Green-A-Chain: A Peer-to-Peer Marketplace

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The proposed venture is an internet-based decentralized marketplace referred to as Green-A-Chain (G-Chain). The business model of the firm is to develop a peer-to-peer market where consumers and vendors of online products can exchange value in a network that is public and secure. The business has adopted a decentralized platform rather than the middleman as to provide faith for the involved parties; the interface works by allowing the storage of information on numerous computers on the network. The proposed company will also outsource logistics by depending on third-party providers, such as Amazon to do the fulfillment services; the aim therein is to enable the firm to create a competitive advantage of its core business. More so, the value proposition of the new firm involves offering many conveniences since the marketplace is based online. In this regard, various organizations, such as the hotels in the hospitality industry can purchase their requirements via mobile applications or from the comfort of their computers.

THE COMPANY AND THE PRODUCT

The Business and Its Principle Activities

Concerning the company’s history, Green-A-Chain is a new business that targets the Business-to-Business market segment. It has been established to meet the following e-shoppers characteristics: less price conscious, less brand cognizant, more impulsive in the purchase, convenience-oriented, and more innovative in their shopping operations. The Green-A-Chain mission is to offer a platform that is founded on the blockchain technology, which is a concept that enables the exchange or transaction of value within the network to transpire openly; any participant therein can view and interrogate the trade. Arguably, the immediate objective of the firm is to provide a lot of convenience in the online-based marketplace for those sourcing products. It also offers fewer costs in the exchange of value due to the lack of intermediaries, and the Business-to-Business segment is the primary target of this service.

The Service

The G-Chain is a service that facilitates value exchange between the supply and demand sides. It allows the users to create an account with a pseudo and a profile; the aim, in this regard, is to enable the buyers to browse the patterns of the merchants until they place an order after finding what they are seeking. More so, it facilitates safety by processing payment through third parties, such as Amazon and PayPal.

MARKETING PLAN

Market Situation

Market Overview

The G-Chain is a service that targets the e-commerce marketplace; the mentioned bazaar is a global network of economic relationships and commercial transactions supported by the internet and other categories of contemporary information and telecommunication technology. To this end, it is a place where one can find various brands of merchandises coming from different individuals, shops, and vendors showcased on the same platform. Thus, the e-commerce marketplace also involves all of the electronic information processing and electronic transactions conducted to execute and support traditional commercial activities[1].

Market Size

The worldwide e-commerce marketplace is undergoing an exponential growth; thus, as more and more people turn to the virtual bazaar for their shopping desires, the market size of the mentioned ecosystem is expected to grow to $2.2 trillion in 2018. By 2020, the specified digit will double, which is in just two years[2]. To this end, it can be argued that the market size of the global e-commerce is growing; thus, it is openly critical opportunities for online-based businesses, including G-Chain.

Market Niche

The concept mentioned above of G-Chain is focused on vendors and buyers of organic products. Picking this particular niche has numerous benefits for the business. For example, concentrating on this one area enables the new venture to deliberate efforts in one direction. The point then is that it allows for the firm to know how to approach their prospects with intended marketing with more emphasis so that they are more likely to buy, and be aware of what appeals to them in the specific audience. More so, G-Chain will be focusing on this marketing niche because it will enable the creation of image and status; it also allows the startup venture to thrive and survive in the market even if it dominated by larger firms[3].

Growth Prospects

Every year, the e-commerce marketplace is growing promptly with many savvy consumers taking to online shopping purchase products, compare prices, and compare the various the various merchandises. Furthermore, many entrepreneurs, retailers, and brands have gained the knowledge on the advantages of leveraging e-commerce to offer access to their products nationally as well as internationally.

Current and Potential Rivals and Substitutes

The present and probable competitors and alternatives of G-Chain are those businesses that have adopted the Business-to-Business (B2B) model. The reason therein is that the internet has provided not only as a medium for distribution but also as an infrastructure for collaboration and communication. Thus, B2B e-commerce is fast becoming the new standard way of doing business. Some of the rivals and substitutes for G-Chain include the following ones: IBM, Marketo, Hootsuite, HubSpot, and SnapApp[4].

