Individual Essay: Food Junktion's E-Business Model and Impact

This essay analyzes the e-business idea of Food Junktion, a company aiming to offer food delivery services in Malaysia. The essay explores the motivation behind developing e-business ideas, focusing on factors such as multi-channel marketing, customer retention, and acquisition costs. It presents a Business Model Canvas for Food Junktion, detailing key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams. Furthermore, the essay discusses the societal and environmental benefits of Food Junktion, including its efforts to build a better food system, provide ingredient information, and reduce environmental impact through bike deliveries and partnerships with NGOs. The conclusion summarizes the advantages of digital business and the importance of analyzing requirements for effective e-commerce operations.

Individual essay

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1. Motivation factors to create new e-business ideas .................................................................1
2. Introduction to the company by creating a Business Model Canvas along with elaboration
on all the elements.......................................................................................................................3
3. How new business idea benefit society or environment ........................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Digital business undertake use of technology in order to create new business model as to
offer satisfaction to customers. It is fast and frequent way through which needs and demands of
consumers are fulfilled (Park and Mithas, 2020). Present report has been conducted on a new e-
business idea, in this a company food junktion is looking forward to offer their products and
services digitally in the marketplace of Malaysia. In this report formative discussions has been
made on motivation factors to develop new e-business ideas and business model canvas.
TASK 1
1. Motivation factors to create new e-business ideas
E-commerce business is not that much easy journey, as in this there are many challenges
associated with this that can affect profitability. However, there are number of advantage
prevailing in this business that acts as motivational factors that significantly influence individuals
to create new e-business ideas. It has been evaluated that multi channel marketing, conversion
rate, consumer retention, acquisition cost are some of the significant factors that motivate
towards taking advantage of this business mode:
Multi channel marketing:
E-commerce business significantly provide wide range of opportunities to an
organisation, as in this with the help of internet business owner can expand their marketing
efforts and can conduct their marketing activities via multiple channels (Kumar, Vatavwala and
Kumar, 2020). In order to conduct present business via e-commerce food junktion owner can
undertake use of referral marketing, Email, marketing, social media and affiliate marketing in
order to effectively broaden their reach.
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Customer retention:
It is one of the most important motivation factor in which it is essential for entity to have
significant ability to retain their customers for long period of time. In terms with present new
business, it is essential for food junktion owner to effectively maintain customer retention rate
and increase it constantly in order to generate more revenue (Toutaoui and Benlian, 2020). It has
been evaluated that in e-commerce business customer get retained due to factors like high quality
products and services, additional discounts, weekly offers, discount coupons and affordable price
rate.
It has been evaluated that due the presence of multi channel marketing and high chances
of customers retention for long period of time facilitate business owner of food junktion selected
the mode of electronic platform. It will significantly enhance revenue generations capability and
profitability in upcoming years due to the increase in number of internet users.
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2. Introduction to the company by creating a Business Model Canvas along with elaboration on
all the elements
Business Model Canvas (BMC) is the written documentation of lean start-up and
strategic management. In other words, it can be said to be the visual representation of the
different key elements of a venture. It consists of 9 main elements which depict the main
activities of the business venture. Further it has been evaluated that company is offering both
mobile application or website facility through which customer can easily place their order with
flexible login steps. In this customers are are being provided with multiple payment options, real
time tracking, Rating/Review Integration, customer care helpline, food search/ restaurant locator
page facilities. Mentioned below there is diagrammatic measure through which customers can
place their order in food junktion.
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Food Junktion is an upcoming online food delivery venture. It is making use of business
model canvas to depict the main activities, value proposition and other aspects of the business.
The BMC for Food Junktion is shown in the pictorial representation beneath:-
Illustration 1: Business Model Canvas of Food Junktion
The description of the elements of BMC is given as follows:-
Key partners: The key partners for this e-business idea will mainly include eatery
businesses that intend to collaborate with Food Junktion. Apart from this, key partners will also
include shops. Other than this, the delivery men who make the delivery of items will also be
included within partners.
Key activities: The key activities for the new food delivery e-business include partnering
with restaurant, eatery, cafe and other food outlets; hiring of delivery men; management of
