Sam Petrie
BUS105
Feasibility Study
I. The business that I am in would best be described as a combination of Netflix and your average run of the mill pizza shop. The idea is that, like Netflix, one can choose a movie to rent from our website, along with a pizza, hoagie, whatever. Then, someone from our store delivers the movie, and the pizza, in the same way pizza shops deliver pizza now. The customer can then either return the movie through a pre-stamped envelope given to them with their pizza, or drop it off at a local office.
II.
Benefits: Netflix cannot always provide the "instant gratification" that this service could for the customer. Because of the ability to pick the movie out online, or over the phone, the store doesn't need a retail storefront, which saves money. All you really need is a place where you can operate a kitchen, and store the movies; The lack of a good retail storefront would allow the business to expand rapidly, therefore reaching more customers. But the best over all benefit is convience for the customer, and customer service.
Limitations: Netflix already may have the online DVD rental market cornered. Being able to have more titles on hand than we would be able to. Other pizza places may have the market for the pizza delivery cornered in a way. Another thing that may limit the business is that because the usual "storefront" will not be used, it may be slow to start, and would require considerable marketing and or advertising for people to learn of and eventually try our service.
Stage of development: As far as timeframe goes, a suitable area that can be outfit with the correct equipment for making pizza, and is located in a place of dense population (a city or popular suburb of a city is the best starting point). Buying an existing pizza place is an option. Because DVD's are so small, the storing of them requires little more than a filing cabinet sorted alphabetically to handle thoundsands of titles.
Legal Restrictions: One must purchase the rights to rent DVD's from the corresponding copywrite holders. I'm not exactly positive of the steps one must take to do that, but it can't be all that difficult, seeing as "mom and pop" video rental stores have been around, and continue to flourish in some areas. The issue of expense may be a problem as well. There are also legal restrictions on how one must handle the use of credit cards over the internet, which would be one way that we would allow people to pay; the other way being the "classical" way that people pay for a pizza that's being delivered.
Insurance, etc: Insurance for the delivery people. Insurance for the kitchen would also be required. I'm sure there would need to be insurance for the DVD's never being returned, and the way that that would be handled would be up to debate (Credit card information on file, like blockbuster...etc)
Trends: Netflix is very successful. However most places that have gone up against netflix (BlockBuster for instance) have not done very well. I don't see this as direct competition with Netflix however, because it is a different format, for a differnet need that the customer has.
Production/Service Costs: It will cost money to produce the pizza, that includes the utilites that are needed to produce said pizza. Costs for delivery, as well as envelopes with prepaid postage and what not. Pay the cooking staff, the delivery staff, and the ones who take care of the internet side of the business/movies.