Executive Summary
Due to situations like the COVID-19 pandemic, which led governments to enforce measures such as social distancing and lockdowns, the direct sale of farm products from farmers to households has become essential. Additionally, with the growing demand for locally grown organic produce, households can ensure that their food meets sustainability standards. Therefore, the farm app startup aims to connect farmers with household buyers, ensuring fresh farm produce reaches its destination efficiently.
This report is divided into four sections: analysis and diagnosis, strategic options, strategic initiative, and competitive advantage. In the analysis and diagnosis section, the report begins with introducing the startup idea, in this case, the farm app, with its main objective being to find novel approaches to linking producers with consumers. The PESTLE analysis established that the farm app will succeed in the macro-environment because of the UAE’s favorable factors for startup businesses. The inter-organizational environment that may affect the adoption of the farm app is comprised of stiff competition and the threat of substitutes among Porter’s five forces.
For the customers and the organization’s analysis, it was established that the farm app idea would revolutionize how UAE farmers connect to consumers, such as households in the B2B model, by providing them with a platform to sell their produce directly to end-users. In the subsequent section, two strategic options were prominent for the farm app startup idea. For instance, product differentiation was the strategy of choice as the farm app’s aim is to ensure that it commercializes how the farmers connect to the consumers.
In the corporate-level strategy, backward vertical integration was the strategic option because the farm app was meant to shorten the supply chain by cutting off the retailer/supplier from the normal supply chain, thus delivering value through innovation. Therefore, the farm app will provide a competitive advantage in the UAE market. In this case, the government of UAE should continue with its food security initiatives as they provide an edge to new upcoming startups like the farm app in the market.
Analysis and Diagnosis
Farm app is a tech startup idea based on a trading platform and a mobile application to help farmers network with potential buyers and other interested parties. The goal of the farm app will be to provide a one-stop shop for farms and customers in the United Arab Emirates (UAE). Farmers can promote their farming operations and the products they sell by creating accounts on the app. They could boast about the eco-friendliness of their fields and the high quality of their produce by posting pictures, videos, and written explanations.
However, consumers can use the program to search for locally produced organic food that meets their specific requirements. They will narrow their inquiries by selecting specific criteria like item category, store proximity, and budget. Customers will be able to read scores, comments, and reviews from other users before making a purchase.
Furthermore, farmers will connect with buyers, sellers, and each other through the farm app. With regard to B2C, all UAE households, hotels, and restaurants will be key customers as they require direct connections from farmers for their businesses. The market for the app will be city hotels, restaurants, and guest houses located in the major cities of UAE: Abu Dhabi and Dubai.
In addition to connecting farmers and consumers, the farm app will also provide several services to foster the development of the agriculture market in the UAE. For example, it will support a higher output market by disseminating agricultural knowledge and higher profits by mitigating price and demand gaps in information (Malnight, Buche, & Dhanaraj, 2019). In this way, a digital community will be established where buyers and sellers can initiate deals without ever meeting in person.
Macro-Environment
The macro-environmental factors will affect the farm app in various ways. Managers of agricultural multinational enterprises must understand the macroeconomic factors and their influence on the enterprises’ performance, in this case, Farm App Co. This section focuses on the following macroeconomic factors: political factors, economic factors, social factors, technological factors, legal factors, and environmental factors.
Political Factors
Regulations imposed by governments on private sector organizations are examples of political factors. In the UAE, for instance, the government has implemented food security efforts by providing financial aid to farmers. In addition, organizations in both the public and commercial sectors are encouraged to work together to reduce food waste and promote more responsible consumption via a program called Ne’ma (which translates to “blessing” in Arabic) (Food Security, 2023).
The agricultural industry in the UAE is so important to the country’s economy that on June 28, 2020, the UAE Cabinet adopted the National System for Sustainable Agriculture to boost farm productivity, increase food security, and open up new market niches (Food Security, 2023). This means the farm app will conform to the standards of the Food Tech Challenge. The Food Tech Challenge encourages the creation of novel approaches to food production and management (Food Security, 2023). The initiative urges the UAE to achieve long-term food security by using cutting-edge technology and effective tools and approaches in the agriculture sector, a move that aligns with the farm app’s current startup idea.
