Business Idea Generation: Quikr.com Business Model
Task: Writing a 5-page (1500-words) document is possible if you follow these tips:
- Format this as a BUSINESS REPORT format (Title Page; Table of Contents, Executive Summary; Body (Sections); Conclusion; Appendices; and References).
- 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.
- 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.
- 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).
- 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).
Introduction: This report includes a new business idea of e-database and online purchasing and selling platform of used and second hand products for people. This business idea would be an online service for both buyers and sellers by which they would be sell their unused old products like television, electronic equipments, and mobile phones, automobile and household products. Along with this, the platform would also be helpful for the customers to buy used and second hand products at the affordable rates. By this way, the proposed business idea would be helpful in providing innovative platform to meet the needs of buyers and sellers for products. The name of the company would be Quikr.com. The company would target local as well as global customers by its innovative business idea (Burns, 2014).
Customer / Market Problem: People sometimes face the challenges for selling the old products, automobile, and electronic equipment at their preferred costs. People usually are not able to find the consumers of the second-hand goods as there is no proper value of already used products. Further, there are people who faced issue while buying the products as they are not able to buy the new products due to lack of money. They need used and second hand products in the good condition and affordable prices. For this, there is no significant channel of platform by which both buyers and sellers of used and second hand products can fulfill their needs and requirements. Along with this, buyers also face the issue of quality and condition of the second hand product which is going to be purchased. So, there is the need of digital innovation that is helpful for buyers and sellers to purchase or sale the used products on the best prices.
Benefits of business idea: The business idea is all about providing an e-database for the people where they can buy and sell the used and second hand products. There are some benefits by selecting this idea for the business. One of the benefits of this business idea is competitive advantage. For this e-database service, there is limited competition in the market. There are only limited numbers of websites that provide such type of service to the customers. Along with this, the websites that provide digital platform for the customers are for new products only (Brocke, & Rosemann, 2014). Further, this business would be profitable in future as the e-database would also act as the seller and buyer of used products that would save the time and efforts of the seller and buyers. So these people would choose this platform to buy and sell their second hand products. The company would expand itself in the market of selling and buying of old products so overall profit would be maximized at the significant level (Kim & Min, 2015).
Feasibility: The feasibility of this new business idea would be evaluated by benchmarking. By this method, the success or failure of the new business idea would be measured by the definite criterion. In order to analyze the feasibility of the business idea, figure of overall registration by people would be analyzed for the evaluation. Specific number of registration would be considered as the benchmarked for the analysis of success. Registration of people in database would be recorded during the specific months. The success of the business idea will be analyzed by the benchmarked number of total registration in data base.
Business model: For the success of the new business, it is important for the company to adopt an effective business model. The business model would be helpful in dealing with various business activities and operations on daily basis. Along with this, it would also be helpful in achieving the business goals and objectives. The business model canvas for Quikr.com is as follows.
Key partners- Key partners would be those people who want to sell or buy the products. Company would invite them to register themselves on the data base so that they can identify their potential customers. Along with this, designers would be key partners who design innovative database for the company (Stair & Reynolds, 2013).
Key activities- Company will operate with variety of used products for sustaining the effective position in the operating market. Further, Company will deal with buying and selling activities to the customers. Company would have unique services as compared to other companies that are offering online facilities to buy and sell the products.
Value proposition- In the value proposition, the company would provide free services to the customers to register itself on the data base. Further, the data base and platform would be easy to access and it would be easy for the customers to get contact. Company would provide effective services for people who want to buy or sell their products (Hoskisson, 2009).
Key resources- The key resources of the company would be software development, and website maintainer. Along with this, brand value and website would be resources of the company by which customers would be targeted (Demirkan, 2015).
Customer relationship- It is important for the company to develop strong relationship with the customers for the success if online business. For this, public relations would be used and proper information of the business would be provided to the customers on its website (Yip & Bink, 2007).
Key channels- There are various channels that are effective and useful in targeting the customers. By providing relevant information through media channels, company would be able to attract people at large level. At the initial stage, social media tools, website, mobile phones and some traditional media channels like Television and print advertisements would be used (Makanyeza, 2015).
Segmentation- For this new online business, customers would be segmented based on geographic area i.e. metro cities, urban cities and suburban area. Further, mass market would be targeted to have large customer base in the business.
Revenue- In order to gain profit in the business, company needs to ensure the medium of revenue generation. Quikr.com would generate its revenue from various advertisements, selling and buying the products by the customers and commission from the service providers.
Cost structure- There are various operations in which cost is incurred. The estimation of total cost would be shown in the financial statement of the company. The cost would be incurred in domain, salaries, development cost, promotional cost and maintenance cost.
Critical success factor : There are some successes factors that need to be understand by the company while starting the new business. By understanding those factors, company would be able to achieve competitive advantage in the industry. Those factors are as follows:
Branding- This factors is helpful for the company to attract large customers base. By using internet, branding can be done in the effective way. Unique design, using social networks, conducting advertisement campaigns, and focusing on feedbacks would be able for the company to enhance the brand value (Amit & Zott, 2001).
Customer retention- This is the most important factor for the success of the business. By providing effective customer services, company would be able to retain them effectively. For this, company needs to be connected always with the existing customers. Customer retention would be helpful in maximizing the profit.
Marketing- This is crucial success factor as marketing with different channels would be beneficial for the company to target the customers. Using various promotional tools and social media platforms, Quikr.com would provide relevant information about the business and products to both buyers as well as sellers (Drummond, Ensor & Ashford, 2012).
Conclusion : Based on the overall discussion, it is analyzed that People generally are not able to find the buyers of the used products as there is no proper value of already used products. Similarly, people are facing issue while buying the products as they are not able to buy the new products due to lack of money. So, this report is a new business idea of online platform that would be helpful for the customers to buy used and second hand products at the affordable rates. The report discusses about the business model of Quikr.com that would be helpful in dealing with various business activities and operations on daily basis. Further, the feasibility of this new business idea would be evaluated by benchmarking. The success of the business idea will depend on the benchmarked number of total registration in data base. In case of critical success factors, there are some factors that are important for the success of Quikr.com i.e. branding, marketing and customer retention. Unique designs, using social networks, conducting advertisement campaigns are helpful in enhancing the brand image of the company.
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