Assignment Individual Business Model Canvas (BMC) Report PDF

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Assignment Individual Business Model Canvas (BMC) Report...

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FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

BUSINESS MODEL CANVAS (BMC)

FOODPANDA MALAYSIA SDN BHD SOLE PROPRIETORSHIP

PREPARED BY

FACULTY & PROGRAMME : FACULTY OF BUSINESS MANAGEMENT (BA111 DIPLOMA IN BUSINESS STUDIES) SEMESTER

: PART 5

PROJECT TITLES

: BUSINESS MODEL CANVAS (BMC) REPORT

NAME

: FARIHAH BATRISYIA BINTI ABDUL RAHIM

UITM ID NO

: 2018416044

CLASS

: MBA111 5C

PREPARED FOR MADAM NOR TASIK MISBAHRUDIN SUBMISSION DATE 20 JANUARY 2021

TABLE OF CONTENT

NO

TITLE

1.0

INTRODUCTION

2.0

IDENTIFICATION, EVALUATION AND EXPLAINING THE

PAGES 1-2 2

NINE BLOCKS OF BMC

2.1 KEY PARTNERS

2-3

2.2 KEY ACTIVITIES

3

2.3 VALUE PROPOSITION

4

2.4 CUSTOMER RELATIONSHIP

4-5

2.5 CUSTOMER SEGMENT

5-6

2.6 KEY RESOURCES

6-7

2.7 DISTRIBUTION CHANNEL

7

2.8 COST STRUCTURE

8

2.9 REVENUE STREAM

8-9

3.0

BUSINESS MODEL CANVAS (BMC)

10

4.0

APPENDICES

11

5.0

REFERENCES

12

1.0) INTRODUCTION

Nowadays, food delivery service is a very common service provided in Malaysia. These recent years, where everything is just a click at the fingertips or swipe away on a card, and now having food delivered is an option for people. Foodpanda is one of the famous services of food delivery in Malaysia. In recent times, food delivery services have become more competitive. And currently, food delivery services in Malaysia do not only have Foodpanda but there are also Grabfood, The Naked Lunchbox, Mammam Deliveries, Bungkusit, Epic Fit Meals co. and etc. Foodpanda operates in about 50 countries and was one of the world’s largest online food ordering marketplaces that were owned by the company Delivery Hero SE based in Berlin, Germany. Foodpanda is mostly active in Bulgaria, Romania, and the Asia Pacific. The Foodpanda service allows customers to pick orders from nearby restaurants through its websites and smartphone apps.

There are a few steps to place orders. The way customers to take an order is firstly by inserting their postcodes on the web and looking for menu food from a list of restaurants. They can choose a delivery area or nearby restaurants. Next, check out the menu and make an order. They can choose the food they want to order before submitting an address and heading to the checkout. Then, choose the payment method of orders whether using online payment or cash delivery. An SMS will be sent out by Foodpanda to validate orders and their approximate arrival time. And lastly, the meals that customers placing orders will be delivered by delivery riders. Customers can check and make a comment about the restaurant sales, delivery, preference, taste, and overall experience of restaurants on the restaurant page review forum by Foodpanda. In this way, the customers can make a judgment by seeing the rating given by previous customers before placing the orders.

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More and more businesses are entering this sector in recent times due to modern life. The modern busier life such as who do not have time to go out to buy food, working late at night which makes them tired and lazy to cook, lazy to eating out, and especially when the country is hit by the covid-19 epidemic, they cannot go out for a leisure walk to eat and thus they have to order food using online food service delivery. And today, the task of ordering food online has been made even easier for millions of people all over the world with the help of these online food ordering services. The nature of business Foodpanda is to provide an online platform to allow transactions between third-party sellers and buyers, provide workers with food handling training, and engage in food delivery. Foodpanda is a private company associated with the food and beverage industry.

2.0) IDENTIFICATION, EVALUATION AND EXPLAINING THE NINE BLOCKS OF BMC

2.1 KEY PARTNERS

2.1.1) Partnership with local restaurants.

