Student ID Student Name

213823 Amani Khalil Alhosani

213194 Bakheeta Saeed Almansoori

213814 Muneera Saeed Almansoori

Cohort: Winter 2020

Course Name: Signature Learning Experience II

Instructor’s Name:

Semester: Winter 2020

Table of Contents

Introduce the Idea_____________________________________________________3

Technology, Design, & Novelty____________________________________________3

Freedom to Operate and IP Rights__________________________________________4

Secondary” Market Data________________________________________________4

Market Survey Research_________________________________________________6

Preferred Witness Research______________________________________________8

Revised Business Canvas________________________________________________8

Capturing Value______________________________________________________9

The Competitive Context________________________________________________10

Bargaining power of supplier__________________________________________________10

Bargaining power of buyers____________________________________________________10

Threat of substitutes_________________________________________________________11

The threat of new entrants____________________________________________________11

Existing competitor rivalry_____________________________________________________11

Business Structure____________________________________________________11

SLE-Assessment and Next Steps__________________________________________11

Reference__________________________________________________________13

Introduce the IdeaPeople often face issue in searching a relevant product online on a different e-commerce

platform (Shim & Kwon, 2016), this consumes time and results in poor customer satisfaction.

So, the selected service is online shopping advisor, the service will assist in offering value-added

suggestion from online advisor to purchase any item with enhanced quality”

The value proposition is that it will assist in resolving any queries or problem related to product

or service purchase. The platform will charge minimum fees for shopping advisor who will guide

the customer to get value-added products or services from a wide range of online availability.

Emirates Authority for Standardization & Metrology (ESMA) will support the online shopping

advisor platform to minimize any type of risk related to payment or delivery (ESMA, 2020)

The revenue stream will emphasize on offering service sales of online shopping advisor through

subscription or fees. Debit or credit card charge will be taken from a customer who will do

payment through online shopping advisor.

Technology, Design, & NoveltyThe service design will be based on virtual impairment through which online shopping advisor

will offer value-added suggestion or feedback about the products or services. Through online

portal complete review about specific products would be given by shopping advisor so that

customer would get enhanced shopping experience. AI technology will be used for developing

virtual assistance for customers so that they can interact with shopping advisor to buy any

products or services from different e-commerce platform or local stores. The AI technology will

support 24*7 assistance for customers by reflecting early adopter so that they can interact and

resolve any type of product or services related queries in an efficient time period.

This business idea along with AI implementation is a significant novel with other offerings as

there are minimum companies in Dubai who provide virtual shopping advisor. The AI

application will save the time of the user to buy any products without searching it on Google for

feedback by getting virtual support from shopping advisor within the UAE market.

Freedom to Operate and IP RightsThe business idea of online shopping advisor has Freedom to Operate with the support of

Emirates Authority for Standardization & Metrology (ESMA) to regulate service or

products sold in UAE. In this context, there is no issue of copyright or Intellectual Property IP as

there is a minimum business in Dubai that offer online shopping advisor services for customers

to buy from local outlets. AI design around should be maintained in virtual shopper advisor

business idea to establish a trustworthy platform related to personal customer details including

phone no, account no and address.

The business idea is protectable by getting certification from ESMA by maintaining quality

standards as per strategic one for offering highly efficient and effective advises about any

product customer desire. The regulation also protects the business idea from a legal perspective

by governing the certificate of regulated services of online shopping advisor in terms of offering

excellent customer services within the UAE. As per the IP protection strategy, the business will

follow a patent strategy in which the software of online shopping advisor will be registered under

UAE Federal Law (7) of 2002   ( Trade.Gov , 2020) .

This will protect the business idea from being stolen by other companies in UAE that will create

a barrier for competitors to enter in same operating market to offer excellent shopping advises to

customers through the online platform about local stores. This will assist in gaining competitive

advantage to business as other companies have to give the patent amount in terms of delivering

the same virtual assistance services by using integrated software in the local market of Dubai.

