Fundamentals of Entrepreneurship Term 2, 2023

Fundamentals of Entrepreneurship Term 2, 2023

Opportunity Analysis and Development Pitch

for

Indoor Dog Park

Student Number: A00048859

Unit Number: ABS103

Assignment Number: 2

Word Count: 2123

Due Date: 9th June 2023

Nobody likes a wet dog and a bored dog at home. So, where do city dog owners go in the wet seasons to exercise their fur babies? After recently becoming a dog owner in the Inner West of Sydney, I struggled to exercise my dog during the long wet season the east coast of Australia has faced this year. That's when I started to research if there was any alternative indoor park for dogs to socialise with other dogs whilst getting their daily exercise. There was nothing at all like this for such high demand. This Business report will show an opportunity for an indoor dog park, where city dog owners can take their dogs to exercise in the wet season and alternatively can apply to extreme hot seasons. During the past year of the highest rainfall in Australia, I was desperate to find a facility where I could go with my dog to play that was dry and dog friendly. My search only led to paid facilities that would look after my dog for me without the option to play with my dog myself at the facility. "Indoor Dog Park" which will be referred to as IDP throughout this paper, will be a multi-functional space, welcome for members and or walk-ins who need to ditch their local park to escape the weather.

Problem

Sydney dog owners have been impacted since 2020 from the La Nina weather cycle, with wet weather and storms making regular exercise routines problematic and even impossible at times. Even though the Bureau of Meteorology (BOM) announced that as of June 21, 2022, The 202122 La Nia event has reached an end, it also warned that it might be back later in the year. The east coast of Australia has already endured two seasons of La Nia over the past two years, a weather phenomenon that causes higher than average rainfall. REF a result, the community of dog owners have been faced with the common issue of under stimulated dogs stuck at home. Local Facebook pages for dog owners are flooded with the question - how do I keep the pets from climbing the walls?! when the weather is too extreme to go outside? Ref

This ongoing problem which Sydney dog owners have been facing and will most likely continue to face, with global warming increasing, unpredictable extreme weather can be solved by supplying a space for Dog owners to meet and have social play dates with their dogs, in a controlled environment that is accessible in all weather conditions.

Market Analysis PEST theory refers to Political, Economical, Social and Technological. By using the PEST model, Entrepreneurs can assess major external factors that influence the operation in order to become more competitive in the market.

Political The Renting law on warehouse spaces.

Council laws on pets in public

Rental tenants with pets law

Increasing political focus to make Sydney a more dog friendly city

Upset locals who don't own dogs and make complaints about off leash dog parks

Economical Rent rises

Tax increases

Wage increases

The demographics of the area

Social Social trend around owning dogs

Technological SMS platforms advertising costs.

Algorithms

Project management platforms

The above PEST table has helped outline the primary factors regarding the IDP. With a clear understanding of all the factors affecting the organisation, entrepreneurs can forecast any risks and opportunities to prepare and utilise them. Even though the PEST table has its segments, they all are systematic, and one section can influence another.

Political and Economic factors significantly impact the success of making this business profitable, Ie. Rent prices in Sydney are skyrocketing.

The Political laws regarding dog owners who rent are correlated and are influenced by Social factors. Political factors also concern the liability of a space that holds groups of dogs with the risk of dog attacks on humans and other dogs. The local council will create and overlook contracts to ensure all owners are responsible for their dogs' behaviour whilst using the IDP space. Owners with memberships to the space must pass a dog behaviour scan. The day pass will be monitored by employees who can pick up if any dogs are not fit for the social setting and will be asked to leave before their time slot if they are at risk to the other dogs and owners in the facility. After Covid-19, there was an increase in households adopting and buying dogs. It became a trend In the Inner West for people from a broad demographic background, from young singles to established families. This rising trend has gained political attention, and Sydney's continued focus is on making it easier for pet owners. With more and more parks creating off-leash areas for dogs.

Tax increases are a fact that every economy faces, and overall influxes could affect how much the target market is willing to pay and how frequently they use the space. Reports say more than half of those who do not already own a pet are worried about the ongoing costs of pet ownershiphowever, less than a quarter of those who already have a pet share that concern. Despite spending an estimated $1 billion more now than three years ago, it is still a rising trend for pet owners to go out of their way to keep their pets happy and healthy and are willing to pay to do so. This is when the Social factor can support the Economic risk. Local parks in Sydney are now known for social dog meet-ups, meaning more people are planning to meet with other dog owners to socialise their dogs. Furthermore, this is the market IDP will be reaching out to help solve the problem they face when they can continue this regular meet-up in extreme weather.

