Dawr Ly is a business directory in the form of mobile application and website which provides both buyers and sellers an effective platform to deal with each other. Past few years have been boon for the start-ups due to evolution of technology and introduction of high-speed internet. Apart from this, globalisation has also brought revolutionary changes in the business environment. Due to these factors, business entities have contemplated to expand their presence in the international markets with the objective of enhancing revenues, profitability, sales as well as to mark its international presence. With regards to this, a map based mobile application and website has been introduced in the market which provides its users to locate nearby product and service providers. The idea is not limited to showing the results for business organizations only as it also shows the results for the freelancers. Thus, users could find out the perfect associates as per the nature of their tasks in order to gain positive outcomes (DaSilva & Trkman, 2014).
These products and services will help both home owners as well as tenants in order to get the quickest responses in return to their query along with finding the best alternatives for fulfilling their needs. Today, in the world of internet and automation, very few people prefer going out to reach to the local shops and stores for purchasing necessary and required products or for availing some services. This happens very rarely in the scenarios where people have just shifted to new locations. Dawr Ly provides an easy and effective platform to these parties which help them to find the perfect match as per their requirement of products and services (Martins, Rindova & Greenbaum, 2015).
This mobile application is developed with the objective of making available all required services and products for the people who shifts their homes to new places. This mobile application is based on maps through which people could reach to the nearest stores for consumption of relevant products and services. This idea is bit unique and it will lead to the strong competition for other mobile applications as the mobile application is built with advanced technology. The mobile application is fast, effective, cheap as well as effective in terms of providing all the information relevant to the users’ queries and it ultimately lead to generate various opportunities for the business in terms of targeting larger part of the target market along with fulfilling their target audiences’ requirements.
Primary target audience for Dawr Ly are people who operate their business functionalities from their homes and freelancers and on the other hand, organization also targets business owners, tenants and regular businesses as their users who will render services to their targeted consumer segments. The target market for Dawr Ly is Abu Dhabi as the number of small and medium enterprises is very high in comparison to the other Middle Eastern countries. It has been observed that, there are approximately 50,000 businesses in the target market and all of these falls under the category of micro, small as well as medium scale business category (Amit & Zott, 2015).
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Example: |
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Total population in targeted segment (Daily) 100,000 |
|
Prospects converted to our company (Daily) |
|
from total population (@1%) 10,000 |
|
Prospects (Monthly) (@26 days) 26,000 |
|
Prospects (Annually) (@12 months) 312,000 |
Therefore we expect 312,000 customers to buy one product or to do one transaction yearly through our company.
Apart from this, organization has also conducted a survey in order to highlight the market segmentation. It has been noticed that the average age for the target consumer segment is 18-30 years. The percentage of the purchases from home-based businesses and freelancers is quite high as 83% results were positive according to the survey conducted consumption of service especially from home-based businesses and freelancers. It was found that the average number of purchases is around 6 times per month. However, the current tools which are mainly used to locate home-based businesses and freelancers are: Google map with 68% & Instagram with 66% as per the survey responses. Another question was asked to find out the difficulty level in finding new shops either regular shops or home-businesses so it shows that it is difficult to locate product or service providers. In conclusion, it is evident that most proportion of the people agreed to have an application that’s specialized in locating all the businesses around them including home-based businesses, freelancers in addition to the regular shops (Muzellec, Ronteau & Lambkin, 2015).
With regards to this, it has been found that the idea of providing and rendering products and services respectively on internet would be a beneficial idea and it will not only help the organization to showcase effective range of products and services for their customers but it will also help the business partners who are engaged with Dawr Ly as it will help them to enhance their market share and customer base and it will ultimately help them to gain their desired goals and objectives.
Primary and potential competitors for Dawr Ly will be Google Maps and Mr. Usta. Google Maps ais the international competitor while Mr. Usta is the domestic competitor as it is considered as the largest online home service provider which connects buyers with more than 200 service providers of various categories such as home cleaning, interior designers, fit-out contractors, packers and movers, etc.
