Feedwrap: Innovation and Entrepreneurship in Hospitality and Tourism

This report provides a comprehensive analysis of Feedwrap, an innovative small to medium enterprise (SME) operating in the hospitality and tourism sector. Feedwrap focuses on providing an online platform for food and beverage ordering and delivery, aiming to bridge the gap between customers, logistics firms, and hospitality providers. The report details the company's innovative aspects, including its use of automation and artificial intelligence for order processing and delivery optimization. It outlines Feedwrap's vision, mission, and core values, emphasizing reliability, honesty, efficiency, consistency, and commitment to customer satisfaction. The report further examines the company's sources of funding, competitive advantages, and long-term objectives, including global expansion, diversification into new services like room bookings, and greening the supply chain. The analysis highlights Feedwrap's development and sustainability strategies, including its focus on market research, cost leadership, and partnerships within the tourism and hospitality industry. The report concludes by emphasizing the importance of customer satisfaction and sustainable practices for Feedwrap's continued success and growth within the competitive online market.

Running Head: INNOVATION AND ENTREPRENEURSHIP 1
Innovation and Entrepreneurship
Name
Institution

Innovation and Entrepreneurship in Hospitality and Tourism 2
Innovation and Entrepreneurship in Hospitality and Tourism
Introduction
Name of the enterprise: FEEDWRAP
The hospitality and tourism industry exists to deal with customer satisfaction and it
focuses on meeting the leisure needs of customers. The sector has over time grown and
diversified to include segments like food and beverages, events planning, tourism and travel,
lodging and accommodation services, and the recreation sector characterized by enjoyment and
relaxation. Its success depends on the customers’ disposable income, leisure time availability and
customer satisfaction that attracts more customers through referrals and repeat customers. The
Small Medium Enterprise developed is in the food and beverages segment intending to expand
even further to other segments in the hospitality sector. The startup focuses on providing an
avenue through which customers can order their meals and drinks using the online platform and
then coordinates all the logistical requirements that ensure those deliveries are made to the
respective customers as quickly as possible.
I conceptualized this idea of starting this enterprise in 2017 as an online-based link
between tourism and hospitality sector players, logistics firms and customers. The name
Feedwrap simply means food and drinks wrapped for delivery to customers at different locations.
All this was achieved through a seamless integration of all links for free and faster flow of
information and feedback.

Innovation and Entrepreneurship in Hospitality and Tourism 3
Innovative Aspect
It is an innovative idea that stands out from competitors since has brought together a mix
of current technological advancements and the dynamics of human preferences. The system
supports automation of well-organized First In First Out system (FIFO) of order processing and
dispatch while also incorporating artificial intelligence smart system for decision making on how
the whole system operates to enhance efficiency in the processes. The system is also able to
automatically locate customers’ locations, group them according to their proximity and sort their
orders as a single unit for easy routing and delivery.
Current value of business
At the initial stages, the business was worth a million but has rapidly expanded with the
increase in the number of customers. Annual turnover of one hundred million has seen the
business grow to a value of five hundred million with the goal of being the most profitable
venture worth billions in the next five years.
Vision, Mission and Business Values
The vision of the business is to be the most trusted, reliable and affordable online
hospitality and tourism store that offers quality and the best services to customers. It is this
vision that guides daily operations and acts as a reference for all employees to maintain the initial
spirit of the business.
The mission of the business is to be able to bridge the gap that exists in the tourism and
hospitality industry by providing a user-friendly platform that will link all the sector players and
provide a common arena for customers to access services at the lowest cost possible.