Economic Factors
The economic situation in UAE, at some point, has been hinted at being favorable for business activities and agricultural growth. According to FAO, in the United Arab Emirates, cereals production in 2020 was 15,978 metric tons (as cited in Agriculture Market, n.d.). Similarly, fruit production amounted to 361,471 metric tons, and vegetable production stood at 233,009 metric tons in 2020 (as cited in Agriculture Market, n.d.).
Along with this, according to the Research Institute of Organic Agriculture, the organic farming area in the country has increased by 15% from 4,687 hectares in 2017 to 5,419 hectares in 2020 (as cited in Agriculture Market, n.d.). This is due to the increasing demand for organic products, which is one of the reasons for the country’s development of the agriculture sector. With the government prioritizing the production of fruits and vegetables, agricultural produce will show positive growth.
Social Factors
Social factors of a nation indicate cultural sensitivity, which is paramount in the business sphere within a country. The UAE people live with extended families, which will make the purchase order size from the farm app bigger, hence the increased projected profit. In addition, mobile and Internet penetration in the UAE is very high, which allows most people to have access to the Internet and guarantees their awareness of online shopping (Abbas, 2022).
However, farmers lack marketing tools and communication channels as they sell their produce through retailers. This reduces the freshness of agricultural produce before it can reach the consumers. Therefore, the farm app will solve the farmer’s protracted problems by offering them a customer base that can be reached with just a click of a button.
Moreover, most UAE citizens have a high standard of living, a Western lifestyle, and consistent increases in financial positions, which affects the quality of agricultural products they want to consume. In this regard, with such a high standard of living, the majority are interested in and can afford organic products from the agricultural sector. This affects farming methods, which, in turn, reinforces the viability of the farm app. In this case, the farm app will be customized and look to increase uptake by both B2C and households.
Technological Factors
The UAE has begun a satellite initiative to advance regional space development. The space program receives 5.2 billion dollars in funding each year from the government (Givens, 2022). Information and communication technology, nuclear science, and biological sciences are important expansion fields. Emirati citizens spend an average of 4.35 hours per day on social media, making them among the most engaged in the world online (Abbas, 2022). About 82% of the population has a social media presence, and some of the most well-known social media sites are Tumblr, Pinterest, LinkedIn, Instagram, YouTube, and Twitter (Abbas, 2022).
Since the Farm App Co. output is smartphone software, it is expected to receive widespread adoption among farms and other interested parties. Moreover, with free WIFI in metro and malls, households will have increased access to the farm app. With the presence of ‘Etisalat by e&,’ a multinational telecommunications service with a high number of subscribers, the farmers will be able to connect with the consumers.
With a young tech-savvy nation, the farm app will offer a range of services to support the growth of the agriculture market in UAE (Abbas, 2022). Moreover, with such technological factors, household members will easily connect to the app without problems. Thus, more farmers’ products will reach the right destination in time.
Legal Factors
The UAE has reduced trade duties and removed trade obstacles to facilitate efficient worldwide operations, unlike many other Islamic nations. As a result, more and more businesses and financiers came to the area to take advantage of the prospect (Nurmohamed, 2020). Several programs, rules, and regulations have been enacted by the UAE and its seven emirates to encourage more international business (Nurmohamed, 2020). Policies to promote Emirati business and increase labor force involvement include immigration changes to entice and keep foreign professionals (Nurmohamed, 2020). The reason for the immigration changes has been to establish new international economic alliances, massive investments in strategic sectors, and other related measures.
The nation also recently passed expansive legislation to modernize the country’s legal framework. Among the many goals of these changes was to improve the legal defense of intellectual property, patents, trademarks, and citizenship (Nurmohamed, 2020). Personal data processing across the state is governed by the country’s first federal data security law; subsequent legislation will address data processing in the public, private, and healthcare sectors.
