Easy House Buying - E Business Project

E-Business project Author: Patrícia Marques Mentor: Professor Božidar Jaković, PhD Zagreb, 2017

Contents Mentor: Professor Božidar Jaković, PhD ................................................................................. 1 1. INTRODUCTION .................................................................................................................... 4 1.1. Essay Scope and Purpose .............................................................................................. 4 1.2. Data Sources and Collection Methods .......................................................................... 4 1.3. Essay Content and Structure ......................................................................................... 4 1.4. E-business model – short description .......................................................................... 4 2. STRATEGIC BACKGROUND .................................................................................................. 5 2.1. Mission ............................................................................................................................ 5 2.2. Vision .............................................................................................................................. 5 2.3. Project Goals................................................................................................................... 5 3. BUSINESS MODEL ................................................................................................................. 5 3.1. E-business Model – Detailed Description .................................................................... 5 3.2. E-business Model Values ............................................................................................... 6 3.3. Project Organization ...................................................................................................... 7 4. INNOVATIONS ....................................................................................................................... 7 4.1. Innovations list .............................................................................................................. 7 4.2. Project Innovations – Detailed Description ................................................................. 7 4.2.1. Virtual reality .......................................................................................................... 7 4.2.2. Mobile app ............................................................................................................... 8 4.2.3. Extra services for clients ........................................................................................ 8 4.2.4. Property evaluation ................................................................................................ 8 5. REVENUE MODELS ............................................................................................................... 8 5.1. Revenue Model List ....................................................................................................... 8 5.2. Revenue Models – Detailed Description ...................................................................... 9 5.2.1. Commissions provided by customers or companies that want their spaces announced and available to be seen on the website...................................................... 9 5.2.2. CPM advertising and CPC adverting ...................................................................... 9 5.2.3. Subscribers data access for e-mail marketing ...................................................... 9 5.2.4. Commissions provided by every selling that partners in extra services for clients make ...................................................................................................................... 9 6. CLIENTS ............................................................................................................................... 10 6.1. Main Clients .................................................................................................................. 10 6.2. Main Clients – Detailed Description ........................................................................... 10 6.2.1. Clients who want to buy/rent a space ................................................................ 10 6.2.2. Clients who want to sell/rent a space ................................................................. 10 6.2.3. Clients who want to advertise their companies or services ............................. 10 6.2.4. Clients who want to renew Easy House Buying clients spaces and need virtual reality services ................................................................................................................ 11 6.2.5. Real estate agencies .............................................................................................. 11 6.3. Markets and Website Language.................................................................................. 11 6.4. Client Registration ....................................................................................................... 11 6.5. Registered Client Benefits ........................................................................................... 12 7. PARTNERS ........................................................................................................................... 12 7.1. Main Suppliers and Associates ................................................................................... 12 7.2. Supplier Description .................................................................................................... 12

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7.2.1. Web hosting company .......................................................................................... 12 7.2.2. Clients who want to sell/rent their spaces ......................................................... 12 7.2.3. Bloggers, vloggers and digital influencers .......................................................... 12 7.2.4. Google AdWords ................................................................................................... 12 7.2.5. Social networks ..................................................................................................... 13 7.3. Associate Description .................................................................................................. 13 8. COMPETITION ..................................................................................................................... 13 8.1. Main Competitors ........................................................................................................ 13 8.2. Similarities and Differences with Existing Projects in the Market .......................... 14 8.3. Project Competitive Advantage .................................................................................. 14 9. WEB HOSTING AND DOMAIN ............................................................................................ 15 9.1. Project Web Hosting .................................................................................................... 15 9.2. Project Web Domain .................................................................................................... 15 10. CONTENT MANAGEMENT SYSTEM ................................................................................ 16 10.1. Possible CMS for Project ........................................................................................... 16 10.2. Best CMS for Project - Description ........................................................................... 16 11. MARKETING PLAN ........................................................................................................... 16 11.1. Project Marketing Plan .............................................................................................. 16 11.2. Project Key words...................................................................................................... 17 11.3. Google AdWords ad ................................................................................................... 18 11.4. Social Networks Advertising .................................................................................... 18 11.5. Marketing Plan Table ................................................................................................ 20 12. MOBILE TECHNOLOGIES ................................................................................................. 21 12.1. Mobile e-business ...................................................................................................... 21 12.2. Mobile Application for Smartphone Description .................................................... 21 12.3. Mobile Application Functionality Description ........................................................ 21 12.4. Graphic of Mobile Application Functionality .......................................................... 21 12.5. Mobile Advertising .................................................................................................... 23 13. WEB 2.0 TECHNOLOGIES................................................................................................. 24 13.1. Project Facebook Profile ........................................................................................... 24 13.2. Project Author LinkedIn Profile ............................................................................... 24 13.3. Project Twitter Profile............................................................................................... 25 14. PROJECT SWOT ANALYSIS .............................................................................................. 25 15. PROJECT STARTING COSTS ............................................................................................. 26 16. WEBSITE PROTOTYPE ..................................................................................................... 27 16.1. Project Website Structure ......................................................................................... 27 17. CONCLUSION..................................................................................................................... 31 18. AUTHOR CURRICULUM VITAE ........................................................................................ 32 ATTACHMENTS....................................................................................................................... 32

