BUS344 INTERNATIONAL MANAGEMENT MAJOR PROJECT PROPOSAL LECTURER: DR JURGEN RUDOLPH GROUP MEMBERS NAME: APRIL HOON BOON TENG (33378201) LEE YI HUAI (33413826) ONG KWEE CHEN, ANGELIA (33483324) CHRISTINA TJAHYADI (33499746) YAP JIA KERR, ASHLEY (33574575) TOTAL WORD COUNT: 11,1565 REFERENCE STYLE: APA 6THEDITION URKUND SCORE: 1%
TABLE OF CONTENTS: 1. Executive Summary.......................................................................................... 5 2. The e-commerce and logistics industry ............................................................ 6 2.1 Logistics for the e-commerce industry in Singapore ......................................... 7 3. Ninja Van’s Company Introduction ......................................................................... 8 3.1 Mission and Vision ............................................................................................ 9 3.2 Company Profile ............................................................................................... 9 3.3 Shareholder structure ..................................................................................... 10 4. Ninja Van’s services in India ................................................................................ 10 4.1 Ninja Van’s entry in India ................................................................................ 11 4.2. Porter’s Five Forces Analysis ........................................................................ 12 Threat of New Entrants – Medium to High ............................................................ 12 Bargaining Power of Buyers – Medium ................................................................. 13 Bargaining Power of Suppliers – Low ................................................................... 13 Threat of Substitutes – Low .................................................................................. 14 Industry Rivalry – High .......................................................................................... 15 4.3 Customer Profile and Demand Analysis ......................................................... 15 Geographic Segmentation .................................................................................... 15 Demographic Segmentation ................................................................................. 16 Psychographic Segmentation ............................................................................... 16 Behavioural Segmentation .................................................................................... 18
Environmental ....................................................................................................... 23 Legal ..................................................................................................................... 24 5.2 SWOT Analysis ............................................................................................... 25 Strengths .............................................................................................................. 25 Weaknesses ......................................................................................................... 25 Opportunities ........................................................................................................ 26 5.3 Hofstede’s Cultural Dimension........................................................................ 27 5.4 Government Constraints and Incentives ......................................................... 29 6. Business Strategy ................................................................................................ 30 6.1. Product/ Service Positioning .......................................................................... 30 6.2 Pricing Strategy .............................................................................................. 33 6.3. Distribution and logistics ................................................................................ 34 6.5 Advertising and promotion .............................................................................. 48 6.8 Future plan ..................................................................................................... 54 7. Ninja Van’s financial planning .............................................................................. 55 7.1. Benefit-Cost Analysis ..................................................................................... 55 Projected Profit and Loss Statement Forecast for Ninja Van from Year 2020 to Year 2022 ............................................................................................................. 55 Projected Profit and Loss Statement Forecast for Ninja Van from the Year 2020 to the Year 2022 ....................................................................................................... 57 Projected Expenses Forecast for Ninja van Pte Ltd from the Year 2020 to the Year
1. Executive Summary Ninja Van is one of Singapore’s fastest growing last-mile e-commerce logistics company. With the support of Grab, a mobility technology company in Singapore, it is set to scale up strategically within the region. With the e-commerce industry booming, this business plan aims to look into the probability of Ninja Van venturing into India by exploring all the business aspects of a joint venture. India has one of the highest growth rates and the fastest economies in the world. With its technology capabilities and strategic planning, the report will dissect the advantages, and disadvantages Ninja Van will face upon entering this new market. PESTLE and SWOT analysis will be used to deep dive into the macro-environment factors for both Ninja Van and the host country, as well as the potential encounter of opportunities. This report will provide further insights as to the ideal way to enter a challenging market- India, by using the 7Ps of the service marketing mix as a business strategy. With the immense growth in the service industry, customers are not only focused on the outcome but also obsessed with customer experience. This plan will be tailored to suit the India market from advertising and marketing to its pricing strategy. To conclude the report, contingency plans will be put in place in the event of operational failure or unforeseen circumstances such as the occurrence of a natural disaster. The report will also cover suggestions for management consideration and business advisors.
2. The e-commerce and logistics industry Technology is proliferating over the years, driving the e-commerce industry to significant growth over the world. The global sales of e-commerce grew by 18% from 2017 to 2018. Consumers spent $2.86 trillion on the internet in the year 2018. The internet has changed how people shop and enable consumers to shop in the diverse market across the globe (Young, 2019). The evolution of the e-commerce industry has changed the logistics and transportation management system. Hence, the role of last mile delivery is increasingly important as it facilitates the issue of limited vehicle capacit y, while e-commerce customers have high expectations for the arrival timing of their items from order till delivery (Burnson, 2019). The global logistics market is expected to grow from $8.1 trillion in 2015 to $15.5 trillion by 2023. The e-commerce market place such as Amazon, Taobao and others are driving forces for the expansion in the logistics industry (Henry, 2019).
2.1 Logistics for the e-commerce industry in Singapore The logistics industry is a critical enabler to Singapore’s economy. Singapore has the strategic location of the heart of Asia, and its logistics professionalism has helped to attract the world’s top 25 third-party logistics company to establish their headquarters in Singapore (Zhang, 2018). Singapore has the quickest time in export and import, and imported goods to Singapore take merely 30 hours to clear the border compliance process (TAN, 2018). Besides, Singapore has the highest demand for online purchasing in Southeast Asia. Singapore is ranked the top country within Southeast Asia, where most consumers shop online after working hours (Mato, 2018). Therefore, the growth of e-commerce is a positive indication for the logistics industry in Southeast Asia. Figure 1 (Singapore eCommerce Insights | 4.11 Million Online Shoppers By 2021. (2019). Retrieved from https://www.eshopworld.com/blog/singapore-ecommerce-insights/) Porter’s Five Forces framework on the e-commerce delivery service in Singapore indicates that the threat of new entrants in Singapore is low. Other courier service providers can easily copy the last-mile delivery business model.
high. Hence, vehicle dealerships make minimal profits. The buyer's bargaining power is high as it has a greater number of options available with competitive pricing. (Figure 2. Retrieved from: https://blog.moneysmart.sg/budgeting/delivery-courier-service-singapore/) 3. Ninja Van’s Company Introduction Ninja Van (NV), a privately held company, is the fastest growing last-mile e-commerce logistics company with millions of packages delivered every month. NV's services have already expanded to several countries in Southeast Asia, which includes Malaysia, Philippines, Indonesia, Thailand, and Vietnam in just six years. The company has 2,000 full- time staff and 10,000 full- time drivers across the region (Jagdish 2018). Technology plays a crucial part in NV. NV provides businesses needs with an innovative technology-based solution to logistics optimisation (Tay, 2015). The
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