Business Innovation Project: Online Second-Hand Goods Marketplace

This project outlines a comprehensive business plan for an online platform facilitating the buying and selling of second-hand products. The plan addresses the increasing consumer preference for online shopping and the commercial value of such a platform, particularly in the context of digital innovation. It details the business concept, which involves an electronic database for transactions, and discusses the value proposition, including increased revenue, reduced operational costs, and customer loyalty. The project covers resource requirements (financial, human, physical, and educational), implementation strategies, and methods for monitoring performance. It also identifies target markets, strategic focus areas, and competitive advantages, such as secure payment systems and user-friendly interfaces. The plan incorporates strategies for market entry, including learning from established players like Amazon and forming strategic partnerships. Furthermore, the plan emphasizes the importance of human capital, resource allocation, and the use of road mapping to ensure the business's long-term success and adaptability. The project also considers the need for flexibility and outsourcing to maintain competitiveness and relevance in the future.

Online shopping has been extensively accepted as a mode of consuming goods and services.
In fact, according to Bourlakis et al. (2008), it has become a more common process in today’s
globalized world. It has been revealed that shopping from the internet offers a further satisfaction
to modern consumers pursuing speed and conveniency (Yu and Wu, 2007).
Why is the idea important?
Due to consumer’s technological inclination, I have selected a business idea which is a market
trend in the present time under the digital and technology category and which creates great
commercial impact. Basically, the idea is setting up an online business platform where the
buying and selling of second-hand products take place using an electronic database. Buyers can
purchase products such as tv, mobile phones, laptops etc.at reasonable, negotiated prices;
keeping in mind that all customers have to register on the electronic database.
Baregheh et. al. (2009) highlights that innovation is a significant need in enterprises since it
contributes to adding value and supports a firm to sustain its competitive advantage.
Is there a commercial or value-adding need for the idea, and if so, what will it be?
Such innovation will contribute to a maximization in revenues since there is an enlarged
customer base (Fraser et al. 2000) and due to the reduction in operational costs, along with an
increase in the businesses’ efficiency (greater output than input).
Furthermore, the opportunity that this business creates is that it creates a loyal relationship with
customers, increasing their costs of switching to other dealers, and accordingly contributing to a
larger market share.
The idea transmutes organizational structures for improved value creation ( Leee, 2001).
Additionally, customers have the extravagance not to visit stores and do their shopping anywhere
at any time (Hannon, 1998).
The idea will deliver more information and selections to compare to consumers (Butler&
Peppard, 1998).
Since such digital service invention ‘s processes are automated and are capable of delivering
products at reduced prices than their rivals, this gives the business a superior performance and
competitive advantage over other players.
How will you resource this idea (taking into account different types of necessary
resources)?
The resources I will need to commercialize such business idea are financial, human, physical,,
and educational resources.
One barrier of commercializing the idea though is whether or not it will be accepted by the
market since it is a new concept in such changing market? Similarly, a demanding amount of
fund and technological resources (expensive responsive web design and server) should be
necessitated which is a challenge to a start-up business. Furthermore, starting such business
requires a competent, highly proficient personnel which is another limitation to innovation.
How will the idea be implemented and monitored?

To implement such idea, setting up the business should obviously take place. An analysis of the
market condition will be conducted as well as the collection of data with regards to competitors
in order to maximize profit. Moreover, other sources of data such as journals, books, and surveys
will be assembled which is regarded as a crucial step for the establishment and implementation
of the business.
The planned approach will be measured by the technique of benchmarking. The idea will be
monitored with the support of a certain measurement criteria to assess the success rate of the
approach. Consequently, actual performance will be compared with benchmarks in relation to the
total number of registration in the electronic database.
Consumers should not worry anymore about disposing any used commodity.
The easy accessibility, choices, and process handling in addition to the reasonable price will
certainly attract many customers to this invention.
I believe that such knowledge‐intensive and technology‐based industry will be competitive and
profitable since it is novel and will fulfill consumer needs. In addition, the issue of disposing
used commodities will also be solved in an effectual approach as the value of used and second-
hand products will increase.
Once the idea is transferred to a service, the business will differentiate itself, compete, advance,
and succeed in the marketplace.
This “new firm formation” as described by Qian and Haynes (2014) would require risk taking
and for one to anticipate the barriers to survive and lead the market.
Define Goals:
The innovative idea is an online business platform of second-hand products and commodities.
The goal of such idea is to offer consumers and other sellers the goods they need at low prices in
a convenient way, anywhere and anytime. Such goal should be communicated clearly to
everyone in order to fit into the business plan (Cooper & Edgett, 2010).
The idea will provide more selections to consumers as well as the advantage of comparing the
items with one another.
Areas of Strategic Focus:
The idea will target the middle class, individuals who want to get rid of any excess or
unnecessary items, and people favor convenient shopping.
There is an enlarged base of buyers and sellers, since there will be a substantial amount of
commodities and products in electronics, clothing, books, furniture, and furniture categories.
The ability for the business to increase profitability and productivity and grow from a niche
market is most likely to take place in the future, because of the secure high technical and
economies of scale through extensive product offerings.
Amazon, eBay are some examples of few the market leaders with such idea. There may be some
competition due to lower differentiation and increased geographic reach.
Thus, such knowledge‐intensive and technology‐based setup strive to become novel gain
competitive advantage.
Value is delivered to customers through the resources which are economically utilized and which
are difficult to replicate by other rivals in the industry. The value includes marketing and

