Market Opportunity Assessment (MOA)
Market Opportunity Assessment is an activity that takes place whenever new developments of products are being brought up, or when entering into new markets. This assessment is usually done to help understand the size of the market as well as the barriers and requirement to entry for the market.
The innovative opportunity in this case, focuses on a different aspect, where some companies previously tried to venture into the opportunity but failed. Many online service providers have found it a challenge to sell fresh groceries online, due to a number of factors that are associated with the products such as their portability level and also the cost involved in maintain the products and delivery costs. However, since a number of people are embracing online shopping, there is need to come up with the proper strategies and facilities that will help customers purchase fresh groceries as they purchase other food stuffs. Most customers prefer purchasing groceries at retail stores where they are able to examine them physically to assess their ‘freshness’. Therefore, coming up with this strategy and facilities that would enable customers believe and trust the sale of groceries online would be a big business investment in the e-commerce business.
Amazon therefore as it operates its online business for groceries, they should ensure that they have captured a large number of customers trust to attract more customers, and this will also create a barrier to new entrants into the market. However, for the available competitors, the online providers should focus on the weaknesses of their competitors and creating opportunities through them. Considering the level of product demand and the level of online shopping, would create a first step for the business opportunity, by taking advantage of the weakness of other online stores.
Due to the rapid growth of technological aspects that a number of people are adapting to in order to save time and attend to other activities, online selling is one of the few technological changes that are highly being practiced and therefore there is need be Amazon to consider selling fresh grocery since they are necessities in households. The fact that groceries are highly perishable goods, most online stores will hardly try to include fresh grocery selling due to this fact. However, in order to create more sales and customers, Amazon needs to introduce selling of fresh groceries in its online stores. The main objectives are to create efficiency to customers when they need to purchase the groceries, since they believe in touching and feeling fresh products for their selection. Therefore, by creating the most efficient strategies, Amazon will be able to dominate its competitors by the time they start adapting to the changes made.
Delivery infrastructure would be first the main strategy for this opportunity to be workable. The fact that Amazon will be dealing with perishable goods when poorly handled, it will have to consider coming up with means of transport that will ensure that the foods are well maintained for a period of time and the means of transport should be highly reliable, even in cases of unavoidable circumstances. Therefore, the online store can consider using well customized vehicles, able to keep the foods at their right temperatures, for online orders made for short distances. This will therefore cost the online organization much money and the organization would need to come up with prices of delivery to their customers, to cater for the extra expenses. For the quoting of these prices to customers however, the online store should ensure that their pricing tags (including the costs of delivery), should be efficient enough, where the customer will spend less amount for delivery of groceries as well as less time (Kornum and Bjerre 2). This will create confidence from the customers, and therefore Amazon will get more online orders which will reduce the operation costs.
Moreover, all the strategies set by the online store to ensure that the grocery services is performing positively, there is need to undertake a feasibility study of the whole market, to understand the issues that would make the operations and those that would break the operations. By considering whether the market is large enough, it is important for the online providers since they will be able to understand if their set barrier into entering the market or not. The suppliers objective, is to maximize on its profits and through this study, they will be able to know whether entering the market is worth it or not. However, considering the technical feasibility enables the online providers to come up with information and conclusions regarding on the viability of the business venture. Moreover, consideration of financial feasibility is also a vital consideration of the online providers, to ensure that they are entering the market with enough capital that would support their business goals (Vyge and Dianne 128).
Business plan is one of the major concepts of market opportunity assessment, and it is usually meant to identify new needs that the customers and the product concepts. The plan contains a description of the market opportunity and strategies needed to implement the opportunity. Product definition is also another concept in market opportunity assessment and it focuses on integrating multiple and conflicting objectives (Moskowitz, Jacqueline and Anna 210). In this process, it basically tries to answer the questions; who are the consumers? What the consumers expect? How to meet the consumers’ expectations?
