COMPANY FUNDAMENTALS- START UP

Chen, Runjie
Nos, Juan Carlos
Oliva, Violeta
Vilamala, Paula
Zhou, Xiaole
 ÍNDEX

Introduction_______________________________________3

PESTLE__________________________________________16

Porter____________________________________________23

Consumer segments_______________________________26

Internal analysis___________________________________28

Product description________________________________30

Prototype_________________________________________31

App WireFrame____________________________________34

SWOT analysis____________________________________36

Pricing and Commercialization strategy_______________38

Marketing Strategy_________________________________40

Action Plan_______________________________________41

Business Model Canvas_____________________________44

Final Summary____________________________________45

Bibliography______________________________________46

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 INTRODUCTION

WHAT WE ARE LOOKING TO ACHIEVE

In this startup project we will be performing a deep marketing analysis into our
product, the challenges we may face if we decide to launch our invention, what our
competitors are doing and how they are getting around some challenges, so we can
avoid them or even reverse engineer already successful strategies they are
performing, how we will get around producing and distributing our glasses,
weaknesses we may have and maybe to detect things we may have to change in our
product or even improve. We also want to avoid having to face issues in regards to
current world events, such as the probability of having AI banned in some countries.

This analysis can help us better tackle our issues and get some ideas on how to
improve our product, as well as getting a solid insight of our target customers and
being able to identify their needs so we can sell to them in an easier way. We can
also take customers' analysis to see the problems they may have while using our
product and change those if necessary. Overall, this analysis will not only help us
improve our positioning as an enterprise, but it will also make us aware of the
competitors and how to get around them.

OUR IDEA

The idea we’ve thought of is a device that works through emotion AI and wearable
glasses. It would be a pair of glasses that will detect emotions such as nervousness,
happiness, fear… in the other person, as well as analyzing their body language in
order to have a clear understanding of the person’s current mood, later on, this
information would be transferred into an application for the police to see as well as a
basic profiling of the criminal through facial recognition. Our product is mostly
focused on the software rather than the hardware.

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PROBLEM WE ARE SOLVING

The problem we are solving is directed towards people that have commited a crime
and may have partnered up with other people . Our device would help detect if they
are lying or not.

COSTS OF SOFTWARE PRODUCTION

To calculate the costs of our product and the expected revenues of our item, we will
need to calculate various metrics (For now, we will only calculate the costs of
producing the software which is the most important part, avoiding the prices of
offices, the building of factories…)

GOOGLE‘S VISION AI: We will probably need google’s vision AI in order to develop
our Emotion AI and for it to recognize faces. The price for this API is $1.50 per
month between the first 1,001 and 5,000,000 units and after that, it would cost 0.60$
per month. We would probably be paying the $0.60 as we would execute mass
productions. ​(​Pricing Vision AI,​ n.d.)

GOOGLE NLP API: To process sentiment analysis we will need Google’s NLP API
that would come with a cost of $0.25 per month. ​(​Sentiment analysis pricing,​ n.d.)

IT architect: According to Glassdoor ​(​IT architect salary​, 2020)​, the average pay for IT
architects is $51,838 per year.
UI designers: According to Payscale​ (​Payscale salary UI,​ n.d.)​, the average salary for
UI designers is $64,548 per year.
AI developers: According to Salary ​(​Salary AI developer​, n.d.)​, the average AI
developers get paid $94,757 per year.
Web developers: According to Glassdoor ​(​Salary Web Developers​, n.d.)​, the average
pay for Web developers is $68,524 per year.
DevOps engineers: According to Payscale ​(​DevOps engineers salary,​ n.d.)​, the
average salary for DevOps engineers is $95,269 per year.

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If we are calculating the numbers here, we will already suppose that our startup has
grown exponentially, as the beginning stages could be done with a founder and a
cofounder with enough skill in the development side of things. Imagining this
hypothetical case, we will calculate how much it would cost to scale our startup. If we
were a medium sized enterprise with 100 employees, most of them would be
DevOps Engineers and AI developers, we will calculate the numbers for 30 DevOps
engineers, 30 AI developers, 20 Web developers, 10 UI designers and 10 IT
architects. Per year we would pay $2,858,070 to the DevOps engineers, $2,842,710
to the AI developers, $1,370,480 to the web developers, $645,480 to UI designers
and $518,380 to IT architects.

The total payment would be $8,235,120. ​At the end of 2019, there were an estimated
1,435,500 number of prisoners in jails, taking into account that we will not use the
glasses on each prisoner and that the glasses are reusable for multiple police
officers, let’s assume that only 100,000 officers would end up using this product. If
we were to price the product at $299, we would get a revenue of $29,900,000.

CURRENT COMPETITORS

In this section we will search for all of our competitors or possible competitors and
perform a competitive analysis on them taking into account four main arguments
which are the type of competitors, profiling and objectives. In the type of competitors
section we will analyze three variables which are the direct competitors, indirect
competitors and replacement competitors. On the profiling part, we will be analyzing
things such as the price of the product, quality, value provided by the enterprise and
customer service. On the competitive advantage, we will be stating why we are
better than the competitor. Finally, in objectives we will be answering three main
questions:

- What are their current marketing strategies? 

- Are they trying to become a market leader? 
- Are they developing new markets for existing products?

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Google glasses - Not as much competition, as their business is not completely
focusing on this sector and the scanned results are limited.

Type of competitor: Google glasses are indirect competitors, because even if

their product is the same, their goal is different from ours. They are focused
more on providing their glasses to enterprises and improve the working
experience of the staff.

Profiling:
Price: Google’s new glasses will be released at a price of $999
Quality: Google is known for producing high quality things and judging
by the price of their glasses, we will assume that the quality of their
glasses is really good. In their website it states “Quality is key” ​(​Google
glasses​, n.d.)​ and they are partnering with enterprises such as
Proceedix to improve their quality.

