Digital Transformation Business Plan for Love Yourself Limited

This document presents a comprehensive business plan for Love Yourself Limited (LYL), a traditional retail company in Kuwait, as it undergoes digital transformation. The plan details LYL's mission, vision, and objectives, including short-term goals like offering premium organic products on digital platforms and expanding into the Kuwaiti digital market, medium-term goals such as expanding into Saudi Arabia, and long-term goals of international expansion into Asia, Europe, the United States, and Canada. The plan includes a PEST analysis of the Kuwaiti market, SWOT analysis, and an examination of the company's values. It also outlines current and new processes, tools, organizational structure, channels, and product divisions, along with current and projected P&L structures. Furthermore, it covers digital business enablers like IOT, Big Data, AI, predictive analysis, and cybersecurity, and discusses transformation of the value chain, credit risk modeling, operational risk models, and other key strategic considerations. This assignment showcases a detailed approach to transitioning a traditional business into the digital realm, with a focus on leveraging technology and strategic planning for sustainable growth and international expansion. Desklib offers a wealth of similar solved assignments and past papers for students.

Running head: BUSINESS PLAN OF A DIGITAL BUSINESS
Business Plan of a Digital Business
Name of the Student
Name of the University
Author note

1BUSINESS PLAN OF A DIGITAL BUSINESS
Table of Contents
Introduction:....................................................................................................................................7
Mission:...........................................................................................................................................7
Vision:..............................................................................................................................................8
Objectives:.......................................................................................................................................8
Short term objectives:..................................................................................................................8
Medium term objectives:.............................................................................................................9
Long term objectives:..................................................................................................................9
Market (including types of customers):.........................................................................................10
PEST analysis of Kuwait:..............................................................................................................10
Political factors:.............................................................................................................................10
Government type:......................................................................................................................10
Bilateral agreements with other countries:................................................................................11
International organisations and their policies:...........................................................................13
Tax and tariffs:...........................................................................................................................14
Political threats:.........................................................................................................................17
Terrorism:..............................................................................................................................17
Volatile political relationships:..............................................................................................18
Findings 5:.....................................................................................................................................19
Economic factors:..........................................................................................................................19

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International currency exchange rate:........................................................................................22
Gross domestic products value (GDP):.....................................................................................29
Financial network:.....................................................................................................................31
Capital generation:.................................................................................................................31
Investments, revenue generation and liquidity:.....................................................................35
Support of allied sectors:.......................................................................................................36
Social factors:................................................................................................................................39
Educational standard:.................................................................................................................39
Culture:......................................................................................................................................40
Social usage of ecommerce:......................................................................................................42
Technological factors:...................................................................................................................44
Advanced technology:...............................................................................................................44
Cyber thefts:...............................................................................................................................48
SWOT analysis:.............................................................................................................................49
Values of the company:.................................................................................................................50
High quality products:...............................................................................................................51
Ethical and sustainable sourcing:...............................................................................................51
Diversity management:..............................................................................................................52
Innovation:.................................................................................................................................53
Processes of the company (new):..................................................................................................53

3BUSINESS PLAN OF A DIGITAL BUSINESS
Tools for each processes (current and new):.................................................................................54
Tools for Each Processes (New)....................................................................................................54
Digital business enablers...........................................................................................................54
IOT.........................................................................................................................................55
Working of IOT.........................................................................................................................55
Benefits of IOT’s in business organizations (LYL)..................................................................57
Application of IOT....................................................................................................................57
BIG DATA............................................................................................................................57
Working of Big Data.............................................................................................................58
Benefits of Big Data in Business (LYL)................................................................................59
Application of Big Data for marketing and sales..................................................................59
AI...........................................................................................................................................60
Benefits of AI in business (LYL)..........................................................................................60
Predictive Analysis................................................................................................................61
Benefits of Predictive Analysis.............................................................................................61
Object Recognition in business.............................................................................................62
Working of Object Recognition in business..........................................................................62
Benefits of Object Recognition in business...........................................................................62
Application of object recognition in business.......................................................................63
Chat-bot.................................................................................................................................63

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Working of chat-bot...............................................................................................................63
Benefits of chat-bot in business.................................................................................................64
Application of chat-bot in marketing and sales of LYL............................................................65
New Predictive Analysis Model................................................................................................65
Use of UNSTRUCTURED DATA............................................................................................68
Massive amounts of information (BIG DATA).....................................................................69
Cloud Computing.......................................................................................................................70
Perspective Model.....................................................................................................................71
Collaborative models.....................................................................................................................71
Benefits of collaborative model for LYL..................................................................................71
Digital business based on collaborative models.....................................................72
Cyber security and Digital Business Security...........................................................................72
Digital marketing.......................................................................................................................73
Omni-channel............................................................................................................................75
Transformation of value chain:......................................................................................................75
Value chain analysis:.....................................................................................................................76
Credit Risk modelling:...................................................................................................................78
Operational risk model:.................................................................................................................78
Quality Risk models:.....................................................................................................................79
Market risk models:.......................................................................................................................79

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Conversion risk models:................................................................................................................80
Segmentation model:.....................................................................................................................80
Branding models:...........................................................................................................................80
Demand Forecast model:...............................................................................................................80
Fraud model:..................................................................................................................................81
Fidelity Models:.............................................................................................................................81
Organisation of the company (current and new):..........................................................................81
LYL Current Organizational Structure......................................................................................81
Channels:.......................................................................................................................................88
Current Traditional Supply Channel..........................................................................................88
Current Traditional Distribution Channel..................................................................................90
E-Commerce Channels..............................................................................................................91
E-Commerce Distribution Channels..........................................................................................92
Products/Divisions of the company:..............................................................................................93
Division 1 (Shower gels and skin care products)......................................................................93
Division 2 (Women’s FMCG’s)................................................................................................94
Division 3 (Apparel’s)...............................................................................................................94
Division 4 (Food).......................................................................................................................95
P&L structure (current):................................................................................................................96
P&L structure:...............................................................................................................................96

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References:....................................................................................................................................97

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Introduction:
The country of Kuwait is very rich and is backed by huge oil reserves. The residents in
the country have high disposable income and can afford high quality products. The people in the
country usually lead high standard of life and seek more healthy products. The country has an
extreme geographical conditions consisting of vast and dry Arabian Desert. The country thus
suffers from shortage of food due to utter deficiency of cultivable land. The farmers in order to
cultivate more crops use high amount of chemicals which finally pass into the consumers. The
pesticides have shown to have detrimental effects on the health of the consumers, both man and
animals (KuwaitTimes.com. 2019). The similar trend of excessively high chemical addition
continues even while making personal care products and apparel. This scarcity of pesticide free
food, apparel and skincare products is the gap in the Kuwaiti market which the new business
plan would seek into fill. Love Yourself Limited (LYL) is a traditional retail company based
in Kuwait City, the capital city of Kuwait. The company till now has no digital presence
and operates through retail outlets in Kuwait city. The company would expand expand into
the digital platform by opening its official website and own ecommerce portal to market its
products.
Mission:
The mission of Love Yourself Limited is offering high quality products of organic origin
to customers on the traditional format as well as on the digital platform to generate high revenue.
The products of LYL are free from harmful chemicals and environment friendly. The company
would carry forward this mission of offering high quality organic products to the new digital
segment as well. The digital marketing platform of LYL would be accessible on different types
of devices like desktops, laptops, tablets and smart phones. The goods which the company offers

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are organic food products, organic personal care products and apparel made from organic
materials. The services which the company would seek to offer are customer care services and
advices for healthy lifestyle. The products which are only available at the city stores would also
be accessible on the digital platform. The paper would revolve around formation of a digital
strategy for the traditional company namely, Love Yourself Limited (LYL) from the point
of view of the chief executive officer (CEO) of the company.
Vision:
The vision of the LYL is creating value for both the customers, the society and the
environment by offering organic products. LYL has several chain of brick-and-mortar stores in
Kuwait city through which its serves customers. The company envisions to expand its market all
over Kuwait using its digital platform. The company would then close some of its existing brick-
and-mortar outlets, especially the poorly performing ones. This would result in reduction of cost
of store operations and cut down the carbon footprint of the company.
Objectives:
The objectives of LYL would be divided into short term, medium term and long term
objectives.
Short term objectives:
The first short term business objectives of Love Yourself Limited would be offering
premium quality organic products on the digital platforms at premium prices to generate high
profits. The digital platform would provide all the products which the traditional brick-and-
mortar stores of LYL are offering at present. The second objective of the company would in the
short term aim to expand into the digital market of Kuwait. The third short term objective of

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LYL would be increasing its issued capital by issuing fresh shares and complying with the
prescribed regulations in the country for increasing issue of shares (Boursakuwait.com.kw.
2019).
Medium term objectives:
The first medium term objective of LYL would be expanding into Saudi Arabia to cater
to the growing digital commerce market of the country. The company would at a later stage
would also open its own signature stores in Saudi Arabia. The second medium term objective of
the company would be listing its securities on Saudi Stock Exchange to gain access to the stock
market.
Long term objectives:
The long term business objectives of Love Yourself Limited would be divided into three
stages. The company would expand into four Asian countries namely, India, China, Japan and
Sri Lanka as its first long term objective. As a part of expansion into the Asian countries LYL
should get listed on National Stock Exchange (NSE), The Stock Exchange of Hong Kong
Limited (HKE), Tokyo Stock Exchange and Colombo Stock Exchange respectively. The second
long term objective of LYL would be expanding into Europe. The countries LYL would target
are France, Germany, Italy and the United Kingdom. The third long term strategy which the
company would seek to materialise would be entry into the United States and Canada. The
company would get listed on LSE on the UK and NYSE in the USA. Thus, the long term aim of
the company would be to emerge as a transnational company with its business spanning across
several countries and listing on leading stock exchanges, thus rendering it with a robust financial
base to operate at the international level.

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Market (including types of customers):
The main market of LYL would be Kuwait, the country of domicile of the company. The
main customer base LYL would target would consist of middle and upper class customers who
want lead healthy lifestyle by consuming organic products. Oroian et al. (2017) can business
firms including digital business firms come under the strong effect of the macroeconomic
factors. It can be pointed out that business firms cannot control these external market factors.
They, in order to adapt to these factors have to form strategies. Thus, it can be pointed out that it
would be prudent for LYL to conduct a macroeconomic analysis of the Kuwaiti market using
two tools namely, PEST and Porter’s five forces model.
PEST analysis of Kuwait:
The PEST analysis of bring into light the macroeconomic market conditions of Kuwait
which would in turn direct the strategies which LYL would be required to adopt. The PEST
analysis would take into account political factors, economic factors, social and technological
factors which the company would require to consider.
Political factors:
The following are the political factors of Kuwait which LYL would be required to take
into consideration:
Government type:
Kuwait has a hybrid form of political system combining features of an elected parliament
and appointed government. The head of the state is Emir which corresponds to the monarchy
form of administration prevailing in most of the countries in the Middle East. However, the
nomination of the heir apparent to the monarch requires nomination of National Assembly by

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absolute majority. Similarly, though the Prime Minister of the country is appointed by the Emir
or the king, the nomination is subject to approval of the National Assembly (Kna.kw. 2019). The
political system of Kuwait is far more liberal compared to Saudi Arabia which is absolute
monarchy (Saudi.gov.sa. 2019). This political stability of Kuwait is evident from the fact Kuwait
scored 78 in the political risk (Prsgroup.com. 2019).
Findings 1:
The above analysis of the government type of Kuwait shows that the government of the
country is semi-monarchy. This means that the government of the country is able liberal in
nature compared to the other Gulf countries. This means that the companies in Kuwait can avail
more support from the government of the country to procure resources from foreign countries as
well as export their goods. This liberal nature of the Kuwait Government would also enable the
resident companies like LYL to expand into other countries as well (Meyer et al. 2018).
Bilateral agreements with other countries:
The Government of Kuwait has strong relationships with several countries of Asia, North
America, South America, Europe and Oceania. The Government of Kuwait has embassies in
these countries. The countries like Canada and the United States of America have their
embassies in Kuwait in turn (E.gov.kw. 2019). These strong bilateral relationships of the
Government of Kuwait is a great driver for the companies due to two four reasons. Nordman and
Tolstoy (2016) mention that foreign relationships with other resource rich countries enable the
companies to procure raw materials for their finished products. Moreover, the companies based
in Kuwait like LYL are able to able to procure plants from other countries. Secondly, this
enables the companies to obtain talented employees from other labour markets like China and the
US (Khilji, Tarique and Schuler 2015). Thus it can be inferred from this discussion that foreign

