New Markets: Barriers and Ways to Overcome - Crowd Delivery

This presentation discusses the barriers faced by Crowd Delivery in entering new markets and ways to overcome them. It explores potential market opportunities in Australia and New Zealand. The company aims to become the primary on-demand delivery service for groceries across Australia and the world. The presentation includes an overview of the company, its objectives, and the barriers and ways to overcome them in three potential markets. The presentation is relevant to the Food and Beverage industry and can be used for courses related to marketing, business strategy, and entrepreneurship.

New Markets: Barriers and Ways
to Overcome
Crowd Delivery
[Student Name] – [Student Number]

Introduction
• The power point presentation is based on the
analyses of the barriers that are associated
with the entering a market. Along with this, it
includes the ways that will help the company to
overcome those barriers.

Overview of the company
• The company that has been
selected is Crowd Delivery
which is a new start-up in
Brisbane, Queensland,
Australia.
• The team of the crowd delivery
is highly driven by solid
foundations in the tech,
multimedia, sales, and
accounting.

Employees of company
• The company was founded by Warwick Cox in
2015 with 12 employees in begin. Along with
this, the company falls under the Food and
Beverage industry.

Objective of company
• The objective of the company is to become the
primary On-demand delivery service for the
groceries across Australia and the world. This
reflects that the company is willing to expand the
business.
• The company offers an opportunity to every
person to access to home delivery services for
groceries and alcohol on demand.

Market Opportunity #1
• The market that has been selected for the
expansion of the business in New South Wales
states of Australia.
• According to the report from Nielsen, the online
grocery market is expected to reach $2 billion
in Australia in the coming 5 years.

Continue
• Supermarket and Grocery store is continued to
maintain the vast majority in the market at just
more than 60% then the other markets of café,
restaurants, liquor, food retailing and many other.

Barriers
The company finds numerous barriers in the
market. Some of them are given below: -
• Competition- There is many supermarket and
grocery stores are available that are offering good
products at low prices to the customers due to
which people like to visit the stores.
• Changing demands of the customers- The
demands of the customers are changing in
Australia as they are willing to buy more of the
healthy products instead of grocery products.

Ways to Overcome
• The company should start
providing the healthy
products to the customers
on demand for which they
need to tie-ups with the
suppliers.
• This will helps the
company to make it
different from its
competitors and to meet
the needs of the
customers who are
looking for healthy
products.

Market Opportunity #2
• The company has the opportunity in Victoria,
states of south-eastern Australia in Melbourne
city as the state is the most densely populated
state.
• The company will be able to generate the high
revenue due to the high population in the state.
• This is the fact that the Food and Beverage
industry of Australia is increasing with the
revenue accounted to US$279m in the year 2018.

Barriers
• The major barrier faced by the company is
changing the lifestyle of the people in the market
of Australia. People like to visit the place where
they can buy everything under one roof
(Departmental stores).
• Another barrier that the company will face is the
nearby grocery stores that provide the home
delivery to customers.

Ways to overcome
• Promotion of the company and their service is an
effective way to generate awareness about
services with the help of sales team.
• Crowd delivery should add more products that
they can offer to their customers.
• The company should provide the products at the
affordable prices.

Market Opportunity #3
• The grocery market has grown in New Zealand as
it is expected to achieve the value growth at
constant prices with CAGR of 3% in 2016.
• In the country, it has the vast opportunity as the
county has a diverse multicultural population of
4.33 million people. The preferable city of the
country is Auckland with population 1.4 million.

Barriers
The major barriers of the company in the market of
New Zealand are: -
• Political factors of the country
• Multicultural population with diversified needs

Ways to overcome
• The company should adopt the diversification
strategy that helps them in satisfying the needs
of the customers.
• Along with this, the company should appoint
political consultant before entering into the
market of New Zealand.

Conclusion
• In the end, it can be concluded that the company
has the vast opportunity in the states of Australia
and also across the border of Australia.
• Moreover, the company also has an opportunity
in other potential markets where they can spend
their business.

References
• Bassanini, A. and Brunello, G. (2011) Barriers to entry, deregulation
and workplace training: A theoretical model with evidence from
Europe. European Economic Review, 55(8), pp.1152-1176.
• Burmaster, A. (2009) Opportunities Abound For Online Grocers
[Online]. Available from:
http://www.nielsen.com/us/en/insights/news/2009/opportunities-aboun
d-for-online-grocers.html
[Accessed on 23rd April 2018]
• Crowd delivery (2018) Crowd delivery [Online]. Available from:
https://gust.com/companies/crowddelivery [Accessed on 23rd April
2018]
• Euromonitor International (2016) Grocery Retailers in New Zealand
[Online]. Available from:
http://www.euromonitor.com/grocery-retailers-in-new-zealand/report
[Accessed on 23rd April 2018]

• FMCG (2017) Online grocery market set for massive growth [Online].
Available from:
https://insidefmcg.com.au/2017/04/12/online-grocery-market-set-for-m
assive-growth/
[Accessed on 23rd April 2018]
• Geroski, P.G. and Jacquemin, A. (2013) Barriers to entry and strategic
competition. New York: Routledge.
• Global Agricultural information network (2009) New Zealand Report
[Online]. Available from:
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/RETAIL%
20FOOD%20SECTOR_Wellington_New%20Zealand_11-16-2009.pdf
[Accessed on 23rd April 2018]
• Global Agricultural information network (2017) Australia Report
[Online]. Available from:
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20
Foods_Canberra_Australia_12-18-2017.pdf
[Accessed on 23rd April 2018]

• Holderness, A. (2017) 100 Australian Tech Companies to Watch in
2018 [Online]. Available from:
https://www.themartec.com/insidelook/100-growing-tech-companies-2
018
[Accessed on 23rd April 2018]
• Karakaya, F. and Parayitam, S. (2018) Market entry barriers and firm
performance: higher-order quadratic interaction effects of capital
requirements and firm competence. International Journal of Markets
and Business Systems, 3(2), pp.121-140.
• Klinger, B. and Lederman, D. (2011) Export discoveries, diversification
and barriers to entry. Economic Systems, 35(1), pp.64-83.
• Statista (2018) Food & Beverages [Online]. Available from:
https://www.statista.com/outlook/253/107/food-beverages/australia#
[Accessed on 23rd April 2018]