Biz 2 Blogpost

After spending the last one-two weeks learning and discovering more about the new business model, Cookit, my group and I have developed a business model canvas and value proposition model which we believe is the integral step to discovering this business's problem. Below is a picture of the whole BMC and VPC, however, I will just explain one section which my group and I believe was the most significant towards where the businesses problems arise from.  This is the value proposition. We believe their value proposition has a few flaws because their business is trying to store all their eggs in one basket. In other words, they are trying to fit the aspects of the food delivery industry, the cooking industry, and the health/weight loss industry all in one product. Now, of course, while these three things all go hand in hand, we believe it may be too much to cover with the current financial and labor resources they have. Also, we believe the based on the other local and international companies which has all dived into one of the three industries, have been able to flourish just as well by doing selecting one industry to compete in.  For example, Foodpanda is a company which only focuses on delivering food, not on the type of food or the health details that comprise the food. While this may seem like an idea which's value proposition lacks any purpose or necessity for the citizens of Singapore, we see that according to Food Pandas CEO, Mr.Wenzel quoted that more than 100k people in Singapore have started to download and use their app since it was launched in March of this year. Not only has it been gaining members rapidly, it also has been increasing its annual revenue just as quickly to now having 50,000 registered users providing them with an annual revenue of more than US$450,000 annually. While this may not seem like a lot, for a company that has only started around 7 months ago, we believe 450k is plenty to use as a starting point.

However, our group personally believes if there's one industry Cookit should choose to dive into, it should be the health industry. We believe they should continue to do something similar to Blue Apron as they already have built the relationships and segments to get the fresh food and form the healthy meals, now all they need to do is just focus on selling them to their customers not creating them. We believe this is a beneficial solution to maximizing their time and resources as it clear from the success of Blue APron that this industry of food assembling, has large enough of a market to succeed in without incorporating other aspects of other industries. For example, Blue Apron has been able to gain $58 million dollars in their first year of opening up and surpassed 1 million meals. This makes it evident that the value proposition of just assembling the ingredients for the email is good enough of a proposition to make money and engage a large market, they do not need to go the extra mile and also try to deliver these already cooked meals because the market for assembling food we believe is large enough to provide them prosperity on its own. In Fact, we also believe the industry for offering food is way larger than the industry for assembling food, and this is where a problem arises. Because the food industry in Singapore is colossal, with having over 6,668 restaurants out of which more than 500 delivered, this industry is a monopolistic competition. So unfortunately, Cookit is not as likely to succeed in the food industry due to the abundance of other competing firms which provide alternate options for which consumers can choose from, whereas in the food assembly and health industry, there is currently only one company which gives you the ingredients and allows you to cook it, this is - you guessed it - Cookit. For example Cookit is not the only firm that offers healthy food, places like Salad Stop and Toss and Turn offer the same types of healthy meals with sometimes even lower prices. On the other hand, we suggest give it time and allow more customers to engage in your company, if you notice more are ordering the food prepared verses unprepared, shift your value proposition accordingly to fit the area of where the money is coming from. As for now, my group and I will continue examining the two markets to see which one is in fact larger than the other, through interviews and research I am sure we will get the answer!