12BUSINESS PLAN OF A DIGITAL BUSINESS
relationships play instrumental roles in acquisitions of human resource, raw materials and
machinery. Tung (2016) strengthens the arguments by mentioning that acquisition of foreign
talents enable the companies like Kuwait like LYL to bring innovation in their operational
processes including production of goods. Thus, in other words foreign relationships of
governments opens the doors to innovation in the resident companies. Thirdly, it can be pointed
out that the procurement of raw materials, plants and human resources are subject to laws and
acts in power in Kuwait as well as the countries of origin. For example, the Central Agency for
Public Tenders, Government of Kuwait clearly mentions that the firms procuring materials for
manufacturing purpose are to comply with Law No.(49) of Public Tender Law (Capt.gov.kw.
2019). Similarly, the companies of Kuwait while importing materials need to comply with the
laws of the country of origin of materials. The United Kingdom has prescribed laws of exporting
and importing goods to and from other countries. The taxation and tariffs in the country are
under the purview of HM Revenue & Customs. The country uses CHIEF systems to allow
goods leaving the ports of the United Kingdom and the EU ports (GOV.UK. 2019). The
companies like LYL based in Kuwait should follow the rules and guidelines laid by the
governments of the counties they are importing goods from. The Department of Foreign Affairs
and Trade, Government of Australia clearly mentions that country has a Free Trade Agreement
with Gulf Cooperation Council or GCC which also includes Kuwait (Dfat.gov.au. 2019). This
means that the Kuwaiti companies like LYL can avail preferential trade conditions in while
importing resources from Australia as well as exporting finished goods to the country.
Findings 2:
The above analysis shows that bilateral trade agreements signed between the Government
of Kuwait and other countries play instrumental role in sourcing resources from other countries

13BUSINESS PLAN OF A DIGITAL BUSINESS
like the United and Kingdom. However, the procurement of resources are strictly administered
by the governments of both Kuwait and its trading partner countries. This means that the
companies like LYL acquiring resources from host markets and exporting finished goods to
them (Ying, Ping and Yang 2016).
International organisations and their policies:
The business organisations functioning in Kuwait come under the influence of policies
and regulations laid down by the international organisations like the GCC. The GCC Common
Customs Law laid down the GCC applies to Kuwait since the country is a GCC member
(Dubaicustoms.gov.ae. 2019). The Government of Kuwait has entered Kuwait Environmental
Governance Initiative (KEGI) to scale up environmental sustainability within the country
(Kw.undp.org. 2019). The official website of UN environment assembly clearly mentions that
Government of Kuwait supports General issued by the G77, Asia Pacific Group and China. The
website further mentions that the government of the country has pledged to reduce unsustainable
production and consumptions of products within the country (Web.unep.org. 2019). The GCC
Council including Kuwait has a strong relationship with the international body, the European
Union on the lines of strategic business cooperation. The relationships between the countries
forming the two bodies which includes Kuwait is governed by the Cooperation Agreement
concluded in 1988. The high level of cooperation between the two international bodies is evident
from the rising export and import of goods between the EU and the GCC members including
Kuwait (Ec.europa.eu. 2019). This means that country of Kuwait has to comply with the
agreements signed between the two bodies. This means that Kuwaiti companies like LYL should
abide by these agreement signed by between the GCC and the EU while sourcing raw materials
and capital from the EU market.

14BUSINESS PLAN OF A DIGITAL BUSINESS
Findings 3:
The analysis of the above discussion clearly shows that international agreements between
governments and international bodies substantial impact on the strategies of the business
organisations. The discussion also shows that the agreements between international bodies also
apply on the decisions of the national governments (Andreff 2016). For example, the agreements
which the GCC enters with other governments and international bodies like the UE apply to
Kuwait since the latter is a member of the GCC.
Figure 1. Graph showing EU-GCC(including Kuwait) trade
(Source: Eeas.europa.eu. 2019)

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Tax and tariffs:
One of the most important political factors which come into play in business operations
of countries is tax and tariffs. Contractor (2016) while discussing taxes and tariffs mention that
companies while importing raw materials often take tax considerations to choose markets from
where they acquire goods. They further go on to mention that companies often ‘park’ their
revenue in tax havens to escape the high rates of taxes and tariffs which governments of several
countries impose on their earnings. Auerbach and Holtz-Eakin (2016) contribute to the
discussion by mentioning that tax adjustments and tax exemptions apply when goods cross the
borders of countries. As far as Kuwait is concerned, the government does not impose corporate
income tax or CIT on companies wholly owned by GCC residents which including Kuwait.
However, the foreign business organisations conducting their businesses within Kuwait have to
pay a CIT of 15 percent as shown in the graph (figure) (Taxsummaries.pwc.com. 2019). The
publicly traded companies in Kuwait have to pay a Zakat of 1 percent. The companies
operating in the country also have to pay 1 percent of their net profits after transfer to statutory
reserve and offset of losses carried forward to Kuwait Foundation for the Advancement of
Science or KFAS.

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Figure 2. Graph showing corporate tax rates in Kuwait
(Source: Tradingeconomics.com. 2019)
An analysis of the tax structure of Kuwait discussed above shows that the taxation
policies of the country would heavily influence the taxation expenditure of LYL. The company
being based in Kuwait and held by Kuwaiti nationals would not have to pay CIT. However, the
company has to pay a Zakat and KFAS of 1 percent each.
LYL would also have to consider the customs rates imposed by the governments of other
nations since it would have to procure raw materials from them. For example, as on July 01,
2018, the Government of India imposes a customs rate of 10 percent on organic products and
pharmaceutical goods (Cbic.gov.in. 2019). The Government of Australia imposes Goods and
Services tax on the goods as per Goods and Service Tax Act 1999. The current rate of GST
imposed on sale of goods in Australia is 10 percent. This means that the companies in Kuwait
have to pay GST in Australia both while purchasing goods and while selling goods in the country
(Ato.gov.au. 2019). This means that the LYL has to bear immense cost to comply with the

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taxation and customs laws of several countries several countries like India and the United
Kingdom. The company would have to incorporate these factors in its expansion strategies and
budgets as well (Hoffman, Munemo and Watson 2016).
Findings 4:
The above discussion clearly reveals that government policies regarding taxes and
customs duties have strong implications on business operations. The firms have no control over
the changes in rates in taxes and customs duty even if the same erodes their revenue a great
extent. For example, LYL would be sourcing organic food products, personal care and organic
apparel from countries. This means the company would have to pay taxes in all these countries
which would reduce its revenue.
Figure 3. GST rate in Australia
(Source: Ato.gov.au. 2019)

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Political threats:
Political factors are not only great drivers but also great threats. The following are the
threats which can emerge before the business organisations on account of political factors:
Terrorism:
Terrorism is one of the greatest threats which the country of Kuwait faces. There is no
reported involvement of the country in terrorism. However, closeness of the Kuwaiti
Government to Washington does attract terrorist attacks towards the country (Theguardian.com).
Nordman and Tolstoy (2016) can be reiterated in this case to mention the bilateral political
relationships of the national governments with governments of resource rich countries like the
US are undoubtedly one of the biggest drivers of business organisations. This is due to the fact
that countries which are smaller and have an extremely domestic demands for products can
obtain resources from resource rich nations. This fact is very much applicable for Kuwait. The
country has one of the most developed markets with its residents enjoying high incomes. This
leads to high demands for products which the domestic market fails to meet completely owing to
small area. Thus, companies like LYL can obtain organic products from the resource rich
markets like the US and India. The company can also obtain technological capital and manpower
to support its future digital strategy. Jongman (2017) throws light on the darker side of these
strong bilateral relationships. He contradicts the previous authors and points out that strong
bilateral relationships does not attract terrorism. Kuwait has faced terrorist encountered on the
embassies of the US which again proved the proposition (Edition.CNN.com. 2019). Beck (2016)
points out in support of the statement of Jongman (2017) that terrorism results in damage of
fixed assets like buildings and machinery. It also leads to injury and death of human resources,
thus hitting the productivity very badly.

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Volatile political relationships:
The changing government decisions which includes bilateral relationships have drastic
impact business operations of companies. The Government of Kuwait has a strong sour
relationship with Iraq which has largely been exaggerated due to strong relationship which
government of Kuwait shares with Washington D.C. (Arabnews.com. 2019). However, a recent
report by the Reuters contradicts this strong US and Kuwait ties. The United States of America
declined to fund reconstruction of Iraq in which Kuwait is also involved. This can be attributed
to the sour relationships with the US shares with Iraq (Reuters.com. 2019). This lack of support
of the White House to Kuwait can also be viewed as signs of loss of support of the developed
European countries like the UK since they have a strong tie with the US. Moreover, there are
also predictions of a future Gulf War which would have dire impacts on the entire Middle East
Economy include Kuwait (Apnews.com. 2019).
Findings 5:
The above discussion clearly points out that political factors are not only great drivers to
business but can result great threats to the latter. In fact, it can also be pointed out in the light of
discussion that sometimes the threats outweigh the advantages political relationships between
countries usher (Tilly 2017). It is undeniable that bilateral political relationships usher great
advantages to business organisations. As far as LYL is concerned, it can be pointed out that the
company can derive great advantages due to political ties of the Government of Kuwait with
government of countries like the US and India. The company can acquire products, manpower
and technology from these countries. As far as political threats like terrorism are concerned, the
company has no direct control over these events. It has to set aside an immense contingent fund
to manage such situations (Cobb Wry and Zhao 2016).

20BUSINESS PLAN OF A DIGITAL BUSINESS
Economic factors:
The economic factors have great impacts on the business generation of business
companies. Yoder, Visich and Rustambekov (2016) point out digital expansion of companies
create requirements for fresh capital to acquire new talents and technology. Dapp and Slomka
(2015) throw light on the fact the digital marketing of goods requires more capital investments
towards hiring payment gateways from banks. As as far Love Yourself is concerned, the
company is aiming to expand its presence to digital platform and making strategies in the
direction. The flowchart given below compares between the present traditional business
processes and the business generation process post adoption of the digital embracement. The
flowchart shows that in case of traditional business format, the customers visit the stores of LYL
and purchase directly from the counter (Mihălcescu, Sion and Iacob 2018). The customers
directly pay in cash or using debit/credit cards. The revenue directly flows to LYL as indicated
by the red arrow. The entire marketing process would be multi-layered post embracement of the
digital business strategy. The customers would view the products on the official website of LYL
and place orders. The customers would then place orders on the digital portal. The customers in
this case exercise either of the two options make payments. The first option for payment is to
make the payment right along with the order placement. The second option is to make the
payment in form of cash on delivery or using cards. The revenue in this case flows from the
customers through the payment gateway in case of card payments (Bughin, Lund and Manyika
2015). In case of the cash on delivery, the revenue flow to the company from customers through
the medium of the courier delivery company, as shown by the green arrows.

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LYL
Retail sales division
(Traditional
business)
Digital sales
division (Newly
expanded business)
Goods sold to
customers directly at
the retail stores
Payments received in
cash/cards
Customers view
products on
digital portals
Customers place
orders
Customers pay cash
on delivery
Customers pay through cards
on delivery of goods or may
pay right along with the order
Figure 4. Flowchart showing sales and revenue generation process using traditional and digital
platforms
(Source:Author)

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It is clear from the discussion that Love Yourself Limited or LYL upon launching its
digital business segment would increasingly come under the economic factors. The company
would require raise more capital to invest in digital platforms and payment gateways. The firm
would also require to borrow more business loans to acquire ecommerce software from foreign
companies. The company already due to its selling organic products including food products,
personal care products and apparel products comes under influence of changes in the
international currency exchange market. However, due to launch of digital marketing segment,
the company would require to acquire more products to market online, thus coming under the
influence of economic factors at higher degrees. The following are the main economic factors
which would influence the business of LYL in order to launch and operate on the digital
marketing platform:
International currency exchange rate:
The first and in fact one of the strongest economic factor which would influence LYL is
international currency exchange rates. It is evident from the discussion that LYL is already under
the influence of changes in the international currency exchange rates owing to the fact that it
acquires organic products from foreign markets. However, embracing digital business would
require the company to acquire more products from foreign markets. Similarly, the company
would have to acquire software packages to manage its online and traditional business from
foreign companies like Microsoft. Thus, LYL would require to consider the currency exchange
rates in every aspect of business.

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Figure 5. Graph showing KWD:USD exchange rate for five years
(Source: Bloomberg.com. 2019)
The graph above shows 5 years historical exchange rates of Kuwaiti Dinar(KWD) in
comparison of USD. It must be pointed out that KWD is the most expensive currency in the
world at present and enjoys high exchange rates over all other currencies. It is clear from the
above graph that KWD enjoys higher position than USD. A KWD is equivalent to USD 3.2986
as on January 28, 2019. This means that by investing an amount in KWD, the Kuwaiti can
purchase roughly three and half times more goods and services. However, the trend is pointing
downward which means KWD is weakening against its American counterpart. It can also be
pointed out that KWD has weakened against USD compared to its position prior to 2015. KWD
has in fact weakened from 3.45 to 3.30 from 2015 to 2019 and shows very low signs of recovery.
It can be inferred from the above analysis that Kuwait companies like LYL cannot be depend on
USD to minimise its product procurement cost considering the fact that KWD is actually

24BUSINESS PLAN OF A DIGITAL BUSINESS
showing a bearish trend against USD (Intriligator 2017). Thus, LYL in order to procure its goods
at economies of scale, has to consider other international currencies as well.
Figure 6. Exchange rate of GBP:KWD for 5 years
(Source: Xe.com. 2019)
The above graph shows historical exchange rates for 5 years between KWD and GBP.
The graph shows that in 2016, GBP fell to 0.36 in comparison to KWD. The currency is showing
strong bullish trend in 2019. An analysis of the graph again shows weakening position of KWD
in the international currency market.

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Figure 7.Exchange rate of AUD:KWD for 5 years
(Source: Xe.com. 2019)
The graph above shows that exchange rates between AUD and KWD for 5 years. The
graph shows that AUD has experienced continuous fall against KWD. Thus, it can be inferred
from the analysis that KWD is gaining against AUD more strongly compared to GBP and AUD.
The trend of strengthening of KWD against AUD also continues into 2019 as the latter is
showing a bearish trend against the former.