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In any business, values are of great importance when a working environment of
uniformity is to be created. These values are the guiding principles that help people understand
and differentiate between right and wrong, what is expected and that which is not expected
(Gorenak & Košir, 2012). These principles also dictate behaviour and code of conduct. Business
core values help determine whether the business is on the right path to fulfil their goals (Zaharia,
Stancu, Stoian, & Diaconu, 2010). The guiding values of this enterprise are reliability, honesty,
efficiency, consistency and commitment. Reliability in meeting customer needs as and when
demanded without any delay. Honesty in business transactions without any hidden motives not
known to the business support system. Efficiency in doing business to reduce operational costs
while maintaining high-quality standards of service delivery. Consistency in maintaining high
service quality and levels of operations at all times in the course of doing business. Commitment
to customer satisfaction and delivery of the best.
Source of Funds
At the initial stages, the business was funded by individual savings and donations from
friends and family members who saw it as a viable dream that would bridge that gap that exists
in the market, especially in the hospitality sector. Interested partners also contributed their share
to have a stake in the enterprise. The business was started with one million which facilitated
further market research, planning and consolidation of resources needed to start the business.
Over time, there was a need to expand and develop the system more to make it competitive in the
market. The need for more funds for investment drove the management and owners to apply for
a bank loan worth five million for setting up a website and developing a mobile application
available for download from the play store. Since its inception, the business has been able to
generate income that is invested back to support the operations and cover costs associated with

Innovation and Entrepreneurship in Hospitality and Tourism 5
running a Small Medium Enterprise. Over the years, the business has grown rapidly and placed
itself in the market as the most affordable foodstuffs and drinks delivery platform, hence
attracting a large number of customers.
Competitive Advantage
The enterprise has a competitive advantage over other market competitors since it is an
online platform that gives it a wide reach to prospective customers. It also uses the resources of
other established players hence do not require huge capital investment to operate. It also enjoys
huge support from hotels and logistics firms that see it as a platform for them to market their
products and services hence an increase in their sales.
Being an online enterprise, it is bound to succeed due to the current market trends that are
leaning towards conducting of business over the internet on online platforms as opposed to
engaging in physical exchange of goods, services and transactions. Online businesses have
grown to overcome the challenges of distance and geographical boundaries (Cheema & Papatla,
2010). It has also been able to incorporate different languages in the system and customers using
either the web version or the mobile application can choose the language they understand best
for a personalized experience. The internet is also a perfect marketing tool for many businesses
that want to expand their market base and reach (Sanje & Senol, 2012). Additionally, the
enterprise has been able to create international links that will enable it to enter new markets
across international borders. These linkages are potential partnerships and avenues to attract
more investors. The links are intended to provide the business with a wide reach to large markets
in both developed and developing countries that have not yet been explored by the competitors
who have concentrated their efforts in the already developed countries with large economies.

Innovation and Entrepreneurship in Hospitality and Tourism 6
Corporate social responsibility also gives the enterprise a competitive advantage as it
gains the trust and confidence of those it serves. Businesses give back to their customers by
engaging in activities that benefit people within a given area (Zahari et al, 2010). It does this by
providing useful social amenities, infrastructure like helping equip schools and hospitals, and
sponsoring activities aimed at achieving a better environment for its customers through
environmental conservation and helping the less fortunate in the society. It also acts as a
marketing strategy that enables the enterprise to be known to the members of the public through
its activities and branding of donations given (Maignan & Ferrell, 2004)
Long Term Objectives
The business has a goal of being able to expand globally and engage across the borders of
the country of origin. It seeks to achieve this by investing in creating more partnerships with
international hoteliers and hospitality players. The enterprise also aims at having its fleet to be
able to manage its logistics that will bring in more income and boost profitability. Managing its
transportation fleet consisting of vans, motorbikes and bicycles to be used in making deliveries.
By achieving this, it will be able to create employment opportunities to more citizens of the
respective countries within which it operates. It will also allow the enterprise to diversify and
venture into new sectors hence minimizing the risk of total loss in case one sector is not
operating optimally.
The enterprise also has a goal of being able to include more hospitality services within its
platform like including an option of room bookings in different hotels. It also seeks to be able to
provide information relating to available family and corporate destinations that are ideal for team
building, bonding, the honeymoon for newlyweds, leisure, weekend getaway and for enjoying