Strategic Advantages

Initial Competitive Advantage

The G-Chain has established its competitive advantage by offering a proprietary market advantage, including improving overall competitiveness, enhancing financial performance, and shorter time to market. It also provides IP protection measures by using secrecy agreements, trademarks, copyrights, and patents. It will also adopt the VRI resources because they will enable the firm to have the potential to gain superior performance, which will allow it to gain a competitive advantage in the long-run. There are numerous categories of risks that consumers encounter when making purchases; such threats range from the harmful consequence of the product, poor service quality, and the failure of the product to meet customer’s expectations[5]. In this regard, G-Chain has taken the initiative of processing payment via third parties, including Amazon and PayPal.

Sustainable Competitive Advantage

The consumer value transpires when the clients receive more benefit from purchasing the G-Chain service that they give up in exchange. Conversely, for G-Chain, to provide the service, it must incur fewer costs than it gets revenue payment from the consumers, that is, it must make a profit from the transaction. Nonetheless, competitive advantage for the firm does not only concern making a profit; it occurs when the new venture makes more revenue than its rival do from an equivalent set of activities. To this end, the G-Chain competitive advantage comes from conducting the same operations at a cost that is lower compared to its rivals who charge and charge lower prices; there are fewer costs involved in the exchange of value due to the lack of intermediaries. Thus, the sustainable competitive advantage of the new venture is that it can outperform its competitors over the medium to long-term[6].

Strategic Options and Alternatives Chosen

Alternative Business Model Considered

The business models are perceived to be the structure of activities and resources, which generate a value that is useful to the consumers, and the sale of it makes money for the organization. The first alternative business model considered is the retail one; it involves selling the service in exchange for cash. The second one is the flea market model; in its purest form, it consists in using a site that brings sellers and buyers together as to facilitate buying transactions by offering a system and location where the business can take place. The last one is the full-service market-making model; it entails the firm bringing together potential sellers and buyers and provides a virtual marketplace where all the parties can discuss and engage in transactions[7].

The Business Model Chosen

G-Chain has adopted the peer-to-peer (P2P) online marketplace for vendors and buyers of online products have its business model. The reason for choosing the mentioned approach is that it is unlocking the traditional market and bringing business or people together through the internet as to transact with each other directly and without a middleman. More so, it is an online bazaar that is transforming passive consumption to collaborators, who are highly enabled; in this manner, it is addressing long-held sustainability question and delivering more significant cost savings with the more efficient utilization of resources[8].

The Target Market Selected

The G-Chain is an enabling service for buyers and sellers of online products; in this regard, the target market that this new venture seeks to take advantage is the Business-to-Business one. The early adopters therein will be technology enthusiast; they are the group that wishes to put the latest technology to use by making the first purchase when it is still quite young. The problem that G-Chain is solving entails connecting the supply and demand responsibly; it will manage it in a sustainable, responsible, and efficient manner through mitigating the risks involved in online transactions. The value innovation encompasses supporting online deals through tailored intermediation. In essence, in the B2B segment, the consumers are business organizations purchasing to meet their requirements in procurements for their further production[9].

Marketing Strategies

Product Design Strategy

The G-Chain business will adopt the product differentiation approach; the objective therein is to make the demand curve for its service more inelastic; more so, it will reduce the number of a perceived substitute. In brief, the ultimate goal of differentiating its services is promoted brand loyalty. The point then is that the demand for the product will become very inelastic and the customers will become brand loyal if the strategy in question successfully reduces the number of product alternative[10]. The various possibilities of differentiating the service include the following ones: compete by superior capabilities, incorporate attributes that increase consumer satisfaction, integrate features that raise the performance of the service, and add the ones that lower the buyer’s overall costs of using it.

