Business Plan for Digital Solution

This business plan focuses on the development of a digital solution for Srapview, a company that provides gym products. It includes a detailed analysis of the macro environment, market and industry analysis, competitor analysis, marketing and pricing strategy, operational plan, and financial requirements.

Business plan
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Business detail.............................................................................................................................3
Macro environment......................................................................................................................3
Market and industry analysis:......................................................................................................5
Competitor analysis:....................................................................................................................5
Marketing and pricing strategy....................................................................................................6
Operational plan:.........................................................................................................................7
Financial requirement..................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The dynamic external atmosphere has impose threat as well as opportunities which is
beneficial to organisation and also focuses on achieving competitive advantage over rivalries at
market place. There is a requirement to fill market gap by assessing market scenario for targeting
large number of customers during particular phase of time period. This assignment is providing
support to increase innovative business idea by related to changing external environment in
addition with determination related to scale of rivalry. In this report, the organisation taken is
Srapview. It is will be known for providing superior quality of gym products which will be
equipped with hologram system to measure capacity of person who is capable of lifting weights
or not and services to its user for satisfying them. In this assignment, the innovative idea is taken
named as “Digital solution”. And also provide detail description regarding PESTEL and SWOT
analysis in order to assess macro and micro environment which affects company (Burns and
Dewhurst, 2016).
MAIN BODY
Business detail
The current idea of organisation is supported to make detailed assessment in which the
consumer focuses on converting their business into digital transformation function. Therefore,
the business organisation focuses on improving Digital solution for individual person. The
business idea which is supported on whole strategy is according to the objectives such as driving
value for operational customer along with higher efficiency during particular phase of time
period. In addition to this, the primary purpose of bring innovative ideas is to provide appropriate
service to its user by using Digital solution that help in review present digital capability of
organisation during the period of time. It is linked with the upcoming technology in order to
maintain proper action plan that is providing support to its user. It has been analysed that
artificial intelligence desired to possess value of around 60 billion dollar in upcoming 5 year like
2025. The national authority of UK has focuses on improving intention for promoting artificial
intelligence in order to satisfy its user and increase profit margin in future period of time.
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Macro environment
For the analysis of current external atmosphere of organisation, the Digital solution
imposes both favourable as well as unfavourable effect on organisation during particular phase
of time period. The analysis adopted by company for its new idea named as Digital solution is
going to be mention below:
Political factor herein, it is necessary to bring political modification to enhance profit of
business organisation. The government focuses on increasing their spending in covid-19
outbreak that is forecasted in order to financially influence dynamic nature of organisation.
Economic factor signifies the economic element of nation which are linked to cultural
tradition and demographical alteration that arises in existing moment and maybe it constant in
upcoming period of time (Grit, 2019).
Social factor in present era, the organisation is influence or impacted by corona virus that
has resulted into decreasing sales and profit margin of company during particular phase of time
period. The individual person focuses on ignoring this kind of situation in which gathering of
individual person is arises. Therefore, it is determined as the innovative business ideas related to
Digital solution in context of providing online shopping and facility to user for satisfying them.
Technological factors herein, there are various organisations focuses on adopting E-
Commerce in order to perform different activity in an appropriate manner. It will assists in
increasing customer base and providing appropriate services to its user in situation of pandemic
of covid-19. It directly affects the distribution system of Srapview because they have to update
their staff with new skilled to use hologram system in effective manner.
Environmental factor it signifies the exterior environment which is providing all required
assets to its venture. It is important aspect to consider the rapid changes which are arise within
business organisation. Therefore, the Digital solution is the best idea which is launched by
company that imposes a positive effect on growth of organisation. The organisations also fulfil
the responsibility towards protecting environment for conducting different activities in proper
way.
Legal factor there are various changes in laws and legislation due to covid-19 therefore it
is necessary for business organisation to choose the idea of Digital solution for satisfying need of
its user.
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Therefore, the PESTEL analysis is adopted by organisation for conducting smooth
running of different activities in proper way.
Market and industry analysis:
For market analysis, the chosen company adopt SWOT analysis in order to assess internal
and external environment which affect functions of organisation. Therefore, the SWOT analysis
of chosen company is given below:
STRENGTHS WEAKNESSES
 The Srapview will be known
organisation which will provide
unique quality products to its user that
increases sales of company.
 Due to change in law and legislations, it
is necessary for company to change
their policy.
OPPORTUNITIES THREATS
 They bring innovative idea of digital
solution that providing convenient
facilities to its user in situation of
Covid-19 pandemic that is
opportunities for company.
 There are various competitor of
Srapview such as Gym shark, and many
more that generates threat for company.
Competitor analysis:
Competition in respect of technology has been arises in large manner. By use of internet
and quick change in taste of user that influences organisation at larger level. It is determined as a
tool which is used for the purpose of considering component that design organisation at larger
level. For chosen organisation, it is significant to use this kind of tool in order to take appropriate
decisions. For this purpose, the porter's five Force model is used by Morrison’s that is going to
be mentioned below:
Threat of new entrants this component is connected with new organisation who focuses
on entering in similar sector There focus is on generating innovative business model which is
empowered through innovative structure related to improvement of digital organisation. It has
been analysed that there is a medium level of risk which is faced by business organisation
because there are various ventures as well as super market operate their company in this industry
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at international level. Therefore, there is a requirement of more fund and also follow government
legislation in order to take entry in this sector for conducting functions of business organisation
in an appropriate manner (Hopp and Greene, 2018).
