Background of SlayKK
SlayKK is an affordable copy of a top-performing store run by AliDropship, bought by Karlos kay at the price of 300$. His website includes few successful niches, that been tested by the Alidropship team. The store’s catalogue is already packed with proven bestsellers, plus a life-long IT and marketing support.
The owner of SlayKK “Karlos Kay” completed his Master’s degree in International Business Management from Salford University and decided to start an e-commerce business in 2021. After graduation, he founded difficult to secure a job as a new graduate. However, with the help of his parents, he started a successful dropshipping business.
An entrepreneur was defined by Knight (1921), as an Individual who is concerned with efficiency in the use of economic factors by continually reducing waste, increasing savings and thereby creating value, emphasizing their ability to cope with risk and uncertainty effectively and implicitly understanding the opportunity risk-reward relationship”. However Acs and Audretsch (2005) state that an entrepreneur can exploit change in technology, materials, prices or demographics. This last definition is more relevant to this case study, as the founder of this business built his business entirely online, taking in consideration the most profitable countries to target and attract customers from.
Entrepreneurship can be interpreted as the creation or the extraction of value. Entrepreneurship can be commonly described as the capability to develop, maintain or organize, and the ability to run the enterprise with certain insecurity and risk to gain profit in the existing market (Diandra and Azmy 2020). An entrepreneur is a person who can create a new business model and is reliable to take the risk and also enjoy most of the reward. In simple words, it can be described as the acceptance of challenges and finding the pain point of the customers and the latent demand of the existing market and producing the best solution to eliminate the pain points and also fulfill the latent demand of the market (Kuratko 2011). The theory of entrepreneurship can be broadly classified into 8 different categories that are mentioned below.
- Innovation Entrepreneurship Theory
- Economic Entrepreneurship Theory
- Sociological Entrepreneurship Theory
- Psychological Entrepreneurship Theory
- Resource-based Entrepreneurship Theory
- Anthropological Entrepreneurship Theory
- Opportunity-based Entrepreneurship Theory
- Process of Stage Entrepreneurship Theory
Joseph Alois Schumpeter, the great economist, first invent the Innovative theory that completely changed the perspective of entrepreneurship. According to the economist, the entrepreneurs are born with the wish to create something new and turn the stationary economy to a new level of development through their innovation (Lee, Hallak and Sardeshmuk 2016). They desire to create something new and creative and earn experiences by undertaking various activities. Schumpeter also denoted that the entrepreneurs can bring creativity in two ways such as:
1. By enhancing the demand for such products.
This theory of entrepreneurship has been propounded by Richard Cantillon and according to his theory, the economy is one of the sectors that is affected by entrepreneurship as the entrepreneurs possess the stand of producers and exchangers. The activities of entrepreneurs can be highly stimulated by the supply of raw materials to produce the end products for the consumers (Brown and Thornton 2013). As per the statement of Cantillon theory, any individual can be defined as an entrepreneur for their actions as they have their source of unfixed income be it a beggar or a restaurant owner. This uniqueness of the theory makes it stand out from other categories of theories.
What is Entrepreneurship?
This theory of entrepreneurship deals with the societal aspects and Max Weber has propounded the theory of sociological entrepreneurship. And he stated that entrepreneurs should accept the societal aspects of developing their start-ups. If any entrepreneurs consider all the social aspects such as the social taboos, culture, and religious beliefs, then they would be able to set up a new venture that will satisfy the needs of the customers (Phan 2004).
The psychological entrepreneurship theory is based on three theories and it solely depends on the characteristics of the entrepreneurs.
- Locus of Control: The success of entrepreneurship depends on the internal and external locus of control which stands for the internal abilities and support for external factors (Gorgievski and Stephan 2016).
- Characteristic Traits: This directs the inborn qualities of the individual that instigate them to create something new.
- Need for Achievement: Usually the entrepreneurs tends to obtain achievement through their innovation and that makes them succeed.
Peter Drucker has defined the opportunity base entrepreneurship theory. They always search for new opportunity to bring something new through innovation and exploits it to achieve the market acceptability.
