Consumer Market Problem and Business Idea
Discuss About The Industry Transformation Toward Service Logic.
Organico is an Australian Company that will have its business operations in offering organic food and beverages. The company is an efficient organic infant formula producer. This company will offer organic food products for young children that offer formula and toddler cereals, rusks and milk drinks along with ready to serve baby foods (Editorial, 2018). The objective of the paper to evaluate the explanation of the consumer market problem based on which the business Idea will be generated. Moreover, focused on the business idea the business model canvas for this company will be developed along with explaining the critical success factors considered for execution of Idea. Moreover, feasibility of this idea will be evaluated for better functioning of the business.
Organico is an Australian Company that will have its business operations in offering organic food and beverages. The company is an efficient organic infant formula producer. This company will offer organic food products for young children that offer formula and toddler cereals, rusks and milk drinks along with ready to serve baby foods (Editorial, 2018). Consumers of Organico are dealing with several issues concerned with offering healthy food to their children (Caetano et al. 2015). Addressing such market problem, Organico has developed list new business idea of developing the new organic product such as toddler cereals, rusks and milk drinks along with ready to serve baby foods. Considering the increasing demand of healthy food options, Organico has developed a business idea of increasing its organic food options in all its stores that can promote consumers healthy eating. The company can implement strategies of providing the value-added services relate its organic food offerings in consideration to the input expenses. The company is observed to deal with several downside risk factors focused on financial, strategies, compliance along with operational risks remains within online and retail markets (Joyce, Paquin & Pigneur, 2015). Strategic factors including food waste, diversity, organic product packaging of the brand, carbon emission as well sustainable and ethical sourcing can pose issues for Organico that is dealt by the company(Joyce, Paquin &Pigneur, 2015).
Business models canvas of Organico signifies the performance of the company’s performance by means of nine associated factors mentioned in the business model (Lüdeke-Freund, 2014). Such relationships, partners, customer relationships cost structure, segments as well as revenue streams. It was also evaluated that from the business model canvas of the company that increased focus is on retail and financial services provision within middle and upper income groups. Through employing every value propositions, it intends to offer better consumer relationships. This is carried out by means of organic food strategy, human resource and price strategies. Organico employs every major partner as well as activities in improving the business effectiveness for turning out to be cost effectiveness. Organico is developed in a manner that all the aspects of the business canvas is focused on offering consumers with exceptional shopping experience yearly (Naggar, 2015). The channels along with cost structures of Organico are associated together for obtaining high revenues from higher consumer group. Such factors of the company’s business model canvas consider people, customers along with strategies of value proposition. Based on its strategies value proposition along with the major partners is decided. Moreover, within the company’s strategy of value proposition along with key partners, the company has focused on distinct consumer focused strategies. This is due to the reason that it remains informed regarding selection of health food (Viljakainen, Toivonen & Aikala, 2013).
Business Model Canvas of Organico
An efficient business model canvas is prepared for the new business Organico that intends to operate within infant organic food industry. This also facilitates in recognising several progression prospects within the new business idea. It also facilitates in recognition of the key activities, key partners of the new business along with value proposition and key resources that can facilitate in dealing with the change of preferences and needs concerned with the consumers. The proposed business canvas mentioned in Appendix 1 also facilitated in recognising the segmentation and cost that are experienced by the organization. This can facilitate Organico in recognising the needs along with future transition prospects that are decide by the business in attaining success within the market. The idea of such change relies in trend change within the market along with consumer preferences that impacts the consumer trends in infant organic food market. As the consumers in Australia are turning out to be health conscious, new business idea of Organic will focus in developing infant foods through use of organic substances for those heath conscious consumers.
There are numerous critical success factors for Organico which can support the company in obtaining unique sustainable position within the organic foods industry. This can facilitate in attaining competitive advantages for the company over its major competitors and they are elaborated under:
- There are major competitors of Organico within the organic foods industry within Australia. In obtaining the competitive advantages the organization has developed several new infant organic products that can affect the food market along with facilitating quality services (Osterwalder, 2017).
- Unique advertising power and the public relations serves as the major critical success factors for the organization by means of newspapers, media use and the journals.
