Proposal of the Business Idea
An effective business plan is an important strategic tool for the entrepreneurs. It helps them to focus on the particular essential steps for making the business idea succeed. However, it assists in achieving short-term as well as long-term objectives. Fast food business is one of the effective business ideas that help the business to gain competitive advantages in market. In the present study, SWOT analysis, Porter’s Five Forces analysis and 7p marketing are used in order to analyze the effectiveness of the business idea.
With the global economy, there has been a massive change for several industries; the fast food industry is hugely affected (Nixon et al. 2015). Franchise help is one of independent research as well as consultant firm. The modern franchising system is believed that the system can be helpful in managing the business. The barriers are required to entry in the market. In this perspective, it is required to analyze the business idea with the help of tools and techniques such as SWOT analysis, 7P marketing and Porters five forces analysis so that issues can be identified. The strategy is generally based on the process of serving the markets. There is a combination of local media of social media marketing programs that will be used at the every level location. Marketing of local store is developed in a particular process and set up with the activities that make the procedure helpful. Hence, executing the concept is considered as the most vital component. Hence, executing the concept is considered as important for the market.
The SWOT analysis would be helpful to analyze the business idea.
Strengths: Luo and Toubia (2015) stated that saving money is one of the main strengths followed by the organization. It becomes popular with less financial endowed members of society. The offerings are helpful to appeal in the process. On the other hand, it helps to save time. The fast food becomes popular as time is saved in the process.
Weakness: A similar item as if value line has been introduced that concerns about food. The commodity fast food centre has faced several challenges in this segment.
Opportunity: Martins, Rindova, and Greenbaum (2015) mentioned that the international sales are developed by fast food sector. The organizations are getting workable plans in the process. It indicates there is chance of getting plans. However, it offers great scopes to find the profitable ways for business. Various business have specialization on the process of making fast deliveries during maintenance of quality.
Threat: It becomes important to focus on the segment such as media for portraying it. While fast food is related to unhealthy meals.
7p marketing:
The 7ps marketing mix is one of the most important marketing tools that were previously limited to 4p marketing tool. In addition, the 7p marketing tool is a marketing strategy. It is used across world in order to derive the marketing strategy for gaining successful marketing tools. It is utilized for comparing marketing strategy of two competitive companies in the same market in order to identify the opportunities for enhancement in marketing strategy for achieving marketing advantage in comparison to the competitor (Lassen et al. 2016). The seven P of the 7p marketing model is known as Product. It should fit the task customers want it for and should be what customers are expecting to get.
Analysis of the Business Idea
Product:
The proper product the organization is selling
Place:
It refers to the mode of consumer shopping. In addition, it includes the places for shopping like it might be online, physical stores or mail order catalogues (Estrade et al. 2014).
Price:
It refers to the selling price that the organization decides for selling the product
Promotion:
Tools as well as techniques used by the organization in order to share as well as communicate the message regarding brand and products to the consumer
People:
People belonging to the team and responsible for interacting with customer
Process:
This refers to the way by which service is delivered to the consumer
Physical Evidence:
The physical elements offered to the consumer as part of product and services. The 7p model has been discussed in reference to the company Franchise help.
|
Components of 7p |
Franchise help |
smart technologies |
Comment for improvement |
|
Product |
It manufactures and sell products that includes fast food. |
It only manufactures fast food that is delivered by getting orders from mobile applications. |
In terms of verities of product offered, Franchise help has competitive advantage over other firms. |
|
Place |
It offers both online and offline mode including exclusive physical store for food (Belon et al. 2016). |
Both online and offline presence, but number of stores are less |
In terms of place Franchise help has advantage due to number of exclusive physical stores |
|
Price |
Prices are higher as premium segment consumers are mainly targeted. Even beverages are not value for money in comparison |
Target budget oriented consumer segment which results in more number of consumer |
Need to improve the pricing of midrange devices as they are relatively higher in price, though lacks in features |
|
Promotion |
Social media marketing, celebrity endorsement , print and media presence |
Extensive Community based social media marketing |
Franchise help need to consider the amount spent for celebrity marketing and improve the pricing of the device offered |
|
People |
Highly qualified people, specializing in marketing and consumer relationship for serving consumer and resolve consumer issues |
Not so highly qualified people as part of the strategy to keep the pricing of the product aggressive |
People employed for dealing with consumers are advantage for Franchise help as it helps to retain customer with proper service |
|
Process |
Doorstep service is offered to customer including device delivery, faulty device pickup and resolving issues regarding foods |
Doorstep service is not provided to consumers (Bradshaw 2016) |
Franchise help has advantage in this section |
|
Physical evidence |
Lot of food items are provided along with others side dishes as well |
Meal and main course is not provided |
Franchise help has advantage in this section too |
After comparing the two companies with 7p marketing mix model, it is concluded that Alaska has competitive advantage over other fast food business in various section.