Durability: According to Techradar ​(​Techradar Review​, n.d.)​, the

durability of the glasses is really high, as it is made of very high quality
materials. For the cons, it is said that it has poor battery life quality and
the price is too expensive.

Value: Their website has a great overall design and they claim to be
reducing the production time on complex assemblies by 25%.

Customer service: They have good customer service, although not

great, because they only have one type of communication with them
which is through their online form. Google being a big enterprise,
maybe doesn’t have as much time for their customer support.

Objectives:

- What are their current marketing strategies? 

 

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 According to this Forbes ​(​Google glasses Marketing​, n.d.)​ article, Google 
glasses marketing strategy was nearly zero and they relied solely on early 
adopters for their product to expand, which made it eventually die because of 
lack of presence.  
 
- Are they trying to become a market leader? 

Google is not focusing a lot on their glasses so we would guess that they are 
not looking to be one of the pioneer’s on this market.  

- Are they developing new markets for existing products? 

They are solely focusing on enterprises and to make the life inside the office 
better. So we would say that not, as for now, they are not looking to target any 
new market. 

Competitive advantage:

In regards to Google, we can see that one of the most noticeable advantages
will be that the pricing of their product is really expensive and that they are
targeting a market completely different from ours. Apart from that, their
customer service is not as great because they are a very big enterprise, we
are also fully immersed in this market, while they have many other products in
the tech industry and the marketing for their glasses is not as strong. We can
also take into account some critiques on their product such as the battery life
duration and the expensive pricing in order to solve those issues in our
product.

Non-verbal language experts - Another solution for the current market are manual
labor work by the nonverbal language experts that have been analyzing and studying
human behavior for years, although this may be the best option, it is still not as
accurate and the people need to go through ages of training in order to be somewhat
good at it. Apart from that, they can still fail a lot of times as it is hard to read
microexpressions.

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 Type of competitor: Non-verbal language experts are replacement
competitors because they are providing the same “services” as our product
does but they didn't focus in a specific consumer segment.

Profiling:
Price: They gain 68,000$ per year ​(​Language Experts​, n.d.)

Quality: Referring to the quality of service, they wouldn’t offer such a

high quality service, as they may have errors during the reading of the
body language and microexpressions are really hard to detect.

Durability: The average retirement age for a US citizen is of 66 years.

Value: Physical person that you can talk to if there are any errors.

Customer service: N/a

Objectives:

- What are their current marketing strategies? 

N/a 
- Are they trying to become a market leader? 

N/a 

- Are they developing new markets for existing products? 

N/a 

Competitive advantage:

For police officers, we will have a clear advantage as their durability is not
infinite and most who work in this sector end up retiring. Apart from that, the
accuracy is not as great and it is very hard to detect microexpressions during
a live interview with another person. Finally, they don’t have a live tracker that
stores it in a database.

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Polygraph - Finally, there are polygraphs, these are the oldest and most used
devices to tell if someone is lying. Despite the fact that its use is widely spread, it still
has lots of flaws and it fails many times, with some people even claiming that they
could pass the test while lying.

Type of competitor: Indirect competitor because it sells different but similar

service from our product and it would not be used for serious cases ( like in
the tribunal) as it doesn’t ensure certainty.

Profiling:
Price: The cost of a polygraph is between $200 and $2,000.

Quality: According to Wikipedia ​(​Polygraphs test​, n.d.)​, psychologists

agree that there is little evidence that polygraphs can accurately detect
lies. Apart from that, it is one of the most outdated ways of assessing a
lie.

Durability: Couldn’t find relevant information in regards to this. Although

we would assume that polygraphs can last a long time as usually police
officers use the same polygraph for many ages.

Value: Polygraphs are really big and usually occupy lots of space,
apart from that they are a very outdated machine that can be
inaccurate.

Customer service: N/a

Objectives:

- What are their current marketing strategies? 

N/a 
- Are they trying to become a market leader? 

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 N/a 
- Are they developing new markets for existing products? 

N/a 
Competitive advantage:

Polygraphs are a very outdated method and many people think it is inaccurate
to assess people’s emotions, apart from that, it is not a cheap machine either
and it doesn’t offer any extra value.

Sightcorp - The closest that comes to something I would catalog as competition

would be Sightcorp and the emotion AI they offer, which is one of the most advanced
in the market. Although they also have face-analysis and emotion tracking, their
system is different from ours, as they use the computer's webcam for the analysis
and their systems are not solely focused and targeted towards military force or
policemen.

Type of competitor: Sightcorp is an indirect competitor, because even if they

are offering a similar product as ours, they are targeting a different segment
such as enterprises dedicated to business.

Profiling:
Price: The price of sightcorp is 49€/month for 60k monthly usages,
199€/month for 300k monthly usages and 499€ per month or 1M
monthly usages.

Quality: Sightcorp uses the camera of the laptop in order to scan the
people’s faces. They claim to have 75% accuracy on tracking facial
expressions and 92% on tracking moods ​(​Sightcorp,​ n.d.)​. Their services
seem to be very high quality, as some enterprises are using them for
marketing purposes.

Durability: As it works through a camera, we would assume that the

durability of this product is of many years.

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 Value: Their website looks professional and clean for a B2B website
and they offer many services for different types of businesses. They
also have blogs explaining the functionality of their product and it is
everything very well-detailed on their website.

Customer service: You can contact them through many different social
platforms, as well as through a form in their website. They also have an
online chat available during working hours. Their Twitter account
seems to be active and we would assume that they respond fast
through their social platforms.

Objectives:

- What are their current marketing strategies? 

 
They are promoting themselves through social media, they also offer free 
trials of their product and we guess they are mainly advertising through word 
of mouth, as they have been partnering with big brands such as NVIDIA. 
 
- Are they trying to become a market leader? 

Sightcorp is really advanced in this market and with lots of companies already 
trusting them. With this we can assume that they will be looking to expand 
even more during the following years and that they will create stronger 
marketing strategies each time.  

- Are they developing new markets for existing products? 

