Business Model Report: Analyzing a Grocery App for Entrepreneurship

This report provides a comprehensive analysis of a proposed grocery app business model, focusing on the Australian market. It begins with an executive summary outlining the core idea: leveraging software to facilitate online grocery purchases. The report then delves into the entrepreneurial idea, highlighting the growing demand for gluten-free products and the widespread use of smartphones. It proposes an application that allows customers to browse, order, and receive feedback on grocery products. The business model section details how the app would enhance customer convenience and save time. The report outlines five critical assumptions, including the time constraints of employed individuals and the willingness to pay for home delivery. These assumptions are then tested through student trials and interviews with grocery store owners. The findings indicate a positive reception and a potential for increased sales and customer satisfaction. Recommendations are provided to further refine the business model, and a business model canvas is included for a visual representation of the plan. The report concludes with a summary of the key findings and insights gained from the analysis.

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Report: Applied Entrepreneurship
By (Name)
Course
Professor
University
Date

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Executive Summary
Recently, entrepreneurial culture has been widely adopted in the world. As more people are
seeing the need to start and manage their business premises, entrepreneurship can be considered
as one of the most common trends in the twenty-first century. Coming up with a functional
entrepreneurial idea is the first step in the entrepreneurship ladder. Business entrepreneurs with
good entrepreneurial ideas eventually end up setting up profitable business ventures. Therefore
the process of identifying a good business idea proves to be very critical in the process of
developing working business models. Bearing in mind the relationship between good
entrepreneurial ideas and working business ideas, this report mainly focused on devising good
entrepreneurial ideas that would promote effective business models

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Table of Contents
Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Entrepreneurial Idea and Opportunity........................................................................................................4
Business Model...........................................................................................................................................6
Critical Assumptions....................................................................................................................................7
Testing Critical Assumptions........................................................................................................................9
Recommendations.....................................................................................................................................10
Pivoted Business Model.............................................................................................................................12
Business Model Canvas.........................................................................................................................12
Bibliography...............................................................................................................................................13

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Introduction
Entrepreneurship can be defined as the process of identifying and utilizing new or
existing business gaps and turning them into profitable opportunities. Usually, entrepreneurs are
known for identifying risks and turning them into business opportunities. Therefore, for success,
entrepreneurs are required to come up with viable business ideas that would thrust their
businesses to success. The problem of identifying the business effectiveness of any good
entrepreneurial business model can be attributed to the quality of the entrepreneur's unique
business idea. Entrepreneurs with sublime novel ideas usually end up gaining significant market
shares. This project’s report attempts to thoroughly investigate the processes involved in our
business idea, opportunity and business model formulation. Our business idea to investigate how
the use of a specific software would enable customers to purchase grocery products online. Five
assumptions that made during the hypothesizing of the business model are also critically
investigated and justified. Three of methods of data collection are adopted and their adoption is
sufficiently justified. To abide by report requirements, findings, data analysis, and data
interpretation processes were also amply discussed. Based on report findings, recommendations
suggesting possible modifications that would lead to the formulation of better entrepreneurial
ideas and project models are also proposed. Lastly, a detailed, self-explanatory and
comprehensive business model is adopted to show the tabular representation of our report. A
conclusion functions as a summary for this entrepreneurial report.
Entrepreneurial Idea and Opportunity
The consumption of grocery products in Australia has been reported to rise in recent
years. According to Wu, et al., (2015, pp. 448), like the majority of other people in the world,