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Figure 8. Exchange rate of EU: KWD for 5 years
(Source: Xe.com. 2019)
The above graph compares the historical values of EU against KWD in the past 5 years.
The graph clearly shows that EU enjoys a weaker position in the currency market internationally.
It can also be pointed out that EU fell to almost 0.30 points compared to KWD at the beginning
of 2015. However, the currency has recovered and almost crossed a mark of 0.37 towards 2018
after which its value fell. However, in comparison to GBP, USD and AUD, EU shows a quicker
regeneration against KWD.

27BUSINESS PLAN OF A DIGITAL BUSINESS
Figure 9.Exchange rate of KWD:INR for 5 years
(Source: Xe.com. 2019)
The above graph compares the historical trends of KWD against INR for 5 years. The
graph clearly shows that KWD enjoys a very high exchange rate against INR. KWD touched 245
mark against INR in 2018 but fell abruptly to almost down to 225 in the middle of the year and
failed to achieve the similar recovery it experienced in 2018. In fact, KWD is showing a bearish
trend against INR. However, considering the immensely domestic demand for organic products
in India, the companies in Kuwait would have to incur expenditure to acquire organic products
from the country. Thus, it is clear that LYL based in Kuwait cannot depend on India alone to
ensure economies of scale in procuring products. This makes it important for the company to
take into consideration another Asian currency namely, Japanese Yen or JPY.

28BUSINESS PLAN OF A DIGITAL BUSINESS
Figure 10. Exchange rate of JPY:KWD for 5 years
(Source: Xe.com. 2019)
The above graph shows that historical trend of KWD against its Japanese counterpart
namely, JPY. The graph clearly shows that JPY is weakening against KWD but is recovering
fast. JPY tanked against KWD through 2018 but is showing bullish trend towards 2019.
Findings 6:
It is clear by the above analysis and comparison between international exchange values of
KWD of several international currencies that the position of KWD is not very strong. In fact, the
rate of KWD shows downward trend against several currencies like USD and GBP. The
downward trend continues even in case of INR, a currency against which KWD enjoys a very
high position. Thus, it can be pointed out that as far as LYL is concerned, the company has to

29BUSINESS PLAN OF A DIGITAL BUSINESS
diversify its entire business operation over several markets to take advantage of differential rates
of currency exchange rates.
Gross domestic products value (GDP):
The second important economic factor which impact business organisations is GDP or
monetary value of all the products manufactured within a country. Rosnick (2016) mentions that
more GDP shows more productivity in a country. This fact can also be interpreted as more
demand for products within a country which is actually leading to the high amount of production.
As far as LYL is concerned, the presence of several outlets in Kuwait actually points out that
there is high demand for the organic products the retail company manufacture. However, it can
be out the digital expansion of LYL would attract fresh costs like hiring of banking portals, bank
charges and portal maintenance charges. Thus, it can be pointed out that the firm should consider
the GDP of Kuwait as well as some of its target host countries like the US to make concrete
digital strategies.
Figure 11. Graph showing GDP of Kuwait (USD bn)

30BUSINESS PLAN OF A DIGITAL BUSINESS
(Source: Tradingeconomics.com. 2019)
The graph above shows the GDP of Kuwait through 5 years. The graph clearly shows that
the GDP of Kuwait was USD 174.16 bn in 2013 which fell to as low as USD 110.91 bn. The
falling GDP of Kuwait can closely be linked to the falling value of KWD in the international
currency market. Sorrell (2015) mentions that falling GDP means that the value of products
manufactured within a country is also falling. It can also be interpreted as falling productivity
within the country. It can be pointed out the USA on the other hand enjoys a very high GDP.
This means that the value goods manufactured within the country is also increasing. This rising
trend of GDP in the USA compared to Kuwait can also be related to the weakening trend of
KWD against USD (Bloomberg.com. 2019). This is because lower GDP or falling production of
goods and services makes a country depend on other countries to meet its local demand. It can be
pointed out in this light that Kuwait owing low production of products, is bound to import
immense amount of goods from foreign countries like the US. This leads to eroding of its foreign
currency reserve and finally lowering its own currency’s value.
Figure 12.Graph showing GDP of the USA (USD bn)

31BUSINESS PLAN OF A DIGITAL BUSINESS
(Source: Tradingeconomics.com. 2019)
Financial network:
The third economic factor which comes into play while establishing new businesses or
new segments is financial network available both within the country of domicile as well as in
host countries. Dave and Varoglu (2016) mention in this respect that business establishments are
dependent on the financial networks for several reasons.
Capital generation:
The first essence of a strong financial network is capital generation. Rosnick (2016) can
be reiterated in this case where he mentions that GDP of a country shows the value of finished
products produced within the country. It can be interpreted that more productivity also shows
that the companies are able to acquire more financial resources to channelize into production
activities. Thus, in a way increasing GDP exhibits strong financial network within the country.
As far as the financial network of Kuwait is concerned, the country’s financial sector is governed
by two institutions namely, the Central Bank of Kuwait and Kuwait Stock Exchange. The
Central Bank of Kuwait makes the financial policies for financial transactions within Kuwait
including online payments (Cbk.gov.kw. 2019). Thus, it is evident that companies engaging in
online receipt and payment of money have to comply with the policies of CBK. As far as floating
shares in the market and raising capital the companies come under the jurisdiction of Kuwait
Stock Exchange (KSE) and CBK. KSE is one of the biggest stock exchanges in the Gulf market.
Thus, it can be construed from the explanation that the strong financial system of Kuwait

32BUSINESS PLAN OF A DIGITAL BUSINESS
Figure 13. Figure showing Kuwait Stock Exchange index for 5 years
(Source: Tradingeconomics.com. 2019)
The graph shows the stock exchange index on KSE for a period of 5 years. Gu (2016)
clearly mentions that stock exchange rates show the returns which investors can get from
investing in a particular stock market. Thus, considering the fact that operating on the digital
platform require immense revenue investments it can be said that companies have to generate
immense capital from the stock market in order to support their increasing capital requirements.
Diaz, Molero and de Gracia (2016) strengthen the argument by mentioning that high stock
market returns are capable of attracting more investments. It can also be pointed out that
investors consists of both individual investors and institutional investors taking into stock
exchange indices of past periods. The Financial Times reports in one its recent reports that
Kuwait is one of most of the most source of investments but the government is taking steps to

33BUSINESS PLAN OF A DIGITAL BUSINESS
reverse the trend to attract more FDIs. The government of the country in order to attract more
FDIs has introduced incentives like customs exemptions and tax holidays up to 10 years (Ft.com.
2019). It can be inferred in the light of the discussion that Kuwaiti companies can expect to
generate more capital due to investments from resident as well as foreign investors. This would
boost their productivity of goods and services, thus boosting the GDP of the country (Budiharto,
Suyanto and Aluisius 2017). Thus, it is evident that strong financial network contributes towards
capital generation of the companies in Kuwait including LYL.

34BUSINESS PLAN OF A DIGITAL BUSINESS
Figure 14. Top FDI receiving sectors of Kuwait and the country's position in FDI in GCC
(Source: Ft.com. 2019)

35BUSINESS PLAN OF A DIGITAL BUSINESS
Investments, revenue generation and liquidity:
The second essence of strong financial network pertains to the investments and liquidity
of current assets of business organisations. Ebrahimi, Nasab and Karim (2019) opine that
business organisations in order to maximise their capital investments in assets like commodities
and stocks of shares. This boosts the cash and bank balances on the asset sides, thus boosting the
current ratio of companies. Thus, it can be pointed out that a strong financial network in a
country integrated to the global capital markets ensure that companies can diversify their
investments to maximise their profits from investments and minimise investments risks.
Berssaneti et al. (2019) adds to opinion of the previous author and mention that a strong financial
network plays important roles in generation of revenue, thus ensuring liquidity in the businesses.
It can be pointed out that compared to traditional brick-and-mortar marketing format, ecommerce
platforms enable companies to investment in a larger stock of securities and market goods before
a large base of consumers. Ng et al.(2016) though does not contradict the opinions of the two
previous authors, point out that business generation on digital platforms makes companies more
dependent on online banking payment gateways which are prone to cyber threats. Thus, this
requires a strong financial regulations by the apex bodies. Lu (2018) opines that access more a
larger customer base enables the companies to sell more goods and generate higher revenue. This
higher rate of conversion of stock of finished goods into revenue attributes higher financial
liquidity. Thus, it is evident once again evident that a strong financial network is the prerequisite
for strong business operations on digital platforms. As far as Kuwait is concerned, its financial
network is helmed by CBK and KSE, which regulate all financial transactions including online
transaction.

36BUSINESS PLAN OF A DIGITAL BUSINESS
Support of allied sectors:
The second essence of a strong financial network in a country which boosts business
productivity of business organisations is support from allied sectors. Japparova and Rupeika-
Apoga (2017) mention that digitalisation of marketing of goods and services requires companies
to depend increasingly on online transactions. This is because the online marketing portals in
order to secure large sales generation online usually offer exclusive discounts on online payment
after ordering the goods. Dai (2015) point out in this respect that banks in order to sell more
payment gateways, debit cards and credit cards give additional offers like discounts and cash
backs on using their respective debit/credit cards. The customers in order to avail prompt
delivery of products and to profit from the various discount offers attached to debit as well as
credit cards, pay online. Lindgreen et al. (2018) throws light on the fact that online payments
minimise the need to use notes and hard copy of payment vouchers, both of which lead to felling
of trees for pulp, one of the main raw materials for making both currency notes as well as paper.
Thus governments in order to encourage sustainability, governments are encouraging online
transactions. Vasarhelyi, Kogan and Tuttle (2015) contribute to the opinion of the previous
authors by mentioning that online payment facilitates real time account of transaction which
increases the speed of accounting operations. That is why companies also encourage customers
to make online payments. Thus, it is evident from the discussion that a strong financial network
in a country is no doubt responsible for generation of capital and revenue as well maintaining
financial liquidity in the companies (Lu 2018). However, it cannot be denied that in order to
ensure the online revenue generation commences fast, the supporting sectors like the information
technology and banking sector needs to be developed in order to support digital business in retail
sectors companies LYL. Thus, it can summarised that strong financial network also supports

37BUSINESS PLAN OF A DIGITAL BUSINESS
growth of allied which in turn leads to strong digital business generation. Lin and Kim (2016)
refute that online transactions attract cyber theft of information and financial thefts. This is
because on embracing digital business methods to receive payments requires customers to fill up
confidential information like their bank account and debit/credit card PIN. This leaves ways for
hackers to steal these pieces of confidential information to divert money to support their own
illegal activities. Thus, it can be inferred from the discussion that business like LYL which are
embracing digital business strategy should form strategies to minimise these cyber threats.
Findings 7:
The above discussions point out to two important and interdependent factors which
companies need to consider while either entering the market of Kuwait or expanding their
traditional businesses into digital platform namely, GDP and financial network. As far as GDP of
Kuwait is concerned, it fell in 2016 but has risen in 2017 (Figure 11). As far as financial network
of Kuwait is considered, it is strong under the supervision of CBK and KSE. This means that
Love Yourself Limited should form the financial strategies regarding its newly planned digital
strategy complying with the guidelines and policies formed by these two apex bodies. As shown
in the figure below the company would invest in stock of finished goods which it would sell
through third party distributors and retail chains, its own outlets and digital portal to customers
(green arrows). Secondly, the company would require to generate increasing capital (orange
arrow) and revenue (red arrow) to support the digital strategy. The company would depend
increasingly on the banking networks and payment gateways to mobilise its financial resources
to earn higher returns from the market. It would then channelize portions of its revenue towards
paying returns. to investors (red arrows) and reinvesting in the acquiring stocks of finished goods

38BUSINESS PLAN OF A DIGITAL BUSINESS
Love Yourself Limited follows
policies laid down by CBK and
KSE
Acquires finished
goods
Investors
Markets on the
digital platforms
Sells to third
party
distributors and
retailers
Sells through its
chain of outlets
Customers
(arrows).
Figure 15. Diagram showing interdependence between capital and revenue generation based on
the financial network of Kuwait
(Source: Author)

39BUSINESS PLAN OF A DIGITAL BUSINESS
Social factors:
The social factors play a very significant role in development of a traditional business
into digital formats. Tur-Porcar, Roig-Tierno and Llorca Mestre (2018) mention that social
support plays several roles towards attributing digital businesses success. This is because while
transforming into digital businesses, the traditional businesses have to assess the social
acceptance of online marketing in a country. Secondly, they have to assess the social conditions
like educational standard in a particular country and the knowledge among the residents about
online banking.
Educational standard:
The standards of educational qualification in Kuwait is of great importance to business
organisations establishing their businesses in the country. Al Shobaki et al. (2017) mention that
educational standards play very important roles both in terms of acquisitions of talents and
marketing of goods. The country has a high level of educational standards with several students
perusing their higher studies abroad (Export.gov. 2019). It can be implied in this respect that
higher standards of education among the students in Kuwait enable the companies to acquire
highly educated employees with knowledge in diverse fields like accounting and management.
Raj and Aithal (2018) mention that education and knowledge in different areas enables the
people to avail highly paying jobs. This enables them to get access to higher income and
standard of lives. These people as a result have more disposable income to purchase organic
products which are expensive. Wang et al. (2015) mention that consumers having higher
educational background are usually more aware about their requirements of products. Thus it is
evident that these consumers would have higher degree of knowledge about highly involving
products like organic products. Thus, it can be inferred from the discussion that educational

