1 Name of student: Institutional affiliation: Name of professor: Date: 2 Company Name I chose the name Chop &It for my food delivery company. The name Chop &It is catchy and easily relates to snacks and food. The name Chop creates the image of chopping up ingredients. The company name also has a modern twist that uses homophones; it uses It to mean Eat. This gives the name a comical touch and makes it attractive to all age sets. Company Description Chop &It is a service company that delivers food and snacks to your doorstep in minutes, from the touch of a button. Chop &It really stands out from other food delivery companies and fills various gaps in the industry. Through the mobile application, the diner can use filters to help connect faster to their restaurants of choice. Some of the filters on the application are vegan, non-vegan, local cuisines and international cuisines. Through the use of artificial intelligence, the diners can also fill a short survey, which then customises the list of restaurants for them. This makes the experience of each diner different and tailored to their liking. Chop &It also offers subscription options for diners. For a small quarterly fee, diners can get coupons for meals, get access to restaurant offers first-hand, book reservations for restaurants near them, get access to catering companies, and even access worldwide food and drink recipes. Mission Statement “A one-stop connect to a tailor-made food experience.” Discussion Week 2 (SWOT Matrix) Student’s Name Institutional Affiliation Course Professor’s Name Date Discussion Week 2 (SWOT Matrix) Chop &It is a company revolutionizing the hospitality industry by providing timely delivery services of food and snacks to customers who place orders through the company’s digital mobile application to their doorstep. Additionally, Chop &It offers subscription options for diners where they pay a small quarterly fee and get coupons for meals, access first-hand restaurant offers, and book reservations for restaurants near them, get access to catering companies, and worldwide food and drink recipes. Strengths 1. Use of artificial intelligence in the user-friendly mobile application. 2. Taking advantage of customer loyalty. 3. Customers shift from physical Weaknesses 1. Inability to control nature like bad weather 2. The delivery fees, transaction fees, and cost of food might be expensive shopping to online delivery food discouraging customers from using services. online food delivery services. 4. Youthful, energetic, and motivated team with great sense of professionalism and customer service. 3. Stiff competition in this industry. 4. Challenges to maintain quality services Opportunities 1. The online food delivery services are Threats 1. Continuous need to advance the likely to supersize to $200 billion by digital platform and overall the year 2025. technology, which is costly. 2. Emergence of new market due to increase of the middle-class in the demographics. 3. Customer preference of online delivery services to physical shopping 4. Alliances and partnerships between online food delivery companies and restaurants and bars 2. Price wars by market leaders like Just Eat and Door Dash 3. Frequent changes in customer needs. 4. Employees poaching by large companies. 1 Discussion Week 2 (SWOT Matrix) Student’s Name Institutional Affiliation Course Professor’s Name Date 2 Discussion Week 2 (SWOT Matrix) Chop &It is a company revolutionizing the hospitality industry by providing timely delivery services of food and snacks to customers who place orders through the company’s digital mobile application to their doorstep. Additionally, Chop &It offers subscription options for diners where they pay a small quarterly fee and get coupons for meals, access first-hand restaurant offers, and book reservations for restaurants near them, get access to catering companies, and worldwide food and drink recipes. Strengths The company's strengthss includes the application of artificial intelligence in the userfriendly mobile application. The Chop &It digital platform is easy to navigate and friendly to the users and through AI technology, the customers can get personalized services. Additionally, Chop &It is likely to gain customer loyalty in that, once a customer is satisfied with certain delivery services, they develop a sense of assurance and thus will stick with the same service provider. Online food delivery services are in a growing industry because there are many entrants in this business willing to exploit the industry thus posing competition. The market niche has great potential because most households are opting for food delivery services rather than physical shopping. The strength our team members bring to the company is a great sense of professionalism and customer service where the team’s recruitment and hiring process was primarily based on merit and thereafter underwent thorough training on how to relate with customers. Weaknesses 3 The weaknesses Chop &It is likely to experience include the inability to control nature like bad weather. Harsh weather conditions