customer orders; management of deliveries and payments; management of technical operation;
up-gradation of app and website and lastly, addressing the customer queries and complaints.
Key resources: The venture will maintain partnership with local restaurants, cafes and
eateries such as Keventers, Baskin Robbins, so they will be the main resource for the
organisation. Further, technology and human resources (delivery men).
Value propositions: The main aspect which will generate value for the online food
delivery venture will be no restriction order policy which means there is no minimum amount
requirement while making orders (Tan, Tan and Oh, 2020). It will provide different payment
methods like UPI, debit card, credit card, on cash, sodexo meal passes etc.
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Customer relationships: The website as well as the mobile application of Food Junktion
will provide 24*7 customer support service. Also, social media platforms (digital technology) of
this e-business will provide due assistance in maintenance of healthy and long term relationship
with the customers.
Channels: The channels for Food Junktion will mainly include the mobile application
and the organisational website which will provide instant access to the user to a wide variety of
food and beverage items. Further, digital marketing via the usage of social media platforms will
also act as an effective channel for the upcoming online food delivery business.
Customer Segments: The customer segments that will be targeted by Food Junktion
will include people who do not intend to visit eateries or restaurants or people who like to order
the food online. The customer segments will also include mobile and internet friendly individuals
as only they will be able to and be willing to purchase online food and get it delivered at their
respective homes.
Cost structure: The cost structure for the upcoming online food delivery business
include payroll expenditure for staff and delivery partners, cost of mobile app and website
development, running and maintenance, advertisement, administration, and marketing cost. The
budget of the company will be incurred in meeting all of these before mentioned expenses. The
main aim behind making this expenditure of Food Junktion would be to inflate the profit
margins.
Revenue Streams: There are several sources from which the upcoming food delivery e-
business would earn revenues. One of the main streams in this relation is acknowledged to be
delivery charges. Other streams by way of which Food Junktion will earn revenues will comprise
of advertisements and affiliate income.
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3. How new business idea benefit society or environment
It has been evaluated that there are numerous form of benefits that will be provided by
food junktion to environment or society, as it has been evaluated that business owner of
respective company aim towards building better food system for this they will ensure their long
term connection with chefs, farmland and at-home cooks in order to remove inefficiencies of
grocery stores (Hacioglu, 2020). In addition to this respective business will also provide detailed
information related to dishes ingredients that offer maximum level of internal satisfaction to
customers. Along with this, food junktion mainly offer their food services via bikes that lead
towards reducing environmental impact (Böttcher and Weking, 2020). Further this is being
evaluated that food junktion owner will also partner with NGOs such as No Kind Hungry in
order to effectively provide cancelled or returned food to children. By undertaking all these
measures into consideration it has been evaluated that present new e-business idea is offering
many significant benefit to society and environment.
CONCLUSION
As per the above mentioned report it has been concluded that, digital business offer
maximum number of advantages through which individual can expand their market reach. It will
further facilitate towards undertaking more productivity. Digital business assist entity to attract
attention of customers in a well define and effective manner by taking use of various ways.
However, in order to conduct business on e-platform it is essential for entity to analyse all the
essential requirements and needs in order to conduct their business activities in more effective
manner.
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REFERENCES
Books and Journals
Park, Y. and Mithas, S., 2020. Organized Complexity of Digital Business Strategy: A
Configurational Perspective. MIS Quarterly. 44(1).
Hacioglu, U., 2020. Digital Business Strategies in Blockchain Ecosystems. Springer
International Publishing, DOI, 10, pp.978-3.
Ahmad, M., Botzkowski, T., Klötzer, C. and Papert, M., 2020, January. Behind the Blackbox of
Digital Business Models. In Proceedings of the 53rd Hawaii International Conference on
System Sciences.
Böttcher, T.P. and Weking, J., 2020. Identifying Antecedents and Outcomes of Digital Business
Model Innovation. In ECIS.
Tan, F.T., Ondrus, J., Tan, B. and Oh, J., 2020. Digital transformation of business ecosystems:
Evidence from the Korean pop industry. Information Systems Journal.
Kumar, B., Sharma, A., Vatavwala, S. and Kumar, P., 2020. Digital mediation in business-to-
business marketing: A bibliometric analysis. Industrial Marketing Management, 85,
pp.126-140.
Li, F., 2020. The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation, 92, p.102012.
Toutaoui, J. and Benlian, A., 2020, January. The Whole is Greater than the Sum of its Parts–
Synergies between Non-Digital and Digital Business Models within Companies.
In Proceedings of the 53rd Hawaii International Conference on System Sciences.
Met, İ., Uysal, E.U., Özkaya, K.S. and Orç, E., 2020. Key Success Factors for Strategic
Management in Digital Business. In Digital Business Strategies in Blockchain
Ecosystems (pp. 283-304). Springer, Cham.
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