XYZ Company Analysis

Paper Type:  Business plan
Pages:  7
Wordcount:  1798 Words
Date:  2022-03-29


Unparalleled population growth, untapped opportunities, and financial implications emanating from global and local economies necessitate new opportunities and businesses. It becomes imperative for new startups to enter the market, take advantage of the untapped opportunities and develop the underlying markets while decreasing unemployment levels. As such, XYZ is a startup company seeking to identify unmet needs in the realms of food and beverage products markets. The Company is a standard and enlisted distribution organization that will be engaged with the imports and distribution of food and beverage products to local retailers. Our distribution centres and premises will be situated in some of the busiest parts of California. We have possessed the capacity to lease a warehouse that is sufficient to accommodate our storage needs. The company will import and distribute an extensive variety of food and beverage products at reasonable costs from various brands. Our core products will be jams, Green olives, Juice, canned beverage, carbonated water and energy drinks. We know that there are numerous competitors in the hence the in-depth market analysis and feasibility studies that we conducted before commencing. We have a vigorous distribution organise, robust online presence, and our merchants are equipped with the different payments of choices accessible in across the country. Beyond the distribution of these products, customer service is top of our priorities. We realise that our clients are the motivation behind why we are ready to go which is the reason we will go the extra mile to get them fulfilled. XYZ will guarantee that every one of our clients is given top-notch treatment at whatever point. We have a CRM system that will empower us to deal with a one-on-one association with our clients regardless of how vast the quantities of our clients' base and conveyance system may develop too. We will guarantee that we get our clients engaged in the determination of brands that they need us to be associated with distribution. We will also guarantee that we consider ourselves responsible for the most noteworthy principles by addressing our customer's needs unequivocally and entirely.

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Finally, the business will be financed with $75, 000 of owners' savings and $100, 000 from a business loan. Initial costs are approximately $45,000. Sales are estimated at $300, 000 in the first financial year with positive cash flow.


Located in Southern California, XYZ is a startup company specialising in Food and Beverage products. The company's primary business operations consists of buying beverage and packaged food in bulk from other regions and selling them to retailer and individuals in California. We will also have a warehouse that will facilitate the storage of imported products before being channelled into the distribution system. The onset of this company was motivated by the identification of the geographical area's competitive advantage and growth opportunities. A blend of new market channels and business models, therefore, will aid the company to maintain a positive growth trend. Furthermore, the region encompasses several businesses in the food and beverage sector. Whereas some of these companies are big global corporations, most are small, medium enterprises (SMEs). The presence of these businesses and vast population present merger opportunities for the company.

With the end goal of developing and maintaining an iconic brand in the industry, XYZ will take into account the current health and wellness trends. These efforts are bolstered by the realisation that iconic brands in the food and beverage industry should evolve and align themselves with the dynamic and ever-changing tastes and preferences. As such, XYZ will not invest heavily in mass marketing but particular markets. Our presence will enable us to spot and respond to arising trends and voids in the market as well as customer attitudes. An interactive approach that accommodates customer feedback will also prove to be an asset along these lines. Here, despite our size compared to our more significant counterparts, will have a more premium brand image and gear the company in the right direction. This way, as consumer tastes and preferences keep on changing, we will be in a better position to capitalize on them. Presented with a build or buy growth and innovation strategies, we are not inclined towards either approach as our decisions will primarily depend on the general company objectives at the time, potential benefits, risk factors, and strengths and weaknesses.

Our vision is to become an industry leader in the food and beverage industry and the brand of choice in California. Our mission is to establish the most lucrative and successive food and beverage business that will import and distribute products from leading manufacturers at minimum prices to retailers and organizations in California.


Company's Innovation

The primary goal for my business is to import beverage and packaged food products at the wholesale price and consequently sell those products to local retailers and individuals. To achieve this objective, I am planning on using e-commerce technology. This is because e-commerce has become very popular in the recent years due to the advancement of the internet technology. Moreover, it is seen as one of the most secure and reliable forms of business (Eckmann, 2016).

