Business Concept -
First Aid Help Supplies is the proposed name for a Novocastrian small business thatsupplies first aid supplies to meet Work Health and Safety (WHS) standards in workplaces (Safe work Australia, 2019). The enterprise will be small in size, comprising of two employees including the GeneralManager and an assistant. Despite its size, the business will service over 1500 clients in thewider Newcastle area. The company shall be providing first aid products, services, and training to the people who are seeking the service. Every company needs to have first aid supplies in their vicinity to attend to the injuries which are caused at work before the help arrives. The following sections will cover the two analysis which is conducted for understanding the feasibility of the new business venture. The market feasibility analysis assesses the strategic competitive advantage that the business will have within the industry, determines the target market and the competitors which will be supported by industry and government reports, and market trends. While Technical product or service analysis assesses the availability of the resources for the business which shall explain if the resources and capabilities are available for converting the idea into an operating business.
Target Customers -
The target customers are the group of people that the business wants to reach through the marketing initiatives. They are the people who are targeted to purchase the products and services offered by the company (Ascarza et al. 2017). The business will provide service to clients in the construction, manufacturing,government, administration, education, sporting clubs, commercial and residential industries. This makes all the business places a potential client for the company.
Market Size -
The potential servicing client or the buyers of the product comprises of the market size (Min, Kim & Zhan, 2017). There are about 15000 business houses in the NSW area of Australia. Thus, targeting 1500 customers for the first few years would be a good scope of business. The clients would belong to construction, mining, education, commercial and residential industries. As generating business from them would be an easier option than contacting and generating business from the government business centres.
Customer Value -
The benefits that the products and services offer to the customers is known as the customer value (Kumar &Reinartz, 2016). The business will help the customers reduce the number of workplace accidents through first aid trainings. It will also help in the creation of a positive work environment. Also, help their customers in maintaining a list of safety kit that is essential for maintaining in a company. Along with building a reputation for the companies of being a safe place to work in. And most importantly, it will help treat the employees in case of emergencies, according to Work Health and Safety standards.
Strategic Competitive Advantage -
The factors which ensure that a company is offering better products and services to its customers than the competitors are known as having a strategic competitive advantage (Rothaermel, 2016). The initial Strategic Competitive Advantage will help the company to have a superior range of products (Danso et al. 2019). Help the company to have a reputation for providing good quality products on warranty at provides delivery, and expert advice on the products. Thus, ensuring that the clients feel more safe and secure to be associated with the company.
The business does not have a lot of competition in the Newcastle area of NSW Australia. The few competitors that the company has provided similar products and services to their clients. And also target the same target market in the area. However, the products that they provide are not if high quality. They do not provide warranty to the customers on their products, additionally,they do not provide robust training about the products and services which can help the company have products according to the standards set by the Work Health and Safety. The competitors also do not offer free complimentary delivery of products, replacement, or installations.
Furthermore, the services offered by the business venture may not be unique but they are valuable and convenient for the companies because they can outsource the safety requirements of the Work Health and Safety standards to the experienced personnel who will be responsible for ensuring the supply and installation of the correct equipment effectively and efficiently (Grayson & Hodges, 2017).
Since businesses cannot escape the WHS requirements of having the first aid supplies in the workplace, the products provided by the company are not rare, but they are essential and must-have products in the office premises.
The cost at which the customers would purchase the product or service is known as price (Ushchev&Zenou, 2018). Since the business will be under the establishment phase of the business lifecycle, the pricing of the products will be a challenge and will have to kept at competitive prices to have steady profits in the maturity period. Products would be priced competitively to cover the cost which will be incurred for the promotion and marketing of the business venture (Anderson, 2020).
Distribution channel -
The distribution channel suitable for the business as decided is the manufacturer to wholesalers to the final clients through the delivery company (Ayala et al. 2017). The business venture will tie-up with the delivery partners who would help in the delivery of the product from the wholesalers to the end client. This distribution system is decided to keep in mind that the business venture, in the beginning, does not have the capital to invest in the space and capacity to manufacture or store a huge volume of the products for direct delivery from the manufacturers. Thus, an intermediary is chosen for the effective and efficient distribution of the products.
Estimated Market Share in the 1st, 2nd and 3rd year -
The initial market share will be less, however with the increase in time, and marketing efforts the market share would increase as there are a lot of companies but few suppliers in the First Aid supplies and training. The expected market share in the first year is to reach 10% of the total market, with a 15% increase annually. Additionally, the long term goal is to achieve maximum market share by 3-5 years of business operations.
A technical feasibility study assesses the details of how a business venture intends to deliver a product or a service to its customers (Mukherjee & Roy, 2017). It is the tactical or logistical plan of how the business will produce, store, deliver, and track its services and products.
