Rabbit Drop Company Essay

Abstract
In this assignment I am going to write about a company which is successful in recent past. The company is named as “Rabbit Drop”. At first I will introduce the company and its background, then I am going to describe that how and why this company has been successful in recent past. At last this assignment includes some insights about the company describing how this company has become popular in the area and growing day by day.

You might have got little bit of idea by name of the company “Rabbit Drop” that what this company is about. It is basically an online grocery shopping center that delivers your grocery at your doorstep as soon as you buy it from the online website. This company was started in early 2015 by two young blood. At the moment the only focal center is Lahore in Pakistan.
Although the main idea behind this company is not a new one which is online shopping, but this company is providing some unique features to its customers. For instant, most of the online shopping includes electronics, garments or sports but this company is providing grocery shopping which is very rare these days.
This company is also unique in its shopping style. If someone wishes to buy some grocery for a day, s/he just have to login to the website and order what is needed, the items are delivered on the doorstep after maximum of 60 minutes irrespective of the place where the person is living in Lahore. This way customer can save a lot of precious time by just paying some extra money for the service. The problem with most of the online shopping companies is pretty much the same which is their delivery time. This company claims that it will not take more than 60 minutes to deliver the items on your doorstep.
“Rabbit Drop” is successful in its business mainly because the barriers of entry were low in this scenario and customers were getting the ultimate benefit from this kind of innovation as describe by the Porter’s forces. This company entered in the market and got competitive advantage over the others because the barriers set by its competitor were not up to the mark. For instant, in this case access to supply and distribution channels were easy available for new entrant, as they didn’t had to go anywhere outside the focal city for its supplies. The company will buy the products from the market and deliver it to the doorstep of the customer. So, they don’t have any difficulty what so ever in supply and distribution channel. Differentiation and market penetration cost were not too high as they didn’t needed a huge set up to start this company. License was also easily available. Threat of substitute is another force that is describe by porter which can be implied here. The customers were getting more benefits by this innovative move because practically they have to pay less or almost equal amount of money if they order their groceries through Rabbit Drop rather than go and buy the groceries by themselves. The main reason behind that is the other cost that is added in to the cost of groceries. For instant, a person goes to market in a car and spends money on petrol and it consumes a lot of his/her time because of daily traffic jam in Lahore. So in reality s/he is spending more money just to get the groceries which s/he can buy online. So the customer is more than happy to order his/her groceries through Rabbit Drop. This way s/he is ultimately saving money and time. Another reason for its success is the location of the company. Rabbit Drop choose Lahore as its focal city because of its population and market value. There are tons of multinational organizations that are working in Lahore, due to this reason people try to come from other cities to live here which is ultimately an advantage for Rabbit Drop. Lahore is the one of the largest cities of Pakistan both by population and by land. If the company made a choice to select Islamabad as its focal city the situation might have been different because the markets in Islamabad are really close and it’s a traffic jam free city.
There are two ways that can get the competitive advantage, one is internal resources and other is external factors.
In Resource-Based View internal resources are more important than external factors. Rabbit Drop recognized these internal resources and made a value out of it. The company knew that for resource to be valuable it must be either hard to intimate, not easily substitutable or rare. In this case other companies are having problem with delivery times and less variety of products. These kind of hurdles are overcome by Rabbit Drop and they created a resource value that was rare in other companies. Talking more about physical resources in internal resources which includes location, raw material, technology and machines, they all helped Rabbit Drop to get a competitive advantage and boom in the market. For example, they didn’t had to worry about raw material as it was easily available in this case and the company didn’t need to buy high phi equipment for it. So the resources that are rare in other competitive companies, location, raw material, technology and machines, they all played crucial role for getting the competitive advantage for Rabbit
Drop.
In my opinion this company in near future is going to boom in the market more because of several reasons. One of the reason is that the company has already taken the best place in the region and it knows the barrier level for new entrants as describe by the Porter’s five forces. The new entrant now have to work more hard to get the place in the same market and get the competitive advantage over Rabbit Drop because Rabbit Drop knows the loop holes and it has filled these loop holes to make job more difficult for the new entrants.

References
• David, Fred R., Strategic Management: Concept and Cases, 13th edition.
• http://www.rabbitdrop.com/