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AMGD is an ecommerce food delivery service provider that want to set up a joint venture with GO – FOOD to deliver various recipes to the customers at their home or office. The AMGD, full form of which is Ahhmagawd, is formed in the year 2016, with the mission to provide ecommerce healthy food delivery service. The main objective of the company is to supply healthy and specially catered food at the door step of the customers from wherever the customer sends a request. The objective of the company is to make the customers conscious about hygienic diet without wasting their time in cooking or to stand in queue in front of food shops. As a minor of Li Da foods Pte ltd, this company is formed by the CEO of Li Da foods, the main mission of whom is to supply hygienic foods at any place from where the customer places an order.
The company offers hygienic food at affordable price at the most convenience place where the customer wants. The company design such a strategic plan that will help the customers to not to think that at what time what recipe they should order as it will be prefixed by the company. the menu of the company contains a mix of the both vegetarian and non vegetarian foods. To make the customers aware about the dishes that they want to consume, a brief description of all the items will be disclosed to the customers which also include the details of the ingredients used for the preparation of the item. In addition to that the company provide flexible packages to the customers which help them to buy foods as per their own convenience and they will not be imposed with any extra cost for such additional benefits provided by the company. there are several types of items offered by the AMGD which includes different variety of rice-based items, salads, poke bowls and different highly nutritious and delicious foods which give the customers an opportunity to select the best item as per their own preferences. This kind of services makes AMGD a unique food shop that delivers healthy food at any place as per the requirement of the customers which increases the customer base of the company (AMGD. (n.d.).
As Indonesia is considered as the largest market for food industry in the ASEAN region, the consumption rate if the company will continue to expand continuously in the future. This factor creates more opportunity to the company to expand their business in this country as well as in the places like Bali and Jakarta were the demand for healthy food is rising. As the purchasing power of the customers are increasing, they are become more conscious about the hygienic foods (Tajeddini Ratten & Denisa 2017).
Strength The management team of the company is very experienced in this field which helps them to easily understand the market trend and to take decisions accordingly.
The efficient management team helps to build up strategy which will help to reduce the cost.
The idea of supplying the foods at the place where the customer wants become a unique idea in Indonesia. The price of the food item is affordable for the customers.
|
Weakness
Deficiency in the manpower
The service recovery system is inconsistent |
Opportunities Due to the inclusion of experienced management team the company get the opportunity to expand the business.
Favourable business environment in Indonesia
Fund that can be used to open a retail shop may be utilized to make improvements in services.
Making new innovations in the items and in the offers, which attracts more customers. |
Threats
The cost of the ingredients of the foods increased.
Large number of market participants for which the rate of competition is high. |
In the year 2019 new rules were imposed on the companies, for which it become mandatory for the organizations to hire more local employees so that the unemployment problem in Indonesia decreases and improve the economy of the country.
Several tax benefits are offered to the organizations to provide training to the local people of Indonesia.
As in Indonesia moats of the people are by religion Muslim, the company has to take certification from the government that it is doing a halal certified food business (Indonesia Investments 2018).
The business strategy of AMGD is to collaborate with a local delivery service provider named Go – Food. On the basis of the survey made by Nielsen almost 58% of the people of Indonesia use app for placing the order for their food, the survey reveals that at least two orders are placed per week on an average basis. The joint venture wit the delivery service company will give the option to AMGD to capture more market area as go food is one of the best delivery apps in the country. By outsourcing the delivery of the foods to Go-Food, the company will get the option to concentrate more in preparing innovative food items and it will also save cost that may be required to train the staffs for delivery of the foods to the customers. It will also create more job opportunities in Indonesia. The company will use the digital advertising tools for the promotion of the services that they want to render on the website of Go Food as this company has already have a popularity among the people of Indonesia. The company will also get the benefit of low cost of vegetables in Indonesia which helps to reduce the cost of production of the company (Neilson et al 2017).
By analysing the financial statements, it can be predicted that starting a joint venture in Indonesia can be a wise decision of the management of AMGD which can bring profitable opportunity for them in the future. As the cost of labour and other raw materials like vegetables is very cheap in this country it also helps the organization to produce recipes at affordable price. As the company outsourced the process of delivery of items to the customers to a local company in this aspect also the company will be able to save more cost and provide delivery services to the customers at very cheap rate (Piesse 2016).
Primarily the target of the company is to capture the local market of Indonesia and then gradually extend the market through long term existence in the market. The company wants to appoint a consultancy firm to do a research work and give them an idea about the demand of the market and the current position of the company in the Indonesian food industry. Based on the result of the research the product pricing strategy is made by the management of the company (Wijaya 2019).
The pricing of products like food items, there is no hard and fast rule, the price of the item depends on the order quantity and the packaging. To capture the market the management decided to adopt the strategy of keeping the price of the foods as low as possible. For the initial 4 to 12 months the company will offer high discount rates on the process and will not take any extra charges for the delivery of the items within 10 km of the food store. This pricing strategy is made to attract more customers at the initial stage and to understand the demand for the items produced by the AMGD (Setiawan et al 2016).
The company has outsourced the Go- Food company as their delivery partner. The company has made an agreement with the company that for every order they will pay 0.5% of the total value of the order placed by the customer (Metaragakusuma Katsuya & Bai 2016).
In spite of the fact that the company has wide range of products which is highly demanding, still the company wants to give equal importance in the promotional activities so that it can reach more customers and create a brand image among the clients.
The long-term promotional strategy is to open more stores in Indonesia and also to sale franchise and for that reason the company decided to create a strong brand image in Jakarta from which it will be possible to spread in other important locations of the country. The publicity strategy is made not only to sale the products but also to create a brand image of AMGD (Purwantiningrum et al 2018). The platforms that will be used by the company as part of the promotional strategy are:
The total cost estimated for this publicity strategy is (AUD 10000)
It is clear that the people of Indonesia will always require foods and drinks by placing orders from their home or offices. So, it is estimated that the revenue will grow at a high rate in the coming days. At present it is estimated that on a n average their will be sales of AUD 1500 per week. The AMGD is well positioned to capture the market of Indonesia. The management is quite positive about the target that has been set during the first six months of the operation and they have a target to expand the market gradually all over the major areas of Indonesia.
The main production strategy of the business is by taking the advantage of the low rate of vegetables and other raw materials the company try to produce items at cheap rate so that they can attract more customers. The main production strategy is to give value to the needs or requirements of the customers and produce items that are demanded by the customers. The company wants to give importance to the quality of the foods and also on the hygienic factors.
In respect to delivery service AMGD has clearly stated the go – food delivery boys that they should behave politely with the clients and should try to deliver the food within the stipulated time as demanded by the customer (Machmud et al 2019).
From the above discussion it can be said that AMGD will become one of the best companies that is engaged in producing best foods and deliver these food items to the home or office of the company. with the growing demand of the home delivery of food the company will be able to quickly capture the market and become the leading quality food supplier of the country. The joint venture with the Go – Food delivery company will add more value to the services of AMGD and that will help it to attract, more customers in the future.
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