Discuss about the Innovative thinking for the Online Grocery Material Purchasing where the Consumers will receive their desired Product at their Door Step.
Entrepreneurship is a new and strategic way of establishing a business. Entrepreneurs are those who make the innovative idea into the existing market and create new resources for high and long-term revenue generation. They do take a risk to shift the economic resources from one place to another or from one stage to another with a high level of new innovative thought incorporation. In this particular context, a new product and services have been introduced which will show the degree of innovation and re-innovation. This report also focuses on the validation of the proposed idea through a series of factor analysis, methodology and a conclusion.
The proposed business idea is to establish the application based grocery shop services. It is not a new concept of creating online services where people can buy their desired products sitting at home. Just a click on the touchpad of the electronic devices and the order is done, that in turn deliver the product to the respective customer. The entrepreneurial concept focuses on the development of the existing services or concept and a new invention (Bae et al., 2014). The online services of grocery materials are thus going to be an innovative idea (Lian and Yen 2014).
Due to the busy life schedule, most customers prefer online shopping. Many online products and services like jewellery, shoes, clothes, electronic goods, real estate projects, books, utensils, medicines and more are available in the market (Wu et al., 2014). These standard services are available in online shopping. Grocery materials are available at a low or reasonable price in the shopping malls but not via online shopping services (Bilgihan 2016). The busy schedule does not let consumers bear the bargaining situation in the market and creates a hectic situation. Online services can reduce the efforts of the customers and can deliver the fresh and quality products at their door steps (Dai et al., 2014). On the other hand, this innovative idea would also help the entrepreneur to create a real craze among the population which will, in turn, create a good source of revenue generation.
The main aim of this new idea proposal is to create an innovative thinking for the online grocery material purchasing where the consumers will receive their desired product at their door step.
Business operation validation methodology
To generate the new thought and apply the concept to establish a project, one must have the proper understanding of the fundamentals of the entrepreneurship. There are different types of entrepreneurs, and their way of designing the project may differ. But, the main objective is always the same – the risk taking factors. Entrepreneurs do not think of a short-term project. They always look to create the long-term opportunity for others as well as for themselves; however, it also involves an enormous risk to them at the initial stages (Omondi and Mbugua 2017). Therefore, the first aim of the project would be to analyse the prospect and the essentials related to the online grocery services. This idea can be considered as the entrepreneurial idea that would be integrated into to the commercial online shopping services as a new venture. Once the concept is thought then the following steps would be followed to make an in-depth analysis of the scope or opportunity, risk factors and the implementation plan need to be set.
The primary purpose of this proposed plan is to reduce the efforts of the customers and the challenges they face during marketing. Local and quality product suppliers would need to be connected first to prepare the stock. The entrepreneurs of online services mostly make their stock of products and deliver it to the customers. Here the service process would be to connect the buyer and seller. The name of the facility would be groceryshop.com which would have an application based website. First target city in Australia. An application based portal would be designed where people would come and place their orders. The pricing of the total purchase would show to them through the electronic calculation methods. The nearest sellers would be then explained to the customers, and the order would be placed to the seller. The seller would sell the products to the customers and would provide a share percentage to the grocery online services. This is how the entrepreneur would create the customer base with faster services. This in-future would create a good source of revenue generation. The person who would deliver the product would be the company’s own recruited staff. The customer’s feedback would be taken from both the online site and the on delivering the product. The new idea is to refer the website of this new service to other customers. Customers would be asked to refer at least 2 number of their known or 2 people whom they can refer the website. On referring the customers would also be provided with the monthly discount coupon, and upon referring at least 12 people up to 6 months a valid membership card would be provided to the customer where they will be unable to purchase their monthly grocery materials at much cheaper rate than the existing rate. This service would be valid for next two years, and a little renewal would be done. This process would help in the word of mouth marketing of the online grocery services which as a result would create the huge customer base for the company. This would also reduce the cost of marketing, stock maintenance, extra labour cost for maintaining the quality of the product, warehouse for storing the products and much other transport related cost.
To validate the business operation and to establish the service facilities within the market on a long-term basis, a thorough analysis would need to be done. This involves the analysis of the strength, weakness, opportunity and threats of the proposed grocery material services in online.
The proposed idea would follow the following steps to design the entire project plan. Empathise and define that would help in understanding the current issue and why this service is required. Ideate would establish the idea followed by a prototype analysis and would end up with the testing of risk factors, strength, opportunities of the project
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Strength · The strong points of this new business venture lies in the innovative concept of purchasing the groceries by sitting at home. This is the regular need of every human being. · On the other hand, the efforts and challenges that customers pay to purchase the products from the supermarket would also be reduced. · The business model also provides the existing customers more benefits would help create a good customer base for the company. These are the strong aspects of this new business venture. · This service has the potential to be grabbed by the old citizens. Since this is a new kind of service facility that would be introduced in the market, thus it has the competitive advantages. |
Weakness · The main weakness is the availability of the products to the nearest seller. This needs to be maintained with proper care. Unavailability of the products to the nearest seller may cause failing to deliver the order to the customers. This would create an unsatisfactory remark to the customers. |
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Opportunity · The existing customers can purchase their products at a cheaper rate than the existing market rate by referring their other known people who may be their relatives, friends, neighbour or others. This would create a huge customer base for the company or the business organisation. · On referring the customers would get the membership cards that would be valid for next two years. A simple referring activity is providing an attractive and beneficial offer to the customers, which has the potential to be taken by the customers very quickly, and it would help the groceryshop.com for its rapid growth. |
Threat · Other similar services that are the new entrants may act like the threat for the company. · The bargaining power of the customers may also harm the business operation though that would not be much effective as the online shopping strategy follows the offer providing facilities, which would always help to keep their customers in a tight relationship. The referral based business model would also help the company to grow but not to fail as it’s a proven structure (Ghezzi et al., 2015). · Delay in services may be a threat to the business operation too. As the company would not manufacture the sold products, so if the quality of products appears poor, it would also create a noise in lowering the reputation of the entire business operation. |
Table 1: SWOT analysis
(Source: Author)
Since the proposed business plan is an online application based service, the costing for the entire business would be cost effective or inexpensive. The online grocery shop includes the nearest or the local supermarket or any other suppliers. Thus the entrepreneur does not need to think about the storing house, manufacturing of the products which would cut off the maximum expenses. The main costing would be required for making payment to the IT sector people for operating the online business, delivery person, and other taxation. On the other hand, the environmental factors of Australia would support the business operation to make it uninterrupted because of its pleasant weather.
Conclusion
Online shopping is growing trend trends in the recent era where the majority of the people do prefer it. Less time consumption, relaxation, huge variety and brands of products, attractive price range, and moreover the customer reviews, etc. help a customer purchase a product with a reliability and trust. Besides, it also helps create a stable customer base. while the concept of grocery services is new to customers, it has the potential to attract the attention of both existing and prospective customers.
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