NAME: KHAVAND MAHARAJ

STUDENT ID: 816031943

COURSE: ENGINEERING MANAGEMENT

COURSE CODE: MENG3000

ASSIGNMENT: ASSIGNMENT 1 – BUSINESS CASE

LECTURER: Dr. TRM Lalla

FACULTY: ENGINEERING

DEPARTMENT: CHEMICAL ENGINEERING

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ABSTRACT

With the surge in technology in the 21st century, this has led to the rise of the e-commerce
sector with companies like Amazon and eBay experiencing explosive growth in recent years.
Within this buzzing e-commerce sector, entrepreneurs have started a subsector labelled ‘Drop
shipping’ which is a new way of online retailing. This report aims to discuss the concept of a drop
shipping business in Trinidad, as a developing country, that has a rapidly increasing number of
customers making the move towards online shopping. Drop shipping may be viable in Trinidad
due to its geographical location and widespread availability of internet access. This business case
will examine the potential viability and benefits of starting a drop shipping business in Trinidad.
Initially, this case would give an insight into the details of the general drop shipping business
model which would then explain its popularity. Drop shipping is popular because it only requires
a small initial investment compared to other businesses in the ecommerce sector, has lower risks
with holding stock while allowing the business to offer a wide variety of products. Next, the
Trinidad market is discussed so that the market for the business can be contextualized, with focus
on the consumer habits and national economy in Trinidad. This points to a trend of online shopping
in Trinidad and the viability of establishing a successful drop shipping enterprise for targeting that
expanding clientele. This report provides an in-depth analysis of the competitive landscape and
logistical challenges to assess the potential for setting up a drop shipping business in Trinidad &
Tobago. Finally, the report discusses another marketing and consumer acquisition, which includes
comprehension of local consumer behavior to deliver to the appeal to the Trinidadian client base.

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ACKNOWLEDGEMENTS

I would like to thank the authors of the literature in my references. Most especially, I would
like to express my gratitude for Dr. TRM Lalla for his invaluable guidance and mentorship
throughout this course thus far. Thank you for your unwavering support and expertise.

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ABSTRACT ............................................................................................................................................... II
ACKNOWLEDGEMENTS ........................................................................................................................... III
1.0 INTRODUCTION ................................................................................................................................. 1
2.0 LITERATURE REVIEW .......................................................................................................................... 2
3.0 METHODOLOGY . ......................................................................................................................... 2
4.0 Data Collection & Analysis and Discussion of Findings ........................................................................ 3
Justification ......................................................................................................................................... 3
Benefits ............................................................................................................................................... 3
Risks .................................................................................................................................................... 3
Problem, Need and Opportunity .......................................................................................................... 4
Background ......................................................................................................................................... 4
Corporate Objectives ............................................................................................................................... 4
Solution ............................................................................................................................................... 5
Cost Benefit Analysis ........................................................................................................................... 5
Sources of Finance ............................................................................................................................... 6
Sales and Marketing Plan..................................................................................................................... 6
Stakeholder's Analysis ......................................................................................................................... 7
Company Resources ............................................................................................................................ 7
Operational Configuration ................................................................................................................... 7
Build Method....................................................................................................................................... 8
Risk Analysis ........................................................................................................................................ 8
6.0 CONCLUSION ..................................................................................................................................... 9
7.0 REFERENCES .................................................................................................................................... 10

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1.0 INTRODUCTION
Problem Statement:

The retail sector in Trinidad stocks general products for sale in each category. This ‘one
size fits all’ availability does not meet the personal needs of our society as needs differ based on
socioeconomic classes, personal preferences and such. This means that consumers must then
source products that align with their requirements from foreign suppliers. This creates extra
hassle for the consumer as they have to deal with unknown duties, courier fees and trusting
unfamiliar foreign suppliers. This gaping hole presents an opportunity for a drop shipping
business such as ours to enter the market.

Aim:
To establish a drop shipping business in Trinidad to facilitate the unique shopping needs of
Trinidadian consumers.

Objectives:
1) Develop a clear business concept to achieve the aim.
2) Define goals with achievable expectations.
3) Establish a process for the operation of the business

