KATHMANDU UNIVERISTY

DHULIKHEL, KAVRE
SCHOOL OF ENGINEERING
DEPARTMENT OF CIVIL ENGINEERING

MGTS-402
ASSIGNMENT- III
PROFILE MATRIX AND FIVE FORCES ANALYSIS

SUBMITTED BY: SUBMITTED TO:

Priyanshu Pathak Bhibhu Ratna Tuladhar
Gokarna Bhatta Department of Business
Rizzal Shah Information system
Sabin Timisena
Bishwas Shrestha
Ujjal Khadka
CIEG-4th Year/ 2nd Sem
EasyGro, The best in the market

1. Make sure that you read and understand the essentials of competitive advantage,
business model and business model canvas, which is included in your course book and
uploaded in Useful Resources in Google Classroom.
 What is competitive advantage? What is business model? Describe how does it
relate to a company’s business model?
 Provide a brief description about various elements of a business model canvas.
Develop a business model canvas for your venture.
A competitive advantage is what makes an entity's goods or services superior to all of a
customer's other choices. While the term is commonly used for businesses, the strategies work
for any organization, country, or individual in a competitive environment.
A business model is the plan your business has for making money. It’s an explanation of how
you deliver value to your customers at an appropriate cost. This includes descriptions of the
products or services you plan to sell, who your target market is, and any required expenses. 
Firms in the emerging markets are striving to gain sustainable competitive advantage. There is a
strong relationship between the business models and the competitive advantage. An effective
business model is a combination of deliberate alignment of resources and capabilities to strike
competitive advantage.
People often mistakenly use the term competitive advantage as a synonym for the term business
model. The reality is that competitive advantage is a portion of your business model, but not all
of it. A business model is more encompassing than your competitive advantage.
For instance, you can have excellent competitive advantage but still have a weak business model.
If Starbucks decided to maximize coffee poundage sales by lowering the price of a cup of coffee
to $0.50, its competitive advantage may rise slightly. However, the lower price would result in a
significantly different, and worse, business model for Starbucks.
Arvind Eye Hospital was found with a mission to eradicate needless blindness. It was
commissioned as 11 bed hospital in Madurai. Its founder felt that the 80% of the blindness can
be cured as 20% of the cases were non-curable. It is considered as the largest eye care facility in
the world performing around 200,000 surgeries each year, which is considered as several times
higher than the national average. Every patient who pays covers the cost of two patients who are
unable to afford the cost. This leads to two different business models, where one business model
works with collection of fees for surgery and treatment and the other one being charitable model.
Due to volumes Arvind generates surplus funds, which are used for expansion. Doctors and other
medical staff visit villages and they organize eye-camps, refer those patients to Arvind hospital
for further surgical procedures to cure blindness. Surgery/treatment post-operative care, food,
medicine and lodging facilities, and return trip to their village are free of cost. The intraocular
lens which acts as a replacement to natural lens was very costly, as they were imported. Arvind
established an intraocular lens manufacturing facility soon. It started exporting the lens to several
developing nations. This helped the hospital in reducing the cost per cataract surgery. This is one
way to align resources deliberately to create competitive advantage. The business model with
payment complements the other business model with charity.

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When we examine the above case, it is quite evident that even in emerging markets multiple
business models exist and they will continue to co-exist. The synchronization of various
components of a business model will further help the firms to sustain their competitive
advantage. A business model will be dynamic when it facilitates exploitation of organizational
resources for developing capabilities. A business model without above fits/synchronization is
bound to fail in the market place. An operating business model satisfies the test of creating value
proposition, builds barriers to entry through efficient use of bundle of dynamic capabilities, and
by aligning cost structure to revenue. Arvind Eye Hospital case illustrates the ability of the
hospital to offer technologically superior services at lower costs. The denominator of the above
case examines the ability of the firm to attract mass market through their superior cost-effective
services, which creates a value proposition to the customer. Success of a business model depends
on its ability to generate revenue streams successfully over a future horizon. Some firms do have
a single business model which facilitates the journey towards competitive advantage. Such firms
limit their competitive advantage compared to firms with multiple business models. The drivers
of value proposition changes significantly when a firm uses multiple business models to strike
competitive advantage. Firms with single business models will have difficulty during turbulence.
There is a need to innovate a business model. Business models are not static, but they are
dynamic and ever changing. Revisiting business models is a notable exercise to safeguard the
competitive health of a corporation.
The business model canvas is a strategic management tool that lets you visualize and assess your
business idea or concept. It’s a one-page document containing nine boxes that represent different
fundamental elements of a business. The elements are:
Customer segments: Without customers, businesses cannot survive. Businesses must identify
and understand their customers, and they can group these customers into segments with common
characteristics.
Value propositions: A company creates value, or benefits, for customers by solving a problem
or satisfying a need. The value proposition is the reason that customers choose one option over
another when deciding what to buy. Although certainly not an exhaustive list, customers may
value: newness, performance, customization, design, brand, price, cost reduction, risk reduction,
accessibility, and convenience.
Channels: Channels bring the value proposition to the customers through communication,
distribution, and sales. Companies can reach their customer segments through a mix of channels,
both direct (e.g., through sales force and web sales) and indirect (e.g., through own stores,
partner stores, and wholesalers), to raise awareness, allow for purchase and delivery, provide
customer support, and support other important functions of the business.
Customer relationships: Companies need to maintain relationships with their customers to
acquire and retain customers and boost sales. Strong customer relationships can significantly
impact overall customer experience. There are many categories of customer relationships
including personal assistance, self-service, automated service, user communities, and cocreation.