Porters’ five forces:
It is a strategy on the specific dimensions of getting the strategic scope. There are five elements of Porters’ five forces.
Competition among competitors: A competitive strategy will provide the organization competitive benefits. In fast food industry, competition is high. It prioritizes on obtaining competitive benefits (Chen and Kwan 2015). Rivalry is increased when the organizations are competing with the same customers.
The bargaining power of buyers: The tendency of bargaining specially focuses on the management. The customers in the food industry have ability in bargaining over price of food items. In addition, the demand is good quality as well as includes a great experience with reasonable prices. It is important to implement to increase awareness of the customers and makes the tactics properly where budget plans will provide support as well as facilities. The major focus is increasing awareness of the customers surrounding the community.
The bargaining power of suppliers: The organizations select process of their own. It also supplies organic produce as well as antibiotic free meat. Hence, there are charges for product supplying.
Threat towards entry of new entrants: There are several new entrants in the fast food industry. It is cheaper starting up the business than others are. In addition, the experience holds pivotal significance. Hence, it is important for the organization focusing on the entry of new entrants, which might be threat for future.
On the other hand, it is essential for the organization to develop a high degree of enthusiasm as well as offer good quality foods. It will reflect youthful as well as energetic culture. In addition, supporting the items of merchandise that can support brand developing would be helpful for the organization (Ake et al. 2018). It is also important to focus on the innovative packaging and entertaining the customers would be helpful for the organization. The organization needs to develop effective supply chain management system that makes a good relation with the process. Strategy and implementation would be helpful for the organization taking the process effective and make the process successful. Apart from these, it is required to develop financial plan and makes the positive cash flow (Arora and Saxena Arora 2015). The range of competitors spans the domains of market. On the other hand, looking closer similarity to the process and offering would be helpful for the organization.
Conclusion
Coming with effective business idea has several benefits whether it is required to develop the process successfully. The business idea requires for the products as well as services offered by the organization. A well-developed business plan can be helpful to the buyers to take decisions regarding the products. Active and passive income in the business plan needs to be included properly to perform the work for selling products. Hence, it is important to analyze the business idea, find the loop holes in it and take proper actions to overcome the process.
References
Ake, K., Clemons, J., Cubine, M. and Lilly, B., 2016. Information technology for manufacturing: reducing costs and expanding capabilities. CRC Press.
Arora, A. and Saxena Arora, A., 2015. “Supply Chain—Marketing Shark Tank” Experiential Lab Game in Interdisciplinary Business Education: Qualitative and Quantitative Analyses. Decision Sciences Journal of Innovative Education, 13(1), pp.21-43.
Belon, A.P., Nieuwendyk, L.M., Vallianatos, H. and Nykiforuk, C.I., 2016. Perceived community environmental influences on eating behaviors: A Photovoice analysis. Social Science & Medicine, 171, pp.18-29.
Bradshaw, A., 2016. An analysis of E ngland’s nursing policy on compassion and the 6 C s: the hidden presence of M. S imone R oach’s model of caring. Nursing inquiry, 23(1), pp.78-85.
Chen, X. and Kwan, M.P., 2015. Contextual uncertainties, human mobility, and perceived food environment: The uncertain geographic context problem in food access research. American journal of public health, 105(9), pp.1734-1737.
Estrade, M., Dick, S., Crawford, F., Jepson, R., Ellaway, A. and McNeill, G., 2014. A qualitative study of independent fast food vendors near secondary schools in disadvantaged Scottish neighbourhoods. BMC Public Health, 14(1), p.793.
Lassen, A.D., Lehmann, C., Andersen, E.W., Werther, M.N., Thorsen, A.V., Trolle, E., Gross, G. and Tetens, I., 2016. Gender differences in purchase intentions and reasons for meal selection among fast food customers–Opportunities for healthier and more sustainable fast food. Food quality and preference, 47, pp.123-129.
Luo, L. and Toubia, O., 2015. Improving online idea generation platforms and customizing the task structure on the basis of consumers’ domain-specific knowledge. Journal of Marketing, 79(5), pp.100-114.
Martins, L.L., Rindova, V.P. and Greenbaum, B.E., 2015. Unlocking the hidden value of concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), pp.99-117.
Nixon, L., Mejia, P., Dorfman, L., Cheyne, A., Young, S., Friedman, L.C., Gottlieb, M.A. and Wooten, H., 2015. Fast-food fights: news coverage of local efforts to improve food environments through land-use regulations, 2000–2013. American journal of public health, 105(3), pp.490-496.
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