Business Plan for the Web Instant Messaging Service

Currently SMS is the most popular one for text messaging market, and the traffic of SMS was 5.9 trillion messages in 2011 which occupies 64.1% of the global text market. According to the research from Informa, the market share of SMS will down to 42.1% in 2016. At the same time, global mobile instant messaging traffic will increase from 1.6 trillion messages in 2011 to 7.7 trillion messages in 2016, doubling its share of global messaging traffic from 17.1% in 2011 to 34.6% in 2016. The number of IM users in 2011 reaches 2.6 billion and there are various kinds of instant messaging application available in market already. Each IM application tries to focus on the different features to differentiate from other competitors. Some IM applications are focusing on the computer users like MSN or Skype and others are focusing on the mobile device users like Whatsapp or Line. ChatInn provides a new way to help people to keep communication between different platforms. Whatsapp, one of the major competitors of IM service provider, after reaching 1m users by the end of 2009, Whatsapp’s downloads increased tenfold during 2010. The company does not reveal its current user numbers but analysts assume it is in the tens of millions. ChatInn is a web base instant messaging service which can work on the computers and the mobile devices. ChatInn’s goal is to provide a quick, simple and a safe way for person who wants a quick short meeting or chatting. Not like other IM applications, ChatInn doesn’t require the installation or the complicated registration to be able to use this service. For the new user, the only required information is the username and password, no other personal information is needed. To host or start a short meeting or chatting, the user only needs to send out the meeting url link which is generated by ChatInn to the target contact. The target contact could just simply click on the link from the computer or mobile device to enter the meeting or chatting. ChatInn also provides the app for mobile device users which allow the user could be always contacted online just like other IM apps. ChatInn is expected to reach 100K users in 6 months and more than 1 million users in the 3rd year of operation. Advertising will be the major profit center, and it highly depends on the size of user base. There will be net profit in the end of 2nd year and will generate net profit of 5.29M. When the active users keep growing steadily, ChatInn would start global marketing promotion as well in order to keep expending the business scale