are devastating to the overall delivery services providers and restaurants in the bottom line since they are likely to cause delays. Additionally, the delivery fees, transaction fees, and cost of food might be expensive discouraging customers from using online food delivery services. There is stiff competition in this industry since most of the largest international companies are diversifying to the online hospitality sector with leading competitors being Uber Eats, Just Eat, Door Dash, and Takeaway.com. Maintaining quality services will be challenging since the restaurants will significantly determine the delay time, convenience, and quality of food, which are core components of creating clients' trust. Opportunities Chop &It opportunities include the online food delivery services are likely to supersize to $200 billion by the year 2025 (Singh, 2019). In a broader sense, it means that the company is exposed to endless unexploited opportunities in the market, which are likely to lead to overall company growth. Currently, there is an imbalance in the market since the demand for online delivery services is surpassing the supply, giving Chop &It an opportunity to have new customers after a short period. Although the larger corporations are introducing new products to match the needs of small market niches to dominate the overall company, the market is not yet saturated. The new market is emerging due to the increase of the middle-class in the demographics and changing tastes where people currently prefer online delivery services to physical shopping. We cannot ignore the alliances and partnerships between online food delivery companies and restaurants and bars which are significantly expanding the market. Threats 4 The major threats facing Chop &It include the continuous need to advance the digital platform and overall technology, which is costly. The company is likely to increase its expenditure to ensure it stay abreast with the latest trends in terms of technology and systems to maintain its edge against competitors. There exist market leaders like Just Eat and Door Dash who are well established in terms of assets and systems making it difficult to compete with effectively. These companies at times provide services at cheap prices to scare away competitors and gain a larger market share through a downward pricing strategy. 5 References Singh, S. (2019). The Soon To Be $200B Online Food Delivery Is Rapidly Changing the Global Food Industry. Forbes. Retrieved 10 April 2021, from https://www.forbes.com/sites/sarwantsingh/2019/09/09/the-soon-to-be-200b-online-fooddelivery-is-rapidly-changing-the-global-food-industry/?sh=5211a052b1bc. 1 Target Market Student’s Name Institutional Affiliation Course Professor’s Name Date 2 Company Description Chop & It is a game-changing food delivery organization that operates in the food and beverages, hotel and restaurant and technology industry. The organization plans to deliver food services by connecting customers from their remote locations to restaurants in their areas on the map. Customers will have the leisure of making periodical subscriptions to receive online and automated services for their food delivery through this company. Demographic Description Chop & It targets customers of all age groups ranging between children from the age of 8 and the elderly adults. However, the company mainly targets teenagers and mid-aged adults because of their youthful vigor and desire to promote local businesses. The company targets customers with a mid-level of income who earn between $5,000 and $15,000 per annum and have attained at least a high school diploma. Food delivery will be done to people of all genders and races. Geographical Description Chop & It will serve clients in the urban and the suburban areas of Atlanta and as the company grows, it will spread out to the rural areas and to serve more than one state. At the moment, the focus is one urban and suburban regions of Atlanta because of distance and climate considerations in order to prevent the food from getting cold and to ensure faster and easier access to clients. Lifestyle Description 3 Chop & It will serve customers who are remote workers who prefer to work in their home environments, people in offices whose busy schedules will not allow the time to visit a hotel or restaurant to grab a meal, and clients who would like to have their meals delivered to their homes. These clients consist those who either have cars or use public transport, but would want to save the cost of having to move to their preferred restaurants. Psychographic Description The clients for Chop & It are expected to mainly consist of trendsetter personalities, who have an eye for new business ideas which fuse with the popular culture today. It will also consist of professional individuals who hold both average and high positions in society. It is also suited for fun-seeking individuals who are tech-savvy since they will be concerned about the benefits offered by the artificial intelligence capacity of the company. Purchasing Pattern Description The target market of