E-Business Strategy and Expansion Plan for Slices Restaurant: Report

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This report provides a detailed analysis of Slices Restaurant's current strategies and proposes new e-business and expansion strategies to increase revenue and brand awareness. It begins with an executive summary, followed by an introduction to e-business and the restaurant. The report then examines the current strategies, focusing on the UAE market, competitive landscape, and the restaurant's strengths and weaknesses. It suggests new strategies, including establishing an online business through website development, search engine optimization, and email marketing, along with an expansion plan. A business model canvas is presented to outline the proposed strategy's key aspects. Finally, the report offers actionable recommendations and an action plan for Slices Restaurant, concluding with a review of the findings and suggestions for future development. The report emphasizes the importance of adapting to changing customer preferences and leveraging technology to compete effectively in the market.
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2018
Slices
5/11/2018
E-Business Strategy
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E-BUSINESS STRATEGY 1
Executive Summary
This report is being prepared to provide the analysis of the current strategies of the Slices
restaurant and suggestions of the new strategy that can help the company in establishing e-
business. The business canvas model will be presented to reflect the roadmap and key aspects
of the suggested strategy.
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E-BUSINESS STRATEGY 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Current Strategy Analysis......................................................................................................3
New Strategies.......................................................................................................................5
Online Business..................................................................................................................5
Expansion...........................................................................................................................7
Business Model Canvas.........................................................................................................8
Recommendations................................................................................................................10
The action plan of Slices Restaurant................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
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E-BUSINESS STRATEGY 3
Introduction
E-business is said to be a conduct of the processes of the business on the internet (Combe,
2012). These processes of electronic business comprised of buying and selling of the
products, supplies, and services, processing payment, managing production control, servicing
customers, running automated employee services, corporation with the business partners, etc.
This report will perform a detailed analysis of the current strategies and positioning of the
Slicer restaurant in the market of the United Arab Emirates and suggestions of the new and
innovative strategies i.e. e-business and expansion to increase the revenue and awareness of
the health and diet food. A roadmap will be presented i.e. business canvas model of the new
suggested strategies which can direct business in running smoothly. Besides this, the report
will recommend an action plan that should be followed by the company to enhance its
performance and expand business functions in the respective market.
Slices Restaurant was established by considering the increasing health issues and nutritional
demand in UAE (Slices, 2015). The idea of the restaurant was born by four Emirati friends
i.e. Khalid, Faisal, Amina, and Hamad, they decided to start a restaurant by providing healthy
food at affordable prices. To begin this business owners of the restaurant got support from
Abu Dhabi's Khalifa fund which is one of the government entity that is focused towards
support new business and entrepreneurs (Jabeen, Zamber and Khan, 2015).
Current Strategy Analysis
Slices Restaurant provides healthy food to the people of UAE by promoting fitness and health
for a healthy living. This restaurant is a start-up which was established by the support of Abu
Dhabi's Khalifa fund which is one of the government entities which reflects that the
government of the country is very supportive (Abu Dhabi, 2018). Besides this, Slices is
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E-BUSINESS STRATEGY 4
effectively contributing to the country's economy which can be seen by increased revenue i.e.
AED 576,547 in 2012 (Slices, 2015). Moreover, the GDP of the country has also increased
by 5% in 2012 and 5.79% in 2013 through this it can be said it has resulted in increasing the
purchasing power of the citizen and will result in increasing the company's profitability. The
concept of Slices restaurant is a great concept of offering healthy food to the people by
considering the benefit of the society; however, it has to deal with some challenges such as
changing customer taste and purchasing behavior. In terms of technology, advancement
business needs to work on it in order to fight with the international competitors with
advanced technology (Bush, 2016). The restaurant is offering fresh, healthy and quick food to
the student and contemporary executive by following all the legal guidelines however
company need to focus on HRM and security policies. The government of UAE has
introduced a 1999 Federal law for the protection and development of the environment which
every business need to follow for the sake of the environment, however, Slices has started a
program of school food in which it promotes the consumption of healthy and diet food among
the students.
