Variations and Experiences Business Model †MyAssignmenthelp.com

Question: Discuss about the Variations and Experiences Business Model. Answer: Introduction The given report will be discussing the various aspects of the business canvas model of the business Graviky lab which is originated in 2015. The startup is from India and has achieved instant success and fame (AIR-INK., 2018). A brief business introduction will be given followed by the description and the analysis of the business canvas model. Recommendations with respect to the business model and critical success factors will be discussed. The company belongs to the Recycling and energy industry which has been able to raise an amount of Rs.80 lakh presently and has been evaluated at Rs.80 crore as of 2017. Established in 2015, the given investment was raised by Mohit Goel who is the CEO of Omaxe Limited. The business was developed from a need based idea (Kiel, 2014). The primary idea behind the business is that it converts the pollution particles in the air to an ink. The dust particles are extremely small and this leads to serious damage to the health of the individuals. Kaalink has undergone a long journey where it was seeded at the Fluid Interfaces Group and presented at the conference in 2013 (Borpuzari, 2018). They began their testing in 2014 and by 2016, the company had been incorporated and began their real world tasks. Their first campaign was held in 2016 in Hongkong, after which the company received a huge response in a few days. The startup makes use of a technology known as Kaalink in order to capture soot which is captured from the smoke emitted from the vehicles (Graviky Labs | Crunchbase., 2018). Kaalink can be described as contraption which is generally fitted to the exhaustion pipe of the car to capture the pollutants. After this process, various processes are undertaken to convert the soot collected to a carbon based pigment. This carbon is then used to make different inks. Business canvas model As the startup is comparatively very new, it is still in its initialization stage. For this purpose the business model of the business is not very well developed. Key Partners Government Automobile companies Key Activities Selling ink products to consumers Converting the soot present in the air to carbon (Massa Tucci, 2013). Converting this carbon to in Conducting various shows Value Proposition Better utilization of the waste emitted by cars into useful inks Safety and health A better environment to the people at large (Sinkovics, Sinkovics, Yamin, 2014) Customer Relationships Providing ink products to the consumers who are considerable for the environment issues A better environment Customer Segments Artists Street artists Automobile companies Automobile purchasers Key Resources The key resources of the firm are : Its human resource Conversion technology Office space Channels Online ordering is presently the most viable channel to sell the products. Cost Structure The important cost structures of the given in the given business model are : Staff Taxes Office Advertising Cost of goods (Joyce Paquin, 2016) Logistics Technology Revenue Streams Online sales Sponsorships and funding (Muhtaroglu et al., 2013) Relationship between the 9 blocks of business canvas model The blocks of the business canvas model describes the main purpose of the business organization. The business canvas model is a brief summary of the different operations which a firm indulges in. It provides useful information to the owner of the business in the given areas: Value Propositions Channels Customer Relationships Revenue Streams Key Activities Key Partnerships Customer segments Key Resources Cost Structure The different components of the business canvas model are deemed to be interrelated with each other (Hong Fauvel, 2013). They can be stated to be mutually dependent and any change made in one particular aspect tends to have an impact on the other business aspect. For instance a key change in the value proposition of the firm will have certain changes in the cost structure as well. Let us assume if the firm plans to sell a different colored ink then it will have to make use of a new technology, the use of which will increase its costs structure. Another example of this is that if the customer employs more staff then the revenue of the firm might increase but so will its cost. The choice of channel is also related to the cost and revenue structure. For Graviky labs, the firm sells its product online and that too on request, if it chooses to open a shop, the revenue might increase for sure, but the resources as well as the cost incurred will also be affected. Hence, they are dependent on one another and a change in one composition will have an impact on the other 8 blocks as reflected. Critical success factors for the business The Critical success factors can be described as those factors which a business needs to capture and utilize in order to achieve sustainable growth (Schaltegger, Hansen Ldeke-Freund, 2016). The presence of these factors, will contribute to the welfare of the organization and will go a long way in determining a potential