This presentation describes the things that entrepreneur needs in order to start a business and run it successfully. In addition it also talks about MICHAEL PORTERS FIVE FORCES in detail.
1. KEY PARTNERS
• Who are our partners? Cisco, Oracle, Trans business machine
and Compulynx Ltd.
• Who are our key suppliers? Ezone, Mac and More
• Which key resource are we acquiring from our partners?
distribution channels, customer relationships and revenue
streams.
• Which key activities do partners perform? Their brands help the
company in attracting new customers easily
2. KEY ACTIVITIES
• What activities do our value propositions require? They require us to
make what they asked for on time and make changes whenever they
make no matter the time
• Our distribution channel? The final website design and information
system go through bigger companies such as cisco who are more
experienced than us.
• Customer relationships and revenue streams? To ensure our good
relationship with our customers we provide them with Personal
Assistance, Self Service( if needed), and we can get our revenue
streams from Advertising, Brokerage Fees, Lending/Leasing/Renting.
3. VALUE PROPOSITIONS
• What value do we offer to the customer? We offer them satisfaction
that their needs will be made no matter the task.
• Which one of customers problems are we helping to solving?
Publicity, solving problems, managing businesses
• What bundles of products and services are we offering to each
segment?
• Which customer needs are we satisfying? Punctuality, satisfaction,
time to time maintenance services.
• What is the minimum viable product?
4. REVENUE STREAMS
• License Fees
All software created by the company will be licensed (proprietary
license) to ensure that it cannot be copied or redistributed.
• Project based pricing
Pricing will be based on each project that the company acquires. A
project will constitute of a new assignment form a company to create
an information system.
• Market pricing
This model will allow the company to keep the pricing competitive.
5. KEY RESOURCES
• Developers
These are the creators of the products that the company sells.
• Field operators
These are the people that will go and set up the software as well
as train the user on how to use the software.
6. CUSTOMER SEGMENTS
• For whom are we creating value? Community of customers or
businesses we are aiming to sell our product or services to.
• Who are our most important customers? Diversified- Our business
will target a diversified customer business model that serves to
unrelated Customer Segments with very different needs and
problems.
• What are the customer archetypes? Sacco's, Small family businesses,
Small and Medium Enterprises(SME’S)
7. COST STRUCTURE
• What are the most important cost inherent to our business model?
Key activities, Distribution Channels, Value propositions and
Revenue streams.
• Which key resources are most expensive? Intellectual: intellectual
property developed over many years. , Human: human resources, and
Physical: physical assets
• Which key activities are most expensive? Platform/network : Software
Development. Problem solving: coming up with new solutions to
individual customer problems.
8. CUSTOMER RELATIONSHIPS
• How do we get, keep & grow customers?
• We get customers by advertising our business in small scale by use media.
• We keep our customers by building a refine of prototype until customers start using it.
• we keep them by providing customers with satisfaction of services provided.
• we grow customers by offering some extra services and gifts once in a while.
• We grow our customers by solving pains and struggles in technology .
• We grow our customers by improving current supplies and giving basic versions for free
9.
10. A BUSINESS MODEL IS AN ABSTRACT REPRESENTATION OF AN ORGANIZATION,
AND FINANCIAL ARRANGEMENTS DESIGNED AND DEVELOPED BY AN
ORGANIZATION PRESENTLY AND IN THE FUTURE
• customer Relationships is the building block that describes the types of
relationships a company establishes with specific Customer
• 1. Customer acquisition,
• 2. Customer retention and
• 3. Increased sales (upselling).
• Motivations commonly change or evolve. Customer relationships in the
mobile phone market were first driven by acquisition strategies involving
free mobile phones.
• Companies need to be clear about their motivations, and to analyze
performance carefully to establish such benchmarks
13. THREAT OF NEW ENTRY
• Time and cost of entry
Large capital costs are required for developer acquisition, advertising and creating
product demand, and hence this limits the entry of newer players in the information
systems market.
• Specialist knowledge
Knowledge of the creation of information system and the ability to make them for all
kinds of businesses
• Technology protection
Proprietary software licenses are required in the creation of information systems.
• Barriers to entry
One is the cost of starting the business.
Another is the reluctance for businesses to accept information systems
14. BUYER POWER
• Differences between competitors
The company’s competitors specialize in providing services to larger
businesses. This differentiates us as we prioritize small and medium
businesses
• Price sensitivity
The company prices its products according to supply and demand and is very
price conscious
• Ability to substitute
The consumer’s substitution is limited. Other company would offer the
consumer a generic system that might not have features they want or might
have features that they do not use.
15. SUPPLIER POWER
• Market situations
When a service is desperately required in the market so as to
gain advantage of this situation prices are increased changed
causing us to the same.
• Services
Customers usually buy services and some of those services need
updates or servicing the supplier may gets an advantage here as
he is getting extra money from the customer
16. THREAT OF SUBSTITUTION
• Our Software product maybe substituted by our customers for
example outsourcing their needs or finding or creating their
own solutions.
• Customer Switching Costs
• Our product maybe substandard
• Our product quality maybe depreciating
• Availability of other close substitute