budget will be committed to on line advertising, primarily banner ads, and links and key words where available. CyberQuest will employ the services DoubleClick, Inc., 24x7, or a similar media company which specializes in Internet advertising, to assist in ad positioning, rotation, and management. Based upon its rather limited operating history and experience with banner ads, management believes that its conservative assumptions demonstrate that its revenue goals can be achieved in 1999.
Promotions: In order to encourage site visitors to bidder conversion, CyberQuest will utilize a variety of promotions and product information essays from industry experts. CyberQuest will solicit seller participation in the future in order to increase promotion variety and defray associated costs.
Public Relations and Print Media: To date, public relations and print media have been focused on the original launch date of bid4it and related events.
CyberQuest has received favorable press as shown. In the future, focusing on brand awareness and demographic trafficking, all non Internet advertising will feed off and funnel to CyberQuest s Internet advertising campaigns. Management has developed a publicity work schedule for 1999 to insure timeliness in meeting future closing dates for advertising and editorial (article subject matter)calendars.
Vendors: CyberQuest's ability to attract, secure and obtain brand name products for its bid4it Virtual Marketplace is key to its success. Management plans to
build its business to business marketing staff to facilitate and secure long term relationships with a wide variety of vendors.
CyberQuest seeks to be its vendors' preferred choice for selling both current and excess merchandise. CyberQuest intends to strengthen its vendor relationships by offering more convenient service through its automated order processing, superior logistical arrangements and prompt payment processes(Note:On April 9, 1999 the acquisition of Priority One) .
In addition, CyberQuest believes its continuous Virtual Marketplace process makes it a convenient sales channel for
vendors to liquidate large volumes of merchandise; selling to resellers, corporations and consumers simultaneously. Management believes a broad array of
merchandise and commodities can be sold effectively through its bid4it Virtual Marketplace format. Unique and rare item vendors will also find a home at
bid4it. CyberQuest believes the types of products which could be sold over the bid4it Virtual Marketplace is limitless and the sale of services will eventually
be included. Management believes vendors are attracted by the number of buyers who are searching for perceived bargain prices and the inherent advantage of setting the
price and controlling the process. Accordingly, CyberQuest intends to continue offering vendors the opportunity to sell excess, new/current or one of a kind merchandise at the best prices available in the market and to automate the process as fully as possible.
Management believes both industrial and consumer buyers are attracted by the wide array of opportunities to buy desired merchandise at bargain prices and the knowledge that it is a secure transaction. Management believes that a significant opportunity exists to develop incremental revenue, including expanding its product mix with other products that are well suited for the Internet's electronic format.
Production Distribution: CyberQuest's primary responsibility through bid4it is to manage the bid and ask match transaction set. Sellers are contractually responsible for inventory, shipment and management of their portion of bid4it site operation. In those cases where sellers desire to relinquish bid4it operation, CyberQuest will establish partnering arrangements/strategic
relationships with key manufacturers and distributors who will drop ship to customers or consign to bid4it's contracted, fulfillment warehouse. This inventory less distribution is expected to produce potentially higher margins and will serve to increase the product mix and the number of items offered for sale.
Sub Licensing Core Technology: CyberQuest will sub license its proprietary software to third parties and will operate and maintain the derivative versions for the sub licensors on a fee and royalty basis. Sub licensing will be to selected markets that complement and add to bid4it, but do not impede its intended growth or operations. CyberQuest has completed a sub license royalty
agreement with a corporation known as Bid4it's, Inc. This company intends to pursue the brokered integrated circuit and component marketplace.
Web Sit Advertising: Cyberquest intends to leverage the high level of traffic on its Web site to provide an attractive reason for third party advertising on its Web site. CyberQuest will use the services of an experienced media firm to market its site real estate, and expects to receive approximately $10 $25 per thousand impressions sold. Management believes that the incorporation of business to business site advertising will add significant dollars to its revenue stream.
Web Sit Development: (Note: On March 15, 1999 the acquisition of Reliance Technologies reliancetek.com & Topher Net topher.net) As an early player in Internet Web site and E Commerce development, management garnered many awards and maintains a high level core competence in the field. CyberQuest is capable of acting as its own project manager in Web site development and software development service projects for its continuing operations. This core competence is critical to future success given the importance of its Web sites in attracting buyers and sellers to use its services. Although not a principle element of growth, CyberQuest will provide certain of the services to bid4it customers on a fee basis.