Secondary Market DataThe e-commerce industry had gained significant attention, particularly since the year 2017, when

it came to the fore surpassing 10% of all global retail sales. Currently, e-commerce represents a

$2.2 trillion market and is continuously increasing at an annual growth rate of 24%. This growth

rate is four times faster than the global retail sector. Digital adoption in shopping has become

evident with consumers shifting to online platforms creating a gradual advancement of the digital

ecosystem in media and e-commerce. Mass internet adoption started in the mid-2000 and has

been facilitated by smartphones and social media being underpinned by faster internet speeds.

This has resulted in the digital consumer phase and digital media phase. For instance, the Middle

East and North Africa e-commerce have a net worth of $8.3 billion, growing by an annual

percentage of 25% since 2014. Specifically, the United Arab Emirates (UAE) is one of the most

progressive e-commerce markets, revealing a penetration rate of 4.2% as Brazil and Turkey.

Shoppers in the United Arab Emirates spend as much per purchase as those in the US, UK, and

China, but their purchases are not as frequent. About 63% of shoppers in the UAE shop online,

while their frequency of purchase is 3-4 times annually (Sarkis et al., 2019)

While studying fashion in the year 2020, authors reported that despite the Middle East having an

already well-established fashion market and a strong mall culture, it still possesses great potential

for the fashion market. According to their findings, an average consumer in UAE spends over six

times compared to an average consumer in China. In the UAE population, 99% rely on social

media for shopping purposes. The Middle East’s Gulf Cooperation Council (GCC) has $50

billion annual sales. The expenditure in some GCC countries represents the highest on a per

capita basis at a global level. For instance, in the United Arab Emirates, an individual spends

about $1600 (UN, 2019).

In 2016, the retail sales in the UAE contributed 11.6% of the country’s economy. The non-food

retail sales represented more than 60% of the retail sales between 2013 and 2016, with retail food

sales growing at a rate of 3.1%. Operators in the UAE markets are also adapting to the shifting

consumer needs by engaging with their customers through digital technologies such as

Souq.com, which was acquired by Amazon (GCC, 2019).

Additionally, following a survey conducted by Mastercard in 2014, findings also revealed an

increasing trend for most consumers in the UAE to go online to meet their shopping needs. 50%

of the consumers reported that they use the internet for online shopping, and out of this

percentage, 80% indicated that they were delighted with shopping online. According to the

study, 75% of the respondents said they made at least one online purchase in the previous year.

Most consumers noted the following factors that sway their decision to purchase goods online;

website reputation, prices, payment facility security, and no extra charges for delivery

(Mastercard, 2014).

In a press release following a Mastercard study, 73% of UAE consumers have shifted to online

shopping since the start of the Covid-19 pandemic. The virtual shopping list based on this study

consisted of clothing (66%), groceries (73%), and healthcare (60%). It was noted that social

media had become a virtual platform that allows consumers to connect with online businesses

(Mastercard, 2020).

From the statistics, it is found that only 63% do online shopping while searching relevant

information about product or services in UAE (GMI, 2020). Thus, 37% of people would feel the

pain of searching and easting their time online as they are not able to get adequate information

about the product to make their purchasing decision.

The statistics highlight that online shopping advisor business idea would have the opportunity to

grab the attention of 50 to 60% adult who is above 30 years by suggesting them about products

as they have limited online shopping experience. Online feedback and suggestion will be

beneficial for recommending the specific item to customers as per their desire along with quality

expectation by shopping advisor within the minimum time period.

In the Covid 19 situation, people prefer more online shopping over physical outlets, so in this

situation, online shopping advisor will assist them in doing shopping without wasting time in

searching or quality issues. The market is high as many people face failure pressure or limited

time issue in shopping which will be solved by shopping advisor through virtual assistance on

24*7 basis to provide a valuable suggestion about products.

