FIRST SCREEN ANALYSIS

OF VENDING MACHINE
 PART 1:STRENGTH OF BUSINESS IDEA
SR.NO STRENGTHS OF BUSINESS SCORE POTENTIAL REASONS
IDEA
1 Extent to which the idea: 4 • Technological Advancement.
• Takes advantage of an • Energy Saving
environmental trend

• Solves a problem 4 • Crowded Cafes.

• Some drinks and Snacks are not available in
Cafe.
• Addresses an unfilled gap in 4 • Niche Market of University Students.
the marketplace • Only being placed in malls and Airports.

Overall Score 4 strong Overall, the idea has a good potential, it is

something new that has not been done before.
This idea is customer friendly and also profitable
if implemented properly.
 PART 1:STRENGTH OF BUSINESS IDEA
SR.N STRENGTHS OF
O BUSINESS IDEA
2 Timeliness of entry to market
3 Extend to which the idea
"adds value" for its buyers
and end users
4 Extent to which customers are
satisfied by competing
products that are already
available
5 Degree to which the idea
requires the customer to
change their daily practices or
behaviors
SCORE POTENTIAL REASONS
5 Very timely • No or few universities have this facility.
• No one is offering similar products
4 Above • Variety of Options.
Medium • Useful at peak times, when there is crowd.
3 Moderately • No vending Machine in Cafetria.
Satisfied • No Variety of Snacks and Drinks
5 Small to no • Simple use of machine at any time.
changes • People already buy snacks and coldrinks
required
 PART 2:INDUSTRY RELATED ISSUES
SR.NO INDUSTRY RELATED SCORE POTENTIAL REASONS
ISSUES
1 Number of competitors 5 (none) • No other university has vending machine in cafe.
• Only at Airports and Malls in Pakistan.

2 Stage of industry life cycle 5 High • Global vending machine market is poised to grow by
(Emergence $9.33 Billion between 2021 and 2025.
Phase) • Industry for vending machine is emerging.

3 Growth Rate of industry 5 High • Youth love innovations.

4 Importance of Industry’s product
and/or services to customers
(Strong Growth) • Projected to exhibit a compound annual growth rate
(CAGR) of 14.0% from 2023 to 2030.
4 Moderate • Technological innovation.
(Would Like to • Benefit for Students.
have) • Advancement in Country

5 Industry operating margins 4 Moderate • Average vending machine generates $9,000 in annual
sales.
• Average profit margin for a vending machine is
approximately 20%.
PART 3:TARGET MARKET AND CUSTOMER RELATED ISSUES
SR.NO TARGET MARKET AND SCORE POTENTIAL REASONS
CUSTOMER RELATED
ISSUES
1 Identification of target market for 5 High • Clearly identified.
the proposed new venture (Identified ) • University Students

2 Ability to create “barriers to 5 High • By providing Variety in items.

entry” for potential competitors (Can create ) • By lowering costs.

3 Purchasing power of customers 5 High • These items are not expensive.

• Has become student's daily need

4 Ease of making customers aware 5 High • Student's regular visit to cafe.

of the new product or service • Social Media.
• Talks between class fellows and friends
5 Growth potential of target market 5 High • Many admissions every semester.
• Target market for students continues to grow.
 PART 4:FOUNDER-(OR FOUNDERS) RELATED ISSUES
SR.NO FOUNDER-(OR FOUNDERS) SCORE POTENTIAL REASONS
RELATED ISSUES
1 Founders experience in the industry 1 No • Haven't started a business before.
Experienced • New to Business and Industry.

2 Founders skills as they relate to the 3 Moderate • Founders are students of Business Administration.
proposed new venture's product or skilled • Marketing, and Communication skills.
Service

3 Extent of the founders Professional 1 None • New to Business.

and social networks in the relevant • No networks in relevant industry.
Industry

4 Extent to which the new venture 5 Strong • All of us have goals in the field of Business.
meets the founders goals • To start our own business.

5 Likelihood a team can be put together 5 Very Likely • Can be managed by few people.
to launch and grow the new venture • Our team of 5 have harmony and skills to run this
business.
 PART 5:FINANCIAL ISSUES
SR.N FINANCIAL ISSUES SCORE POTENTIAL REASONS
O

1 Initial Capital investment 2 (A Bit High) • On OLX it costs aprroximatelty Rs

400,000.
2 Number of revenue drivers 1 • We will start with one vending
(one) machine

3 Time to break even 5 (Less than 1 • By increasing sales.

year) • Continuous refill.

4 Financial performance of similar 5 Strong • Vending machines are profitable.

businesses • Average vending machine earns
more than Rs 1000 per week.

5 Ability to fund initial product 5 High • We are team of 5.

development and initial start up • Collective investment.
expenses from personal funds or via
bootstrapping
 OVERALL POTENTIAL
SR.NO OVERALL POTENTIAL
1 Strength of Business Idea
2 Industry Related Issues
3 Target Market & Customer Related
Issues
4 Founder-(or Founders-) Related
Issues
5 Financial Issues
6 Overall Assessment
SCORE POTENTIAL REASONS
4.2 High Potential The idea has overall high potential because it is a new
technological breakthrough and serves a niche market that
hasn't previously being target.
4.2 High Potential • No competitors.
• Overall industry is continuously growing
5 High Potential • Overall we are targeting university students and faculty
• Target maket is clearly identified
3 Moderate • No access to Networks in particular industry.
Potential • Have required Skills.
3.6 Moderate • Vending machines are great investments.
Potential • Investment is high but profit is also good.
4 High Potential Overall, the idea has a good potential, it is something new
that has not been done before. This idea is customer friendly
and also profitable if implemented properly.