Group4spark-BlueOceanStrategy

Blue Ocean StrategyCASE STUDY: QUICK DELIVERYMandyn Group 4: Spark Chua, Kathy Go, Shirley Lopez, Jennie Sotomil, James 14 June 2010

Image source: www.quickdelivery.com.ph

Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil

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Table of ContentsBlue Ocean Strategy!............................................................................................4Introduction to the Theory!...........................................................................................................4 Introduction to the Case Study! ....................................................................................................5

Quick Delivery! .......................................................................................................6Company Prole! ..........................................................................................................................6 Summary of Interview! ..................................................................................................................6

Examining Quick Delivery as an Example of the Blue Ocean Strategy! ...........7Value Innovation:!........................................................................................................................7

Analytical Tools and Frameworks!.......................................................................8Strategy Canvas! ..........................................................................................................................8 Three Characteristics of a Good Strategy!................................................................................10 Four Actions Framework!...........................................................................................................11

Reconstructing Market Boundaries!..................................................................14Six Paths Framework!................................................................................................................14Path 1: Look Across Alternative Industries. Path 2: Look Across Strategic Groups Path 3: Look Across Chain of Buyers Path 4: Look Across Complementary Product and Service Offerings Path 5: Look Across Functional or Emotional Appeal to Buyers Path 6: Look Across Time

Reach Beyond Existing Demand!..............................................................................................16 Sequence of a Blue Ocean!.......................................................................................................17 Overcoming Organizational Hurdles! .........................................................................................18 Barriers to Imitation! ...................................................................................................................18 Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil Page 2 of 29

Continuous innovation Exclusivity with partner restaurants Setting up wide-spread and efcient networks of service coverage Strong but partner-appealing advertising Building loyal clientele

Keys to Success!.......................................................................................................................19Acting Swiftly Streamlining Operations Organizing a Payment Scheme Utilizing Technology Reducing Chances of Failure

Critical Analysis & Recommendation!...............................................................20 Conclusion!..........................................................................................................21 Appendices!.........................................................................................................22Appendix A: Quick Delivery Website!........................................................................................22 Appendix B: Interview!...............................................................................................................23Inspiration to start the business Start-Up of Quick Delivery Target Market Support Staff, Restaurants, Delivery Centers Future of Quick Delivery On Innovation On Competition

Appendix C: Jollibee Menu!.......................................................................................................26 Appendix D: Italiannis Menu!....................................................................................................27 Appendix E: Other Home Delivery Services!.............................................................................28 Appendix F: SWOT Analysis for Quick Delivery!.......................................................................29


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Blue Ocean StrategyINTRODUCTION TO THE THEORYBlue Ocean Strategy is a book written by W. Chan Kim and Renee Mauborgne. It is based on fifteen years of research and articles written by the authors for Harvard Business Review1. Authors Kim and Mauborgne divided the market universe into two areas. Red Oceans are areas where current industries where companiesImage source: www.mcgraw-hill.co.uk

battle for supremacy. This ocean is described as an overcrowded battlefield full of cutthroat competition. Blue Oceans on the other hand are unexplored market spaces. Pioneering in the newly created

industry allows the company unprecedented success and makes their competition irrelevant2. The book revolves around the concept of Value Innovation. The authors propose that by creating a leap in value, companies can reap the benefits of being in a blue ocean 3. Value Innovation is made by careful combining new technology or service with reasonable cost and utility. A fine line must be trod between the being at bleeding-edge of technology and subscribing to a pure costleadership strategy. Blue Ocean Strategy is divided into three major sections. The first part talks about the key concepts in the book such as Value Innovation as well as analytical tools and frameworks like the strategy canvas and four actions framework. The second part discusses the formulation of the Blue Ocean Strategy. This segment includes guidelines such as the six paths framework where companies are encouraged to look across

1

W. Chan Kim, Renee Maubourgne , Blue Ocean Strategy, Harvard Business School Papers,

2005, preface.2 Ibid., p.4 3 Ibid., pp. 12-13


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alternative industries, strategic groups within industries, chain of buyers, complementary products and service offerings, functional and emotional appeal to buyers and time or trends4 . The authors also encourage visualizing strategy instead of being mired in numbers and other operational details.5 Under Focusing on the Big Picture, they demonstrate how to visualize the strategy canvas, and outline the four steps of visualizing strategy. This part of the book also gives guidelines on how to reach beyond the companys existing market as well as the right sequence for executing the Blue Ocean Strategy. The last part of the book explores overcoming key organizational hurdles and leadership tactics. These involve winning over key people in the company to support the new strategy. Kim and Mauborgne discuss concepts such as tipping point leadership and organizational risk6 . They also talk about fair process7 and how to deal with employees attitudes and behavior. The authors end the book with their ideas on the sustainability and renewal of blue ocean strategies.

