TABLE OF CONTENTS

TITLE PAGE

NO 1 INTRODUCTION
1.1 Executive Summary

NO 2 INTRODUCTION TO BUSINESS OPPORTUNITY

2.1 Business Opportunity
2.2 The Rationale for Selecting the Business
2.3 Services
2.4 Relevant Market of the Business Opportunity
2.5 Key Success Factors

NO 3 VISION STATEMENT
3.1 Vision

NO 4 MISSION STATEMENT
4.1 Mission

NO 5 ENVIRONMENTAL AUDIT
5.1 External Environment
5.1.1 General
5.1.2 Industry (Refer 2.4)
5.1.3 Competitor
5.2 Internal Environment
5.2.1 Management
5.2.2 Marketing
5.2.3 Production/Operation
5.2.4 Management Information System

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NO 6 FINALIZATION OF SWOT
6.1 Opportunities and Threats
6.2 Strengths and Weaknesses

NO 7 FORMULATION OF ORGANIZATIONAL OBJECTIVES

7.1 Financial Objectives
7.2 Strategic Objectives

NO 8 STRATEGY FORMULATION: TOWS MATRIX

NO 9 STRATEGY RECOMMENDATIONS
9.1 Corporate Level Strategies
9.2 Business Level Strategies

NO 10 SUMMARY

NO 11 REFERENCES

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1.0 INTRODUCTION

1.1 EXECUTIVE SUMMARY

Online grocery shopping is not necessary but definitely recommendable. In

the crisis of this pandemic, going to a store and spending time there shopping rises
the chances of getting in contact with the COVID-19, hence online shopping is
suggested. In general, online shopping involves a seller and delivery after the goods
are delivered precautions like sanitizing can be done. Like any online business,
online grocery stores also have a bigger assortment of items available contrasted
with what people find at the physical store. Studies show that online grocery
shopping will stay for a long time (Kian et al., 2019). Even after the pandemic, that is.
More and more people can now see the convenience and easiness when it comes to
shopping at the comforts of their home. Here, in Malaysia, more and more online
markets are already rising. It is only a matter of choosing the most trusted one.

When it comes to choosing the most trusted grocery store, various factors are
being considered: price, quality, delivery, customer experience and many more. It
doesn’t matter if the store is a local-based on even top players, as long as they meet
the criteria, they are good to go. This tremendous demand is the reason why
Grocery-on-Wheels are being planned to be developed in few months’ times.
Looking at name itself, it is basically a combination of two concepts: grocery and
delivery. However, simply introducing a business plan without a thorough
explanation on the goals and objectives will be a waste of time. Hence, this report
highlighted the rationale of selecting this type of business to the market. It showed
that venturing into an online grocery delivery service has a high rationale as it
indicates a huge demand. Also, the fact that customer behaviour of purchasing has
been shifted from offline to online really contribute to the rationale of the business.
Moving on, a set of key success factor were introduced to identify the relevance of
the business into the market. Whether or not the business is needed by the market.
It showed that Grocery-on-Wheels had something those other businesses didn’t
have, convenience at peak and direct connection with customers.

A comparison between two competitors: Panda Mart and Tesco Delivery was
evaluated to know our stand in the market. From the evaluation, it can be seen that
Grocery-on-Wheels had the highest score due to its critical success factors. From
this comparison, although there are many well-established competitors, it doesn’t
mean our business cannot excel in certain area. Hence why the positivity brings out
the best of the business. In addition, SWOT analysis and TOWS matrix were used to
identify improvements required. Undoubtedly, in every business, weaknesses and
threats will always be there, hence why the strengths and opportunities will be used
to cater to such challenges and create strategies that can be used. As for our
financial projection, Grocery-on-Wheels didn’t put long-term projections as it is only
up to three years. Hence, it showed a positive impact on the financial state and
expected to grow. Our strategy focused more on market penetration and product
development.

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2.0 INTRODUCTION TO BUSINESS OPPORTUNITY

2.1 BUSINESS OPPORTUNITY

Grocery-on-Wheels is the combination of online grocery stores and delivery

services, working together from an application development to put the retailer’s lives
simpler by permitting them to sell food products, including groceries, vegetables,
fruits, beverages, staples and considerably more online using these effective
platforms. This business gives an open door for retailers, outsider deliveries and
consumers. From trolley picking, people have moved to add-to-cart options. Under
this business, three sorts of grocery apps will be created to assist the customers to
opt for the service they need the most. First is the web-based grocery app –
independent of user location e-commerce grocery apps permit the customer to buy
grocery products. It is best for people who want better delivered according to their
favoured time. Secondly, in-store grocery app, where it shows all the classifications
of grocery products along with their description. It gives a virtual perspective of the
places from where the consumer is buying the product. Lastly is customized grocery
app, where it takes the shopping experience to a higher level with a personalized
grocery app. These apps help the end-user to purchase the item by imparting the
rundown with the store and profit products the second they need.

As of now, Grocery-on-Wheels will not require any fixed place for the
operations to execute as it can work on various panels. These panels permit to deal
the application productively. From the user profile to arrange management,
everything is being supervise by the user panel. It holds the service quality and
distinguishes the worries to further develop the overall application performance.
Consumers can browse products by choosing a specific product from all the classes
of food and grocery product with a detailed portrayal. Then, they will get to schedule
their delivery at their own convenience. Grocery-on-Wheels provide different delivery
schedule openings and permit the consumer to place the order whenever. Also, they
will get a real-time order tracking subtleties and keep themselves refreshed with the
order status. When it comes to payment, they have multiple payment options with
the most reliably and securely circumstances. Whereas for admin panel, it deals with
the portrayal of the information using the display screen in the given conditions. It is
also called as the back end and control board. This panel is basically to ensure all
the orders and deliveries are being executed in the most professional way. At the
same time, manage all the payment models and take the grocery business to the
next level. This admin panel is being utilized by the retailers as they are the ones
who manages the customers and the stores. The final panel is the grocery delivery
where it deals with all the chosen units or quantity of the orders. It gives the user the
choice to either pickup or get them delivered to their ideal area. This is basically a

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two-way communication between delivery service and the consumers regarding the
delivery details.
2.2 THE RATIONALE FOR SELECTING THE BUSINESS

The rationale behind this business is knowing the future of online grocery
shopping. Statistics have mentioned the online grocery market is expected to grow
tremendously by 2030 (refer Figure 1 below). The buying behaviour of the
consumers has changed with respect to the change in the current situation (Singh,
2019). Earlier shoppers preferred to shop for groceries offline and only a few options
for online grocery shopping. But the current scenario is way different as there is a
huge shift from offline grocery shopping to online grocery shopping. Experts say that
earlier customers preferred to shop online for groceries based on factors like
convenience and affordability. But now, somewhere shopping for groceries online
has become a necessity for some due to the pandemic and a safe shopping option
for others. On the other hand, to enjoy the growth in the online grocery delivery
market, there are a number of offline grocery retailers that have shifted online to
serve their consumers in a more convenient way. This is why this business exists, in
a way to create business relationship with the grocery retailers by increasing their
revenues and reducing their costs while delivering better customer service at the
customer’s convenience. To boost up the confidence of the people, many experts
have been extracting data, one of them is from the booming industry, where the data
stated that the online grocery market value doubled between the years 2018 – 2020.
It can be seen from Figure 2 below where in Malaysia, the online grocery event is 3
times growth (Baarsma & Groenewegen, 2021). In addition, looking at the customer
behaviour, their behaviours evolved as they are attracted to a more convenient
lifestyle and online shopping for day-to-day stuff is a relief for them. These data and
statistics are the reason why this business should be developed and there is no
other way to describe how rationale it is.
However, looking at a bigger picture, the main intention of Grocery-on-Wheels
is not simply connected with the top players in grocery market in Malaysia, but also
to create a long-term business relationship with local grocery stores in Malaysia.
Because we know that the top players already have their existing business models
and their way of conducting processes to meet the customer needs. Unlike the local
grocery stores as the number of grocery stores registered is few. Probably it is either
the consumers don’t know the existence of them or the local retailers don’t know how
to expand their business and getting the exposure. Therefore, Grocery-on-Wheels
will be the main platform for them. Even seeing the trend in the market, the demand
for online grocery delivery services is increasing day by day and it is a solid
justification on why this business should be developed.

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 2.3 SERVICES

Grocery-on-Wheels is an online grocery business that delivers groceries in

geographic segmentation within Klang Valley area. This idea is been invented from
traditional manners to buy groceries delivery services, incorporating urban and
suburban areas. Various services provided in this business, starting from an online
grocery store and delivery to the consumers. One of the main services offered is the
in-store online grocery, allowing consumers to purchase a wide assortment of fresh
grocery products as well as household items without being physical at the store. The
products offer by all the online grocery stores are pretty much anything they had find
in any grocery store. It is basically a physical grocery market that accepts online
orders or a separate e-commerce operation that sells groceries. From the Grocery-
on-Wheels application, consumers can simply choose products that they want, pay
and waiting for the delivery to come. Furthermore, consumers can also buy from the
local grocery stores or e-commerce grocery stores, where retailers can easily sell
fruits, vegetable or grocery online. What makes this business interesting is that it
doesn’t just provide a platform for the consumers, but also towards the locals and e-
commerce retailers that wanted to increase their customer relationship and develop
long-term purchasing. Vendors or sellers can just register online using the app and
starting selling their products. Services like delivery support, management scenarios,
marketing assistance, payment options, subscriptions, customer data and
connectivity will be provided by this powerful app.

