Strategic Entrepreneurship Project: Business Model of Coconut Travel

This project analyzes the business model of Coconut Travel, a tourism company. It examines the company's sustainable competitive advantages, such as reduced fares and high-quality services, while also acknowledging the associated disadvantages and the competitive nature of the tourism industry. The project highlights the innovation factor, emphasizing the company's ability to identify and fill market gaps through quality service and flexible transport. It also explores strategies for avoiding internal and external pitfalls, including leadership issues and external risks like government policies and terrorism. The project further discusses the potential for a graceful exit, given the company's mobile nature, and emphasizes key features like flexible transport and after-sale services. Finally, it identifies the company's main competitors and the advantages of using Coconut Travel, such as flexibility and after-sale services, positioning it to compete effectively in the market. The assignment is a comprehensive business model plan including various aspects like Executive Summary, Business Background, Market Attractiveness, Unique Value Proposition, Revenue Model, Sales Model, Sustainability, Harvest, Operational Overview and Appendix.

Running head: STRATEGIC ENTREPRENEURSHIP
Strategic Entrepreneurship
Name of Student
Institution Affiliation

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Table of Contents
Sustainable Competitive advantages............................................................................................................2
Innovation Factor........................................................................................................................................2
Avoidance of Pitfalls...................................................................................................................................3
Graceful Exit...............................................................................................................................................4
References...................................................................................................................................................5

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Sustainable Competitive advantages
The coconut travel Limited company enjoys some sustainable advantages such as their
reduced fare and the high quality of services they deliver. The company gives a cool drive in
very cozy seats of the vans. Some of the disadvantages of these sustainable competitive include
the increased amount of money which the company employs in maintaining the best services
they deliver. The factors which are behind the sustainable competitive advantages, as well as
disadvantages, are highly competitive for the tourism industry in the Townsville (Hazelgren,
2012). The target customers are as well not that rich therefore they will prefer a quality service at
relatively cheaper charges.
Innovation Factor
The innovation of starting the travel company was very significant as it helps in getting
more clients. The company saw the business gap where there were other companies offering the
same services but of poor quality and at a relatively high price. Therefore this innovation of
starting up a travel company limited was very successful (Media, 2015). The innovation can be
implemented and encouraged by maintaining high-quality services during their operations. The
company always gives a very cool drive, gives drinking water during the tour journey on a hot
day in the company also have an intention of having a very strong WI-FI to the clients as they
move to their adventures (Shelton, 2017). The innovative ability of the coconut Travel limited
company was better than the already existing companies in the market offering the same
services.
This is because the vehicles in the coconut travel are more flexible than the buses which
are in the market currently. The current cannot move to every part around the town. The buses
can only move on the tarmac road. In some cases, the client may require the company to move

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in places where there is no tarmac road hence such clients may not be serviced as they need and
their movement in the town as they tour would be under a serious check. The business
innovation can be protected through keeping secrete of having cosy seats secrete. The Wi-Fi
provided to the clients by the company during the journey can also be kept in secret (make the
other competitive company not to realize that Wi-Fi is been offered to the clients). Some of the
Intellectual Property (IP) for this company may include the provision of a strong WI-FI, having a
very cosy seat, safe drives among other.
Avoidance of Pitfalls
There are some risks which may arise in the operation of this company internally as well
as externally. Internal risks may include the leadership wrangles in the company as well as the
salary being paid to the employees. Some employees may complain that there are some
employees who are being paid a lot of money but they do little job as compared to them
(Shelton, 2017). While on the external risks may include government policy regarding the
operation of such industry, terrorists, hijackers and poor roads where these vans move to travel
with the tourists. The coconut travel is very sensitive to these internal as well as external risks,
these risks should be reduced if not completely eliminated. The contingencies of coconut travel
are to try as possible to eliminate the above internal as well as external in the market.
Graceful Exit
This type of business has the ability to exit gracefully if the need is, this is because the
travel and tourism company is mobile. For that matter, this business can be easily be transferred
from one point to another depending on where there is a demand for the tourists in the Town as
well as other parts of the country (Podmoroff, 2016). There is no strategy for identifying a
potential opportunity of the harvest of the business. Other exit strategies which can be employed

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may include a high increased number of terrorists and hijackers in a given region. When such
arises in a given region the company may exit and move to another area since this company is
highly mobile.
The most vital feature of the services which will be offered by this company is the
flexible transport in terms of the destination and fare. The company will also give their clients
some drinking water, sweets and biscuit during the journey. From this the company will actually
gain more clients into the business hence it will compete effectively. Due to the aforementioned
benefits of the coconut travels most international students, as well as the locals who are new, will
be compelled to board this vehicle. The main competitors of the coconut travels are the Bamba
Experience and Topdeck.
And the most advantage of using the coconut in transportation by this two main target is
the flexibility and the after sale services of which both have been mentioned. With these benefit,
the coconut will definitely stand out to compete with its main competitors. The offers like
reduction in fare occasionally, after sale services among others are some of the offers which the
clients are anticipated to enjoy when the business kicks off (Ekanem, 2015). The customer will
basically rate fare which the coconut charges and compare it against others (value combination).
The Coconut Travels is very unique since the company offers services at the relatively cheaper
fare and they are also very flexible as stated above. This will make the international students as
well as the locals who are new in the town to use their services as they go touring the region
(O'Donnell, 2016). The company also know every part of the town and they deliver their clients
to their destination without any harassment which of late has been reported in most Towns of
Australia. Due to this, Coconut Travels realizes a relatively higher profit and this will make the
company compete effectively in the market.

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References
Ekanem, I. (2015). Writing a Business Plan: A Practical Guide. Manchester: Taylor & Francis.
Hazelgren, B. J. (2012). Your First Business Plan: A Simple Question and Answer Format
Designed to Help You Write Your Own Plan. Hull: Sourcebooks.
Media, E. (2015). Write Your Business Plan: Get Your Plan in Place and Your Business Off the
Ground. Melbourne: Entrepreneur Press.
O'Donnell, M. (2016). Writing Business Plans That getting Results. Sydney: McGraw Hill
Professional.
Podmoroff, D. (2016). How to Write a Great Business Plan for Your Small Business in 60
Minutes Or Less. Sydney: Atlantic Publishing Company.
Shelton, H. (2017). The Secrets to Writing a Successful Business Plan: A Pro Shares a Step-By-
Step Guide to Creating a Plan That Gets Results. Hull: Summit Valley Press.