Introduction

The 21st century has been one fullof technical innovations. Ever since the invention of the microprocessor in the 20th century, technology has been advancing and growing exponentially. New technologiesbeing introducedevery day,andmany of them will usher fundamental changes in society as we know it. For example, with the invention and popularisation of the internet, may of the modalities mankind was used to, are now obsolete. This is because the internet provided a new way of communication that had never been seen before. The internet made it possible for people to exchange information, thoughts and ideas seamlessly. The internet is able to connect people who are geographically separated and has little limitations as to how far apart these individuals are. Businesses in the past decadeshave also radically changed because of technology. Technology has enabled many businesses to digitise their documents, and automate most of their business processes(Osterwalder & Pigneur, 2010). Many businesses attributetotechnology as the main reason that they were able to grow an expand and reach horizons never thought possible. On the other hand,manybusinesses have blamed technology for their downfall and eventual cessation. These patterns display fact that integrating technology is a key aspect in almost any successful business.

This is a report focuses on the key trends of the 21stcentury and show how they affect more traditional businesses.More specifically, it will focus on two industries that have intersected in recent years, and the problems that have risen because of their unification intersection. The two intersected industries to be highlighted in this report are the information technology industry and the brick &mortar industry. These are two industries that are essentially different in the way that they work and the ways that they traditionally function andcirculate information. The key trend in this case is the fact is that the brick and motor retail shops that do not have an online presence eventually lose a large portion oftheirmarket share and because of growing competition from online counterparts.

Proposed Solution

The coalescence between the Information Technologyindustry and the Brick & Motor industry is inevitable. Thebrick and mortarindustry comprise of companies whichmaintaintheir presence in a physical building, structure or organization as opposed to acting like an online business. This is to mean that a brick and mortar company is one that still uses traditional methods to serve its customers and sell its products where it has no online presence whatsoever. The information industry, on the other hand, is where information is sent and received digitally and where customer transactions are also processed digitally. In the information technology industry, a company will have a strong online presence where the consumer can order products and services online without having to physically visit a certain location. Communication between the company and its consumers is also done online. As the key trend has pointed out, brick & motor companies that do not have an online presence eventually lose market share. The recommended solution, therefore, is that the introduction of an information technology onboardingcompany that will assist retail shops in building an online presencequickly and effortlessly.

 

Business Model Canvas

A Business Model Canvas (BMC) is a strategic management template that is used as a tool to develop, and document models for a business. A BMC often proves useful for a company that is on the verge of being established or one that is in the process of changing its business strategy. Below is a Business ModelCanvas for how the Brick & mortar industry can integrate itself to produce a more efficient and trim business that it protected from absolute disruption.

Key Partnerships

Internet Service Provider for website hosting services

Social media Marketers to make the public aware of the new online platform

Key Activities

Convert the brick and mortar data to digital data through manual data entry

Set up an online payment integration system to allow for digital payment to the handbag retail store

Set up an online support system for the retail store that can act as a customer support in case of any hiccups in the online platform

Liaise with upper level management on the graphical user interface preferred by the users.

Value Propositions

An online website that has a list of all the products that the company has.

An online website that is accessible from anywhere in the world and that has an inbuilt system for choosing products, saving them for later, and cashing out for the consumer.

Reliable Internet Service Provider (ISP)

A website that is highly secure to protect user privacy and customer details.

An online customer service system for the handbag retail company to liaise with our IT company

An online-based customer service platform embedded in the company’s website

Customer Relationships

Involve the members of the handbag retail store in the process of building the website to ensure the functionalities and user interface desired are implemented

A direct line to the company’s IT support team to ensure maintenance and upgrades to the website

Customer Segments 

Online Shopping website

Reliable Internet Service Provider (ISP)

Servers to store company data and to act as a backup for the hosted website

Key Resources

Good funding to create website

 

Channels

Use of ISP as a host for the website while it is being developed and while it has been deployed. This will ensure that the consumer is involved in every process of website development.

An online-based customer service platform embedded in the company’s website

Cost Structure

Labour. (This includes all the technical workers in the physical store andthe backend team working on the website.)

Cost of technical team that comes to set up the online platform

Cost by ISP to host the website

Cost of purchasing materials used to develop the website such as text editors, compilers, and servers

Cost of an Internet Connection

Revenue Streams

Returns fromadvertisements ranthrough the website online.

Cost of maintenance and upgrades throughout the life of the website

Cost of developing a complete online shopping website

 

 

 

 

(Osterwalder & Pigneur, 2010

Value Proposition

An onlineplatform is one that allows for easy access to the company’sproducts by the consumers. It gives the company the chance to be able to be close to its consumers without necessarily needing a physical location. A business’s value proposition is an important marketing element where the companyaddresses the consumer by telling them whythey should deal in business with the company and not its competitors. The intention of the productproposition is to show the consumer the value of the company’s products and why it is a better bargain than with a rival(Investopedia, 2018). In the case of this retail shop that deals in the sale of lady handbags, one thing that remains constant is the fact that the company’s products are of optimal quality. The handbags brought to the retail store for sale are ones that have been well made by the supplier. This is because the main vendor was keen to select a supplier who is keen on quality than quantity.

As a value proposition,therefore, a point of value is in its delivery for consumers within the same region as the physical stores. This strategy works in that the delivery company is always on call for current deliveries and are in most cases, also a reliable delivery company. This a value proposition as it promises reliability, efficiently,and convenience.Another valueproposition is that the website will allow for cashless transactions(Investopedia, 2018). Having an online platform opens the business to accepting cashless transactions and this, in turn, proves valuable to the consumers where they have no need for physical visits to the storeor the need for paper money.

Customer Developed through Personas

The process of creatinga consumer persona is useful for a company to be able to find a marketingstrategy that is consumer specific and that can achieve the intended purpose. Part of the intent of marketing is also for a valueproposition. To gauge a consumer persona, it is first important to establishtheirindividual’s personalities. To do this, the company can make use of records, and customer information in the online platform so as to see various aspects of the consumer. These can be where they get their information, their personal background, theirchanges, and their lifestyle(Pritchett, 2014). This will help togauge the optimal price points, as well as, the company’s most recommended strategy for marketing and sales. Data management tools are essential in this activity where they help to organize and identify the data required for consumer profilingand creating a consumer persona.

 

 

Revenue Model

A revenue model is aframeworkthat is used to illustrates the modes usedby the company to generate revenue. It shows the revenue sources that are good an that company ought to follow through.For this company, the best revenue model is the use of affiliate marketing and E-Commerce. Affiliate marketing will help the company to make the customer aware of its products as well as its online platform. E-commerce will then allow for the company to reach a wider range of consumers who can be new consumers to the company and who can be useful in spreading the word about the company(Dudin, Kucuri, Fedorova, Dzusova, & Namitulina, 2015).

Conclusion

The company highlighted above is one that deals in the sale of women handbags. The business model created above focus on ensuring that the company has a real online presence and that consumers are able togain access to the company’s products. A business model canvas helps to put things into perspective where the resources used are focused on reaching the consumer, providing value, and allocating the necessary resources to achieving the set goals. With the proposed solution and the key trend that has been the main focus, it is evident that the above business model canvas has effectively addressed the issues highlighted by the key trend.

 

 

References

Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.

Investopedia. (2018, March 25). Value Proposition. Retrieved from https://www.investopedia.com/terms/v/valueproposition.asp

Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.

Pritchett, G. (2014). Value Proposition Design: How to Create Products and Services Customers Want. Central European Business Review3(4), 52. doi:10.18267/j.cebr.104

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