They are already offering their products to a lot of different markets.  

Competitive advantage:

For Sightcorp we think that we have an edge because we are targeting

different markets and they are focusing on lots of different markets which can

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 make their marketing strategies be more ineffective. Their price is really
cheap but that’s because they are only offering an intangible product that can
decrease the value of the company in people’s eyes, because we offer a
tangible and intangible product. Apart from that, Sightcorp doesn’t offer a live
dashboard that scans through people’s emotions. We can take into
consideration some of their strong points such as their customer service and
clean looking website to adapt it to our own product.

Eyeris ​(​eyeris​, 2020)​- This is an In-cabin sensing AI for autonomous vehicles that can
detect the people inside of a vehicle and everything they are doing. Such as relaxing,
drinking, and reading. This product could become our competitors as they use a
similar technology, although their vision and mission are completely different from
ours.

Type of competitor: Eyeris is an indirect competitor as they are offering the

same product addressing a different market.

Profiling:
Price: Couldn’t find relevant information regarding the price of the AI,
but the price of their iPAL robot partnership is around $2000.

Quality: They claim to be providing one of the most accurate

understanding of the automotive interior cabin space. They have also
done a thorough analysis on their systems such as amassing various
data on different environments, under different lighting conditions,
facial and body expressions.

Durability: Their products may not be as durable, because it consists of

different cameras and it would be easier for one to get broken.

Value: Their website looks very aesthetic, although we can’t see lots of
value provided by the company. There is information lacking from their
part and they are not very present on social media.

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 Customer service: Their customer service consists of an online form
which you can fill in the information you want and social media such as
Twitter and Linkedin.

Objectives:

- What are their current marketing strategies? 

 
They are currently partnering up with multiple companies and promoting 
through different articles.  
 
- Are they trying to become a market leader? 

As they are not very present around the internet and with their social media, 
we would assume that they are currently not trying to become a market leader 
and are just researching their products.  

- Are they developing new markets for existing products? 

They are mostly focusing on the automobile industry and are currently not 
looking to enter any new market, as their website is solely targeted at 
explaining the functionality of the automotive sector.  

Competitive advantage:

Our competitive advantage against Eyeris would be that their customer

support is not that great, their marketing strategies are lacking and the value
provided by them is not huge, for example, we can’t get lots of information
about their services and they are not very present on social media. Apart from
that, they are also focusing on a different market than ours, and their tangible
products are also different.

Ntechlab ​(​Emotion recognition algorithm​, 2020)​ - This russian company is developing

software that will do exactly the thing we have mentioned. They have thought of

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using it for client satisfaction measures and for things such as face verification. They
claim to have a 94% of accuracy in their metrics.

Type of competitor: Ntechlab is a direct competitor from ours as they have

Profiling:
Price: We couldn’t find relevant information in regards to this.

Quality: They have been nominated for their good performance by

different independent benchmarks, ​(​Ntech​, n.d.)​ they claim to have been
founded by experts on the field of deep learning and machine learning,
so we would assume that their machines are of high quality.

Durability: We couldn’t find relevant information in regards to the

durability of their software, but they are working towards working with
the police and governmental forces, so we guess that they will develop
highly durable products. ​(​INNOVATION FACIAL RECOGNITION TECH
BEING USED IN RUSSIA TO IDENTIFY SUSPECTS​, n.d.)

Value: Their website looks clean and profesional, and they offer a good
explanation of their algorithms, although there is information lacking in
regards to the companies procedures and their overall business.

Customer service: They have a telephone where you can contact them
and call them, apart from that, they also have an online form. They are
lacking social media or at least they don’t have it on their website.

Objectives:

- What are their current marketing strategies? 

 
They market themselves through word of mouth of their services, as well as 
directly contacting governmental forces. They are also a brand new company 

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 with a unique product which will catch the eye of many journals that would 
also help them market their product.  
 
- Are they trying to become a market leader? 

We think that they are looking to become a leader market because they have 
already been contacting various police agents and they want to distribute their 
products in places such as Europe and the US as well.  

- Are they developing new markets for existing products? 

For now, they are a very recent founded company, precisely 2015, so they are 
only looking to penetrate the few markets they are already in.  

Competitive advantage:

Our competitive advantage would be that they are currently not offering lots of
information in regards to their business, which can take back some investors
that may want to invest in the company. Apart from that, they are also lacking
in their online presence and customer service which is nearly non-existent.
Their website also doesn’t offer lots of information such as the one from
sightcorp and those are things that we can fix and do. Finally, they don’t have
a live dashboard connected with the AI and that would track the emotions live.

Affectiva - Affectiva’s software is used to detect all kinds of people’s emotions as

well as using deep learning for the software to be as accurate as possible and learn
through past behaviors of other customers.

Type of competitor: Affectiva is an indirect competitor because they are

offering Emotion AI but are focusing on a different market from ours, in this
case In-cabin sensing.

Profiling:
Price: We couldn’t find relevant information in regards to the pricing.

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 Quality: The quality of the products we guess are really high because
they are used by many well-known brands in the Fortune Global 500 so
we assume that they have enough quality for those companies to use
it.

Durability: We couldn’t find relevant information in regards to the

durability of their products.

Value: They provide lots of value through their website as they give us
lots of information about their company and what they do. Apart from
that, their website looks really clean and profesional. They also have
presence in multiple social medias and are very active with their
customers.

Customer service: Their customer service is really good but not as

great as competitors such as Sightcorp, because even if they offer
social media activity and website contact, they still lack an online chat
where you can solve all the doubts.

Objectives:

- What are their current marketing strategies? 

 
They are currently promoting through multiple videos about their company 
and are also being seen in multiple journals and articles. They also have 
books which are directly related with their company. Books such as: Girl 
decoded which can help them gain traction.  
 
- Are they trying to become a market leader? 

We guess that they are offering multiple services in the AI industry and are 
giving their customers with great values through articles and teaching them 
how it works.  