40BUSINESS PLAN OF A DIGITAL BUSINESS
qualification have great impacts on the talent acquisition as well as business generation of
companies.
As far as LYL is concerned, the company would be required to acquire highly qualified
and experienced employees to boost its operations. This would enable the company to hire
experienced and skilful managers who would be able to take accurate business decisions. Thus, it
can be inferred from the analysis that educational standards of the people living in a country have
direct effect on the human resource acquisition of the business organisations. Secondly, it can be
pointed out that since more people in Kuwait are highly educated, many of them pursue highly
paying jobs. This allows the people residing in the country have more disposable income to
purchase organic products. Thirdly, it can be pointed out that the people in the country owing to
their stronger educational backgrounds are in a better position to afford to get jobs paying high
salaries. This gives opportunity to invest in highly expensive products like organic products.
Thus, it is evident that high educational standards of the people of Kuwait would enable LYL to
employ highly educated and qualified personnel in the managerial positions. Secondly, this also
paves way for high revenue generation in the company.
Culture:
Culture is one of the important social factors which companies have to consider in order
to establish themselves in the market. This factor would play a very a very important role for
LYL since it would be market organic skincare products, apparel and food products, all of which
form significant components of the culture if Kuwait. Colson-Sihra, De Sousa and Mayer (2018)
throw light on the importance of culture in consumption of products. The market of Kuwait has
far as high end organic market in Kuwait is concerned, it is already very competitive. The
National, one the English published in Abu Dhabi reports that the new entrepreneurs entering the

41BUSINESS PLAN OF A DIGITAL BUSINESS
market are expanding their businesses into several Gulf countries like Kuwait and Abu Dhabi
which the offices in both the countries. The daily further reports that the new organic products
marketing companies either possess their own official portals to market their products or are
embarking on strategies to do so (Thenational.ae. 2019). The Gulf News supports the National
by mentioning that the organic market in Kuwait is already under dominance of multinational
brands, most of which are owned by global companies (Nair 2018). American news channel
CNN reports that the entrepreneurs from the Middle East are already enjoying presence in the
western and more developed markets like the US (Lewis 2018). Thus, it is clear from the
analysis from an analysis of these articles that the market of Kuwait is already very competitive
making in tough for new players to enter. Al-Kandari, Al-Hunaiyyan and Al-Hajri (2016) opine
that beauty, food and dress are integral part of the culture of Kuwait. The people in the country
have a rich tradition of skincare using ingredients like argan oil. The people, both men and
women wear flowing dresses which cover their heat which provides protection from the heat.
The food culture of people consist of dishes made from meat, pulses and spices. Dairy products
also form an important part of the food habits of the Kuwaiti people (Al Sayegh et al. 2016). An
analysis of the discussion show that there is a huge scope of marketing of organic skincare
products, food products and apparel products. This is because there is a huge demand for organic
variants of these three product segments and consumers are ready to shell high prices for them.
As far as LYL is concerned, it can be pointed out that culture would form a driving factor
towards establishing of its business in the country. This is because the product line of the
company already shows that the company would market high quality organic skincare, food
products and apparel products, all of which would be aligned to the culture of Kuwait.

42BUSINESS PLAN OF A DIGITAL BUSINESS
Social usage of ecommerce:
The third factor which would be considered by LYL while establishing its digital
business division would be acceptance of ecommerce in the society of Kuwait. The graph below
shows that more than a million people in the country got access to internet which was less than
10 thousand in 2000. Herzallah and Mukhtar (2016) mentions that internet access rate in a
particular hold important position in the business consideration for business organisations
targeting to market their products on the digital platform. This is because ecommerce today plays
a very important role in marketing of products. The customers can view and order products
online using the digital platform. Elmorshidy et al. (2015) strengthens the argument by pointing
out that a widespread ecommerce network enable the companies to get access to an immense
customer base which is not possible using the traditional business process of the brick and mortar
stores. Thus, ecommerce penetration in a particular market paves ways for huge revenue
generation.
Figure 16. Graph showing number of internet penetration in Kuwait

43BUSINESS PLAN OF A DIGITAL BUSINESS
(Source: Tradingeconomics.com. 2019)
As far as Love Yourself Limited is concerned, the company is expanding digitally (the
aim of the research) and would definitely gain by the immense acceptance of ecommerce in
Kuwait. This is sufficed by a report published by the leading payment gateway and debit card
marketer, Master Card. The report mentions that over half the population of Kuwait have
experience of ecommerce shopping of goods (Newsroom.mastercard.com. 2019). Similar trend is
reflected in the figure shown below as per Deloitte. Thus, it can be inferred from this analysis
that high rate of ecommerce usage and penetration in Kuwait would enable the company to
market its goods all over the country to generate huge revenue.
Figure 17. Graph showing ecommrce market including Kuwait
(Source: Deloitte.com. 2019)

44BUSINESS PLAN OF A DIGITAL BUSINESS

45BUSINESS PLAN OF A DIGITAL BUSINESS
Findings 8:
It can be pointed out from the analysis above that the social factors in Kuwait are
supporting the digital expansion of LYL. First, the high level of education in the country would
enable the company to obtain highly skilled and talented employees. These managers would be
in a position to take more prudent business decisions which would enable the company perform
better in the market, especially in the digital market. Secondly, educated people are generally
more likely to get more highly paying jobs and withdraw higher salaries. Thus, educated
consumers would be in a better position to take purchase decisions and have higher disposable
income to buy organic products LYL would market (Hasanov and Khalid 2015). The second
social factor which would boost the business of LYL in Kuwait would be its culture. Skincare,
food and apparel form significant parts of the culture of the country. The company would thus
get huge scope of marketing of organic products in all the three segments (Eisinger-Watzl et al.
2015). The research also shows that the country enjoys deep penetration of internet marketing
among its people. This means that the company can sell market its products on the digital
platform to generate huge revenue which would boost its revenue generation.
Technological factors:
Technological factors which LYL should consider while forming its digital expansion
strategy are as follows:
Advanced technology:
The first technological factor which LYL should consider while operating in Kuwait
would be advanced technology. Ryan (2016) mentions that technology plays a very significant
role in digital expansion of business organisations. As shown by figure number 15, the company

46BUSINESS PLAN OF A DIGITAL BUSINESS
would be using online payment gateways to make and receive payments. This means that
advanced technology would directly play an important role in the business generation of the
company. Donnelly et al. (2015) mention that business organisations have to use big data to
analyse the needs and consumption patterns of customers. The traditional business structures
consisting of brick and mortar pattern have limited scope of customer interaction. The business
organisations following the traditional business pattern and having no digital arm usually interact
with the customers at the counters. The also generate customer data from their distribution chain
of suppliers and distributors. They use this data to acquire products according to the customer
needs and offer the same to the customers to generate revenue. They may use ecommerce to
acquire products from suppliers. Todor (2016) point out that business organisations which seek
to blend traditional business with digital business have to embrace higher level of digital
operations. First, the digital businesses require to acquire more hardware and software which
require to invest far more capital compared to traditional businesses. Secondly, the digital
businesses require to bear higher expenditure to maintain this digital set up. Allahow, Al-Hawary
and Aldaihani (2018) mention in this respect that Kuwait is technologically very advanced. The
Government of Kuwait is taking an initiative of investing USD 200 million to boost the
technological development of the country. Thus, it can be opined from this analysis that Kuwait
is technologically advanced which would boost the businesses of the companies involved in
digital marketing of products.
Secondly, it can be pointed out that companies involved in digital businesses are required
to acquire immense amount of customer data using big data. De Mauro, Greco and Grimaldi
(2015) opine that companies marketing products on the digital platform have to manage
immense amount of confidential customer information like debit/credit card numbers and PIN

47BUSINESS PLAN OF A DIGITAL BUSINESS
which customers input while making payments. The companies would require to assimilate and
share the data with their business partners as and when required on the cloud computing
platforms. This paves way for real time predictions which allows the managers to take
appropriate decisions based on the predictions. This again shows that advanced technology is one
of the prerequisites of digital businesses.
Thirdly, ecommerce business operations would require use of the online platform to
receive payments. The diagram below shows that the payment systems using online method at
point of sale are complex systems. They involve banks where the customers making payments
have their accounts or the issuer banks and acquirer banks where the companies receiving the
payments have their accounts. The diagram also shows that the entire payment processes go
through several authorisations and encryptions. Jarajapu et al. (2016) mentions in this respect
that ecommerce transactions involve variety of devices right from laptops to smart phones. Thus,
the payment systems have to be compatible with different types of devices.

48BUSINESS PLAN OF A DIGITAL BUSINESS
Figure 18. Diagram showing payment systems of Apple
(Source: Ghosh et al. 2017)
Fourthly, it can be pointed out that the official payment systems have to be available in
different languages for customers from diverse linguistic backgrounds to comprehend and gather
product information easily. Companies today use deep learning technology to make their
company and product information available to customers in diverse languages (LeCun, Bengio
and Hinton 2015). This would enable companies marketing goods on the ecommerce platforms
interact with customers from different countries and market products.
As far as LYL is concerned, it can be pointed out that it would profit from the
technological advancements taking place in Kuwait in several ways. First, the company would be
able to use technology like big data and cloud computing to manage as well as use an immense

49BUSINESS PLAN OF A DIGITAL BUSINESS
mass of consumer data (Ghosh et al. 2017). The company would be able to take the advanced
payment gateway facilities present in Kuwait as reported by Deloitte (Deloitte.com. 2019).
Thirdly, it would be able market its products to customers from diverse language backgrounds
and countries using the deep learning system. Thus, the discussion can be summed up by
pointing out that technological advancements boost digital businesses of companies like LYL.
Cyber thefts:
Cyber threats are challenges which companies have to encounter on entering the digital
platform to market goods. Companies conducting business on the online platforms are able to
manage and use large mass of customer data (LeCun, Bengio and Hinton 2015). Ghosh et al.
(2017) show in the diagram above that online payment systems enable the companies to receive
payments directly in their respective bank accounts without any human intervention. Thus,
companies in order to take advantage of real time payment receipts and marketing goods before a
large base of customers encourage use of digital platforms. Bello-Orgaz, Jung and Camacho
(2016) contradict these authors to point out embracing of digital platforms bring companies
under the impact of cyber thefts and loss of immense amount of money online. There have been
incidences of top companies like Aamzon coming under threats of cyber hackers and losing
customer data (Foxbusiness.com. 2017). Thus, it can be pointed out that cyber threat is a huge
threat to companies like LYL which are expanding from the traditional business into digital
space. The company in order to ensure protection from cyber thefts should form strong IT
policies.
Findings 9:
The above analysis shows that technology can prove to be booth a big boost and a threat
to digital business. LYL should take the advantage of the technological prowess of Kuwait to

50BUSINESS PLAN OF A DIGITAL BUSINESS
market its products on the digital platform. However, the company should also take appropriate
steps to ensure protection from data security (Zhang, et al. 2018).
SWOT analysis:
An analysis of strengths, weaknesses, opportunities and threats (SWOT) of Love
Yourself Limited would pave ways for strategy formation. The company already has existence in
the Kuwait market and aims to enter the digital platform by launching its own official website
with an attached ecommerce portal. The SWOT analysis to be conducted would assume that the
company already has a stable customer base in Kuwait and is already financially strong.
Strengths:
1. Financial strengths: LYL is an established
traditional business in Kuwait and is
financially strong. It is a limited company and
can source capital from the market. The
financial strength is evident from its shift
towards digital business which requires
immense capital investments.
2. Huge customer base: LYL already has a
huge customer base which is evident from the
financial base which supports the digital
strategy of the company.
3. High quality products: LYL markets high
quality products.
Weaknesses:
1. No digital presence: LYL follows a
traditional business format which means the
company has no digital presence till date.
This means that the company is not able to
market its products online compared to its
competitors.
2. Lower competitive strength: LYL owing
to its lack of digital presence fails to market
its products on the digital platform, thus
losing business opportunities to customers
which means it has lower competitive
strength compared to its competitors.
3. High operating costs: Operating in
traditional business format using brick-and-

51BUSINESS PLAN OF A DIGITAL BUSINESS
4. Environmental sustainability: LYL
markets organic products in Kuwait which
means that products cause minimum
environmental damage.
mortar format attracts a huge operating costs
compared to the revenue generated.
Opportunities:
1. Digital expansion: LYL should enter the
digital format. This would enable it to
generate high revenue by marketing its
products online.
2. Marketing of products: LYL should
market its products to generate higher
revenue.
3. Generating higher capital: LYL would be
able to provide information about its products,
financial performance and other business
related facts on its official website. This
would enable it attract more capital by
projecting a more transparent image before
the investors.
Threats:
1. Cyber threats: LYL on entering the digital
platform would also expose itself to cyber
threats.
2. Legal threats: LYL would be required to
comply with laws pertaining to internet
operations and ecommerce businesses. This
would require the company to employ
specialists.