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1. INTRODUCTION 1.1. Essay Scope and Purpose This essay’s purpose is to describe in detail the present e-business model as well as their revenue model. It is possible to find as well, the innovations and the way the business works.

1.2. Data Sources and Collection Methods The main source of data for this essay was the internet in which was collected information about all the existent competitors and about the market itself. Eventually was used other books and essays to complete information placed on internet websites.

The main collection method was gathering all the data, as it is presented on the internet or in books, and analyse it with the main purpose of developing the best and the most complete business model possible.

1.3. Essay Content and Structure This essay is structured in four big parts. The first one is about chapters 1 to 3, being about the purpose and the business model used. The second part is about chapters 4 and 5, concerning to the innovations present in this business model and how it can be profitable. The third part is about chapters 6 to 8, regarding to clients, partners and competitors of the business. The forth and the last part is about chapters 9 to 16, concerning to the creation of the e-business itself.

1.4. E-business model – short description Easy House Buying was made for those customers that are looking for a new space to buy or to rent that is far away from their home town. Instead of taking a plane to see the place they are looking for, is given to them the possibility to see it without leaving their actual home.

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2. STRATEGIC BACKGROUND 2.1. Mission To simplify the process of buying and renting houses.

2.2. Vision To be the world leader in house selling.

2.3. Project Goals The goals to achieve by Easy House Buying, in the next 5 years are: 1. To contribute for the corporate and social responsibility by providing a service that facilitates the access of people with mobility problems; 2. To be the most innovative e-business; 3. To be considered the world largest real estate agency online; 4. To renew the real estate agency business model; 5. To be leader in house selling worldwide.

3. BUSINESS MODEL 3.1. E-business Model – Detailed Description Easy House Buying has the main purpose of developing an innovative e-business model that can be easily used by people with smartphones, tablets or virtual reality glasses. This service is possible to access through an interactive and mobile-friendly website and mobile application available in Apple Store and in Google Play Store.

Easy House Buying pretends to be the world largest real estate agency online by providing its service only through an online platform that provides the customer a detailed view of the house, apartment or even the office they pretend to buy or to rent.

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i.

House searching Providing a space to search the place to buy or to rent is essential in any real

estate agency. In this case, is possible to search by any kind of space that the agency is announcing sorting by geography, price, dimension, facilities, etc. ii.

3D house preview/Virtual reality visiting Before even entering each item in search it is possible to have a simple and short

3D house preview of the building or the space that is being announced.

After registering the customer has the possibility to use his or her smartphone, tablet or even virtual reality glasses to enter in the space he or she is looking for and discover every corner of it. iii.

Dream, measure, plan and implement By providing such an accurate virtual reality service in which the customer can

preview his or her future home or maybe future office for a company, it will be possible to plan how the place is going look like.

This service is going to be provided by a partnership with IKEA that will help customers of Easy House Buying to decorate and renew their spaces as customizable as possible. iv.

Property evaluation This service includes an evaluation of the property to be sell/rent.

v.

Financing This service provides to some clients the possibility to loan money to acquire the

property they are looking for.

3.2. E-business Model Values Innovation, responsibility and integrity are the values that Easy House Buying will always preserve to pursue its goals.