This theory depicts the resource factors that the entrepreneurs needs to have resources to start their enterprise and to carry forward it. The entrepreneurs need to have resources to make their initiative more productivity where money and time is not that sufficient.
It clearly depicts the cultural perspective of entrepreneurship. To run the venture successfully, the entrepreneurs need to consider the societal and the cultural aspects (Edwards et al. 2020). It allows them to bring new ways to solve the difficulties.
This theory has been propounded by Venkat Rao and as per his theory the stage of entrepreneurship can be described into five stages such as
- Simulation of Entrepreneurship (Rauch, Fink and Hatak 2018)
- Identification of the new innovation
- Expansion and development stage
- Promotional activities
- Feedback from the customers.
As been illustrated by these previous definitions, it’s difficult to find a concise definition of an entrepreneur. However, there are some common entrepreneurial characteristics, which can help identify entrepreneurs.
A conclusive, Entrepreneurship takes a number of forms and it appears in both small, medium and big businesses, in new and established businesses, in the formal and informal economies, in legal and illegal activities, in innovative and conventional cases and in all regions and economic sectors (Shane 2003: 1). Hence, it’s difficult to define an entrepreneur, taking in consideration different definitions in literature.
According to Khosla and Gupta (2017) there are five main traits, that a successful entrepreneur own:
- Focus and execution;
- Comfort with uncertainty;
- Flexibility in response to market need;
- Ability to tool at the future rather than the present;
- Having the right priority focus.
- The ability to look for and identify economic opportunities;
- Evaluate those opportunities, be able to raise funds to capitalise on these;
- Time management skills;
- Taking ultimate responsibility for all business decisions;
- Bear all responsibility for risk and uncertainty.
In this case study, Karlos Kay identified himself more with characteristics, as he sees himself as an entrepreneur, that indeed bought a copy-made successful business, however, he seeking new opportunities with new products and suppliers, his full focus on his business and its success, plus he willing to take risk, when it comes to targeting new countries and dealing with new suppliers.
From the above discussion it is clear that some of the characteristics of the entrepreneurs are inherent but for becoming an entrepreneur in the true sense, one needs to have certain degrees of skills that help them to grow their venture. The characteristics of entrepreneurs can be broadly categorized into 10 types that are essential to become an entrepreneur.
Firstly, for becoming an excellent entrepreneur, they have to be passionate about their innovative idea and business venture. To achieve this quality, they have to remind themselves that they are trying to solve certain problem that are existing in the market and setting specific goals help someone to achieve this quality. Passion works as a driving force for the entrepreneurs that helps them to work better and more productive ways (Al Issa 2021). It also allows the entrepreneurs to put more focus and spending extra time in the workplace so that they can make something better and innovative and also to bring meaningful changes. In the initial days of any entrepreneurial venture, there are hurdles but passion ensures the entrepreneurs to overcome certain challenges and the remove the hindrance to attain their goals.
Theory of Entrepreneurship
This particular character trait directs the level of tolerance for receiving certain risk factors from unknown sources. Ambiguity deals with the complex situation and it has various effects on individuals to portray the level of tolerance for ambiguous situation or occurrence. It is just because entrepreneurial managers confront a less regimented, more unpredictable set of parameters and really hold the ultimate decision-making duty, they are considered to handle ambiguity better than conservative managers (Embi et al. 2019).
Confidence is a conviction or awareness of one's capabilities or of dependence on one's surroundings that comes from vast experience. This confidence is defined as belief in an individual's ability to act in a correct, appropriate, or productive way and to accomplish. To put it differently, businesses believe in their own abilities to achieve any objective they choose for themselves, as well as to overcome obstacles and succeed others when may not get success (Garaika et al. 2019). Entrepreneurs engage their own resources and time in a project as they believe they could produce something superior in terms of quality than what are already exists the same market. already available on the market. It helps to dwell on your intention and speculate about the possibilities of your commercial endeavour to boost self-confidence.