Pricing Strategy

The new venture will adopt the cost leadership approach as to compete successfully. The tactic will enable G-Chain to develop a competitive advantage that is based on low prices and costs. The firm will achieve this objective by offering the same value of its services at the mentioned subscription as to attract many clients. By being a cost leader, G-Chain will be able to minimize the threats from the five forces. First, it will challenge rivals to outcompete not only the utility of services but also their prices; secondly, the firm will be less negatively affected if influential buyers force prices down; third, as a cost leader, G-Chain will also reduce the bargaining power of suppliers by purchasing large volumes. The fourth point is that the advantage of the low-cost is a considerable entry barrier. Lastly, when compared to the higher-cost competitors, the low-prices charged by the new business will enable it to make a profit[11].

Promotion Strategy

The G-Chain company will depend on social media for various promotion strategies. The reason therein is that although most of the organizations being targeted lack online methods of retailing, they have an online presence on multiple sites, such as LinkedIn, Twitter, and Facebook. In essence, the mentioned platforms provide the best means of establishing awareness concerning this new business. More so, the sites in question can win a loyal following and augment the existing promotional strategy[12].

Distribution Strategy

Based on the aspect mentioned above, G-Chain will rely on logistics providers that have been established already. The reason for choosing the medium in question is so that the new venture can focus on its core competencies, which the provision of a platform to facilitate the storage, exchange, and creation of value. Some of the logistics providers that the new venture will rely on as to reduce the risk of managing logistics include the following ones: Maersk, DHL Logistics, and Amazon.

Warranty, Packaging, and other Marketing Strategies

The success in marketing the G-Chain service depends to a large extent upon sustaining the requirements of the market and ultimately, on whether its offering is acceptable and suitable for its purpose. In this regard, the firm will take care of the manner in which the franchises handle the packaging. The new venture will also adopt the implied warranty, which is an unwritten guarantee that the service is adequate to serve the reasonable expectations for the aimed objective[13].

OPERATIONAL PLAN

Company Structure and Ownership

It can be argued the G-Chain is a corporation. The reason therein is that the firm owns none of the products listed on the profile of the vendors; it is advantageous for the new venture because it is a structure that limits the personal liability of the owner for court judgment and business debt against the corporation. What sets this type of company structure apart from other categories of businesses is that it is an independent tax and legal entity, separate from the people who manage, control, and own it. Concerning ownership, the new venture is held by a single person; however, it substitutes itself for its shareholders in incurring liability and conducting corporate business[14].

The Top Management Team

The establish senior team comprises the following personnel:

Chief Executive Officer (CEO)

– The CEO will be tasked with ensuring the firm’s expenditure conform to the annual budget, implement the short and long-term plans, and to act as a liaison between the Board and the management.

Chief Operating Officer (COO)

– The COO will report to the CEO, and they will be liable for the daily functions of the organization, create policies that enhance the vision and mission of the firm, and implement and design business operations.

Chief Financial Officer (CFO)

– Their responsibilities include financing strategies and creating budgets.

Chief Marketing Officer (CMO)

– The duties of the CMO will be to execute, develop, and plan the advertising and marketing initiatives.

Chief Technology Officer (CTO)

- The CFO is tasked with directing in IT departments by using a practical and active approach; they will also oversee all the technical components of the firm.

Other Key Employees, Associates, and Relationships

For G-Chain, the critical resources are its infrastructure on which the platform is established as well as its human resources. In this regard, the key employees comprise a team of developers and programmers who are responsible for keeping the network user-friendly and effective. The venture associates will play a crucial role in growing and supporting the operations of the new firm across all projects, portfolio companies, and initiatives. The firm will also adopt good employee relationship program as to offer consistent and fair treatment to all the workers. The programs will be focused on aspects that impact the staff, such as safe working conditions, supporting work-life balance, and pay and benefits.

Production and Operation

Production Plan

Based on the production plan, the new venture will provide the subscribers with a decentralized platform where they can store, exchange, and create value; the business will achieve this by allowing the users to interact using pseudonyms. G-Chain is planning to be successful, in this regard, by adopting the blockchain technology; it is the production plan for the new business since it facilitates lower transaction costs, and it is of higher security[15].