Technology, when appropriately utilised for advertising and operations to create the most streamlined processes for a business, there are an array of platforms to support an organisation's overall running and brand awareness. IDP will use SMS platforms for organic and paid advertising for brand awareness from the launching of this business and throughout its lifespan. SMS platforms like Instagram, Facebook, and Tiktok IDP to support, create and keep up to date with social trends within the dog owner market will be used to create a following supportive base, which will help grow the business awareness and growth.

Customers

The target Customer for the Indoor Dog Park is a dog owner/s who lives in the geography of Sydney, particularly the Inner West region. The customers' average age is from 25 - 55, REF both singles and families who fall into the average of spending $3,200 or more per year on their dog. The target customers regularly socialise and play with their dogs in social group settings. The target customer follows trends on SMS platforms. The targeted customer will also likely post photos of their pets on Instagram.

This targeted customer needs a solution to exercise and socialising with their dogs when it is too wet or hot to be suitable for dogs to exercise at their local dog park.

Today's dog owners only have a few resources to keep their dogs entertained in extreme weather. Option 1 is taking their dogs to a daycare centre which are usually only used for when dog owners are at work or on holidays and need someone to look after their dog. This option can be unreasonable for owners who would rather stay with their dogs during their regular bonding and playtime and mutually benefit this time. Option 2 is to go ahead and face the weather - Most owners with indoor pets find taking them out in the rain for walks can be bothersome and challenging because wet dogs can be messy and destructive once coming home, which can turn owners off facing the muddy and wet paws. This leads us to the last resort of staying home with them and sacrificing the critical daily exercise dogs need when living in an apartment or house with a small yard. After researching what this market is willing to pay for day care centres for their dogs, it is assumed that they would be willing to pay $15-20 for an entry fee into the indoor dog park. Ref

Business model

KEY PARTNERS

Local Council

RSPCA

Local dog event groups

Local pet brands

Key Resources

Warehouse Space

Dog trainers

Onsite Veterinary nurses

Employees

Key Activities

providing a social indoor playground for dogs and owners

Promoting healthy lifestyles for dogs in Sydney's Inner West

Supplying a space for people to rent out for dog parties, training, adoption programs

Supplying a distribution channel for dog food, toy and accessories brand to sell their products

Distribution Channel

SMS platforms

Print advertising

Community forums

Cost centers

Rent

Bills

Advertising

Project manager programs

Employee wages

Value Propertiton

IDP offers a safe haven for owners and dogs to play, socialise with other dogs, For owners to network and meet other likeminded locals

A event space for the dog industry, where brands can have popups and product launch events.

Council can use for insightful updates on all thing regarding pet owners in the Inner West

Which one of our customers problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment?

Customer Segments Defines the different groups of people or organizations an enterprise aims to reach and serve. Customers comprise the heart of any business model. Without (profitable) customers, no company can survive for long. In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviors, or other attributes. A business model may define one or several large or small Customer Segments. An organization must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understanding of specific customer needs. Customer groups represent separate segments if: Their needs require and justify a distinct offer They are reached through different Distribution Channels They require different types of relationships They have substantially different profitabilities They are willing to pay for different aspects of the offer Questions to be Answered: For whom are we creating value? Who are our most important customers?

Value Propositions Describes the bundle of products and services that create value for a specific Customer Segment. The Value Proposition is the reason why customers turn to one company over another. It solves a customer problem or satisfies a customer need. Each Value Proposition consists of a selected bundle of products and/or services that caters to the requirements of a specific Customer Segment. In this sense, the Value Proposition is an aggregation, or bundle, of benefits that a company offers customers. Some Value Propositions may be innovative and represent a new or disruptive offer. Others may be similar to existing market offers, but with added features and attributes. Questions to be Answered: What value do we deliver to the customer? Which one of our customers problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment?

Channels Describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition. Communication, distribution, and sales Channels comprise a company's interface with customers. Channels are customer touch points that play an important role in the customer experience. Channels serve several functions, including: Raising awareness among customers about a companys products and services Helping customers evaluate a companys Value Proposition Allowing customers to purchase specific products and services Delivering a Value Proposition to customers Providing post-purchase customer support Customer Relationships Describes the types of relationships a company establishes with specific Customer Segments. A company should clarify the type of relationship it wants to establish with each Customer Segment. Relationships can range from personal to automated. Customer relationships may be driven by the following motivations: Customer acquisition Customer retention Boosting sales (upselling) Questions to be Answered: Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? Notes Questions to be Answered: What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model?

