Business Model

4

Summary of the business model canvas

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Summary of the business model canvas

In the business industry, considering partnerships are key for the success of a business. It is the plan of the business stakeholder to partner with other businesses in the same field. Generally partnering would see the business cover a wider market and access more customers as compared to not partnering. Additionally, a partnership is important for building and enhancing brand awareness (Mazzarol, 1999). Through such, there will be maximum marketing hence maximum sales. Similarly, there is a need to look into the cost structure of the business. The business majored in production costs, marketing costs, and distribution costs. Looking into the production cost is critical since it is from the production cost, that every other cost and related pricing values can be determined (Rosemann & Yom, 2015). On the same note, the distribution and marketing cost equally form part of the business's most important costs. Generally, the most expensive resources in the business include raw materials and production equipment.

Significantly, the business key activities required by the value proposition to be carried out internally include improving various products and related service performance, incorporating relatively fair pricing strategies, ensuring product convenience and brand marketing. Generally, these activities are within the reach of the business to ensure the smooth operation of business activities. Notably, good service performance will enhance customer relations, ensuring accessibility will improve product distributions, and marketing and sales would result in more revenue streams (Buttle, 2004). Additionally, the key resources necessary for the business value proposition are employees, expert knowledge, plant, and related equipment. Generally, value propositions deal with the reasons why various customers prefer certain businesses to others. This sets in as a result of better performance in services and products, good customer relations, and fair pricing strategies. Therefore, all these activities can only be carried out by employees with expert knowledge and purchasing plant equipment.

Concerning value propositions, the business delivers goods and services of high standard and quality. Significantly, this is through better performance and maintaining a good customer-employee rapport (Biazzo & Filippini, 2021). Currently, the unmet needs of the customers is satisfaction. The business is working on the problem to ensure maximum satisfaction for the customers majorly through improved performance on the specific customer complaints. The target audience, therefore, expects the business to ensure an interactive relationship with its customers (Osterwalder et al., 2014). Ensuring interactive relations provides the best platform for customer expressions and complaints. Equally, the audiences expect quality product and service performance.

Generally, the business audience prefers to be reached through the business eCommerce platform and the marketing personnel. Reaching customers is crucial in the business setup as customers are the backbone of any business. The two channels work best in communicating with, many customers as they cover a wider market scope. In line with customer segmentation, the business categorizes the customers in terms of their behaviors. The behaviors of the customers convey so much information to the business (Dibbs & Simkin, 2014). Through the analysis of customer behavior, the business can adjust accordingly where necessary for better results and sales. The two channels can be incorporated into the audience routine by teaching the audience how to use the eCommerce platform. Finally, on the revenue, each revenue stream contributes 20% to the total revenue. The customers pay through cash and business number. Significantly, the reason for selecting these key elements for the business is that they form the core operations of every business.

References

Biazzo, S., & Filippini, R. (2021). Creating the Project Value Proposition. In Product Innovation Management (pp. 107-130). Springer, Cham.

https://link.springer.com/chapter/10.1007/978-3-030-75011-4_7

Buttle, F. (2004). Customer relationship management. Routledge.

https://scholar.google.com/scholar?cluster=8605698333591497577&hl=en&as_sdt=0,5

Dibb, S., & Simkin, L. (2010). Judging the quality of customer segments: segmentation effectiveness. Journal of Strategic Marketing, 18(2), 113-131.

https://www.tandfonline.com/doi/abs/10.1080/09652540903537048

Mazzarol, T. (1999). Partnerships—A Key To Growth In Small Business. Journal of Enterprising Culture, 7(02), 105-125.

https://www.worldscientific.com/doi/abs/10.1142/S021849589900008X

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want (Vol. 2). John Wiley & Sons.

https://books.google.co.ke/books?hl=en&lr=&id=LCmtBAAAQBAJ&oi=fnd&pg=PA8&dq=Key+activities+in+value+proposition&ots=e8m2e8bxiV&sig=Jki_2jv6xyEahj83DypJkNdSlys&redir_esc=y#v=onepage&q=Key%20activities%20in%20value%20proposition&f=false

Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer, Berlin, Heidelberg.

https://link.springer.com/chapter/10.1007/978-3-642-45100-3_5