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 2.4 RELEVANT MARKET OF THE BUSINESS OPPORTUNITY

In order to identify the market relevance of Grocery-on-Wheels, an

implementation of The Porter Five Forces Model will be used as the analysis allows
us to evaluate the market industry in a simplified and in-depth way and create
strategies to work on them. Under this model, five competitive forces will be
discussed: competition, potential of new entrants, power of suppliers and customers
and threat of substitution.

Competition in the Industry

Undoubtedly, various competition in the online grocery business, particularly

the e-commerce businesses. However, whether Grocery-on-Wheels is a bad idea
because of competition from them doesn’t seem vital because the entrant of large
players like them will only increase the market penetration of grocery delivery apps.
A survey on grocery delivery app penetration in urban areas in Klang Valley revealed
that around 20 % of millennials prefer online grocery shopping (Asti et al., 2021).
This number will only increase with the entrant of trustworthy players. Also, other e-
commerce businesses will help in building an online grocery shopping environment
in rural areas, which will further increase the opportunities for new players like us.
However, despite the help given that acts as a competitive advantage, the
competition is high considering the current market situation where the demand for
online grocery delivery services is high resulting in increasing competition in the
market. Considering the fact that people now prefer to shop for groceries online, it is
clear that starting this business is a profitable idea whereas what concerns us the
most is the close competition and easy availability of alternatives. Therefore,
Grocery-on-Wheels needs to enhance the services in terms of convenience,
payment and quality of the product, which is more focused on the customer
experience to gain competitive advantage.

Potential of New Entrants

As the competition in online grocery market is relatively high, the potential of

new entrants is considered high as well. This is because the top players have
created mutual collaborations with other top grocery stores in Malaysia, for example,
Jaya Grocer. For example, Grab completed its acquisition of Jaya Grocer, with which
it would be able to have more control over the supply chain and offer more
personalized deals and promotions. Another new entrant from different market,
which is Air Asia where they rebranded their business into a diverse business that
seeks to become more than an airline brand. Their online grocery platform, which
utilizes its logistics venture can create a much newer entrants for other businesses
from other industry to participate in the online grocery market, creating a threat to
Grocery-on-Wheels and also to the start-ups and local businesses. However, despite
the high potential of new entrants, it gives benefits to the business because mostly
new entrants are focused on massive or congested areas. Probably the target
segmentation is from the locals, experts and tourists. This creates a competitive
advantage for Grocery-on-Wheels to always in the on-demand situation as it is
inclusive and done around the locality. More than 90 % of the expected consumers

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are locals and from the communities down to a smaller radius. This will also be used
in convincing local businesses to start using online and connect with local
customers.

Power of Suppliers

The power of suppliers for Grocery-on-Wheels is extremely high as the

movement of goods is being cut short rather than buying grocery offline. Supply
chain is the management of the progression of goods and services which includes
the movement and storage of raw materials, of work-in-process stock and of
completed goods from starting place to point of utilization. For example,

Look at the movement of goods is done through so many channels because

of which the lead time and the price increases. These two are most sensitive
parameters for the suppliers. Hence, the customers are not willing to buy from this
retail. A person simply goes to a supermarket where they get the goods at a cheaper
price. Now coming to the Grocery-on-Wheel’s supply chain,

It clearly shows how they have maintained such a competitive pricing and
have minimized the problem of lead time. This business has altogether transformed
the supply chain and give the full power towards suppliers. One more aspect that
they have maintained is the logistics which also plays a crucial role. This power
given will increase their revenues and reduce their costs of local stocking, for
instance or perishables that are hard to return to depots or to send to other stores
that may have a need for them; if orders are serviced from their depots, they can
also reduce staff at the physical stores they own and save costs.

Power of Customers

The customers have a range of low-medium bargaining power where there

are many online grocery service joints, as they can choose any one of them, like
HappyFresh, Panda Mart and many more, but Grocery-on-Wheels shines the most
as the products are not standardized with other top players grocery markets.
Although buyers can exert a lot of pressure and dictate prices, but to a certain
extent, they are unable to do that because the offline grocery stores will always be
expensive compared to the local’s stores. On the contrary, they may not be such a
big influence in case there are few suppliers for a product. Going to a huge
supermarket can be seen as inefficient. Ideally, other competition wants buyers to
wander up. They essentially require the buyers to walk the whole length of the store
because staples like bread or milk or produce are placed at opposite ends. So,
buyers either have to meticulously organize their cart so that the delicate stuff is
safely separated. This complex aspect is something that will lowering down the
buyer’s power of choosing them instead of local supermarkets with a complete set of
grocery products. Hence, they will begin to approach more on local supermarkets

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and use Grocery-on-Wheels for grocery shopping. To avoid the hassle, they rather
not being visible in the huge supermarkets and straightforwardly add-to-cart option in
the app and waiting for the delivery. A plus point, they wouldn’t mind spending on
delivery fees. On the other hand, big online grocery delivery company doesn’t seem
to bother other regions because no matter how many nearby people they got to sign
up, they would not extend their delivery area another five miles needed to include
their houses. It is an extra point for Grocery-on-Wheels to have competitive
advantage as they emphasize deliveries on a smaller radius, creating low buyer’s
power. Meaning, the business has the power within the smaller area.

Threats of Substitution

Looking at the current situation, it is nowhere to be seen that online grocery

delivery services will have a threat of substitutions. Comparing to an offline grocery
shopping, online grocery shopping is on the rise with good choice, faster deliveries
and provision for refund or return for defective goods. Seeing tons of remarks from
the buyers that stated they have switched to online grocery shopping since 2018 and
still standing strong indicate how strong the business will be in the future. Even if the
pandemic doesn’t exist in the first place, the demand for online grocery shopping is
still high as buyers are now looking for convenience and better customer service.
Since online grocery can simply provide such factors, why burden themselves to go
offline? Hence, the threat is low for Grocery-on-Wheels to excel in the grocery
industry.

2.5 KEY SUCCESS FACTORS

Convenience at Peak

One of the key factors that will make Grocery-on-Wheels a success business
is the convenience. When customers buy groceries online, they will come across
enhanced convenience as they can easily order groceries anytime and anywhere as
per their comfort. There is no need to do something extra with online ordering. They
get everything under one roof. Customers can purchase items from the comfort of
their own homes or workplace. Online grocery is made more straightforward and
convenient for the customer through Internet. Cancelling the transactions is likewise
simple. Compared with today’s fast-paced life, people are busy during the day and
can go grocery shopping online during their free and off-get off work hours. Orders
are not limited by time, so online grocery shopping become the primary choice. In
other meaning, it is getting easier and people are busier. Never before can people
order all the grocery products to their doors. Nor could they identify what type of
products they want to buy and receive it to their doorstep in the same-day, according
to the terms and conditions. With the development of online grocery delivery service,
particularly for locals and e-commerce businesses that sell grocery products, people
can now receive them without having to leave the house. Also, now in the working
world, most people work far longer working hours than in the past. Since they don’t
have the time, they pay for the convenience of the service they receive. Many of

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these busy people don’t have time to go grocery shopping when they work long
days.

Quick Delivery

The actual reason behind this quick delivery is very clear that the delivery
model used in Grocery-on-Wheels provide both convenience and efficiency during
the same time to the seller as well as the purchaser. The products are delivered to
the customers in a short time span, so that is why the popularity of such a delivery
model is increasing at a good speed. In today’s fast-paced world, making time can
be troublesome to go to the grocery store. That is where hyperlocal delivery comes
in. By ordering groceries online and having them delivered to their doors, they can
save time and hassle. In addition, they can often find better deals on groceries when
they order online. And if they are worried about freshness, Grocery-on-Wheels offer
same-day delivery or even hourly delivery, so they can ensure that their goods will
be fresh. This business allows the seller to deliver products within a distance range
of 15 km through a fleet of experienced delivery partners. Considering that the
distance range of a delivery task is limited, the delivery partner can quickly achieve
last-mile delivery in a very efficient manner.

Direct Connection with the Customers

With Grocery-on-Wheels, the grocery stores have a direct connection with the
customers through a tech-enabled system. Now, the customers don’t have to come
to the store physically to buy products. They can request something through the
mobile app and the store would automatically know what to do to enable the
completion of the delivery task. A ready catalogue that includes all the products
which customers usually buy or add in their grocery shopping list. Customers just
have to tick on the product and quantity. This ready catalogue helps the customers
who buy grocery and indirectly, create a direct connection with them as the store
knows exactly what the customers want and can be bought. Although the process is
being done online and not face-to-face, providing the best customer service is the
priority in the business. The direction connection consists of many factors that
influence buyers to engage with the business. Some of them are: how trustworthy
the grocery store looks, how easy it is to navigate to the product they want, how
much they trust the freshness of the products, how good the quality and how many
good reviews there are. These are the factors that affect buyers, hence, not to worry
that Grocery-on-Wheels develop everything in the app, where every information can
be found in the app, from where the products being produced, price comparison
between top supermarkets and them and the reviews from the current users of the
app. All these aspects create a customer interaction with the store and direct
connection can be developed.

Product Quality

When it comes to freshness and the product quality, not to worry that
Grocery-on-Wheels provide the best assistance. This is because most sellers or
independent online grocery stores that partnering with our business are mostly
farmers or have a direct connection with farmers. The farmer likely picked the food
for the store the night before, while food in a typical supermarket has been a few

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days in transit and a warehouse. That means the vegetables, for example, that
people buy at the online grocery stores will likely last a few days longer and still look
and taste good – a substantial saving and value.