52BUSINESS PLAN OF A DIGITAL BUSINESS
Values of the company:
The values of Love Yourself Limited would be offering high quality organic skincare
products, food products and apparel products to its customers. The values of LYL post its
embracement of digital format would stand on the following four pillars:
High quality products:
LYL would always strive to offer its customers high quality products to create value to
customers. Wu and Lin (2016) mention that high quality products are directly related to customer
satisfaction. This is because today customers do not only consider prices of goods while making
purchase decisions but also consider the ingredients in the products. Signes-Pastor, Carey and
Meharg (2016) strengthen the argument by pointing out that the inorganic products are cheaper
but harm the health of consumers. The inorganic products contain high doses of chemicals and
additives which ultimately harm the health of the consumers. The consumers due to this reason
are shifting towards organic consumers. LYL following this changing preferences of consumers
would aim to offer consumers with high quality products to consumers containing no artificial
additions and chemicals. The company would aim to create value for the consumers not only in
terms pricing but also in terms products quality. It would enable the consumers to lead healthier
lifestyle by offering organic products which would boost their wellbeing.
Ethical and sustainable sourcing:
Love Yourself Limited would source the products it would offer to customers from
ethical sources. The representatives of the company prior to entering into procurement contracts
with suppliers would inspect their modes of operations. The managers from the company would
visit the factories and workplaces of the suppliers. They would ensure that the suppliers and their
business partners carry on business in compliance with ethics and legislations in place

53BUSINESS PLAN OF A DIGITAL BUSINESS
(Simangunsong, Hendry and Stevenson 2016). Quarshie, Salmi and Leuschner (2016) opine in
this respect that companies receiving products from suppliers have to ensure that their suppliers
are not involved in any unethical operations. Bag, Gupta and Telukdarie (2018) in this respect
that mention that unethical practices by suppliers have impact on the goodwill of the companies.
Thus, in this respect it can be pointed out that LYL in order to ensure that the suppliers operate
and supply goods in ethical manner would visit the workplaces of the suppliers. Mani et al.
(2016) add to the discussion by mentioning that sustainability is the second important criterion
which retail companies should ensure. Wilhelm et al. (2016) mention in this respect that there
have been reports of suppliers indulging into unsustainable practices like felling of trees to
establish their own organic raw materials plantations. The retail companies procuring goods from
these suppliers are also implied to be involved in the unsustainable acts of the former (Shafiq et
al. 2017). This attracts negative actions from customers. The customers often shift to retailers
sourcing products from sustainable sources (Bocken, Boons and Baldassarre 2019). It can be
inferred from the discussion that LYL would ensure that its suppliers are not involved in any sort
of unsustainable practices.
Diversity management:
Diversity management would form the third pillars of the values of the Love Yourself
Limited. Noe et al. (2017) opine in that diversity management plays a very significant role in
business organisations both while dealing with employees and customers. As already pointed out
the company would employ employee across its different locations in Kuwait and in foreign
countries post foreign expansion. The apex management of LYL would lay down a positive
organisational culture based on diversity management. The company while serving customers
would show due regard to their cultures. The front office staff who would deal with customers

54BUSINESS PLAN OF A DIGITAL BUSINESS
directly would be given diversity management training as a part of their job training. Thus, the
company would hold diversity management in high regards in its modes of operations.
Innovation:
Love Yourself Limited would carry on continuous innovation towards brionging about
more improved versions of its products. The company would also bring about innovation on its
digital portal to make it more customer friendly.
Processes of the company (new):
The company mainly follows a traditional retails sales structure for doing its business as
of now. In this structure, the company has to acquire raw materials from the suppliers,
manufacture the products, and then distribute it to the target market (Fredendall and Hill 2016).
The company heavily relies on acquiring organic goods from the suppliers since that is the main
material which the company relies on. It has a specific supply chain, from which it acquires its
organic materials. To ensure that the company maintains its quality in its products, it only
acquires raw materials from one of the most trusted and well reputed organic raw materials
suppliers in the world, mainly in from the United Kingdom. After acquiring them, comes the
manufacturing process, which is aimed at doing in a way that proves to be the most time and cost
effective (Kusiak 2018). In this, the company gets the products manufactured in the factories and
laboratories which it has established (ElMaraghy and Abbas 2015) in Kuwait and the UK. The
company has a range of products from apparels to packaged organic and nutritive food, and
hence, the manufacturing processes are extensive (Taleizadeh and Noori-daryan 2016). Once the
products are manufactured, they are packaged in a way that ensures the safety of the products
when they get transported (Goossens, Liang and Oh 2018), and get ready for distribution. The
company has its set of distribution channels in various parts of the world. Distribution managers

55BUSINESS PLAN OF A DIGITAL BUSINESS
sign deals and contracts with external retail stores and departmental stores (Cooper and Lightfoot
2018) to get their products into those stores to be sold to the customers. The products are shipped
and received by the retailers, who further place the products in the stores’ shelves to be sold to
the customers (Stark 2015).
Tools for each processes (current and new):
The LYL have been a traditional retail business situated in Kuwait. The tools use by the
retailer were very basic and old school. To conduct a retail business, LYL was divided into two
categories that used software for the accounting and supply chain.
The basic accounting software used were Tally and Excel. Tally Accounting is a kind of
software that is solely used for the purpose of accounting. Tally helps in maintain the
comprehensive compilation of all the transaction related to the organizational finance. It helps in
keeping track of all the internal and external transaction in the organization (Help, 2019).
Microsoft excel is also a platform that was designed to conduct accounting processes. It supports
budgeting a organization, financial statement preparation and it also creates balance sheets
(Hearst, 2016). The software integrates the external data that would provide the
user a window to export and import banking related information and financial
data. LYL used to conduct their accounting department work in these two
software. The retailer also had Microsoft Excel to conduct all the supply chain
management. The retailer used to entry each and every supplies that is
being carried out. The Excel sheet had all the entries of the supplies being
conducted.

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Tools for Each Processes (New)
Digital business enablers
Organizations are slowly moving towards digitalization and are enabling e-commerce
techniques. In few years, the businesses would be conducted on the basis of e-business via
internet that would help the organization of size exponentially. With recent development,
industries and business enterprises are moving towards solution which are more convenient, like
e-business. Enablers would help as an enhancers in digital marketing. Developing a digital
culture that would diffuse the respective organization. Rather than having a digital leadership
that would be pushed down through hierarchy, the organization would diffuse the FSIs that
would also provide a hand to the organization to evaluate the strategic emerging options and also
provide a brief window to determine both possibilities of the organization and the desired goals.
The following enablers would provide a brief overview on digital marketing enlargement for the
retail business LYL.
IOT
The internet of things, also known as IOT; can be classified as a system that interrelate
computing devices as well as mechanical and digitalized machines. It interconnect all the objects
that are provided with unique identifiers (UIDs). It also provided the ability to the user to transfer
data with respect to a network without the interaction of human to human or human with
computer. Recently, organizations are getting in touch of IOT for more efficiency and better
understanding the customers so that enhanced customer service would be delivered. It also helps
the organization in decision making while increase the value of the business.

57BUSINESS PLAN OF A DIGITAL BUSINESS
Working of IOT
The IOT system is a smart device that is web-enabled, uses an embedded processors,
sensors and a specific communication hardware that collects, analyses, and sends the data that is
collected from the business environment in which it is implied. By connecting to IOT gateways,
the devices share the collected sensory data or by connecting with other devices that are edge
connected. The collected data is then forwarded to the cloud so that it is analysed or the analysis
is done locally. The devices work on their own, without human interaction. However, sometimes
human counterpart is needed to access the data.

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Fig – 1 The different aspects of IOT and how it is connected to various platforms.
(Source: i-SCOOP. 2019).

59BUSINESS PLAN OF A DIGITAL BUSINESS
Benefits of IOT’s in business organizations (LYL)
Internet of Things have various benefits and offers them to the particular organization.
The usage of IOT would enable LYL to
a. Help them monitoring their entire process of business
b. Provides improved experience for customers
c. Money and time both gets saved
d. Productivity of the employees are enhanced
e. Business models are being integrated and adapted
f. Provides scope for better decision making related to business
g. More revenue is generated
Application of IOT
IOT is a platform that could be applied in all kind of business, both small and large scale.
LYL would use IOT for developing smart fleets or more efficient shipping. IOT developments
can also help the organization to monitor potential threats that are a concern of security. The
platform is also capable of turning the ways of operation the LYL uses to conduct business. With
IOT, LYL would be connected to more than just the local region. It would connect with every
individual.
BIG DATA
Big data can be demonstrated as kind of the data that are in a more complex data sets
form. These sets of data are huge and are not processes with regular software. Big data is
composed with a set of different ranges of data-gathering and strategies of analysis. In a simpler

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form it provides the ability to monitor, capture, stock and analyse various data on a larger scale
to influence the decisions related to business.
Working of Big Data
Data is generated on a daily basis. Every time, an individual is accessing the internet,
they are generating enormous amount of data. The data could be related to anything, it could be
something the individual is surfing about in the internet or the person healthcare data or
preferences. These are big data. Companies are in access of these data to create products that
their consumers would want or need. In the era of digitalization, people are more reliable on
products available online. Big Data are being generated monitoring their choices. Organizations
configure their products in such manner that fall in the categories that the individual is in access
of. Thus. Big data helps the organization in connecting with the preferences of the customers and
one step closer to the needs of their consumers.

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Fig 2 - Describing the working principle of Big Data Analysis
(Source: Arjuna.com. 2016).
Benefits of Big Data in Business (LYL)
The main importance of big data is the purpose of the data the company or the business
organization is using for and how the collected data is being utilized. The following are some of
the benefits the LYL would get if they collect big data
a. There would be an initial saving at cost for the company. The organization would
have save their investments from customer interaction campaigns for knowing their
needs.
b. Collection of big data would also help the organization in time management.
c. Big data would also help the organization to understand the current condition of the
market.
d. Big data would also provide ability to the organization to control their reputation on
online platforms.
Application of Big Data for marketing and sales
Big Data provides a scope to the organization in optimizing the price of the product.
Mostly the analysis of optimizing the product price is done in three parts. Reflective analysis of
history and choices of the customers. Statistical analysis is done for the determination of price
elasticity and dynamics of the market. Finally, business optimization is done for the analysis of
cost that is incurred while the manufacture and identification of the price point and the
maximization of the profit margin.

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AI
Artificial Intelligence (AI) is something that is new. The application of AI have several
prospects in various fields. The use of AI in business have many uses. AIs that are designed for
business purposes are used by managers of the organization to understand the growth of the
business and the opportunities of the organization regarding their scope. It also delivers to the
employees that could use improvements and also valuable insights regarding the finance,
marketing and design of the structure of the organization.
Benefits of AI in business (LYL)
AI would provide scope for LYL to have predictive marketing that would initially help
the organization in unlocking the crude potential in the business. The following are the benefits
that AI would provide in the business if implemented.
a. It provides an intelligent 360 degree overview on the customers. It helps in customer
segmentation that is based on values and perspective of marketing activity.
b. Helping the organization to explore data and revealing the maturity set for each
customers.
c. Predictive analysis of the platform by assimilating various data sources would help
the organization to identify the key strategies.
d. AI would upgrade the sales of the organization by making it proactive on every
opportunity of sales it would get.
e. AI would have access to all the data related to the organizational machine learnings
that would prevent from extra production of losses. It would initially prevent loss of
revenue.

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Predictive Analysis
Predictive analysis can be classified as the use the collected data, algorithms that are
statistically incorporated and machine learning techniques. It is uded to identify the possible
future outcomes that are based on the past data. The primary goal of predictive analysis is to
provide best assessment to the organization and come up with a possible future outcome.
Benefits of Predictive Analysis
As more advancement in the business industry, predictive analysis have been the key
scope of the organization to stick in the business. The following are the benefits that predictive
analysis provided to the organization
a. It improves the efficiency of the production of the company. With the help of
predictive analysis the organization could monitor the demand of the consumers so
the organization could limit the production according to the needs.
b. It helps the organization to be one step ahead of the competitors. Tapping it the data
analytic would help the organization to access the information needed to estimate the
rightful information needed to compete and to know why consumers are preferring
the particular product over others.
c. The process could also be used to reduce risks. Finance and insurance sectors of a
organization uses predictive analysis to screen the data needed for their manufacture
and sales. This is classified as a more reliable form of interpretation for business
conduction.
d. The process also provides the ability to the implementer to detect any kind of fraud in
the organization. The process recognizes cognitive approaches by monitoring
behaviors.

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e. Predictive analysis butters up the marketing campaign for the organization to boost up
their sales.
f. It also helps the organization to meet the expectations of the customers. By accessing
the data that deals with the need of the customers, organization process their
manufacturing pattern according to that and thus provide scope for the organization to
meet the expectations.
Object Recognition in business
Object recognition is process of identification of objects with the help of techniques
based on computer vision. It can also be classified as a key output that helps in deep learning and
interpreting algorithms based on machine learning.
Working of Object Recognition in business
In business, the sections of objects recognition is done through the process of machine
learning and deep learning. In machine learning, the object recognition is based on the process of
manual feature extraction, the process that analyses images and videos for the discovery of key
features of the object that customers would recognize.
With the deep learning method, object recognition is done by the core principle of
artificial neural networking processes. This process in applied on raw data, which in turn
automatically learns to spot the differences in an object and also similarities in the object. The
organization can transform the process in their own means to conduct custom dataset and adjust
any open source.