My business deals with products such as jams, juice, green olives, carbonated water and energy drinks. This means that the company's customers and potential clients are readily available. However, the problem occurs during the importation and the distribution phase. During importation phase, we often face difficulty tracking the products ordered. On the other hand, some of the challenges we usually face during distribution phase include: inconsistent relationship between the business and the customers (local retailers and individuals).

I am planning on creating an e-commerce website which will allow an interaction between the business and its customers. This site will require all the customers and the retailers using the company's products to create their personal accounts in the website. With their personal accounts in hand, these customers will have the opportunity to order the organization's products in advance and even give their feedbacks after using those products. Therefore, this practice will simplify the distribution process for our business and most importantly create a large pool of loyal customers. The website will also have a functionality which will allow me to monitor the importation progress. And consequently make payment for the products ordered. Hence simplifying importation phase.

SWOT Analysis for the Company’s Innovation


An e-commerce website will not only foster a strong interaction between the business and its customers but will also allow the business to have an online store where it can sell and market its products. Moreover, the implementation of this innovation will result in transaction efficiency, i.e., minimum time will be taken when paying for the delivered orders. Finally, this innovation will ensure quick delivery of products and effective communication within the business which will ultimately result in total customer satisfaction (Eckmann, 2016).


My innovation requires both the business and its customers to have a constant internet connection. This means that in events of internet break down or technology hiccups the business is likely to incur a lot of losses and consequently face customer dissatisfaction. Furthermore, credit card frauds and other malicious activities are becoming a real problem for e-commerce sites (Peters, 2012). These practices are likely to result in chargebacks which can lead to penalties, loss of revenues, and bad reputation.


It is evident that e-commerce technology has brought a lot of opportunities both to the business and to the customers. This innovation, for instance, will improve convenience for customers by enabling them to order the organization's products in advance. Moreover, this innovation will enable the business to widen its customer base. This is because the more we get registered customers, the more loyal clients we attract.


This innovation is web-based therefore it is likely to be vulnerable to a variety of IT security matters. For example, many organizations and businesses using e-commerce technology have become victims of malicious hackers in the past. These malicious hackers often target customer information from the organizations' database. And allowing the leakage of customer information may have financial and legal implications on the company's part. Therefore, malicious hackers are our greatest threat when implementing this innovation.

Industry(s) in which the innovation will be located

E-commerce technology is becoming increasingly popular nowadays and many companies are adopting these technology into their operations. My innovation is based on this technology therefore industries in which this innovation is likely to located are: marketing, supply chain management, advertisement, and inventory management industries. Marketing industry involves creating awareness, reaching more audiences, and most importantly convincing people to buy your products. Due to its web-based nature, my innovation will enable organizations to link their external and internal processes more effectively and efficiently. Moreover, it will allow these organizations to work closely with their customers hence enabling them to market their products in the process. It is also not limited to geographical location, therefore companies using this innovation have the power to reach a wider audience within a short period of time.

One of the cheapest way to do advertisement is by using the e-commerce technology. Compared to other forms of advertisements such as TV or print media advertisements, online advertisement is the cheapest. My innovation provides a functionality in which organizations can post their ads cheaply. Therefore, this innovation is also likely to be used in advertisement industry.

Other industries such as inventory management and supply chain management industries may also benefit from this innovation. This is because this innovation allows companies to keep records of their companies, manage their products, order new products and most importantly make payment for the new orders


The State of the Industry

a) The history of the industry

Food and beverage distribution industry is an extensive global network which is made of several sectors. There are the manufactures, the retailers, the suppliers, and the end consumers. The company is a standard distribution agency which will engage in the distribution and the imports of food and beverage products to local retailers. Therefore in this network, the organization acts as a supplier, and it plays a very crucial role in connecting the manufactures and the end consumers.

Food and beverage retailing business started as early as the 19th and 20th century and since then the industry has been growing exponentially. This growth has been credited to the fact that food and beverages are a significant human need. It is essential to know that industrialization caused a lot of changes in the distribution and production of food. In fact, the suppliers in the food and beverage distribution industry benefited the most from new innovations. The industrialization of food processing and the development of transportation played a major role in the growth of food and beverage distribution industry. New ways of preserving food and beve...

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XYZ Company Analysis. (2022, Mar 29). Retrieved from

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