cf:ceg market & competition presentation

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M A R K E T & C O M P E T I T I O N T E A M C F : C E G FSE 301 OLGA EPSHTEIN NORA SAMI JOSE ROBLES JENNIFER SNOW

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FOCUS: current understanding of the market structure of opportunity, including competitive analysis O V E R V I E W >> VALUE NETWORK ANALYSIS >> PRODUCT DATA SHEET >> VALUE NETWORK PARTICIPANT QUESTIONS >> DIMENSIONAL COMPETITIVE ANALYSIS >> TWO-DIMENSIONAL COMPETITIVE ADVANTAGE CHART >> COMPETITIVE ADVANTAGE SUMMARY

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V A L U E N E T W O R K A N A L Y S I S 1. What attributes define a customer? A customer is a buyer and not necessarily a consumer. A customer is the person or organization making the purchase and paying for the product. In this case, our customers are primarily engineering and construction firms. These firms provide our product for their employees as a tool for their work. 2. What does the “whole product” consist of? The whole product is essentially a computer tablet with a thin design and a flexible screen capable of being rolled into a blueprint tube. It comes with basic PC software as well as engineering and drafting programs, wireless capabilities, and USB port. The packaging is a cardboard box with dunnage as secondary packing to keep the product safe during transport and sale. 5 4 3 2 1

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3. How does the “whole product” come together? The whole product comes together at the CEG manufacturing facility. Suppliers or bits and pieces of our final product are assembled at this facility, packaged, and then transported to retailer distribution centers, then directed to retail sales floors, and then sold to the customer. 4. What are the $ dynamics? Money or value is created primarily at our manufacturing facility where our final product is assembled; however, $ is also seen in our suppliers, retailers, and product support companies. These are characteristics that bring in customers. If Apple had an awful support center, its sales would suffer tremendously and it would see a decrease in customers because the customer experience would be poor. V A L U E N E T W O R K A N A L Y S I S 5 4 3 2 1

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5. Where is value created? Value is created anywhere a new dynamic is created. For instance, the flexible screen adds value, the software adds value, the USB ports created by IBM add value; however, value is not just in the design, it is also in the customer service. When a customer purchases a product, they are also buying warranties and customer support. 6. Who are the important players? The important players are our suppliers, retailers, and our service organizations. However, the 2 nd tier suppliers or our suppliers’ suppliers are also important, because if there is a break in their supply chain, it will hinder our supply chain and delay production as well. V A L U E N E T W O R K A N A L Y S I S 5 4 3 2 1

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7. What is internal vs. external? Internal is specifically found at the CEG manufacturing facility. External is found in all other grooves to the supply chain, 2 nd tier suppliers, our suppliers, our logistics team, retailers, and customer service. 8. Who do I need to talk to? Creating strong relationships with our suppliers and retailers is a no-brainer; however, forming ties with at least secondary suppliers is wise, because if a problem arises, CEG might be able to negotiate a solution or at least network to find an alternative supplier. Maintaining relationships with customer service is also key. Every aspect or branch of our supply chain provides an integral part to our product’s value. V A L U E N E T W O R K A N A L Y S I S 5 4 3 2 1

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Value Network Participants: 2 nd Tier Suppliers 3M Intel Microsoft Samsung Cisco Electronics Oracle 1 st Tier Suppliers Hewlett-Packard Northrop Grumman IBM Byers CEG Manufacturing/Packaging Facility V A L U E N E T W O R K A N A L Y S I S Retailers United Suppliers SIMA Borm Engineering Acura Engineering Cascade Engineer Supply Customer Service/Support Retail customer support CEG customer support by phone 5 4 3 2 1

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Flex display device: a simple, unique, and environmentally friendly solution >> Addresses multiple design & business documentation needs KEY FEATURES +Portable & lightweight +Interactive touch screen technology +On-screen editing capability using handheld stylus +Anti-glare, scratch resistant viewing surface +Internal/external storage +High-speed wireless connectivity +Compatibility with design & imaging software +Versatility & multi-discipline applications TECHNICAL SPECS + Screen displays 11 x 17 or 12 x 18 inch true scale drawings + Total weight : 2.7 lbs + Up to 100GB internal storage + External storage option + Connectivity to mobile broadband card w/GPS and Bluetooth options + USB 2.0 compliant ports + Rechargeable Li-ion battery provides up to 8 hours of battery life for portable use + Car charging adapter PRODUCT DATA SHEET