65BUSINESS PLAN OF A DIGITAL BUSINESS
Benefits of Object Recognition in business
Object recognition or image recognition has numerous application that would create great
deal of values to the business conducted by LYL.
a. The application would provide security and surveillance to the organization.
b. Product recognition application would have made easy to get in access of the desired
product.
c. Object recognition would make mobile advertising easy to optimize the business.
Application of object recognition in business
Object recognition technology works by gathering the data and organizing it for analysis.
The program would interpret the computerized image as either pixel based or polygon based
image. Thus, the method would help LYL in identifying the important data in image and
distinguishing the particular product from other items. Object recognition would also provide a
platform to build predictive model. With the use of neural network which is a combination of
hardware and software resources, learning algorithms would be implied to understand the
distinguish features of the object, providing LYL a head start in understanding the need of their
customers based on their choices.
Chat-bot
Chat-bot, an artificial intelligence software which is used to simulate conversation
between users in natural language via mobile and messaging application, websites and telephone.
It is also considered as a means for the interaction between human and machines.

66BUSINESS PLAN OF A DIGITAL BUSINESS
Working of chat-bot
The core working ability of chat-bot its ability of identifying the intent of the user and to
extract the data and other relevant units in the user’s request. After the identification of the intent
of user, chat-bot is expected to provide the most appropriate response to the request of the user.
Pattern matching method is utilized by chat-bots to produce the appropriate response to the user.
Example of pattern matching could be used by LYL
Fig – 3 Example of pattern matching that can be used by LYL for chat-bot generation for better
customer service
(Source: Elupula, 2016).
Benefits of chat-bot in business
Chat-bot, which is basically a computer program, provided several benefits that can be
used in the business conducted by LYL.

67BUSINESS PLAN OF A DIGITAL BUSINESS
a. It saves time. When chat-bot is used on organization website, they could provide fast
automated answers to the random questions asked by customers. The customers
would not have to wait to receive response from the organization.
b. Chat-bot saves money. An average cost of building chat-bot ranges from $2000-
$10000 depending on the complexity. It is cheaper than hiring workers form customer
service and to provide automated answers to the customers.
c. Chat-bot provides greater customer satisfaction. Chat-bots are AI that do not needs
sleep or any kin d of rest. Thus, it would provide 24/7 service to the customer which
would be beneficial for LYL.
d. The use of chat-bot in the business cuts down errors that is mostly done by humans
handling customer services.
Application of chat-bot in marketing and sales of LYL
Chat-bots are in constant touch of social media and are integrating with the social media.
It is gathering data from every individual person it is interacting with. These collected data could
be used by LYL to answer all the query asked by the customers in their official website. It also
provides a scope to LYL to gather and analyze customer feedback. Implementation of chat-bot in
the business of LYL would automatically funnel sales to the customers. Chat-bot would help
LYL to gather information that is needed to create personalized messages that would guide the
customer through the journey of purchasing the product of LYL.
New Predictive Analysis Model
Predictive modelling is used to create predictive analysis model that would create a
model by testing and validating a model that would predict the best possible outcome that could
be used in a business or organization. A new predictive analysis model is made through

68BUSINESS PLAN OF A DIGITAL BUSINESS
following the few steps. At first, the collected data is preprocessed. Then the collected data is
mined and the results are processed for validation. Then the data is analysed and understood how
it would be useful for the business. After that, data is prepared which in turn helps in modelling
the data. Then the model is evaluated and deployed to be applied.
LYL could use the three types of predictive model for shifting from traditional business to new
digitalization transformation to conduct their business.
a. Predictive model – This type of model helps in predicting future performance by
analyzing the past performance.
b. Descriptive model – The following type of model quantify the data relationships in
such a way that often classify many data sets in a group.
c. Descriptive model – the decision model would provide LYL a window to describe the
relationships between the elements needed for decision making and in order to predict
the results for those decisions by the involvement of variables of the data collected.
Set of algorithms would be needed for LYL to develop new predictive model. The Time
series algorithms works on the basis of time related predictions. Regression Algorithm is based
on predicting variables that are found in the data set. Association Algorithm would help in
finding frequent patterns inside huge transactional datasets for the generation of association
rules.

69BUSINESS PLAN OF A DIGITAL BUSINESS
Fig – 4 UML Use Case Diagram of LYL for new digital Transformation
(Source – Author)

70BUSINESS PLAN OF A DIGITAL BUSINESS
Use of UNSTRUCTURED DATA
Unstructured data is a kind of information that is consisted in many forms which can be
analyzed o get in touch of many mainstream rational databases. Structured traditional data such
as data under transactional sectors or financial system of business applications is a rigid format
that ensures consistency while processing and analyzing it. On the other hand, unstructured data
are maintained in a format which is not uniform. Thus, this enables a window to more
comprehensive analysis.
Certain steps could be taken by LYL for analyzing the unstructured data collected for marketing.
1. By setting up process that is automated, captures data while analyzing the
structural feed, such as social media monitoring. This would help LYL in
processing more information regarding their customers for developing a
marketing strategy that would target the right customers.
2. The analytic process would help LYL in identifying the areas of interest of the
customers and consolidating the information into different relevant groups.
3. It would also help in identifying patterns and trends related to sales and marketing
targets within the range of aggregated data thus providing scope to LYL for new
digital transformation.
For LYL, analyzing a data deluge which is as huge as unstructured data could seem like
dreading task. However, by pulling all the data sources information available regarding the
customers, LYL could gain an advantage in viewing the bigger picture related to customer
experience. Thus, by the analysis of unstructured data, LYL would understand the needs for their
customers and provide a better support and response to the needs of their customers.

71BUSINESS PLAN OF A DIGITAL BUSINESS
Massive amounts of information (BIG DATA)
Big data in marketing would enable LYL to increase their ability conduct huge volume of
information and also expand their range of analysis. It would also speed the reporting ability of
LYL by enabling real-time forecasting and help LYL in conducting more informed decision
making. This would provide window of opportunities for LYL to understand thereturns from the
extra budget investments and also help LYL in understanding the amount of spending that would
affect the revenue of the retail organization.
With the help of big data analysis, LYL marketing strategies would see benefits from
huge amount of targeting options for online advertising. The growth rate of cookies and
information rich social media data, helping LYL to understand that the data stored there would
go beyond simple demographics and geographic based target options.
It would be big challenge for LYL to understand the current performance that would
enable LYL in optimizing their campaigns and improving the results. LYL could use big data
technology that has decision process algorithm, providing them a sheer processing power which
is needed to optimize campaigns in a real manner.
Real Time Prediction
Real time prediction is a type of analysis based on predictive models that are deployed in
the means to run in order to enable decision making processes. Predictive model used in business
is built on the basis of large data collected from customer services.
The use of real time prediction would help LYL in increasing their efficiency and
productivity. It would also help LYL in reducing cost in processing. LYL would be able to use
fewer resources for predictive analysis that would save LYL in misallocation of resources,

72BUSINESS PLAN OF A DIGITAL BUSINESS
saving both cost and time. It would produce fast result for LYL regarding new development and
customer acquisition model. It would also help LYL in fraud detection. With increase in cyber
threats and criminal activities, the development of multiple layer of analytics would help LYL in
recognizing frauds and prevent any sort of vulnerabilities.
Deep Learning
There are various application of deep learning in marketing that would
help LYL in turning into new digital transformation. It would help LYL in
purchase of RTB software that would provide space for data storage. It would
help LYL in setting Chat-bots that would provide human like services to the
customers. The automatic translation ability would provide the ability to LYL
to create several websites of the company in different languages. It would
also provide ability to AI installed by LYL in speech recognition for enabling
voice search.
Cloud Computing
The adaptation of cloud computing would help LYL in digital transformation. It would
provide agility to LYL. Could would provide the required infrastructure to reinvent the business
model of LYL and it would also provide platform and computing abilities that would help firms
be prepared for changes. Cloud computing would allow LYL to move up and down in case of
cost and labor effectiveness, providing LYL to pay for only the resources they would use. Could
would also provide security to LYL from breaching in data, disasters and system failure. It
would also help LYL in multiplying their backups. The risk of system failure would reduce for
LYL. There would be faster prototyping for LY. Clouds would help in efficient execution in the

73BUSINESS PLAN OF A DIGITAL BUSINESS
process of analyzing and computing without the need to use complicated resources. It would
provide the ability to LYL to test and deploy different applications on various platforms for
experimentation in marketing strategies. Digital transformation would involve the use of
replacing the legacy system and the traditional work practices by processing the support agility.
Perspective Model
The perspective models are used for the prediction of future outcome by the ananlysis of
past achievements and involvements. LYL could use different perspective model based of time
series algorithms, regression algorithm and association algorithm to predict the outcome of their
activities and for their sales. With the help of perspective model, the digital transformation for
LYL would receive a new upgraded platform. The data collected with the help of big data
analysis would help LYL in creating a decision making perspective model that would help them
understand the perspective of the customers and their needs.
Collaborative models
Collaborative business model would require a distinguished business structure due to the
competitive requirements. LYL would use the collaborative model for increasing competitive
pressure in the global economy. It would also help LYL to add capacity to the outsource,
increasing the expertise and values in the chain of competitive edge. It would also require
responsible corporate governance of the structure at LYL.
Benefits of collaborative model for LYL
1. It would help LYL in building critical mass that would be required for increasing
the market share.

74BUSINESS PLAN OF A DIGITAL BUSINESS
2. It would also help LYL by increasing the competitive advantages through the
increase in process of goods sold and improve the cost of production.
3. Opportunities for LYL in concentrating on long term competitions would be
enhanced by rolling over short term cost and gains
4. LYL would be able to collaborate expertize, knowledge, and the capabilities of
employees.
5. Sharing of resources such as machinery and equipment, capital and market
contracts would be increased in LYL
6. Co-operative intelligence of LYL would be increased.
Corporate governance for collaborative model at LYL would be developed through the
adaptation of collaborative model. The development would include clear strategic directions and
critical business conduction. LYL would have clear concept of policies with the collaborating
organization.
Digital business based on collaborative models
Collaborative model based on digital business is a new concept. E-collaboration is stated
as the use of internet and other technologies that would help organization is assisting distance
customers by exchanging information. These information is further used by organizations to
interact between suppliers and customers. E-collaboration is also demonstrated as a tool that
breaks the boundaries of activities that involve buying and selling transactions. The reason LYL
would utilize e-commerce for the need to share information and resources. It could be estimated
that the reason of conducting digital business based on collaborating model is to lead a sharing of
database for tracking the system and enhancing the inter-enterprise visibility.

75BUSINESS PLAN OF A DIGITAL BUSINESS
Cyber security and Digital Business Security
As the new era of technologies and development, most of the business are conducted
through internet. Transactions are done online. The need of proper security is need to save
companies from frauds. Cyber security has become an integral part in business value delivery.
Cyber security is the protection of internet connected systems which includes the hardware,
software and the cloud storage.
The use of cyber security could help in preventing cyber-attacks and data breaches. When
an organization have strong networking, it would need security. The threats stated below would
help LYL from cyber attacks.
a. Cyber-terrorism – It could be classified as a disruptive use of the information
available about and organization by terrorist groups to further identify individuals at
the particular organization and could have other agendas.
b. Cyber-warfare – LYL would be safe from nation state conflicts if they implement
cyber-security. Cyber-warfare attacks are primarily executed by hackers. The identity
of LYL could be used as a shield by organization having different warfare agendas.\
c. Cyber-espionage – Cyber security would prevent other organization not to get in
access of the data that the owner of LYL would possess. This would help LYL in
keeping their strategic plans safe and the information regarding the business
conduction. It would also help in keeping employee information safe.
Digital marketing
Digital marketing would provide window of opportunities for LYL to conduct business
and increase their brand name. With digitalization, LYL would be recognized throughout Kuwait
and also in the global market. The products sold by LYL would receive online platforms and it

76BUSINESS PLAN OF A DIGITAL BUSINESS
would help in distribution of the product in global market as orders would be placed from
various parts of the country.
Fig – 5. Showing the rise in the usage of internet throughout Kuwait
(Source:Joshi 2019).
The use of tags on the names of LYL on social media platforms like Facebook and
Twitter would help LYL in reaching more people and touch them. The product of LYL would be
seen by people that are using Facebook which would in turn help LYL in more sales.
With the help of Facebook, LYL could build a page that would attract more customer to
its aid. The page would promote the brand name of LYL, more people would get to know the
about the products that are being sold by the company. It would in turn help LYL in gaining
more customers.
A Twitter account would also help in reaching more people. Nowadays, people are much
more in touch with the tweets that are made by celebrities that focusing on the real news.

77BUSINESS PLAN OF A DIGITAL BUSINESS
Atwitter account would in turn help in reaching more people as public accessing Twitter
sometimes retwit the twits the find interesting. Thus, LYL would receive global recognition.
Omni-channel
Omni-channel is considered as a strategy of introducing approaches to multiple channels
for sale that would seek to provide customers with the experience of seamless shopping. The
customer would not find any issues if they are shopping from a desktop or cellular device or by
telephone. The business model that weaves the channels together and shares data between them.
It also enables the customer to conduct the business with the companies in any matter they want
and in any time they want.
Omni channel marketing would help LYL in approaching to customers through an
assortment with the help of different channels.
Transformation of value chain:
LYL should use disruptive innovation to introduce new and improved products. The
company as per its value would procure goods using high quality logistics to ensure that goods
are not damaged on transit. The company should inspect its suppliers’ workplace before
purchasing products from them. The company would acquire and train its human resources. It
would use IT tools like ecommerce to market products in the market.