3.0 VISION STATEMENT

3.1 VISION

In every business or organization, there is a fundamental reason why they

exist. That reason may not always be conscious, but it is there. And that reason is
not self-referential. Thus, a vision statement articulates what the business intends to
achieve in a given time. Following is the vision statement of Grocery-on-Wheels
business for the upcoming three years.

“To be the favourite local online grocer and delivery in Malaysia that provides
helpful and friendly service to its customers by providing quality products and
building strong presence by offering competitive prices and to help people live
and eat better”

The vision statement above catches the core of business by portraying what
the business will accomplish in the future. It is an easier way to understand that the
evolution of supermarkets is clearly to be seen. However, accomplishing such a
vision will be challenging as the business need to focus on offering an unparalleled
shopping experience to the customers with advancing technology, next in the line.
Also, as the business is focusing on providing freshness and product quality, the
dependency on local grocery store will be vital, align in providing health and wellness
to the customers.

4.0 MISSION STATEMENT

4.1 MISSION

The main intention of having a mission is to give the business a clear pilot
point for standards and behaviour. The standards are being done by a day-to-day
execution that is necessary to make the perspective become reality. Following is the
mission statement of Grocery-on-Wheels: -

“We will deliver best quality products to our customers in a more convenient
way through fast delivery with broadest selection of goods at affordable price
and will focus on priorities that would better make a different in our online
grocery app”

From the mission statement above, it involves fundamentally five parts. These parts
are portrayed underneath: -

- Conveying best quality products: Grocery-on-Wheels will intend to deliver

best quality products by giving fresh groceries to customers that will also
increase the value of the business. This is because most online grocery

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 stores that participate in the business are local farmers or those who have
direct contact with the distributors that produce fresh and good quality
products like fruits and vegetables.
- Giving convenience: with the advancement of technology, the availability
products is becoming easier and more convenient for customers. They are
able to get their desired products with a single click through our Grocery-on-
Wheels app. From there, various features will be introduced in ensuring
customer experience at its best.
- Fast delivery: The implementation of hyperlocal delivery partner has the
ability to do deliveries at an unbelievable fast speed. There is a need to get
hold of the product that is being requested in a limited time because less than
an hour is something that hyperlocal delivery models vow to the customers.
This model provides faster delivery with minimum cost and time by enabling
maximum customer reach with less shipping amount.
- Providing broadest selection of goods: The app will provide a wide range
of product selection from raw products like chicken, meat, fish to dry products
like medicines, household and toiletries items. This is to ensure the
customer’s needs are being assessed accordingly.

5.0 ENVIRONMENTAL AUDIT

5.1 EXTERNAL ENVIRONMENT

PESTEL analysis will be used to observe and analyze the external factors that
impact the business’s performance. The result of which is used to identify threats
and weaknesses which are used in SWOT analysis in the following section.

5.1.1 GENERAL

Economic

There are also numerous economic aspects that can affect the operation of
Grocery-on-Wheels in Malaysian online retail sector. Such aspects incorporate the
nation’s interest rate, tax rate, inflation rate as well as exchange rate. Before looking
at the negative impact of economic factors, let’s see the positive one. Any online
business, including Grocery-on-Wheels provide benefits to the economy in a way
that it creates more jobs. With the fast development of online grocery, more and
more people participate in the online business industry. No diploma is required and
no working experience is required as long as people are willing to learn new things.
What is more, the number of online grocery stores increased, creating substantial
employment opportunities such as marketers, web-page designers, delivery
services, customer service and so on. Moreover, enhancing online grocery stores,
especially the independent ones able to reduce poverty. Thanks to customer’s
desires for high-quality products and the convenience of the platform itself, those
products from the poverty-stricken regions can reach wider market, which increase
the poor’s income. Nonetheless, note that the prices of every product are fixed by
the government and it varies depending on the economic factors mentioned. For
example, various taxes been reformed like SST and soon GST, will surely affected
the Malaysian households, as their spending will be severely affected, affecting the
cost of living.

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 Studies stated that what is happening now for grocery products is due to the
weakness of the economic structure and the market reform (Yeo et al., 2021). Since
the taxes are being reformed, hence inflation rates are increased, forcing the
government to increase the price and reduce subsidized effort in order to get the
GDP accordingly, aligned with the market structure. However, despite the bad
impact, we are extremely sure that Grocery-on-Wheels will not get affected by the
economic factors, especially on the tax reformation. This is because this business is
only co-dependent with direct sellers that provide everything. Hence, the process of
buying from the manufacturer or depending on distributor is not been implement at
all. Which gives us the benefits to maintain products at affordable prices. Also, in
Malaysia, sellers that own farms to provide grocery products to the customers has
subsidization where it provides a price floor so that they don’t leave the business
because of transient monetary difficulties, which could prompt future deficiencies.
Hence why any economic challenge in future wouldn’t affect the business entirely,
instead boosting more businesses towards online grocery store related to agriculture
sector.

Political

Political gamble as experienced by business because of political unsteadiness

in specific nations would be anything from inherently shaky central or local
authorities like in the developing world or an adjustment in the goal of leadership in
strong central governments. In Malaysia, one of the main political factors that might
jeopardize the operation of businesses is the level of corruption. Corruption
connected with the governmental issues might emerge because of change in a
political situation, which further result in a change in the obligations of the nation and
the way it does business. How does it impact the business? Corruption jacks up the
price or cost of goods bought by the government, including the cost of building the
country’s modern infrastructure. Also, because there is a political instability and
bribes everywhere, it gives opportunity for top business players to secure business
from the government and to speed up permits and licences needed for operating any
business. This increases the cost of doing business and majority of the inflated cost
would be passed to consumers in the form of higher prices and charges, thus
lowering the standard of living of ordinary citizens. This political instability that is
happening lowers economic development of the country and the living standard. In
others words, the country would have developed more/faster and the people would
have achieved a higher standard of living, had there been no serious corruption in
the government.

Another political factor that might impact the business is the constant change
in government. As we all know, Malaysia have been experiencing multiple changes
in government for the past two years. This is because government changes lead to
policy changes and any regulation that is being change will affect the business. The
policy changes consist of taxes and licences, regulatory requirements, labour law
and many other ways that have a big impact on business creation and management
that is either conducive or not conducive for business. Hence why this political
instability affect business as they do not know what will happen in the future and may
defer investment decisions. Although the business is prioritizing local people, it
doesn’t mean that they don’t have the right to find investors or partners that might

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share the benefits from the business. Perhaps with such a collaboration, the
business can grow internationally or expand its operations throughout Malaysia.
However, due to the political instability and constant government changes, investors
might not be interested. Even the local investors might not be interested in venturing
with any business in Malaysia. Hence it will be difficult for Grocery-on-Wheels to
sustain in the industry.

Social

Grocery-on-Wheels business will definitely give social implications on society

and one of them is the changes the way people live. Why is that? The existence of
this business will make people’s lives easily because they will be able to purchase
grocery items that are getting delivered directly to their entryways without going to
the stores. This also give the people more time to play out their everyday activity as
they can arrange their goods whenever and they are no line. This also valuable for
them with inabilities and senior individuals for buying their grocery stuffs over the
Internet as this make things a lot easier to them. However, as good as it is, it also
creates a bad social impact as the tendency of fraud or online thefts or scammers
will be high. Hence it will jeopardize the business operations. Some people are still
depending on offline grocery shopping because the issue with online systems
because it can put customer off buying products because of the outlines on news of
dangers of grocery shopping online like identity theft, fraud and products been
deferred or not even showing up.

However, despite the news on the risks, the tendency of the business
experience such an issue is relatively low because it is a local business, not an
international business that involves multiple stages of processes in management of
goods and logistic purposes. Looking at the demographic, indeed that those who
want to utilize the services provided must have a great Internet connection and
people from low wages won’t have the option to utilize it. Even a computer, which
can keep them from grocery shopping online and getting the advantages of online
systems. However, the public authority is coming up with new strategies to
guarantee that each individual has access to the Internet.

Technology

There is no rejecting that we live in the midst of technology. Regardless of

what industry or part of life today we see, technology impacts it in some way or
another. It is altered the way we look at and do everything, particularly in business.
Grocery-on-Wheels business are utilizing independent and small grocery stores,
which then functions in another way because of technologies. Moving specific jobs to
an online platform has upgraded communication and further develop the overall
customer experience. In order to ensure that all the product information and its
availability are real-time with the customer needs, centralized data is important and
this is when technology takes place. Technological advancement is the key factor
that will made online grocery shopping a new trend based on the improved customer
shopping experience and easy management. How does technology will shape the
online grocery shopping? People’s refrigerator, freezer, pantry etc. where they keep
the groceries will be Internet enabled. They will share the stock levels and will also
scan the different stores that they normally shop from for the best offers. They will

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place an order on the stores for the needed items keeping in mind the need to
optimize the order value for free delivery etc. The robots will receive the groceries
and will keep them in their usual, designated spaces. They will speak out what they
need and the robots will bring the items from the respective places.

The use of technology will definitely help the business to grow in the future.
As online grocery shopping continues to grow, more and more people are
participating. The offline world is connected to the online world and hybrids are being
developed to provide a more streamlined shopping experience. Even today, offline
grocery stores are utilizing software systems that allow them to convert to hybrid
modes with easy technologies. Thanks to the optimization of many online stores and
the efficiency of the services many offer, it is becoming much more user-friendly to
do window shopping at their computer or smartphone than to visit each store in
person. Looking at the app itself, the business will be having a mobile app that can
easily installed through Apple Store or Android Play Store. Not to forget that
technology will also be used in advertising. Online presence nowadays is extremely
vital in order to connect with the customers and advertise. This situation puts the
technology usage in high demand and high dependency.