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 - Are they developing new markets for existing products? 

They are currently focused on developing their existing markets and are not 
entering new ones.  

Competitive advantage:

In this case, our competitive advantage would be that they are not solely
focusing on one market but are addressing multiple ones which can be a
disadvantage for them.

PESTLE

We are going to analyze the PESTLE of our enterprise in order to get a deeper grasp
on the strengths we have and the weaknesses we may face in the future if we decide
to launch our product as well as to avoid some extra problems that we may face
which will in part save us lots of headaches.

Political

The use of AI is still a hot topic amongst different governments all around the globe,
we need to take this into account while launching our product to the market as it can
signify that at any moment some new regulations in regards to AI may change or be
applied.

Places such as the European Union, United Kingdom, Singapore, Australia, and
Germany are all seriously considering regulations regarding the ethical and
responsible use of AI ​(​AI Laws Are Coming,​ n.d.)​. This encompasses many different
things; it can signify that our product may be prohibited to be released in such places
or it may not affect us. We will need to keep an eye on these new regulations that
they are looking to apply to make the necessary changes and either modify the
places of release or make changes on our product.

As for now, this product can be perfectly released, as the AI market is still not very
advanced and governmental restrictions still have not been made. Only time will tell

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us if our product will be restricted by governments around the world. As for now, with
the trade war going on, China will have a more difficult time exporting AI into the
United States ​(​the U.S. government limits exports of artificial intelligence software,​ 2020)​,
so we will need to take that into account and probably put our factories somewhere
else besides China.

Many countries are also concerned about the use of Lethal Autonomous Weapons
Systems, Belgium has already passed legislation to prohibit the development of
these types of weapons powered by AI ​(​Belgium is fighting the introduction of Lethal
Autonomous Weapons Systems​, n.d.)​. This could signify that our product, even though
it doesn’t enter the category of lethal weapons, it is still a powerful tool that can be
categorized as an AI weapon and it may be prohibited by different governments. As
AI starts gaining traction, we expect to see an increase in regulations. We need to
keep an eye on that.

Economical

Recession

Due to COVID the number of unemployed people in the US has increased

thoroughly during 2020, this can mean a recession coming soon ​(​New US jobless
claims rise sharply as states tighten Covid restrictions​, 2020) ​in the country and with the
extra costs they are making into supplying their population with stimulus bills
(​Treasury yields climb as stimulus talks continue,​ 2020)​, they may not want to amplify
their expenses into military uses yet and this would suppose governments not buying
our products at all. Considering the release of our product, we will need to realize
that there’s a possibility that we will be going through a recession and that this may
drive the sales made by governments down a bit and it can impact our profits.

Inflation

We also need to consider that inflation rates may rise because of COVID-19 and the
printing of excessive amounts of money, as mentioned before, caused by the
treasury bills. We still need to see if the stimulus bills will continue in order to make
the economy stay afloat. This can cause inflation ​(​Will a new stimulus package spike
inflation?,​ 2020) in the country due to the excessive amount of money being printed,

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which is something we need to take into account while producing and distributing our
product.

Taxes

We will be distributing our product in the United States, so we will need to look at the
taxes in different states there if we were to sell this product directly to our consumer.
Even if that’s not the case, we still need to look at these hypothetical cases. Here is
a deeper look into the taxes required in each state: (We will probably need to price
our products accordingly.)

(​states-highest-and-lowest-sales-taxes,​ 2020)

Social

Social factors may cause an impact on our product as lots of people may not accept
it, because it is an unethical way of gauging someone’s emotion and it may provoke
the dislike of the population that are accustomed to their freedom and some may
consider it a violation of it.

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It may also make another part of the population be happy about the changes, as it is
a way to get safer and helps in detecting criminals.

Some police officers, central intelligence agency members, and the military may
dislike this product, as it can cause the specialists on non-verbal language to lose
their jobs, which will cause a huge impact in this industry and it may produce riots
which will also help our product gain traction.

We do not think that the average income per person will be a burden to distribute our
items, as it is an artifact designed especially for governmental forces which most of
them have enough capital to buy.

Technological

Our product is fully immersed in the technological world as it is a product that will
only advance if the technological world adapts.

In the case that AI does not evolve as much, our item wouldn’t get expanded as fast,
although if AI at the end reaches the public at a fast pace as the predictions for it are
speculating, we would get an edge in the market as we will have been working on it
for ages and would become one of the pioneer’s in the industry.

To accelerate this process we may partner up with some research and development
companies such as emotion research lab ​(​Emotion Research Lab​, n.d.) which is a
company that has been developing Emotion AI since 2018 and they can share with
us their experience in this sector. Apart from them, we may also want to partner up
with some indirect competitors so they can share with us their Emotion AI knowledge
and we can also help them research deeper and propose new ideas. Companies like
Eyeris can help us research our Emotion AI.

Things such as the evolution of automation, engine efficiency, and 3D technology

may boost the speed at which the glasses are produced and reduce the costs, hence
it would mean a quicker manufacturing time and cheaper product creation which can
help us getting higher margins while selling it.

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Legal

Import/Export law

We will need to take into account various import and export laws from different
countries. Because the pieces of our glasses may come from different places such
as China, and with the current trade war, we may face an increase on the taxes we
will need to pay. In regards to the software of our product, we may not have lots of
problems because it is an intangible product.

Copyright law

Copyright laws are very important when looking to design our product, as we can
face up to 150,000$ ​(​Copyright Infringement Penalties​, n.d.) ​in fines for each breach of
the copyright laws. Penalties can even suppose more extreme things like five years
in prison, this causes us to take a look at our designs multiple times and make sure
that no one has the rights for them. We will also need to analyze if the shapes of the
glasses have some sort of copyright to not face any future problems and pay extra
money that would affect our overall profits. As well as looking for any similarities that
may be copyrighted on the frontend of our software.