Market Survey ResearchThe respondents involved in the survey procedure highly engaged with online shopping facilities

which usually collect products through online channels. The online shoppers mostly interact

with the customers through telephonic conversation, which is observed through the survey with

20 respondents. The organizational skills of the online shopper advisor treated as efficient to

attract the customers.

Presence of communication skills amongst the online shopper

highly influenced the interaction and relation between

customers and o line shoppers. 35% of the respondents have

purchased their products with the support from online shopper

advisor by processing the orders.

The survey respondents also admire that the online shopper

advisors guided the customer to get effective knowledge

over the products before buying. Most of the customers

during the survey admires that the presence of online

shopper advisor has supported or influenced greater fashion sense amongst the customers. In

addition, online shopper advisor also supports the customers to save their time while buying a

product and also supports in purchasing product at a cheaper rate.

Preferred Witness ResearchFor the market review, an interview with an experienced online shopper advisor has been taken

under consideration. The online shopper advisor has been asked to signify the way in which they

fulfil their role to attract the customers. The online shopper advisor revealed that they are

focusing on providing assistance to the customers who are looking for quality products.

While asking about their role, it is found that recommending products to customers and

developing relationships with customers are the major factor considered by online shopper

advisor. The online shopper advisor also asked about their daily practices which found that they

relay order information to the customers and also provide in-store and online support. The

online shoppers are using company recognized device to suggest selected items to customers and

also allow replacement options for them.

In the case of packaging, online shoppers are also engaged in packing orders for the customers,

which was observed through the interview session. In terms of delivery, the online shopper

advisor reveals that they are not engaged in delivery products but also worked in-store to attract

more margin of customers.

Revised Business CanvasThe Teece Model emphasises on two aspects, i.e., complementary, and imitability assets that

assist in determining the profitability a business would get from its innovation (Teece, 2018).

The online shopping advisor fills its complementary asset as they have a key partnership with

manufacturing companies, platform developer and ESMA that develop their distribution channel

over social media like Twitter, Facebook and Instagram.

The marketing capabilities are enhanced as they use both online and offline platform like social

media and word of mouth to promote their online shopping advisor services in Dubai. In this

context, the key activities have been changed in the business model canvas as it will include

suggestion along with payment features by associating AI interface technology

This will improve customer relationship as per Teece Model by developing a trustworthy

platform to offer enhanced product or service review so that customers could buy it without

wasting time in Google or other search engine surfing. Imitability will be high as per Teece

Model in which online shopping advisor will follow a patient strategy of copyright so that no one

will use it for developing revenue stream by associating company’s products. In this context, the

cost structure of the business model canvas would be change by associating patient amount that

should be given to ESMA authorities to avoid any legal IP issues within UAE

Capturing ValueThe revenue model will illustrate the sources along with types of revenue that the business will

generate in terms of gaining sustainable growth (Bednar, Tariskova, & Zagorsek, 2018). The

online shopping advisor business model is presented that will reflect the movement of products,

services and money in Dubai at the initial stage.

The transaction revenue will associate fess that is to be paid for the services that customers will

get, but the online platform accessibility will be free of cost. The subscription from other

companies’ charges will generate revenue by offering services which cost will be fixed for all

customers within UAE. Marketing different company’s product by shopping advisors on the

online platform will assist in generating revenue along with reflecting its value proposition. The

license or patient fees that are to be given by online shopping advisor firm by other companies

will assist in developing revenue stream along with enhancing brand identity within the local

market of UAE.

The Competitive Context

Bargaining power of supplier

Supplier power is low as manufacturing companies will be able to enhance their sales through

online shopping advisor towards their products or service consumption. The uniqueness of

suppliers in terms of different product quality and affordability will influence online advisor to

suggest their product to customers by reflecting their high bargaining approach

Bargaining power of buyers

It is low as they will be able to get valuable suggestion about specific products which has

positive feedback from online shopping expertise. Price and quality assurance gave by online

shopping advisor platform attract the attention of adults to avail this in terms of saving time

along with getting satisfactory shopping experience

Threat of substitutes

The threat of substitution is low for virtual assistance shopping advisor as people prefer more

online shopping in Covid 19 situation for minimising the risk of disease transmission going

through physical outlets.