Logistics of Component Supplies, Inventories, and Distribution

The new venture will outsource logistics of distribution, inventories, and supplies; it will rely on the fulfillment of the mentioned components on Amazon in addition to various similar services from third-party logistics suppliers. The adoption of this strategy is primarily ascribed to the profits it brings, which are based on establishing virtual enterprise through tactical associations, allowing the new venture to focus on its core business, improving performance, and reducing costs. In brief, the adoption of this strategy is perceived to be a feasible business approach as it allows G-Chain to aim at establishing the competitive advantage of its core business[16].

Research and Development

The future services of the new business in the e-commerce marketplace will be more personalized, with the objective of offering the clients with customized provisions. The company will also move its services from the current B2B model to the business-to-consumer as well as consumer-to-business one; in this regard, it will offer customized experiences and services based on the specific needs of the consumers. Concerning the future geographic markets, Africa presents promising prospects as online search patterns portray intentions to purchase. Additionally, more money is becoming available to spend in the region as the African middle-class population is increasing. Furthermore, regarding the research and development (R&D) facilities, the new venture will implement a structured approach to managing internal new venturing as to avoid pitfalls. Thus, the new firm will begin with R&D; to make practical use of the mentioned approach, G-Chain will first highlight its strategic objectives and then communicate them to its engineers. More so, the company will foster close links between its personnel and the R&D as to increase the probability of commercial success; this is the best way to ensure that the new venture addresses the needs of the market[17].

Risk Reduction Strategies

Risks Perceived

A new venture is forced to take risks every day; choosing advertising campaign, rolling out the new service, and hiring employees all involve uncertainty. In this regard, the perceived ones for the G-Chain company include the following ones: legal issues, poor branding, and making wrong decisions, which could lead to lost revenue. Some other seeming risks are as follows: functional risks (such as doubt by the consumers concerning the product), financial ones (involving the perception of the clients that they are wasting money on the service), and time ones (fear of putting hours into a service that does not yield results).

Pro-active and Reactive Risk Strategies

Based on the mentioned risks, G-Chain will adopt both the pro-active and re-active risk strategies to mitigate them. The latter will involve monitoring the new business for possible threats. The former will include identifying possible jeopardies long before technical work is initiated. The primary goal therein is to avoid them, which is achieved by establishing a plan for managing them[18].

Exit and Harvest Strategies

In the G-Chain venture, the goal of the entrepreneur is to create value for the owner as well as other stakeholders; thus, a harvest strategy is crucial. The most effective approach, in this regard, is going public, which involves selling the stock in the new venture in the stock market. Some of the reasons for choosing this tactic include the following ones: to broaden the business, to fund future acquisitions, support future growth, and repay outstanding debt[19]. Some other exit strategies in order of preference include the following ones:

Offering and valuing the shareholding to the shareholders who will be remaining;

Initial public offering;

The owner would sell the entire business.

FINANCIAL PLAN

Assumption

Expected Case Scenario

Expected Case Assumption.

Anticipated external funding.

Sales and value-added tax for payment intervals, outputs, and inputs.

Inventory stocking rates for bought-in-items, materials, and finished goods.

Credit terms for payables (creditors) and receivables (debtors).

Interest rates for cash balances and loans.

Depreciation rates for various categories of fixed assets.

Worst Case Scenario

15% more income to be shared with the partners.

12% less revenue from clients.

10% less growth.

The Ask and the Offer

G-Chain is seeking the following in an investor:

Harmonious association;

500,000 equity capital.

The investor will receive the following in return:

35% equity (212.121 shares);

An agreement by the shareholders that protects the stockholders;

Enactment agreement with the administration team;

Three seats on the board, with a self-governing C.E.O.

