Chapter 1
Chapter 1
COMPANIES
CHAPTER 1
INTRODUCTION
1. INTRODUCTION
Sustainable Business Model [SBM] Prior corporate strategies were focused on increasing
owner profits. Stockholders and other internal stakeholders were later added to the list.
Nonetheless, there is still a lack of these business concepts. This is because they don't take into
consideration how a company affects the rest of the world or how those impacts affect the
company itself. What makes a firm sustainable is a holistic approach. No company exists in a
silo; it is a component of a wider ecosystem. It at the very least depends on a delivery chain
and a supply chain. The sustainable value model explains how a business benefits from the
ecosystem. In order for an organization to continue generating value from it, it must consider
its environmental consequences. Whole or holistic business models might be regarded as
sustainable business models as a result. SBMs increasingly consider external stakeholders
including society and the environment. This will change the computation of any value creation
model. The total effect of a company's business operations on external stakeholders must be
considered when calculating the net value that a company generates.1
Society is pressuring business leaders to consider issues beyond shareholder profit. Many
anticipate that enterprises will benefit society and the environment. The only way to achieve
long-term financial success is through sustainable development. SBMs must be woven into the
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structure of both new and existing businesses. It is the sole means of ensuring long-term
sustainability and survival There are numerous methods to approach the topic of sustainability,
but the most straightforward one that can bring together all stakeholders is as follows:
Businesses that show kindness gain more clients. The 2022 Global Purchasing Green study
states that 68 percent of consumers made purchases in the last six months based on a company's
sustainability credentials, and 86 percent of customers under 45 were willing to pay more for
sustainable packaging. It's acceptable to be transparent about your sustainability objectives and
to market your sustainability. Consumers will enquire, and the friendlier you are with them, the
more probable it is that they will tell their friends what you have discovered.
Long-term business concepts are more likely to help businesses prosper. The best way to assure
long-term success is to make sure your firm is sustainable. Social value creation and
environmental protection must go hand in hand with economic expansion. A sustainable
business model finds risks in the present supply and value chain. Then, it applies innovation to
reduce those risks and guarantee prosperity. Adopting an SBM also helps a brand's image
becomes more positive. Concern over how corporations are affecting the environment
worldwide is growing. SBMs are ethical business strategies that benefit society and
shareholders. Customers and potential workers who care about the environment will find them
more enticing as a result.
A company's strategy for earning a profit while also protecting people and the environment
is known as a sustainable business model. It outlines the goods or services the company offers,
the people who will use them, the expenses involved, and the supply and distribution network.
Business growth prospects are substantially impacted by sustainable business models, which
analyze company performance using the triple bottom line of "people, profit, and the planet."
They also actively promote environmental management in a systemic manner.
A traditional business model illustrates how a corporation creates and collects value. It draws
attention to the tactics that a business uses on a daily basis. Examples of this include product
distribution, supply chains, and the acquisition of materials.
For instance, a manufacturing facility might transfer its waste to be used in another sector of
the economy.
Bangalore is renowned for being the birthplace of modern start-ups. Numerous of these firms
will develop into self-contained unicorns as the new decade begins.
analysis is a strategic planning technique that may be used to make educated decisions based
on collective input from different stakeholders during the curriculum evaluation and revision
process. A SWOC analysis may be used as an effective framework to explore and clearly define
the strengths, weaknesses, opportunities, and difficulties linked to a current degree programme
or major in the context of curriculum improvement. Conducting a SWOC analysis has the goal
of identifying major areas for improvement in the curriculum. When undertaken in a
collaborative group environment at the beginning of the curriculum assessment process, the
SWOC analysis is very beneficial.
i. Strength
Global market
The main advantage of an internet start-up is the lack of physical barriers to entry; in other
words, no brick structure or precise boundary is necessary to conduct business. It helps all
businesses to grow to a worldwide level. The growth of global merchants may be aided by the
expansion of geographic retail marketplaces.
No time constra
The notion of online transactions being available 24 hours a day, seven days a week
demonstrates that they can be utilised. There are no time limits, so you can go anywhere you
want, whenever you want.
Price/Product comparison
Every consumer has the right to information in order to make an informed decision. Similarly,
online start-ups provide customers with a place to compare prices and products effectively and
efficiently. It will have a lot stronger ability to bargain effectively and efficiently. It will have
far more negotiating leverage with suppliers than traditional local or national merchants.
Cost effect
The elimination of a long chain of middlemen, the reduction of the need for physical
infrastructure, and the outsourcing of logistics are all helping small businesses compete with
the big giants.
The Internet will always provide rapid and accurate information sharing between businesses
and customers, as well as immediate, just-in-time responses.