future. Growth strategy- As the business is in the initial stage of it lifetime. A proper growth strategy would go a long way in determining the success of the organization. The path for the future of the organization has to be decided and the firm needs to see to it that it has adequate resources at its disposal so that the growth strategy is achievable. An organization without sufficient goal strategy will not be able to survive for long in the business environment. Product Diversity- At present Graviky Labs sells ink captured in various forms and sizes such as markers of sizes 15mm, 30 mm, 2 mm and 50 mm. A 150 ml bottle is also available. In future, the firm can strengthen its product line whereby it can offer pens and pencils which will make the firm a bigger success (Cochrane, 2014). However the diversity of the existing product line will play a huge role in determining the success of the firm . Funding strategy- The Company had started a funding procedure whereby funds of $40 would give the consumer a small bottle of ink and a souvenir. T had been able to raise $17000 from that drive. Nevertheless, success is not possible to be measured without adequate funding plans and the company should see to it that the firm has enough resources at its disposal in order to ensure that it is able to expand its organization successfully achieve success. Funding would also enable the firm to expand its product line. Potential causes of Downside risk Downside risk in an organization can be described as the risk which is a result of an external event taking place in the external environment of the organization and have a huge impact on the profit making ability of the given firm. The causes for downside risk with reference to the given organization are given as follows : Companies adopting a special technology which would not emit smoke According to Carayannis, Sindakis and Walter (2015), the automobile companies have been working on a technology which would make the automobiles emit less amount of smoke. If the amount of pollution generated by the automobiles goes down due to the application of the smart technology, then the whole point of the business would collapse . Furthermore, if the laws regarding emission of pollution changes then the business would not be able to get the response it desires. With the go-green initiative, the use of paper and inks has reduced considerably as the medium used to communicate messages has taken the online medium. Companies these days avoid printing their brochures and instead prefer to send them online to the potential customers. Hence, if the use of printed items further decreases, it can lead to a huge loss for the company. Therefore, from the given analysis it can be witnessed that the organization Graviky Labs is presently at the initial stage of its life cycle. The company has launched its product but presently it is available to very few people and that too at a comparatively high cost (Bocken et al., 2014). The given report analysis the various elements of the business canvas model of the firm and makes recommended changes with respect to the same. Recommended Changes to business model The given changes have been recommended to the business model of the firm: The main purpose of the startup is to generate ink out of waste. It is using the medium of a startup to convert the ir pollution to a usable ink technique. Hence, like it collaborated with the artists in Hong Kong, the company can partner with other social activist in India a Singapore, to make the movement bigger and to ensure that the business has potential areas to work upon in future. The inks can be promoted using the online advertisement techniques and the firm can start selling them commercially. This shall make the users more aware about the product and they would like to buy it. This shall contribute to the revenue of the firm. Apart from selling online, the firm can use retail suppliers to push its product down the supply chain and offer its offering to the customer groups at large. References AIR-INK. (2018).Graviky Labs: Capturing air pollution and recycling to Inks. Retrieved 28 March 2018, from https://www.graviky.com/air-inktrade.html Bocken, N. M., Short, S. W., Rana, P., Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. Borpuzari, P. (2018).Graviky Labs: Converting air pollution to ink.The Economic Times. Retrieved 28 March 2018, from https://economictimes.indiatimes.com/converting-air-pollution-to-ink/articleshow/55599925.cms Carayannis, E. G., Sindakis, S., Walter, C. (2015). Business model innovation as lever of organizational sustainability.The Journal of Technology Transfer,40(1), 85-104. Cochrane, T. D. (2014). Critical success factors for transforming pedagogy with mobile Web 2.0.British Journal of Educational Technology,45(1), 65-82. Graviky Labs | Crunchbase. (2018).Crunchbase. Retrieved 28 March 2018, from https://www.crunchbase.com/organization/graviky-labs#section-funding-rounds Hong, Y. C., Fauvel, C. (2013). Criticisms, variations and experiences with business model canvas. Joyce, A., Paquin, R. L. (2016). 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