Business Model Innovation ANASTASIA KULIKOVA DAVIDE LOMANNO MARTA
Business Model Innovation ANASTASIA KULIKOVA DAVIDE LOMANNO MARTA RODRÍGUEZ SÁNCHEZ MIGUEL FERNÁNDEZ GARCÍA VESAL GHASSEMZADEH ZUMRAD RADZHABOVA
HISTORY Kleeneze Rotork Cyclon was the first publicly sold vacuum cleaner of Dyson 1983 Transfer vacuum cleaner production to Malaysia 2002 G-Force sales in Japan 1985 47% of the upright vacuum cleaner market. 2001 Dyson Appliances Ltd 1991 DA 001 the first vacuum cleaner by Dyson name 1993 Current situation: Han dryer "bladeless" fan heater by Dyson 2009 A plant in Singapore 2013 43 million vacuum cleaner worldwide Revenues: £ 4, 4 bln Net Income: £ 1, 1 bln 2
PRODUCT/MARKET MATRIX PRODUCT/ MARKET Family (high) Professionals Hotels Restaurants Schools and Universities Offices Transportation Vacuum cleaner √ ↑ ↑ √ ? Hair care √ √ Fans and heaters √ Air treatments √ √ √ ? ↑ √ Lighting √ √ √ ? ? √ √ √ Hand dryer √ 3
VALUE PROPOSITION AND OPPORTUNITIES 01 What value does the customer perceive in the product 02 What customer needs are met 03 What are the advantages 04 What other needs could be met ➔ Price 05 What would make the customer really happy ➢ Products of the same quality with other functionalities ● Quality ● Technology ❖ Cleanliness ❖ Personal care ❖ Lighting ❖ Comfort ❏ Light machines ❏ High performance ❏ Not additional waste and costs NEW IDEA INDUSTRIAL VACUUM CLEANER HOTELS 4
COMPANY ANALYSIS Process : • Strategy and not just operational effectiveness (preserve differently) • Dyson formula • Chance of employees to invent • As a strategy : Product Differentiation People : • Creative staff with a passion towards engineering and problem solving • Customer orientation • Development arena • Visit the customer Promotion : • • TV advertising Discount deals Online coupon codes Free shipping offers Some are particularly for first-time Christmas coupons ISSEY MIYAKE Price : • Product Line Pricing • Unique Features(Different pricing) • Highly Pricing Product : • Innovation in vacuum cleaners • Quick and energy efficient hand dryers (Without unpleasant sounds) • Air treatments • Lighting Placement : • • Online Shopping , Like Amazon and Ebay Own transaction site Retailers Supermarkets 5
PORTER’S FIVE FORСES ANALYSIS Threat of new entrants 100% 80% Barriers to entry: ü Strong technologies ü 1300+ patents ü Cooperation with the best universities 60% Competitive rivalry 5 -6 big players Market growth rate ≈ 9 -11% There is an opportunity to ↑ the price for ↑ profit 40% 20% 0% Bargaining power of suppliers ↓ Supplier switching costs Partnership with: The Malaysian electronics manufacturer Imperial College London The University of Cambridge The Meiban Group Ltd. (Singapore) Newcastle University Manufacturing facilities in China Threat of substitutes Broom / mop / rag: ü Сheap ü Affordable ü Familiar ü Commonly use ü Identical value Bargaining power of customers No buyer concentration ↑ Availability of existing substitute products ↑ Price spread + identical result 6
strong PEST Economic factors Socio-Cultural factors + Possibility ↑ relations with the USA (Dyson's biggest wholesale buyer) Brexit Risks (31. 01. 20): + ↓GBP/EUR & ↓GBP/USD (13% ↓GBP/EUR & 17% ↓GBP/USD after referendum 2016) + ↑ Inflation (↑ 84% after referendum 2016) + ↑ Real income (the USA, EU) + Trend to robotization (Dyson DC 06 is robot vc) – ↑ Number of migrants (EU) – Needs of Europe ≠ the UK (example of Dyson DC 01) – Possibility ↓ relations with EU + Tax benefits in Singapore (the HQ relocation in 2021) weak influence Technological factors Political factors + – positive influence - – negative influence + Market growth rate ≈ 911% (word) + Breakthrough technology in the production of household appliances + ↓Production costs in Malaysia (30% less than in the UK) 7
SWOT S W O T • Innovative Products • High Quality • James Dyson Foundation • Research and Development • James Dyson Awards • Great Designs • High price • Lawsuits and Controversies • Criticism regarding Foreign Students • • Enhancing Product Features Global Expansion Online Presence Create a new line of professional vacuum cleaner • • Cheaper Products Delay in Product Launch Strong Competitors Market Fluctuation in the UK 8
MIND MAPPING 9
COST ANALYSIS Costs will rise dramatically due to: v v v v Creation of a new department dedicated Hire new talents Coach and train people New technology development Costs related to designing the product Variable costs (raw materials) Maintenance Revenues, because of the kind of agreement with hotel chains, will not rise as much as costs so this segment will create losses for the firm during the first years of activity. The break-even point will be reached during the fourth year as a consequence of the high contribution margin of the product. 10
PRODUCT TESTING The product will be tested many times and from different people to have as many feedbacks as possible. 1 1. During the very first stages, the product will be tested in the 2 To get fast feedbacks at small costs a couple of vacuums will be provided to the agency in charge 3 1. Thanks to an agreement with the faculty of economics at Tor 4 1. Once put together all the feedbacks and improved the product laboratory inside the firm. Vergata, the university will receive 3 vacuums the company is ready to enter the market 1. The testing phase is not finished yet; during the first year only a 5 small amount of vacuums will be in the market and thanks to the feedbacks of the hotel chains the product will be ready to be finished and competitive during the second year 11
BUSINESS MODEL CANVAS Key partners Experts (universities), Suppliers, hotels, restaurants, schools, retailers. The Malaysian Electronic Manufacturer, The Meiban Group Ltd (Singapore) Manufacturing facilities Key activities R&D, agents marketing, production, maintenance Value proposition Quality, design, top level brand Better product, longer life, energy & time saving, maintenance support Key resources Equipment, batteries, engine, machinery, money and people Cost structure Production, personnel cost and R&D Customer relationship Online, relationship with local retailer Email, relationship with agents, surveys Channels Online, social media, retailers and word of mouth Agents, new website section Customer segment Families and individual users Hotels, schools, restaurants, offices. Common characteristic: big spaces Revenues streams Direct sales Long term agreements, upfront payment or through installments 12
STRATEGY MAP Value creation for customers and firm FINANCIAL CUSTOMERS ENGINEERING AND DESIGN MARKETING LEARNING and GROWTH New customer segment New customer needs Create loyalty New product line Testing Create new label Create new agents Hiring Train people 13
Thank you! Q&A
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