Assignment Sample on Innovation and Entrepreneurship
Introduction
At present innovation has become a main tool for the entrepreneurs through whom they develop and deliver new changes within the business organization for earning more profits and business value. The group project in which we worked is based upon discussing the concept of “Entrepreneurship & innovation” that can help in developing an appropriate business model for the “Deliveroo” business organization.
Main Presentation
Business model of chosen organisation
The organisation selected for the project is “Deliveroo” that is an online food delivery company founded in 2013 by “William Shu” in London city of the United Kingdom. The business model of “Deliveroo” business organization is multi-sides and is dependent on two customer segments that includes local customers and the restaurants. In the viewpoints of Geissdoerfer et al. (2018), business models are defined as the overall plan of the business organization that helps it in generating huge amounts of profits. The business model of the “Deliveroo” company works by identifying its key resources, key activities, customer relationships, value propositions, channels, customer segments, cost structure and revenue systems. The parts of the business model canvas of the “Deliveroo” have been explained below.
Key partners
The key partners of the “Deliveroo” company are the delivery boys or riders who act as main collaborators of the business firm who helps in attaining great competitive advantage in future. The other main partners of the firm are the local restaurants from where people order their food. The organization executes all its business operations through online sources only so they focus towards maintaining good relations with the technology providers. The “Deliveroo” company has main partnerships with “Grab” company of South-east Asia.
Key resources
The main resources of the “Deliveroo” business organisation are the software platform, network of a large number of restaurants, delivery team, human resources, software engineers, research managers and many more. The other main key resources for every business organisation include consumer loyalty and employees satisfaction (Metallo et al. 2018). The organisation has been also focusing towards improving their food delivery culture and communication with the customers and restaurants.
Key activities
The key activities of the business organization includes the “Logistics process optimization”, “human resources”, “customer care services”, “Global expansion” and “Delivery services”. The business model of “Deliveroo” company mainly focuses towards maintaining a balancing platform between two different segments of restaurants and customers. The business platform of the organisation includes mobile application for food delivery purposes and official website of the firm.
Customer segments
The customer segments of the business organization include the consumers who desire takeaways, corporate firm’s accounts, premium restaurants and delivery boys for collaborative support. The two main customers segments of the business organisation are the customers and restaurants. The customers for online food applications are the individuals at offices or homes who order food from the quality food hubs or restaurants (Pigatto et al. 2017). The restaurants are the places of food services that do not deliver their products directly to the customers but want to generate a huge consumer base.
Customer channels
The customer channels of the business organisation are the sources through which the business organisation interacts with their customers. The main customer channels for the “Deliveroo” business organization are its official website (Deliveroo.co.uk, 2021). The channel for connecting with the restaurants is its business development team that manages and maintains effective relations with the restaurants. The company does promotion of its business through various social media platforms.
Customer relationships
The main focus of the “Deliveroo” business organization is to maintain superior quality of relations with the customers. They do this by maintaining “Hyper local food delivery” and fast food delivery to homes and offices. The company has been also emphasizing towards creating superior quality of digital and online food ordering experience for their customers. The nature of consumer service provided by “Deliveroo” company is of automated and self service type (Richardson, 2020). The company has made appropriate use of technology and provides personal assistance to the customers through emails, phone and live chats.
Customer profile
The “Deliveroo” company of the United Kingdom possesses a good customer profile. According to the reports of 2018, the total customers linked with “Deliveroo” company were about 6 million and they are expected to increase in future. At the time of pandemic most of the people prefer to stay at their homes and order their food online from their favourite restaurant.
Value propositions
Value proposition of the business organisation helps in analysing the aspects that provide value to the business in the market. Main primary value proposition offered by the “Deliveroo” business organization includes “accessibility”, “price”, “convenience”, “risk reduction” and “brand status”. Accessibility value offered by the business organization enables the customers to receive their food delivery from the local restaurants that don’t provide online food delivery services (Suhartanto et al. 2019). This value also helps the restaurants to generate a huge customer base by providing them food online. The convenience value is offered by the organisation for providing convenient food delivery services to the customers. This value is mainly offered by the delivery individuals of the organisation. The business organisation offers a value proposition of price to their customers by charging low delivery prices and offering discounts on various food items (Kaur et al. 2021). The delivery persons of the business organisation wait for about 10 minutes for the customers if they are not able to take delivery of the orders.
Cost structure
The cost structure of the “Deliveroo” company possesses a cost driven structure that aims to minimize the expenses by providing essential automations and value propositions at low prices. The major cost drivers for business organisations are the marketing expenses and fixed expenses. The customer support and business operations get managed effectively by the costs that are fixed by the business organisation.