Key Resources

Describes the most important assets required to make a business

model work.

EverybusinessmodelrequiresKeyResourcesTheseresourcesallowQuestions to be Answered:

WhtKRdVlPitii?

Key Resources

Describes the most important assets required to make a business

model work.

Every business model requires Key Resources. These resources allow

an enterprise to create and offer a Value Proposition, reach markets,

maintain relationships with Customer Segments, and earn revenues.

Different Key Resources are needed depending on the type of business

model. A microchip manufacturer requires capital-intensive production

facilities, whereas a microchip designer focuses more on human

resources. Key resources can be physical, financial, intellectual, or

human. Key resources can be owned or leased by the company or

acquired from key partners.

Key Activities

Describes the most important things a company must do to make its

business model work.

Every business model calls for a number of Key Activities. These are

the most important actions a company must take to operate successfully.

Like Key Resources, they are required to create and offer a Value

Proposition, reach markets, maintain Customer Relationships, and earn

revenues. And like Key Resources, Key Activities differ depending on

business model type. For software maker Microsoft, Key Activities

include software development. For PC manufacturer Dell, Key

Activities include supply chain management. For consultancy

McKinsey, Key Activities include problem solving.

Key Partnerships

Describes the network of suppliers and partners that make the

business model work.

Companies forge partnerships for many reasons, and partnerships are

becoming a cornerstone of many business models. Companies create

alliances to optimize their business models, reduce risk, or acquire

resources.

We can distinguish between four different types of partnerships: Strategic alliances between non-competitors Competition: strategic partnerships between competitors Joint ventures to develop new businesses Questions to be Answered: What Key Resources do our Value Propositions require? What Key Resources do our Distribution Channels require? What Key Resources do our Customer Relationships require? What Key Resources do our Revenue Streams require? Notes Questions to be Answered: What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Notes Questions to be Answered: Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?

Cost Structure Describes all costs incurred to operate a business model. This building block describes the most important costs incurred while operating under a particular business model. Creating and delivering value, maintaining Customer Relationships, and generating revenue all incur costs. Such costs can be calculated relatively easily after defining Key Resources, Key Activities, and Key Partnerships. Some business models, though, are more cost-driven than others. So-called no frills airlines, for instance, have built business models entirely around low Cost Structures. Revenue Streams Represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings). If customers comprise the heart of a business model, Revenue Streams are its arteries. A company must ask itself, For what value is each Customer Segment truly willing to pay? Successfully answering that question allows the firm to generate one or more Revenue Streams from each Customer Segment. Each Revenue Stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management. A business model can involve two different types of Revenue Streams: Transaction revenues resulting from one-time customer payments Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide postpurchase customer support Questions to be Answered: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Notes Questions to be Answered: For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream Stream contribute to overall revenues?

However, the current stats of dog owners in Sydney still surpass the need for a space. Thus, it is important to source the correct warehouse and location whilst keeping in mind the surrounding businesses of the location and making sure they do not conflict with the environment of the proposed IDP and target market.

Competition

Almost two-thirds of Australian households have a pet today, and 90% of us have had a pet at some time.

Dog and cat owners tend to regard their pets as fur babies. Over 60% of dog and cat owners refer to their pet as a member of the family and most spend an average of 3-4 hours with their pets every day. Around half of all dog and cat owners allow their pets to share their beds, and more than 25% take their pets on holidays or road trips.

More than half of those who dont already own a pet are worried about the ongoing costs of pet ownership. However, among those who already have a pet, less than a quarter share that concern despite spending an estimated $1 billion more now than three years ago and its a rising trend to go out of their way to keep their pets happy and healthy.

Having a home or lifestyle that is not suitable is the main barrier to pet ownership in Australia. Around two-thirds of households without a pet would like one but are unable to due to barriers imposed by landlords, strata or body corporate rules, or their concerns about ongoing responsibility and cost.

But one thing that is irrefutable from this survey is that Aussies love their pets! Even though we are world-leaders when it comes to sharing our lives with animal companions, rates of pet ownership are on the increase.

Animal Medicines Australias new Pets and the Pandemic report shows that post Covid-19 cat and dog owners are spending thousands on their pets each year, averaging around $3,200 per dog.