While analyzing the Slices performance in the market of UAE it has been identifying that the
competitive rivalry is very high in the market due to the presence of various health as well as
fast food restaurants. However, Slices has attained a competitive advantage because of its
exclusive resources. Besides this, the bargaining power of the suppliers is low in the market
because Slices purchase from the local farmers its organic product. However, it can be
noticed that there are fewer restaurants in the market that provide a complete range of diet
and healthy food. This is a benefit of Slices because the supplier has to deliver products
according to its terms and conditions. The power of buyer is very high in this segment
because restaurant needs to consider the taste and choice of the customer as it a complete diet
and health food restaurant. Along with this, the threat of substitute in this segment is also
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E-BUSINESS STRATEGY 5
high because companies are trying to attain the Slices market by copying the services and
resources of the restaurant. Further, the threat of new entry is high because of the absence of
entry barriers in the market segment. The restaurant needs to offer innovative and creative
food items so that it can attract the attention of the customers. Along with this, it needs to
work on its ambiance that cannot be copied by any other company.
The resources of the Slices Restaurant are divided into two categories i.e. Tangible and
Intangible resources. The tangible resources of the company involve Store location, Stock,
Equipment, Machinery, and Furniture. Besides this, the intangible resources of the restaurant
involve Patient, Goodwill, and Ambience. In addition to this, the core competencies of the
Slices involve effective customer service, skilled and experienced staff, tasty and healthy
food, quick delivery.
New Strategies
Online Business
E-business or online business is a term used for all type of commercial transactions or
business that involves sharing or transferring information through the internet (Rouse, 2018).
Commerce starts the exchange of services and products between groups, businesses and
individuals and can be observed as one of the vital business activities. E-business can include
a range of services and functions, ranging from creating extranets and intranets to e-service
(Combe, 2012). Slices Restaurant should start its online business in order to increase its
market share and awareness among the people of benefits of the healthy diet. In order to
initiate this business need to follow some steps like:
Identify the need and fill it
While starting a new online business various businesses make mistakes of first identifying the
product and then the market. However, in order to be successfully Slices Restaurant initiates
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E-BUSINESS STRATEGY 6
the business by identifying the market. This can be done by visiting online forums to observe
what people want and what are their issues that other companies are not able to solve?
Besides this, the company should also focus on the potential competitors by just visiting their
online sites (Edmondson, 2017).
Write a copy that sells
This sales copy formula carries visitors of the sites from the process of selling to the
purchase. This involves raising interest of the visitors with the support of compelling
headline, explaining the issues that product can solve, introducing reliability as a solver of the
problem, adding recommendations of the customers who have utilized the services,
explaining the product benefits, provide various offers making strong guarantee, generate
urgency, and asking to purchase.
Designing and creating the website
Once company got its target market and nailed down its process of selling, at this point
business is ready for its small business web design. It is very important for Slices to keep it
simple. The business just gets less than five minutes to grab the attention of someone
otherwise they will go and never to be seen all over again. Therefore, in order to get the eyes
of the visitors business need to select only two fonts, navigation should be simple and clear,
one graphics, video, or audio to improve the message, comprising an opt-in offer such that
company can gather e-mail addresses, easy browsing of the website and it should be customer
friendly (Turban, 2010).
Using search engines to carry targeted customer to the company’s website
Pay-per-click advertising is the simplest technique to gain traffic to the site. It provides two
advantages for waiting for traffic to arrive at the website naturally. First, PPC ads display on
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E-BUSINESS STRATEGY 7
the search pages instantly, and next PPC ads permit the company to test diverse keywords,
headlines, selling and prices approach (King and Lee, 2015).
Creating an expert status
People make use of the internet to search information. Offering that information for free of
cost to other sites will result in more traffic and better ranking on the search engine.
Using email marketing to convert visitors into buyers
The business needs to make use of email marketing in order to increase the visits of the
people on the website. The email marketing is inexpensive and very much effective as
compared to print, radio, T.V, because it is highly targeted (Beesley, 2016).
Increasing income from back-end sales and upselling
The essential internet strategy of marketing is to make lifetime value of every customer.
Approx. 36% of the people who have obtained products from the business one time will
definitely come back to purchase again it the company will follow up with them (Moon,
2018).
While following this strategy Slices Restaurant can increase its revenue and continue with its
program of school food by explaining students, a youth about the healthy diet. As it has been
experienced that today most of the generation are techno-savvy, therefore, this strategy will
definitely work and people will order healthy food for the sake of their health.
Expansion
The expansion is called a business cycle phase when there is a movement of the economy
from trough to a peak (Attract Capital, 2018). This is the period when the business activity
level flows and GDP expand till it touches a peak. The period of expansion also called as an
economic recovery (Manuseto Ventures, 2018). Slices restaurant need to expand its business
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E-BUSINESS STRATEGY 8
outside the boundary of Abu Dhabi. Only conducting business at a single location does not
help in growing in the market. Today every business organization wants to grow and earn
more profit and it can be only done by expanding the business at different places and
locations. Due to this only the concept of globalization came into existence to provide the
chance to the capable business organization to expand their business and serve different
people at different locations or countries.