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Example: |
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Total population in targeted segment (Daily) 100,000 |
|
Prospects converted to our company (Daily) |
|
from total population (@1%) 10,000 |
|
Prospects (Monthly) (@26 days) 26,000 |
|
Prospects (Annually) (@12 months) 312,000 |
This is the most used platform at international level by the audience as the network of Google Maps is very wide. This platform provides information about the addresses for the buildings, streets, etc. across the globe. It’s a web-based service that provides a full view of the world’s street and transportation planning and options through satellite imagery. It’s also, shows most the building and sites all over the world (Linder & Williander, 2017).
Mr. Usta act as an effective platform between the service providers and users and it is considered as the largest internet based platform in the UAE. The company provides variety of services which could be availed by the users as per their requirements. Mr. Usta guides its users from selecting a service till finalising the transaction.
There is a small difference between the functionalities of Mr. Usta and Dawr Ly and that difference could only be considered as the primary factor which will make the services of Dawr Ly unique from its competitors. Dawr Ly has added home based business owners and freelancers as their service providers which have enhanced the options for their target customers for availing products and services.
Apart from this, Dawr Ly will initially target Abu Dhabi market and with the passing time, the organization will expand its business in other Middle Eastern countries in order to maximise their reachability and for generating options for their customers to avail services and consumer products from the overseas market as well. Along with this, appropriate and effective changes will be made in the platform to make it as per the trending business environment and to maximise the customer satisfaction level (Aithal, 2015).
Value chain for Dawr Ly is mainly consisting of three stages production, marketing and sales and customer service. The first stage is production under which planning, designing and development of application will be done as per the original idea. To make the application attractive and effective for thee users, organization will conduct a market research in order to analyse the demands and wants of the target audience along with determining the designs of competitors’ platforms in order to make appropriate utilisation of the available resources as well as to gain positive outcomes (Rhee, Moon & Rhee, 2015).
The second stage of value chain framework is marketing and sales and this plays vital role in terms of enhancing and generating demand for the services offered by the organization. In this stage, awareness will be spread amongst the target audience through various advertisement and promotional tools. The last stage of this framework is customer service and in relation to this stage, organization will adopt all those measures which are necessary for rendering effective after sale services to the target audience and potential customers. The agenda of this stage will be to develop and maintain reliable image of the organization amongst the customers as well as strengthen the customer relations for better future outcomes. In this stage, customers’ feedbacks and suggestions will also be collected in order to improvise the performance of application as well as to make it as per the target and potential customers’ requirements (Lancaster & Massingham, 2017).
Threat of new entrants: As it is a start-up idea and due to rise in the usage of internet amongst the people, opportunity exists for other companies to enter into the market with the same idea. Due to this, the threat of new entrants is relatively more for Dawr Ly and in terms of sustaining in the competitive business environment for longer period of time, it is necessary for the organization to determine the entry of new business organizations for retaining its acquired image.
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Example: |
|
Total population in targeted segment (Daily) 100,000 |
|
Prospects converted to our company (Daily) |
|
from total population (@1%) 10,000 |
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Prospects (Monthly) (@26 days) 26,000 |
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Prospects (Annually) (@12 months) 312,000 |
Threat of substitutes: Yellow Pages and Etisalat Call Center are considered as the primary substitutes for the services offered by Dawr Ly. Although, both the companies operate on different platforms unlike Dawr Ly due to which the impact of this factor is quite weak (Matzler, Veider & Kathan, 2015).
Bargaining power of suppliers: Bargaining power of suppliers is very high and due to large number of suppliers available in the market, other companies could also develop the same type of applications which could affect organizational functionalities.
Bargaining power of buyers: Bargaining power of buyers is relatively high in terms of other forces of this framework as buyers have various options to choose from and they are also unaware about the services offered by Dawr Ly due to weak marketing and promotional campaigns. Thus, to attract the target audience along with enhancing the footfall of the customers in their platform, it is necessary for the organization to build aggressive promotional and marketing campaigns in order to grab target and potential customers’ interest towards the organization (Dolfsma & Van der Eijk, 2018).
Industry Rivalry: Major competitors for Dawr Ly are Google Maps, Mr. Usta and every other social media platform which provides information regarding the nearest services available along with providing other information. In relation with setting up an effective brand image amongst the competitors, it is necessary to spread awareness amongst the target audience in order to stand up in the extensively high competitive market.