Environment

Online grocery stores and delivery services will definitely reduce the
environmental impact in a way that it reduces the overall carbon footprint for the
grocery chain and its customers who instead of driving in their individual cars could
be serviced by a few vans instead. Having to depend on supermarket or offline
grocery stores, there is the operation of the store, plus three transport steps as
follows: (step 1) warehouse to store, (step 2) customer to store and (step 3)
customer taking product home, where steps (1) and (3) are equivalent to the minimal
case. So, the additional environmental impact is found in the store operation, plus
transport step 2. In this general case, online purchases have less impact. Since
Grocery-on-Wheels emphasizes local formers and local grocery stores online,
everything will be delivered to them in packed/sealed containers/packets. So, by
choosing to shop from those platforms, indirectly, the customers eliminate waste, the
carbon footprint of the materials shipped, etc. it can be seen that online grocery
shopping isn’t the factor in contributing to environmental problem. Economies of
scale and scope come in through online services, as they aggregate the deliverables
within a geographical area. For example, if there are five houses ordering groceries
from one store, getting them delivered would cost just a single trip on a two-wheeler
or a car, with a route to service all the houses. This is much better than them
individually using their transportation, for going to and occupying parking at the
above store. App-based technology allows these types of aggregating services,
similar like what the business is offering.

Legal

In establishing any business, it is important to form a legal entity and register

the company as per the legal rules for authentic registration for a name, a form of
business and further register the business for taxes as per the rules. Grocery-on-

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Wheels must acquire authoritative documents to sustain in the market and to be
recorded in any administration postings of business. It is an acknowledgment and a
way to classify the business under relevant heads. Also, a legitimized business will
continuously be on the more secure side since the records are substantial. However,
for property registration, the business will not be applying for that as no property is
needed, reducing starting costs. Rent, deposit, maintenance charge and any
property related terms will not be entertained by the business. however, there is a
need to apply licence for the online grocery stores that will be participate in the
business. Location is a very vital element that directly influences sales. For example,
most grocery stores are located in a rural area and their existence is needed so that
people recognize the store within their locality. Thus, concerning the location, a clear
analysis of the market will be assessed. Not to forget our home delivery partners,
where the vehicles used has to registered for its commercial purposes. This is
because if a vehicle is found to be utilized for business purposes with private
enlistment, then there are high chances of trouble. The public authority has the
privilege to hold onto the vehicle under such conditions. Hence why the legal
requirements to create online services need an extra attention.

5.1.2 INDUSTRY (REFER 2.4)

5.1.3 COMPETITOR

Theoretically, a competitive evaluation is a method for distinguishing rivals

and understand competitor’s assets and shortcomings corresponding to our
business. It assists us with measuring how to check competitors and refine our
strategy. Leading a competitive evaluation is significant because we will construct
strategies for how to venture into a new and existing market. Various factors are
being selected. In this case, two competitors are seen to be the direct competitors of
our business: Panda Mart and Tesco Delivery. Both acts as direct competitors,
where they offer similar services and target the same customers, but in different
geographic areas. This is because these two competitors are highly known in urban
and congested areas, unlike rural areas where Grocery-on-Wheels targets such
areas. Both provides similar service, which is the online grocery shopping. However,
in the context of fast delivery, Tesco Delivery lost its way as they are unable to
provide a fast or same day delivery, as delivery can also be scheduled the following
day. Hence why the possibility of getting less freshness on the products will be high
for Tesco Delivery. However, on this aspect, Grocery-on-Wheels and Panda Mart
are highly known with fast delivery as customers can simply order grocery products
through the Food Panda app and provide with the delivery. Despite the similar
deliverable time, Grocery-on-Wheels is upgrading its game in providing the broadest
quality products compared to Panda Mart that only provides dry products like
household, toiletries, snacks and others but not fresh products like chicken, meat,
vegetables and others. Hence why for this aspect, Panda Mart loses its game but
Tesco Delivery upheld its services as they provide a wide range of products since it
is one of the top players in the grocery industry. This aspect depends on customer’s

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preference of whether they want the deliveries to be in the same day or book a
delivery slot, as they don’t have the urgency.

Furthermore, from a management aspect, it can be seen that Panda Mart and
Tesco Delivery have multiple stages on their inventories. This is because Tesco
Deliver is the mass market retailer aimed at the population who had enough money
to not have to shop cheap, but not enough money to shop at Jaya Grocer. This
group of people now have less money so either shop in cheaper stores or they still
shop in Tesco and spend less and buy items with smaller margins. This puts Tesco
on hold when it comes to price competitiveness as Tesco doesn’t cater to a huge
group of people classes. However, Grocery-on-Wheels are the opposite. Although
the geographic areas are mostly in rural areas, the lower, middle and higher classes
can utilize it accordingly. Each class are able to buy high quality and fresh grocery
products without having the second thought about the price. It can be seen that
Tesco Delivery is nearly to be seen in the price competitive and its target market.
Grocery-on-Wheels provide a much cheaper price with high quality products that can
bought by every class, no bias to any of these classes. Besides, Tesco Delivery
business models are quite complex as they required multiple warehouses to store
their products. This complexity is the reason why Tesco Delivery is unable to provide
cheaper price because the inventory costs need to be balanced eventually. Unlike
Grocery-on-Wheels, limited inventory is needed as it is a direct business relationship
between sellers and the customers through our services. Hence why our business is
able to sell products cheaper than other two competitors.

Table 1 Competitive analysis

Factors Grocery-on-Wheels Panda Mart Tesco Delivery

Weight Rating Score Rating Score Rating Score
Deliverables 0.20 4 0.80 4 0.80 2 0.40
Target market 0.10 3 0.60 3 0.60 4 0.80
Product 0.20 4 0.80 2 0.40 2 0.40
quality
Price 0.20 4 0.80 2 0.40 2 0.40
Inventory 0.20 4 0.80 2 0.40 1 0.20
management
Geographical 0.10 4 0.80 3 0.60 2 0.40
area
TOTAL 1.00 4.6 3.2 2.6

5.2 INTERNAL ENVIRONMENT

5.2.1 MANAGEMENT

Online grocery business and delivery service are totally dealing with the web-
based presence and its activities, for example, product branding, customer
management, online promotions, social media presence and to give the customers a
lovely buying experience. It also incorporates the ordinary updates and

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improvements with arising technologies to help the sales. When it comes to
inventory management, Grocery-on-Wheels have a significant impact on that by
making it easier for buyers to purchase goods anytime and anywhere within the
designated geographic areas. As for offline grocery stores, buyers typically only had
access to products that were available in their local area. This was due to the fact
that buyers needed to visit physical stores in order to examine and purchase
products. However, with the advent of online grocery stores, buyers can now
purchase products from sellers located nearby. This has made it easier for buyers to
find and purchase desired products and has also allowed them to compare prices
between different sellers. As a result, online grocery shopping has led to increased
competition among sellers, which has resulted in lower prices for consumers.

Hence why everything is in an automation system. This business makes most

process as computerized as possible without numerous sub-processes/decision
points. This chops down the time for information stream starting with one point then
onto the next. For instance, ordering fruits nowadays could imply two tabs in their
mobile phones done in 10 seconds. Only a couple of years prior, this might have
required as long as an hour going to the actual store to browse though a wide range
of products and then pay verbally. The reduction in inventory management is what
makes the business popped up compared to other businesses, leading to customer
retention. Another one is the banking aspect as using this service, customers can
perform a transaction 24-7, getting to a bank during working hours, lining up, filling
documents and then bodily get the cash. Nowadays people pay through online
transactions.

5.2.2 MARKETING

When it comes to financial management, Grocery-on-Wheels don’t have to

worry much as it requires low-cost advertising and marketing compared to other
businesses. Online grocery stores shouldn’t spend a minimal expenditure to sell their
grocery products. The area of online grocery shopping has various lower-priced,
brief ways to deal with online commercials. Most are visual channels and sellers can
show off their product. As an example, the sellers can utilize advertising and
marketing equipment to add motion pictures, infographics, accurate first-class
decision images. They will add life to standard, boring text with the usage of DIY
functions to create customized offers, coupons, A+ content material and backed
commercials. This business offer seller’s insight tools that may be used to examine
customers. It is like a two-in-one marketing management package that benefits the
sellers and customers. Indirectly, these independent sellers will have enough
exposure to sell their products and not to spend more on marketing purposes.

Furthermore, since this is an online business, having an online presence sets

out such countless open doors to reach out to and draw in with the target audience.
Whether the sellers are new businesses or local, the business marketing
management tools can turn into an integral part of the business’ day-to-day
development. The business only spotlights on customer experience strategy. It is
essentially a personalization of the service with the added flavour of the human
touch that has an effect. It is imperative that the customer base is given importance
and treated as an asset to use and lift the marketing endeavours of the business as
a whole. The business doesn’t have to implement many marketing strategies other

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than customer experience. It can be driven by every interaction a customer makes
with the sellers. It is not always necessary that, a customer will buy the product and
use the business platform if that service fulfils their needs. In fact, customer might
like the product but might still have a bad experience on different touch points.
Hence why the business is adapting such a strategy to create loyal customers.

