Sample Business Plan Private Communications Corporation (pcc)




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Estimated segment size


The market opportunity for PCC's communication services depends heavily on how one estimates current Internet and on-line services usage in general, and the use of chat room and dating match services in particular. AOL estimates that 40% of its users visit its proprietary online chat rooms, a number that is likely similar for the other major services. A conservative estimate of the non-OSP Internet users who access chat rooms or utilize dating services is 10%. This yields a potential target market of 4.8 million 0SP users, and 2.3 million ISP users (using a conservative 35 million Internet users minus the 12 million OSP users) for a total of 7.1 million target customers. With the current growth of Internet usage estimated at 50% per year, this number will reach over 20 million by 2000. Furthermore, chat seems to be growing even faster than the Internet as a whole, as sites institute chat rooms as a way to create a "community" of regular visitors. Even such commercial sites as Budweiser have recently added chat rooms as a way to draw visitors. One analyst at Montgomery Securities estimates that by 2000, there will be 7.9 billion hours of online chat (Red Herring, July 1996). Dating services are also growing, with the largest, Match.com, claiming 100,000 members. Assuming they have 50% of the market, this segment alone currently has 200,000 highly qualified target customers.

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Sample Business Plan Private Communications Corporation (pcc)

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