Entrepreneurship Development for Online Medicos: A Lean Business Model Approach

This report discusses entrepreneurship development for Online Medicos, a lean business model approach for delivering COVID-19 medicines at doorstep. It covers business objectives, value creation, value capture, and detailed development plan. The report also includes a critical evaluation of the possible future developments, changes in customer needs, and moves of competitors that need to be accounted for. The business idea is unique and profitable, with a focus on capturing 15% of the market share and enhancing customer satisfaction by 10% within a year.

Entrepreneurship
Development

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction to lean start-up.........................................................................................................3
Business Objectives.....................................................................................................................4
Value Creation: Customer Value Proposition Canvas.................................................................5
Value Capture: Lean Business Model Canvas.............................................................................7
Detailed Development Plan.......................................................................................................11
Critical evaluation of the plan and any possible future developments, changes in customer
needs, moves of competitor that needs to be accounted............................................................13
Summary....................................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
The concept of entrepreneurship is associated with the fundamental activity which helps
an organisation ion the process of developing marketing activities and operations of a business
effectively. The aspect of lean business is concerned with introducing a new enterprise whether it
is in the form of a tech start-up, an execution with a large organisation or a small enterprise. Lean
method is used to recognise a new organisation or introducing a new service or a product of
existing firm (Abdulmumini, Ayodele and Man, 2020). This report is based on a business idea of
online delivery of COVID-19 medicines at doorstep of people by an organisation named Online
Medicos. In context to the respective lean business idea, this report includes business objectives
and value creation as well a value capture diagrams. Moreover, this report also includes detailed
development plan of the business and along with it, there will be a critical evaluation of the
possible future developments. Additionally, this report covers reasons for the investment
entrepreneurial opportunity and profitability of the respective business idea.
MAIN BODY
Introduction to lean start-up
Lean start-up is considered as an approach that facilitates in developing new businesses
on the basis of the belief that entrepreneurs must research, experiment, test and iterate as they
introduce products. The key characteristic of a lean start-up is that it concentrates on the methods
such as popularity of the product and lifetime value of customer. This is considered as an
innovative philosophy of the management which provide assistance to start-up organisation for
moving quicker addition to deliver values for the purpose of achieving sustainable growth along
with generating long-term viability and profitability.
The business idea of Online Medicos is a concept which is concerned with delivering
covid medicines through online mode at doorstep of the market share (Aggarwal, 2018). After
the pandemic situation of COVID-19, there is an increase within the demand of medicines.
Along with it, people want their medicines at their doorstep instead of stepping outside.
Therefore, by understanding customers perceptions, this business idea is taken into
consideration. It is unique business idea because there are less players within the respective
industry who are offering these kinds of medicines at doorstep of people. Such type of business
idea will facilitate enterprise in chasing competitive benefits over rivalries that are active within

the marketplace. The organisation “Online Medicos” will based in London for delivering high
quality medicines on online order. This business will also focus on crucial steps such as
innovative and differentiated packaging and labelling of medicines which will create the
medicine and its services unique from competitors of organisation. Such kinds of medicines will
provide specialised treatment of different diseases like viral, dengue, covid infection and many
others which will facilitate in improving the immunity level within the human body.
Business Objectives
The objectives of the business referred to particular as well as measurable outcomes of
the organisation that it hope to maintain as their business grows (Al Mamari and et.al., 2022).
Business objectives are to be achieved by an organisation within a defined period of time and in
an effective as well as efficient manner. The business objectives of Online Medicos are given as
under:
 To increase the profit margin by 4% per year to make the funds available for
accomplishing organisational operations effective for the upcoming three years.
 To capture 15% of the market share towards the organisation for its sustainable
development and chasing competitive advantage.
 To enhance the level of satisfaction of the customer-base by 10% within a year for
maintaining customer loyalty towards the organisation.
For Online Medicos, estimated sales volume for the initial year of operation is 1000 units
ad it is predicted that within the further years, this will be increased by 15% per year (Amjad,
Rani and Sa'atar, 2020). For the first three years of the operations, the calculation of the profit
margins and sales objectives for Online Medicos are as follows:
Projected Income Statement for 3 years ended:
Particular Year 1 Year 2 Year 3
Units Sold ( 15 % increase in every year) 1000 1150 1322.5
Selling Price per unit 100 115 132.25
Less : Cost per unit 70 77 84.7
Profit per unit 30 38 47.55
Total Profits 30000 43700 62884.88