Restrictions on mergers and acquisitions have been lifted under the new Commercial Companies legislation (Nurmohamed, 2020). Companies’ logos, goods, inventions, and trade names are afforded broader legal protection under the federal copyright law, which includes security for nontraditional trademark designs (Nurmohamed, 2020). For this reason, the copyright problems that have plagued similar apps like the farm app will be resolved.
Environmental Factors
The UAE has achieved remarkable economic success due to numerous environmental variables. Desertification, land deterioration, air pollution, garbage pollution, mining, groundwater shortages, carbon emissions, and commotion from buildings are some of the environmental issues caused by the increase in human population (Alexander & Cafiero, 2020). Thus, the farm app can potentially change how producers and customers engage in the UAE by tackling environmental issues.
The app will aid in expanding the farm market and advance environmentally responsible and nutritionally sound eating habits by providing a venue for selling locally produced organic produce. By increasing demand for food produced in one’s region, this strategy can also help cut down on the greenhouse gas emissions caused by importing food from distant places. This will be consistent with Goal 7 of the United Nations’ 17 Sustainable Development Goals, which focuses on making renewable energy accessible to all (UN, 2023). The software will also transform the industry by helping more people achieve objective Goal 8 of the United Nations’ 17 Sustainable Development Goals: respectable employment and economic development.
Investments made through the farm app will adhere to the Global ESG Disclosure Standards. The app’s goals, investment strategy, and care actions will all take environmental, social, and governance (ESG) factors into account, as well as worldwide optional guidelines for revealing (“IFRS Foundation,” 2022; “CFA Institute,” 2021). For instance, the Farm App’s investment manager will be required to provide information detailing where and how often investors can access full and up-to-date copies of all policies governing the care activities associated with the investment product.
Inter-Organizational Environment
When Michael Porter first released his Five Forces Study of Industries in 1980, it was easy to identify rivals, vendors, consumers, and alternatives within each market (Porter, 1980). However, company boundaries are merging in today’s global economy, and many startups fail due to bad marketing and failure to specialize (Bruin, 2016). As such, Porter’s five forces were implored using the diagram below to visualize the inter-organizational environment (see Figure 1).
Competition in the Industry
Competition from established companies poses a risk to producers of agricultural applications, as this rivalry will likely reduce the market share held by established players. Lower earnings are another consequence of higher conflict in prices, and the variables mentioned above indicate the competing magnitudes. Competition in the industry will affect farm apps in two ways: the number of competitors and the quality of the product offered.
Number of Competitors
Right Farm, The Platform, and FreshOnTable are just a few of the 63 AgriTech companies operating in the UAE. Hotels, eateries, chefs, online kitchens, and culinary colleges are just some examples of businesses that benefit from the connections made by Right Farm (Food Supply, reimagined, 2023). For The Platform, customers can schedule future dispatches for any time and date they like using the website. Both iOS and Android users can download the smartphone software.
Regarding FreshOnTable, the online platform links consumers and regional farmers. It is a new company located in Dubai that is leading the way in supporting farming sustainability. In this regard, since the existing apps provide almost similar features, the competition will be stiff. However, the farm app will succeed within the competitive environment because of its projected ability to connect farmers directly to household consumers, unlike the majority of rivals connecting businesses to the household, which is the reverse of the farm app.
Quality of Products and Services
In order to gain a larger client base and increase their market share, firms are also encouraged by competition to raise the quality of the products and services they provide. Quality may refer to a variety of things, including goods that are more durable or perform better, superior customer service, after-sales support, and technical assistance. The majority of farm apps in the UAE adhere to sustainable practices. However, because of some dominant firms and market power, such as Right Farm, they have increased the prices they charge farmers for using their app. There will be insufficient competitors for the farm app idea as it looks to charge reasonable prices from farmers to connect them to farmers. Besides, it will offer quality services to consumers as it will serve local organic farms in the UAE to ensure the freshness and quality of the products traded on the platform.