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Revenue streams: There are two types of revenue stream: revenues from one-time customers
and revenues from ongoing payments. Revenue pricing mechanisms vary from fixed (e.g.,
predefined prices based on static variables) to dynamic (e.g., price changes based on market
conditions). Revenue streams can be generated through asset sales (e.g., selling a physical
product), usage fees, subscription fees, licensing, brokerage fees, advertising, and temporarily
selling the use of a particular asset (e.g., lending, renting, or leasing).
Key resources: Any business needs resources—physical, financial, intellectual, and/or human—
to function. These resources enable the company to provide their products or services to their
customers.
Key activities: Key activities are the critical tasks that a company does to succeed and operate
successfully. Different companies focus on different activities in categories such as production,
problem-solving, and platform/network.
Key partnerships: Companies build partnerships to optimize their business, reduce risk, or gain
resources. There are four main types of partnerships: strategic alliances between noncompetitors,
coopetition—strategic alliances between competitors, joint ventures, and buyer-supplier
relationships.
Cost structure: All businesses incur costs through operation, whether fixed or variable. They
may also face economies of scale and scope. Companies consider their cost structures in two
strategies—cost-driven, where all costs are reduced wherever possible, and value-driven, where
the focus is on greater value creation. Cost structures will often consider fixed costs, variable
costs, economies of scale, and economies of scope.

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EasyGro, The best in the market

The business model canvas of Easy Gro:

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EasyGro, The best in the market

2. Develop a marketing mix for your venture to effectively capture your target market(s).
Elaborate your answer.

It was only a matter of time we saw arrival of online grocery shopping into the ever-expanding
domain of internet shopping. Leading e-commerce players, like Daraz, MeroKirana, are
competing with each other to gain the top slot in this particular field. The success of online
grocery shopping business revolves around 7 crucial P’s of marketing- product, price, place,
promotion, people, process and physical evidence. How e-retailers develop effective strategy
around 7 P’s of marketing mix determines how they can become main attraction of online
consumers.

The marketing mix of Easy Gro revolving around 7 P’s capturing our target market are explained
below:
Product: The main product in the marketing mix of an e-grocery store is its mobile app and
website which will be accessed by users to buy grocery items online. Obviously, online grocery
stores have to offer a complete range of grocery items to influence users who are looking to buy
different items from one place. From groceries to dairy products, personal beauty and hygiene to
staples and meat products, online stores can’t afford to lag behind others in terms of variety of
brands offered. Considering all these, EasyGro has been inclined to provide best products to te
customers which they need and require in day-to-day life.
Price: Pricing is a crucial factor that determines how frequent online users will buy groceries
from the particular e-store. Competitive rates, nominal delivery charges and offering nominal
discounts will encourage households to buy more groceries from the particular e-store. In terms
of price, EasyGro dominates all its competitors as it represents the major competitive advantage
in the market.
Place: Better internet connectivity and affordable smartphones have allowed people in rural
areas to access online shopping. It means that more cities you can cover to deliver groceries, the
better it will be for your on-line grocery business. EasyGro’s delivery system engulfs different
parts of Kathmandu Valley. But as the business grows, the delivery system shall be provided
throughout the country.
Promotion: Promoting your online grocery business through social media platforms, digital and
media marketing campaigns to create brand awareness is crucial for ensuring that your online
grocery service is known to maximum users. From Television to posters, from Instagram to

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EasyGro, The best in the market

Tiktok, from websites to cookies, EasyGro has been promoted throughout the social media and
the internet platforms. This definitely will help to aware the people about the presence of new
online grocery store in the market.
People: Online grocery delivery is an operation-oriented business, so it has to have a positive
and result-oriented team that can work tirelessly to go above and beyond customers’
expectations. From delivery guys to customer service staff, all members need to wok cohesively
towards a common goal of complete customer satisfaction. Such is the dedication of EasyGro
where cohesion between staffs, delivery guys and owners are very strong. EasyGro is people’s
store.
Process: To ensure speedy delivery of orders received on customer-specified timings, you need
to follow an inventory model and procure goods in advance so that you can do packing and
weighing as soon as the order is placed by the user. EasyGro ensures the fast delivery of the
goods to the customers. The process of working inside this system of EasyGro is reliably fast and
dedicated which offers another major competitive advantage in the market.
Physical Evidence: Physical evidence is how you assure your customers of the quality of your
services. Quality of good delivered, quality of packing, timely delivery, behavior of delivery
guys and customer service staff etc., are the major criteria’s where the EasyGro is forward. In
this way, EasyGro’s physical evidences as mentioned provides another good marketing mix.