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Mission:
To provide organisations a low cost solution to quicker deliveries

Vision:
To help organizations achieve a competitive advantage through their optimized
supply chains through an innovative concept which is both collaborative and
quality oriented.

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Executive
summary

Waring is a start-up
aimed at providing flexible warehousing solutions to the ever-increasing
e-retailers in the country. The company has a vision of changing the
conventional way of getting the warehouses on a long contractual basis by providing
a platform where the organisations can choose the location from waring’s wide
network wherever they want and pay for just the space that they have occupied
and just for the time that they have occupied.

Powered with an
innovative concept, the company will be looking to tie up with warehouse owners
pan India to grow its network and simultaneously pitching to the e-retailers
who are seeking for the space, as a reliable option to resolve their
warehousing woes and optimize their supply chains. Thus, creating a win-win
situation for every stakeholder involved. By targeting warehouses that are
available in the tier 2 and tier 3 cities, the company will be looking to
provide quicker delivery options to the e-retailers. Thereby, enhancing the
facilities and contributing in Indian government’s bid to make the nation more
connected.

With no brand name to
back Waring, the company will look to deliver on the promises, to build
customer’s trust, that will be made during the advertising and marketing
campaigns with help of its robust and user friendly software which easily
integrates with the client’s business functions. By building up its quality
certification system known as ‘Warehouse Certification System’ and issuing
certificates to the warehouses before they are listed, the company looks
forward to keeping the sustainable quality standards in place.

The
service concept: –

The service concept of
does not limit only to provide the space but also providing efficient services
at the lowest costs which will be done by the following ways:

1.     
Flexibility
offered by providing the real-time information of space availability:
the listing of the warehouses will be done in real time and also the space
availability that is there in the listing on the website. The space seekers
will book the required space for the duration that they require it for. The
warehouse owners will immediately get a notification of the booking and the
site will be updated immediately.

2.     
Transparency
in Hassle free payments and fund transfers: the aim to transparency
between the funds transfers between the interacting parties is achievable
through transferring the amounts directly to the space owners. The funds can be
transferred through waring directly to the owner. Waring will command its share
of payment of the service provided through the space owner. This will also help
in lowering down any legal costs that may be involved for all the stakeholders.

3.     
Warehouse
certification system: We intend to develop our own warehouse
certification system to standardise the process of quality checks through which
the warehouses have to go through before they get listed on our portal. This
will ensure that the service that are provided are of highest quality and most
importantly are in line with our mission and vision and as well as strategy.
Thereby, also ensuring the authenticity and maintaining the quality of the
warehouses.

4.     
Seamless
integration to business functions through website and a user friendly mobile
application for the interaction between the lender and the person who is in
need:
this is important whenever there is something need to be cross checked between
the warehouse provider and the warehouse seeker. They can very well interact
through the application if they have not developed a personal contact. Hence, all
the aspects of a business engagement.

5.     
Customer
feedback to continuously improve the operations and service level:
this will play a very important in developing of our services in the future as
customer feedback will help us in improving the services that we are providing.
Continuous improvement will only take place if we keep learning from the
customer’s experiences. According to the customer feedback the poor performing
warehouses will be de-listed whereas the warehouses similar to already listed
high performing warehouses will be searched for.

Organisation’s
core values

1.     
Collaborative:
the company intend to create a marketplace for the private warehouse owners and
e-retailers.

2.     
Quality
oriented: the company aim to sustain the promises made on
delivering high quality services through its self-developed warehouse
certification system which is a form of quality checks which each warehouse
will have to go through to get listed on the website.

3.     
Fairness:
the company will maintain high levels of transparency throughout the
integration process as well as after sales services. The company will ensure
that the private warehouse owner does not get a price lower than what is
prevailing in the market. The company will not get indulged in malpractices as
far as being competitive in the market is concerned.

4.     
Accountability:
the company will take full responsibilities if there is any lapse in the
services offered and there is any loss incurred due to the faults of any waring
employee. However, the company will strive to achieve no incidents where it has
to bear any loss.

5.     
Innovation:
the company will continue to spend its majority of funds in the research and
development of the software which will be in line with its differentiating
strategy.

Value
chain:

1.     
Firm
infrastructure: Waring is low on infrastructure as its
main aim to keep the fixed assets as low as possible and rather invest on the
research and develop on the software and continue to innovate.

2.     
Human
resources: it plays a key role in functioning of waring as
the customer interaction and the process of making the private warehouses to be
listed on the platform will be a critical task in the early stages.

