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Business Plan

Dexter Johnson

Strayer University

BUS-521

Dr. Campo

July 19, 2019

Business Plan

Overview of Benzino Inc

Benzino Incorporated is a startup firm that offers a range of products and services through its website. The company is an e-commerce platform for electronics, food items, fashion accessories, and more. The platform comprises of an online marketplace which links sellers to consumers. Moreover, the company incorporates logistics services which enable courier services, shipment, and delivery of packages from sellers to buyers. Also, the platform encompasses a payment service which allows financial transactions to be carried out. Furthermore, the company enhanced payment services by introducing cryptocurrency options through strategic partnerships. In this regard, customers will be able to pay for goods and services through means such as Bitcoin.

The company aims at creating a digital community to improve people’s lives through the power of internet technology, thereby becoming the continent’s leading e-commerce platform. The mission of the company is to bring entrepreneurs and consumers together, in a mutually beneficial business relationship. Additionally, the Benzino has a whole foods division that deals in fresh vegetables, fruits and meat. The section offers an organic option for those who prefer fish such as salmon, tilapia and seafood such as prawns.

Partnerships with the world's top electronics companies such as Samsung Electronics have enabled the firm to provide a distribution hub for electronic accessories such as phones, television sets, fridges, and many more appliances. Besides, the firm also acts as a distribution hub for furniture. Buyers can purchase furniture items through the platform while sellers get to market their products. According to the research on diversification, branding and performance of professional service firms by Castaldi, and Giarratana (2018), companies benefit from diversification when they remain as pure service providers.

Value Proposition

A value proposition is referred to as a promise of value to be delivered as well as the customer perception that value will be experienced. Benzino Inc. offers multiple value propositions based on the fact that it serves several customers with varied needs, in different markets. With the company's mission to bring entrepreneurs and customers together, being customer-centric forms part of the value proposition. Customers will be able to find almost anything they need to buy online at the best affordable prices. In this light, among the company's value proposition is the fact that customers can access products and services on the go through mobile phone platforms. This offers the advantage of convenience which enables customers to access the company's services through a mobile phone application that is available for download on a mobile phone play store.

The quintessential value proposition of online convenience stems from the fact that the company plans to serve an audience of people who are in a hurry. In this light, if customers need something there is no need to go physically to a store and purchase. Instead, the delivery of goods is at the forefront of the customer experience. Also, the platform will offer a ready marketplace for business owners who are in need to reach a ready market. Business owners prefer selling to a ready market as opposed to creating a new market. Based on the assessment of Migol et al. (2018), there is a positive correlation between value proposition and firm performance.

The fact that the business represents an all in one stop for products makes the platform very appealing. A majority of the consumers are millennials who are tech-savvy and thus prefer to transact mostly from an internet platform. Therefore, online access makes it an appealing proposition for this target audience.

Business Model

First and foremost, the company will sell goods directly from selected outlets located within strategic locations. Moreover, a percentage of the products will be offered to buyers through the online store while storage is carried out through several warehouses that are currently in operation. Extra storage space will be leased through third party services providers. Consumers will visit the company website on the assumption that products are less expensive as well as readily available for shipping to various locations.

Moreover, the company will provide an avenue for other retailers to sell their products and offer their services. The company will gain commissions on products sold through their platform while maintaining a subscription-based model for companies that are enlisted under its electronics sales line. Customers will also pay a fee to have annual shipping services for products that are bought through the online avenue.

Benzino will also make use of a business model in which the company acts as a middleman to some of the products sold through the online platform. In this light, the company has a majority of its sales on e-commerce. Based on the assessment of Farooq et al. (2019), advancement in an e-commerce infrastructure enhances the relationship between good management and a supply chain that is effective. Also, the company has an advertisement model which will ensure that the company earns from the platform. The subscription model also acts as a loyalty program since customers pay for services annually. In so doing, customers are kept loyal to the brand. Against this backdrop, the company will deploy a hybrid business model which will hinge on subscription-based income, commissions from sales, advertising fees, direct physical sales, and online merchandising. In so doing, there will be less dependence on a single income stream while diversification ensures proper tracking of the income line performance.

Feasibility Analysis

An enhanced technological outlay will be required for Benzino Inc. to move toward the prospect of an online marketplace from which consumers can purchase products. In this technological age, customers are keen for a marketplace that assures simplicity and security in conducting online transactions. Benzino maintains a website with product listing and descriptions but does not permit online purchases currently. There will be a need for the functionality to be integrated with the website to allow secure purchases to be made. The company currently operates a high-speed internet connection, a web server, and software that requires constant updating (Khan, 2016). With the projected e-commerce portal, a foreseeable increase of approximately 10% of the current maintenance cost is expected. While the company currently has an I.T group, it lacks the technical expertise to design, execute and maintain the kind of extensive online platform required for this kind of venture.

The company intends to distribute online purchases carried out through direct shipping from the nearest proximate online store. This strategy will ensure that Benzino Inc. to provide shipping on a timely basis while getting rid of the need for a central warehouse. Such a facility would require a significant capital outlay as well as further operations and maintenance costs. Nevertheless, based on expected growth projections the company will ensure that all store locations maintain proper inventories on-site to meet customer demands. From a marketing perspective, the company will differentiate itself from the competition by personalizing its product packaging. The feature is currently on offer to customers in its ongoing active stores. The company will also implement a mailing list for customers to carry out product promotions. In this regard, the marketing staff will require training in online marketing and promotion.

References

Castaldi, C., & Giarratana, M. S. (2018). Diversification, branding, and performance of professional service firms. Journal of service research, 21(3), 353-364.

Farooq, Q., Fu, P., Hao, Y., Jonathan, T., & Zhang, Y. (2019). A review of management and importance of E-Commerce implementation in service delivery of private express enterprises of China. SAGE Open, 9(1), 2158244018824194.

Khan, A. G. (2016). Electronic commerce: A study on benefits and challenges in an emerging economy. Global Journal of Management and Business Research.

Migol, E., Tretyak, O., & Holm, A. B. (2018). Business model design themes, value propositions, and firm performance. Journal of Business Models, 6(2), 54-58.