Business Plan of a Digital Business

Running head: BUSINESS PLAN OF A DIGITAL BUSINESS
Business Plan of a Digital Business
Name of the Student
Name of the University
Author note

1BUSINESS PLAN OF A DIGITAL BUSINESS
Table of Contents
Introduction:....................................................................................................................................7
Mission:...........................................................................................................................................7
Vision:..............................................................................................................................................8
Objectives:.......................................................................................................................................8
Short term objectives:..................................................................................................................8
Medium term objectives:.............................................................................................................9
Long term objectives:..................................................................................................................9
Market (including types of customers):.........................................................................................10
PEST analysis of Kuwait:..............................................................................................................10
Political factors:.............................................................................................................................10
Government type:......................................................................................................................10
Bilateral agreements with other countries:................................................................................11
International organisations and their policies:...........................................................................13
Tax and tariffs:...........................................................................................................................14
Political threats:.........................................................................................................................17
Terrorism:..............................................................................................................................17
Volatile political relationships:..............................................................................................18
Findings 5:.....................................................................................................................................19
Economic factors:..........................................................................................................................19

2BUSINESS PLAN OF A DIGITAL BUSINESS
International currency exchange rate:........................................................................................22
Gross domestic products value (GDP):.....................................................................................29
Financial network:.....................................................................................................................31
Capital generation:.................................................................................................................31
Investments, revenue generation and liquidity:.....................................................................35
Support of allied sectors:.......................................................................................................36
Social factors:................................................................................................................................39
Educational standard:.................................................................................................................39
Culture:......................................................................................................................................40
Social usage of ecommerce:......................................................................................................42
Technological factors:...................................................................................................................44
Advanced technology:...............................................................................................................44
Cyber thefts:...............................................................................................................................48
SWOT analysis:.............................................................................................................................49
Values of the company:.................................................................................................................50
High quality products:...............................................................................................................51
Ethical and sustainable sourcing:...............................................................................................51
Diversity management:..............................................................................................................52
Innovation:.................................................................................................................................53
Processes of the company (new):..................................................................................................53

3BUSINESS PLAN OF A DIGITAL BUSINESS
Tools for each processes (current and new):.................................................................................54
Tools for Each Processes (New)....................................................................................................54
Digital business enablers...........................................................................................................54
IOT.........................................................................................................................................55
Working of IOT.........................................................................................................................55
Benefits of IOT’s in business organizations (LYL)..................................................................57
Application of IOT....................................................................................................................57
BIG DATA............................................................................................................................57
Working of Big Data.............................................................................................................58
Benefits of Big Data in Business (LYL)................................................................................59
Application of Big Data for marketing and sales..................................................................59
AI...........................................................................................................................................60
Benefits of AI in business (LYL)..........................................................................................60
Predictive Analysis................................................................................................................61
Benefits of Predictive Analysis.............................................................................................61
Object Recognition in business.............................................................................................62
Working of Object Recognition in business..........................................................................62
Benefits of Object Recognition in business...........................................................................62
Application of object recognition in business.......................................................................63
Chat-bot.................................................................................................................................63

4BUSINESS PLAN OF A DIGITAL BUSINESS
Working of chat-bot...............................................................................................................63
Benefits of chat-bot in business.................................................................................................64
Application of chat-bot in marketing and sales of LYL............................................................65
New Predictive Analysis Model................................................................................................65
Use of UNSTRUCTURED DATA............................................................................................68
Massive amounts of information (BIG DATA).....................................................................69
Cloud Computing.......................................................................................................................70
Perspective Model.....................................................................................................................71
Collaborative models.....................................................................................................................71
Benefits of collaborative model for LYL..................................................................................71
Digital business based on collaborative models.....................................................72
Cyber security and Digital Business Security...........................................................................72
Digital marketing.......................................................................................................................73
Omni-channel............................................................................................................................75
Transformation of value chain:......................................................................................................75
Value chain analysis:.....................................................................................................................76
Credit Risk modelling:...................................................................................................................78
Operational risk model:.................................................................................................................78
Quality Risk models:.....................................................................................................................79
Market risk models:.......................................................................................................................79

5BUSINESS PLAN OF A DIGITAL BUSINESS
Conversion risk models:................................................................................................................80
Segmentation model:.....................................................................................................................80
Branding models:...........................................................................................................................80
Demand Forecast model:...............................................................................................................80
Fraud model:..................................................................................................................................81
Fidelity Models:.............................................................................................................................81
Organisation of the company (current and new):..........................................................................81
LYL Current Organizational Structure......................................................................................81
Channels:.......................................................................................................................................88
Current Traditional Supply Channel..........................................................................................88
Current Traditional Distribution Channel..................................................................................90
E-Commerce Channels..............................................................................................................91
E-Commerce Distribution Channels..........................................................................................92
Products/Divisions of the company:..............................................................................................93
Division 1 (Shower gels and skin care products)......................................................................93
Division 2 (Women’s FMCG’s)................................................................................................94
Division 3 (Apparel’s)...............................................................................................................94
Division 4 (Food).......................................................................................................................95
P&L structure (current):................................................................................................................96
P&L structure:...............................................................................................................................96

6BUSINESS PLAN OF A DIGITAL BUSINESS
References:....................................................................................................................................97

7BUSINESS PLAN OF A DIGITAL BUSINESS
Introduction:
The country of Kuwait is very rich and is backed by huge oil reserves. The residents in
the country have high disposable income and can afford high quality products. The people in the
country usually lead high standard of life and seek more healthy products. The country has an
extreme geographical conditions consisting of vast and dry Arabian Desert. The country thus
suffers from shortage of food due to utter deficiency of cultivable land. The farmers in order to
cultivate more crops use high amount of chemicals which finally pass into the consumers. The
pesticides have shown to have detrimental effects on the health of the consumers, both man and
animals (KuwaitTimes.com. 2019). The similar trend of excessively high chemical addition
continues even while making personal care products and apparel. This scarcity of pesticide free
food, apparel and skincare products is the gap in the Kuwaiti market which the new business
plan would seek into fill. Love Yourself Limited (LYL) is a traditional retail company based
in Kuwait City, the capital city of Kuwait. The company till now has no digital presence
and operates through retail outlets in Kuwait city. The company would expand expand into
the digital platform by opening its official website and own ecommerce portal to market its
products.
Mission:
The mission of Love Yourself Limited is offering high quality products of organic origin
to customers on the traditional format as well as on the digital platform to generate high revenue.
The products of LYL are free from harmful chemicals and environment friendly. The company
would carry forward this mission of offering high quality organic products to the new digital
segment as well. The digital marketing platform of LYL would be accessible on different types
of devices like desktops, laptops, tablets and smart phones. The goods which the company offers