Mission for Dawr Ly is “to provide fast, free, reliable and comprehensive information to our users and connect buyers to sellers”.
In order to make the revenue system effective, all the sellers will be added in the section of service providers according to the categories of services rendered by the organization. This will help the buyers to find the perfect match as per their requirements and it will also act as an easy to access platform. Locations of all the sellers will also be stored in the application so that whenever a user tries to access the information to locate the seller, he/she could easily be able to reach out there. In relation to this, the sellers which are added in the application will pay certain amount of money for giving them an effective platform which will be the first source of money for Dawr Ly apart from this; the application also offers a premium membership to its sellers in relevance with giving exposure to them to showcase their products and services on the top of the list for getting more responses from the sellers (Khan, Awan & Ho, 2014).
Example:
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Total population in targeted segment (Daily) 100,000 |
|
Prospects converted to our company (Daily) |
|
from total population (@1%) 10,000 |
|
Prospects (Monthly) (@26 days) 26,000 |
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Prospects (Annually) (@12 months) 312,000 |
The Teece’s Strategy Model describes that it is highly imitable along with low complementary assets. In relation with keep moving in the competitive business environment, major factor for the organization to attain success is to innovate (Hussain, Alameeri & Ajmal, 2017).
In relevance with starting the business along with getting a good exposure from the market, it is necessary to operate the functionalities after obtaining the license from the government. Along with this, it is necessary for every organization to deal with the requirements of the target audience and to comply with the rules and regulations set up by the Department of Economic Development in UAE (Kumar, Sujit & Charles, 2018).
To protect the idea from not to be copied by any other business organization, copy rights and trademark certificates will be obtained as per the trademark registration in UAE and the Ministry of Economy in UAE in order to protect the rights of the organization as well as to gain desired goals from the target market (Wang, et. al., 2016).
Initially, partnership form of business structure will be followed in order to protect the organization from the full liability. Partnership form of business reduces the risk as it divides amongst the all partners as per the agreed profit sharing ratio and it will also help the organization to deal with the requirements of all related parties to the organization (Chowdhury, 2016).
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Name: Huda Al Meraikhi Job: Senior business Analyst, IT Certificate: Bachelor of Information Technology / Web Development Experience: 3 years in ADNOC, worked as Network Engineer, System Analyst, Web designer and currently senior analyst in IT business relations department. |
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Name: Maitha Al Mazrourei Job: Personnel Officer Certificate: Bachelor of Information Technology applied to Business Experience: 2 years as a technical team supervisor in Western Region Municipality and 5 years as personnel officer in ADNOC |
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Name: Osha Al Marar Job: Employee Relations Officer Certificate: Bachelor of Information Technology / Web Development Experience: 2 years as an employee relations officer in ADNOC |
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Name: Shamma Al Quabisi Job: Desktop Analyst Certificate: Bachelor of Information Technology / Web Development Experience: 2 years as desktop analyst in ADNOC |
For making the business idea successful and as per the expectations, it is necessary to arrange all the resources required to fulfil the expectations along with accomplishing the desired goals and objectives. Primary requirement for Dawr Ly will be a professional web developer who could make the application and the website effective in terms of dealing with the customers’ requirements. Permanent web developer will also be required for the purpose of maintaining the application and to improve it time to time in order to enhance the experience of the users with the organization (Srivastava & Nanath, 2017).
A decent marketing team will be required along with a leader for developing effective advertisement and promotional campaigns to spread awareness amongst the target audience. Apart from this, the marketing team will also keep an eye to the business environment and the trends followed by the customers in order to provide the same services and products as per their requirements. Engaging customers’ interest in the organization is very crucial for the organization, thus, it is necessary for the organization to regularly upgrade its services’ list for improving their experience as well as to establish an effective and reliable image amongst the customers (Barton, 2017).