Conclusion

In summary, the business plan for the G-Chain is a crucial tool for growing and managing the company. The reason therein is that it clarifies direction; it has defined what the new venture intends to achieve over time by specifying the purpose of the firm; the process has involved describing the business and the service that it offers. The plan is also a future vision; it has demonstrated to be an effective way to plan for new directions or innovations, growing or slowing trends, and the changes in the market. The business plan is crucial in managing the company; it has conveyed the organizational structure of the firm, such as the titles of the directors and their corresponding responsibilities. It has also been developed as a sale device to appeal to the executive level staff, safeguard supplier accounts, and entice partners. It is also an essential component for attracting financing because it has demonstrated whether the new venture has the potential to make a profit. In this regard, although the rest of the business plan portrays a basic knowledge of the new firm, the projected financial performance demonstrates the bottom-line concerns and interests of both the reviewer and entrepreneur.

REFLECTION

Business Plan and Valuation

As for me, venture valuation for G-Chain is crucial because as the owner, I will be able evaluates the economic worth of the proposed company, including the current as well as the future projected value. Based on the presented business plan, I intend to perform the mentioned activity as to assign a price to equity in the new organization. In this regard, the valuation G-Chain will be centered on the earning-based technique. The point then is that considering the business plan, I seek to value the new venture using its cash flow, profit, and revenues over a period, primarily through the discounted cash flow (DCF). The DCF is essential in calculating discounts annually by considering the net present value calculation (NPV) and the sum value of future cash flows. Based on the business plan, I have developed the understanding that it is crucial to determine the new venture on the primary assumption of cost; it refers to the technique available for moving the price of G-Chain from its inventory to its values of service sold. The point then is that the cost of G-Chain as a service changes from when it starts to be used and when it is sold. In this regard, I have learned that the management requires a formal structure for assigning costs to inventory as they change to services that can be sold.

For me, the mentioned valuation of the new venture is neither optimistic nor conservative; I believe that it gives a realistic value of the business. The reason therein is that based on the business plan, it provides a combination of factors involving the following concept of the company’s worth: potential, potential, and current. I feel that the idea has been adopted in the business plan as to portray credibility and sobriety to investors; it has manifested itself in the sober assumption of the company’s growth, including the credible market forecast. My point of view, in this regard, is that the valuation is realistic because it has presented a compelling, optimistic picture, but continuously mentions certain suppositions and hard facts to build credibility. It is also practical because it is attained by eliminating the impact of price level transformations from the nominal value of the time-series data; the aim is to gain an accurate representation of the economic trend. Additionally, the valuation is realistic because it is reasonably easy to measure in the sense that the G-Chain can account for its service development, marketing, and the cost of labor.

Risk Factors

I have learned that risks comprise the decision made concerning the G-Chain venture has clear objectives, and that good data about it is obtainable; however, the future results linked to each alternative are subject to chance. In this regard, I believe that the new venture will face uncertainty in the strategic risk; it involves the strategy of the organization becoming inadequate to the extent that the firm will struggle to obtain its objective. It could be due to the shift in customer demand, a powerful new rival entering the market, and technological changes. I also feel that G-Chain is susceptible to compliance risk. The goal of the new venture is to comply with all the necessary regulations and laws that apply to the proposed business; thus, since the rules change all the time, the company may face the risk of additional principles in the future.

Another essential element that I have noticed is that the business is also susceptible to operational risks; they are the unexpected failure in the firm’s daily operations; they can be caused by people or resources, server outage, or technical failure. In this regard, I have learned that the uncertainty in question stems from events that are outside the company’s control. I also feel that G-Chain could also face financial risks; examples therein may be lost revenue or extra costs. The uncertainty is likely to occur because the business is intended to go international. The fluctuation of the exchange rates implies that the amount gained by the company in dollars will change. Last but not least, I believe that is also vulnerable to reputational risks. It can transpire as a high-profile criticism of the services offered, negative publicity concerning the owner or the staff, or a form of a significant lawsuit. Online service reviews and thousands of negative tweets could also lead to reputational risks.