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3.3. Project Organization To be possible to make this project possible in the first year all the team will be composed in the following way:

Administration Marketing department

Financial department

Sales department

IT department

For Easy House Buying to work it will be necessary at first an administration that can make strategic decisions; a marketing department to be responsible for all the communication of the company; a sales department regarding the sales/rents of the different spaces being advertised in the website and an IT department that will create the website, mobile app and the virtual reality feature.

4. INNOVATIONS 4.1. Innovations list 1. Visual reality visiting 2. Mobile app 3. Extra services for clients 4. Property evaluation 5. Financing services

4.2. Project Innovations – Detailed Description 4.2.1. Virtual reality The possibility that the virtual reality provides to this kind of market is enormous. The biggest innovation present in this business project is the possibility to be in two spaces at the same time and see it as in person.

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4.2.2. Mobile app Accessing the service provided by Easy House Buying will be possible through a mobile app that will be the easiest, fastest, cheapest and more comfortable way to preview and visiting through virtual reality a new space.

4.2.3. Extra services for clients In the website will be possible to request extra services, as remodelling or decorating the spaces with Easy House Buying partners.

4.2.4. Property evaluation Specialist in evaluating properties can be contacted by us to evaluate any property a know the real value of it.

4.2.5. Financing services We will provide financial advisory and help. In this field, we will have specialists in finance and house loans to help customers with financial issues.

5. REVENUE MODELS 5.1. Revenue Model List Easy House Buying is going to have its revenue by: 1. Commissions provided by customers or companies that want their spaces announced and available to be seen on the website; 2. CPM adverting; 3. CPC adverting; 4. Subscribers data access for e-mail marketing; 5. Commissions provided by every selling that partners in extra services for clients make.

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5.2. Revenue Models – Detailed Description 5.2.1. Commissions provided by customers or companies that want their spaces announced and available to be seen on the website Easy House Buying has 2 types of clients/customers: those who want to announce their space and those who want to buy or rent the space that is being announced in the platform. The commission is going to be paid to Easy House Buying by those customers who want to have their spaces announced in the platform.

The final price of the commission is going to be 6,5% without taxes of the selling/renting price of the space.

5.2.2. CPM advertising and CPC adverting There is a space reserved to display adverting on the webpage. This kind of adverting is important to have some revenue as well as informing the customers about possible extra services that they might need. Those extra services can be house remodelling companies, furniture and decoration stores or even paint shops.

The advertisements will appear at sidebars or in the end of the web page.

5.2.3. Subscribers data access for e-mail marketing By having the personal data of the customers that register in Easy House Buying website it is possible to make some agreements that provides their personal information to those companies that need it to make e-mail marketing.

5.2.4. Commissions provided by every selling that partners in extra services for clients make When each client request services from companies that have partnerships in providing extra services to Easy House Buying clients, the company must reward Easy House Buying with a commission for being the intermediary.

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6. CLIENTS 6.1. Main Clients Easy House Buying has three types of clients: 1. Clients who want to buy/rent a space; 2. Clients who want to sell/rent a space; 3. Clients who want to advertise their companies or services; 4. Clients who want to renew their spaces and need virtual reality services; 5. Real estate agencies.

6.2. Main Clients – Detailed Description 6.2.1. Clients who want to buy/rent a space This type of client is looking for a space to buy/rent all over the world. It is a customer already informed about what he or she wants and about the new technologies is the market.

6.2.2. Clients who want to sell/rent a space This type of client instead of wanting to buy/rent a space, he or she wants to sell/rent the space that he or she owns. By being willing to sell/rent it, he or she becomes Easy House Buying customer when his or her space is being advertised on the webpage. This client is the one who pays for his or her space being advertised on webpage. The payment just occurs when the sell/rent is done.

6.2.3. Clients who want to advertise their companies or services For this clients the important task is to negotiate an interesting place for their advertisement to be seen in the website of Easy House Buying. The prices may vary per size of the ad and location of it.

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6.2.4. Clients who want to renew Easy House Buying clients spaces and need virtual reality services These clients are companies that provide services of decorating or renewing spaces or even sell furniture or decoration items. By having clients buying or renting houses, those companies can immediately offer their services in partnership with Easy House Buying that will receive a commission from that partnership.

