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Business Model for Online Grocery Shopping App


Task: Writing a 5-page (1500-words) document is possible if you follow these tips:

  1. Format this as a BUSINESS REPORT format (Title Page; Table of Contents, Executive Summary; Body (Sections); Conclusion; Appendices; and References).
  2. Dedicate a half-page to the EXECUTIVE SUMMARY (This is essentially frames your approach, what you found, and what your conclusions are). In some ways, think of this as your 'pitch' to the reader.
  3. HOW MANY PAGES?!! Look to the five (Task) questions. Think of these as roughly a page each when you are writing. You may choose to reduce or elaborate on some questions given the weighting of assessment on each.
  4. Let's look at the ORDERING OF THE SECTIONS (or task questions).
    As I said in the recorded briefing on the assignment, you might choose to change the order of addressing the questions so that the sections run as Q1 (Customer/market problem), then Q 2 (Argue the benefits of your idea to solve the problem), then Q5 (Feasibility) followed by Q3 (Business Model) then Q 4 (Critical Success Factors). I think this arrangement has a logic to it that flows better. Please listen to my recorded briefing if you haven't already done so (it's in the Assessment 2 folder).
  5. Use APPENDICES to provide additional depth on aspects that you have discussed in the five task questions. This means you will have an appendix for the Business Model, one for the Feasibility Screen (there are two pages uploaded to the Assessment 2 tab that you can print out, write on, scan, and include in the one document), and one that comprises a page each for the respective contributions from members on your team (more about this below). And others that you think support the points you make in your discussion (such as the market problem or consumer research).


Executive Summary
The key objective of this assignment is to devise a new online grocery app for all segments of customers. The objective is to gain comprehension of different factors for considering the setting up of the online grocery shopping app. There is inclusion of introduction, sections in the body elaborating the process of supply chain management of the newly developed app. The key motivation for developing the online grocery shopping app is to develop an app that addresses the issues that every customer’s faces regarding shopping of groceries from the retail or offline retail stores. The experiences that every person undergoes while hopping the groceries are identified and strategies are made regarding resolving them.

The world is evolving and altering at a rapid rate and is driven by various habits of shopping. Moreover, with the integration of advanced technology, customers are getting oriented towards making their lives easier and more convenient. The basic issues that every individual counteracts during grocery shopping includes the carrying of heavy bags of groceries that weigh around 10-12 kilograms from the retail or offline grocery stores right which derive from personal experience of every individuals (Ahmed, 2016).

The climatic conditions of any place also play a crucial role in having worrisome experience in shopping for groceries in the offline or retail grocery stores. It is true on the part of every individual’s experience. In this report , there illustrations of the methods and the ways in which the customers can use an online app for groceries shopping for having great deal of convenience (Ali, et al., 2017). Grocery has been regarded as the largest segments in the retail industry and has great potential to move online. Additionally, it has been observed that the fast development of shopping by using the mobile and smart phone devices creates new scope. The concept for business would be saved with well positioning for taking advantage of structural trends that are long termed for the advantages of the partners, shareholders and more specifically for the customers.

Customers / market problem
The key issues that customers in this competitive age face include the shortage of time due to heavy pressures of work in their professional as well as in their personal lives. It has been observed that every individual is currently counteracting hard time in balancing the work and life balance in their overall lives. Shopping for groceries is a big part of the personal lives of every individual in the world. According to (Belavina, Girotra & Kabra,(2016), choosing desired products from a wide range of options in every section of groceries in the physical manner becomes quite hectic n for people (Belavina, Girotra & Kabra, 2016).

This is specially observed for employees who return from work late at night but have to go for shopping purposes. This also includes issues regarding costs that every individual faces in travelling or driving to the retail shops for making purchases. People also face issues in travelling from one retail or physical store to another in the case where the item of grocery that they desire is not available in one retail store (Beynon-Davies, 2018). Hence, resolution to all such issues can be conveniently brought for sorting out these issues by the use of online grocery shopping app.

Benefits of online grocery ordering app
The benefits of using online grocery ordering app are many in numbers. Using of online app in this regard is a highly effective time saving approach. Moreover, this method is very hassle free in nature. Every individual desires of having more than 24 hours simply with a motive of completing all the work within in a day as they find it very hard for completing all kinds of tasks that they plan to do. Getting groceries becomes hectic in such scenarios. There is no possibility of increasing the hours in a day; however, customers can sue such online app for shopping groceries that can save them a considerable amount of time. According to Boiko (2016), customers will not have to roam with huge bags in their hands in the market for making purchases of selected groceries every time (Boiko, 2016). Hence, with the app for grocery shopping, the efforts as well as time can be saved by the customers.

Moreover, the users shall be able to order fresh groceries with a single click. With the use of online app for grocery shopping, users shall be able to manage their budget in a better manner. Most of the times, people shop for the groceries and are not able to keep a check on the overall price that incurs. Making continual calculations for every product that one puts in the basket is not feasible all the time. By suing the online app for grocery shopping, the users can have a proper tracking facility regarding the incurring amount of their overall exposes.

Using such integrated online app for grocery shopping will enable them to manage their budget that is specified for grocery shopping in a better manner and shall also be able to carry out grocery shopping in a smart manner (Chambers & Humble, 2017). Customers shall also get convenience regarding making payments as they shall be provided with options for online payment system or have cash on delivery systems.

