Business consultancy project

The Short-term Business Model.

In the first stage, the business model is considered for decreasing the money collection costs for Azercell and generating the customer attractiveness in the next stage for both Azercell and Pasha bank. For the short-term period, it was agreed among Azercell, Pasha bank, and Data Clearing Center (DCC) will not focus on revenue creation but focusing on customer acquisition. The prime objective of the short term is to sustain customer retention by strengthening customer loyalty. The principal of the first period is to increase awareness and attract customers for long-term period consumption. Pasha bank and DCC accepted to proceed with the business process in the first six months without getting money transaction revenue. Azercell will also implement the service with free of charge principal. Currently, the money collection cost varies around 2.5%, and the elimination of the money collection costs by Pasha Bank and DCC will decrease the cost for Azercell by 0,5% (2.5%-0.5%=2%).

2. The Long-term Business Model.

In addition to reinforcing the customer retention, the second stage of the business model is planned the achieving the additional objectives.

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  Decrease of the money transaction costs.
  
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  Generate the new revenue stream
  

Generally, the cost of money consists of 2.5% collection costs for Azercell and whereas 2% of the cost is being generated through bank transactions. In the long-term perspective, the transaction cost from the MFS payments will be shared among stakeholders, respectively (70/20/10). The 70% of the 2% collection revenue will be paid by Pasha bank to Azercell, and 10% will be transferred to the DCC, the remaining 20% will be Pasha Bank revenue share. Azercell will get 1.4% revenue from the MFS money transactions. (2%- 0.70%=1.4%) In total Azercell money, collection cost will be decreased by approximately from 2.5% to 1.1% accordingly (2.5%-1.4%=1.1%). Moreover, Azercell will define the different pricing strategy for the MFS and get the additional revenue from each payment.

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