If Slices will expand its business in other locations such as Dubai, Ajman, etc. it will be able
to earn more revenue and will be able to aware people about healthy diet. The consumers will
also get the benefit of this as they will know more about healthy diet and can enjoy tasty
healthy food make up of organic ingredients.
Business Model Canvas
Business model canvas is called as a lean start-up and strategic management template for
evolving new or verifying existing models of business (Niven, 2011). It is in the form of a
visual chart with fundamentals defining the value proposition, finances, infrastructure and
customers of products and firm. It supports company in arranging their activities by
exemplifying potential trade-offs (Makhijani and Creelman, 2011).
Key Partners
Local
Farmers
Software
vendor
Hardware
vendor
Associatio
ns
Suppliers
at regional
and local
level
Key Activities
Merchandisi
ng
Design and
production
Marketing
User
Services
Food with
integrity
Customer
relationship
Buying and
selling
Value
Proposition
Customized
diet food
Variety of
choices
Home
delivery
Safe online
buying
Simple menu
Fresh and
healthy food
Affordable
prices
Customer
Relationship
Concentrate on
pleasing the
consumer
Self-service
Automated
service
Attracting
maximum
number of
customers
Classify and
recall loyal
customers
Customer
Segments
Green and
health aware
customers
Local
industries
College
student
School
student
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E-BUSINESS STRATEGY 9
consumer
goods
Collecting
information,
suggestion,
and
feedback
from
customers
Long-term
relationship
Giving
importance to
the suggestion
and feedback of
the customers
Key Resources
Physical
warehouses
Stores
Web
application
and
development
Application
developers
Data of
customer
Quality
assurance
Employees
Channels
Social media
advertising
Integrated
marketing
Slices website
Cost Structure
Logistics
and
warehouses
Staff
Capital
expenditur
e
Most of the
cost is
variable
Lean
structure of
cost,
inexpensiv
e
Revenue Streams
Accepting
various
payment
options which
make it easy
for the
customers to
purchase
Average
customer can
pay for $15
combo
The above business canvas model is explaining various aspects of the new strategy that has
been recommended above to increase the market share and profit of the business.
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E-BUSINESS STRATEGY 10
Recommendations
The action plan of Slices Restaurant
Objective Tasks Success
criteria
Timeframe Resources Responsible
person
To increase
market share
and revenue
through
online
business
Creating
website
Hiring
experienc
ed and
skilled
workforc
e
Customer
feedback
Increased
traffic on
the
website
Increasing
sales
6-12 Months Human
Resource
Website
Faisal,
Hamad,
Amina and
Khalid
owner of
Slices
restaurant
Making
people aware
of their
health
Interesting
and
attractive
messages
Decreasing
health issues
and illness
6-12 months Online
promotion
Human
Resource
Marketing
Department
Expansion of
business at
different
locations
Identifying
perfect
locations for
the
restaurants
Hiring
employees
Successful
establishment
of various
restaurants
Increasing
diet food
consumption
2-3 Years Human
resource
Equipment,
furniture, and
machinery
Faisal-
Finance
department
head
Marketing
department
Research
and
development
department
The above action will definitely support Slices restaurant to expand its business at different
locations and start an online business. The above plan has highlighted some important
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E-BUSINESS STRATEGY 11
elements that are important while thinking of new strategies to increase and grow the
business.
Conclusion
In the conclusion, it can be said that Slices Restaurant is a good as well as the effective idea
of business to offer health good and aware people about the importance of being concerned
about their own health and diet. The above report has highlighted various aspects of the
company’s performance. It has reflected the position of the company in the UAE market.
Besides this, the report has provided suggestions for the new strategies such as online or e-
business and expansion to increase the market share, revenue. From the above analysis, it has
also been identified that Slices Restaurant is not just concerned about its revenue but also
wants to make people aware of health and diet food that will result in a longer lifespan. The
report has provided the process of starting a new online business. Along with this, it has
explained the expansion strategy with the support of its benefits to the customers and
company. A business canvas model for the new strategies has been designed so to give an
idea of the important resources, partners, activities, channels, and customers. In addition to
this, a report has designed the action plan for both the strategies to provide an idea of the
objective, task, and criteria for success, required resource, and responsible department.
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