(PDF) The Future of Drone Use: Opportunities and Threats

THE FUTURE OF DRONES IN
BUSINESS AND COMMERCE

Table of Contents
SECTION 1: INTRODUCTION.....................................................................................................1
SECTION 2: OPPORTUNITY FORMATION...............................................................................1
SECTION 3: OPPORTUNITY DEVELOPMENT.........................................................................3
4 P's of Marketing.......................................................................................................................4
Risk mitigation............................................................................................................................5
Segmentation, targeting and positioning.....................................................................................7
4P's of innovation........................................................................................................................8
Financials....................................................................................................................................9
SECTION 4: CONCLUSION........................................................................................................10
REFERENCES..............................................................................................................................11

SECTION 1: INTRODUCTION
Entrepreneurship development is considered as process for purpose of improving its
knowledge and skills of multiple entrepreneurs via training and classroom programs as well. The
main aspect of this development is to raise number of entrepreneurs and to update future with
high innovative technology with aim of fulfilling consumer needs. In the present scenario,
technology has continued growth and played large role in lives of consumer and in this context,
industries are also transforming and adapting. There are various B2B business executives which
are disrupting market place because they have already initiated this plan. The present report
would be describing about future of drones in business in commerce as our company as leader as
Reliable Tech Ltd will challenge status quo for this perspective (PytlikZillig and et.al., 2018).
Its main objective is to give necessary theoretical and practice framework for purpose of
development and to create sustaining new venture. In this report, there will be drone shipping
system which will be anticipating package delivery in short duration which is maximum 1 hour.
This report is categorised in sections such as opportunity formation, opportunity development
along with conclusion as well where it will show detailed business plan about product as drone,
shipping services along with organizational process and explanation on basis of problem which
is transformed as opportunity and then in idea. In the similar aspect, developing opportunity
about drone and its services of shipping in short duration with its features of development of
pathway perspectives (GYNNILD and USKALI, 2018).
SECTION 2: OPPORTUNITY FORMATION
Business idea- Entrepreneurial venture is operated in order to provide customers with
desired amount of goods for fulfilling their needs in a better manner. Business should be feasible
from various perspectives so that customers may become satisfied with ease. It can be analysed
that drones are in great demand as it has various uses by which firm may be able to attain
maximum efficiency in the best manner possible (Blomberg and et.al., 2018). This implies that
commercial uses of drones are increasing and company can effectively use the same for attaining
benefits quite effectually. It can be assessed that drones can be used for photography for
capturing still images and videos, security surveillance, search and rescue, agricultural surveys,
underwater inspections and many other similar uses.
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Reliable Tech Ltd is start-up which will be engaged in B2C segment in retail sector for
providing daily use goods and commodities to people of UK. The customers will be offered with
variety of goods in timely manner. For energy efficiency and reducing delivery time,
organization will use drone for delivery of packages ordered by customers (Noor, Mastor and
Abdullah, 2018). The package delivery with the help of drone will be beneficial for both
business and customers. This is evident from the fact that delivery will be delivered faster which
will prove to be advantageous to business.
On the other side, cost of transportation with bigger trucks will be reduced up to a high
extent, providing benefits to company in effective manner. It can be analysed that business may
be able to attain profits with the help of uniqueness of the idea as commercial use of drones will
take place. Thus, delivery will be made faster within 1 hour or so and thus, transportation costs
will be reduced. Collectively, Reliable Tech Ltd would attain customer satisfaction quite
effectually.
Market Promotion-
The promotion is a part of new start-up as without incorporating market promotion will
lead to attainment of marketing objectives in a better manner. Reliable Tech Ltd will require
initiating healthy promotions so that it may be able to accomplish good growth over the market
in effective manner (Castelli and et.al., 2018). It can be analysed that company would initiate
promotions on social media channels such as Facebook, Twitter, Instagram etc so that firm may
be able to promote its services and as a result, goods will be made available to them within the
shortest time possible. Use of social media is useful for firm as it is cost-effective and has wide
reach to customers within short time span. This means that company will use social media
marketing as the primary tool for promotional purpose so as to enhance its position in the UK
market and provide timely delivery of goods.
Uniqueness of Product-
The uniqueness of product can be explained with reference to idea being formed which
provides clarity that business will provide packages delivery of small to medium weight goods to
customers by using drones (Royo-Vela and Black, 2018). This is the uniqueness of product is
that firm will provide faster delivery of goods or packages which will be time-saving mechanism
for enhancing customer satisfaction which is not possible with physical delivery of goods (The
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future of drones in business and commerce. 2018). This is because of products as per traditional
method takes nearly 4 to 5 days and that too depending upon distance of firm's warehouse to
final delivery destination of customers. This lead to incur expenses of fuel, delivery boy salaries
and more importantly, package is delivered after few days only.
