Entrepreneurship and Business Development: A Case Study of Vegdoor

This report is a case study of Vegdoor, a new online business that offers fresh fruits and vegetables to customers at their doorstep. It covers the assessment of industry, market, organizational and financial feasibility, key components of value chain and business model canvas, and identification and management of potential risks associated with the firm.

ENTREPRENEURSHIP AND
BUSINESS DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Concept of Vegdoor.....................................................................................................................3
Assessment of Industry, Market, Organizational and Financial feasibility.................................4
Key components of value chain and business model canvas pertaining to the proposed
business........................................................................................................................................8
Quantitative and qualitative models and concept used to identify and mitigate the potential risk
....................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship and start-up is an important aspect of making an entry in the market and
performing business operation. With the aspect of start-up, it is important that various aspect in
regard to the market or industry would be analysed in order to plan effective strategy that could
be used for benefits of firm. This report is based on new online business named as “ Vegdoor”
that offer fresh fruits and vegetable to customers at their doorstep for fulfilment of their
respective needs. Furthermore, it has covered key information related to new concept of business
such as target market, new idea, assessment of industry, market and financial feasibility. At last
it has explained about the key components of the value chain and business model canvas and
identification and management of potential risks associated with firm.
Concept of Vegdoor
Vegdoor is a digital and online business that enable the availing of its services at the door
steps of the customer through online mode. Vegdoor would enable the customer to make
purchase of fresh and organic fruits and vegetables at their door step on a single click.
Product:
The main product of the proposed business would include the fresh and organic fruits and
vegetables. Along with this the company would make online delivery which means that its
customer would make purchase of their fresh fruits and vegetables at a single click.
Target market:
The major target market of the company would be the market of London, UK. Apart from
this the business has also further plan to make exploration in various part of UK. Among the
target market, its targeted customers would include the young and old generation specially
working personnel who have no time to visit to Market in order to make purchase of fruits and
veggies. Along with targeted market the company also have to make high focus on working
women and men so that they can make buy on online platform.
Special attributes:
The major attributes of the Vegdoor would include its online and digital services. Along
with this it would serve its customer in minimum time and at minimum cost. This would be the
promise of the company that it will enable its services and products to its customer at lowest and
minimum price. Along with serving its business on digital platform it would also enable its

services and products through mobile application wherein its customer make order of products
through their mobile by downloading and logging in its application.
Value:
With regard to value it will be the promise of Vegdoors towards its customers that it
would serve best quality and fresh product. The main objective of the company is to serve its
services at lowest price but at high quality. It would be specialize in its quality of product and
prompt services.
Scale:
As Vegdoor is new in the market so its initial scale would be limited up-to the market of
London. However, its has growth plan that would assist the company to make exploration of its
business in other parts of the UK. As per its growth plan it would become the most demanded
company with regard to the availing of fresh fruits and vegetables in the market of UK.
Location:
Its initial location would be the London and digital platform. However, it is to be noted
that it will mainly serve its business through digital platform and online mode.
Involvement:
Its main stakeholders would include the owners, investors as well as owners. Being a new
business its major focussed would be centred towards the customers and investors who can make
avail funds and sales to the company.
Assessment of Industry, Market, Organizational and Financial feasibility
Industry feasibility:
In order to make entry in the market it is very important for the company that it can make
analysis of the concerned industry situation in which it is planning to make entry. This analysis
would enable the company to frame plans and policies accordingly so that it would able to
sustain and meet the competition of industry. This analysis would be performed through:
Porter's five force model:
As per this model the extent of prevailing competition in the industry would be analysed
(Bruijl, 2018). It includes:Bargaining power of customers:

As the customer is the main aspect of industry and for company so considering this is
very important (Pervan and et.al., 2018). With respect to Vegdoors the bargaining power of
customer would generally be low because as the products and services of the company is highly
efficient which would not make the customer to shift to other competitors. Also as the customer
want to buy at low prices and with the policy of availing of high quality at low price would
enable the Vegdoors to easily retain its customers.Bargaining power of suppliers:
In regard to Vegdoors the power of supplier would be low because of the existence of
large number of supplier who can avail raw material and other useful material at easy mode.
Thus, with the existence of low supplier power the company would make high sales and revenue.Threat of new entry:
This is related with the entry of new competitors and companies in the market (Berisha
Qehaja, Kutllovci and Shiroka Pula, 2017). In case of Vegdoors this force also exist at low
strength. This is because it becomes difficult for the company to make entry in the market of UK
because of existence of entry barriers. Thus, with the compliance of all the regulation, Vegdoors
can easily operate its business without worrying about this force.Threat of substitutes:
With respect to this force the intensity is high. This is because there are large number of
substitutes and existing products that would affect the sales of Vegdoors. With the presence of
large number of competitors and their products it is difficult and challenging with respect to
Vegdoors.Rivalry among existing competitors:
There are large number of competitors in the market of UK so this force also bears strong
impact. This means with the persistence of large number of competitor selling similar product
the company and its sales would be impacted.
Market feasibility:
In order to sustain in the market and perform the business operation it is very important
that the analysis of the market would be performed so that nee strategies as well as modification
in the existing strategies would be performed that would further lead to attainment of success by
company. It can be performed by considering these aspects:

Target market:
This is the important aspect for analysing the market. As per this aspect the major target
including the customer or demographic would be included. As the Vegdoors is related with
delivery of online fresh fruits and vegetables so its major target would include the market of
digital platform along with working personnel.Demographic analysis:
It is also an important aspect that a company need to consider before entering into new
market and industry. It includes the study and analysis of country, traits, density and various
others (Bagirova and Manukyan, 2020). It also includes the analysis of gender, age, population
trends and various others. With this analysis Vegdoors would be able to make planning so that
the need of the customers and the demographic would be accomplished with the delivery of best
product.Competitive assessment:
This is also an important aspect that is needed to be studied and considered while
launching a new business. This may include an analysis of the existing competitors, their
policies, products, pricing strategies and various others (Efimov, 2018). With the analysis of
competitors moves and the extent of market competition it would be easy for the new entrants
that they can make effective strategies that would meet the need of the market along with
meeting competition.Analysis of future market trends:
Market feasibility also includes making an analysis of future market trends. This would
assist the business that whether their operation would be succeed in the future times or not. As in
case of Vegdoors which is dealer of fruits and vegetables and in the present time of covid
pandemic and digitalization it would not be wrong to state that the business of the company
would be profitable and successful in the near future.
Organizational feasibility:
Making an analysis of feasibility of organization is highly important that whether it
would be able to survive in the market or not. This may include consideration towards:Human resource:

Without the presence of human resources, no work would be able to accomplish. With
regard to Vegdoors there would be an initial team of 50 members out of which a division would
be made with respect to their specialization.Equipment:
In order to run a business this aspect plays an important role. Vegdoors would be
equipped with adequate resource including computers, its products, packaging machines and
various other.Infrastructure:
The Vegdoors will initiate its business with the rented property because it will majorly
operate its operation on the digital platform.Location:
Its location would cover the digital platform along with London.
Financial feasibility:
In order to sustain in market an analysis of financial feasibility would play an important
role. It includes:
Profit and loss account:
PARTICULARS AMOUNT
SALES 50000
Less: Variable cost
Packing (8000)
Raw material (10000)
CONTRIBUTION 32000
FIXED COST
Internet charges (13000)
Salaries to staff (7000)
NET PROFIT 12000

Budget:
PARTICULARS AMOUNT
Internet charges 10000
Compensation to employees 15000
Sales and advertisement 5000
Electricity 10000
TOTAL 30000
From the above projected P&L and Budget it would be interpreted that the Vegdoors need
to be focused towards establishing control towards excess of expenses or minimization of
expenses. This also shows that the company need to look forward towards the raising of its sales
so that it can sustain in market along with meeting competition.
Key components of value chain and business model canvas pertaining to the proposed business
Porter value chain is model that explain about the set of activities that an company
perform in order to deliver specific value to the customers. It is use by companies to examine all
its activities and analysis the manner in which it is connected with the customers through
offering them qualitative products and services. Vegdoor is online food and vegetable business
proposed idea that will gain competitive advantages through delivering qualitative services to
customers (Frolova, Alwaely and Nikishina, 2021). Therefore, the porter value chain can be
discussed in detailed as follows:
PRIMARY ACTIVITIES: This are core activities or function of the business that are responsible
for accumulating resources and converting them in order to delivered better value to customers.
Operating, investing and financing are different primary activities that are undertaken by the
company. Such as:
 Inbound logistic: Vegdoor manager has effectively ensured and monitor the overall
resources and inventory, raw material that need to be present in the firm. It has focus on
maintaining and building strong relationship with the suppliers that will helps company in
getting the products I.,e fresh vegetable and fruits on time so that qualitative services can
be delivered to customer's for their satisfaction (Ogundana and et.al., 2021).

 Operation: There are several operations that will be performed by Vegdoor in order to
provide products and services to customers. Such as it converting raw material into
finished products through performing task such as preparing innovative packaging of the
organic vegetable in disposable bag or paper rather than making use of plastic.
 Outbound logistic: This is third activity related to distribution of products and services to
end customer's so that they can be happy and satisfied. Vegdoor through making use of
information technology and computer will ensure that it store only stock of fruit and
vegetable that are required to deliver to customer's (Kunicina and et.al., 2019). So that the
unnecessary wastage of products can be avoided to maximum extend.
 Marketing and sales: Company has decided to make use of digital marketing to generate
awareness among the customers about the firm and its range of products as well as
services. So that they can take right decision to purchase the same in order to fulfil their
respective requirements. Use of social media, email marketing and website to attract and
inform customers has helped company in enjoying huge profit margin.
 Services: Vegdoor has planned to delivered 24 hours’ services to customer's so that they
are free to access the services any time any place for fulfilment of their respective desired
(Julien, 2018). Company will ensure that its food and vegetable delivery to customer's in
limited time frame so that they are not being frustrated and irritated.
SECONDARY ACTIVITIES: On the other hand, these are secondary or supporting activities as
they are supporting the primary activities thereby contributing in growth and expansion of firm
in external environment.
 Infrastructure: Company will have well-designed infrastructure that is aligned with key
resources, equipment so that the food and vegetable can be easily stored and timely
provided to customer's. Soothing environment of office has helped in motivating
employees to enhance their overall performance thereby contribute in delivering services
to customer's beyond their expectancy level (Kim and et.al., 2020).
 Research and development: Appropriate research has been conducted to gathered
sufficient information pertaining to what are the needs and wants of the customer's in
order to plan right strategy that can be used to attract and retained customer's in the firm.
 Technology: It is another secondary supporting function that has helped in effectively
delivering services to range of customer's. Such as digital technology has contributed in