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CONSUMER SURVEY >> What is the name of the product you reviewed? >> What did you like about this product? >> How would this project make your life easier? >> In what ways would you use this product? >> What did you NOT like about this product? >> How much would you pay for this product? >> Would you recommend this product to someone else? If yes, who? VALUE NETWORK PARTICIPANT QUESTIONS CONSUMER INVESTOR SUPPLIER ADVISOR ATTORNEY

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INVESTOR SURVEY >> How many business ventures are you currently invested in? >> How many successful investments have you made past or present? >> How would you rate your current relationships with your business investments? >> Does the technology industry interest you? >> What requirements or criteria do you have for new investment prospects? >> What kind of returns do you expect? >> How long do you typically invest in a company? VALUE NETWORK PARTICIPANT QUESTIONS CONSUMER INVESTOR SUPPLIER ADVISOR ATTORNEY

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SUPPLIER SURVEY >> Who are your best customers? Why? >> Who are your worst customers? Why? >> How do you react to delays by your suppliers or delays in production? >> How would you rate your supply chain? In what areas could you improve it? >> Why is your product superior to your competitors? >> How can you improve your product? >> Do you offer discounts for bulk orders? VALUE NETWORK PARTICIPANT QUESTIONS CONSUMER INVESTOR SUPPLIER ADVISOR ATTORNEY

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FINANCIAL ADVISOR SURVEY >> How long have you been a financial advisor? >> How many successful experiences have you had as financial advisor? >> How would you describe your business approach? Conservative or more aggressive? >> What does your ideal client look like? >> How do you build relationships and trust with you clients? >> Describe your worst experience as a financial advisor. How have you learned from it? >> How are you compensated? VALUE NETWORK PARTICIPANT QUESTIONS CONSUMER INVESTOR SUPPLIER ADVISOR ATTORNEY

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ATTORNEY SURVEY >> What is your background/experience with business law? >> Do you have any clients in the technology industry? >> What employment laws should a startup company be familiar with? >> What kind of contractual agreements should we have with our partners and suppliers? >> What type of business is right for our firm just starting out? C-Corporation, S-Corporation, LLC, partnership? >> What advice do you offer for new firms? VALUE NETWORK PARTICIPANT QUESTIONS CONSUMER INVESTOR SUPPLIER ADVISOR ATTORNEY

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Supplier 3M Canon Activision Cisco Intel Supplier Panasonic Microsoft Sharp Samsung Supplier Oracle SAP Supplier Zhouyuan Hua Hong Product Supplier Hewlett-Packard Product Supplier Northrup Grumman IBM Byers (software) Manufacturer CF:CEG Retailers United Suppliers SIMA Borm Engineering Accura Engineering Cascade Web Retailers United Suppliers.com Engineer Supply Service Retail customer service Service CEG Manufacturer Customer Service Customers Engineering & construction firms Consumers Project managers Consumers Engineers VALUE NETWORK MODEL

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DIMENSIONAL COMPETITIVE ANALYSIS

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SUSTAINABLE COMPETITIVE ADVANTAGE SUMMARY >> The solution offered by our Flex Display Device makes it a unique one-of-a-kind product that combines functionality with versatility . >> The large screen size is ideal for viewing engineering design plans in true scale, which is always a constant need in any engineering field. >> The touch screen functionality allows on-screen editing and fast navigation capabilities, both of which are huge time-savers that improve efficiency and work flow processes. >> The portability of the device is also enhanced by making it lightweight and compact. The flexible screen rolls into the Smart Panel casing in order to protect the screen from damage. >> The FDD product is a unique and versatile portable display solution that allows the customer to have the best of both worlds : interactive large screen display and portability. >> E stablish and solidify a client base in various engineering industries by maximizing exposure to our product through various marketing avenues. >> Future growth and development of the product design and functionality . Improving the product design can take on various forms such as developing ways to customize the product for specific industries or improving the original design by making the product more lightweight. DIFFERENTATION & SUSTAINABLE COMPETITIVE ADVANTAGE

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LAPTOP iPAD TABLET PC FLEXIBLE DISPLAY DEVICE PORTABILITY (FLEXIBLE + COMPACT + LIGHTWEIGHT) LARGE EASY-TO-VIEW TOUCH SCREEN DISPLAY C F : C E G C O M P E T I T I V E A D V A N T A G E OTHER PORTABLE DISPLAY SOLUTIONS TWO-DIMENSIONAL COMPETITIVE ADVANTAGE CHART

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Our Flex Display Device offers an extremely versatile portable display solution because unlike any other product in the market, it implements large easy-to-view touch screen technology without sacrificing portability. COMPETITIVE ADVANTAGE SUMMARY