Introduction
Sustaining a business can be a challenging task especially during the times when it needs to change its strategies or adopt new approached. That is why, it is important that business owners must be open to any forms of business model changes in order to sustain the profitability and save the business itself. Thus, changing the model of the business can be done through development of short-term change and long-term change. The purpose of this study is to present two change models that are applicable for both short and long-term changes of Sea Treasure, a small group of retails stores that offer aquarium accessories and exotic sea life. The group currently faces business challenges that affect its profitability due to decrease in customers. The change models that will be followed include changing the value proposition and taking hold of new revenue opportunities. These two change models for Sea Treasure’s business mainly involve the creation of website to increase the sales. Although there are perceived challenges and barriers in the implementation of these change models, they are viable both for short and long-term change
Change Models
Changing the business’ value proposition was described as changes in collective benefits that the customers obtain from using the company’s services (Hill, n.d.). It also focuses on changing the marketing strategies of the company by creating new approaches. In the application of this change model, the company formulates such strategies to reach their customers using new mediums, such as creating a website or a social media account. In that way, the business can be presented in a different manner. Establishing a website or using the Internet as one of the ways in marketing the products is known to be a faster way of reaching out to the target customers. In case of Sea Treasures Group, creating a website will enable the current customers to see new products that they may be interested in buying. Although this will only be part of the short-term change, it is still a step forward to major business change. The website may include ways on how customers will contact the Sea Treasures directly, such as a link to a messaging system. Thus, the website may also be used as a way to order products and have them delivered into the customers’ address. As for the long-term change, taking advantage of new revenue opportunities will be used. From the current model, the website will be expanded in order to expand the business in terms of better supply chain and delivery of the products. As for the case of the Sea Treasure, the presence of the business using an online platform would increase the opportunities. There is a possibility that various suppliers of different aquarium decorators will offer better price just to get business with the company. This will be a better profit for the Sea Treasure because of reduced capital.
The introduction of new business model using the internet or the Information Technology will be beneficial both for the Sea Treasure, its current clients, and potential customers. Nowadays, consumers use internet as platform for various purposes (Benefits of online platforms, 2015). For consumers who are looking for specific products or services, they access such information from the Internet. Therefore, the Sea Treasure Group will be more visible to its target customers as most of them have online access. In fact, third-party sellers are now emerging as part of the business support that helps merchants in selling their products. This can be utilized by the group in order to increase its sales and market penetration. However, it is not always that a change model application creates a smooth transition of the current business process. There are possible challenges when it comes to the implementation, such as employee resistance, adjusting to new technologies, and shipping methods.
Effects of Changes
Every company that makes business change will potentially face challenges due to various reasons. According to Lawrence (1969), the resistance to change is one of the most challenging problems whenever there is a need for a change in an organization. The employees of Sea Treasure Group will be impacted by this change due to variety of reasons. Primarily, change means new, and new means another challenge that employees need to be familiar of. In this case, the application of Information Technology to the company’s business would require new skills of employees. Therefore, business leaders must use positive approach to inform employees that such change does not mean job insecurity. In fact, it will help the company become stronger and more competitive, which will secure their jobs. Then again, they would need to be trained in order to become more competitive employees as well. This will address possible challenges when it comes to the delivery of products, as the process will be integrated with technological aspect. The managers and leaders of the organization will also be affected by this change, especially the issue of resistance. Therefore, leaders must convince the employees to participate with change efforts by making them part of the improvement. Bottom line, the leaders of the Sea Treasure Group must understand the nature of employees’ resistance to change.
Conclusion
The application of these change models are essential for the survival of Sea Treasure Group. However, the implementation may face various challenges that must be addressed by the management or leaders in order to ensure the smooth transition of the proposed change. The process of implementation must be on a positive manner, to which employees will realize that they are essential part of the transformation. In that way, resistance will be reduced and the integration of Internet technology to the business will be successful.
References
Benefits of Online Platforms. (2015). Oxera - Prepared for Google. Retrieved from http://www.oxera.com/getmedia/84df70f3-8fe0-4ad1-b4ba-d235ee50cb30/The-benefits-of-online-platforms-main-findings-(October-2015).pdf.aspx?ext=.pdf
Hill, B. (n.d.). What Is a Business Model Change? Retrieved from http://smallbusiness.chron.com/business-model-change-3868.html
Lawrence, P. R. (1969). How to Deal With Resistance to Change. Retrieved from https://hbr.org/1969/01/how-to-deal-with-resistance-to-change