78BUSINESS PLAN OF A DIGITAL BUSINESS
Fig – 6. Analyzing channel effectiveness by the help of difficulty
(Source: McCabe 2019).
Value chain analysis:
The value chain analysis of LYL shows that that company would aim to create value for
all its stakeholders. First, the company would enter into procurement contract with suppliers
providing high quality skincare products, apparel and food products of organic origin (violet
arrow). The suppliers would provide the company with high quality products (blue arrow). The
company would offer these high quality products to customers, thus ensuring value addition to
the latter. The company would earn high revenue (red arrow) from sale of high quality products
which would enable it to pay high returns of investments (green arrow). Thus, the company
would be able to create value for the investors by paying them high amount of dividends and
returns on investments, attracting more investments (brown arrows). Thirdly, the company would

79BUSINESS PLAN OF A DIGITAL BUSINESS
also be able to give its employees and managers high salaries owing to the high profits it would
earn (orge arrow). Thirdly, LYL would be able to make timely payments to suppliers owing to
high revenue generation. Fourthly, the company would also be able to pay high taxes to the
Government of Kuwait owing to its high revenue generation (black arrow). Lastly, since the
company would be marketing organic products, the products would emit low amount of wastes,
thus benefitting the environment. Thus, it can be inferred from the discussion that LYL would
cause value creation using this value chain which would protect the interests of all the
stakeholders.

80BUSINESS PLAN OF A DIGITAL BUSINESS
LYL
Suppliers
Customers (both traditional and
digital business platforms)
Investors
Governments Management and
employees
Figure 19. Value chain analysis chart
(Source: Author)
Credit Risk modelling:
Credit risk refers to the risk of not receiving the amount due from debtors. Business
organisations in order to boost their sales and enable their business-business customers order

81BUSINESS PLAN OF A DIGITAL BUSINESS
bulk of products, often sell goods on credit making the latter a debtor. The amount received from
debtors for sale of goods are added to calculate the sales figures. Similarly, sundry debtors are
current assets to the company while bad debts which companies suffer for their debtors’ inability
to pay the debt are losses. The companies like LYL in order to encourage their distributors
purchase bulk on credit. This risk is limited to the traditional business. The company according
to the credit risk modelling would suffer from two risks. The first risk is the probability of
default which means the company may suffer risk limited to the interests due to financial crises
of the debtor. The second category of credit risks according to the model is loss given default.
The term refers to the total loss which the companies like LYL would suffer if the loan is not
paid. LYL in order to minimise credit risks should ascertain the financial stability of the
distributors before selling them products on credit.
Operational risk model:
Operational risk model is the model which takes into account the risk companies like
LYL would face owing failure in operational activities. The operational activities refers to
acquisition of man, material, labour and financial capital for production of goods. Operational
risks can take place due to changes in the market which leads to shortage in supply of materials
or makes acquisition of land for business process expansion unavailable.
Quality Risk models:
Quality risks refers to risks which companies suffer due to poor quality of raw materials
which in turn result in production of finished products with low quality. The quality risks attract
loss of revenue and market risks. The quality risk model should encompass all the different areas
of Love Yourself Limited in order to ensure efficient risk management. The procurement
manager of LYL should ensure that the company receives high quality organic products from the

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suppliers. The procurement contracts LYL enters with the suppliers must mention the quality
parameters which they have to comply with while supplying the products. The quality risk
management model of LYL should mention the tools and parameters which have to be
considered while measuring quality parameters. The model should also point out that risk
reporting procedure and the management strategies. The model should also have scope for
monitoring, reviewing and adapting the risk model according the changing situations.
Market risk models:
Market risks models are models which companies like LYL prepare to assess the fall in
returns they face on fair value. These models consider an estimated time during which the market
will show bearish trend as well as the amount which they may lose during the period. Marketing
risks models take into account historical figures and trends, assumptions regarding factors which
might aggravate the risks and external environmental changes.
Conversion risk models:
Conversion risk model takes into account factors which comes into play while converting
a potential customers to an existing customers. The risks which are associated to conversion risks
are market movements having negative impact on the company, breakdown in machinery and
even intrdocution of new products by competitors. LYL in order to counteract this risk should
use segmentation, branding and demand forecasting accurately. The company should promote its
brands aggressively in the market to attract huge customers. The company should also use
appropriate segmentation strategy on which it would base its branding strategy.

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Segmentation model:
The segmentation model of LYL should take into account the needs of the customers.
The segmentation model should at first consider the geographical segmentation of the market.
The products of the company should take into account the cultural and climatic conditions of the
country. The next ground of segmentation would be economic in nature. The company would
target the middle and upper class customers to offer its products.
Branding models:
The branding model of LYL should follow its product line. The branding model should
consist of skincare products branding, apparel branding and food products. The branding model
would target the upper class customers.
Demand Forecast model:
The demand forecast model of LYL would take into account the sales report received
from the marketing team. The marketing manager would present the sales report showing the
orders received and the orders likely to be received for a particular period. The procurement
department should estimate the demand for the products and place orders for products
accordingly.
Fraud model:
The fraud model of LYL should aim to reduce the occurrences of fraud. The employee
communications should be rooted using the formally communication channels. This would
enable the company to track all the communication and track any fraud communication.
Similarly, the usage of data should be monitored by the management through an IT policy.

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Fidelity Models:
LYL should retain fidelity of the employees using continuous training and employee
development programmes. The company would survey its employees to know their grievances.
The HR department should incorporate the employee feedback in its future HR policies to retain
employees.
Organisation of the company (current and new):
LYL Current Organizational Structure
The current organizational structure of the company is that of a traditional retail sales
organization. The entire organization is headed by a sales director, who looks after directing
various departments of the company, namely sales, distribution, promotion and logistics (Ulaga
and Loveland 2014). The sales department of the organization is further headed by the sales
supervisor, according to the visions of the sales director. The job of the sales supervisor is to
supervise and brief the sales team on the sales objectives, goals and targets of the organization
(Jaramillo, Bande and Varela 2015). In his team, numerous sales engineer and sales
representatives work in a collaborative manner to realize the objectives of the sales team (Chen,
Wang and Jiang 2016). Sales engineers are personnel who possess a high technical and practical
knowledge about sales and the market in which the organization does business in, as well as the
products which the organization sells. The job of these sales engineers are to present suitable
ways of communicating the uses and advantages of the products of the organization to the
potential and existing customers of the organization, and help them clarify their doubts regarding
any aspect of a product or the organization itself. Their job also includes planning and modifying
the organic products of the organization according to the feedback and data which they used to
collect from the target market (Reunanen et al. 2017). Sales representatives on the other hand are

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tasked with selling the products. These mostly included the finished products of the organization,
and not the customized ones. These representatives have the duty of usually travelling away from
their premises to reach out to potential clients and sell their products (Fecker and DiMeo 2014).
Some of them also had to represent the organization in events such as exhibitions and fairs.
In the distribution department of the organization, the head of the department used to be
the distribution manager, who directly manage and direct the department according to the orders
received by the sales director (Bolshakov and Chincarini 2018). In accordance to that, key
employees in his team such as the distribution executive and other staffs work together to
achieve the distribution goals of the organization. The primary task of a distribution executive is
to oversee transportation, keep tracks of the inventory, contact retailers and note their
requirements, approving and reviewing purchases, keeping tracks of the freight which is being
shipped to the market, look after warehouse and storage operations, visiting retailers to
demonstrate on the product that is being sold, and also negotiating contracts and costs. These
executives are basically tasked with looking after the technicalities of the distribution processes
of the organic products which the organization sells. On the other hand, the other staffs in the
distribution department are tasked with realizing the plans of the distribution manager and
executives. These staffs had to regularly update the inventory, and also transport the materials
that required to reach the target market. These personnel had to deliver the products of the
organization into the hands of the retailers from time to time, alongside having to do other work
such as maintaining the safety of the goods during transportation and ensuring timely distribution
of products into the target market.
The business department of the organization is headed by the business manager, who is
informed about the financial goals of the organization. The role of the business manager is to

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train new employees, evaluate the performance of the employees, and monitor the progress of the
organization in terms of finance and productivity. With all of this data, the main purpose of a
business manager is to check whether the organization is on tracks to meet its financial and
production goals (Dougherty et al. 2017). Under the business manager, the key employees are
business assistants and business representatives. Business assistants are basically tasked with
helping the business manager out with several tasks which used to get too much for the business
manager himself to look after all on his own. Since a business manager has a lot of
responsibilities, and most of them being urgent, being omnipresent is obviously not a possible
recommendation. Hence, a business assistant helps him out with tasks like hiring, evaluating,
keeping records of financial data, amongst many other possible tasks (Ali et al. 2017). The other
key employees in this department are the business representatives. Sales representatives are
employees who aim at selling the organization’s products to the existing customers of the
organization. However, business representatives are tasked with creating new business
opportunities for the organization. These business representatives are highly knowledgeable on
the product which the organization sells, and holds formal meetings with potential clients to
convince them to adopt their products (Warning and Weber 2018). In the case of LYL, business
representatives primarily hold meetings and conferences with potential retailers and departmental
stores to convince them to sell purchase their products to sell them to the customers. Apart from
this, business representatives are sometimes also required to meet advertisers and negotiate or
brief them about the product which the organization wishes to advertise.
The promotions department is headed by the promotion supervisor, who works under the
direct instructions of the sales director. The way in which a particular product or the organization
as a whole is to be promoted, is briefed by the sales director, and outlined by the promotion

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supervisor, to direct and supervise the promotion executive and other staffs in the promotions
department accordingly (Smith, Wallace and Jordan 2016). Promotion executives work towards
realising the visions of the promotion supervisors. They create plans for using the various
promotional tools in the market, such as coupons, discounts and samples to boost the sales of the
organization (Pak 2018). Under the promotion executive are the staffs who get the task done as
asked for by the executive.
The logistics department is led by the logistic supervisors, who supervise the numerous
logistic staffs to ensure that the equipment used to do the business in the organization is upto the
mark and sufficient enough. They are tasked with ensuring proper operational and distributional
infrastructure for the business to operate without hindrances (Morales 2016). Examples include
looking after the storage equipment, the containers and safety packages which would ensure the
safe transportation of goods, and also looking after the vehicles and their fuel levels before
transportation of goods.
Part from the traditional retail sales structure, the organization also has an operational
department, which is headed by the chief executive officer of the company. The chief executive
officer is the highest ranked official in the company. He is responsible for making the most
important operational decisions in the organization, along with making corporate decisions of the
company, set the principles regarding the direction of the organization, communicate between
the board of directors and the operations, and manage the resources of the company, while
permitting grants for the purchase of assets and resources. The organization also has an
operational manager, who works under the orders and directions of the CEO, with the help of the
operations staffs working under him. Apart from that, the organization has an accounts and
finance department who keep records of the inflow and outflow of revenue and expenditures, and

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is headed by an accounts manager who further directs the organization in terms of financial
resources, and acts like a dam to ensure that expenditures are controlled and comply with the
budget of the organization. This is the finance hub of the organization and play the most
important part in stabilizing the financial resources of the organization.
An IT department also works separately whose main purpose is to ensure that the
organization does not lack the necessary digitalization which is required in order to operate or
engage with the customers. These technicians ensure that the servers in the organization are
always optimized for free flow of work, and are also responsible for the breakdown of any IT
related aspect in the organization (Zardini, Ricciardi and Rossignoli 2015). The human resource
department in the organization is a partially operational department, and perhaps the smallest of
all the above discussed departments existing in the organization as of now. This is led by a
Human Resource (HR) manager, who is tasked with the hiring and managing of every personnel
who is a part of the workforce of the organization, deciding on their job roles and
responsibilities. The organization also has other managing directors apart from the ones
discussed in the sales department, devoted towards various segments existing within the
operations of the company. Additionally, there is a separate team for cooking, with the head
chefs and quality control executives leading the department. This department undertakes and
looks after the cooked meal services which LYL provides. This, as a whole is the current
organization of the company through which it functions.
LYL New Organizational Structure
It should be noted that the organization is entering into a new phase of operation in the
recent times, with more focus on the digitalization of its services. Since the approach of doing
business is changing for the company, the organizational structure of the company should change

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as well, which has perhaps begun to take place within the organization already. Firstly, it needs a
separate department for quality control. This is because since the digitalization of the services of
the company has started to take place, it is viable that demand would be high in the near future,
pertaining to the easy availability of the service, and the expansion of the business Remes et al.
2018). Very possibly, with the growing demand, quality control and cooking would not be
possible to undertake for one single team. Furthermore, brand image matters the most to any
business when it is in its growing stages (Dao 2017). It should be ensured that a separate team
particularly focusing on quality is established in order to deliver the best quality of food and
other products to its customers. The IT department should increase its workforce by at least
fifteen personnel in order to suffice the new and increased internet traffic that the company’s
servers would be bearing after the digitalization of its services. Special teams will be required for
SEO and website design and optimization. To add to these factors, other teams will be needed to
join the organization for specific purposes.
The mealbox service which the company is aiming at accomplishing would require at
least the recruitment of five more people, to create a team which would be solely dedicated
towards looking after this aspect of the service. This aspect requires the daily update of available
meals, every day. Hence, it is important to note here that the company hires people who would
be able to regularly coordinate with the cooking department about the menu of each day and for
the entire week, and also upload them on time and update them when necessary, to let the
customers choose from the available menu. Also, more cooks will be required in the organization
since the demand is most likely to go high as a result of the digitalization of the business. A
delivery team also has to be established in order to ensure that the products reach out to the