Bargaining power supply it is determined as a other component in which bargaining
power of suppliers is determined as low because the chosen company focuses on using Digital
solution in order to provide unique facility to its user that help them in satisfying their needs in
situation of covid-19. Therefore it is not easy for other business organisation to compete them for
providing that kind of product.
Bargaining power of buyer it is analysed that the customer focus is on getting superior
quality commodities in order to satisfy their needs. This force imposes less impact on
organisation as the company improve goods and services according to wants of target audience.
In reference of respective organisation, it is needed to possess appropriate purchases and the
bargaining power of buyers is determined as a low. The organisation focuses on increasing
revenue and sales in future period of time.
Industry rivalry herein, the organisation focuses on providing unique quality product and
services to its customer in order to satisfy them. Therefore, it is not easy for other organisation
bring the idea of digital solution in order to achieving competitive advantage over rivalries at
market place.
Threat of substitute in this factor, it is significant for business organisation to possess
information regarding substitute product for achieving competitive edge at Marketplace. There
are different competitors of chosen company such as Gymshark, that provide same type of goods
and services to its user for satisfying them (Johnson and Garvin, 2017).
Marketing and pricing strategy
This is vital for all that before initiating any kind of business ideas; firm would have to
develop effective tactics (Lázaro Esteban, 2016). Moreover, as Srapview plan to perform their
business digitally with assistance of artificial intelligence technology. For instance, in order to
describe new marketing strategy for particular idea, STP analysis is used which stands for
segmentation, targeting and positioning. All these three aspects are discussed below in respect of
Morrison new business idea:
Segmentation:
People All individuals of UK
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Age For all age group
Region United Kingdom and Australia
Targeting: For their new business idea such as improving digital solution into their
functioning. So, for this, they would plan to target all class of people lower to upper.
Positioning: Srapview could adapt some effective strategy in order to position their brand
such as offering effective deals upon seasonal food items, huge level of advertisement of their
new digital transformations as well as facilitating greater services to clients.
Pricing strategy:
Pricing strategy is considered as the method that is utilised for developing effective price
for their offerings (Nicolò, 2018). So, as Srapview would plan to improve their business with
assistance of artificial intelligence technology so initially they would not cots much. It highlights
that they would opt lower pricing strategy for their goods or services. In addition to this, they
could also assure that price would never become a reason for consumers to shop any other sites
or online stores. Along with this, respective firm would also utilise the premium pricing strategy
for their premium products which would be available into digital platform.
Operational plan:
In retail sector, operations plays essential role. So, operational plan for business have been
developed as per the expectations and desires with the motive to render satisfaction during
COVID-19 period. In context of Srapview, as they would plan to facilitates online services for
individual person at the time of COVID-19 through performing their functions digitally. Thus, its
operational plan involves digitalized services. Furthermore, clients could easily order its item
from their homes only without going into particular stores. Along with this, they would render
fast and online service to their consumers as they would plan to render most of their items online.
In addition to this, as at the time of pandemic circumstance coming to the stores is not safe so
respective firm’s operational team decided to perform the delivery services with assistance of
drone after post Covid-19 period. Thus, it assists both consumers as well as company as they
could become competent to obtain essential items with full safety with aids of using artificial
intelligence technology. Additionally, for its online services, they would facilitate mobile
applications which would made the customer and firm task easier during COVID-19 times also.
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Financial requirement
Srapview will be known organisations that provide superior quality of products and
services to its user for satisfying them. So, their plan is to convert their business into digital
transformation function. For instance, their required funds so its financial requirements have
been discussed below:
Start up cost of business: This is mainly considered as those cost that incorporates initial
fuel for initiating any business as well as their functioning (Simón-Moya and Revuelto-Taboada,
2016) . As per the provided business idea of Morrison a pre- launch cash budget is developed for
understanding their financial expenditure and budget:
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Apart from this, they would also have to utilise various source of funding such as bank
loan, business overdraft, venture capital and many more. Among all these for Srapview new
business idea of improving their online business bank loan source of funds is effective. As this is
considered as the safest option of lending money and also it facilitates full payment on time.
Moreover, it is also undertaken as the long term source of finance. Furthermore, it is a fixed
amount of money which is provided to business through bank that have to be repaid over time
with interest generally in a form of monthly instalments.
CONCLUSION
On given report, it is assess that the dynamic external atmosphere has impose threat as well
as opportunities which is beneficial to organisation and also focuses on achieving competitive
advantage over rivalries at market place. There is a requirement to fill market gap by assessing
market scenario for targeting large number of customers during particular phase of time period.
This assignment is providing support to increase innovative business idea by related to changing
external environment in addition with determination related to scale of rivalry. And also provide
detail description regarding PESTEL and SWOT analysis in order to assess macro and micro
environment which affects company.
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REFERENCES
Books & Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Grit, R., 2019. Making a business plan. Routledge.
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies, 55(2),
pp.320-351.
Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics, 35(3), p.126.
Lázaro Esteban, J., 2016. Tu business plan¡ en un pim pam!. Editorial UOC.
Nicolò, D., 2018. Carenze informative e vulnerabilità delle imprese giovani: il ruolo del business
plan. Management Control.
Simón-Moya, V. and Revuelto-Taboada, L., 2016. Revising the predictive capability of business
plan quality for new firm survival using qualitative comparative analysis. Journal of Business
Research, 69(4), pp.1351-1356.
Whitmore, C.L., 2018. BUSINESS PLAN FOR CLUBHUB101. COM LLC (Doctoral dissertation,
Kent State University).
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