INTRODUCTION TO THE CASE STUDYThe group decided to train their focus on a new home-delivery service in the Philippines. Launched in November 2009, Quick Delivery is the pioneer for multi-restaurant delivery in the Philippines. The purpose of this case study is present Quick Delivery as an example of creating a blue ocean in the saturated market of the food-service industry. Barely a year into their operations, the company is understandably reluctant to release specific information such as the number of individual clients, total market share, profits or their particular process of operation. With new company hot on its tails, Quick Delivery is at a stage where such a leak of information may be detrimental to their business. This reluctance resonates with the Blue Ocean Strategys segment regarding barriers to imitation. Quick Deliverys President, Mr. Jin Gonzalez, was gracious enough to allow the authors to interview him over the phone about his inspirations and views of the newly launched industry. By answering questions based on the book, the group was able to gather valuable insight on how the

4 Ibid., pp. 47-79 5 Ibid., p. 82 6 Ibid., pp. 148-169 7 Ibid., p. 174


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company started and a general description of its operations. This research paper is based largely on the aforementioned interview, research on the industry as well as the personal experiences of the authors with both local and foreign food delivery services.

Quick DeliveryCOMPANY PROFILEAccording to the Quick Delivery website, the company is in the service of delivering food, beverages and other items such as DVDs to residents of Metro Manila.8Image source: www.quickdelivery.com.ph

They provide a wide range of selection via partner restaurants and auxiliary suppliers. To date, they have over sixty establishments, one hundred varieties of wine and liquors, twenty-four types of soft drinks and chips, twelve types of popcorn and approximately six hundred titles of DVDs. Since the groups presentation a week before the submission of this report, Quick Delivery has signed on an additional twenty-four restaurants. In addition to home-delivery, they cater to corporate events and other social gatherings. By allowing clients to order in advance, they have also opened up the avenue for a different type of catering. Their services run seven days a week and orders are taken between 10:00 am and 10:30 pm. Orders can be placed through their website, hotline and short message services (sms).

SUMMARY OF INTERVIEWPlease see APPENDIX B for notes of the second interview

Mr. Gonzales is a graduate of the Asian Institute for Management. He is in his late-30s and started his entrepreneurial career when he was sixteen. Before launching Quick Delivery, he had already started nine other businesses.

8 www.quickdelivery.ph/delivery_about_us.php


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The initial inspiration for Quick Delivery in the Philippines came from a National Geographic episode on home delivery services in Korea. Acting swiftly, Mr. Gonzalez rallied his friends, family and business contacts behind the launch of Quick Delivery. It took less than six months from the eureka! moment until the first day of operations. Mr. Gonzalez discussed how money is not as important as contacts when starting up any business. By setting up a highly efficient and extremely lean group to handle the call center, logistics and advertising Quick Delivery managed to attract popular restaurants such as Italiannis, T.G.I. Fridays, Fish & Co. among others. In lieu of the restaurants ten percent (10%) service charge for dine-in customers, Quick Delivery instead charges the same amount for their service. The company works on an account basis with each of their partner restaurants to ensure smoother business transactions. Mr. Gonzalez believes that the key to their success lies in their entrepreneurial spirit and the relentless pursuit of innovation. He is convinced that much time is wasted on studying the competition; instead, he and his team strive to be at the forefront of the industry making their rivals irrelevant.

Examining Quick Delivery as an Example of the Blue Ocean StrategyVALUE INNOVATION:Value innovation is the simultaneous pursuit of differentiation and low cost. It is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. Cost savings are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. 9

9 Ibid., pp.16-18.


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For Quick Delivery, cost savings on the part of customers would come from the following: nonincurrence of transportation/fuel cost, parking fees and restaurant service charge. Time saved from having to visit restaurants could also be spent on more important things. In terms of buyer value, Quick Delivery offers a variety of food choices, convenient dine-at-home experience, and comfort. The cost savings and buyer value created by Quick Delivery is reminiscent of the view that market boundaries and structure of the food industry can be reconstructed by the beliefs and actions of the industry players.