3.     
Technology
development: waring will continue to spend the
budget on the research and development of the software used as part of it’s
differentiation strategy. This will be done to make both internal and external
user experience seamless.

4.     
Procurement:
there will be no major procurement as far waring’s core operations are
concerned.

5.     
Operations:
waring’s primary operations are to make an interaction between warehouse owners
and warehouse seekers possible.

6.     
Marketing
and sales:  the
marketing and sales activities will look to create awareness in tier 2 and tier
3 cities regarding our service concept. Since it’s a new concept therefore it
will need an extensive marketing to make people come on board.

7.     
After
sales service: waring’s real work starts after the
sales that is ensuring the seamless integration and providing the expected
service to the client, ensuring the last mile deliveries to be delivered as per
schedule will be top priority for waring.

SWOT
Analysis

Opportunities:

1.     
Technological
leadership: since the concept is innovative, the business will
have a first mover advantage and won’t have to face the entry barriers that are
usually present while starting up a business. It can build up relations and get
a control over resources which can end up resulting in high profits in the
later stages.

2.     
No
entry level barriers: since the concept is new, there do not
exist competition and hence there are no entry level barriers to the company.

3.     
booming
e-commerce industry: according to the report published by
KPMG India’s e-commerce market is expected to grow at a CAGR of 31% to be at 80
billion US dollars by 2020 which is a clear indication that the industry will
continue to grow and will offer a lot of opportunities for the logistics
industry to exploit and gain profits out of it.

4.     
Solving last mile delivery issues

Threats:

1.     
Industry
acceptability: since it is a challenge to the
conventional way of working in the industry and will require the organisations
to modify their business functions and processes, the acceptability remains
uncertain that whether the organisation will want to adopt it.

2.     
Competition
can easily rise: after seeing the success of the
concept, there is a threat that competition may rise to exploit the gains and
challenge the monopolistic environment that might be there around our
organisation. The already established players in the market like amazon and flipkart
can come up with faster delivery options and due to their already established
brand name can gain a competitive edge over our organisation.

Setting
up of offline stores to establish a single point of contact in the market so
that if anyone wants to store anything we can direct him to the listed
warehouses and give him details about he space available and information
regarding rent.

There
can be issues related to issues that might occur when the warehouse owner and
warehouse interact for the transaction to take place. It will be important for
our organisation to deal with it to have a successful future.

Strength:

1.     
Robust
software: the software packages are robust which can easily
integrate into the existing business functions of the organisations and hence
leading to seamless way of working. The software also includes the financial
module and the delivery schedule

2.     
Innovative:
the concept is innovative and thus have a clear competitive advantage over the
conventional contractual way of working in the industry which often leads to
underutilized warehouses.

3.     
Providing
flexibility: the organisations renting out the
complete warehouse on contractual basis limits their ability to deliver quickly
to the tier 2 cities thereby the organisation must face all the consequences
such as cancellation of orders etc. through the use of our services they have
the flexibility of paying just for the space that they have occupied. Hence,
optimizing the supply chain.

4.     
Expansion:
after the company has established it’s operations in India, the concept can be
taken internationally and can look to tap into opportunities present over
there.

Weakness:

1.     
Not
a brand name: since, it is not well established, yet
it will be a challenge to get people on board and let their warehouses to be
listed with us. On the other hand as well, those seeking out spaces do not know
us, so we will have to put in extra efforts in the marketing campaigns.

2.     
Untested
solution: the services that we offer are innovative and
hence, they are prone to challenges that spring up only when it goes into use.
Resolving the issues that might come along the way will be a challenge to look
forward to.

3.     
The
idea can easily be copied: Since, in today’s age there is
boom in software’s that act as a service and hence the idea behind waring can
easily be copied and similar start ups can spring up and provide the same
service in some modified way. It can contribute to hiking of the rental prices
in the tier 2 and tier 3 cities since if every warehouse available gets
occupied then the warehouse owners will demand a higher price.

4.     
Legal
issues: Since waring will be acting as a mediator between
the two parties it will be unintentionally part of disputes which can lead to
its bad brand image.

