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Vending Machine

The document provides an analysis of the strengths, opportunities, and risks of a proposed business idea to install a vending machine on a university campus. It analyzes the business idea, the snack and drink vending machine industry, the target customer market of university students, the founders' experience, and financial considerations. Overall, the analysis finds the idea has high potential due to there being no competitors on campus, a growing industry, a clear target market, and vending machines typically being profitable investments, though the founders have limited industry experience and connections and initial capital investment is high.

Uploaded by

Maria Shahnawaz
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© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
106 views

Vending Machine

The document provides an analysis of the strengths, opportunities, and risks of a proposed business idea to install a vending machine on a university campus. It analyzes the business idea, the snack and drink vending machine industry, the target customer market of university students, the founders' experience, and financial considerations. Overall, the analysis finds the idea has high potential due to there being no competitors on campus, a growing industry, a clear target market, and vending machines typically being profitable investments, though the founders have limited industry experience and connections and initial capital investment is high.

Uploaded by

Maria Shahnawaz
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FIRST SCREEN ANALYSIS

OF VENDING MACHINE
PART 1:STRENGTH OF BUSINESS IDEA
SR.NO STRENGTHS OF BUSINESS SCORE POTENTIAL REASONS
IDEA
1 Extent to which the idea: 4 • Technological Advancement.
• Takes advantage of an • Energy Saving
environmental trend

• Solves a problem 4 • Crowded Cafes.


• Some drinks and Snacks are not available in
Cafe.

• Addresses an unfilled gap in 4 • Niche Market of University Students.


the marketplace • Only being placed in malls and Airports.

Overall Score 4 strong Overall, the idea has a good potential, it is


something new that has not been done before.
This idea is customer friendly and also profitable
if implemented properly.
PART 1:STRENGTH OF BUSINESS IDEA
SR.N STRENGTHS OF SCORE POTENTIAL REASONS
O BUSINESS IDEA

2 Timeliness of entry to market 5 Very timely • No or few universities have this facility.
• No one is offering similar products

3 Extend to which the idea 4 Above • Variety of Options.


"adds value" for its buyers Medium • Useful at peak times, when there is crowd.
and end users
4 Extent to which customers are 3 Moderately • No vending Machine in Cafetria.
satisfied by competing Satisfied • No Variety of Snacks and Drinks
products that are already
available
5 Degree to which the idea 5 Small to no • Simple use of machine at any time.
requires the customer to changes • People already buy snacks and coldrinks
change their daily practices or required
behaviors
PART 2:INDUSTRY RELATED ISSUES
SR.NO INDUSTRY RELATED SCORE POTENTIAL REASONS
ISSUES
1 Number of competitors 5 (none) • No other university has vending machine in cafe.
• Only at Airports and Malls in Pakistan.

2 Stage of industry life cycle 5 High • Global vending machine market is poised to grow by
(Emergence $9.33 Billion between 2021 and 2025.
Phase) • Industry for vending machine is emerging.

3 Growth Rate of industry 5 High • Youth love innovations.


(Strong Growth) • Projected to exhibit a compound annual growth rate
(CAGR) of 14.0% from 2023 to 2030.
4 Importance of Industry’s product 4 Moderate • Technological innovation.
and/or services to customers (Would Like to • Benefit for Students.
have) • Advancement in Country

5 Industry operating margins 4 Moderate • Average vending machine generates $9,000 in annual
sales.
• Average profit margin for a vending machine is
approximately 20%.
PART 3:TARGET MARKET AND CUSTOMER RELATED ISSUES
SR.NO TARGET MARKET AND SCORE POTENTIAL REASONS
CUSTOMER RELATED
ISSUES
1 Identification of target market for 5 High • Clearly identified.
the proposed new venture (Identified ) • University Students

2 Ability to create “barriers to 5 High • By providing Variety in items.


entry” for potential competitors (Can create ) • By lowering costs.

3 Purchasing power of customers 5 High • These items are not expensive.


• Has become student's daily need

4 Ease of making customers aware 5 High • Student's regular visit to cafe.


of the new product or service • Social Media.
• Talks between class fellows and friends
5 Growth potential of target market 5 High • Many admissions every semester.
• Target market for students continues to grow.
PART 4:FOUNDER-(OR FOUNDERS) RELATED ISSUES
SR.NO FOUNDER-(OR FOUNDERS) SCORE POTENTIAL REASONS
RELATED ISSUES
1 Founders experience in the industry 1 No • Haven't started a business before.
Experienced • New to Business and Industry.

2 Founders skills as they relate to the 3 Moderate • Founders are students of Business Administration.
proposed new venture's product or skilled • Marketing, and Communication skills.
Service

3 Extent of the founders Professional 1 None • New to Business.


and social networks in the relevant • No networks in relevant industry.
Industry

4 Extent to which the new venture 5 Strong • All of us have goals in the field of Business.
meets the founders goals • To start our own business.

5 Likelihood a team can be put together 5 Very Likely • Can be managed by few people.
to launch and grow the new venture • Our team of 5 have harmony and skills to run this
business.
PART 5:FINANCIAL ISSUES
SR.N FINANCIAL ISSUES SCORE POTENTIAL REASONS
O

1 Initial Capital investment 2 (A Bit High) • On OLX it costs aprroximatelty Rs


400,000.
2 Number of revenue drivers 1 • We will start with one vending
(one) machine

3 Time to break even 5 (Less than 1 • By increasing sales.


year) • Continuous refill.

4 Financial performance of similar 5 Strong • Vending machines are profitable.


businesses • Average vending machine earns
more than Rs 1000 per week.

5 Ability to fund initial product 5 High • We are team of 5.


development and initial start up • Collective investment.
expenses from personal funds or via
bootstrapping
OVERALL POTENTIAL
SR.NO OVERALL POTENTIAL SCORE POTENTIAL REASONS

1 Strength of Business Idea 4.2 High Potential The idea has overall high potential because it is a new
technological breakthrough and serves a niche market that
hasn't previously being target.
2 Industry Related Issues 4.2 High Potential • No competitors.
• Overall industry is continuously growing
3 Target Market & Customer Related 5 High Potential • Overall we are targeting university students and faculty
Issues • Target maket is clearly identified

4 Founder-(or Founders-) Related 3 Moderate • No access to Networks in particular industry.


Issues Potential • Have required Skills.

5 Financial Issues 3.6 Moderate • Vending machines are great investments.


Potential • Investment is high but profit is also good.

6 Overall Assessment 4 High Potential Overall, the idea has a good potential, it is something new
that has not been done before. This idea is customer friendly
and also profitable if implemented properly.

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