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many Australians prefer gluten-free food products to non-gluten-free products. The much
repulsion of non-gluten-free products results from the awareness about the long-term health
problems and allergies posed by gluten (Tang and Mullins, 2017, pp. 258). According to the
scholars, this has led to the tremendous demand for food products that come from plants. The
grocery market, therefore, has quite expanded in recent years. Despite the higher demand for
grocery products, many grocery stores have not optimally utilized this opportunity (Burden, et
al., 2015, pp. 622). According to these scholars, the use of online marketing strategies may be
used by grocery stores to streamline and eradicate inefficiencies in the grocery market. Our
report considers the scholar's suggestion and attempts to portray how the use of online strategies
may improve the performance of grocery stores. The main idea is to discuss how applications
and software make it possible for customers to reach their groceries stores without necessarily
visiting them. This idea recognizes the target markets’ profiles and preferences. Adoption of this
idea could reap the benefits in the vast grocery market in Australia.
Our business idea attempts to exploit the diverse and expansive grocery markets by the
use of the software. When formulating the entrepreneurial idea, we were not only motivated by
the large grocery market but also by the wide use of smartphones phone and computer devices.
According to Baker, et al. (2017, pp. 917), 94% of Australians have access to smartphones. We
can thus justifiably conjecture that nine out of ten Australians use smartphones. This data
statistics instigate questions in the mind of any aspiring entrepreneur. We needed to design a way
we can use to exploit such encouraging numbers. Considering that most grocery customers are
likely to have mobile phones, we saw a need to devise a business model that would suit the
business idea. An application that facilitates customer purchase, inquiry, examination, scrutiny
and feedback regarding grocery products would be of much help to the general public.

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Business Model
The grocery application would be valuable for grocery customers as it will create the time
value. For many consumers, time remains an important resource, especially in their day-to-day
activities. New trends such as e-commerce and online marketing are some of the methods that
businesses can use to award customers value for their money by reducing time-delay costs
(McMurrian and Matulich, 2016, pp. 87). Many customers rather pay extra money than a waste
of time. To save their times, food, beverage, and hospitality customers adopt technological
improvements by installing relevant time-saving apps (Rosenbaum and Wong, 2015, pp. 1863).
This application would reduce the time wasted by customers when visiting and choosing grocery
products.
Firstly, the functionality of a certain software was tested by student customers in the
university who frequently accessed grocery services. For testing purposes, the software was
installed in about ten of the university student customers' smartphones. Moreover, we engaged
the owners of a few of our local grocery stores. The software was simultaneously installed in
both groups' smartphones. Basic education about how the application functions were
communicated to the owners and the students. The students were asked to try using the
application to view nearby grocery stores, the condition of the fruits and vegetables in the
groceries, and how long the grocery stores take to respond to their queries. Users of the app were
asked to rate the performance of the application. We then collected the data from the two groups’
reactions and opinions about the application through surveys, self-administered questionnaires,
and interviews.

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Critical Assumptions
When developing our project model, we made five fundamental assumptions. Developing a
project model involves hypothesizing some ideal frameworks that function by generalizing some
conventionally held concepts (Albert, 2018, pp. 9). These assumed business frameworks
determine whether businesses end up successfully or not. Therefore, it is prudent for any new
business to consider formulating a few critical assumptions. The critical assumptions play
primary roles in helping the entrepreneur to develop effective strategies, sound decision making
and efficient planning. These assumptions function by permitting the entrepreneur to assume
some of the conditions that must hold for his business brand to end up successfully. For our
project, the following were our five critical assumptions
a. Employed people in formal and informal sectors do not have time and energy to visit
grocery stores.
b. Customers get frustrated when they realize that by the time they visit their local grocery
stores, the products they had intended to purchase are already sold-out.
c. A large proportion of customers in Australia are willing to pay an extra amount to have
grocery products delivered at their doorsteps.
d. Our proposed application will have the technical capacity to capture data in nearby
grocery stores and allow customers to place orders of their desired products.
e. Our business will be able to liaise with transporting companies such as Uber to facilitate
the delivery of goods to grocery customers.
The application would be of many benefits to employed staff and professionals. The first
critical assumptions claim that workers lack time to visit their local grocery stores. This is
because by the time employees leave their workplaces, they are so tired that they treat any other

