2. General Company Description 2.1. Mission Statement
I had started a mini-storage which name is EZFUN from 2013, and now it has seven branches in greater Taipei area. However, I want to establish a new model mini-storage
service to expand my enterprise and enhance the competitiveness in the recent market. It’s not only a storage service for the family or small and medium enterprise, but also a third-party logistics service including taking inventory, storage management, package processing,
convenience delivery and face-to-face transaction for the small size e-commerce sellers.
Because this kind of small size e-commerce sellers don’t have much stock, they don’t need a big size storage space or establish their own warehouse. In addition to these type sellers often have other job, they just take a second job for the e-commerce or online auction. So, they don’t have more extra-time to finish the logistics jobs. However, they don’t have much budget to hire full-time employee or pay for the third-party logistics industry.
Therefore, I will establish a new model mini-storage service combined with the third-party logistics service. These small size warehouse will be established in the city center near the MRT, and it will offer more flexible, more convenient and quicker logistics for these target audience.
2.2. Company Goals and Objectives
The target audience is the small and medium size e-commerce seller, group buying
businessman or oversea purchase broker. They often have other jobs and just take a part-time work for the online shopping business. So, it’s not cost-effective to establish their own warehouse or logistics system due to small scale and unstable orders.
DOI:10.6814/THE.NCCU.IMBA.039.2018.F08
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The new model third-party logistics will help them enhance the operation efficiency and save the cost. These e-commerce sellers can focus on other more valuable tasks which they should execute, for example selecting the goods, finding the cooperation channel, taking the marketing proposal or optimizing the advertisement.
2.3. Business Philosophy
EZFUN is not only a storage industry, but also a service industry. I want to create more additional value and help my customers earn more revenue. My business philosophy is altruism because if the new model succeeds or not will depend on the customer business. It is very different with the traditional mini-storage model. Besides the rental fee, the logistics service fee will be the major source of income in the new model. So it’s very important to support our customers to grow up and get more orders.
2.4. Describe your industry
The first mini-storage occurred on 2009, and this industry grows very quickly. There are more than one hundred mini-storage branches in Taiwan this year. The desire of more storage space is a rigid demand in recent years.
On the other side, the e-commerce also develops very rapidly and hugely. The purchase habit is changing from the offline store to online shop. It causes many people to take a second job to become online sellers or oversea purchase brokers.
In conclusion, this is a very potential industry and maybe will have a double growth in next five years. So, I will take the first-mover advantage and optimize my service from the
feedback of our clients continuously.
DOI:10.6814/THE.NCCU.IMBA.039.2018.F08
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2.5. Describe your most important company strengths and core competencies
what is the reason that not many companies focus on this area if this is a so potential market? The possible reasons are the following three points
Low gross revenue per user: The target audience are usually little scale sellers. Maybe one seller only has several hundred numbers packages one month, even less dozens. So, the general third-party logistics company doesn’t want to involve in these markets. However, the mini-storage has smaller and flexible storage space and can receive less package volumes.
But, EZFUN can charge more unit price for the customized service to support this revenue model. On the other side, we have storage rental fee incomes and plus the additional logistics service fee. This pricing strategy will win over other traditional industry.
Complicated package and customized delivery process: Standard logistics process is necessary for the traditional third-party logistics industry. They need finish the task by much automated equipment. However, the too much automated and standard principle doesn’t match the customized demand. The EZFUN has collected many user’s data for five years.
And it will be the most important niche for the new business model. We know what they think and what they want
Marketing strategy and ecosystem for small e-commerce sellers: The pain point of our target audience is not only storage and logistics service, but also marketing support. EZFUN can offer a very good and convenient location near MRT station. In other word, the mini-storage will become a new style offline shop. If the e-commerce sellers can take advantage of this location, they will create many marketing strategies and events. The storekeeper can help them to execute some marketing events, for example, a flash event, pop-up store, an offline experience activity or a free trial event.
DOI:10.6814/THE.NCCU.IMBA.039.2018.F08
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I want to use this tool to analyze the new business model factors.
3.1. Value proposition:
It is the most important factor to every business model. We must define a clear and strong value proposition to our target audience. For the small e-commerce seller and oversea
purchase broker, we will offer not only storage space, but also customized third-party logistics service.
Besides, it can control their cost efficiently to help the manage the warehouse and stock, even though offer more offline marketing events. These online e-commerce sellers will have a total clicks-and-mortar business model. Online to offline conception will help them take much advantage in this competitive online shopping market.
Figure 1 Value proposition by CANVAS analysis
3.2. Target audience
According to my observation and feedback from customer from this years, I will set the customer segmentation for this model. The new third-party logistics will focus on the small e-commerce seller, group buying businessman or oversea purchase broker. This group members are young, trendy, and willing to accept new change.
flexible