Threat of Existing Substitutes
The presence of a product that the customer can buy instead of the industry’s offering is the threat of substitutes. A replacement product is one that comes from a different industry but nevertheless provides the customer with some of the same advantages as the product made by companies in that area.
For instance, Right Farm App is a substitute product for farm apps in the UAE as it provides a one-stop shop by employing anticipatory technology to make navigation, operations, and purchases easier by consumers directly from farmers (Food supply, reimagined, 2023). The app also sets a cap on the prices it provides to the farmers to link them up with consumers, thus generating substantial profit. Though it does not provide fresh products from the market, its service quality may be luring consumers. In this case, demand for agricultural products, with or without freshness, may decline as a result of the need for alternatives.
Another substitute in the UAE market that can threaten farm apps is the Farmin App. The app offers AI-powered agricultural surveillance tools. It can also analyze satellite imagery in the firms to provide information regarding crop health, the status of individual areas and predicted problems, the discovery of diseases, and more (Farmin, 2020). As such, consumers may prefer purchasing directly from the firms through the Farmin app as it uses a high-level technology such as AI.
Lastly, the FreshOnTable app is an existing substitute that consumers may use instead of the farm app in the UAE market. This app delivers its services to farmers by enabling price-friendly sign-ups and registrations (Nag, 2020). As such, it will become harder for the farm app to turn a profit as the price-performance alternative provided by replacements becomes more alluring.
Threat of New Entrants
The use of apps to conduct agricultural business poses a moderate to low danger of new entrants. Significant initial funding is required to bring a new agricultural device to market. In addition, it is difficult for a newcomer to secure permits, insurance, marketing networks, and other prerequisites (Nurmohamed, 2020). Existing companies, such as Right Farm, are also likely to have accumulated a wealth of knowledge over time that can be leveraged to lower costs and improve service. This will affect the possibility of the farm apps entering the UAE and posing a market share similar to those already in the market, such as Farmin, Right Farm, and FreshOnTable.
Moreover, the farm app does not have the actual business resilience and knowledge as it is still a startup idea and has not been actualized. However, according to Nurmohamed (2020), new opportunities are arising as a result of the deregulation of market access to UAE farms. In this regard, the farm app will not face the threat of new entrants within the UAE market dynamics.
Determinant of Buyer Power
Buyer bargaining power affects the customer’s series and prices of goods sold to consumers. According to Porter (1980), buyer bargaining power is the pressure customers have on firms to improve product quality, customer service, and pricing. With a tech-savvy nation like the UAE and strong online shopping abilities, UAE consumers are considered strong buyers. In this case, they will pressure the farm app to lower their prices, if at all they will be high, and also ensure that the product is of high quality. Consequently, the farm app will have to deliver more and better service to counter the strong buyer power in the UAE markets.
Determinant of Supplier Power
If farmers experience a shortage of basic materials, their vendors may raise prices or try to bargain for lesser quality for the agricultural goods they supply. Both traders and farmers are important players in the agricultural supply chain. Winter is a good time to negotiate when moisture results in fewer crops (Food supply, reimagined, 2023). As such, farmers often experiment with nontraditional means of crop cultivation (Moglia., 2020).
In this scenario, new agricultural food is more expensive for merchants to acquire. Despite this, many consumers will welcome farm app technology because sellers in the UAE market have little authority. In this case, the app will alleviate the bottleneck in the supply chain. An overview of Porter’s five forces, which examines the dynamics between businesses, can be found below.
Analysis of Customers
All UAE producers who seek connections to end users will make up a sizable portion of the farm app’s clientele. Here, Farm App Co. will link smallholder farmers to the market at a low cost and a reasonable time, all while increasing transparency and confidence in the agri-business value chain. Clients outside the UAE, like Saudi Arabia, Kuwait, and Bahrain, will become more viable in the future as a result of technological development.