promoting the products, maintaining accurate information about the stock that is present
in the firm. Thus, overall helps in taking right decision for growth and expansion of
business (Mirzanti, Simatupang and Larso, 2018).
BUSINESS CANVAS MODEL
Key partners
The key partner
of the Vegdoor
will be its
suppliers,
distributors and
other small firm
that are ready to
work with it for
achievement of
end goals.
Key activities
Activity that will
be undertaken by
company is
selling variety of
organic and
healthy, fresh
food and
vegetable
products to
customers.
Maintaining data
of customer's
wants, their
feedback and
overall stock
present in the firm
(De Bruin and
Mataira, 2018).
Value
propositions
Vegdoor has
focus on
delivering high
quality food and
vegetable to
customer's at their
door steps for
making
customer's happy
and satisfied.
Customer
relationships
All efforts will be
lead to build
strong
relationship with
customer's
through making
use of digital
technology and
social media.
Along with it the
company will
make sure that it
provide better
and qualitative
products to
customers.
Customer
segments
The company has
planned to
segment its
market on basis of
demographic,
physiological,
social and level of
interest. Thus it
has helped
company in
delivering
services as per
their wants and
preferences.
Key resources
There are range of
resources that will
be required in
order to promote
growth and
expansion of firm
ranging from
Channels
It has been
planned that
products of
Vegdoor will be
sell to customer's
through online
channel or

human resources,
food and
vegetables,
machines and
equipments.
offering at their
doorsteps (Liñán,
Paul and Fayolle,
2020).
Cost structure
In implementation and start-up of
business both fixed and variable cost
will be involved. Such as around
5000 will be the fixed cost and
variable is approx 1500-2000.
Revenue streams
The main revenue stream of the company is from
customer's that are interested to have organic, healthy
and fresh fruit and vegetable at their home in minimum
time frame.
Quantitative and qualitative models and concept used to identify and mitigate the potential risk
RISK
DESCRIPTION
LIKELIHOOD IMPACT OF
THE RISK
MITIGATING RISK PRIRORITY
LEVEL
FINANCIAL
RISK
5 5 The strategies that
could be used to
mitigate financial risk
associated with business
is conducting
appropriate analysis of
fund that is invested in
different areas.
In order to identified
the outcome or return
gain from investing in
particular field by
High priority given
to the risk as it have
major impact on
growth and
development of firm.

company (Kunicina, and
et.al., 2019).
So, appropriate market
research helped in
avoiding huge financial
loss to the organisation.
LEGAL RISK 4 5 Vegdoor can avoid legal
risk through abiding to
all rules and regulation
that are made by the
government while
promoting smooth
operation of business.
Medium priority
need to be given to
legal risk.
REPUTATION
RISK
2 3 Organisation can
eliminate the reputation
risk through ensuring
that qualitative services
and products are offered
to customers.
So, appropriate market
survey and formulation
of strategy will help
company in staying
ahead in competition
(Liñán, Paul and
Fayolle, 2020).
Low priority as less
chance of reputation
risk to occur.
TECHNOLOGY
RISK
3 2 Company can avoid
technology skill by
quickly adapting to new
method and techniques
Low priority also
need to be given to
technology risk
because company is

to complete the task. laying emphasising
on accepting the new
technology.
OPERATIONAL
RISK
2 2 The operational risk can
be avoided through
monitoring and
evaluating key activities
that are undertaken by
company.
Medium priority
need to be given as
firm has ensured that
all operational are
effectively
completed.
STRATEGIC
RISK
3 4 Strategic risk can be
eliminated by effective
analysing and taking
decision which set of
strategy or action that
can be implemented in
the business.
For strategic risk,
medium priority is
given because firm
has already give
importance to
formulating effective
strategy for better
outcome of business.
EXTERNAL
ENVIRONMENT
CHANGES
4 5 In order to overcome
external environment
changes, company need
to continuously monitor
what is happening in the
external environment.
Thus, plan method or
strategies to overcome
the same for its growth
and development
(Ogundana and et.al.,
2021).
High priority need to
be given because
external
environment is
dynamic in nature
and it directly
impact on business
operation.

CONCLUSION
From the above report it can be concluded that entrepreneur has special quality to start
and run business through undertaking the associated risk in order to earn high profit margin.
Vegdoor has focus on finding more innovative and creative ideas that could be used by the
business to attract and retained customers in the firm. At last, it can be concluded that company
through adapting the risk management strategies can easily enhance its market share and gain
competitive advantages in external environment.
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