Technostore.pptxTechno store (value innovation analysis)
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TABLE OF CONTENT
Introduction.
The company’s present value proposition & value curve.
Applying ERRC.
New value proposition curve.
How the innovation is beneficial.
How the innovation is delivered profitably.
Business Model Canvas.
Five forces analysis.
VRIO analysis.
Product/Service trend analysis.
Conclusion
INTRODUCTION
There are around 10 major stores in Kuwait
The most famous of them are Xcite and eurika
Techno store is different from any electronic stores in Kuwait, it provides a lot of modern technology and services.
Technology is growing every year worldwide and techno store is looking forward for adapting these new technologies.
Value proposition of present companies
| Cost reduction | Service increase |
| Location Space Staff | Quality of equipment Hours of operation Technology |
Value curves of Xcite and eurika
Xcite location quality equipment staff price space hours of operation technology 4 4 3 2 5 3 4 eurika location quality equipment staff price space hours of operation technology 2 3 2 3 3 4 3
The new value proposition
| Eliminate | Reduce | Raise | Create |
| Shelves | Staff | Quality equipment | App for pickup purchase and delivery |
| Café | Interior decoration | Hours of operation | Security checks |
| Table counters | Self service reception | Vending machines |
New Value proposition curve
Value curve of techno
Xcite location quality equipment staff price space hours of operation technology 4 4 3 2 5 3 4 eurika location quality equipment staff price space hours of operation technology 2 3 2 3 3 4 3 techno location quality equipment staff price space hours of operation technology 3 5 4 4 4 5 5
How the innovation is beneficial for customers
Techno store aims to make a customer's life easier by:
Providing service 24/7 open store
Fully automated self service counter
Creates more space for more modern tech products
Offering modern technology and smart solution services for customers.
Our delivery service is by drone, its faster and less cost.
How to be delivered profitably
| Current expenses | New expenses |
| pace and location/ 1 branch (15,000 kd) Atmosphere and decorations (8,000 kd) Staff/ 20 (9,000kd) Regular equipment (13,000 kd) Hidden expenses (%5= 3,788 kd) Total= 48,788 KD | Renting a studio 3 floors (7,000 kd) Atmosphere and decorations (2,500 kd) Staff/ 9 (3,000kd) Vending machines (700 kd) Self service automated equipment- (10,500kd) Hidden expenses (%5 = 1,200 kd) Total= 24,900 KD Less by 65% |
Profit = Total sales – Total expenses
Dropping the expenses by %65 leads to increasing profit while raising sales or retaining it.
Business Model Canvas
| Key partners | Key activities | Value propositions | Customer relationships | Customer segment |
| Apple (supplier) Samsung Microsoft dji KFH bank (funding) Zain telecom (investor) Ooredoo (investor) | Finding 3 floor studio Interior design in tech theme Buying the equipment Getting the fund agreement/license Hiring staff (trainer manager) accounting/engineer) Creating marketing plan Finding Software developer | 24/7 in service Faster delivery time via dji drones Self service mechanical equipment Product and guid via app Software tips and measurements New/fast & easy Reasonable price | 25% Discount for the first client 15% Discount for students Membership promotions Feedback and contact (tell, email, social media) Community activities | Busy lifestyle Seeking modern technology Seeking spare parts Student/employee/ retired Income (200 and above) |
| Key resources Location Capital Staff / technology | Channels Mobile app Social media Direct sales |
| Cost Structure Software Advertisements and marketing Rent/salaries/equipment and tools maintenance | Revenue Streams Vending machines Direct sales 25% (1year package) starts at 50 kd |
The 5 forces analysis
Competitive rivalry
Techno store for electronics and service operates is a highly competitive environment
This force is stronger in the industry because there are many players
Supplier Power
Suppliers of electronics may increase the prices depending on the economic situation
The suppliers of electronics have increased their prices during COVID-19 pandemic
The suppliers of electronics generally have limited power to change the prices of electronics
Buyer Power
The customers in electronics industry have high power to bring prices down because of there are many electronics stores in the market
Electronics products are not rare and are highly imitable and this gives buyers power to switch easily
Techno Company has been able to keep buyer power down
The 5 forces analysis
Threat of substitution
Threat of substitution in the electronics industry is minimal and this has given the company an advantage
With minimal threat of substitution, the company profits may not be affected
However, profitability of the company may reduce due to intrusion of alternatives which forces the company to reduce costs
Threat of new entrance
There is a high threat of new similar businesses coming up to the same market
Electronics stores have spread across the environs where Techno Company operates and new ones are opening every day
This will affect the profitability of the business significantly
VRIO ANALYSIS
Value
Value is created through quality electronics and services by the company
The resources in the company are used to establish value
The available resources can be used to exploit an opportunity and neutralize competition in the industry
Rarity
Electronics gadgets and products sold by the company is not rare as there are other companies selling the same products
There is value but no rarity
Imitability
The electronics products sold by the company are easily imitable, i.e., other companies may wish to trade the same products
Since the products are imitable, there is a need to focus on other strategies to stay ahead of competitors
Organization
The company has well organized management systems
Processes are well organized
Good management of resources
Summary of VRIO analysis
| Core competencies | Value | Rarity | Imitability | Organization | Advantage |
| Brand image | Yes | Yes | Yes | Yes | Competitive advantage |
| Innovativeness | Yes | No | Yes | Yes | Temporary advantage |
| Customer relations | Yes | Yes | Yes | Yes | Competitive advantage |
| Product range | Yes | Yes | Yes | Yes |
Product/service trend analysis
There has been an upward trend in the performance of electronics industry
Kuwait consumer electronics market size is increasing rapidly as a result of growth in the adoption of wireless connectivity requiring various electronic devices.
Currently there is high demand of electronics in Kuwait as a result of advancement in technology, thus Techno Company will provide a solution
Majority of the population in Kuwait are youth with high consumption of electronic gadgets. This will also favor Techno Company
Conclusion
Techno store brings the world between your hand.
It offers a lot of new technology that the customer will be hyped about.
The only store to deliver packages through drones.
Being the only automated store in GCC providing the experience for the customer to enter a modern world.
References
Porter’s Five Forces of Competitive Position Analysis. (2021). Retrieved 13 July 2021, from https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html
Electronics Industry 2021 - Kuwait Market Research & Statistics (2021). Retrieved 13 July 2021, from https://www.reportlinker.com/ci02311/Electronics.html/coverage/Kuwait
VRIO Analysis. (2021). Retrieved 13 July 2021, from https://managementmania.com/en/vrio-analysis#:~:text=Corporate%20Strategy-,VRIO%20Analysis%20is%20an%20analytical%20technique%20briliant%20for%20the%20evaluation,%2C%20Rareness%2C%20Imitability%2C%20Organization.
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