Patent pending Proprietary Software: CyberQuest believes that one of its competitive advantages is its internally developed patent pending proprietary software that is specifically designed for its Internet Virtual Marketplace. CyberQuest has significantly enhanced the original software which was acquired from EDS on a royalty license basis. EDS expended in excess of thirty man months
in the development of the code and database structure. CyberQuest has agreed to pay EDS a 5% royalty on net revenues over a maximum period of eight years. All
derivatives are the exclusive property of CyberQuest, which has, based upon its ownership of all derivatives, cross licensed bid4it to EDS. EDS will pay CyberQuest a 20% royalty on any revenue derived from sublicensing the derivative code. The software is capable of conducting automated mini markets for millions of products and customers, managing bids and asks, processing customers' orders and payments, coordinating and performing order fulfillment and providing customer support functions. CyberQuest intends to enhance its bid4it software to provide
an even more compelling buying and selling experience, to improve efficiency within the vendor interface and create an experience which bidder and seller alike will associate with increased profits.
Bid Placement: Bid4it provides a graphical user interface (GUI) interface for buyers to enter bid requests. The buyer enters a bid either by accepting a
seller's asking price for a particular product, or by specifically setting a price at which they wish to purchase the product. The original buyer who placed
it may update the bid at any time. Except for shipping information, the buyer's identity remains confidential. A bid includes an effective and expiration date, a minimum and maximum order quantity, and the unit price the buyer is willing to pay. The buyer on private, password protected, unique bidder home pages manages all bids and orders. Buyers will also be able to establish buying criteria and let automated processes complete the transaction.
Ask Placement: Bid4it provides both an EDI (Electronic Data Interchange)for batch transactions and a GUI interface which sellers may use to enter asking prices and floor prices (a confidential minimum the seller is willing to accept). The seller is responsible for maintaining the inventory levels to support the asks placed on the system. The asking and floor prices may be updated at any time by the seller that placed the ask price. Once the proper data is input, by batch or GUI forms, bid4it processes are completely automated, or may be entered from the seller's home page. An Ask includes an effective and expiration date, a minimum and maximum order quantity, and the minimum unit price the seller is willing to accept. The seller may also specify a required lot size. Sellers manage the process through unique, password protected seller home pages. In addition sellers may specify an unlimited number of sub sellers or agents, each with their own home page. In this manner a complete sales/marketing department can be active on bid4it with each product specialist having complete control of the products under his jurisdiction.
CyberMarketMaker Patent Pending: Bid4it is an automated quotation system (Virtual Marketplace) for products and services modeled after the NASDAQ stock exchange. Bid4it is the market maker for the products listed on the site. The bid4it CyberMarketMaker buys and sells, but to two distinct groups. Sellers will also most likely be buyers, and buyers will also be likely to become sellers; therefore, there is no bid4it spread between asks and bid prices. CyberQuest will make its money based on terms negotiated with the sellers. All asks and bids for a particular product are placed in a corresponding book, and processed in a FIFO manner. CyberMarketMaker evaluates market activity, and, in response to orders and bids, moves the asking prices up or down, but never below the seller's floor price. CyberMarketMaker matches bids and asks in an asynchronous way. Logically, CyberMarketMaker exists for each defined product in the bid4it system. When a bid and ask are matched, bid4it verifies buyer payment and places a purchase order with the seller.
Notification: Bid4it's default communication with buyers and sellers is by e mail and hypertext markup language (HTML) forms. In the case of sellers, an EDI capability is offered to facilitate efficiency. When a bid and ask are matched, a message is sent to the successful bidder, and a purchase order is placed with the seller. Upon shipment, the bidder receives e mail notification and a copy of the receivables (credit card) invoice. Special notification options are offered to sellers for exception case processing. For example, when a bid quantity exceeds a pre defined amount and the bid price does not match the seller's asking price, the seller may receive notification, in addition to e mail, by fax, pager or telephone call.
Trademarks: CyberQuest has trademarked bid4it and CyberMarketMaker, and will vigorously defend any infringement against the bid4it patent claims for market
maker functionality and the bid4it look and feel. Among others, CyberQuest owns the domain names: bid4it.com, goodstuffcheap.com, shop4it.com, dallasftworth.com and cbq.com. |