In addition, the business can help sellers in personalizing customer profile

where the business uses an online analytical instrument to assemble information
about every customer’s shopping preference, shopping history, patterns, recurrence,
areas they buy from, age group, occupation, how they found out about the sellers
and any issues or protests that they have had before. Utilizing this information, with
the assistance of the business, sellers can assemble a thorough profile for every
customer, which can assist the sellers with offering all a more modified shopping
experience. Furthermore, the information that they gather from every customer can
assist with selecting common aspects among all of the customers. This can further
help them distinguish other potential customers who share these attributes and
target them in places they know they will see, like online promotions through social
media.

5.2.3 PRODUCTION/OPERATION

Grocery-on-Wheels are utilizing B2C business model as the part of its

operation that includes sales between online businesses and consumers. This
business acts as the online intermediaries where consumers use the mobile app to
bring businesses and potential customers together. They don’t own any product,
service or brand and their main responsibility is to shape a way between those who
sell and those who purchase. This business allows local online grocery stores to sell
their grocery products on our mobile app under their individual brands. Customers
can then visit the app and make purchases straightforwardly from the sellers. This
business models give various advantages to the sellers as it reduces overhead
costs. Every business brings about some part of overhead costs. Running the
physical store alone can involve costly overhead costs like lease, employee
compensations, property taxes, maintenance, service bills and protection. But the
business also has other overhead costs that aren’t connected with the physical store,
like stock purchases and the distribution centers to store them. Hence it adds even
more overhead to the already costly process of operating a business. By using this
business, they can fundamentally diminish their total overhead costs, since they will
be able to run their store totally online and will not need a physical store.

Moreover, this business is essentially a web-based form of grocery stores,

where rather than strolling into a store to make a purchase, the customer simply
needs to go online. Processes like placing and accepting orders and payments
happen over the Internet, which can make things more straightforward for them.

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Also, the delivery service provided by the business is a customer-centric feature as it
helps customers to connect with local stores of particular geographical areas and
giving them a better experience of shopping by providing them fast delivery of the
purchased products. Not to forget with the current situation where local businesses
are struggling to stay afloat right now, due to the ongoing pandemic. This delivery
service operation is pretty much perfect for those sellers who would want nothing
more than continuity in their businesses. By delivering goods to the doorsteps of
their customers, the seller can easily move goods and make money. If you think
about it, if a seller is selling through their store and starts selling through an online
portal as well, then it would be an amazing case of generating new revenue streams
to expand the business.

5.2.4 MANAGEMENT INFORMATION SYSTEM

Basically, this business will only need a mobile application in managing the
information system. Mobile apps are needed when expand in sales. The main
objective of any business is to create revenue. All marketing instruments, in fact,
should help in accomplishing this goal. The mobile app can increase sales of the
business because it fills in for the purpose of drawing in and retaining customers.
With built-in highlights, for instance, loyalty programs and pop-up messages, they
can motivate users to buy goods or services in the business as well as propose
different promotions and benefits. When a customer goes out, they can fail to
remember anything with the exception of the keys, wallets and phone. Simply
envision: the business gets into all the phones of customers, potential customers and
in fact, stays in their pockets. Sellers interact with customers continually when they
utilize their cell phone. Today, everyone who is somehow associated with the
promotion of business, discussing the target audience. The stunt is that the mobile
app accumulates around itself only the target audience. Let’s imagine, the customer
sees the advertisement of the mobile app of the grocery store, they are offered to
install the app in order to know about the consuming vouchers and unique offers.
Who will install this app? Those customers who are already wanting to buy
groceries, that is, the target audience. After all, if the customers don’t buy groceries
or isn’t keen on purchasing, regardless of how hard they attempt to persuade, they
won’t download and install an app of the grocery store.

Talking about the needs of a mobile app, providing self-service options is also
a part of the system management. A website bundle can draw in traffic through web
search tools and by changing users from the site to the mobile app, the sellers will
keep on working with the potential customers further and they couldn’t leave by
simply shutting the browse page. That is, when a customer visits the seller’s website,
they can easily leave it and stop communicating with the business, but when the site
makes an interpretation of the customer into an ap, work with the customer is just
beginning. Such a bundle of site and mobile app gives a twofold advantage to the
business.

6.0 FINALIZATION OF SWOT

6.1 OPPORTUNITIES AND THREATS

Opportunities

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1. New Partnerships

As for now, Grocery-on-Wheels only caters to four major segments:

grocery, medicines, toiletries and household items. Although these are
fundamental products for customers who don’t favour venturing outside because
of the pandemic or excessively occupied with personal stuffs, it would be savvy to
start investing in new partnerships with different segments. There are product
classifications which are at present developing tremendously: bakery section,
food delivery section, clothing section and pet supplies. These segments should
be catered by the business which we all know it keeps growing. Note that all
these segments are being handled by local businesses. Instead of focusing only
for grocery products, Grocery-on-Wheels would broaden up its distribution
channels by taking a lot more local businesses that sell other than grocery
products. Indirectly, these local businesses will get the exposure and support
from the community. By supporting more local businesses, at the same time they
are actually supporting the local community. Spending money there assists to
stimulate the local economy and keeps business blasting within the nearby
district. These smaller-sized businesses help to create and support occupations
as well as keep the region dynamic and buzzing with customers. There are tons
of local people that venture into business, for example, baking, cooking, own a
pet shop and sewing unique and interesting apparels. Also, not to forget that due
to the pandemic, many people lose their jobs and they had to venture into
business to gain money. Without getting to know these businesses, they will
eventually lose income, leading to high poverty. Hence why Grocery-on-Wheels
should widen its partnership with other local businesses from different segments
as a sign of support and exposure. From there, local people within the area might
noticed the existence of these businesses.

2. Market Expansion

Grocery-on-Wheels are currently having operations within Klang Valley

area only, specifically in the rural areas. Perhaps the business can be expanded
by reaching opportunities to more rural areas in every state in Malaysia. As of
now, the online grocery market is filling in Malaysia and is supposed to climb
globally as well. What makes it more interesting is that people that lived in the
rural areas are starting to get used with the online grocery shopping. Although
there is a high possibility that this business can grow internationally, however, it is
difficult as there are many top players in the online grocery market, like Amazon,
Walmart and others. Hence why it is not the right move to expand into
international market. Instead, Grocery-on-Wheels should expand its market
locally to a wider place. In every state, Grocery-on-Wheels lead the way on the
online grocery market within the rural areas. It will be vital for the business to lead
the local market because it tends to be more challenging for them to remain
important, they continually need to deal with adding new products to their racks
and new benefits for their customers. This is something positive, since it sparks
healthy competition with their bigger rivals. It also urges them to develop, adding
remarkable twists on the things they offer in order to keep customers returning.
The products are constantly changing in order for them to stay aware of current
interest. This will definitely help the businesses in having the opportunity to fill

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more modest niches with less common and more innovative products. From
there, Grocery-on-Wheels would be famous of bringing the local businesses
ahead in the rural areas. At the same time, it will also create tourist expansion as
other states might travel to another state to buy particular products from the local
stores. This is possible if the local stores itself are producing such a unique
product that cannot be found anywhere. Thus, expanding the local economy.
Why this opportunity is bright is because top players in Malaysia wouldn’t find this
as worthy for them to expand, especially in the rural areas. Hence why Grocery-
on-Wheels should do.

3. Quick Expansion on Customer Segmentation

Generally, we all aware that rural environments do not accommodate

overpopulation very well. Lack of opportunity for economic advancement, fewer
jobs, especially well-paid work. Many people do not feel they fit in the restricting
social culture of rural areas. However, this is probably ten years ago. Now, the
world has changed. Many companies, local or international have decided to
venture into the rural areas. Opening up manufacturing plants. This is because
the cost of living there is cheap hence why it is a bonus point for the potential
workers. With that being said, creating employment opportunities lead to an
increasing population on those particular areas. Which then making the place
fully equipped with necessities is extremely important. Hence, more people living
away from home working here. Hence, the target group is increasing fast. Initially,
only focused on the local people within the geographic areas. But now, due to a
high number of migrations from the urban city into the rural areas, the customer
segmentation has now evolved to a wider segment group. Their expectation of
having online grocery stores is high as previously in the urban city, online grocery
shopping is the norm. So, Grocery-on-Wheels will have the opportunity to create
wider customer segmentation and cater to a high demand.

4. Venture into Cross-Selling

Undoubtedly, local online grocery stores are selling good products,

however, it doesn’t mean that the products are easily to be sell. Good products
need a good strategy to become successful. That includes everything from a
good differentiation to proper positioning to well-targeted sales. How is that?
Cross-selling creates a huge advantage for Grocery-on-Wheels as it is done
online. Cross-selling is a sales technique whereby customer is encouraged to buy
a complimentary product to the product already been bought. For example, when
searching for toiletries, let’s say, body wash, body wash searches often show
products such as shampoo, tooth paste, tooth brush and other toiletries related
are bundled together. Since all these items compliment each other or being used
in the same location, bundling ensures that more items get sold. Product
suggestions are also often shown based on their recent buy or recent searches. It
is often indicated as “You might also like this.” This is how complementary
products are sold, which is known as cross-sell in marketing items. Although this
is being used on e-commerce, however, it can also be used in online grocery
shopping. Grocery-on-Wheels can interpret cross-selling in the mobile app,
attracting more potential customers and increasing revenue.