The threat of new entrants

The threat of new entrants is high as online shopping advisor business idea has enhanced

opportunity in UAE in terms of attracting customers to get valuable products at an affordable

price in minimum time.

Existing competitor rivalry

The presence of existing rivals in international markets like Amazon and Woolworth will reflect

the competition for online shopping advisor platform to sustain and offer value-added services to

clients.

Business StructureSole proprietorship business structure will be followed by online shopping advisor who will be

first launched in Dubai then throughout UAE. The business will get capital from bank loan

which will be returned after years of business setup with the addition of interest on it. The asset

of business structure will be protected in the sole proprietorship business structure in which the

owner will have full responsibility of taking a decision on company behalf.

In this situation, if the business fails or succeed, then the owner will take whole responsibility as

there are no stakeholders associated with sole owner profit or loss aspect.

SLE-Assessment and Next StepsThe assumption associated with online shopping advisor business is that it will attract potential

customers to get an enhanced buying experience that will assist in revenue flow. The patient and

company fees have changed the business ideas as it will include in cost structure which may

increase total cost required for online shopping advisor business setup in UAE

The gap reflects the lack of database knowledge in terms of developing online shopping advisor

platform. The advantage lies in support of ESMA along with the new business idea in Dubai to

start with minimum risk of the competitor value proposition.

In the overall study, development of business model canvas and structure has been leant to start a

new business venture by having all insight information about revenue stream, cost structure,

value proposition, key activities etc.

ReferenceBednar, R., Tariskova, N., & Zagorsek, B. (2018). Startup revenue model failures. . Montenegrin

Journal of Economics, 14(4), 141-157.

ESMA. (2020). About Us. Retrieved December 15, 2020, from https://www.esma.gov.ae/en-us

GMI. (2020). UAE Ecommerce Market Trends & Development Platforms (2018). Retrieved

December 15, 2020, from

https://www.globalmediainsight.com/blog/uae-ecommerce-statistics/#:~:text=Based%20on

%20the%20latest%20ecommerce,the%20UAE%20stands%20at%2099%25.&text=Out%20of

%20this%20total%20number,actually%20made%20a%20purchase%20online.

Shim, S., & Kwon, W. (2016). Online flow: Effects of perceived challenges measured before and

after a shopping task. Fashion, Industry and Education, 14(1), 10-17.

Teece, D. (2018). Business models and dynamic capabilities. Long range planning, 51(1), 40-49.

Trade.Gov. (2020). Protecting Intellectual Property. Retrieved December 15, 2020, from

https://www.trade.gov/knowledge-product/united-arab-emirates-protecting-intellectual-property

Sales, J., Martí, J., Marín, R., Cervera, E., & Sanz, P. (2016). comparable: the shopping cart

assistance robot. International Journal of Distributed Sensor Networks, 12(2), 4781280, DOi:

10.1155/2016/4781280.

Stangl, A., Kothari, E., Jain, S., Yeh, T., Grauman, K., & Gurari, D. (2018). Browsewithme: An

online clothes shopping assistant for people with visual impairments. In Proceedings of the 20th

International ACM SIGACCESS Conference on Computers and Accessibility, 1(1), 107-118,

DOI: 10.1145/3234695.3236337.

GCC. (2019). GCC Retail Industry.

Mastercard. (2014). UAE consumers top the list of online shoppers in the Middle East.

Mastercard. (2020). 73% of UAE Consumers are Shopping More Online Since the Start of the

Pandemic.

Sarkis, C., Dhall, T., & Ghorra, J. (2019). E-Commerce in MENA-Opportunity Beyond the Hype.

United Nations, Population Division, World Population Prospects 2019. Includes India,

Southeast Asia, Brazil, Russia, UAE, and Saudi Arabia