Marketing plan plays essential role in order to spread awareness amongst the target audience in relevance with the organizational products and services. This plan consist of various elements through which relevant aspects are recognised for the objective of designing appropriate and reliable marketing strategies in order to move towards the desired destination. Major aspects of a marketing plan are analysing suitable target market, customer segments, determining opportunities and threats in the target market (Mathooko & Ogutu, 2015).
In relation to the functionalities of Dawr Ly, their primary target market is Abu Dhabi and they will target al customer segments in the target market to enhance their client base as well as to generate opportunities for the objective of making appropriate opportunities to expand its business in the other regions of UAE and further in the international market (Burns & Dewhurst, 2016).
Dawr Ly is a map based mobile application that is formatted with sellers including the business owners who run their businesses from their homes as well as freelancers who renders services in their free time. In relation to this, buyers from all over the target market would be able to locate the nearby sellers to their places as per their requirement of services. Dawr Ly will offer number of services and products to their target audience including home décor, interior designers, home cleaning, delivery of the grocery items, etc. The major attraction of this mobile application is easy to use and it’s designing has been done by considering the requirement of all types of customer segments to that large part of the traget market could be approaches (Aithal, 2016).
Google Maps and Mr. Usta are the two primary competitors for Dawr Ly and both these platforms have established their effective brand image due to which the chances for setting up the position for Dawr Ly are less. In relation to this, organization will launch its mobile application with an effective pricing policy to beat the competition as well as attract both sellers as well as buyers towards their map based application. The low charges will attract sellers to get register themselves with the application as it will help them to enhance their client base as well as to make appropriate utilisation of the available resources to attain the desired goals and objectives (Fan, Lau & Zhao, 2015).
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Example: |
|
Total population in targeted segment (Daily) 100,000 |
|
Prospects converted to our company (Daily) |
|
from total population (@1%) 10,000 |
|
Prospects (Monthly) (@26 days) 26,000 |
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Prospects (Annually) (@12 months) 312,000 |
Dawr Ly will operate over internet as it is a wide platform to reach towards the larger part of the target market. In order to enhance the demand for the services along with attracting customers, it will be necessary for the organization to implement effective advertisement and promotional strategies. This will also help the organization to generate positive outcomes along with engaging the customers with the organization (Ryan, 2016).
This is the most crucial and effective medium for spreading awareness amongst the target audience. In relation to the promotion of new business idea, integration of both traditional as well non-traditional forms of marketing will be used in order to enhance the demand for the organisation as well as to boost up the demand for the target market. Following promotional tactics will be used for engaging customers as well as to attract larger part of the target audience:
Defining target market: In order to start the application with good exposure, it is necessary to define appropriate target audience and as per this scenario, Dawr Ly will target all customer segments, relevant marketing and promotional tactics will be implemented for the objective of targeting the selected customer segments (Lovelock & Patterson, 2015).
Competitors’ research: In order to set up an effective image, competitors’ will be researched along with determining their primary customer segments. As per the outcomes, relevant strategies such as innovation, creativity along with the trending media mixes for the objective of differentiating its products and services from its competitors (Harvey & Sanchez, 2018).
Creating a landing page that sells: Landing page will be created for keeping the readers engaged. The key elements of the application will be included such as name of the application, features, promo video, logo, etc. so that the organizational customer base could be enhanced (Russom, 2011).
Making application visible in the app store: This is the process through which mobile applications are optimised to rank higher in the app store. The ranks help the mobile applications to be accessed quickly because the higher the ranks of an application, the most it will be visible to the customers. The factors which affect the visibility of the application are title, description, icon and screenshots (Forbes.com, 2018).
Approaching through social media networks: Social media is the best measure in today’s business environment to reach to the potential customers. This is because social media networks describes the interest, hobbies and various other things with regards to a particular person, thus, organization could design their advertisement content according to the outcomes obtained from social media research. Facebook, Instagram, Snapchat, YouTube, etc. are the major platforms for advertisement and promotion in terms of the social media network (Strauss & Frost, 2016).
Showcasing KPIs: In this step, all the key features, elements and other factors will be highlighted and showcased amongst the target and potential customers through the mediums used for marketing and promotional campaigns. In the context of Dawr Ly, its main KPIs are large number of sellers including business owners who operate from their homes and freelancers, varieties of services, huge range of products, systematically categorised on the basis of nature of products and services, etc. (Davari & Strutton, 2014).