The vendor is only a click away from making a purchase. No physical movement is necessary,
and the buyer does not have to search for the correct goods at the right price, which speeds up
the purchasing process.
ii. Weakness
Security
The most significant impediment to the growth of online start-ups is security. Customers have
long felt apprehensive, particularly concerning the payment process’s trustworthiness.
Fraud
Hackers utilise personal and financial information supplied for trading purposes for their own
personal gain.
The work of delivery is frequently outsourced to companies who are unconcerned about the
seller’s schedule. They offer their services whenever it is convenient for them. The delivery
time might sometimes take days or weeks, which is something that no one wants to wait for.
Limited exposure
Internet start-ups will have no or limited exposure in emerging areas where the internet is not
available.
Customer’s satisfaction
Between the buyer and the vendor, there is no physical, personal, or direct face-to-face
connection. As a result, there is no way to persuade the consumer.
iii. Opportunities
Changing trends
People are highly sensitive of their brand. They prefer to buy branded items than anything made
locally. They will not mind ordering through online start-ups if such items are offered cross-
border.
The number of people using the internet on a daily basis is growing. People prefer to purchase
online since it is more convenient.
High Availability
Business is carried out with each and every click of the mouse. Those who are busy during the
day and cannot spare time for themselves have the option to shop whenever it is convenient for
them, even late at night.
Internet start-ups have a broad reach and a long-term ambition. Business was always done in
the gaps. Gap filling is a never-ending process; hence business growth is a never-ending one
as well.
Advertising
iv. Challenges
Competitor
Global competition exists in addition to local competition. Every day, the level of competition
rises. Large corporations have already made forays into this sector. They are instilling habits in
individuals at the expense of their businesses.
Changes in fashion, food, and trends, as well as changes in legislation and regulations, may
all be detrimental to online start-ups.
Innovation
Customers nowadays are constantly on the lookout for new items and techniques. Innovation
will always put a strain on the consumer’s wallet, whether it’s in the form of a new product, a
new location, a new promotion, or even a new pricing.
Privacy concerns – Fears about information being abused result in spam e-mail and identity
theft.
A classic business model explains how a company generates and captures value. It highlights
the strategies used by a company in its day-to-day operations. Supply chains, material
procurement, and product distribution are all examples of this.
India’s technology capital. Because of its status as India’s main information technology (IT)
centre, it is known as the Silicon Valley of India and the IT capital of India. Bangalore has a
significant role to play in India’s inclusion on the list of desirable locations for incubators and
the start-up ecosystem around the world. Bangalore, in reality, boasts the world’s third-highest
number of tech start-ups. The city has quickly emerged as a playground for such enterprising
firms, thanks to Prime Minister Narendra Modi’s ‘Make in India’ initiative and the emphasis
on start-ups. The city’s work culture and facilities have made it extremely attractive to start-
ups, and many enterprises that started abroad have begun to relocate here.
1.8 Below are some most famous Sustainable Business Models across the
Consumer Internet Start-ups
1. YULU
Yulu is a mobility platform powered by technology that enables Integrated Urban Mobility
across public and private forms of transportation. Yulu enables seamless, shared, and
sustainable first and last mile connection by utilising Micro Mobility Vehicles (MMV) via a
user-friendly smartphone app. The Yulu platform is simple, resilient, and scalable, and it
supports numerous vehicles and has a single data architecture. Amit Gupta, RK Misra, Hemant
Gupta, and Naveen Dachuri established Yulu in 2017.The firm commenced operations in
Bangalore and Pune in January 2018, followed by Mumbai and Bhubaneswar towards the end
of 2018. They extended to New Delhi in September 2019 and Ahmedabad in March 2020,
reaching six major cities in three years.
2. SWIGGY:
Swiggy was started in July 2014 and is India’s largest online food ordering and delivery
platform. Swiggy is situated in Bangalore and operates across 500 Indian locations as of
September 2021. Apart from meal delivery, Swiggy also offers Instamart, an ondemand
grocery delivery service, and Swiggy genie, an immediate gift delivery service. Bundl
Technologies Private Limited is the company that runs Swiggy.
3. FLIPKART:
CHAPTER 2
REVIEW OF LITERATURE
&
RESEARCH METHODOLOGY
Startups are not just technology companies; but any companies in the process of being set up;
(Hermanson, 2011; Longhi, 2011; Blank and Dorf, 2012; Perin 2016; Kohler, 2016). This type
of entrepreneurship happens more in the area of technology because the costs are lower to
create a software company than an industry. 3
It is worth noting that there is a distinction between a small joint venture and a Startup for the
authors Blank and Dorf (2012). They are not smaller versions of large companies. For these
authors, a start-up company, which is not focused on product or service innovation and,
therefore, dispensed with the risks of uncertainties, is not a startup.