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 5. Increase Employment Opportunities

As the time goes by, technological advancement will be considered as the

new norm in any business sector. Every business will implement any sort of
technologies into their business in various forms: management, inventory,
marketing, human resource and many more. As for Grocery-on-Wheels, this will
be an opportunity for them to venture more on the digital world. As the market is
expected to expand, indirectly, the business will need manpower specialized in
digital marketing or information system that really knows well on how to develop a
website, integrated solution and many more. This will create employment
opportunities for fresh graduates either within the local areas or not, with the
qualifications needed. Grocery-on-Wheels are expecting to hire those who has
complete digital marketing knowledge to cater to each state. This means that the
digital marketing will become highly competitive in the future. The market has
changed a lot and so the way of working is also evolving. The traditional ways of
marketing are no longer effective anymore. Statistics showed that digital
marketing is moving up with an amazing development pace of 40 % and it won’t
stay stable (Kang & Namkung, 2022). This creates an opportunity for the
business to venture into digital marketing and hire employees as the market
expands. Not to forget, increase employment opportunities lead to an increase
economic growth.

Threats

1. Well-Established Competitors

We would say that it is particularly challenging to compete against the

well-established competitors in the same industry as us. Put aside grocery stores
that have started their delivery models like Tesco, Aeon and others. The rise of
well-established competitors in this case can also be seen from the different
industry. For example, Air Asia, Grab, Bungkusit and many more huge
competitors have started their venture into creating a grocery delivery models.
These organizations not only have a solid customer base, but they are also
supported by strong financials and solid partners. As a comparison, we all know
that Grab is famous with e-hailing services, but now a well-established competitor
like Air Asia, who is not in the e-hailing industry, venturing into this. It creates a
challenging environment because both are big companies and the dependency
on purchasing power of customers is extremely high. Hence why it depends on
the product itself. Does our service offer something new or are we simply copying
an existing service? If the product is not truly innovate compared to the
competition, how do we differentiate – significantly cheaper, superior quality? The

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competitive advantages now might fall into various categories: price, quality,
market segment and geographic market. It will be challenging for us because we
need to constantly innovate our services and asking sellers to always think
outside of the box and maintain the product quality. There is too much on the line,
that a small step might jeopardize the entire business, leading to bankruptcy.
Also, since Grocery-on-Wheels has a small presence in terms of areas covered,
hence it gets a lot of competition from other start-ups that operated in the city as
the coverage market there is relatively high.

2. High Dependency on Internet

When it comes to the success of Grocery-on-Wheels or any business,

internet plays a key role. To market the businesses and to promote the products
and services. However, having a strong internet connection is challenging in
certain geographical areas, especially the rural areas. For rural area, not much of
coverage can be seen and this will affect the business continuity. If no coverage
area, we need to discuss with the closest Internet Service Provider whether can
they link and pull connection to rural areas. That means we have to pay
expensive and massive amount of money to pull or upgrade/install new or
existing internet lines such as fibre optics to the location. But still, a good
performance cannot be guarantee yet. With such difficulties, it will create an issue
for the sellers to have a direct connection with the customers and vice versa.
There is definitely pros and cons. With high dependency on internet for efficient
functioning requires huge amount of money, leading to a proper financial
planning and need more investors. However, with low dependency on internet,
the business will not sustain long-term and lead to loss of sales.

3. Data breaches

Online grocery shopping is one of the fastest-growing industries that offers

extensive customer experience and convenience to customers. But on the other
hand, it has raised some serious threats for the customers and sellers as well in
terms of security and fraud. One of them is data breach. Grocery-on-Wheels
allow customers to purchase grocery products online by entering their personal
details and card information. Such data is the gold mine for hackers and
cybercriminals. This is one of the major security threats for any online platform
that if not taken proper measures, they have higher chances of data breaches.
Also, fraudulent purchases, where fake sellers can also impersonate other local
sellers. With the ease of use of cards to purchase items, most of the time
businesses fail to identify if the card belongs to the authorized person only or not.
Fraudsters often use stolen card to buy items that later on lead to chargebacks.
Impersonation can also be done as customer’s account is being taken over and
they can easily imitate authorized users by logging in to their accounts. This will
create a false payment and false orders. Hence, it will create a huge problem to
both parties.

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 4. Pricing

Biggest threat in Grocery-on-Wheels is losing customers. This can happen

because of losing out on price/discount. This is because the prices don’t consider
administration expenses and delivery tips added per order. Such a markup would
deter customers from shopping with Grocery-on-Wheels when they are able to
stroll into the stores and pay less expensive prices but without the comfort of
getting products delivered to their home. Because offline grocery stores have a
huge market and strong financial, they can easily reduce their retail prices to
attract the customers. There are stores that have discounting as a cornerstone in
their go-to-marketing strategy tend to attract price-sensitive buyers, meaning that
they cannot stop discounting without a loss of significant sales volume.

5. Delivery Service

Undoubtedly, that the delivery cost is expensive, especially for people

outside of cities. Also, it is a real threat for other delivery service companies. This
is because they generally do not sell products in large quantities which keeps the
products fresh. They can pose a threat for Grocery-on-Wheels as per the current
analysis, people look 70 % at the price and 30 % at quality when they buy any
item. In short, they prefer to spend less and look for a substitute whose quality
may be similar rather than buying an expensive product with expensive delivery
fees. Also, because the deliveries are being done within the geographical areas
and limited delivery service, to have only one vehicle that caters multiple orders
would be exhausting and increase costs. Also, the inability to track orders in real-
time and difficulty in delivering an unmatched customer experience will occur due
to human factor like traffic jam and others. These factors will pose a threat to the
business as they didn’t receive a good delivery service, leading to a change in
customer preferences.

6.2 STRENGTHS AND WEAKNESSES

Strengths

1. Diverse Product Portfolio

A product portfolio is the range of associated products or services which

Grocery-on-Wheels offer to customers. The product range is intended to appeal
to and satisfy the needs of a specific segment of the market. Due to complexity
and cost, it is impossible or very difficult to offer all products to all customers. This
is why this business focuses on a specific niche or segment. In the context of a
grocery shop, the business not only offers grocery delivery but has also extended
local grocery stores to incorporate medicines, household equipment and toiletries
because of its popularity, among various ages, which shows a decent scope of
variety on products and customer base. Customers can also share their orders
with their loved ones. What makes it a strength to the business because it covers
two areas for diversification where customers can choose. The first one is not
buying everything all at once. Diversifying over time. Ease in and out of positions.

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Trying to keep a core position and trading around it. From here, customers will
buy again from the sellers. It is quite surprising because people have the mindset
that local grocery stores don’t have such a diverse product portfolio and only sells
certain items only. But worry not, all local grocery stores under Grocery-on-
Wheels have a diverse product portfolio that customers can depend on. Besides
grocery products, other segments like medicines, household items and toiletries
can easily find in the service. Although big players have also a diverse product
portfolio on the line, but note that this business caters to a certain geographical
area that doesn’t have that exposure on these big players. Also, together with
fast delivery, it is a solid strength.

2. Delivery Scheduling

One of the key features that Grocery-on-Wheels has is the delivery date
scheduling where customers can plan their online grocery shopping and delivery
through the app or the website. This is an incredible element that empowers the
customers to oversee time versus conventional deliveries where customers are
just given the date and not the time of delivery. This flexibility that the customers
have while shopping truly assists with customer loyalty. Taking a gander at the
survey, customers want more and more flexibility in arranged product delivery
choices and our business need to introduce this to help changes. All the
customers don’t have time to stay nearby for delivery of their purchase, so need
of the hour is to have a scheduled delivery (Campo et al., 2021). Normal delivery
will work out positively for not many customers but majority of them wouldn’t like
to stand by longer and will be willing to pay for preferred delivery schedule.
Customers can choose day and time of delivery from range of given choices.
Note that, customers can also have the same day delivery options. How cool is
that? There isn’t anything prevalent than fulfilling needs of the customers and
surpass the rivals. With this element, give flexible delivery options to the
customers.

3. Communication

Grocery-on-Wheels allow customers to discuss straightforwardly with the

seller so that replacement or customer inclinations can be considered. This
speedy feedback from the mobile app is the genuine strength of this service in
the online commercials. Feedback is one part of online grocery business because
many customers before buying a product, they will check feedback/reviews after
that they will be purchasing. Especially for start-ups businesses like us, it is
extremely important for us to cater a quick feedback or review as it builds the
brand image. From there, customers will know the sellers better. Also, it assists
with further developing customer retention. Fulfilled customer will remain.
Unhappy customer will ultimately find a superior option in contrast to the business
and leave. Giving speedy feedback decides whether the customers are happy
with the service and recognize regions where they should improve. For instance,
in the mobile app, it has live chat where it gets the issue tackled right away. It
expects the customer’s necessities, assists with directing the customer journey
and satisfy their business objectives. Also, because most customers are from

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 rural areas, their exposure or adaptation with mobile app is relatively low, hence
an effective communication that the business has will act as guide. As an
alternative, the business also creates an effective communication through phone
support because there could be no better approach to understand the customers
than by conversing with them straightforwardly. It permits to incorporate a rapport
and then transform a potential lead into a life-long customer.

4. Low-Cost Business Model

Grocery-on-Wheels uses a low-cost business model: B2C and hyperlocal

delivery service. B2C models indicate that sellers don’t have to pay any kind of
rent. Running an online grocery store is cheaper in comparison to running a
store. For running a physical store, they have to pay shop rental and pay bills like
electricity bills and so on. These factors force the sellers to charge more money
as compared to online marketplaces. Also, B2C models don’t have the need for
the sellers to deal directly with the distributors, instead they are the distributors.
Multiple stages of inventory have been cut-off and customers deal directly with
the sellers that act as the distributors. A smaller hierarchy in their business model
enables them to reduce the cost of product by around 20 – 30 %. Hence why
most products are cheap than offline shops. With a low-cost business model,
sellers can afford working on lower margins. The fact that they sell way more
products enable them to sell products on less margin and make profits by selling
a large quantity of products. Furthermore, Grocery-on-Wheels are using
hyperlocal delivery service where they only deliver to a certain area within a short
period. Therefore, it is obvious that delivery time reduces drastically and consider
to be one of the best options for local businesses to grow.