In these recent years, Foodpanda has 14 000 riders and offers more than 20,000 partner restaurants. Foodpanda make a partnership with many local restaurants in Malaysia. Anyone can use the app Foodpanda whether on a smartphone or website to find favorite restaurants nearby and order their favorite dishes, favorite drinks, and even groceries. Foodpanda is very known to local people so it became the main place to order food because it can be ordered in any type of restaurant anywhere in Malaysia. The platform of Foodpanda offers the menu of their own restaurants with which aggregate of restaurants all around Malaysia. Foodpanda giving customers the choice of more menu food that adding variety and flavor to customer's preferences to maximize their satisfaction.

2.1.2) The delivery riders.

Foodpanda makes it easy for customers to order online food and get it sent to them instantly. This an advantage of today especially, during the restriction of Movement Control Order (MCO) in Malaysia due to crisis covid-19, where most of the people

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have to stay at home or work from home while frontliners work outside. Fortunately, on this day, the people can avail themselves of delivery companies to order online food delivery. Since MCO, restaurants that have stopped accepting dine-in customers will switch to online platforms to take orders. So, more customers are dependent on food delivery services for their daily meals with the expanded MCO in full swing. This is where, considering the weather conditions or threat of Covid-19, the contribution of food delivery riders is crucial in successfully providing meals to customers.

2.2 KEY ACTVITIES

2.2.1) Build a relationship with retail stores.

In this era of globalization, busy life is ordinary in modern times. It appears to be that 24 hours of a day is simply not enough to fulfill everything on our to-do list. All of us have to juggle studying or working with obligations at home, make errands, paying bills, and many more. Nevertheless, now people can turn the option to grocery delivery online shopping with Pandamart for household needs and essentials on the same day. There are a few advantages of Pandamart, among them is to avoid the cashier queue is too long, to avoid the crowded malls, to avoid parking in malls that are non-existent or already full, and more importantly, it can save time and money. For those who want to rush buying necessities, Pandamart makes it easier to get them delivered to the front door of the home rather than travel to supermarkets or malls. 2.2.2) Hire delivery supplier freelance or full time.

Many people are willing to work more than one job at a time in order to cover monthly expenses to live. Currently, one job is not enough to cover monthly expenses. Especially when the family has many members to bear. Occupations that are often an option to make a side income are food delivery or food delivery rider. Foodpanda offers opportunities for jobs to help people to make money income. Particularly, during covid-19 where the economy is declining, the people are desperate to find a job to earn an income. So, jobs like this were an opportunity since many employers fired their employees to cover production costs on the company or reduce their wages.

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2.3 VALUE PROPOSITION

2.3.1) To provides customers with an easy and secure way to order from the best takeaways in their area.

Foodpanda is the first food delivery service established in Malaysia and already in the market for almost eight years. The choice of food would not run out as Foodpanda partners with many restaurants on the platform. Foodpanda also has the option of pick-up, which allows ordering beforehand, pick-up without queuing, and delivery fees aside from delivery. Those who have no time to go out to buy food, lazy to cook, and lazy to eating out can try the Foodpanda delivery service. Foodpanda covers the market quite well because they are the first in the market and known among Malaysian people. Although there are new delivery food services such as Grabfood, The Naked Lunchbox, Mammam Deliveries, Bungkusit, DeliverEat, and RunningMan however, Foodpanda is still the best choice of the people.

2.3.2) To place orders at local restaurants via its website or mobile app.

Before Foodpanda was established, delivery services were usually for fast food restaurants or known as franchises restaurants such as Pizza Hut, Domino's Pizza, and McDonald's. And today, with Foodpanda people can eat food from local restaurants other than fast foods. They can use the Foodpanda delivery service to make an order. Foodpanda also is the best option for those who lazy to cook and do not like leaving the house for a takeaway. Currently, with the occurrence of covid-19, the government in Malaysia has made restrictions known as the Movement Control Order (MCO). So, those who want to eat food from local restaurants can use Foodpanda to orders from home because many restaurants have stopped accepting customers to eat at their restaurants.