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Profit & Loss for the year ending December 2018 |
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|
REVENUES |
|
|
|
Sales |
936,000 |
|
|
-COGS |
(732,000) |
|
|
Gross Profit |
204,000 |
|
|
EXPENSES |
||
|
Salaries |
(100,000) |
|
|
Rent |
(50,000) |
|
|
Fees |
(40,000) |
|
|
Insurance |
(4,000) |
|
|
Internet & Phone |
(6,000) |
|
|
Stationary and supplies |
(3,000) |
|
|
Utilities |
(6,000) |
|
|
Training |
(20,000) |
|
|
Depreciation |
(119,667) |
|
|
Interest |
(7,825) |
|
|
Misc. |
– |
|
|
Total Expenses |
(356,492) |
|
|
Net Loss |
(152,492) |
|
|
BALANCE SHEET AT DECEMBER 2018 |
|||
|
ASSETS |
||||
|
CURRENT ASSETS |
||||
|
CASH |
(137,545) |
|||
|
Accounts Receivables |
||||
|
Inventory |
||||
|
(137,545) |
||||
|
NON-CURRENT ASSETS |
||||
|
Intangible assets |
300,000 |
|||
|
Decoration |
10,000 |
|||
|
cameras |
5,000 |
|||
|
Furniture |
12,000 |
|||
|
Computers |
15,000 |
|||
|
Printers |
7,000 |
|||
|
Phones |
– |
|||
|
Security system |
10,000 |
|||
|
-Depreciation |
(119,667) |
|||
|
Net Assets |
239,333 |
|||
|
TOTAL ASSETS |
101,788 |
|||
|
LIABILITIES |
||||
|
CURRENT LIABILITIES |
||||
|
Overdraft |
||||
|
Account Payables |
||||
|
NON-CURRENT LIABILITIES |
||||
|
Net Borrowings (40%) |
|
86,606 |
||
|
OWNERS’ EQUITY |
||||
|
Paid-up Capital (60%) |
167,674 |
|||
|
Retained Earnings / Accumulated deficits |
(152,492) |
|||
|
15,182 |
||||
|
TOTAL LIABILITIES AND OWNERS. EQUITY |
101,788 |
|
START-UP COSTS/ONGOING COSTS |
||
|
Salaries |
156,000 |
13,000 |
|
Rent |
25,000 |
12,500 |
|
Fees |
28,000 |
14,000 |
|
Insurance |
2,400 |
2,400 |
|
Internet & Phone |
6,000 |
500 |
|
Stationary and supplies |
3,000 |
1,500 |
|
Utilities |
2,400 |
200 |
|
Marketing |
– |
|
|
Training |
20,000 |
10,000 |
|
Interest |
9,104 |
759 |
|
Misc. |
– |
– |
|
Acquisition cost |
16,000 |
|
|
Labor cost per unit |
36,000 |
|
|
Hosting & Market |
20,000 |
1,667 |
|
Commission |
– |
– |
|
Principal |
||
|
Total start-up costs |
56,525 |
|
Description |
No. of customers |
|
Small events |
140 |
|
Exhibitions |
600 |
|
Total Freelancers |
740 |
|
Small shops & businesses |
50,000 |
|
Total expected participants |
50,740 |
|
Conversion |
10% |
|
Yearly Prospects |
5,074 |
|
Scenario 1 |
|
|
Yearly number of transactions per customer |
1 |
|
Annual total number of transaction/units to be sold |
5,074 |
Conclusion
From the aforesaid information, it can be concluded that the business idea discussed in this report is unique as well effective as the organization is targeting all types of sellers to enhance their products and services’ range in order to fulfil larger part of the target audiences’ demands and wants. In relation to this, this report has concluded various facts with regards to the business for the objective of sustaining in the competitive business environment for longer period of time. In this report, organizational vision, mission, objectives, business idea, target market, competitors, etc. factors have been discussed. The last part of the report has also discussed marketing plan in order to promote the idea amongst the target audience as well as to enhance the opportunities for getting succeeded.
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