The proposed business will make use of several models. First, the resource-based model will be essential to developing the firm’s competitive advantage because it views a company’s internal resources as key to its overall competitive performance. The resource-based view assumes that the company depends on its tangible and intangible resources to remain competitive. The tangible resources could be a firm’s profitability, grooming, feeding, walking, pet sitting, or even providing vet care. These resources help to create the competitive advantage that the proposed company needs to outperform its rivals. Using this analogy, the main sources of competitive advantage for the Happy Pup Happy Life would come from its intangible assets. Quality customer service, brand reputation, and intellectual property are a few of the intangible assets that Happy Pup Happy Life could leverage for better market positioning. Some of these intangible assets are difficult to replicate, as we will develop them over a long time. Furthermore, some of them are intertwined and interdependent. For example, the company’s reputation would be subject to excellent customer service because poor customer service would ultimately dent the company’s image. Relative to this reasoning, we intend to trademark the company’s name to, possibly, trade it in future. Based on the focus on excellent customer service, the company’s name should be a source of competitive advantage for the company.
Another strategy to improve Happy Pup Happy Life’s competitive advantage revolves around digital marketing optimization. It involves being smart about where the company is advertising its products in the digital market space. Although details about this plan would be clearer after executing the “clicks strategy,” we will consider placing online ads in places where there is a high potential for a deep customer engagement and customer loyalty. The aim of doing so is to promote the organic growth of the company through repurchases and referrals. Since Happy Pup Happy Life’s competencies mostly revolve around fulfilling the demand requirements of its clients, it is important to understand the value of transactional demand for the company and the value that lean intervention could add to the company. Value demand emerges when the company receives inquiries from customers that could potentially lead to new sales. This type of demand differs from failure demand, which often emerges when customers inquire about a purchase they had already made.
Revenue Generation
Reflectively, the company’s net income is a good performance indicator for different aspects of its operational attributes. At the same time, customer service is an important attribute for most companies, such that it could mean the success or failure of the company. The service quality is likely to reflect in its net income numbers. Therefore, net income will be an important indicator for Happy Pup Happy Life’s company success because low net income numbers would mean that the company is not offering good customer service, while high net income numbers would probably mean that the company is doing well. Since the company aims to provide quality customer service, then we expect to have a strong cash flow. The company will generate revenues from grooming, feeding, walking, pet sitting, and providing vet care services at a fee. Besides, revenues will be generated from consultation services to dog owners across the targeted market. The company will have recurring revenues from mainly the service department that deals with grooming, feeding, walking, pet sitting, and providing vet care services. The recurring revenues will be in the form of payment for repeat clients who will have a short or long-term contract with the company.
For purposes of this company plan, we used the balanced scorecard technique because it resonates with the nature of the company and the context of its operations in the form of customer, company, and growth perspectives. The customer perspective emphasizes the importance of satisfying customer needs. This customer-focused perspective recognizes that customers could easily seek the services of other service providers if they are unhappy with one company owner. Using this line of reasoning, the customer-focused perspective looks at customer dissatisfaction as an indicator of future company decline. The financial perspective looks at organizational performance in the context of how its operational activities should improve its financial position.
The company process perspective of the balanced scorecard technique underscores the need to examine company operations to achieve organizational success. The focus on this perspective highlights the need for managers to understand how well the Happy Pup Happy Life Company is running and how its internal organizational processes work towards meeting organizational goals. Lastly, the learning and growth perspective of the balanced scorecard technique refers to the need for organizational self-improvement through the framework of cultural growth and employee training. Implementing the customer perspective approach on Happy Pup Happy Life’s strategic blueprint involves understanding the company’s key performance indicators (KPIs). Happy Pup Happy Life would have five key performance indicators as follows;
Customer retention
Customer retention refers to the degree to which customers are likely to stick with a company and do more company with it. Companies that succeed in this regard often bring back customers and have a steady stream of clients who would repetitively choose to do company with the company, as opposed to moving to its competitors. Having high customer retention numbers would be a positive outcome for Happy Pup Happy Life.
Conversion Rate
The conversion rate refers to the likelihood that a potential customer would do company with a company. A high quality customer service would increase the conversion rate of the company. Conversely, a low quality customer service would exert a downward pressure on the conversion rate. Based on this analysis, Happy Pup Happy Life would strive to have a high conversion rate by implementing effective marketing strategies and collaborating with the established companies in the sector.
Resolved Issues
Many service-oriented companies often register customer complaints. While the number of customer complaints could be an abstract indicator of the quality of customer service, the number of issues a company resolves are a better indicator of how well it is addressing its customer needs. Therefore, having a high number of resolved issues is a good indicator of excellent customer service, while having a low number of resolved issues is an indicator of poor customer service. Having a high number of issues resolved would be a primary objective of Happy Pup Happy Life.
Complaint Escalation Rate
The complaint escalation rate is a reliable indicator of customer service and is an inverse understanding of the rate of resolved issues because the failure to resolve customer issues leads to an escalation of complaints. Therefore, the two indicators intertwine. In line with this reasoning, experts encourage companies to investigate their customer escalation rates and customer growth percentages. Happy Pup Happy Life will strive to have low complaint escalation rates. Thus, these strategies will be used to ensure that the business grows and the projected results are attained.
Income Projections
Income will be generated from three main activities. The first one is from dog walking activities. Revenue that is expected from dog walking will be charged based on the size of the dogs and the number of dogs being walked. The estimated weekly gross revenue for the first six months is estimated at $4,890. The corresponding weekly expenses amount to $2,535.75. This value is made up of payroll and credit card expenses. We estimate that the weekly net income in the first six months is $2,354.25. The income projections for dog walking for the first 6 months, first 3rd quarter and first 4th quarter months are $140,896, $195, 472, and $703, 056, respectively. The estimated weekly, monthly and quarterly gross profit margin is estimated at 48%. Further, we estimate that the revenue will grow from the third quarter of the first year of operation. The gross revenue from this activity is expected to grow from $492,848.00 in the first year to $703,056 in the fourth year. The gross profit margin will remain constant at 48% during the same period.
The second income generating activity is vacation. We have estimated that the annual gross revenue will be $222,464.00 while the net income will be $115,244.80. The gross profit margin for this activity is estimated at 52%. Also, the income projections for vacation for the first 6 months, first 3rd quarter and first 4th quarter months are $41,808, $69,424, and $222,464, respectively. The final revenue generating activity is grooming. The recurrent revenue will be based on the size of the dog. From this activity, we have estimated that the monthly projection will be $7,800. The corresponding net income is estimated at $2,568.33. The estimated gross profit margin is 33%. The annual total gross revenue for year three and four is estimated at $111,360 while the net income is estimated at $39,692. The gross profit margin is estimated at 36%. The income projections for grooming for the first 6 months, first 3rd quarter and first 4th quarter months are $31,200, $37,120, and $42, 350, respectively. A comparison of the three activities shows that vacation has the highest gross profit margin. Besides, the projections show that the business is profitable. A summary of the working are presented in the table shown in the appendix section. The table gives detailed information on the pricing, and expected weekly, monthly, and annual revenue. It also gives a breakdown of expected expenses and projections for the four year period for each activity.
As a strategy for sustaining the level of revenues that we have estimated, the company channel that will be used by Happy Pup Happy Life would adopt a bricks and clicks framework. The framework often works when companies have an online and offline presence. The company promoter chose this company model because Happy Pup Happy Life is a service-centered company and a bricks and clicks strategy would increase different ways of serving and engaging its clients. The bricks and clicks strategy will work in a complementary manner because the company expects the online strategy to complement the back office work.
Appendix
Dog walking
Vacation