ENTREPRENEURSHIP Project: Developing and Evaluating a Business Idea

This project proposes a business idea for an online grocery shopping application in Australia, aiming to address the varying prices and quality issues in the current market. The project begins by identifying problems in the existing environment and justifying the need for a solution, focusing on the pain points of young professionals, students, and families. It analyzes the market, including the dominance of Woolworths and Coles, and presents an entrepreneurial idea for an application that aggregates products from various supermarkets, providing customers with price comparisons and a single platform for their shopping needs. The project discusses the viability of the idea, drawing parallels with Trivago, and outlines value propositions such as price comparison and offers. Critical assumptions, target customers, and the required tools and resources, including application developers, cloud computing, and promotional associations, are also detailed. The project highlights the competitive advantage, personal motivation behind the idea, and contextual factors such as government regulations and industry growth. The project concludes with a comprehensive overview of the business plan's development, including market analysis, competitive advantages, and customer needs, and is available on Desklib for students.

Running head: ENTREPRENEURSHIP
ENTREPRENEURSHIP
Name of the Student
Name of the University
Author Note

1ENTREPRENEURSHIP
Executive Summary
Entrepreneurship can be considered to be a branch of management whereby an individual
identifies a particular problem which exists in the environment and in relation to this they are
able to come up with a solution for the problem. Therefore, the focus of the report lies on to
develop a business idea and test the overall viability of the business plan by assessing the
external environment of the businesses and related internal capabilities.

2ENTREPRENEURSHIP
Table of Contents
Introduction......................................................................................................................................3
Problems in the current environment...............................................................................................3
Justification for the same.............................................................................................................4
Pain points and Target market.........................................................................................................4
Market and potential customers.......................................................................................................4
Entrepreneurial idea.........................................................................................................................5
Viability of the idea......................................................................................................................5
Value propositions...........................................................................................................................6
Justification..................................................................................................................................6
Critical assumptions about pain points............................................................................................6
Justification..................................................................................................................................7
Target customers..............................................................................................................................7
Justification..................................................................................................................................7
Tools and resources required...........................................................................................................8
Contextual Factors...........................................................................................................................8
Competitive advantage....................................................................................................................9
Personal motivation and discovery of idea......................................................................................9
Opportunity cost............................................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Videos reviewed............................................................................................................................12
Business Idea Critical Evaluation..................................................................................................13

3ENTREPRENEURSHIP
Introduction
The business environment can be understood to be fairly dynamic in nature and it is with
respect to this, that it becomes considerably crucial for any business as present in this dynamic
environment, that it is successfully able to engage in a long term relationship with the different
customers and find a spot which would assist them in gaining long term success (Barringer
2015). Hence, the report will be based on a new business idea based in Australia which will
assist in ensuring that the firm is being able to perform considerably well. The business idea and
related overall development will be based on the problem which lies in the current business
environment and then based on this, the solutions for the overall success for the business will be
provided.
The report follows a systematic format on the basis of which the overall problems and
gaps which lie in the business environment will be discussed along with the pain points of the
Target market. The entrepreneurial idea shall be discussed which shall assist in understanding the
key value propositions of the idea and based on this, the personal motivation why the idea has
been taken up shall also be discussed critically.

4ENTREPRENEURSHIP
Problems in the current environment
Although there are various grocery shopping applications available in Australia, the
prices as offered by these applications can be stated to be varying to a huge extent. Moreover,
very often there lies variability in the quality of the goods provided (Kirzner 2015). Therefore,
the customers often find it considerably difficult to ensure that they are being able to shop at one
place for all their shopping needs as per the viable prices. Therefore, they require a medium
whereby, all their shopping needs can be met with at the same time and on the same platform.
Justification for the same
The reason why the problem exists is because of the presence of a large competition in
the given field of business. In relation to this, it can be identified that it is integral for the firm to
engage with an existing problem and then form techniques to combat against this problem.
Therefore, in relation to this, it is integral for the business to focus on this issue and come up
with this plan to solve the problem.
Pain points and Target market
The Target Market for the current scenario can be understood to be as followings:
 Young professionals and students: The Young professionals who are present in the
country require meeting their overall shopping needs and it is with respect to this, that it
becomes very critical for the business to ensure that they are able to take initiatives which
will meet with their needs.
 Families: The families also undergo grocery shopping in order to meet with their overall
needs (Kuratko 2016).

5ENTREPRENEURSHIP
 Hotels and Restaurants: The hotels as well as the restaurants often undergo the grocery
shopping so that they are successfully able to meet with the needs of the guests.
Market and potential customers
According to the Supermarket and Fresh Food Currency report which was prepared by
Roy Morgan, it can be considered to be extremely crucial that the market share of Woolworths
has reached 34% last year which reflects that it is growing at the rate of 1.4% year on year. In
contrast to this, the market share of Coles has decreased by 1.6% which widens the divide
between the two markets. Woolworths has been able to attain success by strong performances
across the different categories like fresh meat, fresh deli, fresh bread, fresh fruit as well as
vegetables (Noe et al. 2017). These two brands hold a strong dominance in the market and in
relation to this, they hold over 50% of the market share. The German Supermarket reported a
considerable growth in the domain. The grocery market in the country is currently being valued
over Australian Dollars 100 billion.
Entrepreneurial idea
The entrepreneurial idea which aims to resolve the current problem for the different
customers can be considered to be the development of an application such that it will solve the
overall problem of varying choices of the different customers. In this way, the application will
enlist all the products offered by different supermarkets and will accordingly assist the different
customers to shop for their needs online. Hence, the application will bring together the different
businesses online on a single platform and will bring about adequate scope for the same which
will allow the different customers to shop online at their convenience.