6.2.5. Real estate agencies The service of virtual reality it still not available in real estate agencies market.

Those real estate agencies that would like to have that services in their websites can partnership with Easy House Buying that will provide their service as an outsourcing service. In different words, Easy House Buying will be a broker between clients who want to buy/rent a space and real estate agencies.

6.3. Markets and Website Language The market of real estate agencies will be considered worldwide, however the service will start in Portugal. It will be possible to buy or rent a space all over the world without having to be in the space wanted at the same time.

Clients will find the website at first in Portuguese, thought in less than one year it will be possible to have the website in 10 most spoken languages in the world: Chinese, Spanish, English, Hindi, Arabic, Portuguese, Bengali, Russian and German.

6.4. Client Registration As in so many other services, the client can access to a lot of content without registering, however if he or she wants to have access to all the services. To be register as a client, he or she should provide his or her e-mail and create his or her own password. It will be also possible to register through a Facebook, Twitter or Gmail account.

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6.5. Registered Client Benefits Registered clients can access the visual content and extra services provided by the website, e.g. 3D house preview, Virtual reality visiting among others.

7. PARTNERS 7.1. Main Suppliers and Associates The main suppliers of Easy House Buying will be: 1. Web hosting company; 2. Clients who want to sell/rent their spaces.

3. Bloggers, vloggers and digital influencers 4. Google AdWords 5. Social networks

7.2. Supplier Description 7.2.1. Web hosting company This company provides to Easy House Buying the domain to be present in internet.

7.2.2. Clients who want to sell/rent their spaces The clients who want to sell/rent their spaces are the main suppliers of every space that is advertised in Easy House Buying website.

7.2.3. Bloggers, vloggers and digital influencers They are a vehicle to reach our customers in the best way and to convince them to buy/rent properties in Easy House Buying and not in other real estate agencies.

7.2.4. Google AdWords Google AdWords is one of our suppliers because it provides us with advertisement services all over the internet to make our business reachable.

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7.2.5. Social networks Social networks provide us the means to communicate with all our stakeholders and make them be updated with all our news.

7.3. Associate Description To be possible the foundation and to be possible to work every day, Easy house Buying needs to have the following associates: 1. Lawyers; 2. IT consulting companies; 3. Marketing agencies; 4. Furniture, decoration items and remodelling shops/companies.

8. COMPETITION 8.1. Main Competitors The main competitors of Easy House Buying are: 1. RE/MAX; 2. Century 21; 3. Keller Williams Reality, Inc.; 4. Coldwell Banker; 5. ERA Real Estate.

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8.2. Similarities and Differences with Existing Projects in the Market Competitors

Easy House Buying

House searching

✓

RE/MAX

✓

Century 21

✓

Financing

Property

Virtual reality

3D house

Extra

evaluation

visiting

preview

services

✓

✓

✓

✓

✓

✓ ✓

Keller Williams

✓

Reality, Inc. Coldwell Banker ERA Real Estate

✓

✓

✓

8.3. Project Competitive Advantage Easy house Buying by being so innovative about its services and about the virtual reality visiting at spaces to buy and to rent makes it the most important competitive advantage in the market.

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9. WEB HOSTING AND DOMAIN 9.1. Project Web Hosting Considering that in an early stage of this project is already has so much technology involved we decided to adopt for a dedicated server hosting by DreamHost.

Comparing to other competitors is the best choice. The price of this option will be $149 per month.

9.2. Project Web Domain As our main goal is to be international as quick as possible and to sell properties all over the globe the project web domain will be www.easyhousebuying.net. The domain .net was the chosen one because is more international than a national domain and the domain .com was already chosen.

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10. CONTENT MANAGEMENT SYSTEM 10.1. Possible CMS for Project There are three possible CMS for this project: 1. Plone: is a CMS mostly used for intranets and for large organizations. Is a free and open-source CMS and is built on top of the platform Zope.

Website: plone.org 2. Wordpress: as Plone is a free and open-source CMS although it is based on PHP and MySQL. Website: wordpress.org 3. Joomla: is one of the most known CMS as well free and open-source. It is perfect to use when one website requires a lot of personalization. Website: joomla.org

10.2. Best CMS for Project - Description The best CMS for this project is Wordpress because besides being one of the most known and used ones it is simple, flexible and provides continuously upgrades. It provides a lot more plugins than comparing to Joomla and Plone.