2.4 CUSTOMER RELATIONSHIP

2.4.1) Rating and review.

Foodpanda cares about the customer's point of view. The proof is that Foodpanda has provided a comment section for customers to give a rating about the delivery services, the taste of food, and overall experience on the review forum by Foodpanda.

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Whether the rating is good or bad, customers can give honest reviews for other customers to looking at the experience they went through. If they give a good review, it indirectly promotes the restaurants. However, if the customers give a bad review, the sales of the restaurants will decline because they may not orders due to the bad impression they receive. So, the restaurants themselves should have a good impression on others to make sales and get profit. The customers not only can make a review of the restaurants but also on the delivery riders. Customers' satisfaction is always the top priority of Foodpanda.

2.4.2) Discounts and promotions.

Foodpanda needs strategies to keep customers loyal to their services. Therefore, Foodpanda offers vouchers, promo codes, discounts, and many more to attract customers. They have already made a schedule for every monthly promotion, vouchers, and discounts for their customers. Those who want to see all of the promotions can look at them via app Foopanda or website. Promo codes are given on the Foodpanda website, Facebook or Instagram. If they want to use the vouchers, they should tap on "do you have a voucher?" on the check-out page and type in voucher or promo code. The voucher is valid when the discount deducted from their bill.

2.5 CUSTOMER SEGMENT 2.5.1) Customers who want order foods from restaurants online.

Generally, there are a few reasons customers want to order foods from restaurants online. The reasons are who do not have time to go out to buy food, working late at night which makes them tired and lazy to cook, do not have time to cook and lazy to eating out. This is all because of the environment of a busy modern life. However, that not the only reason, because order foods online also has some benefits. Among them are food lovers who want to taste new dishes, customers who want to try the foods because they did not know about the restaurants, order online make is easier due to the hidden location of the restaurants. Anyone can take order online delivery services, it does not matter if there are differences in age, race, and religion. Foodpanda serves anyone who wants to use their services.

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2.5.2) Restaurants that want to be able to obtain customers outside usual channels.

Typically, restaurants that use online as a platform have bad sales. So, they use online platforms to increase the sales of restaurants. Since many people know the Foodpanda brand, it indirectly promotes the restaurant either on the app or the website. Customers can choose the restaurant the food according to the taste of their choice because there are many restaurants recommended in the app and the website. They can have breakfast, lunch, dinner, dessert, and etc as they wish. This is because Foodpanda are operating 24 hours. Foodpanda wanted to provide the customers with the convenience of satisfying their cravings from their favorite restaurant in the comfort of their own home at any time of the day.

2.6 KEY RESOURCES

2.6.1) Technology.

Foodpanda depends on technology. This is because without an internet connection, app creation, or website, Foodpanda will not exist. From here, we can see that technology are very important to human in modern life. The operation of Foodpanda also depends on software features such as a search engine, filtering, payment with all major credit cards, or online payment and cash. Moreover, the network of delivery riders is very important to distributed around the city to deliver the foods to all access areas. With the network, Foodpanda provides an online platform to allow transactions between third-party sellers and buyers, provide workers with food handling training, and engage in food delivery.

2.6.2) Partnership with the local provider.

Foodpanda already make a partnership with many local restaurants all around Malaysia. They should register their restaurants if they want to make partners with Foodpanda. This is the time to bring your restaurant business online. There are a few advantages to make partners with Foodpanda. Among the advantages of listing your restaurant with Foodpanda are the owner of restaurants do not need to hire a delivery team, to reach more hungry customers who like to try new food, various options of payments available such as credit, debit cards, cash, and online payment and more

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importantly, the restaurants can still operate during MCO. The customers can orders online from Foodpanda and the delivery riders will send the meals.

2.7 DISTRIBUTION CHANNEL

2.7.1) Website.

