My venture included a third party delivery service for restaurants in which I would offer the actual customers of the restaurants free delivery. The way that I would make money would by charging the restaurant 25-30% of the order. My competitors, like GoWaiter or DoorStep Delivery for example, do the same thing except they do not offer free delivery, making them more expensive on the consumer and less attractive overall. The following are the advantages I have over my competitors:
1. Social Capital - I have a close friend in Tallahassee, Fl who owns a food delivery service and is doing well, someone who I know would be willing to help me in the event that I wanted to open my own delivery service elsewhere or even join hands with him in business.
V- Very valuable. One of the most valuable, potentially, in the start of this business venture.
R - Very rare. Not many owners of third party delivery services out there that would be willing to help you.
I - Very hard to copy because this is rare.
N - Could substitute by knowing someone who already works for such a business, but they wouldn't be nearly as knowledgeable as the owner
2. Experience in the food industry - I worked at a donut shop for two years and we actually used a third party food delivery service so I know what it is like from both the business' perspectives and the delivery services' perspective.
V - Experience is needed in whatever you do to be successful so this is valuable.
R - Not rare. In fact, this is pretty common.
I - Easy to copy.
N - No problem substituting.
3. Financial Capital - Thankfully, I have very good credit which means that, more than likely, I can access most any form of capital if need be.
V - Very Valuable. One of the most valuable because I may not be able to start the business to begin with without this.
R - Not common
I - Not easy to copy.
N - You can substitute this either with an investor who has access to capital, or with a co-signer.
4. Persuasiveness - This one might come off as a bit cheesy, but sales is a huge part of this. Obviously, the only way for me to make money would be for the restaurants to make money as well, so I have to have them on board. Being able to convince them to work together with this food delivery service is something that I would need to be successful.
V - Not too valuable because you can hire others to do this part for you.
R - Not easy to come by
I - Yes, you can copy this.
N - You can hire professional staff that are already experienced so you can substitute for this.
5. Marketing - I have taken multiple marketing courses and have undergone marketing ventures for several businesses in Tallahassee, mostly restaurants, as a way to make money. I have proven results that have come directly as a result of my work.
V - Like #4, you can hire someone to do this part for you.
R - Easy to find.
I - Yes, you can copy this.
N - You can hire professional staff that are already experienced so you can substitute for this.
6. Free Delivery - This is what will attract the consumers to begin with and will serve as a big push for our sales.
V - VERY valuable.
R - Very few similar services in the country do this. Rare.
I - Yes, you can copy this.
N - You can really substitute this with anything.
7. Professionalism - Uniforms, Sales staff and communication.
V - Very valuable to any business, wherever you go.
R - Not rare.
I - Can be copied.
N - You can't really substitute this with anything, but it is easy to attain.
8. Culture of friendliness - Always being positive and happy towards the customers to make them feel warm and welcome.
V - Also valuable to any business no matter where you go
R - Not rare
I - Can be copied.
N - You can't really substitute this with anything, but it is easy to attain.
9. Online ordering for convenience with a user friendly interface
V - Valuable now that this is the direction most delivery ordering is headed.
R - Not rare. Found all over.
I - Can be copied.
N - The only real potential replacement would be by using an app to order.
10. Fast Delivery - This makes the service far more attractive to the consumer.
V - Valuable, although it is not the most important thing.
R - Not rare.
I - Can be copied.
N - Not replaceable with anything when it comes to delivery.
I think my biggest advantage would have to be the fact that the delivery is free. That is going to be what drives people to use this service as opposed to any other. It will also be a way to convince restaurants to utilize us as opposed to our competitors because we are cheaper and more convenient for them, giving them an incentive to order more.
1. Social Capital - I have a close friend in Tallahassee, Fl who owns a food delivery service and is doing well, someone who I know would be willing to help me in the event that I wanted to open my own delivery service elsewhere or even join hands with him in business.
V- Very valuable. One of the most valuable, potentially, in the start of this business venture.
R - Very rare. Not many owners of third party delivery services out there that would be willing to help you.
I - Very hard to copy because this is rare.
