Assignment 24A – Venture Concept No. 1


Assignment 24A – Venture Concept No. 1
·         Opportunity
o   Coffee is one of the most popular benefits in the united states and there has been a rise of food delivery services in the form of applications like Uber eats and Post mates. With the rise of all of these food delivery services there has yet to be one that focuses solely on delivering coffee to customers that do not want to or do not have time to wait in long lines at Starbucks.
o    The changes that have occurred in the environment that have created this opportunity is that there has been a trend of food delivery services that have become more and more popular that has resulted in a demand from customers wanting their food/ beverages delivered to them so they don’t have to wait in lines, I think the window of opportunity is huge because there isn’t currently a service out there that satisfies the needs of my target demographic wanting coffee when and where they need it.
o   Customers are currently satisfying this need by using online mobile ordering from their preferred coffee shop, so they can get their coffee slightly faster than the traditional customer. They aren’t very loyal to this method since the use of mobile ordering still requires you to wait in line (a slightly shorter line than the traditional one).
o   I think my target market of potential customers would be individuals who enjoy coffee on the go and do not like waiting in line. My primary market would be college age students who are the busiest trying to balance their work/ school/ social life and do not have time to wait in line for a cup of coffee.
·         Innovation
o   I believe that my service is one that is new and creative that addresses a need of customers that has not yet been satisfied by the market in its current state. My service would be incrementally innovative in that food delivery services are not a new concept, but the idea of a coffee delivery service is wholly unique.
o   My service would be called coffee on demand and it would be a service that delivers coffee to the busy college student or worker that does not have the time or patience to wait in a line for their caffeinated beverage. My service would allow you to choose from the plethora of coffee shops in their area and pick what coffee beverage they want, and it would be delivered to their exact location or wherever they would like it delivered. It would work like any other food delivery service like uber eats or post mates except that it would deliver coffee to you whenever and wherever you need it. The coffee would be delivered by our employees that can work as often or as little as they want, similar to the employees of uber. We would make profits by selling the coffee to our customers for slightly more than it costs to get the coffee in person because our customers are paying for the convenience of getting the coffee when and where they need it, in addition to the cup of coffee they ordered. We would also make money by charging a delivery fee because our customers are paying for the delivery of that cup of coffee in addition to the cup of coffee itself. The delivery fee would also be a necessity because that is how we would pay our employees. We would also make money by allowing coffee shops to pay us a fee to promote their coffee shops on our app more than other coffee shops.
·         Venture concept
o   Individuals will use buy into my service because they are busy individuals who want to get their coffee when and where they need it. They also do not want to have to wait in lines because they are either too busy to wait in line or they are too impatient to do so.
o   Businesses will also want to invest in my business because it will provide them with the opportunity to reach customers they might not have been able to reach before, fostering a relationship that will be beneficial to both the coffee shop owners and our company.
o   I think it will relatively easy to get customers to switch to my service because quite simply there isn’t a service out there that offers what we offer. So, the term switching does not really apply because they aren’t necessarily switching as much as they are embracing a wholly new service. There aren’t really any competitors to my service at the moment.
o   I think that price points and customer support would play important roles in defining my business concept because we would have to have a compelling price point for people to use our service instead of going out and buying the coffee themselves and the customer would need to be supported adequately so they keep using our service.  
o   I think first and foremost I would need to invest in the employees to keep my business sustainable. I would need to make sure we could sufficiently entice people to want to deliver our product for us by providing plenty of benefits and competitive wages in comparison to other food delivery services. The number of employees would vary based on the populations of each city that we operate in and the demand for the service in each city.
·         Unfair advantage: I think that my unfair advantage would be my social capital because is important to know people that are connected to my industry. It is also important to know people that can help you with your business concept, for example I know someone that knows how to program apps.
·         What’s next: I would like to fully realize this business concept and make money to keep this business sustained and perhaps invest in philanthropic efforts.
·         For me: I would like to expand into other territories once I have become successful in this area.

Comments

  1. Brynn's ENT BlogApril 13, 2020 at 8:03 AM

    Hey Jc,
    I thought that your entry was very well thought out and that you took a very good approach to it. I wouldn't say that social capitol is an unfair advantage however. I think that its very easy to get into touch with people who are motivated in these fields and want to better their business opportunity. In college, we have a lot of connections that we make and its important to make note of how our friends could benefit us in the future.

    ReplyDelete
  2. Sidney TebbalApril 13, 2020 at 8:33 AM

    Hi JC,
    Your venture concept is very organized and it shows that you have taken time to think about your business venture and solve potential problems. I think your social capital is a great advantage over others because it puts you ahead of the race as far as getting your business up and running. I also think your venture will be able to scale to great lengths if the right approach is taken and marketing and sales is up to par.

    ReplyDelete

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