For Padrão and Andreassi (2013), startups aim at the growth in sales to have the return on
investment applied in the product development phase, as it is the way these companies try to
survive in their initial stages.
Based on the concepts presented, it is possible to understand this type of enterprise as those
with a short time in the market, present a business model of the rapid application, economic
growth in a short period, development of products generated from the practice of innovation
and, finally, investment targeting for Research, Development, and Innovation (RD&I). 4
2
Four Steps to Sustainable Business Model Innovation | BCG
3
(PDF) Startups: a systematic review of literature and future research directions | Josenilde M A R I O Janguia -
Academia.edu
4
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DQwMA&ptn=3&ver=2&hsh=4&fclid=274e4774-1a95-6938-2c1c-
Finally, uncertainty and innovation are also characteristics inherent to the development of the
smart industry, which draws attention to the prox imity that startups have with enabling
technologies, assigning them the role of precursors of the technological transition in Brazil,
which leads to the concept of smart startups.
The development of a Systematic Literature Review - RSL, in general, is related to the conduct
of research, directing new paths to be investigated; therefore, it requires pre-defined steps by
the researcher, such as the definition of the research problem; the search strategy, the inclusion
and exclusion criteria, in addition to checking the quality of the selected material (Oliveira,
2007; Sampaio; Mancini, 2007; Tranfield et al., 2003).5
The Scopus database provides an overview of the world’s scientific productions, covering the
areas of social, biological, health, and physical sciences, indexing the most varied academic
titles, conferences, books, among others (ELSEVIER). The WoS database, on the other hand,
is considered interdisciplinary, allows access to abstracts and references in all areas of
knowledge, and covers around 12,000 journals (Coordination for the Improvement of Higher
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g+set+up%3b+(Hermanson%2c+2011%3b+Longhi%2c+2011%3b+Blank+and+Dorf%2c+2012%3b+Perin+2016%3b+Kohl
er%2c+2016).+This+type+of+entrepreneurship+happens+more+in+the+area+of+technology+because+the+costs+are+lower
+to+create+a+software+company+than+an+industry.&u=a1aHR0cHM6Ly93d3cubmF0dXJlLmNvbS9hcnRpY2xlcy9zNDE
1OTgtMDIzLTQxOTgwLXk&ntb=1
5
The impact of founder personalities on startup success | Scientific Reports (nature.com)
The Research Design Used for the Study The study is explorative as well as comparative in
nature. It intends to explore the customer’s perception on online shopping. A direct survey in
the form of Google Form was used to collect the data for this study
Population Size
Sample Size
The sample size used for the study is 50. Sample Design A sample design is a definite plan
for obtaining a sample from the given population. The respondents are selected based on
convenient sampling.
Statistical Tools
The data collected through questionnaires were analyzed using simple percentage analysis,
graphs, charts, tables and diagrams.
Source of data
For this study, the data were compiled from primary data and secondary data.
Primary Data
Primary data consists of original information gathered from sample size of 50 respondents.
Secondary Data
Secondary data are those information’s that are already published. For the study the data
collected from secondary sources are; Internet, Websites & Existing research and scholarly
work.
To understand the sustainable business model formulation, implementation and how such
models are articulated. So, that the models have been adopted in Consumer Internet based Start-
up’s. The study focus on the role of Business models in increasing the sustainability along with
model framework, impact on the same success factors at the company context and industry
context
• To investigate the effectiveness of the sustainable business models developed, applied, and
assessed by start-up businesses.
Promote self-sufficiency
There are various Sustainable Business Model Archetypes which are introduces in the
Consumer Internet Start-ups to identify groups of processes and solutions that might help
develop a long-term business model. The goal of these archetypes is to provide a common
vocabulary that can be utilised in research and practise to speed the creation of sustainable
business models.
CHAPTER III
DATA ANALYSIS AND INTERPRETATION
SBMs use a triple bottom line approach and take into account a wide range of stakeholder
interests, including the environment and society. They are critical in generating and executing
corporate sustainability innovation, as well as helping to incorporate sustainability into
company goals and procedures and serving as a significant competitive advantage driver.
Many creative ways to providing sustainability through business models exist, but they haven’t
been grouped together under the umbrella of business model innovation. A wide range of
processes and solutions that can contribute to business model innovation for sustainability
have been discovered through a literature and business practise study. The instances were
gathered and analysed in order to find defining patterns and qualities that may help categorise
them.