% Profits ( More than 4 % from previous Year) 30.00 33.04 35.95
Note:
 In the above statement the assumption has been made that at the beginning of Year 1 the
organisation will able to sold 1000 Units of products they are manufacturing.
 As per market trend, the cost of procurement of raw materials that has been used to
manufacture final product has been increased by 10% every year.
Interpretation:
From the above results the conclusion could be drawn that entity is earing margins in increasing
order from 30 % to 35.95% in all the three years that shows their capability to effectively utilise
their resources and assets in order to generate profits (Fallah Haghighi, Mahmoudi and Bijani,
2018). Further will the gradual increase in production capacity by 15% each year they are also
meeting the demand of their products that is generating from the market. This shows that they
are properly monitoring the performance of their products and services on timely interval and
accordingly raise their production level with the existing capacity.
Value Creation: Customer Value Proposition Canvas
Value creation is defined as the process of converting the resources into something of
perceived value. It is the key objective of an organisation and creating value for the market share
provide assistance in the process of selling the products and related services of the business.
Three primary elements of the value creation consist of determination of value a firm can give to
its customer-base, determining value the firm gets from its market-base and by successfully
managing this value exchange (Ferdosi and Molavi Taleghani, 2019). In context to Online
Medicos, entrepreneur of the business makes use of the value proposition canvas for creating
values. Value proposition canvas concentrates on the problems of the customers and producing
products as well as services which solve them. It is a tool that facilitates in making sure that a
product or a service is positioned around what the market share values and requires. The
different components of the Value Proposition Canvas are discussed as below in relation to the
Online Medicos:

Value Map:
Gain Creators: It defines how product or service creates customers gains and how it provide
extra values to the customers. Gain creators in relation to Online Medicos include attractive
business opportunity, innovative idea, accuracy and detailed information.
Product or service: The products or services evolve gains and relieves pain for the market-base.
They also provide value for the target market. In terms of Online Medicos, the medicines are the
products and their online delivery at the doorstep of customers is a service (Hazarika and
Goswami, 2018). Organisational products are of superior quality and the business is also
providing after sales services such as customer service and many more.
Pain Killers: This is a description of ways in which a product or service improves customer
profile. In relation to Online Medicos, pain reliever permits market-base to improve their
immunity level and reducing the infection of COVID after taking medicines.
Customer Profile:
Gains: This kind of benefit is expected as well as required by a person from the business idea
and also delights the market-base as well as increases likelihood for adopting value proposition
(Khan, Ali and Dhamija, 2022). Gains in relation to Online Medicos consist of capturing more
and more customers and enhancing their satisfaction. This is a unique business idea which gives
a large number of advantages to the people who are suffering from the infectious disease of
COVID-19.

Pains: This is a negative consequence and includes risks in addition to emotions, bad
experiences which are experienced by market share at time of using product or service. In
context to Online Medicos, the pain states that it is a new business idea that has to deal with
complexity which is concerned with lower interest of customers as well as huge promotion.
Jobs: It include functional, social and emotional task that customer-base makes effort to
perform, solves problem as well as wish to fulfil needs (Kumar and Borbora, 2018). In relation to
Online Medicos, customer job is to search for those market-base who are willing to buy covid
medicines.
Value Capture: Lean Business Model Canvas
The term value capture is defined as an ability of an organisation to capture such value
itself as its retained profits. In terms of Online Medicos, value capture gets done through making
use of the lean business model canvas. It is a planning tool that provide assistance in getting
centre of the business idea (Mafukata, 2020). According to the lean business model canvas, all
the detailed information are given in a single page which guides and directs for setting business
plan without any unessential information. The lean business model canvas for Online Medicos is
given as under:

Key Partners
 Pharm
a
ceutica
ls
 Medici
ne
manuf
acturer
s
 Kit
manuf
acturer
s
 Clinic
al
develo
pment
Key Activities
 Conferen
ces
 Research
and
developm
ent
 Marketin
g
Value
Propositions
 Conv
enien
ce
 Less
expos
ure to
infect
ious
disea
ses
 More
frequ
ent
and
cheap
Customer
Relationship
s
 Suppo
rt for
produ
cts
 Patien
t
netwo
rking
Customer
Segments
 Age
level
 Clini
cians
in
remo
te
regio
ns
 Tria
ge
nurs
es

Channels
 Retailers
 Online
vendors
 Direct sales
Key Resources
 Intellectual
resources
 Physical
presence
 Database
 Manpower
 Capital
Cost
Structure
 Company need an initial investment for
the publicity and development of the
image of company.
 The initial capital will be paid by the
investors and the rest will be borrowed.
Revenue
Streams
 User transaction fees
 Advertisement of the new medicines
considering the specific area.