Employment law

Employment laws are very important when running a company as it can help us get
higher quality employees and make more people want to work with us. If we usually
comply with minimum wages, don’t overwork them, and make sure work conditions
are really well, our startup would gain more trust from other employees, and
eventually, higher quality staff will want to work with us. In the end, our startup will
only scale if we have the best employees and that is something we can achieve
through complying with the employment laws. Some new laws that were applied in
2020 ​(​Employment Law Changes For 2020: What American Workers Need To Know​, n.d.)
and we must take into account are:

- Fair Labor Standards Act Overtime Provisions (Raise the standard salary
level from $455 to $684 a week)

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 - California Assembly Bill 5 (This California law will require companies to
reclassify independent contractors as employees)

Health and safety law

To avoid getting negative traction from the press or making us get fined, we will need
to make sure the health and safety laws are complied with at each moment. Meaning
that we will make sure every employee is safe at work and is protected from possible
dangers of health and don’t make them be exposed to toxic waste during the
production of our glasses.

Privacy Laws

In regards to privacy in the United States, we will take into account that criminals
once they have entered prison, they lose all of their privacy rights and are no longer
taken into account for the law in itself ​(​Do Inmates Have Rights? If So, What Are They?,​
n.d.)​, this can be an advantage for our product as it would help us catch other
criminals with the help of people already in prison. On the other hand, in countries
such as Europe (if we were to look into expanding our product) we will be facing
different laws that may not be too abid to accept our product.

Environmental

The current trend of global environmental issues and new pollution laws will affect a
lot of our business in regards to the environmental part of it. We will need to make
sure our factories are as pollution-free as possible and make sure we use renewable
goods during our productions. Laws on the environment are constantly changing and
new ones are appearing, we will need to take that into account while creating our
startup, as we will need to adapt everything with the governmental laws.

As we will be distributing through different parts of the US, we will need to take a
deeper look at environmental factors that relate to weather, climate, and
geographical location, as in many parts of the US we may risk the appearance of
tornados or other catastrophic natural events. In Europe, we will also need to
investigate if there are places with high chances of natural catastrophes, as that
would mean that our factories would not be built there or even offices for that matter.

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Apart from that, we will not only need to look out for the environmentally friendliness
of our factories, but also for the offices. We need to make sure everything in our
company is as sustainable as possible as that can create a greater outlook for our
consumers.

Environmental factors affect business everywhere, some may get helped by it

through increasing their energy efficiency and others will get motivated by being
better members of the community.

Brief conclusions on this PESTLE:

After taking a look at this PESTLE, we can conclude that we may have emerging
problems in regards to the laws regarding AI and political parties that may not accept
our product because of the dangers of AI. Some other problems we may have to
challenge are things such as inflation, taxes and the probability of an incoming
recession. Our strengths are that AI is an emerging trend and that may help us get
an edge on the market. Privacy laws may affect us in the near future, but for now
they aren’t applied to imprisoned criminals.

PORTER

Competition in the industry

As there have been mentioned multiple times throughout this document, our
competitors currently are very low. Despite the fact that we don’t have many
competitors we will still need to face some big companies that are already
implementing these products such as NtechLab and affectiva.

The thing with Google is that they are focusing on many products and are not solely
in the market for their glasses, so this may give us a competitive advantage. In
regards to Sightcorp, they are a very solid company and with great technology,
although their company vision and mission is completely different from ours. In their
case, they are looking to distribute products for the general audience for example
companies in order to do their marketing in a greater way, but we will be looking
solely for governmental forces.

23
Although we are targeting different segments, we still need to keep track of their
movements and how they are developing as a company because we never know if
they will change their missions and start being our direct competitors. For this
product, the competitors aren’t a lot although there are some and many more that
will be emerging, we need to take that into account and keep an eye on our
competitors.

Potential of new entrants into the industry

The barrier for entrance in this industry is very high because it is a hard industry to
get in, and it requires its founders to have a great set of skills or a lot of money to
invest early on. It is a field that is currently emerging, meaning that less people know
how to make it work effectively, hence the demand for its workers is higher and the
payment for a job as well.

This may be a weakness for us, as it may be more difficult to find qualified staff or
investors that would want to make this product work early on, although it is true that
once we have established ourselves on the market, we may need to face less
competitors and it is not a market that anybody can enter such as creating a clothing
brand.

This can also mean a strength for the company, because this would suppose that
less people can get in the market and that would make us have less competition. As
it requires a large amount of inversion upfront or great skills with software.

Power of suppliers

For the production of the MoodAI, we must first do extensive research of who our
best possible suppliers could be. We must search for suppliers that offer a unique
service with the best conceivable prices. Also, another important factor when looking
for a supplier is that we need to search for one that is not yet that developed,
because these in comparison to large-sized suppliers, tend to adapt the best with
start-ups in terms of pricing and functioning. Before starting to work with a certain

24
supplier, we’d have to prepare for the worst. Meaning that beforehand, we’d have to
determine and calculate with the supplier the costs of changing partners in the future
in case our experience with them is not the one we desired.

Once we’ve found the best supplier that fits with our way of functioning and we’ve
tested that this supplier is efficient, then we’ll have to move on into gaining their
loyalty to avoid increases in prices. If we’ve tested that this supplier does meet our
standards and that we maintain a proper professional relationship with them, then
we’ll transition to granting them a small percentage of our company.

Power of customers

The power of our customers would be minimal. We offer a unique product, meaning
that there is no other alike product in the market like ours. Also, the MoodAI would
immensely help all the services that are directly related to law and justice (policeman
and courts), meaning that there would be no reason for them to request a reduction
of prices as it is a product that drastically facilitates their day to day jobs.

Our initial target audiences as already mentioned, would be all the services and
organizations that are related to law and justice. These include police, military and
judicial services. These are our principal target audiences because we truly believe
that our product would help them out on their day to day jobs. Once we’ve
succeeded in this sector, then we could review the possibility of selling in other
publics.