Product’s Distribution -
First Aid Health Supplies are to be sourced at cheap prices from the manufacturers and wholesalers alike, so that for if the project is bigger which can be directly transported from the manufacturers’ delivery plant to the client’s workplace. And if the order is small then from the wholesalers to the client’s place. Additionally, it is important to find the right delivery partner who would help in delivering all kinds of orders of the products and services to the different clients at various locations (Visnjic, Neely & Jovanovic, 2018).
Technological requirements -
A Website will have to be generated through which the clients will be able to place the orders. These orders will then be placed to the manufacturers or wholesalers, so that the products and be packed and kept ready for being transported.
Financial Terms -
The products from the manufacturers or wholesalers will be taken on credit and payments will be made to them after 30 days. While the orders will be placed from the clients on the advance basis and complete payments will be taken from them at the time of completion of the delivery and installation.
Facility Requirements -
An office for a minimum of 10 people will have to be established which would accommodate: one founder, one human resource, one admin, three marketing people, and four customer representatives. Thus, a facility with basic amenities like a pantry, a conference room, a security person, two separate washrooms, and a sitting area would be required, along with a Wi-Fi facility and tea and coffee machine. Systems will also be provided to everyone for the facilitation of the work.
But, initially, the work will be furnished from the house of the founder, this would help in reducing the operational costs in the beginning. As the business venture grows the company will hire a professional place for the operations with all the amenities stated above.
Product and Service Description -
It is the requirement of Work Health and Safety standard to have first aid kit, a first-aid attendant, and provision of first aid training to all the enterprises in the country (Selman et al. 2019). Because accidents can happen at any time and anywhere, thus, having first aid ready in the workplace can ensure that the injured person is tended to till the professional service arrives. This would ensure that the workplace is safe for the employees, which would help in increasing the positive goodwill of the company. Also, when the company offers first aid training to its employees, employees get a feeling that the employers care about them which leads to a productive work environment in the company (Noe & Kodwani, 2018).
The product being offered is not unique thus sourcing them will not be a major issue, thus making the availability of the products feasible.
A local hospital would be contacted for sending their experienced nurses who will be able to train the people in the companies on the first aid, its importance, and its techniques. This would ensure that the training given to the employees is given through trained personnel reducing the chances of errors and ensuring satisfaction.
Experience specifications -
Through ease in the availability of the products, services, and training the business venture will ensure that the customers do not have to worry about complying with the requirements as set by the Work, Healthy and Safety.
Staff Requirements -
Initially, the number of people associated with the business venture will be the founder and a customer relations officer who will also be responsible for consultations and installations.
The technical work such as making contracts will be done through freelancers or other contractors.
The work description of the founder includes: managing the legal aspects (contracts and so on), structure and organize the financial requirements such as taxes, balance
sheets, profits and loss, and so on, develop and manage the list of products and services, handling negotiations with both the clients and the manufacturers, have a basic understanding of the website, and online marketing.
The work description of the customer relations officer will be to contact the potential client and arrange meetings with them, ensure client satisfaction, and resolve queries and dissatisfaction.
As the people increase so would the work profile, but the founder will then manage things from the backend.
The founder and the customer relations officer do not require formal training, however, it would be beneficial if they both knew about the products and services which are essential for the successful establishment and commencement of the business activities.
A few limitations or threats that this new business venture project can face are an increase in the online-transactions, reduced cost of freight and online shopping, which forces the traditional bricks and motors shops who have higher fixed costs have to compete with the virtual businesses. With the increase in globalization, increase in the online service providers of similar products at lower prices is a significant risk for the business, as the businesses in the traditional selling mode will not want to spend in the extra services rather just fulfill the minimum criteria of the Work Health and Safety Standards. Furthermore, limited information about the minimum requirements for the Work Health and Safety requirements is also a threat.
Analyzing from the above discussion, the business venture is feasible as the products being offered are not difficult to manage products, they are easily available. However, the company needs to have a competitive advantage over its competitors by providing enhanced value to the customers for being a successful venture.It is believed that the new venture has the potential to be successfully commercialized. In the light of the limitations, being able to provide its customers an added advantage will help the business venture to generate revenue no matter how many new players join the business, and once the business venture is a successful online retail shop for the clients can also be developed which would further help the company grow in the area.
Anderson, D. M. (2020). Design for manufacturability: how to use concurrent engineering to rapidly develop low-cost, high-quality products for lean production. CRC press.
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Ayala, N. F., Paslauski, C. A., Ghezzi, A., & Frank, A. G. (2017). Knowledge sharing dynamics in service suppliers' involvement for servitization of manufacturing companies. International Journal of Production Economics, 193, 538-553.
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Safe Work Australia. (2019). Model Code of Practice: First aid in the workplace. Retrieved from https://www.safeworkaustralia.gov.au/doc/model-code-practice-first-aid-workplace.
Selman, J., Spickett, J., Jansz, J., & Mullins, B. (2019). Confined space rescue: a proposed procedure to reduce the risks. Safety science, 113, 78-90.
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