The users of Farm App Co. are analyzed and diagnosed using the Means-End Chain Theory (MEC). Decision-making and customer behavior can be better understood with the help of MEC, a value-based, cognitive paradigm (Olson & Reynolds, 2001). It establishes a bridge between a product’s concrete features (the means) and consumers’ evasive and ethereal ideals (the goals) (Olson & Reynolds, 2001). The MEC-based client value proposal template for this industry is provided in Exhibit A (see Table 2)
Using the ESG goals, the Farm App will address three objectives. On Environmental objective (E), the goal of SDG 13 – climate action is an attribute addressed through sustainable food and reduced food travel to address CO2 emission. On the social (S) attribute, the value of SDG 8– decent work and economic growth is ascertained by the app by increasing farmers’ profits through a large portfolio of customers. Thus, it guarantees employment for their workers with decent salaries. Lastly, through the governance attribute (G) of value SDG 9- industry, innovation, and infrastructure- the app will increase the country’s technology by reducing the delivery time of farm products to customers.
The Organization
Purpose
With such situations as the COVID-19 pandemic that promoted the government to initiate such actions as social distancing and lockdowns, sales of farm products directly from farmers to households is a necessary undertaking. Furthermore, with the need for locally grown organic produce, households can only be guaranteed that what they eat meets sustainability standards. Therefore, the farm app startup idea aims to bridge the gap between the household’s buyers and the farmers by ensuring that farm produce reaches designated places when it is still fresh. In addition, with increased logistics and quality issues, the farm will provide quality control, market services, and logistic support, thus helping farmers to increase their production, improve the quality of their produce, and expand their customer base.
Mission Statement
Farm App Co. will be an Emirati startup that connects producers with households’ buyers in the agribusiness industry.
Vision
Farm App Co. App’s long-term goal is to shake up the traditional farming-to-consumer food distribution system. To ensure that their consumers always have access to the goods they need and that businesses can interact with farms whenever it is most practical for them, Farm App Co. will be a technological enterprise that combines the local and worldwide supply of food through an online and B2C purchasing network. Business-to-consumer clients in the UAE include eateries and motels, while the company’s B2B clientele includes all agricultural producers.
Strengths, Weaknesses, Resources, and Core Competencies
Farm App Co. will possess a wide variety of tools and assets. An organization’s resources are its material possessions, while its powers define its actions. Grant (2022) argues that businesses can differentiate between material, immaterial, and human assets (Grant, 2022). In this scenario, the company will reach out to farmers with smartphones and access to a Short Message Service to give them inventory notifications via a novel blockchain-enabled technology. The same blockchain-based notice will be sent to businesses that use agricultural products, like eateries and motels, to prompt them to place an order.
The synchronization between the customer’s real data and the Farm App Co. App will make the rollout of the business idea feasible. Also, valuable, rare, inadequately imitable, and organizationally integrated (VRIO) resources and skills help businesses gain a competitive edge (Barney & Hesterly, 2019). As a result, the Farm App Co. is in a stronger position to attract both farms and consumers thanks to the breadth and depth of its resources and skills. While many companies provide this service, the farm app allows customers to see exactly where their food comes from, making it easier to adhere to environmental goals.
The VRIO architecture presented below provides an overview of the available tools and possibilities. Farm App Co.’s projected B2C focus will make the rollout difficult and time-consuming. However, no UAE-based company currently connects farms with households and facilitates app-based sales to its consumers. Since the farm app will be based on blockchain technology, it will be a scarce and valuable resource that will promise great improvements in accessibility and speed of service.
Background Experience and Skills
My undergraduate background in business and marketing has equipped me with the analytical tools necessary to scrutinize the foundations on which agribusinesses rest. The software will also serve as an instrument and tool for me to guide the business in the right direction. All work will be done on a consulting basis, so all concepts will originate from me.