technology leverages (R&D) to create innovative offerings such as a secure payment system,
reduced price, customer service, user friendly website with automated distribution channels,
efficiency, and access to a large and available inventory that offers selections for consumers.
In case of market shift and changes, competent programming employees will be able to shift to
an alternative software application easily without complications.
Attach and Entry Strategies:
Since the business is risky, responding fast to a dynamic environment is requires, being a second
mover will bring benefits to the business, by learning and taking advantage from the first movers
experience. For instance, learn from Amazon how to be more effective in online transactions,
customer tracking, shipping, and customer service in order to succeed in such arena.
Moreover, competing with forms that have already attained a network dominance such as
Amazon and eBay is not cheap nor easy.
There’s a major threat that the business can be replaced by one that is more advanced in
technology. Thus, the survival of the business depends on the accessibility of the leading
applicable developments technologies.
Forming a strategic partnership with a firm specializing in IT & e-commerce start-ups to deliver
a great value to their customers employing the technology of the acquired partners at a low cost
is one of the business strategies that will be employed to handle the factors of the external
environment. Alliances can help the business which encounters issues of developing capabilities
in shipping, and billing, etc.and will allow the business provide a necessary, unique, solution is
delivered to consumers, which will assist innovation by sharing capabilities and risks (Bowonder
et. al, 2010) given that laws and regulations affect such innovation in particular in the fields of
intellectual property and patents (internet business models). By using open innovation, beyond a
firm’s boundaries, technology will be advanced. The business will commercialize internal ideas
through an external channel of their current businesses to create value for the business.
Resource Allocation:
Human capital would be the most important resource in the business since their skills,
knowledge, experience along with the incentives and training which support them are essential
factors. Additionally, the corporate culture which shapes and determines how employees interact
with each other and how the business deals with its partners is a crucial factor that should be
considered.
Other resources needed to achieve the business goal are: financial (cash), equipment, facilities,
patents in business processes, intellectual property, computer software (customized), database
information, IT.
As the business activities are assembled depending on the market demand and given there are
limited firms available for comparison.
managing such resources efficiently is a vital step that needs to be carried out because other wise
it may lead to inefficiency.
Highly proficient employees with specific skills and abilities is needed.
Maintaining qualified employees through training programs so they can develop new abilities in
technologies is one of the business’s schemes. In order to operate in the market, employees with
distinctive capabilities or competencies should be present. In some cases, competencies are
employed to lead the market by providing value to customers.

Road mapping is an effective tool for success of such idea. It plans the business’s technological
capabilities to ensure that strategic goals and objectives are met. The gaps that will emerge in the
market are identified and responding to those gaps in the future is essential to for the innovation
strategy’s success (Cooper & Edgett, 2010).
The idea will be revised in 5 or 10 years time through the business’s access into new markets, the
creation of new product lines, the utilization of better enhanced marketing techniques.
Such business is quite challenging and will progress through the method of trial and error.
Hence, flexibility is the solution to the business’s survival and success.
The idea would still be relevant in the future as long as the sustainable management of processes,
services, technology, and customer experience would take place. However, I would implement
outsourcing as a mean to reduce cost, instead of carrying the business functions in house, so that
more focus on the innovative aspects of the business processes takes place. Additionally, I would
strive to gain more suppliers and buyers on extensive geographical.