UBM301 Entrepreneurship Report: Zapp Business Analysis and Strategy

This report provides a comprehensive analysis of Zapp, a UK-based tech company specializing in grocery and household item delivery. It begins with an overview of entrepreneurship and introduces Zapp's business model, emphasizing its rapid growth and strategic use of resources. The report then delves into the business model canvas, analyzing key partners, activities, value propositions, customer relationships, segments, resources, channels, and cost and revenue structures. A critical evaluation of the business model canvas is presented, highlighting its strengths and weaknesses. Furthermore, the report examines Zapp's external environment through a PESTLE analysis, considering political, economic, social, technological, environmental, and legal factors. The Porter's Five Forces model is also applied to assess the competitive landscape. An internal analysis is then conducted using a SWOT analysis to identify Zapp's strengths, weaknesses, opportunities, and threats. Finally, the report concludes with strategic recommendations for Zapp's future growth and success in the competitive market, including suggestions for improvement and expansion.

UBM301 Entrepreneurship
Assessment

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing and critique business canvas model...........................................................................3
Examining external environment and conducting porter five forces model...............................6
Performing SWOT analysis........................................................................................................9
Recommendations.....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship is activity that is concern with the setting up the business and the taking
certain kind of financial risk so that certain amount of profits might be earned. Also, to conduct
the activities in the best manner it is important that things are organized the things and bring the
required resources so that work might be carried out smoothly. Moreover, the present report is
based on Zapp that is one tech company in UK that promises to deliver the groceries and other
household items to customer doorsteps to make convenience to them. Also, the company has
been grown rapidly during the recent years because of the best use of resources and development
of various policies that had built good brand image in the market.
Furthermore, the report will analysis some internal and external environment factors that
affect the working of the business that will further help the cited company to develop strategic
plans' so that risk might be minimized to some extent. Also, the study will highlight the business
model so that the company is able to ensure the optimum utilization of the resources. Moreover,
certain strengths and weakness will also be highlighted through using the appropriate model so
that successful future operations might be conducted. Lastly, the report will provide certain
suggestions so that more improvements might be made in the current working of the Zapp and
new areas for expansion might be identified.
MAIN BODY
Analysing and critique business canvas model
It is model that helps the company through representing all strategic factors. Also, this
model helps in getting the complete overview of the way of working of the company, revenues
streams that are available, targeted customers and much more (Audretsch and Moog, 2022)
Furthermore, the major purpose of suing such type of model is that it would allow the Zapp to
analyse the currents' strategy that is been used in UK and make certain possible changes. Also,
below is detail representation of the Zapp business canvas model that might be sued for better
understanding level.

Business Model Canvas
Key Partners Key Activities Value Propositions Customer RelationshipsCustomer Segments
 Network
of the
suppliers
 Buyers
 Service
supporters
 Conducting
the online
delivery of
goods
 Managing the
supply chain
 Website an
customer
management
 Best prices
 Fastest
delivery
 Variety of
goods
 Better
brand
image in
the target
market
 Same day
delivery
 Proper
feedback
system
 Product ratings
and reviews
 Customer
handling
 B2C market
where the
customers that
are willing to
purchase the
products while
just sitting at the
home
Key Resources Channels
 Online
platform
 Employees
 E commerce
strategy
 Social media
platforms
 Official
website
 Word of mouth
Cost Structure Revenue Streams
 Warehouses
 Employees’ salaries
 Marketing
 Transportation costs
 Operational costs
 Developmental costs
 Commission from the products
 Transaction fees

