Website Groep 4

BUSINESS MODEL (FULL)

This page contains the detailed version of the business model.

Who

Primair
- Different zoos who need to buy the product
- Other locations who can buy the product (e.g. museums or aquariums)

Secundair
- Zoo staff who need to clean the product
- The company who manufactures the product
- The shipping company
- The people who instal and repair the product
- The visitors of the zoo

What

Product: A stationary pair of binoculars that, through augmented reality, let the client view the animal in its natural habitat instead of the cage in which the animal is normally. It gives information about the animal and educates the visitors.

USP: This product will provide a completely new experience for every zoo. It will get more customers and earn more profit! It also gives you a chance to teach your visitors about the animals and what your does to help and protect them.

The quality of the augmented surroundings are as close to real as possible which makes this believable to the to the visitors. As well as it gives the visitors an opportunity to be educated about the animal in a more interactive way than the normal plaques with information.

Why

This product offers a totally new way of entertaining and educating visitors. It gives zoos the possibility to show the real environment of the different animals in a more interactive way than the normal drawings that are near the cages. This new way of teaching makes more zoos want the product so they are on the same page as their competitors. Especially since zoos constantly need to improve in order to keep up with the changing and improving technology.

How

Zoos want to improve in order to keep up with the changing and improving technology as well as the changing needs and wants of the visitors. And since the technique is quickly improving especially in the way of virtual and augmented reality so that people can go anywhere with their virtual reality goggles, zoos will become obsolete if they don’t change with the new techniques in mind. This will mean that they need to change if they want to stay in business, and this is where the product can help.

Value creation

Raw materials will be collected and brought together in the factory to create the end product. Marketing and advertisement will get people to see the new product and decide to visit the zoo more. This will give zoos more customers and other zoos will see the benefits. End users will have the option to use the product every time which will occur often. When they are used to the idea of having the augmented reality option, they will want to see every animal in the natural habitat.

Value capturing

Because this is a completely new concept that is not yet on the market in this form, the first zoos can gain a good competitive advantage since they are the first with the new technique and have the media attention. After a while this will become the norm in zoos and the other zoos will a similar product so they don’t lag behind on new technology and at this point the visitors of zoos will demand such a product. This is also the moment to expand to new areas of the market, such as museums. Since the technique is commonly used by people and they are used to places having such a service.

What kind of business model

For the kind of business model the focus is on the reverse razorblades. The product is sold to zoos for quite a lot of money and after that every time the product is used it will require a small amount of money. So people think that it’s only a small amount of money they have to pay so they will pay it more often since the costs are so low, even though the whole product costs a lot of money. Besides the reverse razorblades, the focus is on the service since this is what the end user will see instead of focussing on the product. The product is merely the way to enjoy the service and needed to facilitate the service. In the end it’s the service that sells itself and people need the product in order to use the service.

SWOT analyse

Strengths
- New technology that is hardly used in this context.
- Gives zoos a new attraction to make revenue with.

Weaknesses
- It’s a big investment to make the product and put it on the market without the guarantee that it will reach success.
- It costs a lot of money and time to create an augmented reality for every animal and installing the product in every cage since none of the cages are the same.

Opportunities
- It’s a new technology with a lot of potential and people are becoming accepting of this new technology and want to use it.

Threats
- Since virtual and augmented reality techniques are advancing quickly, it is possible that a similar service can be enjoyed from home in a short amount of time.

5 Forces analyse

Industry competitors: Companies that create virtual and augmented reality equipment for at home.
Buyers: Zoos since they buy the product and indirect the visitors since they use the product.
Suppliers: Suppliers of the materials in order to manufacture the product. Potential entrants: New companies that order a similar product and service.
Substitutes: Other materials that can be used to manufacture the product.

Generic competitive strategy

As a generic competitive strategy, it will be a differentiation strategy. This because the product is a new concept and doesn’t have a lot of industry competitors yet. Furthermore the product differentiates itself from other virtual and augmented reality products that are already on the market. It focuses on superior performance through focussing on customer benefits.

Business canvas

1) Customer segments

Primair
Business canvas

- Different zoos who need to buy the product
- Other locations who can buy the product (e.g. museums or aquariums)
Secundair
- Zoo staff who need to clean the product
- The company who manufactures the product
- The shipping company
- The people who instal and repair the product
- The visitors of the zoo
Key questions
1. For whom are we creating value?
The product creates value for the zoos in which the product operates.
2. Who are our most important customers?
Zoos are the most important customers since they initially buy the product, but they are not the end users. Those end users are the visitors of the zoo who use the product. Those are the people who generate the profit by using the product.