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customers on demand. Failing to establish the same would only mean that the digitalization
would prove to be ineffective in serving its purpose.
A digital marketing team would also be required for the purpose of effective
digitalization of the organization. It must be noted that the target audience segment of the
organization as a result of the digitalization of its services will be slightly modified. To be more
precise, it would be more inclined towards targeting the people who do access online services
and specifically seek food services online. For that matter, it should be noted that a major portion
of this segment is heavily reliant on the internet as a part of their everyday needs. Therefore,
digital marketing experts should be hired, to create a completely separate department in the
organization. The goal of this department is to market the digital services of the organization
effectively to its target audiences (Chaffey and Ellis-Chadwick 2019).
The company also ensures a diet and nutrition track through its digital services. This
service would require a new team of nutritional experts to looks after the calorie and nutritive
values of each of the meals which the customer is ordering from the organization. This is
required so that the information does not prove to be misleading to the customers and can
precisely inform them about the health benefits which they have acquired from their purchases
from the organization. The main way in which this could be achieved is by ensuring that
sufficient number of nutrition experts are present in the organization who can correctly outline
the nutritive values of each meal. This could be either done by the establishment of a completely
different department for the nutrition experts or by simply establish a team of nutrition experts
who would be required to work in collaboration with the cooking department. The organization
would also need new suppliers to meet its increasing demand, however, that cannot be included
in the company’s internal organization. What can be included is another team for market

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research, to facilitate the decision making processes of expanding the business (Suzuki and
Okamuro 2018). It is no mystery that the company would be looking forward to including new
areas under its market reach, and has already begun to do so. Hence, a team of market
researchers to analyse and evaluate the market of various areas, should be recruited in the
organization in order to ensure that the company makes the right decisions while choosing new
areas to serve, and what particular strategies to use in order to localize its products and services
to attract the most number of customers.
Channels:
Current Traditional Supply Channel
The company has its USP in the word ‘organic’. Therefore, there is no wonder why most
of its suppliers are devoted to supplying raw organic materials. However, considering the fact
that the company is based in Kuwait, most of the raw materials that the company requires for the
business, comes from abroad. USA and UK supposedly have the most important suppliers for
this organization, since they are rich in organic materials. The company has a chain of suppliers
based in these countries who have been partnering with the company for a considerably long
time, since the company has been doing business with quality organic materials ever since it
came its inception (Araujo, Dubois and Gadde 2019). The company has a wide range of products
which it sells in the market, namely body lotions, organic food and fruits, and organic healthcare
products. These wide range of products indicate that the company has segmented its suppliers in
the west according to the requirements of the company, based on the product requirements
(Walton, Handfield and Melnyk 2018). UK is known for having the best organic materials which
are required to manufacture lotions and healthcare products, while the US is well known for
supplying raw materials for organic food and a leading producer of organic fruits and vegetables.

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African suppliers should also be considered while mentioning the main suppliers of this
company, as it is a well known fact that the Savannas do produce a lot of rich organic material.
The pampas of the South-West are also considered to be one of the potential suppliers, since the
region is rich in organic materials. Since a significant part of the company is based in the United
Kingdom, the possibility of Austria and Spain, who are one of the leading producers of organic
food in the world, providing raw organic materials to the company, perhaps forming a chain of
supply in the European regions, is not a far fetched idea. However, since not a lot is known about
the company on the internet and reliable sources to justify their supply chain are few, these
assumptions are only possibilities that could be true or be potential supply channels in the near
future. Apart from the foreign suppliers, the local suppliers are also there for the company, since
the company does not only need organic materials for the survival of its business (Pan 2019) .
For instance, UK is the one of the leading producers of oil and electrical appliances, which could
be beneficial for the company’s UK branch since it could get those vital supplies for the
operations and manufacturing procedures of its business at a cheaper cost. In that case, the
company would be signing contracts with suppliers based in the UK to avail raw materials from
them. Similarly, no matter where a branch of the company is based in, there has to be something
which the area produces in bulk (Ernst and Kim 2012), and is beneficial for the manufacturing
processes of the business. These local suppliers play a crucial role in the supply chain of any
company (Federico 2016).
Current Traditional Distribution Channel
The distribution chain of the company mainly falls into two parts. One is the company-
owned retail outlets and franchises, and the other category is the external retail outlets. Once
products are manufactured, they are shipped most immediately to the company’s own retail

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outlets first. In this channel, the company first manufactures the product, package it, and then
directly ships it to one of its own retail outlets, using mostly its own logistics. The company has
been expanding in the recent years, and hence, has established its retail outlets in many countries.
The most number of outlets are very understandably based in Kuwait, and in the United
Kingdom. Instances of shipping the products abroad is also a high possibility for the company, in
places where retail stores exist but the manufacturing of particular products are not undertaken
by the company.
The process of channeling its products to reach out to the external franchises and retail
stores is a much complex one. Here, several contracts have to be signed with the owners of the
retail stores, to get their products sold in the market (Scott 2015). These external retail stores are
the main sellers of the products since the company is in its growing stages, and has not been able
to establish its own retail outlets in every part of the world. The main thing to consider here is the
fact that using these external stores not only prove to be cost effective for the company, since
maintenance costs and other costs which come under the calculation of total cost of running a
retail outlet are exempted. Dealers and distribution managers sign contracts with these external
retail stores, and products are served to them directly by the company or by a third party
distribution middleman. As discussed earlier, the product range of the company is pretty vast,
and hence, a lot of retail outlets have to be taken into the account for the distribution of the
company’s products. These stores could be either supermarkets or local shops. Local shops, like
local suppliers, play a crucial part in the company’s distribution channel. . This is because of the
density of these local stores per square area. For every 100 miles, at least a hundred small local
stores could be found, unlike big supermarkets which cannot be found as frequently. Therefore,
in many areas. These local stores prove to be a vital node in the distribution channel of the

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company (Westbrook 2013), since in many areas where it does business in, namely Kuwait,
majority of sales happen through these local retail stores rather than supermarkets.
This is the distribution channel which involves the most number of exports, since the company
aims at selling products even in the places where it has not set up its establishments yet. The
choices and decisions regarding the retail outlets to sell the products, are undertaken and
coordinated by the distribution manager of the company.
E-Commerce Channels
The company has recently shifted its gears from focusing on the traditional retail sales
system to the digitalization of its services, which has made sure that its demand increases. It
should be noted that with the changing focus and systems in the way in which the company does
business, channels of supplies and distributions also have to modify. However, in this case, the
supply channels do not show indications of changing itself in any way. This is because the
company does business through its USP which is selling organic and healthy products to its
consumers. As discussed earlier, the company has a specific set of chains from which it receives
its requirements of organic materials. The quality which the company aims at maintaining in its
products mean that it does not have the option to try out local suppliers for organic needs, and
has to rely on its old time suppliers. However, in the areas where the digitalization of its business
is creating new demands for itself, the company can try the local suppliers for the procurement of
raw materials which are not of critical importance to the company’s business.
E-Commerce Distribution Channels
The first and foremost platform that would come to mind while thinking of digital
platforms to sell the company’s goods, would be e-commerce websites like Amazon (Newcombe
et al. 2015). There are numerous e-commerce websites on the internet however, and most of

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them are specific to delivering one particular area or country, like Flipkart delivers to India.
Distribution managers and executives have the responsibility of dealing with the representatives
and executives of these e-commerce websites to ensure that their products get sold through these
digital platforms. Contracts are required to be signed and products have to be examined
alongside other formal procedures, before the website displays the company’s product as an item
to be sold to the customers. This is a commendable way of doing business since the company has
recently shifted its focus on the digital form of doing business. This is because it helps the
company reach out to customers all over the world, without having to set themselves up in all the
countries. The company only needs to deliver its products into the warehouses of the e-
commerce businesses, and the rest of the job of selling the products in the country will be done
by the e-commerce websites themselves. The most prominent of them is Amazon, since it has the
highest reach in the world, and the most used e-commerce website in the world.
Another platform through which the company establishes a channel for distributing its
products, is its own official website. The website of the company promises a range of products,
especially healthy cooked meals, organic foods and healthcare products, to be sold to the
customers online. This is perhaps the simplest channel of distribution discussed so far, and is the
most cost effective as well (Abeysekera 2017). However, it should be noted that this channel of
distribution if products, is limited only to specific areas, and will remain to be so, since the
company is currently in its growing phases, and has not expanded its own online services enough
to reach out to a major part of the world population. The main of these chains exist in Kuwait
and in the United Kingdom.
The company has its own delivery teams who deliver the products of the company to the
customers who order for it online. This is a sub-division of the chain which was discussed prior

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to this and cannot be considered as a separate distribution channel altogether (Ehie and Gilliland
2016), as the products which are booked online on the company’s own website, are delivered
only via the delivery team of the company itself. These delivery teams play a vital part in the
distribution channel however, since they are responsible for directly reaching out to the
customers to sell them the products of the company, mainly cooked meals.
Products/Divisions of the company:
Division 1 (Shower gels and skin care products)
This division of the product divisions of the company involves products such as shower
gels, and creams. It can be further divided into products such as men’s shower gels, women’s
shower gels, shampoos, and skin care products such as lotions and shaving creams. Each of these
products ensure organic value in them, making them unique in the market, and thereby,
appealing to the audiences. The shower gels for men can be bought by the customer online on the
company’s official website, similarly to the skin care products such as the lotions or the the
shaving creams. The women’s shower gels have been low on demand however, and are rarely
sold on the company’s official website. These products, along with the shampoos, are sold
mainly in the retail outlets of the company, or the external retail outlets like the supermarkets and
local shops. These skin care products have been one of the most vital and integral products to the
company, since it preaches of health and promotes organic products. This division of the
products division of the company is likely to witness a high demand in the near future, pertaining
to the fact that health conscious youths are emerging in numbers in the recent times.
Division 2 (Women’s FMCG’s)
This is the division in the company’s product divisions which of the lowest demand in the
market. The products include lipsticks, fragrances, and creams for women among the most

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notable products in the division. It is important to note that the products that the company sells in
this division have a lot of existing and well established competitors in the market. Therefore,
LYL being a relatively new company, struggling to find a fair market share and expanding its
business, is finding it tough to keep with the competition related to these products in the market.
Lakme, L’oreal and Sunsilk lead in the competition of women’s FMCG’s and are the industry
giants in this field. Therefore, LYL has not been able to make a mark and the demand for this
division of the company’s products remains low. Furthermore, since the company promises
organic materials in its products for a healthy living, its lipsticks do not comply with that, since it
is impossible to manufacture organic lipsticks without the use of chemicals. Therefore, it has not
been able to market itself effectively either.
Division 3 (Apparel’s)
This segment of the product divisions of the company too, does not show indications of a
high global market share anytime in the near future. This segment can be further divided into
three segments, namely men’s apparel, women’s apparel and children’s apparel. Although the
company sells this division of its products divisions at a reasonably low price, market share
remains low pertaining to the fact that the company still has not reached out to the majority of
the world population yet, and has not attempted at marketing itself effectively with respect to this
division either. The products however, are in a range of varieties, and are attractive as well. The
one factor which plays a part in ensuring that these apparels do have a reason to be bought by the
customers, is the fact that they are manufactured by using one of the best quality materials, and
do not contain harmful chemicals and colors in them. This makes the apparel suitable to wear for
kids, and comfortable to wear for adults. These products can be found in supermarkets and in

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local apparel stores. However, the sale of these products online through the company’s website is
not very frequent.
Division 4 (Food)
These are the products of the company that have the highest demand in the market
amongst the other products which the company sells. A major chunk of these are diet meals
which are cooked in accordance to nutritional values and needs, alongside organic food packages
and fruits, which are also high in demand. These products contribute to the majority of the
company’s revenue. It apparently specializes in this sector of the products divisions. The cooked
meal service which the company has recently initialized and promoted through its website, is a
benchmark in the digitalization of the company’s business. Additional USP’s that come along
with these products are diet tracks, nutritive values, and overall health altogether. The company
has been focusing on the sales of this division of the products divisions, since it has shown
indications of high market demand in the near future, as a result of the attractive USP which it
offers in the market. This is the product division which is most likely to grow multifold in terms
of sales, and is gradually becoming the identification point of the company as a whole.
The company has a range of products which can be categorized into various divisions on
the basis of the type of the product and its uses. It is evident why foods and other organic edibles
which the company sells is in so much demand in the market. The big idea which the company
markets to the customers, is perfectly reflective of this division of the products divisions in the
company. The apparel division does show indications of growth in market share in the future, as
they have a unique selling point of fabrics that are suitable for kids and comfortable and harm-
free for the skin. This is a perspective that no other apparel brand has been able to give to their

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audiences, and hence, it might be indicative of a future growth of the company’s apparels if
marketed well.
P&L structure (current):
Attached
P&L structure:
Attached

100BUSINESS PLAN OF A DIGITAL BUSINESS
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