Business Model For Expliseat

Amine MasnaouiMatthieu SoudanJoni SalmelaZacharie Chebance

Worlds lightest certified aircraft seat

Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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French company

Based in Paris

25 employees

Founded in 2011

Aviation & Aerospace

15 patents

The Titanium Seat

Lighter

4 kg per seat (per passanger)

Longer-lasting

1000 x longer lasting than aluminium

Innovative design

Only 30 components used

Thinner

Additional 5 cm between the seats

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• Titanium

• Carbon fiber reinforced

composites

• Textile/Leather

Pros and cons

• One structure for three seats

Lightness vs Long overhaul

• Less bindings on the ground

Easy dismantlement vs Less stiffness

• Constant inclination of 18°

Constant space vs No tilting

for legs

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Expliseat: Materials

Titanium Carbon Fiber

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• High strength-to-weight ratio

• High crack resistance

• High stiffness and tensile strength

• Low weight

• High temperature tolerance

• Low thermal expansion

• Combined with plastic resins

High strength-to-weight ratio

Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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Commercial Aviation Cabin Interior Market

Growing market (2010-2020)

Market Drivers

• Growing demand for air transport

Growing number of commercial aircrafts

• High fuel costs & environmental

regulations

Demand for lighter cabin interiors

01/12/2015 MT4002 Technology Management Strategy 8Global Commercial Aviation Cabin Interiors Market Assessment, Frost & Sullivan 2012

Seats47%

Main Cabin19%

Galleys11%

Lavatories10%

Lighting13%

Seats

Main Cabin

Galleys

Lavatories

Lighting

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0

2

4

6

8

10

12

14

16

18

Re

ven

ue

($ M

illio

n)

Year

Gro

wth

Rat

e (

%)

Revenue Growth rate

CAGR = 8,7 %

0

1000

2000

3000

4000

5000

6000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0

2

4

6

8

10

12

14

16

18

Re

ven

ue

($

Mill

ion

)

Year

Gro

wth

Rat

e (

%)

Seats Revenue Growth rate

CAGR = 9,5 %

0

500

1000

1500

2000

2500

3000

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

Nu

mb

er

of

Ord

ers

Single-aisle Aircraft Orders (1984-2014)

B737

A320 Family

Total

Aviation Market

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http://www.boeing.com/commercial/#/orders-deliveries (Boeing), Airbus Orders and Deliveries

Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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Value Proposition

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What Expliseat offers and how they differentiate ?•

Regular seat

Expliseat

11 kg

4 kg

500 parts

30 parts

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Save 5% in fuel consumption

EasyJet would save 100M$/year

= 2% of the turnover

+ More space for passengers (better service), or more seats in a plane

(more revenues)

Case study - EasyJet short-haul flight

Regular flight : London Prague

Time: 1h55

Distance: 638 miles

Plane: A320

Configuration: 183 economy class seats

(15kg)

Data:

11h flights a day

Fuel price: 1.000$/mt

Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. New Business Model Proposal

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Market Segmentation

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● Long Haul ● First Class ● Asia ● A380

● Medium Haul ● Business Class ● Middle East ● A320

● Short Haul ● Economy ● America ● B737

● Low cost ● Africa ● ATR

● Europe

One goal: Leader of the Economy class

A320 B737 ATR

Air Mediterrannée 2014

4 A320, 174 seats

Flights in December 2014

Air Tahiti June 2015

Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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Scope of activities

Airlines’ need: Reduce energy costs

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Expliseat’s answer

Issuing patents4kg titanium seat

How ?

Outsourcing

manufacturing,

logistics and

assembling

Value Chain - vertical disintegration

Information will be provided soon

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Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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Method of Value Capture

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Airline pays

Non-recurring charges

Recurring charges

Design & Engineering

Tooling

Prototyping

Seat covers

Foot panels

Overhaul charges

(after warranty period)

Seat legs (10 years)

Seat back frames (5 years)

Fixings (3 years)

Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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Strategic Control

• Expliseat is holding 15

patents for its Titanium Seats

• Aircraft seats must satisfy

particular aviation standards

Not easy to make cheap

replicates and enter the market

Cases of Airbus and Zodiac

• Expliseat has EASA

certification for its seat

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Agenda

1. Company Profile

2. Aviation Market

3. Value Proposition

4. Customer Selection

5. Scope of Activities

6. Method of Value Capture

7. Strategic Control

8. New Business Model Proposal

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New Business Model Opportunities

• Shift to services– Revenue model based on savings in fuel

consumption

• Knowledge applicable in other industries as well– Automotive

– Military aviation

• More personalized seats– Size

– Reclining seats

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Future of Expliseat

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Thank You!

Q&A

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