Reference no: EM133519250

The service that I am proposing would be providing childcare for parents outside of daytime hours. There are various options available to parents during the day, such as drop-ins and traditional daycare, but those services typically close around 6:00 pm with strict policies around being late. In City M, the only options for childcare in the evenings would be a nanny, babysitters, or family and friends. Nannies can be expensive, and parents can sometimes feel uneasy about not knowing if the people they are leaving their children with are good caretakers. It has come to light that only 63% of the demand for care for children under four is being met, which is a cause for concern for families in the region. Access to a wider and more flexible range of programs, including extended hours and weekend care, is needed. However, parents often struggle to find suitable programs that meet their needs. To address this issue, this business aims to provide solutions for parents in the region and eventually partner with the Early Years and Child Care system of City M after a successful proof of concept period.

The main concept of the business is that it would offer those who currently work in daycare the opportunity to work evenings and weekends watching children. If they are proven resources for daycares, they would be known entities to parents. The workers could set their own prices and the parents can decide if they are in a position to abide by those prices. The parents would only see the bill rates which would include mark-up for business operations and the rate to the worker. This system would only support workers who have been verified to currently work in a daycare facility.

1. Does demand appear to be relatively elastic?

2. Does the product appear to be price elastic? Price inelastic? What does this imply about pricing?

3. Is this a necessity? Luxury? Do consumers appear to be sensitive to price changes? How could we find out?

4. Who would be the "demanders"? Households? Individuals? Other businesses? How many of them are there?

5. If customers are individuals (as opposed to business), do demographics suggest that incomes and lifestyles are consistent with a business of this type?

6. Does the social environment support a strong consumer base

7. What is the impact on quantity demanded, quantity supplied, and prices?

8. Are any of the factors that you identify expected to change? If so, what would be the impact on demand and supply?