There has been a lot of discussion and controversy concerning innovation in recent years. suggest a strong correlation between innovative behaviour and enterprise effectiveness, as well as a connection between innovative behaviour and accomplishment orientation. Creativity is the certain characteristic that give birth to something unique and innovative (Shin 2018). Marketers are considered to be able to scribble down a multitude of ideas and afterwards execute with it. Not all of the recommendations will be effective. The knowledge gained, on the other hand, is priceless. Innovation contributes in the formulation of creative solutions to problems as well as the process of thinking beyond the boundaries. It also enables an entrepreneur to invest in research and development for markets similar to those in which he presently operates.
Authority in other words denotes to the level of independence and according to the theory of (Tajeddini and Mueller 2009) stated that the entrepreneurs wish to work independently and they are self-directed and do not care about others and their opinions and desire to make decision for their own venture.
The entrepreneurs need to be quick and very much active in making decision of their own. Entrepreneurs has to become less effective in handing uncertain situation and stop acting on such act with spontaneity to improvise their decision-making process. They need to analyse every facet of the problem and make himself aware of the fact and lastly take action (?spir, Elibol and Sönmez 2019). It will improve their decision-making skill by avoiding the rushes. A simple positives and drawbacks list can also help entrepreneurs nail down their alternatives.
Entrepreneurs must have the knowledge to manage the risk situation during the venture. Taking risk is important for the entrepreneurs to go beyond the market competition. One cannot explore something extraordinary unless they have the desire to discover the unseen. And it's conceivable that this distinctiveness will have a significant impact. Taking risks entails a range of factors. Using unusual treatments has its own set of risks. Entrepreneurs establish a specific risk management approach. Successful firms are always eager to invest time and money in their operations. They do, nevertheless, have a backup plan in place for every decision they make. The evaluation of the threats to be taken is also important. A successful company would not gamble everything without first weighing the risks.
Identifying Entrepreneurial Characteristics
Entrepreneurs in the initial stages of a start-up are often supposed to perform multiple aspects of the business, including financial, promotional, and distributional task. It's vital to be adaptable in both the schedule and the thinking in order to maintain progressing further under difficult circumstances (Obschonka and Hahn 2018). Conduct all actions, regardless of whether personal or professional, with an inquisitive attitude and a commitment to try course if required to improve flexibility. To enhance one's ability to adapt to new circumstances, explore new techniques, and embrace emerging styles.
It appears, that entrepreneurial characteristics differ from an entrepreneur to another and its completely dependant on the background, personality, type of entrepreneurship and other factors impacting this later. However, there are few common characteristics that entrepreneurs do share.
In 2020, the founder of SlayKK decided to start this e-commerce business. It is a 100% digital business that sells multiples successful niches online and market them via Instagram and other social media platforms. Approximately 92% of the population in the UK have access to the internet (World Bank, 2019), hence the decision to promote niches online.
The target market range between 22-65. Karlos Kay is the only one running this business. The website www.slaykk.com has 8 different niches, including:
- Best sellers
- Home goods
- Phone accessories
- Travel & outdoor
- Customers electronics
- Vehicles & parts
Once the customer orders via the website, Karlos Kay will process the order, contact supplier, pay for the product and update customer.
- Business Canvas
Business model canvas consists of nine basic components of a business model. Instead of simply having them in a row, they are put on a canvas so the visualization of the different issues’ relation is improved. That helps the user to map, discuss, design and invent new business models. The whole thing can basically be divided in the product on the left side and the market on the right, while the value proposition is obviously divided in half (Maurya, 2010)
A business canvas model is strategic framework of a business start up through which the entrepreneurs try to develop new business model with the new resources and also represents the existing ones. Branding is a top concern for business functions, according to the BMC (Business Canvas Model) (Keane, Cormican and Sheahan 2018). By serving as the primary focus for attracting and retaining customers, the type and form of branding used can have an impact on customer interactions and critical activities. Marketing was also mentioned in the value proposition as a key component.
Furthermore, a business canvas is used as a strategy to structure and organise the business and its activities and consists of 9 elements (Azhana, Amanullah et al., 2015).