Analytical Tools and FrameworksSTRATEGY CANVASBlue Ocean Strategy defines the strategy canvas as both a diagnostic and action framework for building a powerful strategy. It captures how the known market space the red ocean behaves. It allows one to understand where the competition is currently investing, the factors the industry currently competes on in products, service, delivery and what customers receive from the existing competitive offerings of the market 10 The X-axis plots the factors where the industry vies for market share. The Y-axis assigns the value, either high or low, placed by the buyer on the service.11 For Quick Delivery group considered the following factors:

Delivery Time Frame - How long does each delivery take from the time ordered to arrival? Service Area Covered - How large is the geographic area a particular service covers? Payment Options - Do the establishments accept both cash, credit and debit cards? Minimum Order - What is the minimum amount demanded by the service to meet delivery requirements without surcharge? Restaurant Dining Experience - What kind of ambiance will the recipient experience with each service?

10 Ibid., p. 25 11 Ibid., p. 25


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Advance Order Call - Can the customer order food in advance? Catering - Does the service have provisions for catering? Variety of Menu - How varied are the selections from each service? Ordering from Multiple Sources - Can the buyer order from more than one restaurant? Complementary Products - Can the buyer order non-food items from the service?

CategoryDelivery Time Frame

Fast Food Delivery30 - 45 minutes

Dine InApprox. 5 - 20 minutes

Quick Delivery30 minutes to 1 hour

Service Area Covered Within a few kilometer radius from where a delivery outlet is located (many chains are present nationwide)

Only possible within restaurant facility

Approximately 100 locations within Metro Manila.

Payment Options

Cash, some credit card

Cash, some credit card

Cash, Credit and Debit Card

Minimum Order

Usually Php 200

None

Between Php 300 - Php 1000, depending on the restaurant


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CategoryRestaurant Dining Experience Advanced Order Call

Fast Food DeliveryNo

Dine InYes

Quick DeliveryNo

Some

Some

Yes

Catering Variety of Menu

Some Approximately 50 items (please see Appendix C for sample Jollibee Menu)

Some Approximately 70 items (Please see Appendix C for sample Italiannis Menu)

Yes To date, approximately 4,000 (gure derived from approximate number of menu items per restaurant multiplied by the number of partner restaurants)

Ordering from Multiple Sources Complementary Products

No

No

Yes

No

No

Yes

THREE CHARACTERISTICS OF A GOOD STRATEGYA good strategy has three characteristics: Focus, Divergence, and Compelling Tagline12 . All these characteristics are present in Quick Delivery as shown in its Strategy Canvas. In order to set Quick Delivery apart from restaurant dine in and fast food delivery, the business offered what the other two could not or hardly can: variety of menu, ordering from multiple restaurants, and complementary products. Instead of benchmarking competitors and trying to outdo them, Quick Delivery opted to consider factors that would allow the business to open up an uncontested market space. Quick Delivery focuses on the A and B segments of the market. These segments, aside from having strong purchasing power, have a strong presence in metropolitan areas of the country. In terms of divergence, Quick Delivery offers complementary products - wine could be delivered along with food, and popcorn with DVDs. As for the compelling tagline, the business creative of wordplay is highly noticeable in: Quick Delivery two any one. The tagline not only aids in the delivery hotline recall (2121212) but also stresses that the companys services is for everyone.

12

Ibid., p. 39 Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil

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FOUR ACTIONS FRAMEWORKValue innovation is at the core of Quick Delivery business. As a Blue Ocean Strategy, four questions depicted in the four actions framework need to be addressed. According to the book, the questions that need to be answered are the following:13 Which factors should be created that the food service industry has never offered? Which of the factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industrys standard to add value and minimize risk? Which factors should be raised well above the current practices?

Chart sourced from Kim, Mauborgne, Blue Oceans Strategy, p. 29

Eliminate, Reduce, Raise, Create Grid The Eliminate-Reduce-Raise-Create Grid is a supplementary analytic tool answering the questions raised in the four actions framework.