The above problems discussed shows that unique idea of the company is providing
unique services in effective manner which will be beneficial for firm in attaining goals and will
be able to attain efficiency and thus, profits would be garnered in effective manner. This will be
beneficial for the company as it will be able to provide quality goods to customers also within
shorter time duration.
Formation of Idea and process of entrepreneurial idea
The idea can be analysed that there were problems being faced by the business which
were providing deliveries of goods through traditional method. These were goods lost during
transit, damage during transit and compromising the quality of goods etc. In order to remove the
same, firm will offer faster delivery of goods in the best manner possible (Singireddy and Daim,
2018). This led to formation of technology which could deliver ordered package with much
safety. From here, idea of drone has been adopted by firm in order to deliver commodities having
small to medium weight items to customers with much safety quite effectually. It can be
analysed that organisations would be able to establish its position in the UK market.
The entrepreneurial idea is helpful for organisation as it will be used commercially and
profits would be attained along with customer satisfaction will be accomplished. It can be
assessed that drones are energy efficient and Eco-friendly which would prove to be beneficial for
the environment as well (Gordon and et.al., 2018). This is evident from the fact that air pollution
caused by trucks will get minimised up to a certain extent which will be beneficial for it as
societal norms will be adhered to. Thus, it can be said that Reliable Tech Ltd will be able to
establish its position in the market and as a result, desired profits would be accomplished in a
better manner.
SECTION 3: OPPORTUNITY DEVELOPMENT
TSECTION 3: OPPORTUNITY AND DEVELOPMENT
Development of new entrepreneurial venture plan it is important for the business to ficus
on implying use of marketing strategy as it helps the business in deriving consumer response to
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wards their plan of business. Marketing strategies offers best platform for developing product as
it focuses on creating awareness among potential customers. Delivery by Drone is unique
approach for retail industry and will help Reliable Tech Limited in maximizing its reach and
attaining competitive advantage in retail industry of UK. The industry is focuses on managing
continuous changes in prices with regard to customer requirement (Mourelo Ferrandez and et.al.,
2016). However, the approach of delivery by Drone will revolutionise tends of industry will
boost delivery services fr very other industry. The services ill be only viable for small packages
with minimal weight like daily household retail goods.
4 P's of Marketing
4 P'S of markting mix helps in developing understanding and outlining analysis of new
idea which is discussed below:
 Product\ Service: Drone home delivery services by Reliable Tech Limited which is
retail organisation and cm up with unique approach of managing some services which is
basic necessity of people. The service is beneficial and competitive idea because there is
no retail organisation which offer quick delivery of basic households. It is specially
lunched for the people who go out just to buy basic grocery regardless of their physical
and mental health. It is also supportive approach for the families who are packed with
schedule and have minimal time of shopping basic household goods. The home services
by Drone are energy efficient and environment friendly which will helps in contributing
to economic condition of UK.
 Place: The store of firm will be allocated at three prime location of UK and home
services will be across UK within 1 or 2 hours maximum. The customers will be able to
order to their product on official website of Reliable the limited. The form will offer
separate list of items which are delivered via Drone. This will reduce the risk of
confusion on delivery management. However, the buyers will be able to access online
site and offline store services 24* 7.
 Price: The price of product will be according to retail industry and the firm will charge
extra for its dong delivery which will be on the basis of distance. The minimal charges of
delivery will 1.5 pound excluding price of retail products.
 Promotion: Promotion play a crucial role on development of product and opportunity.
The focus of Reliable Tech Limited will on creating maximum awareness among people
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of UK in order to boost services with the launch. The instant support of buyers will assist
the business in determining potential of business project which is necessary for
evaluating profits (Hong, Kuby and Murray, 2017). The venture will make use of social
media marketing, newspaper, television, and magazine advertising. These are potential
marketing tool where promotion will be done The first 100 booking of home delivery will
be offered 50 % discount on purchase as well as on drone delivery services.
Risk mitigation
Mitigating risk in Drone delivery is foremost priority of Reliable tech Limited for
developing opportunity for its services. In accordance with services and approach some risk and
its mitigation approach are discussed below:
 Permission from civil aviation authorities: It is the foremost concern for the Reliable
Tech limited form where the firm will be able to effective and support of Drone program.