Revenue systems
The revenue systems of the “Deliveroo” company includes delivery fees of about £2.50 that have to be provided by the customers for the food they order online. The organisation also gets commission from the restaurants with each order they receive online from the customers. The company also offers monthly subscriptions for the food services.
Significance of business model changes
The “Deliveroo” company can emphasize on doing certain changes in their business model. The company can include weekend offers in their revenue systems for enhancing their business profits. Changes within the business models of the organization help in developing many positive aspects that help the firm in retaining competitive edge in the market (Evans et al. 2017). The company can add electric vehicles and new innovative technologies in their key resources. Changes within the business models encourage innovation and help in developing the IT department of the firm because all the business operations are dependent upon it only.
Impact of contextual and historical factors on business model
The contextual factors of the business organisation help in influencing the performance of the business organisations. The contextual factors of the business organisation get evaluated after analysing the internal and external environment of the business organisation (Garrone et al. 2017). The historical factors of the business organisation help in determining the factors that negatively impacted the business of “Deliveroo” in the past times. These factors need to be considered and resolved for earning more profits in future.
Situational analysis market gap
The situational analysis of market gap helps in analysing and researching upon various sales opportunities that can impact the business of the organisation. According to Suhartanto et al. (2019), market gap analysis can help the organisation in identifying the competitors that are unserviced in the market but can provide great competitive threat in future. The major competitors of the “Deliveroo” company includes “Uber eats”, “Caviar”, “Grubhub” and many more (Owler.com, 2021). These companies can provide tough competition to the “Deliveroo” organization by using advanced technologies and effective business strategies. The innovative strategy for the “Deliveroo” business organization can be using electric vehicles for delivery purposes. This can help in reducing the pollution levels and bring sustainability in the environment.
Recommendations for improving innovations in business model
The innovations in business model can be improved by the following methods:
- The business organisation can identify their target audience and provide them superior quality of customer care and online food delivery services.
- The “Deliveroo” business organization can be recommended to use electric vehicles instead of petrol driven vehicles for delivering the food to customers. This can help in reducing extra cost expenditures of the business firm and bring sustainability in the environment.
- The innovation in business models can be implemented effectively by developing strong value propositions for the firm. This can be done by enhancing customer’s satisfaction levels.
Conclusion
At last it can be concluded that the innovations in the business model of “Deliveroo” company can help the business organisation in earning more profits and revenues. Innovative business models can help the firm in gaining good insights from the customers. The firm needs to emphasize on fulfilling the demand of the customers. Innovation within the business organisation helps the firm in creating a strong brand name and consumer network in the market.
Reference List
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and Barlow, C.Y., (2017). Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Business Strategy and the Environment, 26(5), pp.597-608.
Garrone, P., Grilli, L. and Mrkajic, B., (2017). The energy-efficient transformation of EU business enterprises: Adapting policies to contextual factors. Energy Policy, 109, pp.49-58.
Geissdoerfer, M., Morioka, S.N., de Carvalho, M.M. and Evans, S., (2018). Business models and supply chains for the circular economy. Journal of cleaner production, 190, pp.712-721.
Kaur, P., Dhir, A., Talwar, S. and Ghuman, K., (2021). The value proposition of food delivery apps from the perspective of theory of consumption value. International Journal of Contemporary Hospitality Management.
Metallo, C., Agrifoglio, R., Schiavone, F. and Mueller, J., (2018). Understanding business model in the Internet of Things industry. Technological Forecasting and Social Change, 136, pp.298-306.
Owler.com (2021) “Competitors of Deliveroo company” Available at: https://www.owler.com/company/deliveroo [Accessed on 26 March 2021]
Pigatto, G., Machado, J.G.D.C.F., dos Santos Negreti, A. and Machado, L.M., (2017). Have you chosen your request? Analysis of online food delivery companies in Brazil. British Food Journal.
Richardson, L., (2020). Platforms, markets, and contingent calculation: The flexible arrangement of the delivered meal. Antipode, 52(3), pp.619-636.
Suhartanto, D., Helmi Ali, M., Tan, K.H., Sjahroeddin, F. and Kusdibyo, L., (2019). Loyalty toward online food delivery service: the role of e-service quality and food quality. Journal of foodservice business research, 22(1), pp.81-97.
Suhartanto, D., Helmi Ali, M., Tan, K.H., Sjahroeddin, F. and Kusdibyo, L., (2019). Loyalty toward online food delivery service: the role of e-service quality and food quality. Journal of foodservice business research, 22(1), pp.81-97.
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