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2.0 LITERATURE REVIEW

To determine whether or not a drop shipping business will be viable in Trinidad, we need
to examine the existing literature in order to identify advantages, challenges inherent in the
model and the broader e-commerce environment.
Drop shipping has gained popularity as a cost-effective, risk-free way to sell goods
online. As examined by Bloomenthal, A. (2020), the model eliminates the need for inventory
management and reduces upfront capital requirements, making it an attractive option for start-
ups and small businesses Furthermore, (Grant M , 2021) and other researchers emphasize that
drop shipping allows retailers to single out products without the burden of a warehouse offering
a wide variety of products.
Trinidad has not escaped the global shift to online shopping. A study conducted by
Persad and Devsaran (2021) indicates that Internet usage and digitalization is increasing among
Trinidadian consumers. The convenience of e-commerce is attracting a new generation of
shoppers, creating an environment ripe for drop shipping and other innovative business models
to flourish.
A drop shipping business must comprehend the tastes and habits of Trinidadian
customers in order to succeed. Cavallone M. (2017) research provides insights into consumer
views regarding internet buying, which can help shape marketing tactics customized for regional
markets.
Conclusively, research indicates that a drop shipping has the potential to be a viable
company strategy that fits well with Trinidad's changing e-commerce tendencies. Although it has
many benefits, there are drawbacks as well, especially when it comes to regulations and logistics.
Entrepreneurs must adapt their methods to the distinct qualities of Trinidad's customers and the
local business environment in order to flourish in this market.

3.0 METHODOLOGY

The data would be collected employing both primary and secondary methods. The
primary source of data came from videos on the internet with businessmen who have drop
shipping businesses providing their insight and expertise. The secondary data was obtained by
extensive reading of articles and scholarly works, as discussed in the literature review.

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4.0 Data Collection & Analysis and Discussion of Findings

Justification

The evolving consumer behavior and increasing internet penetration in Trinidad creates a
favorable environment for e-commerce. Drop shipping's low upfront investment requirement
aligns with local entrepreneurship trends and economic conditions.

Benefits

Firstly, drop shipping reduces financial barriers to entry by requiring very little capital
expenditure. With this low-risk strategy, significant inventory is not required, saving business
owners from the expenses and hassles of warehousing. Furthermore, drop shipping frees
businesses from the burden of maintaining physical inventory, allowing them to offer a wide range
of products. Furthermore, this strategy is perfectly positioned to capitalize on the growing trend of
Trinidadian customers shifting their buying habits to the internet, offering a substantial opportunity
for revenue development.

Risks

There are challenges associated with running a drop shipping business in Trinidad due to
shipment, customs clearance, and transportation. Overcoming challenges such as sourcing
dependable transportation, clearing customs procedures and shipping items efficiently are crucial.
The local drop shipping market might see an increase in competitiveness as more business owners
realize the potential of this strategy. Reliability, quality, and open communication are essential for
reducing these risks and establishing a trustworthy brand.

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Problem, Need and Opportunity

Due to geographical and import limitations, Trinidad & Tobago encounters exclusive
challenges in procuring a variety of consumer goods. For a long time, the local consumer
population has been annoyed by the limited assortment of goods available in local retailers. This
unfulfilled want is more than just a desire for variety; it reflects the diverse customs and fiscal
circumstances of its population. Trinidad and Tobago's multi-cultural community demands things
that cater to specific needs, whether worldwide fashion brands, niche devices, or specialty meals.
With a growing middle class and a rapidly growing tech-savvy population, there is a wonderful
opportunity for an e-commerce enterprise today. This presents an exciting opportunity for a drop
shipping firm to fill the gap between local demand and international items.

Background

The retail market in Trinidad offers products that meet short-term demands, but they do
not meet the needs of people seeking niche items. As a result, people are frequently compelled to
rely on foreign online businesses which adds inconveniently long delivery delays and high courier
bills. To address this issue, our drop shipping company intends to function as a liaison between
the supplier and the consumer.

Corporate Objectives

Our drop shipping company intends to function as a liaison between the supplier and the
consumer. Our goal is to make a diverse range of commodities available to Trinidadians without
the hassle of navigating unfamiliar websites or worrying about hidden fees. Within three years, we
intend to expand our online store to offer an even greater range of products, making us the top
choice for Trinidadian buyers not just in the online retail industry, but also in physical stores. Our

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goal over the next five years is to be a key figure in the development of Trinidad's e-commerce
sector.

Solution

Our proposal is to set up an online drop shipping platform. Individuals in Trinidad will be
able to access products from vendors from around the world through our user-friendly online store.
The key advantage of this technique is that we will not need to retain a stock of items, which will
significantly reduce overhead expenses compared to a physical retailer. This means we can offer
a wide range of items at reasonable costs, which may be difficult to find in Trinidadian retailers.
If we don't supply this service, many clients will want additional options but won't be able to find
them easily or without a confusing system of e-commerce sites, which typically require a lot of
memberships and charges.