11. MARKETING PLAN 11.1. Project Marketing Plan To establish any project/business in the market it is necessary to have in mind a structured marketing plan. A marketing plan is essential in any kind of business because it helps to have a defined path to follow regarding to how the company wants to be seen by its customers, its suppliers or by the public in general. It is important also to define some internal issues as weaknesses and strengths as well as external ones as opportunities and threats. To define and analyse these issues it is normally used the SWOT analysis.

After analysing the current situation of the company, is important to come up with the best strategies to promote the business and gain market share. With duration approximately from three to six months since the beginning of the business, the first strategy will mostly rely on online and free advertisement. This can be done by creating immediately a page in every social network as Facebook, Instagram, Twitter, YouTube,

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LinkedIn and others, not just to promote ourselves but to communicate with customers.

This kind of advertisement is the first stage is promoting ourselves because it is a free tool but enormous regarding to the potential that it has. In these platforms is possible not just to promote the company, communicate with customers but also promote the spaces that will be on sale/rent in the website.

To face the growth of the company, it is a must to develop new strategies and plans according to the proportion of sales and customers that the company has.

Considering that, and since it is an e-business, the focus will always rely on advertisement online and with the right target in mind. In the next few years to bet on a strong and homogeneous marketing strategy that focus to be almost totally online is the secret for a steady progress. For this to happen we will bet on web banners, partnerships with known bloggers, vloggers and digital influencers related to interior design and deco, online newsletter with the newest trend on decoration and remodeling of spaces among others.

Is important not to forget that normal paid online advertisement as AdWords ads are a must concerning to promotion of any online business. This kind of advertisement should appear in strategic websites and Google search engine.

Considering that some advertisement strategies are paid, we must have a prediction of how much to spend on advertisement. As in the first few months it will all be just free advertisement the budget will be regarding just in the next few years. Is expected to spend between 3000 and 7000 euros per year in advertisement and promotion actions. This value can easily change according to the impact of the first big campaign with the slogan “Enjoy your future house as you were there”.

11.2. Project Key words ‒ House buying;

‒ Bedroom;

‒ House renting;

‒ Kitchen;

‒ House selling;

‒ Bathroom;

‒ Apartment;

‒ Toilet;

‒ Flat;

‒ Floor;

‒ Office;

‒ Roof;

‒ Virtual reality;

‒ Library;

‒ Real estate agency;

‒ Laundry room; 17

‒ TV room;

‒ Neighbourhood;

‒ Suite;

‒ Facilities;

‒ Stairs;

‒ Swimming pool;

‒ Closet;

‒ Garden;

‒ Terrace;

‒ Gym;

‒ Window;

‒ Skyline view.

11.3. Google AdWords ad As said before, Google AdWords is one of the most powerful tools of advertisement that exist. For an online business it is essential to have ads that work by click and appear in the research in one of the most known search engines: Google. The main purpose of having ads in AdWords is to gain awareness by the customers and be one of the top brands in their minds regarding to real estate market.

Firstly, the ads will be in Portuguese and in English and the goal target will be people that search for houses, offices or spaces to rent or buy that are far away or not and are used to new tech trends (as virtual reality and 3D preview).

Advertisement: Easy House Buying Enjoy your future house as you were there!

The future of real estate market is with us. www.easyhousebuying.net

11.4. Social Networks Advertising Easy House Buying as an online platform and a digital company, must have a big impact and presence on social network. For that purpose, as referred before, the social networks that we want to be present are: Facebook, Instagram, Twitter, YouTube, LinkedIn and as the business starts to grow we will be present in other kind of social networks that will be need at that time. ‒ Facebook: this social network will be used to reach customers with the lastest news about the real estate market as well as a tool to advertise our company via CPC advertisement;

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‒ Instagram: a profile in this social network will be used more in an informal way to reach customers with some fun photos about some new developments within the company, sharing some pictures about the headquarters and sometimes releasing some contests; ‒ Twitter: also with an informal way of communicating with customers will be possible to share news and curiosities about the company and all the real estate market; ‒ YouTube: a profile in this social network will give us the opportunity to share troughout daily posts with all stakeholders how we can provide virtual reality services and 3D preview of houses, offices and all different kind of places to rent or to buy; ‒ LinkedIn: one profile in this social network will provide us with a more formal way of communicating with all our stakeholders and potential future investors as well as potential future employees.