5. Convenience

Online grocery shopping offers the convenience and benefit of shopping at

home. Goods are delivered within the same delivery and at the same time,
keeping the freshness of the products. Also, seeing the state, the importance of
online grocery shopping cannot be denied. Given the situation, getting hold of an
online grocery seller along with a contactless delivery service provider is the ideal
way to go about it. It saves the customers from the hassles of the exhausting
journey that they make to the physical stores. How convenient is that?

Weaknesses

1. Dependency on Sellers

Grocery-on-Wheels’ business model vigorously relies upon other local

sellers and their stock. When their stocks are inaccessible, consumers might
have to acknowledge a replacement with a more exorbitant price tag or just

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manage without the customer getting that item for them. When consumers go out
to shop, if they don’t find a product in-store, they need to proceed to look for it
somewhere else without paying extra to do so. If the sellers choose to start up
their delivery service, this can seriously disturb the business and this would mean
the inevitable loss of customers who are faithful to the sellers. Quality is what
matters. If post ordering customers are not getting quality products or
unavailable, then a customer will never order it again.

2. Limited Delivery Coverage

The distribution is limited to a certain area. Not spread to other areas.

Because of the coverage areas are primarily rural, it has a poor infrastructure,
leading to long excursions, wasteful routes, inefficient transportation technology,
etc. The expenses of fuel and time wastage must be borne for just one bundle. In
addition, customer subtleties. Perhaps the greatest shortcomings are having a
restricted delivery coverage to rural areas. Occurrences like incorrect location,
remote areas, cramped locations, nonappearance of the customer to get the
items, unusual cancellations of orders, return orders and other might occur during
the delivery time.

3. Mismatch on Items Delivered

The tendency of sellers mismatching on items delivered is high because

they work by themselves. When customers receive the wrong items, it will create
a cold relationship and returning the product will be a huge problem for them. The
return exchange contrasts from one business to other. In the case of online
grocery shopping gateways, customers have to endure the expense of retuning
the product. If they return the product, they won’t be paid the transportation fees
which they had paid earlier. It will create dissatisfaction. This incident somehow
cannot be reversed because the number of customers has increased, to cater to
that huge demand, it requires finesse to maintain the service quality. Thus,
additional work is needed to get the orders accordingly. It will waste the
customer’s time and they will probably stop buying in the app and go to a
physical store instead.
4. Lack of Interaction

In the context of offline grocery stores, deals partners and advertisers

shower personal attention on customers and give total subtleties on the product.
If they have any questions, they can ask right on the spot. But this doesn’t occur
in the case of online grocery. Nothing remains at this point but to see the image
and read the description. Some app allows customers to check customer reviews
but there have been incidents where fake reviews are everywhere. Hence it gives
confusion to the customers to whether or not buying grocery products from that
particular seller.

5. Unknown Sellers

There is a reason why some customers don’t like shopping grocery

products with local sellers. This is because they are not well-established brand
that has a strong customer base and financial. In the online business, there are

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 numerous choices to purchase, from notable and trusted brands or chains to
small businesses or the people themselves selling what they have and, in this
context, there are times that customers can’t completely trust all the sellers.
Assuming they choose to purchase with third parties or small businesses, there is
a gamble that the product won’t show up, something entirely different will be sent,
the money will be left and only time will be wasted and doubt will be developed in
this business model. However, it doesn’t mean that all local sellers are not good,
but it is just a matter of exposure and brand that they don’t have which is why
Grocery-on-Wheels emphasize local sellers that genuinely sell quality grocery
products so that the customers could change their mindset of trusting the local
sellers and support them.

7.0 FORMULATION OF ORGANIZATIONAL OBJECTIVES

7.1 FINANCIAL OBJECTIVES

At this point, we have to think regarding where we want to see this business
within the next 10 years. However, for start-ups business like us, we would like to
project our financial plan up to 3 years first and from there, we will evaluate and
redirect the goals if needed. The first financial objective is to exceed at least RM
300K of revenues in year 3, dominating the online grocery market within the rural
areas. Probably within that time, new partnerships, new market segment will be used
to expand our financial plan. Note that our first year of operation might be slow and
the revenue stream is most likely less than upcoming two years of business
operations. This is because business will penetrate the new market and it doesn’t
have a strong brand name yet in the market. Hence, it requires longer time to lay out
the brand through broad marketing campaigns and digital advertising as our
initiatives. Not much of changes on the fixed costs. However, as year goes by, the
changes on marketing and mobile app development for better recommendations is
needed, creating a much larger costs to cope. Also, the delivery service costs vary
as it follows the economic well-being. Also, during the first year of launch, the money
spending is relatively high compared to other years as we need to create a legal
entity, registration and business license for our business to even exist.

Moving on to our second financial objective, we are expecting to have huge

participation on local grocery stores, up to 100 stores within three months of our
launch. This is to create a solid foundation of the business so that customers can
easily browse 100 stores in one time. In order to gain that amount of participation,
we will be setting the prerequisites to create transparency. After we gain their trust
with the list of all benefits they will get and the market research, then we will be
looking forward to gain customers at least 100 people within a week. As we don’t
have loyal customers, it takes time for us to gain that.

7.2 STRATEGIC OBJECTIVES

Providing Customers with Fast Delivery

We will be providing customers with fast delivery services that can

differentiate ourselves from competitors. Indirectly, we will gain more customers very
quickly and also the trust of loyal customers. We know that with our business

29
platform and the hyperlocal delivery service is the next big thing. The customers can
directly come over to our website or app and place an order. If they are tied up with
our delivery service already, the customer’s order will be delivered within just a few
hours. We have the opportunity to be directly connected with the customers and can
provide fulfilment to them through doorstep, safe delivery mechanism. Customers
don’t even have to worry about the volumetric weight of the item or paying extra for
return orders.

Increasing Web Presence

This is one of the important strategic objectives as the nature of business is

online selling. We will be increasing our web presence by utilizing various marketing
strategies. One of them is by developing a content strategy as it gives them many
more reasons to visit the app. Also, we will be creating blog entries around popular
products. Distributing steady, valuable and all-around pleasant content drives lots of
traffic to the app. The stores are tied in with selling products. As a matter of fact,
most customers are searching for something beyond a local store to purchase from.
Social media marketing will also be our go-to-list when it comes to increase web
presence. It takes a deep understanding of customer behaviour and online marketing
to see any traction.

8.0 STRATEGY FORMULATION: TOWS MATRIX

EXTERNAL EXTERNAL THREATS

OPPORTUNITIES
O1. New partnerships
O2. Market Expansion
O3. Quick Expansion on
TOWS MATRIX Customer Segmentation
O4. Venture into Cross-
Selling
O5. Increase Employment
Opportunities
INTERNAL STRENGTHS
STRENGTHS OPPORTUNITIES
S1. Diverse Product (S4, S1, O1) Grocery-on-
Portfolio Wheels can become a
S2. Delivery Scheduling major player in the online
S3. Communication grocery market through
S4. Low-Cost Business partnership with other e-
Model commerce platforms. This
S5. Convenience offer is extremely precious
as the business itself is
utilizing a low-cost business
model. It will attract
investors to have a mutual
business relationship and
further expand.
T1: Well-established
Competitors
T2: High Dependency on
Internet
T3. Data Breaches
T4. Pricing
T5. Delivery Service
WEAKNESSES
OPPORTUNITIES
(S4, T3) Since Grocery-
on-Wheels are using low-
cost business model,
perhaps they will have an
allocated budget for
cybersecurity purpose to
avoid data breaches.
Having a consideration on
this issue will not just
create a safe platform but
also positive image for the
brand. Hence, customers
will feel more protected.