- Other critical success factors of the company are deemed to impact the nation positively in which it has its business operation. For instance, the new business idea of opening the organic food business offers increased job openings which offers jobs to the people within the host countries which works within the supermarkets (Plenter et al. 2017).
- Another critical success factor that facilitates the company in attaining competitive advantages for the reason that the prices offered by the company is cheaper and affordable in comparison to the competitors in the market. It also focuses on providing all the shopping experience that is convenient to all the customers within the country.
- Through selling organic products the organization is observed to obtain increased market share. Organico works in coordination with the local suppliers along with having increased shares with relevant industry experience relied on sustainable sourcing.
In analysing the feasibility of the new idea generation of Organico Company, my first team member suggested that this business of offering organic infant foods the company must be able to attain several effective competitive advantages based on its business model canvas aspects. Relied on the factors of the business aspects of the business, team member 2 advised me that for positive business change low price and growth strategy that can be implemented within the organization. In a situation where safety strategy was implemented within the organization, team member 1 recommended that the new idea of the Organico can have a drastic impact and can reach a great number of consumers in a short time frame (Solaimani & Bouwman, 2012). In consideration to the business model canvas it can he recommended me that the company can bring changes related with the low-priced strategy. Team member 2 recommended me that increased price of the organic food products of the company must be maintained as this will attain increased attention by the consumers and for this reason it can attain high revenues. Moreover, team member 1 recommended me that the high prices should justify the quality of the organic products. All the expenses that are set for the new idea generation of Organico is deemed to be feasible as it comes the improved product packaging with setting a better mark-up (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016).
Conclusion
The objective of the paper was to evaluate the explanation of the consumer market problem based on which the business Idea will be generated. It was gathered from the paper that relied on the factors of the business aspects of the business it is recommended that positive business change low price and growth strategy that can be implemented within the organization. In a situation where safety strategy was implemented within the organization, it is also recommended that the new idea of the Organico must be adequately implemented in alignment to the business canvas can have a drastic impact and can reach a great number of consumers in a short time frame.
References
Caetano, A., Antunes, G., Bakhshandeh, M., Borbinha, J., & da Silva, M. M. (2015, July). Analysis of federated business models: an application to the business model canvas, ArchiMate, and e3value. In Business Informatics (CBI), 2015 IEEE 17th Conference on (Vol. 1, pp. 1-8). IEEE.
Editorial, R. (2018). ${Instrument_CompanyName} ${Instrument_Ric} Company Profile | Reuters.com. U.S.. Retrieved 24 April 2018, from https://www.reuters.com/finance/stocks/companyProfile/BAL.AX
Joyce, A., Paquin, R., &Pigneur, Y. N. (2015). France.(2015): The triple layered business model canvas: a tool to design more sustainable business models. In Conference Contribution. With assistance of ARTEM. Nancy, France (Organizational Creativity International Conference). Available online at https://www. academia. edu/12914336/The_triple_layered_business_model_canvas_a_tool_to_design_ more_sustainable_business_models, updated on.
Lüdeke-Freund, F. (2014). Business model concepts in corporate sustainability contexts: From rhetoric to a generic template for’business models for sustainability’.
Naggar, R. (2015). The creativity canvas: A business model for knowledge and idea management. Technology Innovation Management Review, 5(7), 50.
Osterwalder, A. (2017). Business Model Canvas [Electronic resource]. Mode of access: https://alexosterwalder. com/.–Date of access, 22.
Plenter, F., Fielt, E., Hoffen, M., Chasin, F., &Rosemann, M. (2017). Repainting the business model canvas for peer-to-peer sharing and collaborative consumption.
Solaimani, S., &Bouwman, H. (2012). A framework for the alignment of business model and business processes: A generic model for trans-sector innovation. Business Process Management Journal, 18(4), 655-679.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., &Güemes-Castorena, D. (2016). Methodology for the of building process integration of Business Model Canvas and Technological Roadmap. Technological Forecasting and Social Change, 110, 213-225.
Viljakainen, A., Toivonen, M., &Aikala, M. (2013). Industry transformation towards service logic: A business model approach. The Cambridge Service Alliance working paper series (No. December). University of Cambridge.
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