 Key Partners: Online Medicos will develop and make key business partnership with
major medical agencies in marketplace of UK such as pharmaceuticals, medicine
manufacturers, etc. The respective organisation will have to perform the concept of
partnership with key businesses of the United Kingdom in order to deliver medicine
through online mode at affordable rates.
 Key Activities: This refers to combination of activities and operations which are to be
undertaken for introducing business idea (Moghimi and et.al., 2019). Key activities for
Online Medicos consist of marketing, conferences, research and development.
 Value Propositions: This refers to product collection which a business idea provides
with objective of fulfilling requirements of target market. In relation to Online Medicos,
value proposition includes providing medicines at high quality to customer-base at
affordable prices.
 Customer Relationship Management: CRM stands for customer relationship
management and in relation to Online Medicos, organisation will use this kind of
software that help it in using information technology services in order to offer effective
customer support. The concept of CRM should be evolved by the respective business by
making use of proper formula as well as techniques to deliver good practices of business.
 Customer Segments: Customer segments for Online Medicos include clinicians, age
levels, triage nurses who are engaged in taking care of those people who are suffering
from such infectious disease.
 Key Resources: Such resources are related to business development will be from
pharmaceutical products that are majorly used in the economy (Romanenko and et.al.,
2021). The organisational resources will be optimally utilised within the business and that
would help the company in sustaining long-term profitability of the firm that assists in
business development.
 Channels: Online Medicos will use channels for delivering its medicines and related
services through retailing, online vendors and direct selling which will be cost-effective
for organisation.
 Cost Structure: Within Online Medicos, cost structure includes initial investment for the
publicity and development of the image of company. The initial capital will be paid by
the investors and the rest will be borrowed.

 Revenue Streams: In relevance to Online Medicos, revenue streams include user
transaction fees and advertisement of the new medicines considering the specific area.
Detailed Development Plan
In the process of business functioning, it is significant to concentrate on designing a
marketing plan for developing benefits within the market (Rosário and et.al., 2021). Within
Online Medicos, marketing plan helps organisation in organising, executing addition for tracking
marketing strategy in a specific period of time. The marketing plan of Online Medicos is given
as below:
Analysing market: Online Medicos conduct marketing research for understanding customer
perceptions, taste and preferences. Organisation will also forecast market growth for business in
future time period through gathered information. This is ascertained that market size for business
idea is huge due to innovative deliverables which do not exist before.
Devising objectives: According to market analysis, business idea's objectives are devised by
marketing department of organisation. Within Online Medicos, marketing objectives are devised
as follows:
 To expand business into global markets within 2 years.
 To increase customer satisfaction by 10% in a year.
 To enlarge customers by 15% within 18 months.
STP Model: This is a three-step model that analyses business ideas and communicational
approaches that give advantages to specific customer segments. The three stages of this model
are discussed as below:
 Segmentation: It helps in dividing the market share into set of groups that are having
common requirements and wants (Trushkova and et.al., 2019). In context to Online
Medicos, whole market of country is segmented as per demographical, geographical,
behavioural, psychographical basis. This permits organisation in fulfilling organisational
aspirations in a cost-effective manner that provides a lot of advantages over rivalries.
 Targeting: This stage helps organisation in making strategic decisions for targeting most
attractive segments. In context to Online Medicos, target segment of organisation is on
the basis of age group of 19 to 65 years.
 Positioning: This step defines methods for putting business idea to target the most
valuable market segment and in relation to Online Medicos, the organisation should use

different promotional tools like online and offline advertising including social media
platforms, website of business, etc.
Marketing Mix:
It is a tool that can be used by Online Medicos for designing effective marketing strategy
and control its marketing activities. There are different elements of marketing mix that are
discussed as under in context to Online Medicos:
 Product: For Online Medicos, medicines are products that are produced for curing and
providing treatment to people to recover from infectious disease of COVID-19.
 Price: Online Medicos use marginal cost pricing strategy at time of delivering its
products and services in which products are priced to equal the additional cost of
producing additional unit of output (Zemtsov, 2020).
 Place: Within Online Medicos, the places include distribution channels of the product
and these include physical stores, online stores and direct selling.
 Promotion: Respective organisation use online and offline advertising, digital marketing,
social media marketing, etc.
 People: These referred to staff members who are engaged in delivering products of
Online Medicos such delivery persons, manpower in production department, etc.
 Process: Entrepreneur within Online Medicos use Management Information System
(MIS) in order to maintain appropriate flow of information and storing it in a more
effective manner.
 Physical Evidence: In context to Online Medicos, physical evidence include interface of
organisation's website, appearance of physical stores and many more.
Monitoring and evaluation: This is last stage of marketing plan that analyse the
variations and execute suitable and corrective actions for comparing set and actual outcomes.
Online Medicos uses KPIs and Benchmarking for monitoring and controlling strategies for
achieving business growth and success.
Critical evaluation of the plan and any possible future developments, changes in customer needs,
moves of competitor that needs to be accounted
Future Development
The current business plan includes the scope of future growth that is given as follows:

In relation to Online Medicos, it is ascertained that market development strategy is
advantageous to business in search of future growth. It is because there is little or no market for
such product, therefore organisation can experience its growth by introducing covid medicines in
new market where it can capture large number of customers. Market development means
entering a market where an organisation did not have a presence before for the sale of a its
products.
Competitors Move
The company will bring innovation in market through delivering its covid medicines
online in terms of competitors' move and can get first mover advantage in such innovation. This
is because there is no other such business exist in the market yet, so it will help organisation in
achieving its greater growth and success.
Changes in customer's needs
Because of infectious disease of COVID-19, people want medicines to get recover from
such disease as soon as possible. They want to enhance their immunity level and prefer to get
such medicines at their doorstep as they feared of spreading of such kind of infectious disease. In
such way, there is a change in market-base needs and wants as they desire to get medicines at
their own home without stepping outside.
Summary
The existing business idea is online delivery of medicines which is very profitable as
there is a change in customers needs and there are less players within industry that are offering
such kind of product and related services. Without stepping outside because of great spread of
infectious disease of COVID-19, customers want medicines at their own remote areas and at
affordable prices so that they can enhance the level of their immunity and improve their health.
Such type of business is profitable as it has a monopoly of this item within marketplace. The
service is also at competition level as there are less players within the respective industry which
is providing this kind of product to market-base. This will help organisation in increasing the
level of profitability, efficiency and productivity within business. It will also provide assistance
to the respective organisation in enhancing its brand value in the marketplace which will help in
generating great value to the organisation. On other hand, medicine also carries an investable
opportunity within the marketplace because with dynamic market trends, customers become
more health consciousness and have more concerns regarding health. This kind of product and

service will create more demand within market and such increase in demand gives an
opportunity to the investors to invest in the organisation.

REFERENCES
Books and Journals
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Aggarwal, A. K., 2018. The empirical perspectives on rural entrepreneurship development in
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Al Mamari and et.al., 2022. Effect of self‐perceived cognitive factors on entrepreneurship
development activities: An empirical study from Oman global entrepreneurship monitor
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Amjad, T., Rani, S. H. B. A. and Sa'atar, S. B., 2020. Entrepreneurship development and
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Management Education, 18(2), p.100379.
Fallah Haghighi, N., Mahmoudi, M. and Bijani, M., 2018. Barriers to entrepreneurship
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Ferdosi, M. and Molavi Taleghani, Y., 2019. Effective factors of the entrepreneurship
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Khan, W., Ali, T. and Dhamija, A., 2022. Perceived obstacles and performance of food and
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Kumar, G. and Borbora, S., 2018. Institutional environment differences and their application for
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Mafukata, M. A., 2020. Maximising the use of environmental and cultural resources for
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APPENDIX
Primary and Secondary Market Research
Particulars Description
Value Proposition In relation to Online Medicos, value proposition includes
providing medicines at high quality to customer-base at
affordable prices.
Advertising Respective organisation use online and offline advertising,
digital marketing, social media marketing, etc.
Customer Segments In context to Online Medicos, target segment of organisation is
on the basis of age group of 19 to 65 years.
Sales Within Online Medicos, the places include distribution channels
of the product and these include physical stores, online stores
and direct selling.
Market Size Market size for Online Medicos is large as the innovation in its
packaging and labelling is unique.
Market Growth Growth for Online Medicos is based on preferences of people
for such medicines to get recover from infectious disease and
increase immunity.
Customer Preferences For Online Medicos, customers give preferences as it have
ability to meet their needs and provide excellence of maximum
satisfaction.
Segments For Online Medicos, the market segment is of age group.
Competitors Competitors for Online Medicos include online vendors of
medicines.
Key Partners Online Medicos will develop and make key business partnership
with major medical agencies in marketplace of UK such as
pharmaceuticals, medicine manufacturers, etc.

Channels Physical stores and online sites are channels to deliver online
medicines.