13

Ibid., p 29. Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil

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The figure below shows the grid for Quick Delivery Services. Eliminate Time and effort calling many restaurants concessions from partner restaurants Cost of delivery by streamlining operations and getting Catering services Payment options Service Area covered

Raise Home dining experience

Reduce Time Costs to customer and partner restaurants

Create New level of food delivery service: Order from wide range of choices of restaurants and menu for delivery at home Delivery of complementary products such as DVD and wine.

Details of the dierent strategies to address the above concerns are the following: Strategy 1: Eliminate

Quick Delivery caters to a number of restaurants and food chains. This eliminates the effort and the time spent on calling different restaurants as customers can order from them with only one call.Strategy 2: Reduce Time and Costs

As Quick Delivery provides food delivery service to its customers, time spent in driving toward their destination restaurant as well as in parking is reduced.Delivery Costs

Ordering food through delivery reduces costs associated with customers having to buy food by themselves. This includes cost of gasoline and possible parking fees. As a benefit to customers, delivery and service charge is also reduced to ten percent (10%) of total cost of food ordered. This hinges on Quick Deliverys strategy of allowing customer to order from different restaurants at one time. For partner restaurants, this reduces delivery costs as well.


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Strategy 3: Raise Home Dining Experience

Quick Delivery offers their clients a heightened home dining experience. Customers are given wide array of choices of food to choose from and where to buy to suit their theme, taste and even budget. Customers are no longer limited to fast food choices but can now choose from middlepriced range restaurants to high-priced ranged fine dining restaurants.Catering Services

Quick Delivery also offers catering services. They cater to different occasions and to different event venues.Payment Op;ons

Customers are given flexibility in paying for their meals. They can pay through cash or credit card. Although this feature is now available with other delivery services of fast food chains and restaurants, payment option of Quick Delivery is applicable to all orders in any point of area covered.Service Area Covered

Quick Delivery serves customers from several areas in Metro Manila. Because its target customers are limited to upper class to upper middle class as well as to the corporate clientele, service area is focused on areas where target customers are massively located. In terms of zoning, Quick Delivery does not limit its capacity to deliver based on zones. Fast food delivery services such as those of Jollibees take orders for delivery based on zones. This minimizes delivery cost, at the same time, ensure that food delivered meet quality standard. However, one of the disadvantages of this is that delivery may be limited to the availability of ordered food from that particular branch, or if the branch already closed for the day.Strategy 4: Create

New level of food delivery service

Initially, delivery service of food chains and restaurants complements their dine-in facility. This strategy allows them to broaden the market by capturing those who cannot go to their restaurants to dine-in or buy take-out food.Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil Page 13 of 29

Quick Delivery is creating a new meaning to food delivery service, wherein delivery is the core of the business. It also heightens the level of the delivery industry as customers are given a wide range of food choice from different restaurants. Delivery of fast food chains and restaurants such as Jollibee and McDonalds are limited to their own line of menu. In Quick Delivery, customers may order for delivery of food in combination from different restaurants so long as they meet the minimum amount of order for each. In addition, to complete their dining experience, they may order for DVDs and wine.

Reconstructing Market BoundariesSIX PATHS FRAMEWORKQuick Deliverys strategy traversed market boundaries that dene red oceans.

Path 1: Look Across Alternative Industries. Food service industry that operates within the red ocean includes fast food chains and restaurants that offer dine-in, take-out, and delivery services. Quick Delivery, on the other hand, delivers food from high-end restaurants and other complementary products such as DVD to customer. Though Quick Delivery provides the same objective, which is to bring food to customers, it serves a distinct function: It allows customers to dine quality food in their own time and where they want. Path 2: Look Across Strategic Groups Strategic groups look at success and growth based on sales and market share because of price and performance. They prioritize sales and market share. Meanwhile, Quick Delivery focuses more on expanding business through focusing on the needs of customers that it serves. Path 3: Look Across Chain of Buyers Chain of buyers was referred to as buyer who are directly or indirectly involved in buying decision. This includes the purchaser who pay for the product or service, and the actual user, who may also be the influencer.