As the concept of online business has been becoming the central opportunity for growth in the advancing age of business, gaining attention of the tech-savvy customers depends on the fulfillment of the logistical issues of sales of grocery items which can be amalgamated with a comprehension of the desires and needs of the customers. Finch said that there are seamless opportunities for growth and success of having online app for grocery shopping as customers look for conveniences and ease in this hectic lifestyle (Finch, 2016). Making groceries violating to them at their doorstep at their desired time with the exact items among a wide range of products is valuable at this age.

Business model
The business model is inclusive of the value chain of logistics from the perspectives of the customers and hence will be categorized into four elements of discrete nature for a shopping trip. This would include the customers to visit the website of XYZ. He or she has to register and subscribe to the services in the official website for XYZ. This will be followed by the search and buying of the items of groceries from a wide range of brands and varieties.

The user has to add the items in the online cart and final check the payment. He then has to choose the system for making the payments of the groceries and select the final option for payment. On receiving the order, the online app for grocery shopping will contact the registered vendor for fresh supplies and they will pack the items (Ghezzi, et al., 2015).

The registered or Delivery Company or authorities will receive the package from the vendor and deliver it at the address of the customer. In the case where the customer might have chosen cash on delivery option for making the payments, the delivery personnel will collect the amount and provide the bill of the purchase to the customer along with keeping a sample of the same with him. After receiving the payment, the backend operations regarding the supply chain will be managed by separate department (McKeever, 2016). The payment that the customer will be making will be denoting to the Admin earning. It will be equivalents to the commission of the admin along with the subscription fees. The admin will be in charge of sending or transferring the amount to the vendor of the Admin commission.

Critical success factors
The success of online app for grocery shopping will depend upon various factors which need to be considered before making the actual launch of the entire business. As per Watson, McGowan & Cunningham (2018), the success factors include the strong promotions and branding of the website of the online app for grocery shopping through various channels (Watson, McGowan & Cunningham, 2018). The online app for grocery shopping will have to gain unique merchandising for its business operations.

The online business will be adding enhanced value to the users by facilitating them with discount packages which will be available for regular buyers. The prices of different products that will be sold through the online app for grocery shopping will be competitive in the conventional grocery market (McKenzie, 2017). XYZ as an online app for grocery shopping will have increased efficiency regarding its distribution and supply chain as it shall facilitate faster delivery of products to the customers. XYZ will have a better design of the website which will improve the experience of the customer. The website of the business would facilitate ease and convenience of the navigation with fast load times in the site for its customers (Yu & Wiklund, 2015).

There will be provision of multiple language selection will be provided on the official website of the customers (Ross & Byrd, 2015). This will further assist customers of all age groups to use the website and avail the facilities of online app for grocery shopping. XYZ, as an online app for grocery shopping will not be hiding any kind of additional costs related with the grocery products. The company will be displaying all kinds of additional costs that are related with the products (Rougès & Montreuil, 2014).

The online app for grocery shopping will also provide detailed information of product for the awareness of the customers. It shall also facilitate guarantee of money back within 7 days of the grocery items or products does not happen to meet the requirements or are found to be defected. However, the company would include strict channels and team for regulating higher quality checking of the products before they are dispatched for delivery through the delivery personnel at the door step of the customers at the desired destination at the desired time (Simón-Moya & Revuelto-Taboada, 2016).

The report included various aspects of online app for grocery shopping. It elaborated different benefits, business model and success factors for the business operations of online app for grocery shopping. The significance of having such system has been highlighted in the report in a brief manner.

Ahmed, F. (2016). Online grocery shopping in Jyväskylä: Business models & Demand.

Ali, S., Saleem, M., Ahmed, M. E., Khan, M. M., Shah, N., & Rafiq, S. (2017). Models for Online Grocery Shopping–A Study of Pakistani Online Market.

Belavina, E., Girotra, K., & Kabra, A. (2016). Online grocery retail: Revenue models and environmental impact. Management Science, 63(6), 1781-1799.

Beynon-Davies, P. (2018). Characterizing Business Models for Digital Business Through Patterns. International Journal of Electronic Commerce, 22(1), 98-124.

Boiko, V. I. (2016). Methods Of Designing And Implementing A Business Plan In The Cultural Sector Of The Regions Of The Country. In Perspective Directions Of Scientific Researches (pp. 169-172).

Chambers, I., & Humble, J. (2017). Plan for the planet: a business plan for a sustainable world. Routledge.

Finch, B. (2016). How to write a business plan. Kogan Page Publishers.

Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study on the Impact of Business Model Design & Lean Startup Approach versus Traditional Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).

McKeever, M. (2016). How to write a business plan. Nolo.

McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: experimental evidence from a business plan competition. American Economic Review, 107(8), 2278-2307.

Ross, L. W., & Byrd, K. (2015). Business Plan Competitions: Start-Up'Idols' and Their Twenty-First Century Launch Pads.

Rougès, J. F., & Montreuil, B. (2014, May). Crowdsourcing delivery: New interconnected business models to reinvent delivery. In 1st international physical internet conference (pp. 1-19).

Simón-Moya, V., & Revuelto-Taboada, L. (2016). Revising the predictive capability of business plan quality for new firm survival using qualitative comparative analysis. Journal of Business Research, 69(4), 1351-1356.

Watson, K., McGowan, P., & Cunningham, J. A. (2018). An exploration of the Business Plan Competition as a methodology for effective nascent entrepreneurial learning. International Journal of Entrepreneurial Behavior & Research, 24(1), 121-146.

Yu, W., & Wiklund, J. (2015). Nascent Venture Team Diversity And Nascent Venture Performance: An Investigation Of Business Plan And Opportunity Type (Summary). Frontiers of Entrepreneurship Research, 35(8), 11.


Business Model for Online Grocery Shopping


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