N - Could substitute by knowing someone who already works for such a business, but they wouldn't be nearly as knowledgeable as the owner
2. Experience in the food industry - I worked at a donut shop for two years and we actually used a third party food delivery service so I know what it is like from both the business' perspectives and the delivery services' perspective.
V - Experience is needed in whatever you do to be successful so this is valuable.
R - Not rare. In fact, this is pretty common.
I - Easy to copy.
N - No problem substituting.
3. Financial Capital - Thankfully, I have very good credit which means that, more than likely, I can access most any form of capital if need be.
V - Very Valuable. One of the most valuable because I may not be able to start the business to begin with without this.
R - Not common
I - Not easy to copy.
N - You can substitute this either with an investor who has access to capital, or with a co-signer.
4. Persuasiveness - This one might come off as a bit cheesy, but sales is a huge part of this. Obviously, the only way for me to make money would be for the restaurants to make money as well, so I have to have them on board. Being able to convince them to work together with this food delivery service is something that I would need to be successful.
V - Not too valuable because you can hire others to do this part for you.
R - Not easy to come by
I - Yes, you can copy this.
N - You can hire professional staff that are already experienced so you can substitute for this.
5. Marketing - I have taken multiple marketing courses and have undergone marketing ventures for several businesses in Tallahassee, mostly restaurants, as a way to make money. I have proven results that have come directly as a result of my work.
V - Like #4, you can hire someone to do this part for you.
R - Easy to find.
I - Yes, you can copy this.
N - You can hire professional staff that are already experienced so you can substitute for this.
6. Free Delivery - This is what will attract the consumers to begin with and will serve as a big push for our sales.
V - VERY valuable.
R - Very few similar services in the country do this. Rare.
I - Yes, you can copy this.
N - You can really substitute this with anything.
7. Professionalism - Uniforms, Sales staff and communication.
V - Very valuable to any business, wherever you go.
R - Not rare.
I - Can be copied.
N - You can't really substitute this with anything, but it is easy to attain.
8. Culture of friendliness - Always being positive and happy towards the customers to make them feel warm and welcome.
V - Also valuable to any business no matter where you go
R - Not rare
I - Can be copied.
N - You can't really substitute this with anything, but it is easy to attain.
9. Online ordering for convenience with a user friendly interface
V - Valuable now that this is the direction most delivery ordering is headed.
R - Not rare. Found all over.
I - Can be copied.
N - The only real potential replacement would be by using an app to order.
10. Fast Delivery - This makes the service far more attractive to the consumer.
V - Valuable, although it is not the most important thing.
R - Not rare.
I - Can be copied.
N - Not replaceable with anything when it comes to delivery.
I think my biggest advantage would have to be the fact that the delivery is free. That is going to be what drives people to use this service as opposed to any other. It will also be a way to convince restaurants to utilize us as opposed to our competitors because we are cheaper and more convenient for them, giving them an incentive to order more.
I really enjoyed your list, Abraham. I think you had me at fast and free delivery. I think your social capital can really benefit you in the long run. Knowing someone that has run a business similar to yours can help you out a ton in the future. The fact you understand it from both perspective is extremely beneficial. If you have the time, check out my unfair advantage! http://tmvuf.blogspot.com/2016/03/my-unfair-advantage.html
ReplyDeleteHey Abraham,
ReplyDeleteI think you made a detailed list describing all your unfair advantage and how each of them are either valuable, rare, inimitable, and/or substitutable. In a college town like Gainesville where there are a lot of off-campus students and also on-campus students that sometimes do not even have time to go get food or are simply too lazy, a FREE and fast-delivery service could really flourish. If you want to check out my unfair advantage, here is the link:
http://andreacdona.blogspot.com/2016/03/my-unfair-advantage.html
I think an attractive element to the service that you're proposing is to make sure that your audience always feels engaged with it. Whether that is constantly doing promotions for deals and giveaways, hiring them or visiting their campus. Your list was very comprehensive, and I think you did a really good job of laying out the strengths in your plan.
ReplyDeleteMy Unfair Advantage: http://olivertelusmaiteblog3003.blogspot.com/2016/03/my-unfair-advantage.html