Some researchers in the field of e-business have focused on the changing nature of
customerfirm relationships. The commercialization of e-business has been a particular source
of worry. Pauwels and Weiss (2008) investigate “fee and free” business strategies for digital
content distribution on the Internet. Their research focuses on the effects of a move from a
“free” to a “fee” model on business performance, as well as the function of marketing measures
in accommodating this shift. Scholars have also looked at the effectiveness of Internet
advertising in this area. Clemons (2009) gives an outline of monetizing Internet apps business
Scholars studying e-business as a source of business model research have been primarily
interested in the “gestalt” of companies that engage in (new) Internet-based ways of “doing
business,” as well as the (new) roles that these companies play in their respective ecosystems.
Scholars have defined and depicted general e-business models, as well as constructed
typologies and taxonomies, for this purpose; nonetheless, causal explanation and empirical
testing appear to be secondary concerns. Their primarily descriptive contributions focus on the
concept of value (e.g., value stream, customer value, value proposition), financial elements
(e.g., revenue streams, cost structures), and issues connected to the network architecture
between the company and its exchange partners to varied degrees (e.g., delivery channels,
network relationships, logistical streams, infrastructure). Each of these elements might be part
of a general business model or a point of distinction amongst business model variants.
Table 3.1
1 Age group
Interpretation
From table 3.1 ,it shows that majority of respondents are in age group 18-25 with a majority of
62%.
Table 3.2
2 Gender
Interpretation
From table 3.2 ,it is clear that 52% of respondents were male while 45%were females by
analysing this fact ,it can be seen that majority of respondents are male.
Table 3.3
option Frequency %
YES 31 63.3
NO 18 36.7
Interpretation
From the above data table 3.3,it reveals that the respondents finds like to buy again in through
startup company is 63.3%.
Table 3.4
satisfied Frequency %
YES 29 57
NO 21 43
Interpretation
From the above tale 3.4 ,it reaveals that majority of respondents satisfied by using of startup
company of 57%.
Table 3.5
satisfied Frequency %
YES 29 57
NO 21 43
Interpretation
From the above tale 3.5 ,it reveals that majority of respondents satisfied by using of startup
company of 57%.
Table 3.6
OPTION Frequency %
YES 40 80
NO 10 20
Interpretation
From the 3.6 shows that the startup company influenced majority of respondents during
pandamic days is 80%.
Table 3.7
OPTION Frequency %
YES 40 80
NO 10 20
Interpretation
From the 3.7 shows that the startup company influenced majority of respondents during
pandamic days is 80%.
CHAPTER IV
FINDINGS ,SUGGESTIONS
AND
CONCLUSION
2 52% of respondents were male while 45%were females by analysing this fact ,it can be seen
that majority of respondents are male.
3 The respondents finds like to buy again in through startup company is 63.3%.
4.2 SUGGESTIONS:
The Start-up Outlook report is an annual report published by InnoVen Capital India & provides
an outlook on the sentiment prevailing in the start-up eco-system through the eyes of founders.
The survey is administered to founders & senior leaders and covers a broad cross-section of
companies from early-stage, growth stage and late stage. It covers wide ranging topics around
funding environment, exits, focus areas, challenges and other aspects that are on the mind of
founders. The 6 th Start-up outlook report was based on a survey conducted with approximately
100 start-up leaders.
Data and figures herein may represent the whole or part of a set of responses to a given question
to account for data completion matters.
4.3 CONCLUSION :
From the study it is concluded that the practice of innovation for sustainability is vast but
fragmented with various concepts and there are many potential innovative approaches that may
contribute to business model innovation for sustainability.
The development of Sustainable Business Model (SBM) is currently a main focus to all the
start-ups operating via Internet, but also of high interest to business practitioners and policy
makers. By fostering to Sustainable Business Models these Internet start-ups intend to reduce
the negative ecological and social impact of production and consumption systems, as well as
to address societal challenges such as climate change.
References:
Patzelt, H.; Shepherd, D.A. Recognizing Opportunities for Sustainable Development. Entrep.
Theory Pract. 2011, 35, 631–652.
Bocken, N.M.P.; Short, S.W.; Rana, P.; Evans, S. A literature and practice review to develop
sustainable business model archetypes. J. Clean. Prod. 2014, 65, 42–56.
Neumeyer, X.; Santos, S.C. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. J. Clean. Prod. 2018, 172, 4565–
4579.
Books;
Deepak Chawla and Neena Sondhi (2011) Research Methodology Concepts and Cases, Vikas
publishing house Pvt Ltd., New Delhi.
Questionnaire
1 Age group
A 18-25
B 25-35
C 35-45
D 45&above
2 Gender
A Male
B Female
A Yes
B No
A Yes
B No
A Yes
B No
A Yes
B No
A Yes
B No