- Customer segments
- Value proposition
- Customer relationships
- Revenue streams
- Key resources
- Key activities
- Key partners
- Cost structures
Some businesses may only identify few elements of their business canvas, as some elements would not be relevant to their operation. For instance, SlayKK identifies Customers segments, Value proposition, key activities and unique selling point as relevant.
The key activities of SlayKK are dropshipping products from Alidropship suppliers, by processing customers’ orders, buying their selected products from supplier and update them. SlayKK, being associated with Alidropship suppliers, their activity will be containing 3 steps processes. Firstly, they are going to select the products that they will be trading on the website of SlayKK and collaborate with Alidropship suppliers. To start an interactive website is the most important perspective in a drop shipping business (Sparviero 2019). As this website will showcase the products ranges to the potential customers and have to apply certain social media campaign and marketing for the website to reach to the customers. Being in the drop shipping business, SlayKK will be dealing with customers across the world and they will be connecting with them through the webpage of the business.
Traits of a Successful Entrepreneur
Segmenting the customer group is one of the main concerns for a business start-up. Before starting the business, SlayKK has to find out the potential customer segment. Due to impact of covid-19, the e-commerce businesses are growing at high pace and the concept of brick and motor concept is fading away. And the study has found out that the Gen Z customers are very much active in internet medium. So, SlayKK has identified that this notion will be boosting their online business and for that they have decided to range the customer groups. The psychographic segmentation for the business plan will attract the customer segment who are frequent online purchase irrespective of all ethnic groups (Biswas and Ahmed 2020). The business targets customers that are between 25 and 50 years old, this segment is the most profitable in the USA and UK for SlayKK. People aged between 25 and 50 are more used to online shopping and more interested in exploring new products.
Value proposition represents the value that the organization desire and promise to provide their potential customer base so that it made the customers to choose their product over their competitors. Value proposition of the business start-up can be considered as the key marketing concept of the business. Value proposition is an important element for any business. It increases chance of selling and making products popular. To set the value proposition in the business canvas model, the organization has to have extensive products knowledge though they are dealing with wide range of products but the UVP of the business has to provide the customer with the best quality products (Mohd Satar, Dastane and Ma’arif 2019). The UVP of the SlayKK is that their products are of superior quality. The have automated product loading process such as bulk editing options, products filtering so that it could not slow down and stock out the products during the pick hours. Karlos needs to update the social media campaign to increase the engagement with the customer to offer the service and the run post campaign about the regular products update and pricing of the products.
SlayKK is a copied successful business of Alidropship, that been profitable to many entrepreneurs. However, Karlos Kay has chosen to add new niches to his website to make stand from another similar website.
The potential customer segment will start ordering from the SlayKK website and the organization will forward the customer’s details to their supplier and at the end SlayKK, being the drop shipping business will reach to the customer to deliver the products or goods.
According to Kompaniets and Rauhut (2013), the article on the Unique Selling Point discusses the concept of the USP and the importance of the USP for the business organization. It provides the outlook that there are almost similar kind of business and they are offering almost similar set of products to the customers but the USP is the prime concept that makes the difference. Though the article is written in 2013 on the northern Sweden market, the article is still relevant for its key concept of USP.
Budgeting is the most important concept before starting off an business. As starting of the business, the entrepreneurs needs to identify the cost that will incur during the business operation. Every dropshipping business has some of the key aspects that make them stand from others. So, there is no universal cost structure. Yet there are some basic cost that Karlo’s has to bear being the entrepreneur. Firstly, to start the business, the entrepreneur will incur cost for niche product research. And for that, the business has to research about the market condition and niche market or products and it will cost minimal as the owner will pursue it by himself.
Another cost that will be there is the website launching cost. Webhosting provider and CMS- WordPress Content Management System will be required to launch the website in the marketplace. Karlos needs to set the domain provider that will host the website. It will cost around $2.49 – $13.95 per month (Gil?Garcia, Henman and Maravilla 2019).