the company is expected to make orders for food delivery as frequent as four to five times in a week. They will be making these orders from thir respective locations by having to place orders via the company’s app. Buying Sensitivities Description The factors which are important to the customer before buying include price, since they will have to cater for costs of the meal ordered, transportation costs and the online hosting service for the food. Customers will be concerned about quality, since they want the best quality of meals at affordable prices 1 Name of student: Institutional affiliation: Name of professor: Date: 2 Company Name I chose the name Chop &It for my food delivery company. The name Chop &It is catchy and easily relates to snacks and food. The name Chop creates the image of chopping up ingredients. The company name also has a modern twist that uses homophones; it uses It to mean Eat. This gives the name a comical touch and makes it attractive to all age sets. Company Description Chop &It is a service company that delivers food and snacks to your doorstep in minutes, from the touch of a button. Chop &It really stands out from other food delivery companies and fills various gaps in the industry. Through the mobile application, the diner can use filters to help connect faster to their restaurants of choice. Some of the filters on the application are vegan, non-vegan, local cuisines and international cuisines. Through the use of artificial intelligence, the diners can also fill a short survey, which then customises the list of restaurants for them. This makes the experience of each diner different and tailored to their liking. Chop &It also offers subscription options for diners. For a small quarterly fee, diners can get coupons for meals, get access to restaurant offers first-hand, book reservations for restaurants near them, get access to catering companies, and even access worldwide food and drink recipes. Mission Statement “A one-stop connect to a tailor-made food experience.” Running Head: COMPANY DESCRIPTION AND SWOT MATRIX Company Description and SWOT Matrix Student’s Name Institutional Affiliation 1 COMPANY DESCRIPTION AND SWOT MATRIX 2 Company Description and SWOT Matrix Chop& It food delivery company provides delivery services for food and snacks. Chop& It has an application and a website that allows its customers to browse and order food and snacks from various options from local and national participating restaurants. The company uses a creative and unique name that distinguishes it from other food delivery companies and appeals to all potential customers, including the millennials. The name, as it goes, has used the word Chop, which relates to chopping ingredients used in the delicious food from the best choice restaurants, delivered by the company. In the company name, the word 'It,' is used as a homophone for 'Eat,' giving the company name a comical touch to appeal to all age sets. Mission Statement “Chop& It is the most convenient way to get your tailor-made food and snack delivered.” The company has a short but precise mission statement that captures what the company represents in its operations and how it intends to fulfill the mission, all in one sentence. The mission statement has three key elements, convenience, tailor-made, and delivery. The company does not just deliver food and snacks. It is more than committed to ensuring that the customers get their food delivered in the most convenient way possible in terms of accessibility, cost-effectiveness, and efficiency. The company offers tailor-made to give the customers control of their individual health needs. The company has a plan that fits individuals' different nutritional needs, including vegetarian and vegan. The third component is to provide a unique delivery experience to all its customers through its reliable services. It delivers food and snacks at their doorsteps at the click of their computers or mobile phones. Trends in the Food and Snack Delivery Industry COMPANY DESCRIPTION AND SWOT MATRIX 3 The demand for food delivery services dramatically increased over the past few years, with the millennials as the critical trendsetters for the needs in the industry. Researchers in the food delivery industry have forecasted an over 65% increase in delivery demands, meaning that food delivery will become the second most preferred food option after table services. Takeaway food delivery services are also increasing in the food delivery industry, with a forecast growth of over 31% increase over the next few years. The millennials always spend most of their budgets to purchase food through their mobile apps and the internet compared to other generations like generation Y that prefers eating at quick-service restaurants. Thus, the millennials are the priority target audience for food delivery services (Cho et al., 2019). The millennials have more extensive spending power on food delivery services. But they also have high expectations for the food and snack delivery services including, instant delivery, effortless ordering, and one-step checkout. In