6ENTREPRENEURSHIP
Viability of the idea
The idea is based on the idea applied by Trivago, which is the travel website. This can be
understood to be comprehensive in nature as Trivago lists down the options of all the airlines
which can be used to commute from one place to another (Ries 2011). In line with this, the
different guests of the website can view the best price and their best suited price of the airline
tickets which will enable them to make the right choice of the tickets and enable them to make
the right kind of decision as well.
Value propositions
The value propositions of the application can be understood to be as follows:
 The application will provide the customers with all the relevant details about the different
grocery items which are readily available. In addition to this, it will also provide the
different customers with a choice to undertake the right decision for their grocery items
which can be purchased at the right time and at the right price.
 Moreover, the different customers will be provided with the best offers which will enable
the customers to save on the different offerings which the different grocers have to make.
Justification
The reason why these value propositions have been outlined for the company can be
understood to be the fact that, there are no such applications as available which help the different
customers in making the right decisions regarding the price and assist them in shopping from the
best source possible.

7ENTREPRENEURSHIP
Critical assumptions about pain points
The different critical assumptions which have been made about the pain points can be
understood to be as follows:
1. The customers compare prices online
2. The customer prefers making the best choice
3. The different customers who are present want to compare and buy and are not loyal
towards a particular brand.
4. The different supermarkets will be willing to enlist their products online.
5. The customers will be able to make use of the application.
Justification
According to Ibisworld.com.au (2019), there are 24.6 million online users present in
Australia which would enable the firm to make the right kind of decision which is present and in
order to ensure that, the application is popular, all these customers will be targeted accordingly.
Target customers
The target customers of the business can be understood to be as follows:
Demographic Psychographi
c Economic Sociological Attitudinal Behavioral
The
customers
may be
either
working or
based in
home.
The age
group has
been
The customers
must be tech
savvy and
consider the
online
shopping
through the
application a
suitable
method to
The income
of the
customers
can be
understood
to be
above$1500
monthly.
These
customers
can be
belonging to
any social
background
as long as
they are
willing to
shop online.
These
customers
have a
positive
attitude
towards
technological
developments
and prefer he
discounts
They behave
in a rational
manner and
purchase
according to
the best
quality, best
price
combination.

8ENTREPRENEURSHIP
targeted
from 5+ as
all related
goods will be
available
online on the
application
which has
been made
use of.
purchase the
different goods
online. In this
way, they will
be able to use
this application
(Storey 2016).
from the
different
retailers.
Justification
This data has been undertaken from the website of websites like the Woolworths and
Coles which will assist in understanding the overall target market characteristics.
Tools and resources required
The different tools which will be essentially required in the overall development of the
Application can be understood to be as follows:
 Application Developer: The application developing tool will be required for the business
and in line of this; it becomes critically crucial for the organization in question to ensure
that they are successfully being able to undertake considerable steps in order to develop
the application.
 Cloud computing: The cloud computing can be understood to be an application which
can be made use of by the different businesses in order to record the data of the different
customers and to ensure that the different supermarket and their related listings can be
made accordingly (Parker 2018).

9ENTREPRENEURSHIP
 Association with the supermarkets: The association with the different supermarkets can
also understand to be a resource which is required by the business. It is with the help of
this technique, the business will be able to flourish in the long run.
 Promotional associations: The firm would also be required to have adequate promotional
associations which would help the organization in attaining long term success (Read et al.
2016). The promotional department can assist the application in becoming a popular
medium which can be used by the different customers in order to reach out to the target
audience in the right manner.
Contextual Factors
The government has come up with some competitive laws which limits the overall
operations of the business and is present to minimize the overall power of the different large
supermarkets like Woolworths and the Coles. Hence, the business would be required to ensure
that they are able to take advantage of this. Moreover the industry earns revenue of $103 billion
and has an annual growth rate of 2.1%. There are 1966 businesses involved in the industry and
the industry also employees 348766 employees throughout which enables it to perform in a
particular manner (Ibisworld.com.au 2019). The various operators as present in the industry have
reduced prices and have accepted the technique of lowering the margins of the business in order
to stay competitive. The industry is also subject to price deflations which arise from fierce
competition in the market.
Competitive advantage
The competitive advantage which the business will have in the market can be understood
to be the fact that this kind of a business idea is not present in the market currently. Hence, it is

10ENTREPRENEURSHIP
with respect to this, that the organization will be able to gain popularity in long run as t provides
a platform to the different customers whereby they can compare and make the purchases in a
similar manner (Burns 2016).
Personal motivation and discovery of idea
The idea was discovered when I was comparing the prices of the different goods on
various applications and I was not being able to understand the manner in which I would
compare the prices as they were not available side by side. In relation to this, I compared this
idea with that of Trivago as a travel website portal and I was able to understand that, if there
existed an application with respect to the same layout for groceries, it would become
considerably easier to proceed with the shopping. Hence, as I always wanted to become an
entrepreneur and design something good for the society, I came up with an idea which could be
utilized in order to ensure that, the needs of the society can be met with. Through this idea, I will
be able to fulfill this need.
Opportunity cost
If not fulfilling this idea, then I would be probably working at some other organization
which would assist me in fulfilling my overall objectives as an individual and also assist me in
gaining adequate experience regarding the business environment and the manner in which it
functions.
Conclusion
Hence, from the above analysis, it can be rightfully understood that, in order to attain
success in the long run, it becomes relatively crucial for the business to ensure that it is

11ENTREPRENEURSHIP
successfully able to undertake certain creative initiatives which will help it in gaining a
competitive advantage. Entrepreneurship can be understood to be an aspect which becomes
important for an individual to undertake if they want to identify a problem which lies in the
society and provide a creative solution for it. The report outlined an idea I would like to inculcate
and provide an overall analysis with respect to the same.