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Fast food chains and restaurants have their own target market depending on their products offered. Fast food chains typically target consumers on a budget, on the go, and families. On the other hand, restaurants target family, couples, and friends. Their strategy may also be different in terms of price. Path 4: Look Across Complementary Product and Service Offerings In a blue ocean, one should look beyond what product they offer and how they compete with rivals. In addition, they should also look into untapped value by offering customers total solution when they choose a product or services through complementary products and services. Quick Delivery complements its service in many ways. First, it offers its customers a one-stopshop kind of delivery service. Customers call for their order, even number of orders from different restaurants, at one time. This saves them time of calling and ordering from each one of them. This also gives them a wide range of options. Second, Quick Delivery also offers other products such as wine and DVD to complement dining, and viewing pleasures of the customers. This saves customers time, money and effort. Path 5: Look Across Functional or Emotional Appeal to Buyers Some industries compete with each other benchmarking on functional utility alone. Meanwhile, some industries compete largely based on emotional appeal. In Metro Manila, most food chains and restaurants appeal to the emotions of customers. Target customers would be children, family and friends. This hinges on Filipino culture and values placing high importance on family and being together. Quick Delivery infuses both emotional and functional appeal in its service. It appeals to feelings of customers as delivery promotes home dining together with family or friends. However, delivery service is also functional as it strips away the cost of eating out, or having to cook your own meal. Similarly, it also saves its customers time of preparing, going to restaurants, etc. In addition, Quick Delivery offers are based on the kind of products that clients would prefer regardless of price. Path 6: Look Across Time A look across time was defined by __ as looking from the value a market delivers today to the value it might deliver tomorrow. It talks about finding insight in trends that are observable today.Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil Page 15 of 29

For Quick Delivery, this means looking at eating patterns and even lifestyle of middle class to upper middle class and benchmarking on them. Food delivery service and ordering online hinged on current eating and buying pattern of target consumers. Eating patterns of A-C class has evolved over time. There is now higher preference for take-out or delivered food that saves them time and effort. A wide array of choices is also a plus considering the preference for variety. Use of technology has also a big impact on buying practices of consumer. They use Internet to choose and even buy for their needs and wants.

REACH BEYOND EXISTING DEMANDAn important principle of Blue Ocean Strategy is to expand their customer based and not merely focusing on existing customers. Reaching across non-customers maximizes the size of their blue ocean 14. There are three (3) tiers of noncustomers that can be transformed into customers of Quick Delivery. First tier of non-customer refer to customers who regularly eat at restaurants but does not know of their delivery service or rarely order through delivery services. There is great growth potential with first tier of non-customers. If offered leap in value, not only would they stay, but frequency of purchases would also increase resulting to higher demand. Second tier of non-customers are the people who refuse to use the industrys offerings. For Quick Delivery, this refers to customers who do not regularly patronize high-end restaurants and who would prefer to go for the dining experience. Third tier of non-customers are those farthest from Quick Deliverys market. They are the markets that cannot afford to eat at high-end restaurants

14

Ibid., p 102. Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil

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SEQUENCE OF A BLUE OCEANStrategic sequence validates blue ocean ideas to ensure their commercial viability. This starts with buyer utility, price, cost, and adoption.15 Buyer utility ensures that there is buyer utility in the business idea. For Quick Delivery, buyer utility is ensured by serving target customers with their choice of food from their preferred partner restaurant. Because there is wide array of choices, the company can cater to different needs and wants of their clientele. Price, on the other hand, sets strategic price, which is accessible to the mass of buyers. Price of food depends on which restaurant the customers will order. Because of this, the customers can choose from wide array of choices based on their budget. Cost secures the profit side. It sets a target cost which will allow the company to operate, as well as earn a healthy profit margin. Quick Delivery focuses more on the logistics. To cut on costs, it outsources some of the processes. It has also streamlined to keep operating costs at the minimum. Meanwhile, last in the sequence seeks to address adoption hurdles. In rolling out the business idea, Quick Delivery must warm potential partners to the idea of a third party delivering it products. This is particularly true for those who already have their own delivery service. What makes Quick Delivery appeal to them is that the partnership could reduce the cost of maintaining their own delivery service. As Quick Delivery has exhibited a positive response all these questions, it is therefore a commercially viable Blue Ocean idea.15 Ibid., p.118 Blue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, SotomilSource: Kim, Mauborgne, Blue Oceans Strategy, p. 118

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OVERCOMING ORGANIZATIONAL HURDLESIn putting up the business, Quick Delivery has to overcome several obstacles. One of which is cognitive. In the Philippines, the current practice of restaurants is to have their own delivery service to complement their service. Quick delivery has to challenge that status quo, by being a third party to offer that service, hence lower the cost for the partner restaurant. Another hurdle in setting up the business is in the side of motivation. How could Quick Delivery motivate its employees to shift to a blue ocean? Luckily for Quick Delivery, they put together the team after formulating the idea. This action dispensed the threat of having unmotivated, or resistant staff. By maintaining an aura of excitement in the company, newer innovations are easily adapted. Lastly, but seemingly the most important is the limited resources. To overcome this hurdle, the company streamlined on its operations, and hinged partly on outsourcing some of its logistical operations.