The barriers that were identified in this case study of SlayKK were:
- Segments and targets of ads,
- Market competitors,
- Customers retention,
- Loyalty of people to world known app, such as Amazon, Ebay…
SWOT analysis is a strategic framework that helps to understand the company’s internal capacities and also to assess the market conditions. SWOT specifically stands for Strengths, Weaknesses, Opportunities, and Threats. The brief of SWOT analysis has been explained in the appendix. It also helps the entrepreneurs to assess the opportunities in the market and to take leverage on that.
In this part of the study will focus on the strengths of the business model and also identify certain factors that the competitor does not possess. It helps the brand to earn the extra competitive edge from the market. The chosen business model, Slay KK is a kind of drop shipping technology that take products from the Alidropship suppliers and the strength of the business model has been mentioned. Firstly, the business model holds the ease of transaction and the customers can pay the charges from their comfort zone, and the payment can be conducted from any parts of the world. This is the major strengths of the business (Jamza, Achsani and Indrawan 2020). This market is growing and the marketing and advertisement cost is very low and the promotion can be easily done through the social media such as Facebook, Instagram. And the start up cost is lower than opening the store in the offline market.
Though the business model has specific strengths, yet there are certain weaknesses that can harm the market scenario for the organization. Being the organization, they do not have the direct customer interaction. It sometimes happens that direct interaction may lead to disqualification of the lead. The company person cannot persuade the customers to shop from them. Consumers' choices are primarily influenced by their personal views or conceptions of the goods. Unfortunately, clients may lack the requisite knowledge to make informed buying decision. Shipping cost can be a weakness for the business model as higher shipping price will lead to lower number of customers in to the sales funnel (Endratno and Santoso 2020). Consumer demands are often too high, and small drop shipping businesses would not be able to meet them. As an example, try a small start-up company competing with Amazon.com.
There are certain external factors from that the business can take advantages. The website contains varieties of products range and if some product is not selling up, there is no need to put it down, instead of that they can search for alternative product to feature in the website. The availability of market testing options is there for the start up to choose the right products for their website. E-commerce market is growing so the start up has the scope to sell the items in the global market. The e-commerce industry is still expanding rapidly, and this trend is projected to continue. The brand can set the drop shipping start-up to enjoy the benefits of the market expansion. The number of people who have internet connectivity is growing. In 2011, it was estimated that 2.3 billion people were online. This amount was still less than 40% of the world's population. This number will have climbed to 4.57 billion by March 2020 (Voloshyna 2020).
The start-up needs to identify the existing threats in the market along with the identification of strengths and opportunities. Companies only competing with other organizations in their direct proximity before to the e-commerce boom. The company, on the other hand, has been contending on a global basis. Competition is increasing by the day as a result of the industry's low entry barriers. Although advertising online, many people work in the e-commerce industry. Some people use social media sites like Facebook and Instagram to manage their drop shipping businesses. The frequency with which cyber scam is committed is disturbing. Customers may be frightened as a consequence of this, and they may be reluctant to conduct internet banking.
This business is still a new one and the founder is aware of the challengers and the barriers that might impact his profit in the short and the long term. However, SlayKK goals are to retain loyal customers and attract new ones. In addition, to keep up with the new niches that suppliers do offer and use these respectively with each different segment that SlayKK attract.
The findings from this case study show that there are several barriers for an ecommerce entrepreneur, including saturation of market, retention of customers and loyalty of people towards well known apps of ecommerce. However, there some recommendations emanating from this business, including differentiation of niches by adding new suppliers, so the website can stand out in the big wave of other similar businesses. In addition, to focus ads on more profitable countries, as the budget that can go to divertible ads can be high and non-necessary for SlayKK. Moreover, retention of customers can be sending customised emails to customers offering them discounted deals and similar products to their preferences.
In conclusion, studies exploring the determinant of businesses’ ecommerce adoption are very limited (Li & Xie, 2012). This report indicates areas of potential for future research with more ecommerce entrepreneurs.
During my interview and study of SlayKK, it has become clear that a person who is going to start an ecommerce business needs to have not just the idea or concept, but they need to be able to manage the aspects of the business, such as suppliers, marketing, and website management.
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