2) Value propositions

The product responds to unknown needs and wants both from zoos as from visitors. This is combinated with new techniques that are novel to the crowd and need to let people try it in order for the techniques to become widely accepted. Besides this, this product offers a new way to educate people.

Key Questions
What value do we deliver to the customer?
A product is delivered that can provide more visitors and more profit to the zoos. This has value because it gives the zoos a possibility to gather more visitors which means, selling more tickets and more money per use of the product, since they provide an extra experience and service. It also gives the zoos an opportunity to educate people better, all in one product.

Which customer needs are we satisfying?
This product will help the zoo to convey information to the visitors in an original and new way. This is one of the goals for zoos and they have a need to give information about the animals in order to convince visitors that the animals need help and that the zoos do a good job by keeping animals and protecting them. Furthermore it gives the zoos more profit, which is another need for them.

3) Channels

Looking at channels, the product will be produced by the company, then a zoo will buy it and eventually visitors of the zoo will buy time to look through the machine and will be the end user. In short: producer (the company) → retailer (the zoo) → end user (the visitors).

Key Questions
How are we reaching them now?
Contact zoos and investors in order to show them the product and how they can make profit with it. In order to reach the broader audience with the end users the zoos will make use of marketing, advertising and media notice.

4) Customer relationship

The company had two forms of customers, the zoos who buy the product and the visitors who are the end users of the product. The customer relationship with the zoos is in the form of a personal assistant. When the zoo want to buy the product, he will be in direct contact with the firm and gets help with the purchase and if necessary with any repairs or other problems. The relationship with the end users is in the form of self service. The company makes the product in such a way that the visitors of the zoo can help themselves.

Key Questions
What type of relationship does each of the customer segments expect us to establish and maintain with them?
Zoos: a personal relation since it is quite an investment and it needs to be coordinated well. It also is build on a foundation of trust, and then is a personal relation necessary.
Visitors: Self service, in order for them to use the product independent and don’t need to ask someone every time they want to use the product.

How costly are they?
The personal relation with the zoos is more costly since it requires personnel to speak with the zoos. But since that helps with selling a large product, it is worth it. The self service is not that costly, it only cost some money implementing a paying mechanism in the product.

5) Revenue streams

This product has two ways of generating revenue. Two for us and one for the zoo. Looking at the revenue stream, it consists mainly of asset sales and for a smaller part of the profit the zoos make. The physical product is sold to the different zoos and every time someone pays for looking through the product fifteen percent of that amount will go back to us. For the zoo it is mainly a usage fee, the zoo will sell the service and ask money for every time someone wants to use the service, furthermore the zoos will get new software and repairs if the product malfunctions.

Key questions
For what value are our customers paying?
The zoos will pay for a new way to get people to visit their zoo and a new way to educate people about the different animals and the dangers they face in their natural environment. The visitors pay for the experience they get with augmented reality and the new way of seeing the animals and how they live in their natural habitat.

How are they currently paying?
The zoos will pay by bill or a similar company standard way of paying for large amounts. The end users will pay by card with contactless payments. Every time they want to see an animal in the augmented reality surroundings, they walk up to the product and swipe their card against the machine. This is easy to reach for people who walk up to the machine as for people who are already using it.

6) Key resources

The key resources are mostly physical since we require a physical part of the product to be made, stored and delivered to the customer. The other part is digital, this is part human and part intellectual since it requires people to make the digital environments and the environments are intellectual property. Since this project doesn’t require a detailed explanation of the resources with which the product is manufactured, there are no specific products listed as key resources.

7) Key activities

The key activities that the product requires are production and a platform. The physical product needs to be manufactured in order for the service to work. And the service relies on a platform, namely the software with which the augmented reality works and which needs to be up to date. Since this project doesn’t require a detailed explanation of the production process, this part of the business canvas is not specified.

8) Key partnerships

Key partners will include: the key suppliers for the resources and the people and companies who invested in the product. A more detailed list can be made if this product is developed further and in more detail.

9) Cost structure

The costs include the cost for buying the resources, manufacturing the product, salary for the employees, repairs if the product malfunctions and further development of the product and software. Since this project only requires the start face of a product, this part of the business model is not further detailed.