Porter’s
Five Forces Framework

1.      Barriers to Entry:
These are the factors that cause additional costs to the new entrants which are
trying to enter into a market segment due to presence of well-established
incumbents which might to use their power in terms of economies of scale and
resources available at their disposal. Incumbents generally try to make it hard
for the new entrants to enter into the market simply because they are a threat
to the incumbents. New entrants lead in the technology and hence they always
pose a threat to disrupt the market, to tackle this the incumbents try to
create barriers for them.

a)     
Entry
costs: these costs are basically the costs that must be
incurred by the new entrants due to the presence of well established incumbents
in the markets. This may be since the already established sellers have a
defined customer base and has a certain brand image linked to their product.
The consumers while looking for a product generally tend to trust the
well-established sellers and subsequently overlook the new entrants, to resolve
this the new entrants must conduct lot of marketing and promotional campaigns
and make their product competitive enough to rival with their competition. The
money spent in making the product competitive enough are basically the entry
costs that the new entrant must incur. Since, the concept is relatively new it
doesn’t have to incur any direct costs but to compete with the existing system
of the contractual leasing of the warehouses, it will need to persuade the
organisation to use its services. For this the digital marketing and meeting
with the heads of logistics department of organisation will have to take place.
The costs incurred in this will be the entry costs that Waring will be
incurring.

b)     
Speed
of adjustment: This is important for a new entrant as
it is critical to adjust to the way the things work in the current environment.
Sooner the new entrants can persuade the consumers to use their services better
it if for them in terms of their financials as it will mean that the break-even
point is reached sooner than later.

c)     
Ongoing
contractual leases: the organisation operating today will
be having warehouses on contractual terms that must be on long term basis. This
can create an entry barrier to our organisation as it will be difficult to
convince the organisation to break off that deal and use our services. Also, those
who are lending their warehouses will want to go for long term contractual
leases since it offers more financial security for them and they would not have
to care whether their warehouse is half full or completely occupied. By making
them fully aware of the benefits and how they can earn more consistently, and
greater amounts will have to be explained to them. By doing this the entry
barrier can be overcome.

d)    
Research
and development costs: it is important develop a robust
system that can handle the financial transactions as well which is necessary so
that the consumers get the complete services in a single package. The system
should be such that it can easily integrate into the business functions and
does not create a hindrance in the current working of the organisations. Hence
it should be well researched and well developed. The costs related to this
might be so high that it creates an entry barrier to the company.

2.      Power of buyers:
to establish the organisation it will be critical to gain customer’s trust in
our services that is we provide seamless integration. Since, we are pursuing
the customers to make a change from the traditional way of working it is
important that that they don’t feel extra burden while doing it. In order to
achieve this the services has to be fool proof, prices competitive and software
should be robust. Since, the substitute to our service is a well-established
long-term leasing, the buyer can command high pressures on our organisation and
can anytime make a switch and return to the old methods and continue working
around it.

3.      Substitutes and compliments:
if the price of a substitute product is less than that of the service we are offering
than there is a possibility of customers to go for the substitutes. Similarly,
in the case of the substitute offering greater values as compared to our
product/service then also the customer will want to go for that product. In our
case, the substitute of the waring is to go for the long term contractual
leases which is not a cost-effective solution and does not contribute to the
organisation’s goal of using an optimized supply chain as a competitive
advantage. Thus, this will not act as much on the company as other forces. But
if the customer is unhappy with our services or if the services provided are
inefficient at any given point of time then the customer can make a switch to
the long-term leasing. Thus, affecting our organisation big time.

4.      Industry rivalry:
industry rivalry comes into play when the well-established players start
matching the product qualities or the services that the new entrant is
providing for example by matching the prices or introducing new features in
their existing products. Since the degree of differentiation is relatively high
in case of waring and the traditional long-term leasing, the industry rivalry
will be low unless and until new competition with similar concepts spring up in
the market and start offering their services at a competitive price. It will be
hard for the already established players that provide complete warehouses on
lease to change their business structure and move into a completely different
domain.

5.      Power of input suppliers:
the power of input suppliers will play an important role in determining the
success or the failure of our organisation. A lot will depend on the prices of
the listed warehouses on our site. If the warehouse owner knows that he is in a
location which is strategically important for us for example rural Punjab
region has a high buying capacity, so the e-retailer will want to have a
storage capacity located in the same region so that it can cater to the
demands. In this situation the warehouse owner can command a higher price than
normal. This can be the case for every place since we are targeting the tier 2
and tier 3 cities but when we compare from the traditional way of working and
the amount of rent paid in the metro cities, these will still be less. Also,
since we are new in market the warehouse owners will be reluctant to join the
platform and hence additional benefits will have to be provided to them in
order to make it more lucrative to them. 
Thus, there will be high power of input suppliers initially but as we
reach economies of scale it will be lowered.

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