Two Strategic Options
Companies in the mobile device apps industry confront age-old strategy issues, regardless of whether they have transitioned into this sector (like Google) or started from scratch. The strategic management method is the means by which such inquiries are resolved. A company’s strategy can be thought of as its underlying idea for gaining an edge in the marketplace (Barney & Hesterly, 2019). Strategic advantage can be created through a series of consecutive studies and decisions that make up the strategic management process (Barney & Hesterly, 2019). The Farm App Co. is a startup that is exploring product distinction based on business-level strategy.
Product Differentiation as a Business Strategy
The Farm App product line is identical to that of competing companies across the country. The farm app’s tactics are visualized with the help of Osterwalder and Pigneur’s (2010) Business Model Canvas. A strategic management tool for creating new business models and cataloging current ones is known as the business model canvas (“Business model canvas”, 2023). With components defining a company’s or product’s value offering, infrastructure, consumers, and funds, it provides a graphic map. By highlighting possible trade-offs, it helps businesses coordinate their activities (“Business model canvas” (2023).
Product differentiation serves as the strategic model’s primary framework for this project’s farm app. This tactic is appropriate in the context of the farm app since significant advancements in value-added agricultural production and marketing allow farmers to choose the practice of product segmentation based on characterization and quality traits. Innovative short-food supply chains, localization, authenticity, and preservation of geographical origin will all play a role in differentiating value-added products for farm apps. When local farmers access the broad customer base made possible by the farm app, higher product pricing provided by authenticity, transparency, and direct marketing and sales will benefit them.
Furthermore, locally produced food may help businesses stand out from the competition and boost revenues. Fresh produce, fruits, heritage breeds, and organic goods are high-quality niche items that allow farmers to tap into local customer potential while avoiding lengthy value chains and worldwide marketplaces. In this case, variations in product design, such as app features, arrangement, farmers’ output rating, and sustainability labeling, are depicted graphically in Exhibit C below (see Table 4).
Vertical Integration as a Corporate Strategy
When a company engages in multiple sectors at once, it employs what is known as a “corporate strategy,” which is its plan for achieving an economic edge. As defined by Barney and Hesterly (2019), vertical integration refers to the extent to which a company controls the entire value chain within its own walls. Since Farm App Co. bypasses traditional middlemen like vendors and intermediaries in favor of dealing directly with farms and farmers, the business operates using a reverse vertical integration model. In reverse vertical integration, a company takes on responsibilities that were previously handled by other firms higher up the supply chain (Barney & Hesterly, 2019). The business plans to keep output and demand steady through reverse vertical integration and a blockchain technology app.
Below is a synopsis of Farm App Co.’s reversible vertical integration (see Figure 4). The backward vertical integration will be applied to the farm app by providing a farmer’s profile within the app features. Approved farmers will register to add their products directly from the farms. On the other hand, consumers will be allowed, through a login, access to the farmer’s profiles, where they will be able to review, search, and add to the cart the products they want to be supplied to their households. Through this, the farm will break the distributors’ supply chain by providing logistic support.
Strategic Initiative
The decision matrix’s primary strategy option involves differentiating products through strategic initiatives like Value Innovation. Chevallier (2016) states that in order to construct a decision matrix, one must first determine the criteria by which choices will be evaluated, as well as the criteria’s measure and respective weight. The display below shows a typical achievement gauge used as a decision matrix indicated in Exhibit B (see Table 2). Services, quality, reliability, stability, expertise, and company reputation are some of the factors used to evaluate the selection grid. The designated factors were ordered, with six being the highest and one being the lowest.
In this case, the factor of service was rated the highest (n=6) and the company’s image the lowest (n=1). The Farm App Co. was the top pick because it facilitates communication between farmers and both retailers and direct consumers in B2B and B2C, respectively. In addition, the decision matrix of quality of service and expertise is followed closely. This was due to the fact that providing excellent services that satisfy the needs of clients in the UAE using Blockchain technology necessitated a high level of specialized knowledge.
