Business Model and strategic Plan for AB. Company Inc.
The business model explains the whole strategic plan of how to perform it. It builds a figure of the business, describing the ways for building relationships on both ends; suppliers and customers. In addition to these, it outlines the ways to compete in the market, and also how to employ the resources. In this report, the aim is to develop strategies for achieving a proposed business model and strategic plan for the new product of AB Company Inc., which will be implemented to achieve the strategic objectives.
Business Model and Strategic Plan
The business model and strategic plan are developed after the market research. The market research is performed in order to see that either the new product or service has the potential in the market or not. There are following components of the business model and strategic plan for new product unit of AB Company Inc. In this section, all strategies are outlined for the strategic objectives attainment.
The core strategy includes mission of the business, the product scope, and also the base of competition. The mission of the new business division is, “to provide the customers with “wallpapers” to improve the aesthetics and quality of walls at lower cost”. To achieve this objective, the research and development team will be in contact with the potential customers. They will keep on getting knowledge about the designs, colours and other aspects of wallpapers, as the customers will like the most. The low cost strategy is also employed as keeping in touch with the customers will make it possible to make the products as per needed. The inventory cost is the major one, which will be reduced by making products on demand. The base of competition will be product itself, which is innovative, low cost, protective and eco-friendly.
Strategic resources
The strategic resources are the key competencies and the assets of the company, which are owned by it. In this regard, the most important strategic resource for the company is its research and development team. The company will be employing the team for the conducting the research over customer needs and preferences. It is important for the company to build the strategic resource for having competitive advantage. The company will conduct the training and development programs to build their human resource.
Suppliers network
The business model’s third important component is the key partners. The company will be contacting with the architects, interior decorators, and other suppliers in order to start its operations effectively. For avoiding any risks and uncertain situations, the company will avoid contacting to a single suppliers. Rather, it will build relationships with a network of suppliers.
Customer interface
The customers interface is the last component of the business model. In this step, the strategies are made for the target market selected for the new product. The target market for this product is the low-end consumers, who wants to beautify their walls and protect them from wearing out, but at lower cost. Three objectives are there for the customers, which are to provide value, satisfaction, and to retain the customers. To achieve these objectives, the company will develop a customer relationship team to build good relations with the customers. The team will assist the customers in every respect to the product choice, use and application for 12 hours a day. The pricing will also be kept reasonable for the customers. The channels through which the company will reach its customers will be both online and offline.
References
Kaiser, U. (2008). A primer in Entrepreneurship. Zurich: University of Zurich.
Trapp, M. (2014). Realizing Business Model Innovation: A Strategic Approach for Business . Nurnberg: Springer .