Threat of substitute products

As for now, we believe that the launch of the MoodAI would be a success, as there
are no other alike products like ours in the market. But we must keep in mind that the
market is constantly growing and revolutionizing with new goods and services every
time, and there would be the possibility of a threat of substitute products for the
MoodAI in the future. To avoid this, we need to offer a product that meets the
standards of our clients, we need to offer the most efficient shipping and customer

25
support services and finally, we’d have to properly commercialize our product all
around the world to avoid and deny the entry of new substitute products in our
public.

CONSUMER SEGMENTS

Demographic: ​Demographic aspects include age, gender, location, lifestyle, and

others. Our consumer target is focused on people with an occupation related to laws
and psychology. They must have a high education and the user of our glasses would
be situated between 40-50 years old. We work specially in the political area, but
afterwards, we expect to expand our consumer sector into the psychological area.
Our product is aimed at the police, military, and people who work directly with
criminals, for instance, judges. Later, it would be used for psychologists (the second
consumer sector) that​ treat mental, emotional, and behavioral disorders. ​As we
mentioned before, our product is not allowed for all the public, (low visibility to the
consumer) so we are only selling the product to trades that we have said.

Geography: ​Our product is designed to expand globally. It would be launched in

the US, where our product would be manufactured. But above all, would be found in
the developed countries as there is where the entire market is concentrated related
with judges and magistrate. We have done a research which we recognize quite well
the laws of the territory (US) and the entrance. So we are able to reach success, and
then we will expand our market.

Psychographic: ​Our product is new on the market so we can’t depend on the past
experience of the consumer. We expect to have opinions in order to develop and
improve. Our product fulfills the needs of our customer target and having our glasses
would lead them to make fewer mistakes at the time of making a decision. Being a
new product, it gives us a lot of disadvantages because people tend to buy a
well-known brand as they think they would get more reliable products. The
motivation that pushes our consumers to buy is to make our society better, to catch
the criminals, and to reduce the number of innocents in jail. To ensure our potential
consumers are open to our innovation, we would show how effective our product is

26
in these cases, and how the product would help the consumer to detect the emotions
of the criminals (in the case of judges or police users). Before launching our product,
we would make a lot of experiments to make sure the accuracy and would be
monitored by a specialist the entire process. First, we would distribute to the early
adopters which would be our principal consumer, judges. Then, once we have made
yourself known to the public, we distribute to the police officer and works related to it.

Behavioral: ​They may adapt a positive attitude to our product, as it is an innovative

product that will facilitate their job. They might think that our glasses are an
innovative project that could simplify the process of trails, so this would be the main
reason that they purchase our product. Their day to day might be stressful and
struggling as the judicial processes like trials, require a lot of effort. Their
environment should be very organized and serious as they have to follow many rows
and regulations. As mentioned already, we believe that our product would make their
day to day more easier, as the glasses would help them in their judicial processes.
Although we can’t use many types of promotion, they (political officers) can suggest
our product to other countries that show interest in it. ​They are working to make this
world better and to achieve justice, so we are sharing the same goals through our
product as we are contributing to fairness.

I​n the nutshell, through customer segmentation, we are able to understand more
about our consumers in order to meet their needs. Although we had already known
our consumers from the beginning since our product is aimed at a very small
audience, it would be very useful when we have to put a strategy and to focus where
our product could be most successful.

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 INTERNAL ANALYSIS

MISSION:

Our mission is to help to detect those criminals who have committed some kind of
crime and are free, though those who are already in prison, using the glasses. ​Our
device would help detect if they are telling the truth, or if on the contrary, they are
lying. Also, focused on the more medical sector, to help detect patients who suffer
from psychological illnesses and who would therefore need treatment.

This will make the job easier for both the police and the judges, to detect, for
example, human trafficking networks, drugs, or others by analyzing those who are
already in prison. These are our most important missions to fulfill, to ​make people’s
work easier ​by providing the MoodAI to all the places which they are needed.

VISION:

Our vision is to help make the world much fairer, and for our product to be used not
only nationally (i.e., the US) but also to be developed and expanded to all countries
of the world in order to improve the product so that all who have committed a crime
help the authorities to catch others which have committed crimes but they are free.

Also from the medical part, our vision is that all the mentally ill in the world can be
treated correctly, and be able to apply our product to other more specialized sectors
of medicine. In general, hep the community having a much safer and more
egalitarian legal system for everyone, without having to be judged either by their
religion, sex, color, or others, in a much fairer way. And the same for health having a
much effective sanitary service for everyone with the fastest diagnostics.

28
TEAM:

Our team will consist of the ones who have created the product, and then all the
workers who will work, in order to help the company develop the product. It will not
be necessary to have a lot of persons working on the marketing strategy since, in the
beginning, the product will only be provided to the USA government, and probably
later, will be provided to a public and free consumption for everyone at any place of
the world.

SUPPLIERS:

In our case, we would need suppliers to invest in our product, in order to be able to
do research to create the product, and also develop it.

In order to produce our glasses, we must first conduct extensive research on who
our best supplier might be. We must look for suppliers who provide unique services
at the best prices.

After finding the supplier that best suits the way we operate and testing the efficiency
of that supplier, we must continue to gain loyalty to avoid price increases. If we have
tested that the supplier does meet our standards, and we maintain an appropriate
professional relationship with them, then we will transition to granting them a small
portion of our company's rights.

In addition, in order to make our products and company better, suppliers who belong
to the same company as our customers are internal suppliers. They may provide
products, services, or other resources. They are the upstream process and support
group, providing their colleagues with the tools, materials, and work in progress
needed to complete the work.

29
 PRODUCT DESCRIPTION

DESCRIPTION:

Our product consists of glasses that can scan people’s emotions through their
non-verbal expressions in order to determine through them whether they are guilty
of committing a crime or not.
The glasses will be similar to normal ones, but ours will have a chip and a
scanner. Our design will not be very exaggerated but it will be a simpler and more
comfortable design so that it is easy and convenient to use them.

