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