Business Models - Assignment Example

University: Mini Case Assignment Name: Date: 1. A business model is a representation of the means through which a business generate money through its operations. Further, a business model encompasses the technical aspects of the business operational activities such as delivery of products, organizational structure, and the business cycles defining the frequency within which the revenues are earned (Contractor, 2011, p.35). Essentially, in analyzing the business model of any company, these are among the major factors that have to be put into consideration. However, in order to articulately analyze the business model of SEER Company with the information given in this case study, we shall breakdown the business model into quantifiable components that will fit our analysis. First, we look at the customer value proposition. This assesses how effectively the company creates and adds value to the final products provided to the customers. SEER serves a distinct clientele that comprises of diverse eyewear brands all over the world. As such, SEERS business is built on identifying the uniqueness of each brand and designing eye wear that best suits the specification of each brand. This is done on demand basis and the company therefore concentrates on the projects at hand. SEERS embarks on value addition by converting the specifications of the eyewear brands and eyewear fashion brands into well designed high quality products. Secondly, SEERS has a pool of professionally qualified designers. This team has been crucial in the designing of their inspirational brand of eyewear. Undoubtedly, SEERS has maintained a very personal relationship with its clientele by custom making the products. Further, as can be seen in the latest partnership with COACH, it is clear that SEER also provides distribution services to its clients. SEERS equally outsources the manufacturing process of the frames to other eyewear manufacturers therefore acting as a link between its clients and the designer brands. It is now already clear that SEERS generates its revenue majorly from its designing and manufacturing services. Moreover, it also provides distribution services as per the requirements of the client. The key resource for SEERS is its highly qualified team of professional designers. 2. A critical analysis of SEERS indicate that the company acts as more of an intermediary between the designer brands and the manufacturing factories. While this business model is quite effective in the 21st century where original design manufacturers have gained a competitive edge over OEMS, there is bound to arise some technical difficulty in the long run (Kehal & Singh, 2006, p.46). One strategic issue that is likely to arise is the fluctuation in the business. ODMs are highly dependent on the number of clients that they are able to capture. This means that in the event that the clients find a more cost effective manufacturer, they are more likely to defect. In addition to this, there is the consideration that most of these companies in the industry serve different clients often requiring that the almost similar types of and products to be manufactured. Technically, this means that there is a possibility that firms may end up sharing the same unique features that were in essence supposed to give them a cutting edge in the market (Mcivor, 2010, p.53). Invariably, this raises conflict of interest and majorly touches on the strategy which the firm uses in manufacturing. Further, SEERS also has to ensure that it maintains a cordial relationship with the manufacturers so as to ensure that the business is running at all times. This dependency is a major hurdle to productivity as it makes the company vulnerable to external factors very easily. For instance, if the factories face production difficulties, these may affect the overall productivity of SEERS. Another strategic issue that is likely to be associated with this firm is that of innovation. While it may be safe to argue that the employees who have stayed in the company for 10 years are an advantage to the company, it is also possible to view this as a strategic hurdle that may be an impediment to change within the organization. This intimates that with the rapidly changing market dynamics in the contemporary world, it is essential to have a rotation of professionals to bring on board fresh ideas on how to strategize and reorganize business (Contractor, 2011, p.68). What has been witnessed with ODMs in the last few years has been a case of quick shifts in manufacturing methods. From OEMs to ODMs. SEERS is doing quite well in this market. However, to remain competitive, it has to carefully re-evaluate and deal with these challenges. 3. One of the best ways that the SEER Company could address these challenges would be to have a well-defined brand. Defining a brand involves using the expertise and the skills of its pool of professionals to develop a product that meets the needs of its consumers (Kehal & Singh, 2006, p.48). Additionally, SEERS will have to position and prudently differentiate its brand from the other highly competitive brands in the market. With the realization that there is consistent competition in the market, SEER needs to build a strong brand through using attractive designs and colors that place it ahead of competitors. In developing an effective business model, organizations are required to embark on branding strategies that allow as much as possible for exposure of the products to the market (Mcivor, 2010, p.77). In this regard, SEERS should aggressively promote their new brand either through social media platforms or through advertisements. This allows for development of a brand that is easily associated with the core business objective. Another crucial branding strategy that SEER could use to overcome the above challenges would be to create a personalized brand. Personalizing a brand basically involves engaging consumers in development of the brand. This saves the company from the risk of production of identical goods with competitors and thus losing out on the market. A personalized brand will resonate directly with the needs of the customers as they are engaged to participate and develop a sense of ownership in the brand (Mcivor, 2010, p.83). Finally, SEER needs to constantly engage in brand reviewing. Having the same team in the organization necessitates for constant review to prevent dormancy or recession in demand of their eyewear product. This also helps in keeping the eyewear brand moving in the right track without losing relevance References Contractor, F. J., 2011. Global outsourcing and offshoring an integrated approach to theory and corporate strategy. Cambridge, U.K., Cambridge University Press.  Kehal, H. S., & Singh, V. P., 2006. Outsourcing and offshoring in the 21st century: a socio-economic perspective. Hershey, Pa, Idea Group Pub. Mcivor, R., 2010. Global services outsourcing. Cambridge, Cambridge University Press. . Read More