The authorities will analyse potential of plan on the basis of permission will be granted.
Permission of aviation authorities of UK will help in mitigating major risk which is from
flight automation.
 Flight automation: In accordance with this the firm will be able to outline visual line of
sight and structure of weather are potential risk for drone program. In accordance with
this, Reliable Tech limited will imply use of Drone deploy which will assist in managing
flight parameters on the basis of altitude sped and weather conditions (Xiang and et.al.,
2016). It will reduce the risk of obstacles as it promotes best mapping practices which
are supported with high quality maps and models.
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 Checking of Airspace: Checking Airspace before flying is another concern for which it
is important for the delivery team of to assure compliance with FAA regulation which
enables notice for temporary flight restriction checking airspace before very fly. In
accordance with this, reliable tech will make use of air map and flyte application which
will reduce chances of flying in restricted airspace
 Educating employees about potential risks: It is another risk which will be mitigated
by organisation training before planning. In this every risk and pros and cons of drone
delivery will be discussed. This will help the employee i managing safety and success in
drone program of reliable tech limited.
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Illustration 1: Pre and Post flight checklist
(Source: 7 Ways to Manage Risk in Your Drone Program,
2017 )

Segmentation, targeting and positioning
It is the most important marketing strategy for development of new entrepreneurial
venture and its ideas. It helps the company in pre determining its potential buyers on the basis of
which further marketing and product development is made. The discussion of STP over Drone
delivery system is as follows:
 Segmenting: Segmenting is done on the basis of four factors that is demographics,
behaviours, geographic and psycho graphic. However, for developing opportunity for
drone delivery services reliable Tech will make use of behavioural and demographic
segmentation (Hong, Kuby and Murray, 2018). In this potential buyers will be
segmented on the basis their buying of retail products and reliability on home services.
Majorly the people will be above between age 20 to 45 and elderly people who are less
likely to visit market.
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Illustration 2: Planning for checkingAirspace
(Source: 7 Ways to Manage Risk in Your Drone Program, 2017)

 Targeting: The segmented customer will be targeted on the basis of their needs and
desires like purchasing habits, products requirement and market activities. This will help
Reliable Tech in evaluating needs of Drone delivery for particular group of customers.
The people who all are activities in market for basic household products and the old
people who are old or handicapped and visit market once in a whole just get basic regular
products.
 Positioning: The segmented customer will b arranged according to their activities like
online buying and selling. Need of retail products which will be offered by Reliable tech
via Drone delivery and according to their desires to approach something unique.
4P's of innovation
 Process: The process of services will be user friendly and will be simple because when
shopping online it is important for the company to assures easy accessible services with
regard to all types of customers. In accordance with enterprise idea of Reliable Tech
retailer the purchaser can directly put their order on official website where drone delivery
products be on different list. This will make sorting and shopping simpler for shoppers.
The ordered product will be delivered within one hour and shoppers will be able to track
their delivery.
 Position: The positioning will change according to launch and response of Customers.
Therefore, Reliable Tech will be training its employee to manage success and safe of
drone program in order to meet stakeholders' requirement which is the foremost cons for
managing success of entrepreneurial idea and innovation (Shucker and Trew, 2016).
Further, for managing improvement in services and existence of innovation the firm will
focus on managing regulation innovation of promotional idea to keep stakeholder linked
with organisation.
 Paradigm:The promotion of delivery system will be done via on online platforms
because it is the best way of approaching maximum number of customers and creating
awareness sand gaining customers before launch. Further, the firm will offer promotional
discounts and schemes on delivery with the motive of increasing demand of its retail
product and drone services. Promotional techniques and marketing activities will be
supportive tool, for the idea of Relabel Tech Limited (Dayarian, Savelsbergh and Clarke,
2018).
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 Product: Drone delivery system will support delivery of retail products which are of
minimal weight but are daily necessity of people like, soap, shampoos, snacks, etc. The
firm will evaluate customer response for its products and services on the basis of which
company will be plan its expansion of outlets which will be drone delivery simpler and
more timely (Goodchild and Toy, 2018). The approach of firm is opportunity of growth
in market of UK because it supports environmental concerns and fuel emission which is
major cause of increasing pollution on modern era. Further, drone delivery is energy
efficient and support time constraint of market.