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activity as a problem. Most employees in Australia have tight working schedules that make them
shun performing extra activities in their homesteads (Dixon, et al., 2014, pp. 465). Australian
employees find it difficult even to perform household chores and basic responsibilities such as
helping their children do their homework. Any Australian would like to spend the remaining
time of his/her days relaxing and preparing for next days' activities. The problem is even
amplified when customers arrive at grocery stores only to realize that the fruits or vegetables
they intended to buy are already sold out. Use of smartphone applications that delivers products
to their customers save the customers from time loss and potential frustrations (Xu, Peak and
Prybutok, 2015, pp. 174). Software that serves to deliver his/her favorite grocery to his/her
doorstep is likely to be welcomed with both hands. The problem is even amplified when
customers arrive at grocery stores only to realize that the fruits or vegetables they intended to
buy are already sold out.
Although we had tested the efficacy of our software using students, the application will be of
more use to workers and professionals. This is because for students, although willing, may lack
the resources to purchase the application or to frequently use the application. Designing
marketing software systems and applications is only viable when their prospective clients are
able and willing to purchase them (Robnagel, et al., 2014, pp. 37). Considering that working
employees are able and willing to purchase the application, it is viable for working customers.
Moreover, most students in Australian universities prefer snacks, beverages and animal products
such as beef to plant products (Pathak, et al., 2015, pp. 3). Students, therefore, may not purchase
grocery products frequently. Dietary behaviors by youths and adolescents show that they mostly
prefer eating sacks in all their courses (Ukegbu, et al., 2015, pp. 16). Nonetheless, due to their

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budget constraints, students have more time and they are not likely willing to pay extra cash to
have groceries at their doorsteps.
Forming liaisons with Uber would also ensure the efficiency of the application. The transport
company would guarantee timely deliveries, thus improving customer satisfaction. According to
Nuseir and Madanat (2015, pp. 78), timely delivery of products to their prospective customers
increase customer satisfaction and loyalty. After ensuring a smooth communication interface
between the grocery stores and their customers, the company would streamline its delivery by
teaming up with Uber.
Testing the Critical Assumptions
By testing the application using students, the business realized that using software serves
both the grocery stores and customers efficiently. Captured data in grocery stores were well
scrutinized and various orders were made. Moreover, the grocery stores responded to their
clients in due time. Although the response to customer feedback was slow at the early periods,
groceries soon started responding in time. Timely customer feedback usually motivates
customers and they develop an attachment to the company. Harmeling, et al., (2017, pp. 315),
suggest that customer feedback help businesses to innovate their products. Through customer
feedback, groceries would soon learn the urgent needs of the market which would help them
realize new ways to improve their products. The efficiency of the application would be seen after
it has been publicized to working-class grocery consumers.
From our all-inclusive interviews with some of the owners of grocery stores, it was
revealed that two weeks after adopting the application, the stores realized a ten percent increase
in their sales. This confirmed Erdil, (2015, pp. 197) assertions which hypothesized that

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smartphone applications and online marketing strategies are vital in improving a brand's
recognition as well as its sales. From the questionnaires filled by the ten student respondents, it
was apparent that most of them were satisfied by the application. Questionnaires are the most
effective data collection methods when the researcher needs to collect the customer's feelings
and opinions about a certain brand (Tailor, Dubrey, and Das, 2014, pp. 511). Seven of the
students gave the software a star-rating 3.5 out of 5. This meant that the application’s
performance was above average. A more comprehensive survey confirmed that the software
would not only bring profits to grocery stores but also increase the customer’s satisfaction on
grocery goods.
Recommendations
Even though the use of software and applications may result in desirable results for both
customers and grocery owners, we found out that the use of software in grocery business
presents some shortcomings. For instance, most of these applications are expensive for normal
customers. Our study recommends that easy access to such applications could only be possible of
Google Play Store and IOS Appstore buy all patent rights from application developers.
Technology pivoting should enable that Android, Windows and iOs users can access the
application. Technology pivoting aims at reaching new markets that had not been previously
exploited. Terho, et al., (2015, pp. 555) assert that technological pivoting is most useful for
software startups. This would enable them to attract more customers in their early ages. In a
nutshell, customers should be getting applications free of charge.
Secondly, our report recommends improvements in existing applications such that they
can tell the distances and likely time to be taken by the customer to reach their preferred
destination areas. This is product pivoting. Product pivoting is essential leads to the invention of

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new features that aim at satisfying the demanding market (Simonson, 2014, pp. 300). The
software in the grocery business should approximate distances and time between customers and
grocery stores.

