Question 01
Describe the Quirky Business Model by creating the Business Model Canvas for Quirky as at December 2012.
Business Model Canvas
Key partners:
The key partners for the company currently as per the year 2012 are the third party consumer company that serves the needs of the customers. Moreover, the key partners sell products manufactured by Quirky by keeping a percentage in the profit sharing.
The suppliers for the company are the customers who actually offer ideas to the company over the official website, which are then implemented and executed to the engineering department.
The key resourcesthat are being acquired by the company from its suppliers are ideas. Moreover, it also offers the suppliers with the ample percentage on the profit which actually support them in order to come up with more such ideas and plans to outclass the competition in the market.
The key activity that the partners or the third party perform is that they sell products manufactured by Quirky over their shops and retail stores. The largest part of the sales is generated through these partners who are not directly related to the business, but eventually they have a large say in the decision making and customer satisfaction. Moreover, optimization and economy are the motivations for the partnerships.
Key Activities:
The key activities of the company are that it looks to generate new and innovative ideas and actually implements them by manufacturing and producing them either through the process of outsourcing to other countries or manufacture it locally with the United States. The value proposition for the company has been its diverse products and the availability of products through more than 3,000 retail outlets locally and it also serves customer needs through company website.
The distribution channel is rather traditional; Quirky sells its products through third party retail outlets. The element of customer relationship has been quietly recognized by the company and it has actually paid commitment over increasing the relationship with the customers. The company manufactures and offers those products that are preferred by the clients.
Running Head Quirky A Business Based On Making Invention Accessiblem Case Solution
Customer Relationships:
The customer relationship that is followed by Quirky currently is that it looks to form clear and concrete communication with the customers. Moreover, it also provides personal assistance to the customers to increase the level of customer satisfaction.
Customer Segments:
The company is creating value for the mass audience. The products offered by the company are low priced; therefore it caters the need of mass audience. Moreover, the products are in wide range which again makes them for the masses. The most important customers for the company are the ones who regularly visit either the company stores or the website of the company Quirky.com.
Revenue Streams:
The customers of the company are willing to pay for diverse and high quality innovative products. Currently, the customers are paying through fixed pricing. The customers generally look to pay either through credit cards or through cash.
Question 02
Using the Business Model Canvas, describe what changes or additions to the Quirky Business Model you would make to address the challenge of achieving an acceptable long-term profit margin.
As the above description of the Business Model Canvas presents, Quirky has been able to achieve reasonable profits and the company has actually been able to attract large customer base. The reason is simple; the customers are satisfied with the product offerings by the company and have been content with the overall quality.
However, to improve upon the existing features, the most integral part which Quirky needs to develop within itself is to offer the customers with the company products through its own retail outlets. Although it is a costly method of gauging in customers, but eventually in the long run it will support the company in holding the customers and actually satisfying their needs.
Moreover, the revenue model for the future should be more focused towards the customer segment dependent. The reason is simple, the customers generally look to purchase goods from the company where they are offered a wide range of similar goods which actually confuses the customer, therefore, to reduce this problem the company shall introduce segmentation and the customers can actually look to purchase products that are actually their need.
The value proposition is solely based upon the innovation of products that the company actually offers. However, in the future it should look to integrate more focus over the customization of products. Over here, the company should offer customized and user friendly products to the customer so that the sales should increase and eventually the level of customer satisfaction will rise up too...............
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