Thus, the marketing strategy and risk mitigation approaches will assist Reliable Tech limited to
manage safety and use of done delivery. The marketing strategies and helped in developing
opportunity for the idea by outlining brief view of product which will be shared with
stakeholders. Further, TP will assist in determining potential customers who will support Drone
delivery program of retailer. Hence, from the development pan of products it is determined that
marketing strategies play a crucial role in analysing growth opportunity and managing customer
response in promoting success of idea (Gerstein and et.al., 2018).
Financials
Projected Cash flow Statement of Reliable Tech Ltd
Particulars 2019 2020 2021 2022
Cash Inflows
(Receipts)
Sales revenue 80000 90000 100000 110000
Total Cash
Inflows 80000 90000 100000 110000
Cash Outflows
(Payments)
Marketing
expenses 1000 900 1000 1100
Drone 15000 14000 15500 15700
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Maintenance
expenses
Legal charges 2000 2100 2200 2250
Equipment 12000 11850 12000 12100
Salaries and
wages 6000 5500 6100 6150
Other costs 4000 4100 4200 4300
Total Cash
Outflows 40000 38450 41000 41600
Net Cash Flow 40000 51550 59000 68400
Opening Balance 0 40000 91550 150550
Ending Balance 40000 91550 150550 218950
SECTION 4: CONCLUSION
From the above study it had been concluded that future of drones are commercially
applicable through business as it is longer or far off as it has already initiated. It has shown that
drones are quickly becoming as highly invested tool for reputed giants and it will give huge
benefits for commercial use of drone. In the same series, it had shown that technological
innovation in rapid aspect will give customers as cut edge products at price which can easily
affordable. Further, these drones were limited to application of military with application of high
cost and technical sophistication as well. It has shown that drone as a service is unique concept
which is pioneered through measure of Reliable Tech as it helps in reducing risk and cost linked
with drones for business to entrepreneurs and enterprises of each strips.
It has been articulated that usage of drone have attained huge growth in this coming
generation through individuals, local governments small business and entrepreneurs as well as it
is clear that presence of sought of investors are in this specific journey. In this report, there is
exploration for continued as leader in this industry of retail drone. There are various risk as it had
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intended belief of strong growth as it has faced numerous financial implications as well due to
robust, multiple consumers, regulators and states with sanction of use of UAV as detrimental. On
the contrary, with absence of human monitoring it is not capable for ensuring its packaging and
in numerous cities are bounded for encounter due to issues.
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REFERENCES
Books and Journals
Blomberg, J. L. and et.al., 2018. Drone carrier. U.S. Patent Application 10/013,886.
Castelli, V., and et.al., International Business Machines Corp, 2018. Guide drones for airplanes
on the ground. U.S. Patent Application 15/220,166.
Dayarian, I., Savelsbergh, M. and Clarke, J. P., 2018. Same-Day Delivery with Drone Resupply.
Technical Report. 2018. Available at: http://www. optimization-online.
org/DB_FILE/2017/09/6206. pdf.
Gerstein, D. M. and et.al., 2018. Looking to the Future of the Department of Immigration and
Border Protection (DIBP).
Goodchild, A. and Toy, J., 2018. Delivery by drone: An evaluation of unmanned aerial vehicle
technology in reducing CO2 emissions in the delivery service industry. Transportation
Research Part D: Transport and Environment. 61. pp.58-67.
Gordon, M. S., and et.al., International Business Machines Corp, 2018. Drone-based mosquito
amelioration based on risk analysis and pattern classifiers. U.S. Patent 9,856,020.
GYNNILD, A. and USKALI, T., 2018. Three scenarios of responsible drone journalism.
In Responsible Drone Journalism (pp. 93-102). Routledge.
Hong, I., Kuby, M. and Murray, A., 2017. A deviation flow refueling location model for
continuous space: A commercial drone delivery system for urban areas. In Advances in
Geocomputation (pp. 125-132). Springer, Cham.
Hong, I., Kuby, M. and Murray, A.T., 2018. A range-restricted recharging station coverage
model for drone delivery service planning. Transportation Research Part C: Emerging
Technologies. 90. pp.198-212.
Mourelo Ferrandez, S. and et.al., 2016. Optimization of a truck-drone in tandem delivery
network using k-means and genetic algorithm. Journal of Industrial Engineering and
Management. 9(2). pp.374-388.
Noor, N. M., Mastor, I. Z. and Abdullah, A., 2018. UAV/Drone Zoning in Urban Planning:
Review on Legals and Privacy. In Proceedings of the Second International Conference on
the Future of ASEAN (ICoFA) 2017–Volume 2 (pp. 855-862). Springer, Singapore.
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