Order Organic â€“ Due Diligence Case Study Analysis
The case report performs due diligence of the business plan of Order Organic by analyzing the strengths and weaknesses of the business model. It further provides recommendation and possible solutions to overcome the weaknesses identified in the business model in order to increase the probability of business profitability and success.(Nambiar, 2019)
A detail description of the core strengths of the business plan has been provided in appendix 3 of the case report.
As per the value chain model proposed in the business plan, the organization will not control the distribution channel and production part of the value chain, which are considered to be core components of the business model; therefore, the entrepreneurs will not have the freedom to operate the business model. The founders will not be able to control the quality of the products and the distribution of the products which will refrain the organization to employ sustainability measures.
Furthermore, the organization will not be able to reach the end users as a result of lack of control over the distribution system. In addition, the technology used by the organization in the initial phase involves connecting the consumers with the restaurants which is not new in the industry considering the existing players in the online organic food delivery business employs he same technology. Although, currently it does not own the complementary assets to reach the end user as products will be distributed directly by the restaurants, the business will own the assetsÂ in the third phase of the business plan where meals will be delivered through a bike owned by the business.
Additionally, the organization used a dual approach towards pricing i.e. used both comparison pricing method and bottom up pricing method as an average price per order amounting to 20 has been assumed along with charging mark up of 15 percent over the chefâ€™s dish price which appears to be unrealistic as the business is new in the industry.
On the other hand, various other weaknesses have been witnessed in the business plan which includes ineffective marketing method as word to mouth marketing strategy will not enable the organization to achieve significant market share initially and build customer awareness.
In addition, the intense competition in the region might restrict the organizationâ€™s ability to capture significant market share as the downstream industry is concentrated considering, Thuisbezorgd and UberEats dominates the entire organic food delivery industry. Furthermore, the category C of the business plan which includes employing a sustainable supply chain in the phase 4, focusing on farming, packaging, transportation and delivery might be difficult for the organization might be difficult as the farmers might not cultivate organic food due to high regulatory requirements and limited support from farm suppliers such as lack of supply of organic pesticides…………………………
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