Ma hui xin MA2N0245
黃琤琁 MA260207
廖康彬 MA1N0232
陳怡琇 MA290206

 At the beginning of this chapter, the statement is made that “ in everyday language, a model is a plan that’s used to make or describe something.”
 Do you think IKEA and ProFlowers have plans that effectively describe what the firms offer to customers?
 How could these firm’s models be changed so that they would be more appealing ?

 They have plans which mean good business models.
 Both of them have effective value chain that creates substantial cost savings
 Also they make some unique offerings to their customers
 IKEA – Brightly colored furniture, functional yet stylish products, playrooms for children, Swedish cuisine restaurants
 ProFlowers – fresh flowers, higher quality, lower price

 What is IKEA’s core competency?
 What are its strategic assets?
 Is there anything about IKEA’s business model that makes what the company is doing hard to replicate?
 Explain your answer.

 IKEA’s core competency is the outsourcing service.
They have saved a lot of cost by using it.
 IKEA’s strategic assets are
 Well-designed Products
 Value chain
 Customers relationship management
 Stores with best locations
 Company’s business model is not bad, IKEA offers special customer service that means You can do it yourself, but you don’t have to!
 But the model is getting older

Suppose that you are the CEO of ProFlowers.
You just received an e-mail from Carolyn Anderson, a highly reputable and sought-after rose grower, who is interested in learning more about your company.
In her e-mail message to you, Anderson asks the following question:
“Describe to me your business model.
Convince me that your organization has a good story and I should be part of it.”
How would you respond to this request?

ProFlower’s business model provide
maximum emotional perspective to the customer by have small chain of distribution from growers to customers.
For all the rose growers that collaborate with ProFlower will send flowers to customers through a single channel such as FedEx or
UPS.
By having Carolyn Anderson mean flower’s distribution can be enhanced.
As the process is bound to increase rose demands, being a part of the uniquely defined ProFlower chain would be advantageous for you.

How does ProFlower’s business model motivate its customers and partners (such as its contract growers) to participate in its business?
On a scale of 1 to 10 (10 is high), rate how motivated you think each group is to do business with ProFlower and help it succeed.
How does ProFlower’s business model demonstrate that in some instances fewer business partners can be better than more business partners?

ProFlowers business model motivates
 The customer will give regard to their emotional attachments with the people whom they wish to address by sending high quality flowers but low price.
 The receivers allow to have fresher flowers.
 While growers will receive significant benefit through improved profitability.
For flower’s grower motivates rate : 8
For ProFlower’s customer motivates rate : 9

Fewer business model partners would be easy for ProFlower to motivates as well as it would take lesser time for fewer business partners to concentrate more on their collaboration with
ProFlowers.

Which Industries, other than furniture and flowers, are ripe for business model innovation?

1. IT Industry
Multimedia Industry
-Music (BeatPort.com, I-tunes.com, Amazon.com,
Soundcloud.com) Radio (Digital Imported: di.fm).
-Movies (Netflix.com, Directv.com, VUDU.com, Quickflix.com.au).
-Games (Smartphone apps, Free to play online games).
-Social Netorks (Fb, Twitter)
Restaurants (Online ordering) (Pizza Hut Online).
Internet (Wi-fi Technology).
Warehouses (Kiva Warehouse Robotics)

Provide an example of a product or a service with a value chain that could be reconfigured in a manner similar to the way IKEA reconfigured the value chain of the furniture industry or ProFlowers reconfigured the value chain of the flower industry. Discuss how a start-up or an industry incumbent could benefit by reconfiguring its industry’s value chain in this manner.

At Wal-Mart, a reduction in out-of stock incidents could mean a boost in the closely watched measure of same-store sales.
RFID technology is also supposed to help make the company more efficient in its supply chain.

-Their target is very specific (Those who doesn’t mind assembling the furniture by their own).
-No transport service.