Cost Benefit Analysis

To launch our e-commerce business, roughly $8,000 in Trinidad and Tobago Dollars
(TTD) must be provided. This includes expenses for securing a web address (domain registration),
web hosting, website development, and online shopping system implementation. At the initial
stage, the sum of $15,000 TTD has been allocated towards marketing and advertising. This is a
crucial area as this is how our target market can be reached and our name can be established as a
brand. This budget is going to be used to fund social media advertising campaigns and showcase
graphic design that enforce our brand identity. Every year, around ten thousand Trinidad and
Tobago dollars will be used to maintain the website. This funding is used for the upkeep of the
website that guarantees highspeed and fluid navigation. Drop shipping offers the advantage of a
small overhead because it takes away the need for holding and overseeing tangible inventory,
eliminating warehousing expenditures. Furthermore, it lessens the risks associated with unsold

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products, since in contrast to buying them for trading, you arrange the customer with the supplier
in an efficient method for allocating capital.

We estimate that we should be able to generate roughly $120,000 TTD in sales during the
initial year. This prediction is based on the cost of the items that we plan to stock in store at the
beginning and on the count of individuals in Trinidad who are likely to purchase from us as a fresh
venture. In order to exceed this figure, the average price of each item should be $200 TTD and we
must manage to entice at least 600 customers (which is 0.04% of the total population) presuming
that there will be no repeat customers and people purchasing just one item as a way to be
conservative with our calculations.

Sources of Finance

Finance can be obtained using personal savings or credit as the initial capital investment
is very low and one person can bear the financial burden. If this is not the case, a small personal
loan from a bank or credit union would suffice.

Sales and Marketing Plan

To understand customer preferences and competition in Trinidad, extensive market

research would be conducted. Data would be gathered on local specialty markets or even unmined
markets that could become niches, with an emphasis on serving the varied socioeconomic
categories.

We will invest in a user-friendly e-commerce website with detailed product descriptions,

high-quality images, and secure payment methods. The website will be mobile-optimized,
allowing potential customers who click social media network advertisements to be directed
immediately to the store via an intuitive user interface. This will help to attract and maintain
visitors because users who were first drawn to the site are more likely to return.

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Stakeholder's Analysis

The success of our drop shipping business is dependent on a few critical stakeholders, all
of whom are required for our business to function. Our customers' satisfaction is our top priority.
Making sure that their diverse needs are met is critical to our goal. We strive to better their lives
by offering a diverse range of products, exceptional customer service, and a simple purchasing
process. Building long-term partnerships with reputable overseas suppliers is of utmost importance
since it establishes the framework for this business venture. We rely on them to deliver high-
quality goods on time, guaranteeing that our customers receive items that meet their expectations.
In these organizations, credibility and dependability are essential components of our business. Any
employees or freelance workers would be key in our day to day operations to ensure that our
business runs smoothly. Regulatory bodies - we are determined to adhere to local and global e-
commerce regulations.

Company Resources

A small but dedicated team with expertise in e-commerce, logistics, and marketing will
be crucial for efficient business operations. These personnel should be able to multitask as the
day to day operations of this business are dynamic. The necessary equipment for this business
would be a laptop each for each employee on the team as well as a hig speed internet connection.

Operational Configuration

Our process is a smooth process which seamlessly transitions between stages. It all starts
with an easy-to-use e-commerce website where customers can explore and place orders. When an
order is received, an automated answer is sent to the supplier, who ships the product directly to the
client. Our integrated software systems regularly update product information, inventory status, and

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order tracking. A specialized customer support team offers prompt replies to questions and issue
solutions to streamline operations. Payment processing, especially secure online transactions, is
closely monitored. This streamlined procedure assures quick order fulfilment, lowers inventory
overhead, and promotes a smooth and consistent client experience.

Build Method

The absence of physical production or assembly is a significant advantage of our drop

shipping business. Our primary goal is to establish strong relationships with reliable multinational
vendors. Effective communication between us and these suppliers is critical to our business, to
ensure that our clients receive high-quality items in a timely manner. Our process entails
collaborating with trustworthy and reliable suppliers as well as maintaining an excellent brand
image.

Risk Analysis

Our drop shipping business, like any business venture, involves a certain level of risk. As
a result, we have examined these challenges and taken efforts to ensure that we meet our objectives.
One of the most serious possible issues is the reliability of our suppliers. We addressed this doing
our due diligence checks with our suppliers before making agreements with them. In addition, we
have established relationships with alternative suppliers to ensure an undisturbed supply chain.

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6.0 CONCLUSION

Finally, the business case for launching a drop shipping business in Trinidad offers a
compelling opportunity that combines global e-commerce trends with the characteristics of the
local market. The report's results and discussions have underlined the great potential of this
business model in the local market. While acknowledging the accompanying risks, such as
logistical hurdles and market competition is critical, these challenges are not impossible to
overcome. By employing careful planning and effective logistics management these issues can be
alleviated.

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7.0 REFERENCES

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