BARRIERS TO IMITATIONBlue Ocean Strategy is a very dynamic activity. Once the company who made the leap to this strategy been able to capture the market and proved profitable, imitators will start to appear. The question is how soon the competitors can catch up with the strategy. In addition, when this happens, when should the company formulate another blue ocean to maintain sustainability and renewal of strategy? Being the first to enter the Blue Ocean carries with it the shields to protect the company from its imitators. Below are the identified barriers to imitation for Quick Delivery. Continuous innovation On the first week of June 2010, the company introduced its new segment on delivery service for DVDs and popcorn. Based on the interview conducted with Mr. Gonzalez, this year will be a boom year for the company, as they will launch additions to the delivery service line. The fast and continuous innovation of Quick Delivery will make it hard for imitators to catch up with their own operations.


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Exclusivity with partner restaurants Quick Delivery was able to lock in delivery service from the restaurants they serve exclusively to them. Thus, no other upcoming delivery service can serve for the restaurants they are dealing with. Setting up wide-spread and efcient networks of service coverage Mr. Gonzalez and his partners have been successful coming up with a strong communication and logistics framework for the company. Tapping contacts on outsourced call centers and delivery agencies. This also forms part of the streamlined cost management, as they are not maintaining fixed salaried employees. Strong but partner-appealing advertising Their advertisement online appeals strongly in a way that customers have a recall of the companys contact number, which is two any one is taken from their telephone number 2121212. Building loyal clientele When you visit the website of the company, you will be able to spot the rewards program that the company offers. This encourages frequent delivery from the partner restaurants of Quick Delivery.

KEYS TO SUCCESSActing Swiftly Concept to operation in less than six months Quick Delivery capitalized in connections, friends and family friends, to earn restaurant service exclusivity, call center and logistics, thus, they were able to put up the business in a short period of time. Streamlining Operations Use a mix of in and outsourced services for call-center and delivery To rationalize expenses, they made the most out of outsourced services to minimize commitments to fixed expenses.


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Organizing a Payment Scheme Set up accounts with partner restaurants for more secure financial operations The modes of payment can be made through cash or mobile credit card. Utilizing Technology Web, Mobile & Landline access Orders can be made through online facility, text message and cell phone or landline calls. The ease of ordering to Quick Delivery made the process convenient for the customers. Reducing Chances of Failure Keep database of IP addresses, mobile numbers to deter prank callers - The system they are working with can detect the IP addresses of those who order online and mobile numbers to determine prank callers. To date, no prank calls have been encountered by the company.

Critical Analysis & RecommendationWebsite can be difficult to navigate The website still needs to work on an interface that will make it easy for clients to order from multiple sources and calculate their orders in one tab. Currently, orders are taken per individual restaurant or service. To combine two or more services, it is often easier to call the hotline, which can deter potential clients. Services currently limited to food, drinks and DVD delivery The company can explore partnerships with Rustans Fresh and Santis Delicatessen for on-line grocery shopping and delivery; Office Warehouse, National Bookstore or PowerBooks for stationery supplies and reading materials. Limited to Metro Manila The Company can look into expanding or franchising into other major cities such as Cebu and Davao as these also represent an untapped profitable market. Expansion plans can include other English-speaking countries. Reputation for being expensive The brands that Quick Delivery carry creates an impression that they are expensive. Though the company included a few mid-range restaurants, like Reyes Barbecue, Mexicali and Fruitas, it may be worthwhile entice other restaurants of a similar bracketBlue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil Page 20 of 29

to sign with them. The website can include suggested orders that fit into different price ranges to encourage other markets to avail of their services, thus broadening their reach. Tagline will not work with non-English speaking markets While the tagline is very successful in Metro Manila, this success may be hard to reproduce in non-English speaking areas. Quick Delivery should look into developing a universal tagline will allow for translation but still provide a strong recall with their customers.