Comparing the level of online selling in the previous years, there is an advantage for the online store to engage in selling fresh groceries on their sites.
|Year||Online Sales in US $ (billion)||Percentage increase|
|2011||197||From previous year 12|
Product implementation and marketing will also be a consideration in this assessment. In this process, the online providers will be able to understand whether their services and the quality of their groceries, meet the consumers’ expectations. If no, the providers will need to come up with new strategies for the market and if yes, the management will have to find way to market the online services. By creating awareness to a large group of people, it will increase the chances of more people considering Amazon’s services and groceries, to other competing online providers. Great marketing strategies will be needed by Amazon for the purpose of maximizing awareness of their services.
The product launch and evaluation process focuses on how the services and product are designed to meet the expectations of the consumers. The Amazons groceries should be well packaged and ensuring they are fully fresh before packaging, then storing in the groceries in temperatures that will not destroy the fresh groceries and deliver to their consumers. The online providers should actually come up with different grocery stores in different towns, where the headquarters provide fresh food on a daily basis to the stores -depending on the level of demand in an certain area- to ease the mode of delivery. That is when launching, the online services, there is need that they offer information of all the grocery stores, as well as their headquarters, to ensure the customers do not have any problem or challenges when trying to get their services. Building customer’s confidence will be a great step for Amazon to have a successful business venture.
Businesses tend to flop at times by lack of ensuring that they maximize their opportunities to ensure that their business performs better. Business management should focus on how much the resources available in their organization can be used to maximize on their profits, and also spare their time. The Amazon management should therefore come up with ideas and rules that would govern the use of the resources available for their online groceries services, to ensure that more time is saved and customers are satisfied. For instance the services of delivery to different customers are a way of turning the online business into a scalable business. By meeting the full needs of the customers, in this case keeping time and delivering right quality groceries, is a way that the customers would be able to trust the online providers groceries and services. The online service provider’s should also ensure that they relate their strategies and plans to the future (Port 99). An organization that on focuses on its present is likely to flop. For instance for a grocery store, the management need to undertake more researches on how the availability of different groceries vary with seasons, they should therefore ensure that for them to be able to supply fresh groceries to their clients, that they have facilities that can keep groceries fresh for a longer period of time, that is with respect to the study’s conclusions of a groceries perishable period. This will help cater for a more customers during the low season period of a certain grocery food.
Amazon could also ensure this business plan becomes scalable by ensuring that they get information frequently from their customers as well as from others who hear about the services and goods provided by the online store. This will help the online store to consider making improvements on any issues and also maintaining the appreciated aspects as well. Since it is a business that would be focusing on frequent activities taking place daily, these gathering of information would be a good plan for formulating strategies for the future. However, the Amazon should not compromise in quality of their products as well as delays of customers demands, to avoid other competing parties do not take advantage of what they poorly offer and make them their opportunity. There is need for the online store to have their produce examined before departure to their clients to boost trust from customers.
A positive business culture is an important aspect for the online providers to ensure that employees are able to work together swiftly, where each of them will be able to play different roles for the development of the organization. However, Amazon should also ensure that it develops a stable relationship with their employees where the employees are allowed to contribute ideas to that would help the organization. Having this relationship also helps the management to be aware of ongoing activities of their competitors, where they will be able to update their strategies to dominate their competitors in the market.
Kornum, Niels & Bjerre Mogens. E-commerce: Consumer Behavior and Business Strategies. Edward Elgar Publishing: Cheltenham, 2005. Internet resource.
Moskowitz, Howard R, Jacqueline H. Beckley, and Anna V. A. Resurreccion. Sensory and Consumer Research in Food Product Design and Development. Ames, Iowa: Blackwell Pub, 2006. Internet resource.
Port, Michael. Beyond Booked Solid: Your Business, Your Life, Your Way-It’s All Inside. Hoboken, N.J: Wiley, 2013. Internet resource.
Vyge, John, and Dianne Buckner. The Dragons’ Den Guide to Assessing Your Business Concept. Hoboken: Wiley, 2012. Internet resource.