However, FreshOnTable was rated highest among its rivals, followed by Right Farm and then The Platform. The businesses were ranked based on how well they met the consumers’ wants, needs, and worries. Compared to the competition, FreshOnTable already offers all the features that Farm App Co. plans to introduce. However, some tweaks are needed, such as the addition of on- and off-farm order administration, which Farm App Co. will integrate.
From the above analysis, the best strategic initiative to adopt in Farm App Co. is value innovation. According to Michel (2022), through a process known as “value innovation,” businesses seek to differentiate their products from the competition while keeping costs down. Changes made through value innovation add new features to or build upon an existing product or service and save money by doing away with wasteful processes at various points in the product’s lifespan (Reeves, Haanaes & Sinha, 2015). In this case, using shaping strategy, the value innovation ensures that the product is aligned with the environmental demands.
The exceptional opportunity for a company to shape or reshape an entire industry at the outset of its growth before the regulations are written or revised arises when the environment is uncertain but pliable. Lafley and Martin (2013) argue that managers must work together to seize such a chance because no person can single-handedly mold an entire industry. Therefore, errors in the supply value chain impact major consumers of farm produce. Using Brandenburger’s (2019) creativity-enhancing tool of combination, which focuses on connecting properties of a business idea, a farm app is used to connect farmers and businesses. This will provide a competitive edge to the farmers connected to the app compared to those who are not connected.
Competitive Advantage
Competitive advantage is novel because it offers convenience to farms by acting as a one-stop store. As such, startup firms need others to help shoulder the burden of risk, provide complementary skills, and launch the new market before rivals. Given the early stages of industry development, firms must navigate tough economic times.
Moreover, with the involvement of numerous parties, they must impact but cannot completely control; a shaping business must function under a high degree of uncertainty. In the shaping approach, as discussed above, businesses work with other partners to develop a common future goal at the appropriate moment (Hambrick & Fredrickson, 2001). They create a vehicle through which they can coordinate cooperation, scale that platform while keeping its adaptability and variety, and finally advance both it and the partner environment it is connected to.
However, competitive advantage gives farmers an edge on the rivalry by letting them sell their products while they are still in the firms. The strategy also gives the farmers the ability to set prices based on an analysis of their own production costs (Grant, 2022). Virtual advertising allows farmers to reach more people and expand their customer base.
Farmers can also seek advice from agricultural experts and their peers by posting queries online. Farmers promote their products by photographing and selling them online straight from the field. Through the site, they can access a plethora of agricultural knowledge and even pose queries to seasoned professionals.
Using the 3 Horizons by McKinsey, the profit matrix will comprise the metrics in Horizon 1 (Return on Investment Capital (ROIC), Net Present Value (NPV), and Option Value), the People in Horizon 2 (Business maintainers (owners), Business builders (farmers, buyers), and Visionaries (project owner)), and Capabilities in Horizon 3 (Baghai et al., 1999). The capabilities will involve the platform, acquisition of the platform, and uncertainty of the platform and its usability. A summary of the 3 Horizons is as indicated below.
Table 1. Farm App Horizons.
Farm App Co.’s projected enormous social media followings will provide producers access to a large consumer base in Horizon 2. The concept has been refined and updated in response to user feedback and the evolving nature of the market (Grant, 2022). The favorable ICT environment will hasten adoption, particularly the widespread use of mobile phones in the UAE, which will better position the company to weather the impending technology upheavals in the future AS compared to Horizon 3.
With Farm App Co.’s introduction in UAE, the company intends to remedy the void in communication between producers, service providers, and marketplaces, as indicated in the first horizon. This will allow producers to receive up-to-the-moment guidance on what supplies to use, where to go for development services, and how to sell their goods. At the same time, the network connects merchants and consumers directly with farmers, allowing the latter to better acquire their goods while also learning more about the sustainability of the fields from which they come, thus, establishing a competitive advantage over the existing potential rivals.
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Exhibit A
Exhibit B
Exhibit C