Please see SWOT Analysis in Appendix F

ConclusionThe concept of a home delivery service is far from new. Even as early at ten (10) years ago, this service has existed in many different countries around the world. To name a few, Delivery.com in the United States of America, Mr. Delivery of South Africa, Room Service of the United Kingdom, HungryGoWhere of Singapore, etc. This proves that a successful Blue Ocean Strategy does not need rely on a completely original idea; rather it focuses on pioneering a service or product that has not been offered in a certain market before. The success of this particular business can be directly attributed to arriving first in the market and being backed by a strong network for personal and business connections. Currently, it has one known competitor of a similar service called City Delivery that has approximately forty-five (45) restaurants under its belt. The race is on for both to acquire more exclusive contracts for restaurants and other services. Both companies are limited only by their imagination in collaborating with other institutions. The rest of the public can certainly benefit this type of competition. The authors of this research paper laud Quick Deliverys pioneering spirit drive for innovation and the soundness of their operations.


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AppendicesAPPENDIX A: QUICK DELIVERY WEBSITEThe website of Quick Deliver can be found at: www.quickdelivery.ph


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APPENDIX B: INTERVIEWExcerpts taken from an interview conducted with Mr. Jin Gonzales, President of Quick Delivery. The interview was conducted over the phone on 04 June 2010 and covered a range of questions based on the groups readings on the Blue Ocean Strategy. A. Inspiration to start the business1.

Mr. Gonzalez was inspired by a National Geographic TV documentary on a Korean homedelivery service.

2. Normally, when you get an idea, the idea is only a little seed of what you should be

doing.3. Mr. Gonzalez realized that Filipinos have a passion for food, and could have almost

everything delivered.4. He imagined providing a service that offered extreme convenience as well as providing

exactly the type of food that consumers would like.5. Mr. Gonzalez took a Masters Degree course at the Asian Institute of Management where

he studied various business models. The knowledge of these business models enabled him to launch and manage nine (9) other businesses before starting Quick Delivery.6. He was also inspired by a company called Canada Dry. According to him, the company

was bought by a small group of friends who grew the business in a large multinational company (now owned by Dr. Pepper). Canada Dry was initially run by a group of approximately ten (10) people, and much of the work was outsourced from production to sales.7. You know, entrepreneurs will do really badly, and then they'll do really good. But what

is consistent in all of them is actually their drive and their determination.8. As long as you're always, always in the mood for searching, starting up and innovating.

It's not anymore a question of if it's going to happen, it's really just a question of when.


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B. Start-Up of Quick Delivery1.

As I see it, we're in a whole new field

2. When you start a company, you don't start it out with cash. The way I do it, I always start

with nothing.3. It's just a question of getting all the resources you have from the contact you have, and

even the contacts you don't have.4. Capital to start a company is not important resources when starting up 5. You can have a multi million-peso company with the right people's supporting it 6. They did not start with doing their own deliveries - Theres a difference between doing it

the smart way and doing it the hard way7. Starting Quick Delivery is like setting up three (3) businesses at the same time - full

logistics, advertising and a full call center, just for one (1) service. C. Target Market1.

Upper middle class. We all eat in the same restaurants and like the same food. We all know the families who own the family that own all these businesses

D. Support Staff, Restaurants, Delivery Centers1.

I keep my team very lean. Let's put it this way, on my second month of operations, I was in the black.

2. They do their cash management and financials on a daily basis. 3. We don't do it [operations] by zones or areas =not like the way our competitors do it -

Which makes us far more efficient and with less cost4. Quick Delivery services areas from Mall of Asia to Trinoma 5. They have a system of payment with their partner restaurants. 6. The more distant they [staff] are from cash then the more stable your payment system is,

the better it is.


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7. Sixty-nine (69) to seventy-two (72) restaurants signed up, over one hundred and ten (110)

locations and close to one hundred (100) more scheduled for launch.8. Restaurants have exclusivity deal with Quick Delivery

E. Future of Quick Delivery1.

Mr. Gonzalez sees Quick Delivery expanding to every corner across varied industries.

2. I cant think of a place where its not going to be 3. Service line ups for the month include industry firsts

F. On Innovation1.

Mr. Gonzalez believes that an entrepreneur lives on innovation and creating new things.

2. It is not about knowing what is going to happen next. It is about having an idea. 3. You know there are some things that is like the Aha! moments and you just get it. And

you just pray for guidance and all that stuff4. What's great about this business is when you're on top of it, and you're an

entrepreneur, youre actually creating as you're taking action G. On Competition1.