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Pivoted Business Model
After post-testing and refining the business model, a refined Business Model Canvas is presented
below.
Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships
Our Key Partners are Uber and Android.
Android stands as our main key supplier.
The key resources we get from Uber are
efficient transport services to clients. For
Android, they provide us with Patent rights
While Uber’s main activity is transporting
people and goods from one section to
another, Android is a telecommunication
operating system which provides an
interface where applications can function.
MOTIVATIONS FOR PARTNERSHIPS:
Our partnership aims at economizing and
optimizing the available products.
Reduction of risk and uncertainty that
results between customer and businesses.
We have acquired relevant resources from
our partners that would foster our activities.
Increased custsomer bases are expected to be
attained due to our company’s healthy
relationships with its partners.
Our value propositions demand innovative
activities. Our major distribution channel is
through Android’s Google Playstore? We
maintain healthy working relationships with
our customers. Our revenue is collected by
Google. Moreover, we collect our revenue
from our clients through sales. We sell our
product at friendly prices so as to achieve aa
wider market. In the near future, we aim to
make our application free in Google
PlayStore.
CATEGORIES:
Production is frequently Pivoted. Our
management works tirelessly to solve
problems in the markets. Moreover,
management and client related problems are
well managed by the top management.
Our business conserves the value of time to
our customers. We help customers save time
while traveling from their homes to grocery
stores. An application is available for all
customers who would wish to have their
groceries at their door-steps any time they
wish. We also value reducing customer
frustration that may arise when customers
miss their intended grocery products from
market stores.
CHARACTERISTICS: Our basic
characteristics are:
Uniqueness, high performance, “Getting the
Job Done”, Proper Designs, Marketability
of our brand, Price, Cost Reduced
operations and convenient accessibility. Our
products are also very usable and relevant to
suit the demanding market's conditions
We witness a very healthy relationship with
our clients. Our customers are very proud of
the products we offer at the markets.
Although some customers complain of our
charging prices, we can confirm that their
relationship to our business is healthy and
functional. We target to even further the
effectiveness of our customer relationships.
Key Resources Channels
Our value proposition greatly requires an
integrated interface where our software can
work on many mobile phones.
Our distribution channels, too, require to be
diversified. Both our customer relations and
revenue streams are currently working
efficiently.]
TYPES OF RESOURCES: Our business
mainly deals with the intellectual property
where we sell patents to our prospective
customers.
Our customers want to be riched through
online network providers. Currently, we are
advertising our products to reach these
markets. Social media platforms that we are
using for advertising are highly integrated,
allowing a smooth flow of information in th
markets. We aim to mobilize our channels s
as to reach more clients.
Our partnership with Uber will also serve
great in building healthy customer
relationships with our prospective
customers. We Uber drivers to ensure timely
deriveries to grocery customers.
Cost Structure Revenue Structure
Our biggest cost in the business is remunerations used to pay application developers. There are also high costs in
purchasing patents. Reaching our customers have also been very expensive.
IS YOUR BUSINESS MORE: Our business is more value-driven as it attempts to bring value to both groceries
stores and their customers. As we get bigger, the business will certainly reap the benefits associated with Economies
of Scale. As we diversify our methods and pivot both our products and technology, we expect improved marekets due
to Econoies of Scale.
Our customers are more than ready to pay in and in return save consi
application service st about seven dollars. However, the price is likel
application has no subscription fees. Our revenues from Android rem
the our business enterprise.