I have learned a business impact analysis and a risk management plan are warranted as to mitigate the mentioned risks. It is the process of developing strategies to manage them, assessing them, and identifying them. Understanding the potential risks is not enough; I believe that it is essential to establish the ways to minimize their impact as to help the business recover quickly when an incident transpires. Therefore, it is crucial for G-Chain to allocate some resources, budget, and time for preparing the risk management plan. My point of view is that such a step will help G-Chain to reduce the probability of an incident that would negatively affect its operations and to meet the legal obligation of providing a safe workplace.

Ambit Claim

I suggest that the preferred “ambit claim” valuation of the new venture should be based on ethics. The reason therein is that since G-Chain is a service company, I feel that the principles in question are crucial for the business in the sense that the standard operations rely on a certain level of shared commitment of moral values. My point of view, in this regard, is that the by operating in e-commerce as a marketplace, the new business should not facilitate unethical acts, such as thuggery and cheating, which may transpire if goes unchecked. More so, I believe that the directors in G-Chain must exhibit due diligence in the administration of the corporation’s commercial and ethics risks. To this end, they need to ensure that an active business culture prevails in the organization. The management will achieve this by developing a code of conduct and the vital means of providing that the fundamental principles are entrenched in the corporate operations and strategy, generating awareness of appropriate behavior, and underpinning that conduct.

In essence, I believe that as the preferred ambit claim, the business ethics has a lot to offer to the investors. The reason therein is that the concept reaches far beyond the strength of the management team bond, as well as employee morale and loyalty. I have realized that the ethical operations of G-Chain are directly linked to profitability in both the short and long-term. Furthermore, the reputation of the new venture in the surrounding community is crucial to individual investors for the reason that it is paramount in evaluating whether an organization is a worthwhile investment. In this regard, I have noticed that investors are less inclined to support its operations or otherwise buy stocks if they perceive that the G-Chain company is not operating ethically. I would adopt this initial stance for G-Chain because it will achieve an increasingly positive image with consistent ethical behavior; it is crucial because there are few other considerations as critical to the current shareholders and potential investors.

I also propose that the “ambit claim” valuation should be based on ethics because I believe that it will contribute to customer satisfaction, which is one of the most crucial aspects in a successful business strategy. My point of view is therein is that for the G-Chain business, both an enduring relationship of cooperation and mutual with customers and repeat purchases are essential for success. It will also help to build trust, which is crucial to a long-term relationship between the proposed business and the clients.

Decision-Making Control

Having analyzed the business plan of the G-Chain company, I would recommend the shared decision-making control. For me, the mentioned choice should be regarded as the routine management decisions. The reason therein is that it not only satisfies the professional and ethical standards of the business, it also increases the success of the market by helping customize the services to the customers, increasing client participation, and strengthening the company’s relationships. More so, the collaborative nature of the shared decision-making control can help the new venture to build alliance, confidence, and trust.

Furthermore, I also believe that the shared decision-making control should be considered as the routine management decision for the reason that it would empower the customers and offer a sense of ownership over the process. I feel that the business outcomes and adherence would improve when the consumers are active participants in the process of making decisions. The type of decisions that I think requires the Board approval include the following ones: the dissolution or winding up of the organization, a sale of all of the firm’s assets, terminating or hiring members, and adopting an annual budget. Some other ones include borrowing or lending money, distributions to stakeholders, equity grants or transfers, and amendments to the bylaws or certificate of incorporation. On the other hand, the decision that should require the investor’s singular approval in their capacity as shareholders before implementing specific categories of actions includes raising more capital.

For me, the shared decision-making is an excellent option for G-Chain for the reason that it aims at arriving the best conclusions. The mentioned method will enable the management to achieve this first through more accurate decisions; error judgments will rarely get past the team because they will tend to assess each other’s thinking. The technique will also promote greater understanding; the participation among the members enhances good knowledge of the various aspects surrounding the final decision. The management team will who are involved in the process will be motivated for the

January 19, 2024
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