PROTOTYPE SKETCHES:

To better explain our product, we will show you prototypes. As we have physical and
digital products. We will be providing prototype sketches and wireframes. Our
product is divided into two items. The application will be connected to the glasses
and it will receive any data of the criminal through facial recognition, and the glasses,
which is the main hardware of our product.

30
Glasses Prototype

31
32
33
34
App wireframe:

35
36
SWOT analysis

Strengths​:

The product that we have in mind has a great variety of strengths. To start off, it is a
unique good and service, meaning that there are currently no similar products like
ours in the market. Since there is a shortage in the supply of these types of g/s, that
means that the MoodAI would have an elevated demand. Another strength that we’d
like to point out, is the great customer segmentation strategy that we’ll follow up
when we get to launch our product. Rather than releasing the product to all the
markets, we’re only going to focus it on the political related sector. Hopefully, once
our product becomes a success in this area, then we’ll get the ball rolling on to
targeting other markets. Another strength that we perceive would occur if our product
was released to the market, is that it would help the social aspect of many cities and
communities. With our product, we predict that the crime rates of many cities will
drop. Although we cannot emotionally analyse someone during a trial because of the
privacy laws. Luckily enough, these laws allow the use of our glasses on a person
that is imprisoned, so we can make them confess and reveal other fugitives.

Weakness:

A major weakness that we might encounter is the one of manufacturing our product.
We’re aware that we have a great and innovative device in mind, but we’re unaware
of how much it will cost to produce a good like ours, or even if it’s possible to find
suppliers that have the capacity of making it. If possible but if the manufacturing
costs end up being too high, then our success ratio will immensely drop down.
Despite having an innovative product in our hands, if we sell it at a price that is too
high, that will decrease the demand as our customers will only purchase our product
if we sell it for a reasonable and equitable price. Lastly, the final weakness that may
alter the sales of our product, is covid-19. The pandemic has had a multiple of
negative effects on the economy, which may lead to some governments being in a
current weak financial situation.

37
Opportunities:

As mentioned already, there is no other similar product like ours in the market at the
moment, so we have the opportunity to triumph and succeed with our product.
Governments and other political and justice related services have the obligation of
protecting their cities and communities and have the duty of doing whatever they can
to achieve this goal. Nowadays, there are many criminals and fugitives out there
eluding justice. In Barcelona for example, the city augmented its crime rates
drastically between the years 2018 and 2019. To the point where many communities
started to categorize the city as one of the most dangerous one in Spain. The city
suffered a lot socially within these years. Elder and other defenseless people moved
around the city with fear of being robbed. We (the creators of MotionAI) are from
Barcelona, and we want to make a change in not only our community, but also in the
rest of cities that suffer this common trouble. Governments are responsible for
protecting its people, therefore we want to offer them our product which we expect
would help many judicial services in detaining fugitives that have been outrunning
justice.

Threats:

As mentioned already, there are many privacy laws that prohibit the use of our
glasses in certain scenarios. Initially, we planned out our product thinking that it
would be used during trials. But as we’ve been notified that this is not possible, then
we’ve thought of utilizing the glasses on criminals that are imprisoned, so that they
could reveal to us the position of other fugitives. We’ve given our glasses a legal use
so far, the thing is that governments keep releasing new laws and there is the threat
that they may release a new privacy law that can affect the use of our product
negatively. Another issue that we must be aware of is the threat that the
manufacturing of our product is too complex and expensive. Meaning that no
government will want to purchase our glasses unless we sell them at an equitable
and reasonable price.

38
-Pricing and Commercialization Strategy: how will you sell

5 common pricing strategies

Pricing a product is one of the most important aspects of our marketing strategy.
Generally, pricing strategies include the following five strategies:

-Cost-plus pricing—simply calculating your costs and adding a mark-up

-Competitive pricing—setting a price based on what the competition charges

-Value-based pricing—setting a price based on how much the customer believes

what you’re selling is worth

-Price skimming—setting a high price and lowering it as the market evolves

-Penetration pricing—setting a low price to enter a competitive market and raising it

later

Pricing strategy

-What are the different customer segments?

Since our product is focused on being sold at a particular market we don’t have
different market segmentations at all; we can’t determine the geographics,
demographics, psychographics, or behavioral segmentation. But we know that our
product focuses on a group of middle-aged women and men, mostly men, who work
in a police department or in the government. The geography of our market segment
is probably going to be first world countries, because these are the ones that can
afford this type of non-necessary products, to speed up their work.

-How can we extract value from customer segments?

With an ordinary product, a customer segment will help:

Improving the product and services, WHO wants to buy WHAT and WHY? A clear
idea of ​our customers' needs will help us distinguish our business as the best
solution to their problem. In this way, we will increase the satisfaction of our
customers and achieve better results in relation to the competition.

39
Getting quality revenues, ​Putting your efforts into the wrong segment can be more 
expensive to maintain. 

Increase in Sales, we can increase sales with appropriate customer segmentation. 

However, you'll lose a few customers along the way. Once you've established your 
perfect strategy and become the master of your market, you'll be robbing your 
competitors' customers. 

Focusing on your marketing message, as you improve your product, running a customer 
segmentation project will help you create a personalized and more targeted marketing 
message. The message will be directed to each of your best segments, which will result 
in more interest in your product.

Price setting:

-How much is the product/service worth to my customer segments?

Our product is a high efficiency added value for an investigation type of work. This
device is going to facilitate the work of the customers. This is also a long-life product
and customers won’t have to renew it unless some years happen. We have a 2 year
guarantee and after this period ends we have a MOOD.AI+ Care program in which
you pay an annual check to keep your guarantee and we are going to take care if
any accident happens to the device.

How do I incorporate cost, competition, and value in setting prices?

If we take into account our competitors, the prices are around 800-1400 euros, and
since we are starting, we wanted to set up a price that benefits both parties. Our
quality is high and since not everyone can buy these glasses, the price should reflect
that. The vision we have for our product is a professional high quality device focused
to be used by police officers, etc.