Innovation and Entrepreneurship in Hospitality and Tourism 7
the holiday. Having a robust platform that provides all this information will give visitors enough
information for them to make an informed and relevant decision based on facts and accurate
information.
With the influx in travel startups in recent years, it is a lucrative venture that the
enterprise seeks to invest in the coming years to join the steady market of readily available
travellers who are constantly moving from one destination to another throughout the year. It is a
sector that will ensure a continuous stream of income for the business while also trying to cope
with the competition. Through the partnership with other investors already in the travel business,
the enterprise will be able to work with such establishments to ensure distribution of loss risk and
being able to acquire knowledge and skills that will enable it to stand alone in future after
learning the way things are done to be successful (Tuten & Urban, 2001). Partnerships are
crucial for any business to be successful.
The enterprise will also be able to expand its operations to include the delivery of
groceries and vegetables from supermarkets and grocery stores to customers who place their
orders and give specifications of what they require. It is a network that is expected to bring
onboard both the retail and wholesale groceries and cereals vendors hence increasing the number
of market partners who support the business and its goals.
Greening the supply chain is of priority in doing business hence it is among the
objectives that are to be achieved. It is the integration of environmentally friendly practices into
supply chain activities and management (Chin, Tat, & Sulaiman, 2015). The business seeks to
achieve this by using reusable packaging material that is not of health and environmental risk. It
is an initiative that will see the enterprise engage all its partners in adopting materials and

Innovation and Entrepreneurship in Hospitality and Tourism 8
practices that help conserve the environment to reduce waste by promoting recycling and reuse
of raw materials. By doing this, it shall have established a sustainable supply chain that is
responsive to both environmental and customers’ needs (Fortes, 2009)
Development and Sustainability
The development process begins with proper market research and identification of
existing gaps and market needs and matching them with market trends. In this case, there is a
need to have a user-friendly platform that can be accessed from anywhere by customers who
wish to purchase food and drinks and would like their purchases delivered to them as opposed to
visiting a restaurant. It seeks to satisfy those consumers who prefer to have their drinks and food
at the comfort of their homes. Being part of the tourism and hospitality industry, customer
satisfaction is of focus in daily operations. As a Small Medium Enterprise based online, the
platform is user-friendly with both mobile and web-based versions for efficiency and reliability.
To be ahead of the competition, cost leadership strategy will be applied to increase profits by
reducing the cost of services and charging average market prices that will attract more traffic to
the platform and a boost in income (Kurt & Zehir, 2016). The strategy will be successful due to a
very efficient logistics channel created by partners brought on board to facilitate deliveries. It is
also supported by the fact that no inventory costs are being incurred since there are no physical
warehouses that will attract costs. Every operation is based online on a well-set platform.
Using the focus strategy that many competitors have ignored, the enterprise seeks to
target particular niche markets including those working in the office or working from home that
is often unable to walk to a restaurant to have their meals due to overwhelming workloads. Their
needs will be met at their comfort at a relatively lower cost. Students at the colleges are also

Innovation and Entrepreneurship in Hospitality and Tourism 9
targeted and services tailored to suit their financial status as learners who are still at school.
Focus strategy will allow the management to deeply understand customers' needs and be able to
meet them in the best way possible to build strong brand loyalty among the customers (Tanwar,
2013).
Internet marketing and paid media advertising marketing strategies will be used to
introduce it to members of the public. The internet is used globally and gives a wide reach and
audience hence it is a perfect marketing tool (Charlesworth, 2011). Paid media advertising like
television and radio adverts are also useful in gaining a wide market reach to provide more
information about the services to customers and prospective new clients (Katz, 2016). Paid
referrals and rewards will also help make the enterprise known to many people.
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Fortes, J. (2009). Green supply chain management: A literature. Otago Management Graduate
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Gorenak, M., & Košir, S. (2012). The importance of organizational values for organization.
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