essence, the millennials are the trendsetters in the food delivery industry based on their unique expectations and experiences. Another trend in the food delivery industry is the emergence of new delivery channels, including smart devices, social media cars, and virtual assistants, among other delivery options. Customers constantly seek the easiest and most convenient ways to place their orders and excellent customer experience. Customers increasingly place their orders through social media platforms like Twitter. Others order their food and snacks through a virtual assistant, which allows the customers to interact with Artificial Intelligent devices, including robots, to customize their deliveries. Besides, customers can now place their orders through smartwatches, smart TV, and from their cars. Subsequently, preferred payment options are also a new trend in the food delivery industry. Many consumers prefer fixed pricing options that allow them to pay immediately after ordering their preferred food and snacks. Apart from the ideal payment methods used currently, including credit cards, other payment methods are emerging, including biometric COMPANY DESCRIPTION AND SWOT MATRIX 4 control payment options. Besides the food delivery industry, participants embrace new niches, including pet food applications, food waste applications, and applications that have virtual kitchens. The company needs to watch out for the food and snack delivery industry trends to ensure that it always stays ahead of its competitors in this dynamic market. Strategic Position Chop& It focuses on innovation to ensure convenience and strategically position itself in the food delivery market. With the new mobile application, the company constantly innovates on the better customer experience of restaurant deliveries. Convenience has increasingly become the most sought-after element in food delivery experiences, given global lifestyle changes. Continually innovating to offer more choices, personalizing, and speed optimization will ensure that it provides unique delivery services (Griesbach et al., 2019). Using a single application, the customers can order their food and snacks at any time. The company constantly sets up more innovative logistics to ensure faster delivery times. Besides, the company provides a customized customer experience by giving customers the services that best fit their food and snack needs conveniently, setting the company apart from its competition in the food delivery industry. Distribution Channel The company has partnered with local, national, and international restaurants to deliver food and snacks to the customers at their homes, offices, businesses, and outdoor events. The delivery channel consists of three key players, the customer, the delivery partner, and the customers (Lee et al., 2019). The company has partnered with motorists and cyclists to deliver food from the customers to the customers. Chop& It considers adopting modern delivery options such as robots and drones in its distribution channel to ensure that food and snacks get to the COMPANY DESCRIPTION AND SWOT MATRIX 5 customers within the shortest time possible. Essentially, the distribution channel consists of the company, the restaurants, and the customers. SWOT Matrix It is essential to analyze and map out its current strengths, weaknesses, opportunities, and threats in the food delivery industry to achieve its goal of $1million in sales by its second year. Its key strengths are a high level of customer satisfaction through its dedicated customer relationship management that has ensured customer satisfaction and loyalty to the company. The company's weaknesses include maintaining the service quality and the aggressive competition from established companies in the food delivery industry. The new trends in consumer behavior changes present an opportunity for the company to diversify into new niches and build new revenue streams. The increased online customers offer an opportunity for the company to invest in new online sales channels. The primary threat for the company is the changing consumer buying behavior that threatens the existing physical restaurants, which play a vital role in the food delivery industry. SWOT-analysis helps the company identify the most appropriate strategies to exploit the opportunities in the food delivery industry and counter threats while building on the strengths and eliminating weaknesses in the company. COMPANY DESCRIPTION AND SWOT MATRIX 6 References Cho, M., Bonn, M. A., & Li, J. J. (2019). Differences in perceptions about food delivery apps between single-person and multi-person households. International Journal of Hospitality Management, 77, 108-116. Griesbach, K., Reich, A., Elliott-Negri, L., & Milkman, R. (2019). Algorithmic control in platform food delivery work. Socius, 5, 2378023119870041. Lee, S. W., Sung, H. J., & Jeon, H. M. (2019). Determinants of continuous intention on food delivery apps: extending UTAUT2 with information quality. Sustainability, 11(11), 3141.
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