40
 Marketing Strategy

MoodAI offers an AI service for the political government and institution and thus
would help them to facilitate the process in the court. The business model is
following three steps: Acquire, Expand and Scale.

Main elements of marketing Strategy:

- Segmentation: Our potential consumers are political agents who work directly
with criminals such as police, judge…
- Positioning: Our product will help to catch the criminals in the trial phase in the
case that there is not enough evidence against them. Besides, we can extract
valious information such as the truth of what happend or its partners.
- Value proposition: DX glasses has really stood out from the competitors ( we
can see in the competitor analysis) as we are building a product that helps the
community providing justice and security.

We point out the ​acquisition strategy​, in theory, works also as an entry-barrier to

potential competitors. Not all the products like us could appear and sell easily in the
market as this product is contributing in courts and has to follow very strict laws and
regulations. We need to require substantial human capital to tackle the complex
technical problem and financial resources. So, this complex process of
manufacturing would be the key aspect that makes it harder for a new competitor to
emerge and few companies will be willing to take such a risk as it is a “unstable
product”.

In the acquire phase, the judges would experiment the glasses and would value our
product. We would record the first cases solved due to our glasses and we would
publish it in social media. This way, we are trying to get known to the public and also
would be a new topic as our products are unique and new in the market.

Once our customer has tried the glasses, we would ​expand​. We would include more
functions and to add more users to our product (eg. medical users). Increasing the
number of users by developing the glasses and making it well-known to the rest of
the public.

Our investment in this second phase is significant as we have faced the challenges
in the first step. We would ensure that our product delivers value and result.

After the consumer experiences the expansion stage, it starts the ​Scale phase​. This
means, all those consumers that in the calendar year brought in more than 100.00$

41
in revenues with a positive contribution margin. Therefore, the clients who entered
the scale phase are those who start to have a positive contribution margin ( the
customer brings in more revenue than what it took to acquire, or maintain them).

In the Scale phase, the product would be already installed and implemented in the
market. This is the stage where the customer relationship becomes profitable.

So it’s important to mention this is not a linear path, Customers might go from
acquiring to scale and others might go back from scale to expand.

ACTION PLAN

Our goal​ is to catch people who are guilty in the trial phase in order to make them
reveal the other fugitives or the truth of what happened. Our purpose is to do justice
and help the society reduce criminals for a long time until the population lives without
fear and in peace.

Time frame Action Items Objective Participant

and
resources

30 days -Search for significance courts -Communicate Marketing

(Approx. and tribunals in order to with police department
June promote our product. officers and
2021-July judges to
2021) -As this product is related to implement the
the forces, it is important to new product.
make it known to the
government as well. -Raise awareness

-Part of the population may

believe that this product is not
ethical since the emotions and
feelings are something
personal and private. To solve
this problem, we would have
collaboration with NGO’s and
we would show the benefits
that bring to the community.

60 days ( -Prepare our prototype and Production of the Production

42
Approx. decide all the material that we glasses. and
July would use. technology
2021-Septe department
mber 2021) -Decide the packaging and
design.

-Control the manufactured

process so that everything is
managed correctly.

-Test and experiment our

product before launching it to
the market.

100 days -Increase the efficiency of our Improve and All the
(Approx. product through feedback. develop the workers that
Sept. 2021- product are involved
Jan. 2021) -Studying market research to in the
know the impact that had production
created our product. process and
marketing.
1 Test to the consumer
-Record the process with and
without the glasses in order to
find out how it affects the judge
and what difficulties have been
found.

-Interview part of the

population to know their
opinion of the product.

1 year -Find possible competitors. -Expand our Marketing

(Approx. market department.
Jan 2021- -Study the laws and regulation
Jan 2022) of other countries in order to -Increase our
make the entrance of the consumer
product easier. segment
For instance, In European
countries, it has to charge
added taxes on imports.

-Taking care of the cultures

and values of other countries,
so that we can modify our
glasses and thus better satisfy
their needs.
For instance, In the UK, there
is no regulation that prohibits
the use of our product to the

43
restricted person in the trial
phase. So we can satisfy them
in other ways such as helping
them reduce innocent cases.

-Introducing in the medical

field, especially in the
psychological area to help
them analyse and solve mental
issues.

44
Business Model Canvas

Key Partners: R&Development companies/ Investors/ Manufacturers/ Tech suppliers

Key activities: Legal affairs/ Maintain and develop software/ Ratings and feedback/
Relationship with Customers/ Avancing models/ Logistics/ Packaging/ Accounting/
Management/ Sales.

Key resources: Developers/ Platform/ Network/ Brand/ Patents/ Data/ Warehouse/

Factory/ Utilities

Value propositions: Facility to recognize emotions, lies, states of mind.../ Satisfy the
process of investigation of a crime, for ex. / Best design/ Brand status/ Quick service

Customer relationship: Self service of the use of the glasses/ A monthly review
survey to rate the glasses and get feedback/ Phone calls/ Demonstrations to
customers

Customer segments: Engineers and Staff/ Police officers/ Judges...

Channels: Directly to our customers, affiliation with them/ App of the glasses
(software)

Cost structure: Staff costs/ Software development/ Manufacturing/ Infrastructure/

Logistics/ Taxes

Revenue Streams: Commission per sales (Purchase of glasses) / Purchase of the

MOOD.AI+ Care program.

45
Final summary

After looking at this document we have found that we can differentiate ourselves
doing something no other brands have done: creating a software to recognize
emotions with the lenses of some “ordinary-looking” glasses. Whiling that this device
can help major forces to do their job and facilitate the process of solving crimes or
misdemeanour​s.

We have seen that we need to avoid some political and legal issues in regards to the
US law.

The optimal marketing strategies we will need to make are focusing first on early
adopters…

46
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-“MISSION AND VISION STATEMENTS.” Reference for Business,

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