Thus from the above chart it can be said that through using such type of business model
Zapp is able to develop the strategies that are not only efficient but also helps in developing
better relationships with employees within the workplace. Moreover, through following such
type of model Zapp would be able to analyse the specific risk and enquire more about the overall
competitor’s cots, customer segments, cost and much more (How to Build a Product Roadmap
Based on a Business Model Canvas, 2022). Furthermore, through identifying the key resources
and the partners Zapp would be able to organise certain activities by keeping in views of that
group so that maximum outputs might be derived. Also, through analysing the key activities such
as the online services and the managing the supply chain cited firm would be able to make better
decisions and prepare themselves in best of manner so that all challenges might be faced in
positive manner. Furthermore, the business canvas model reminds the firm about certain
objectives it wishes to achieve in the future so that based on that certain steps might be taken so
that best of responsibilities and duties might be assigned various employees that are working for
the firm.
Also, the major objective of the model is to help the firm identify the planning gaps and
identify the real value of the business so that it is able to analyse it position against the
competitors (Liguori and Winkler, 2020). Furthermore, this model will help the firm when any
new business idea has to be brought within the business so that is revenues might be estimated in
right manner. Overall it cane be said for company like Zapp that is operating in the changing
business environment this model will be helpful in reducing the risk failure and would allow the
firm to maintain the competitive advantage in the long run. Also, this model is quite focused in
terms of defining what is profitable business and also allowing to know about the steps that are
required to make the business success.
Furthermore, such model gives enough motivation to the top management to take best
decisions for overall business and invest in right directions so that certain goals are timely
accomplished (Ratten and Usmanij, 2021). Thus, it acne be said that such models are only used
by the business to foster more creativity and innovations at the workplace. Also, it helps in
creating more value propositions so that all the products that are offered on the online website is
able to satisfy the needs of the customers. However, this model fails in certain aspects as this
model does not show any kind of inter connections between components that are specified above
and hence it reduce the overall dependency. Furthermore, certain points such as competition,

history, and other external factors are absent in this model that also needs to be considered by the
frim while developing any kind of strategy within the business. Also, this model is not suitable in
early stages of development of business. Hence, it can be said that this model will be useful to
some extent to Zapp but it needs to look into other aspects for ensuring continuous success.
Examining external environment and conducting porter five forces model
There are various external environment that affects the working of the business and
moreover these need to be monitored in the best manner so that maximum efficiency might be
achieved. Also, if the external environment is not monitored than it would only result in wastage
of resources and will add unnecessary cost to the business. Moreover, such type of environment
might be analysed through applying PESTLE analysis that is been described as follows:
Political: There are various factors such as political instability, taxes, tariff duties etc.
that impact the working of any business in long run. Also, these factors need to be closely
analysed by the firm in long run so that maximum efficiency might be gained. Also, it can be
said that for Zapp if there is lot of political instability within the country than people would not
buy more of the online products thus reducing the revenue for the business. Furthermore, lot of
taxes on food products and the online tech services will further reduce the consumer interest in
buying the food items online. Thus, these factors need to be identified before planning for nay
strategy so that best possible solutions might be identified.
Economical: Factors such as the trade and tariff duties, inflation rate, import export
restrictions and much more also hampers the growth of the firm while working in the changing
business environment (Lipset, 2018). Also, for the Zapp it can be said that if there is high
inflation rate within the country than the prices of various goods within the online store would
also be risen which means that firm will not be able to sell large number of goods in various UK
regions. However, if policy of the country is easy regarding import and export of various items
than Zapp would be able to add more items in its list and earn more revenues in the short period
and covering the large market areas.
Social: The current society works on basis of various beliefs, customs, shared values,
ideas and much more. Thus, these are very importance aspect for any organization that wants to
sell additional product of any particular kind or introduce new product line among the existing
products. Moreover, society are the attracted towards more in consuming products that are
healthy and nutritious and thus adding more of grocery and healthy food products would help the

zapp to attract more number of potential customer towards the business. Also, this would further
help the company in building the brand image so that it would be able to expand into newer
regions and create more brand awareness among the potential customers. Furthermore, using the
on demand approach especially during the times of the pandemic have allowed the business to
run successfully in the society that was unable to go out in market during the tough times.
Technological: Digital technologies are the ones that plays crucial role in making all
kind of tech business as success in recent times. Also, it is seen that nowadays most of the
peoples are using the services digitally (Gupta and et.al., 2020). Hence, to reduce negative
impact on the working it is required that Zapp introduce new services within the online app and
upgrade the technology and working systems to the latest through monitoring so that it is able to
ensure faster processing and sales of the larger variety of goods in the market. Furthermore, the
online platform is also good at providing the feedback from the customers in timely manner thus
ensuring more efficiency.
Environmental: In the current era people are concern over protecting the environment
and hence it is very essential for Zapp to use environmental friendly technique while delivering
the goods to the consumers. For instance: Use of the disposable cups and plates, planting more
trees towards the work place, use of renewable energy and much more are some techniques that
will allow the firm to fulfil co-operate social responsibility and become responsible member of
the society. Also, it will not only reduce negative impact but will also enable the firm in building
the good brand image among the targeted customers in the long run.
Legal: There are various laws such as employment laws, health and safety laws,
minimum wages laws etc. that need to be followed in strict manner so that there is no problem in
the working of the business. Also, Zapp is one that needs to follow that all policies that are laid
by government are followed in correct manner so that there is no hindrance in the working of the
business. Moreover, if laws are not followed in right manner than it would result in wastage of
resources and inefficient working systems. Furthermore, it might also cause restriction for the
government to conduct certain operations thus decreasing the brand image in the market in the
long run.
Furthermore, not only analysing the external environment is necessary for the firm but to
gain the competitive advantage it is very much important that porter five forces analysis is also

