NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 04 | Airway Delivery: A New Business Opportunity

Submission BCS

complete solution

Submission Date & Time: 2022-01-10 11:55:36

Event Name: NMO S4 Sprint One - GIMS Greater Noida

Solution Submitted By: Mohit Kumar

Assignment Taken

AIRWAY DELIVERY: A NEW BUSINESS OPPORTUNITY

Case Understanding

Airway is a courier company with operations across India in multiple cities and reach to almost across India. Company is currently considering to venture into Hyper Delivery Local space where in the delivery will be done using a drone which will have Beyond Visual Line of Sight(BVLOS) functionality. This is to present the business plan keeping in mind the Break-even of the Business, Brand Establishment and Innovation in processes and product to become Market leader. ‘on-demand’ near me delivery model It offers both convenience and efficiency as USPs to the seller and buyer. The service ambit of this model is supposedly within few tens of kilometers from the location of business. Given the very focused geographic spread, the local sellers are guaranteed visibility and customers are guaranteed speedy delivery from their trusted stores. Airway Delivery has chosen the mode of delivery as drones, which brings in some potential challenges on the forefront.

BCS Solution Summary

Airway is established courier company and is planning to venture into Hyperlocal deliver space wherein the delivery will be done with the help of a drone that will have Beyound the visual Line of SSight (BVLOS) functionality. All the required permissions and licenses to operate the drone are obtained by the company from DGCA (Director General of Civil Aviation). Beta testing has also been done successfully for initial participants which included food delivery companies, Pharma Chains & Internal Local deliveries. At the same time, there are various more industries and business avenues that can be explored to expand.

Solution

Operations 

´We will be implementing a aggregator model wherein we will be connecting the customers and the sellers.

´ This will be a hybrid model with B2B as well as B2C. The operations will ensure the security of the consignment. The operations will commence in Hyderabad owing to its huge traffic issues and that will be a good market to start with and has huge potential for growth due to availability of good skilled manpower and IT infrastructure.

´Value chain

´order placed by the customer on our platform/App

´Details of the order will be sent to client/partner sellers

´Drone will reach the client/ partner seller

´The client/partner seller will load the consigment/courier/parcel on the drone

´Drone will take of and proceed for delivery location

´An OTP will be sent to customer for security verification

´Verification of OTP and Landing of drone at delivery location

´Unloading by customer Advanced Software: This works on a centralized cloudbased flight planner. The end – to – end drone operations and management system that has been purchased by Airway Delivery @ 25 Lacs INR is an asset that will make the services offered stand out in the market.  Features of software - Onboard software helps to understand the surroundings in real time. - The software can manage and avoid collisions in real time - Anti-theft feature, with multiple navigation system - The cloud information about restricted airspaces, weather changes etc. - End customer tracking from Order – Pack – Flight – Deliver - Soft landing of the drones with secure delivery assisted by an OTP. Advanced drone features – EV drones with Backup battery and motors for redundancies.  Insured deliveries: Insurance to protect value of the order, providing Inspections. Tie up with companies that are offering courier insurance. This coverage provides protection against loss, theft or damage for goods in transit.

Finance and Pricing

´Surge Pricing - Since we currently have only few drones, there are high chances that we can have high order traffic after few months of operations. This surge pricing will help in additional revenue and profits as well and manage the supply - demand gap optimally.  

Marketing Plan

´Marketing will be a big part of growth and expansion as we are relatively a new brand and build a good brand image and high visibility wil be a challenge in this courier and delivery space. We will have to market upon our USPs which is fast delivery, safe delivery (due to OTP and other security measures), Insurance (Insurance on deliveries if damaged, lost or misplaced) and a strong App platform and customer focused support and operations.
´Marketing will be a big part of growth and expansion as we are relatively a new brand and build a good brand image and high visibility wil be a challenge in this courier and delivery space. We will have to market upon our USPs which is fast delivery, safe delivery , Insurance and a strong App platform and customer focused support and operations. Brand Building is an important part of Marketing and it will be done in 4 phases. Broadcasting marketing campaigns of services to be started now.- Mass Campaign content / SEO / Referral / Paid promotions - Customer feedback & close looping surveys for customer retention - Planning for launch of Long-Range drones – emergency sites, remote location. We keep repeating the trails and finetuning for business development and long-term customer retention.

Information Technology

´The team will have software management, technical as well as analytical competency.

´The team will be initially be building 3 software's.

´1. AI powered drone delivery management

´2. Mangament Information System

´3. Business interfaces: customer app, agent app and manager app

´1. AI Powered Drone Delivery Management System

´2. MIS System which can efficiently for following processes :
CRM: To Manage Customer Data,
Maintain records of total orders received,
total orders shipped, total orders returned and total orders cancelled and payment and Reimbursement Logistics & Warehouse management

´3. Supply Chain Management4. Business Interfaces: Customer App, Agent App, Manager App

 

Conclusion
The breakeven point is 1117 Rs per drone per day and Marketing strategy for effective brand building has been planned.

Comments





Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 04 | Airway Delivery: A New Business Opportunity
Type: Case Study
Stream: Management

Tags: developing a business case for drone services, business case, scenario analysis, business case solution, drone services, management learning, public business case, business case example and solution, business case structure, management olympiad, management competition, business case competition, case study competition, virtual company, business simulation, online management competition, drone delivery

Participant

Mohit Kumar

Leadership





Ace in the hole - GIMS

Total Team Points: 0















The Collective - GIMS

Total Team Points: 0



The Forerunners - GIMS

Total Team Points: 7000







Team Phoenix - GIMS

Total Team Points: 0



Fantastic Five - GIMS

Total Team Points: 0