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11.5. Marketing Plan Table No.

Promotion

Local of

Promotion

type

promotion

period

1

Costs

Promotion description

Facebook

Every day with

Instagram

a special

Free

latest news, useful

Twitter

attention in the

of

information and

4

YouTube

first few

charge suggestions to

5

LinkedIn

months

2 3

Social network

Updating according

customers Ads in search

6

Google AdWords

After 6 months of existence

3000€

results of Google as well as in strategic websites

Online 7

advertisement

Being refered by Partnership with After 3 months blogs and vlogs

of existence

1500€

bloggers, vloggers and digital influencers

8

Banners

After 6 months of existence

Banners with the 1000€ campaign in force at that time

Newsletter send

Updating according

by email to the 9

Mailing list

database of customers or possible customers

Every month

Free

latest news, useful

of

information and

charge suggestions to customers

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12. MOBILE TECHNOLOGIES 12.1. Mobile e-business Easy House Buying besides an interactive website will have an app as well. This app is important for this project specially because it gives customers de opportunity to use the feature of virtual reality and 3D preview in their smartphones wherever they are. It gives them also the opportunity to contact us to schedule a meeting if they have any questions or need help. Looking for an apartment or an office will be much better with this app.

12.2. Mobile Application for Smartphone Description The mobile application will be available in every operation phone system (Android, iOS and Windows Phone) and will be available, free of charge in every online store (Google Play, Apple App Store and Window’s Phone App Store).

12.3. Mobile Application Functionality Description The mobile app will have the following functionalities: ✓ Provide virtual reality service to the customers wherever they are in their smartphones; ✓ Search engine for properties in sale/rent; ✓ Possibility to schedule a meeting in real time with and agent; ✓ Subscribing the newsletter; ✓ Be up to date about all the contacts negotiations of their new property.

Some functions will only be available if customers register themselves within the website.

12.4. Graphic of Mobile Application Functionality With the help of www.wix.com it is possible to construct a mobile app for a specific business with a specific website.

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I.

II.

Homepage

Services: properties listings, virtual reality, home showings and contract negotiations

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III.

Contact us

IV.

Subscribe newsletter

12.5. Mobile Advertising The advertising within the app will appear with banners and in footnote mode.

This way is possible to have a new business revenue within the mobile app. These advertisements will always be related to real estate market. All ads will be interesting to the app user.

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13. WEB 2.0 TECHNOLOGIES 13.1. Project Facebook Profile

13.2. Project Author LinkedIn Profile

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13.3. Project Twitter Profile

14. PROJECT SWOT ANALYSIS

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15. PROJECT STARTING COSTS

Costs

Total cost / month

Hosting service

149$

Domain

Free

Promotion

450€

CMS

40$/year

Hardware

8000€/year

Software

4000€/year

Developing mobile App

3000€/year

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16. WEBSITE PROTOTYPE 16.1. Project Website Structure I.

II.

Homepage

Introduction to the service

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III.

Services access: property listings, home showings, contract negotiations and virtual reality

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IV.

V.

Contact us

Basic information about the location

29

VI.

VII.

Get in touch

Newsletter subscription/registration in the website

30

17. CONCLUSION After considering all the steps to develop an e-business project, I can say that Easy House Buying has a great potential to be developed and launched with success. The innovations within the business model and the services provided to the clients are new in the market, therefore it can have a great success if it can be in the market.

Providing customers with a whole new experience of buying or renting a property that is far away and can visit/enjoy it as it was in real life is enormous. This way is possible to revolutionize the real estate market.

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18. AUTHOR CURRICULUM VITAE

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ATTACHMENTS 1. Registration Form for Website Visitors

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2. Newsletter

34

3. Sitemap

Homepage

Services

Property listings

Home showings

Contract negotiation

Contact

Virtual reality

Contact us

Subscribe

Newsletter

Registration

4. Presentation Handouts

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36

37

38

39

40

41

42

43

44

45

46

47

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