undertaken so that better assessment might be undertaken. Moreover, porter five forces consist of
various elements that are been described as follows:
Threat of New Entrants: It is known that there are various small tech companies in UK
that are selling variety of online food services and are known very well in the market. Also, there
are various newcomers that are coming in the tech industry because of the rapid growing need of
the customers (Boldureanu and et.al., 2020). However, this factor is low for Zapp as it is already
established brand in UK and adjoining regions and hence even if entrants come in this industry
chances of growing to higher standards is very low as companies would not be able to establish
and reach to the higher standards from already big players in the market. However, if entrants are
coming with the ideas or attribute that is completely unique and newer than there are chances
that it would be able to survive in the market and build brand image like rest others.
Bargaining Power of Buyers: There are large number of buyers within the tech
companies and hence with upcoming of the online era where all the transactions are conducted
(digitally) it is very crucial for Zapp to look into the needs and wants of various customers so
that they do not drive to other options that are available in the market. Also, with completely
analysing the customer preferences it would be able to expand the market in the best possible
manner. Furthermore, if buyers demands are not considered than it would not only mean
inefficient working processes and only losses for the firm in conduct of various business
operations in the future.
Bargaining Power of Suppliers: There are various number of suppliers that are
available in tech industry to provide variety of goods to the companies. Also, in context of the
Zapp it can be said that with the availability of more number of suppliers this factor is very low
as company has the opportunity to choose products from different suppliers at lower prices.
Moreover, the suppliers that establishes strong relationship with the companies are able to earn
more revenues and build the position in the market (Urbano, Aparicio and Audretsch, 2019).
Furthermore, even though the suppliers during any point of time are limited than also the
company would be able to get raw materials at good prices as it had established brand image and
the position in UK market.
Threat from Substitutes: With the rapid growing tech industries and working in the
digital age there are various substitutes that are available in the market that are been offered in
lower prices. However, all these substitutes that are been offered in the market are because of the

reason that competitors want to establish the brand image similar to that of Zapp. Even though
substitutes are offered in low prices but in-spite of it they lack the similar attributes and feature
that might not be offered by the competitors in short duration. Also, lot of market research and
other resources like funds are required to offer similar services and the products in the target
market which is not possible for new and small start-up in short run.
Rivalry Among Existing Players: For the rapid growth and competitiveness it can be
said that Zapp need to make sure that is focused on continuously innovating so that it is able to
maintain competitive advantage and sustain for longer time-frame. Moreover, one benefit of the
cited company is that having large scale operations helps in achieving greater economies of scale
and also customers tend to develop the best relations with those companies that have the strong
customer base (Bogachov and et.al., 2020). Also, there are various competitors such as Getir,
jiffy, fancy and much more that are giving good competition in UK market. Thus, cited company
is able to survive in the market due to the fact that it had strong advertising and marketing
strategies and also it is focused on the bringing newer technologies and strategies within the
workplace so that effect of the rivalries within the market might be minimized.
Performing SWOT analysis
Though, Zapp has performed good in the recent times but even though it is very
important that all the internal factors are also closely analysed so that certain strengths might be
improved the weakness might be overcome in well-defined manner. Moreover, for Zapp internal
factors would be analysed through applying the SWOT analysis that is as follows:
Strengths:
 The major strength of the company is that it is gained best of customer loyalty over the
years due to which it is able to develop new strategies and policies within limited time-
frame (Bergmann and et.al., 2018). Also, the customers willingly purchase the services
from the firm because it gives them sense of assurance that services provided would be of
the supreme quality without any kind of compromises.
 Major strength is that Zapp services are available for longer hours and hence those
customers that do not wish to go out or have some issues would be able to comfortably
order the products just sitting at the home without facing nay kind of the convenience.
Weakness:

 Continuously adapting to the changing technology is difficult for Zapp as it costly affair
and it would create many difficulties to the firm when chances of earning the revenues is
limited. Hence, this is major weakness and choosing right technology for use is very
much important so that the revenues exceeds the cost of the business.
 Also, tech companies always requires researching the target and new market so that
customers needs might be analysed closely and also certain changes might be brought
within the working of business (Drobyazko and et.al., 2019). However, such process is
very time-consuming and thus might not be able to focus on this aspect completely as it
has other primary activities that need to be carried out within the limited time frame.
Opportunities:
 Better innovative technologies that are available in the market through which it might be
able to expand into newer regions and earn higher level of profits within specific time
frame. Moreover, through operating in the newer regions it would be able to introduce the
new product line that is essential for ensuring continuous growth and success in due
course of time (SWOT Analysis That Fits Perfectly for a Delivery Service Company,
2022).
 Moreover, the business has the opportunities to identify new product line that would be
served to the large number of potential customers and this would also allow the firm to
reach to completely new target segment and will also create new employment
opportunities within the country that is also the positive sign for the growth.
Threats:
 Increasing prices in market would only cause problems for the firm as it would not be
able to deliver variety of goods to the customers in the lowest prices (Maula and Stam,
2020). Also, due to increased prices, transportation cost would also be risen and if this
happens than it would only decrease profits for the firm in the future.
 Increasing threat of international competition would also impact working of the firm as it
would force the firm to bring innovative techniques within the workplace so that it is able
to stand apart from the rest others in the target market.
Recommendations
 It is recommended to the quoted firm that it should focus on introducing variety of
offers and discounts on the regular basis so that it is able to attract more number of

customers for the same. Also, these discounts need to be made in accordance with the
business situations so that there are no unexpected loses from the total revenues earned
by the firm (Dhahri and Omri, 2018). Furthermore, success of the company depends on
the fact that these offers are made in right manner that provides goods and services
different from the competitors either in prices or the quantity. Moreover, services like
membership cards, coupons cards etc. also could be introduced by the company so that
loyal customers might be retained within the online business for the longest of time.
 Also, strong feedback system would be beneficial for the firm so that customer reviews
and ratings might be analysed for each week so that corrective actions might be taken on
time (Apostolopoulos and et.al., 2018). Furthermore, the feedback system installed within
the software of Zapp would also help the firm to collect innovative ideas so that best out
of it might be implemented within the continuing operations of the business and better
retention of the target customers would enable in earning higher revenues. Further,
company should conduct certain marketing campaigns so that it is able to create more
brand awareness and build the best relationships with its target customers in long run.
CONCLUSION
From the above report it can be concluded that having the right business skills are very
essential for any type of business so that certain long and short term objectives mighty be
achieved in right manner. Furthermore, the report had identified that companies should focus on
hiring and retaining both employees and customers so that greater revenues might be earned in
the future. Moreover, the study had presented in detail about the business canvas model that
would be used to take certain strategic decision smoothly without thinking much about others.
Furthermore, the report had analyse various external and internal factors that affects the
operational efficiency of the firm through applying PESTLE and SWOT analysis. Further, report
had stated that all these factors might only be controlled to some-extent but could not be
completely removed from the daily routine work of the business Also, the competitive advantage
of Zapp had also been identified in report through applying the porter five forces model so that
maximum revenues might be earned in due course of time. Also, study had claimed that through
the increased productivity and efficiency the cited firm would be able to conquer newer market
regions and would be able to apply systematic approach. Moreover, through all such analysis
Zapp would be able to identify the current market position and develop better understanding of

the industry for all future undertakings of the projects. Lastly set of strategic suggestions had also
been presented under this report so that better working might be assured for all future projects.

REFERENCES
Books and Journals
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Boldureanu, G. and et.al., 2020. Entrepreneurship education through successful entrepreneurial
models in higher education institutions. Sustainability. 12(3). p.1267.
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development: What does the evidence really say?. World Development. 106. pp.64-77.
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Lipset, S. M., 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-
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Maula, M. and Stam, W., 2020. Enhancing rigor in quantitative entrepreneurship
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Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
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Urbano, D., Aparicio, S. and Audretsch, D., 2019. Twenty-five years of research on institutions,
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Online
How to Build a Product Roadmap Based on a Business Model Canvas. 2022. [Online]. Available
through :< https://www.productplan.com/learn/business-model-canvas/.
SWOT Analysis That Fits Perfectly for a Delivery Service Company. 2022. [Online]. Available
through :< https://pestleanalysis.com/swot-analysis-for-a-delivery-service-company/>.