Business Proposal Essay Example | Topics and Well Written Essays - 1000 words - 2

Business Proposal - Essay Example The aim is to provide coffee services. Coffitoff will start its online business from England mainly London and then at later stage expand its market to other parts of the UK. London is the business hub of the UK and it is there where the product will be tested. The business will be started as a sole proprietor and if need arises it will go public to attain funds. The coffee beans are exported from other countries. This increases the cost of the coffee in the UK as compared to the American or Asian countries (Casenotes, 2004). Coffee is not easily affordable in the UK. The global recession that took place in 2008 has made consumers very careful of how they spend their money. Coffee is regarded by many as a product of surplus need rather than an immediate one. People in the UK can go without drinking it (Ireland, 2009). Consumers look to save every penny in these harsh economic times. As newer coffee machines are coming into the market it is becoming easier for people to purchase and keep these machines in their home. It is cheaper to make coffee at home rather than ordering online (Hashemi, 2002). The target market for Coffitoff comprises of business professionals who find it hard to stop by a coffee shop for a cup of coffee. Recent research shows that 60% of all business executives would like to have a cup of coffee at least once a day in London (Richardson, 2014). Out of the 60% only about 18% of the professionals make it to the coffee shops. This means that 42% of the people are deprived of this need as they do not have time for coffee. Coffitoff will look to cater this segment of people (Richardson, 2014). 1. Rivalry: Online business is still very new and is growing. At the moment, there are over a dozen online coffee shops in the UK. Brand identification is very important to maintain the rivalry and market position between coffee shops (Pride, 2008). 2. Threat of substitutes: The threat of