(S2, O3) Grocery-on- (S3, T2) With the backing

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 Wheels can become the
preferred online grocery
delivery service by
providing the customer with
a fast delivery. When
everyone is using the
business as their main
preference, it expands the
market quickly.
(S3, O4) Since Grocery-on-
Wheels are planning to
venture into cross-selling, it
will be easier for them as
they already have solid and
effective communication
with the customers. Hence,
to market the products
wouldn’t be difficult.
INTERNAL WEAKNESSES
WEAKNESSES OPPORTUNITIES
W1. Dependency on (W2, O2, O3) Due to the
Sellers hyperlocal delivery
W2. Limited Delivery implementation in Grocery-
Coverage on-Wheels, it creates
W3. Mismatch on Items limited delivery coverage.
Delivered However, because the
W4. Lack of Interaction market is expected to grow
W5. Unknown Sellers with wider segmentation,
they can be considerate or
create a policy with the
delivery partners to expand
the delivery coverage. With
expand delivery coverage
creates more demand.
(W5, O1) Sellers under
Grocery-on-Wheels are
mostly unknown in the
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of effective
communication and direct
connection knowledge,
Grocery-on-Wheels can
help sellers and
customers that don’t have
Internet connection and
offering them other
alternatives, for example,
phone support, in-store
support and others. As
long as the
communication continues,
customers wouldn’t feel
left out with no internet.
(S1, T4) Although the
prices fluctuate and
slightly higher than other
physical stores, but
Grocery-on-Wheels can
make use of its diverse
product portfolio by
focusing on freshness
and the product quality.
The customers wouldn’t
mind paying extra as long
as the quality is
guaranteed.
WEAKNESSES
THREATS
(W1, T1) Grocery-on-
Wheels can utilize their
competitive advantage as
being the only online
grocery shopping that
focus on certain areas to
create a more diverse
group of sellers so that
customers will not depend
to only one seller.
(W2, T4) Due to prices
fluctuation, perhaps
Grocery-on-Wheels can
create a promotional
strategy or a membership
plan for customers those
lives within the delivery
 online grocery market and
doesn’t have much
recognition to excel in the
industry. However, because
the business will have the
opportunity to create new
partnerships, not just local
but big players, this
partnership will enhance
their brand image and
create more crowd. Getting
recognition from them is a
huge thing as it is a token
of appreciation and trust
that customers can now
trust with unknown sellers.
(W5, W3, O5) In several
years time, Grocery-on-
Wheels will be expanded
and they will need
recruitment to cater to such
demand. As customers
always feel lack of
interaction when shopping
online, the employees can
now interact with them and
getting their orders
correctly. Customers don’t
have to worry anymore
about incorrect orders as
each order is being
accessed with adequate
manpower hired by the
business.
9.0 STRATEGY RECOMMENDATIONS
area. The price of the
product can be increase,
in return, the delivery
coverage will be
expanded for few km.
(W4, T2) Since it is an
online grocery platform,
some customers might
not have the privilege to
order online. At the same
time, some customers
feel like shopping online
lacks of interaction. How
to overcome both?
Grocery-on-Wheels can
use other alternatives like
providing a complete
catalogue to be sent to
their houses and from
there, they can order
through phone.
Customers will feel closer
to the seller and direct
interaction can be seen.

9.1 CORPORATE LEVEL STRATEGIES

Market Penetration Strategy

In order for Grocery-on-Wheels to create a successful digital system, the

initial challenge will be shift to local grocery stores operation to a platform-based
system. There must be complete synergy between all the components and different
operational aspects. Without this, the stores and also Grocery-on-Wheels will not be
able to penetrate the online grocery market and customers might not see the value in
buying from the platform. However, if all the digital components are aligned, they can
easily penetrate the market. Various strategy can be used in ensuring the digital
transformation is done accordingly.

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 Looking at the figure above, we can see that local grocery stores and
Grocery-on-Wheels could together create a digital system which will serve as the
backbone of the grocery delivery and potentially several other services. How? First
thing first, verification and validation through the database. What will make the
business preferable even for accessing it and knowing the services offered? A
secure database. The database must be password secure to save user information
from any spam and endure their privacy. Any sort of technology will be used for
validating the information whenever a user tries login-in and this helps to secure their
account from any external attacks. Furthermore, in making sure customer needs are
being taken care of, augmented reality will be used. People buy after consuming it
and augmented reality is the added reality that ensures having added experiences to
the camera views. The technology usage started with gaming app and now is
conquering the grocery sector and ensure the item suits the customer needs. In
addition, artificial intelligence is also important in this strategy. It is too hectic for the
users to search for the products or reach the customer supports. Adding AI to the
product helps add the chatbot features to the app and ensure 24/7 availability to
solve any issue. This might also be helpful to add the recommendation systems to
ease the searching for the users. Additionally, it is also helpful in accurately
analyzing the user reviews and comments and helps the business get proper
knowledge of the improvements required. With all these digitalized systems being
set together, therefore the business is ready for market penetration. If one of the
systems isn’t integrated with other service, hence it will be challenging for the
business to penetrate the market as the loop itself is actually similar to other
businesses as well. Ended up as a weakness.

Product Development Strategy

What will be Grocery-on-Wheels approach to product development? One of

the strategies is customer obsession. This is because we believe that product
development should start with the customer needs and benefits. We will implement a
working backward strategy, where we will attempt to work in reverse from the
customer, instead of starting with a thought for a product and attempting to bolt
customers onto it. While working in reverse can be appealed to a particular product
decision, utilizing this strategy is especially significant when evolving new products
or highlights. For new drives, we will begin by composing an internal public

33
statement reporting the completed product. The target audience for the public
statement is the new/updated product’s customers, which can be retail customers or
internal users of a tool of technology. Internal public statements are focused about
the customer issue, how existing solutions flop and how the new product will
overwhelm existing solutions. If the benefits recorded don’t sound fascinating or
energizing to customers, then perhaps they are not. Instead, we should continue
repeating on the public statement until they have come up with benefits that actually
sound like benefits.

We will focus on making extraordinary products and afterward continue further

developing them as per market feedback until they are sufficient to take them to
market. They don’t release many products in order not to saturate their customers
with too much choice but they do try out new ideas because there are always people
who will buy the products regardless of whether or not they are great. In order to
start an idea, we will need the basic knowledge of how it will be developed. This is
called customer development. We will use software that helps in creating products.

9.2 BUSINESS LEVEL STRATEGIES

Low-Cost Strategy

Besides our main intention of being the local online grocery stores and
delivery services by providing high quality products, fast delivery and customer
experience, it would be our utmost priority to be one of the leading players in the
online grocery market that focusing on local grocery stores only. How is that
possible? In few years time as our business is expand to much wider segment and
areas, we would create a franchise, opening opportunities for other small
businesses. The accompanying advantages give a decent justification to begin a
business by obtaining a franchise. This is because it has lower risks. Franchise
activity has a lower danger of disappointment than a free business. The insights on
this change contingent upon the meaning of disappointment. Whatever
measurements are utilized, they reliably propose that an establishment will probably
prevail than are free businesses. Will be set up item or administration. We will offer
something that has sold effectively. An autonomous business depends on both an
untried thought and activity. Studies stated that the best franchises nowadays are
online services and our business is the best low-cost alternative (Gumasing et al.,
2022). They are the franchise options for many reasons, low cost and less initial
space. Online grocery shopping is the best investment because online services are
becoming a basic need in everyone’s life. We can cater to customer needs on
particular grocery products, process it and then delivers it to their doorstep. All they
have to do is place the order.

10.0 SUMMARY

It is important to have a strategy for the business because we should always

be thinking about how to grow the business and reach the goals faster. It provides
clarity and focus and this is something that most businesses lack and it is one of the
main reasons a lot of start-ups fail. Having a business strategy that gives the
business a sense of direction can be the difference between making it to the top of
the market chain or being stuck at the bottom. Hence why, Grocery-on-Wheels are

34
 firm enough in deciding the objectives of our business. We would like to be different
from other big players in the online grocery market. We will be enhancing the
existence of local grocery stores in certain locality and reducing the gap and build
bridge from local sellers and customers. This will also create a competitive
advantage for us as penetrate the market that is expected to grow. The future of
online grocery delivery services is bright. Statistics show the increasing demand for
online ordering and delivery business each passing year (Tyrväinen & Karjaluoto,
2022). Nowadays, online grocery has come into the fashion. People want their
grocery items at their doorstep. Grocery e-store businesses is very profitable across
the world and it will be comparable in Malaysia also. As we realize that world is
confronting this large crisis. Here the online businesses are in high demand. When
the demand is extremely high then accessibility is the only thing that is important.

From top brands to local stores, all are going through these digital
transformations to excel in the market. Hence why Grocery-on-Wheels are getting
the customer experience at the highest level. With the use of digitalization, we can
guarantee that the customer experience will be good with the existence of our mobile
app and giving them with an opportunity to explore grocery items that will upgrade
their shopping experience. Why this approach is being used? Because it bundles up
with customer satisfaction, leading to loyalty customers. When customer experience
good, they will feel satisfied, they will keep returning to use our service. That positive
cycle is expected to be continuous as long as the customer experience is being
taken care. In addition, giving the best customer experience wouldn’t work if the
quality itself is not good. Hence why most our local sellers are from local farmers,
local distributors that knows well about the products. From there, we maintain the
freshness and the quality. This combination is the right approach in maintain our
business in the market. Not to forget our fast delivery service that will be the perfect
combination in synergizing these two aspects. Top brands might not be able to do as
what we plan to do, hence why we will use the advantage that we have to execute
this business plan and at the same time, following all the strategies written in this
plan.

11.0 REFERENCES

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and Attitude on Customers’ Repurchase Intention for E-Grocery. Journal of Food
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Baarsma, B., & Groenewegen, J. (2021). COVID-19 and the Demand for Online Grocery
Shopping: Empirical Evidence from the Netherlands. De Economist, 169(4), 407.
https://doi.org/10.1007/S10645-021-09389-Y

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Campo, K., Lamey, L., Breugelmans, E., & Melis, K. (2021). Going Online for Groceries:
Drivers of Category-Level Share of Wallet Expansion. Journal of Retailing, 97(2),
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Gumasing, M. J. J., Prasetyo, Y. T., Persada, S. F., Ong, A. K. S., Young, M. N.,
Nadlifatin, R., & Redi, A. A. N. P. (2022). Using Online Grocery Applications during
the COVID-19 Pandemic: Their Relationship with Open Innovation. Journal of Open
Innovation: Technology, Market, and Complexity, 8(2).
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Kang, J. W., & Namkung, Y. (2022). Measuring the Service Quality of Fresh Food
Delivery Platforms: Development and Validation of the “Food PlatQual” Scale.
Sustainability (Switzerland), 14(10). https://doi.org/10.3390/SU14105940
Kian, T. P., Loong, A. C. W., & Fong, S. W. L. (2019). Customer Purchase Intention on
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