With just a few clicks, they can order from a wide variety of delicious food online through the website or app of Foodpanda. If the owner restaurants want to be partners with Foodpanda, they can register the restaurant on the Foodpanda website. Before that, they should have documents required or licenses such as bank account details, owner’s identification documents, shop license, and a copy of the restaurant’s invoice. Then, they should fill in the details of their restaurants in the partners' application form in each country. The details required are the restaurant name, city, address, postal code, particulars of the restaurant owner like the first name, last name, contact number, email address, restaurant cuisine, the average cost of a meal for one person, and the restaurant’s menu. And most importantly, they should upload the prices and menu are the same as for dine-in customers.

2.7.2) Mobile apps.

Foodpanda is an online food ordering website and mobile app that connects customers with thousands of local restaurants. The customers can browse various menus and place orders from restaurants on the website or app Foodpanda for home delivery or takeaway at the best price. Those who want to try food online delivery services can download the Foodpanda app in the Google app store. With just a few clicks, they can order from a wide variety of delicious food online. After the busy modern living environment began, the trend of ordering food online delivery services began to rise. The sector in food online delivery services and takeaway food has immense growth of outpacing the restaurant industry. They should use Foodpanda delivery apps because it was easier, convenient, wider customer base and has multiple payment options.

2.8 COST STRUCTURE

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2.8.1) Major cost.

Its major cost is sales, marketing, and a fixed cost. Through low-price value propositions and significant automation, Foodpanda has a cost-driven structure that aiming to minimize expenses. Other major drivers are administration, fixed expenses, plus customer support. Foodpanda wants to differentiate itself from its competitors on the fierce competition in the food delivery market through high quality, great service, and ensuring timely delivery. In order to reach that, Foodpanda needs to standardize its operations which also work in complex markets or big cities on large scale just as its business plan, and developed its own delivery service technology.

2.8.2) Marketing cost

Foodpanda is well-known to the public because of its strategy in marketing. Their strategies which became known to people are by advertisement. To maintain brand recognition, Foodpanda placed promotional ads on various apps. From the beginning, Foodpanda used social media such as Facebook, Twitter, and Instagram as a platform to promote their name. Moreover, they also launch several commercials advertisements on Youtube, Newpapers, television, cinema, radio, magazines, as outdoor marketing. Even though the cost of advertisements is costly, but it was really worth it. Now, the brand of Foodpanda is very known in the global market.

2.9 REVENUE STREAM 2.9.1) Advertising fees.

Many restaurants, especially new restaurants, use Foodpanda as a marketing platform. If the restaurant's register on Foodpanda, the name or sales of their restaurants will increase. Most importantly, each restaurant can make a choice by paying for advertising on the app. The advertising fee for the brand will be charged by Foodpanda. This will enable their restaurants to make advertising for their business on the Foodpanda platform. Foodpanda via its website or in its mobile app will charge the third-parties (restaurants partner) a fee to advertise their offerings. So, this is indirectly an income for Foodpanda cause they (third-parties) using the Foodpanda platform to make their restaurants known. There is no doubt that the brand Foodpanda is very famous among Malaysian people.

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2.9.2) Transaction fees.

The Foodpanda brand has left a special impression on the public. Therefore, some restaurant partners are not well-known brands register in Foodpanda to promote their restaurant. They have to pay a commission for using Foodpanda as a platform to make sales for their business. Foodpanda helps more customers order in your area and markets your brand on their platform. For every order being delivered, fees will be charged by Foodpanda. The delivery charge is depending on the delivery location, the restaurant location, and the number of orders.

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3.0) BUSINESS MODEL CANVAS (BMC)

Key Partners 

Partnership with local restaurants.



The delivery riders.

Key Activities  

Build a relationship with retail stores.

Cost Structure



Hire delivery supplier freelance or full time.

Key Resources 

Technology.



Partnership with the local provider.

Customer Relationship

Value Propositions



To provides customers with an easy and secure way to order from the best takeaways in their area. To place orders at local restaurants via its website or mobile app.



Rating and review.



Discounts and promotions.

Channels 

Website.



Mobile app...