You don't look at competitors. Because if you're looking at them, you're not ahead of your game.

2. You got to work on the hook and the upper cut when he's working on his jab.


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APPENDIX C: JOLLIBEE MENU


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APPENDIX D: ITALIANNIS MENUItalianni'sStarters1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Toasted Bruschetta Mussels Lombardi Fried Calamari Baked Ravioli Stuffed Mushrooms Spinach and Artichoke Formaggio Prosciutto Salmon Carpaccio Three Mushroom Bruschetta Asparagus Gamberetti 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. Baked Ziti Spaghetti and Meatballs Shrimp and Mushroom Linguine Seafood Cioppino Seabass Meditteraneo Seafood Cioppino Shrimp Fra Diablo Macaroni Ricco Fettuccini Frutti de Mare Shrimp and Asparagus Alfredo Aglio Olio Macaroni & cheese (kiddie meal)

House SpecialCes51. 52. 53. 54. 55. 56. 57. 58. 59. 60. Chicken Parmagiana Parmesan Crusted Fish Fillet Grilled Pepper Crusted Fish Fillet ! Seafood Risotto Grilled Salmon Oreganato Chicken Marsala Risotto Herb Roasted Chicken Grilled Pork Chops Au Poivre Dory Fish llet Cartocio Roast Pork (Ribs)

Pizza11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Margherita Pizza! Pepperoni Pizza! Smoked Salmon Pizza Quattro Formaggio Sta. Lucia Classico Quattro Staggionni Tropicale Mixed Seafood Chicken Barbeque Wild Mushroom Alfredo Pizza Abbondanza (16'')

Steaks61. Grilled Angus Rib-Eye 62. Top Blade in Al Fungi Sauce

Desserts63. New York Cheesecake 64. Chocolate Eruption 65. Tartufo

Soups23. Soup of the Day 24. Minestrone

Group Packages66. Set A (good for 4) Frutti Di Mare Spaghetti and Meatballs Wild Mushroom with Sausage and Onion pizza. 67. Set B (Good for 4) Sicilian Salad Spaghetti Bosciola Wild Mushroom with Sausage and Onion pizza.

Salad25. 26. 27. 28. 29. 30. 31. Caesar Salad Romano Chicken Caesar Salad Sicilian Chicken Salad Insalata Verde Insalata Mediterraneo! Insalata Milano! Insalata Rucola

Pasta32. 33. 34. 35. 36. 37. 38. Angel Hair Pomodoro Tortellini Grilled Chicken Fettuccine Penne Arrabiato Classic Carbonara Fettuccine Alfredo Lasagna


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APPENDIX E: OTHER HOME DELIVERY SERVICES

www.mrdelivery.com, South Africa

www.citydelivery.ph, PhilippinesBlue Ocean Strategy Group 4: SPARK - Chua, Go, Lopez, Sotomil Page 28 of 29

APPENDIX F: SWOT ANALYSIS FOR QUICK DELIVERYStrengths 1. Strong network of family and friends who are in key positions of target businesses 2. Exclusivity arrangements with partner restaurants and businesses. Weaknesses 1. Difficulty in rendering service to low-cost restaurants which do not traditionally have service charge. 2. Limited area coverage

3. Heightened experience, exposure and 3. Limited advertising campaign business skills of Quick Deliverys owners 4. Difficulty with translating successful tagline from other businesses they operate / to other languages manage 5. Difficulty with navigation / ordering from 4. Lean organizational structure allows for multiple sources through website. streamlined operation and management 5. It has a young, dynamic, and highlycreative entrepreneur as an owner. 6. Strong internal controls in terms of asset management (especially cash). Opportunities 6. Reputation for being expensive 7. Growth is creativity-driven and creative inputs seem to come mostly from one person only (President) Threats

1. Explore delivery of other products such as 1. Imitation - rising companies follow the groceries, stationery supplies, flowers, same format of business hardware, etc. 2. Partners may be lured away by new services 2. Expansion to other major cities within the 3. Non-compliance of outsourced delivery Philippines / abroad service to committed time to customers. 3. Expand brand recognition through 4. Prank calls advertising campaign to other forms of 5. Potential lack of payment by customers media - Newspapers, magazines, television, radio, point of sales.


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