Management HW

Deliverable 4

Business Model---Value Chain

A. Primary Activities:

Inbound logistics: It involves the acquisition of all the components added to the final product. These are gotten from various suppliers. In this case, the only component that is required is software used to develop the car recognizer app.

Operations: These are all the activities that are required to develop the final product. In this case, the activity that is required is programming.

Sales and Marketing: Represents the promotional activities that are required to ensure that its target audience knows the product.

Service: Involves the after sales care given to users of the application.

B. Support Activities:

Technology development: The product is an application to be installed on the customers’ mobile devices.

Human resource management: the human resource requirement for this product is minimal.

Resource procurement: there are minimal resource requirement to ensure that the product is operational. After development of the program, it will need partnership with Google apps and after that; it will be accessible via the mobile handsets of the clients.

Component of an Effective Business Model

A. Core Strategy

· Business Mission: To offer customers a convenient way to locate their cars

· Product/Market scope: the market for the product is any body with a car, based on its features; the product will be very useful to them.

· Basis for differentiation: given that there is no competition for the product currently, there is no basis for differentiation.

B. Strategic Resources

· Core competencies: This is the ability of the car recognizer app to perform as expected.

· Strategic assets: These are the mobile devices that potential customers will have, since the app will have to be installed in their mobile phones and activated with a fee.

C. Partnership Network

· Suppliers: important suppliers are the network providers. Their data capabilities will be essential to ensure that the product is operational.

· Partners: an important partner to make this product a reality is Google maps. It will provide the direction that people need to get to their cars.

· Other key relationships: The most important relationship concerning the business is the programmer who will develop the app itself. They will ensure that it runs efficiently and in case of any defects that may arise, it will be their duty to rectify such issues.

D. Customer Interface

· Target customer- Generally, the target market are people who have cars. This is because, at one time or another, they will visit a facility with a large parking lot. At such a time, the app will come in handy to help them locate their car.

· Fulfillment and support-To ensure that any issues are dealt with urgently, there should be a customer service agent at all times.

· Pricing structure: based on minimal resources that are required to develop this product, the pricing will be low to attract many users.

The organizational structure that I selected would be Sole Proprietorship for some reasons. First of all, the product that I am currently working on is an app called Car Recognizer which indicates that the expense of an app is not going to be very costly. Second, all I need in order to create this app is a programmer and partner up with google map. Third, this type of business ownership will ensure that I maintain full control of the business.

Service

Sales &

Marketing

Inbound

Logistics

Operations

Resource procurement

Human resource management

Technology development