Study on Face Mask Business Model Development
The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
The assessment criteria are detailed below.
1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).
Face mask business model of a company basically includes what are key business operations and how it generates revenue by managing those operations. Business model can be defined as the method of operating the business in an effective manner so that the company can sustain itself in the competitive environment (Apte & Davis, 2019). While starting a new business venture, it is important for the company to develop an effective business model to ensure its growth and success in future. This report provides a detailed business model canvas for new business venture i.e. recyclable face mask business. Name of the company would be Fine Hygiene Pvt. Ltd.
Problem statement: In current time, it is essential for people to protect themselves from harmful germs and diseases. Each and everyone are seeking for masks to keep themselves safe from other in social interactions. The objective of this face mask business is to provide recycled face masks that can be used again after washing. In order to stay protected and safe from virus and diseases, people are using disposable face masks. After using it once, they have to dispose them and buy a new one which is very costly for general people. These disposable masks are not very cost effective for the customers. Along with this, the disposal face mask is the cause of danger and crisis for environment also. The demand of safe and recycled face masks is increasing day-by-day. Thus, there is the need of such masks that are safe for environment and cost effective for people in the market (Grousson, 2020).
Protection from virus- In order to stay protected from virus and flu, face masks is the best way for people. These recycled face masks are made from fiber and fabric that can be washed and used again and again. There is no need for the people to dispose the mask after one use.
Cost effective- It is mentioned earlier that these masks can be washed and used again. So, the masks are affordable and cost effective for each and every customer. They do not need to buy lots of masks during the serious situation of novel corona virus.
Safe to use- Existing masks in the market do not have air filtering functions so, their filtering efficiency is very less. This makes them impossible to use again. These fiber designed masks do not have deformations due to which these masks are safe to use again (Messe Düsseldorf GmbH, 2020).
Face mask business model
Key resources- In case of this new face mask business, some of the key resources would be financial resources, human resources, and physical resources. Human resources would include researchers, scientists and other employees who would be accountable to produce these face masks. Further, physical resources would include local implantations such as agencies, laboratories and local manufacturing units in the operating markets. Financial resources would comprise investors who would invest their money in this new business venture for effective operations (Geissdoerfer, Savaget & Evans, 2017).
Key activities- Developing recycled masks, communicating, promoting, marketing and selling those masks would be key activities of the business. The product would be produced after research and development process and experiments in laboratories. Further, masks would be sold in chemist shops after making agreements with them.
Key partners- In this face mask business, research and development team, scientists, suppliers and customers would be key partners. Scientists and research and development team would be engaged in developing the products in a right way. Further, suppliers provide raw material like clothe and fibers to complete the production of faces masks. Along with this, customers are also considered as key partners as they are the revenue generator for the business (Matsumae & Burrow, 2016).
Value propositions- The face masks are essential products that would keep the consumers safe from various disease and flu. The value of the face mask business would be created for the company by providing cost effective masks to the customers. Disposable masks are not cost effective and affordable for every customer. Further, online booking and delivery facility would also be provided to the customers to enhance the brand value of face mask business in operating market.
Channels- In order to promote and make the customers aware about the masks, some of the effective channels would be used. Company would communicate the potential customers through medical institutions like hospitals, health personnel, doctors, and pharmacies and make them aware about the benefits of wearing masks. Along with this, communication would also be done through official website and social media channels i.e. Twitter, Facebook, and YouTube.
Customer segments- Health professionals like hospitals, doctors and pharmaceutical customers would be targeted to increase the sales of these recycled face masks. Along with this, general public including farmers, students and veterinarians would also approached by the company.
Customer relationships- By interactive sessions and effective strategies, the company would establish strong relationship with the customers. Along with this, 24/7 support system would be developed so that the queries of the customers can be resolved without any delay.
Cost structure- The cost in this new face mask business would be incurred in purchase of raw material, energy consumption of laboratories, and expenditures of work force. Along with this, there would be marketing and administrative costs, running costs, and maintenance charges while operating the business (Kavadias, Ladas & Loch, 2016).
Revenue stream- The Company would make money by doing partnership with healthcare institutes and pharmacists. This would generate sales lead as hospitals, health personnel, doctors, and pharmacies would promote and make the patients aware about the benefits of using recycled face masks.
What is the key interrelationship between the nine building blocks of face mask business model?
The nine blocks of business model are interrelated with each other. Key interrelationship among the business operations are discussed below:
Finance and operations- In the new business venture, finance is required to operate day-to-day business activities. In this manner, finance department allocates appropriate budget to manage the business operations in effective manner.
Marketing and operations- Various business operations are decided based on the marketing activities by the company. Marketing department is responsible for promoting the products and make the customers aware about the product to increase sales. The production and support after sales process depends upon the sales of face masks.
Finance and marketing- For various marketing and promotional activities, proper funding is required. Finance department decides budget for promotional activities and allocates fund to achieve sales and marketing goals.
Operations and employees- Each department in the company is accountable to operate different face mask business activities. For this, the departments have employees with different skills, knowledge and expertise. The employees are responsible to perform their job role in effective manner so that the business goals and objectives can be achieved (Dudin, 2015).
Increasing demand for recycled mask- It is observed that the demand of recycled face mask is increasing continuously among the customers. The reason of this growth is that these masks are cost effective for the consumers. They can be used again after washing them properly.
Competitive advantage- Currently, there are few companies providing recycled face masks to the customers. There is the availability of masks in the market which can be used one time only. Providing such mask that can be used again after proper cleaning would be helpful for the company to gain competitive advantage in the market ((Brown, 2020).
Pricing factors- As discussed earlier, these recycled face masks would be very cost effective for the potential consumers. Along with this, company would implement some effective pricing methods i.e. the actual cost of the masks would be charged as prices from the customers so that each person can afford these masks easily.
Market requirements- In the situation of novel corona virus, there is high demand of masks in the market as continuous distribution and being sold online, there is the shortage of these masks. By producing recycled face masks, the company would be able to meet the requirement of market for more masks.
Critical risks and assumptions
Financial risks- There can be risk related to proper funding in the face mask business. Lack of investment can affect the business operations such as marketing activities, supply chain process and production process in negative manner.
Product risk- There can be product risk in the new business venture. If the company would not be able to produce recycled face masks in sufficient manner then it has to face product risk. There is the difference between creating a product idea and producing those products in sufficient manner.
Operational risks- At initial level, the business would require administrative infrastructure and huge support. Lack of administrative infrastructure, breakdown of specialized equipments or complex support processes can create operational risks for this new business (Linder & Williander, 2017).
Competitive risk- Although, there are less companies providing recycled face masks in the market but in the serious situation of novel corona virus, new players are coming with this idea. The objective of these companies is making money and meeting the market requirements. This can create competitive risk for the company in the operating market.
Feasibility of idea
In order to analyze the feasibility on different aspects, a feasibility test on different factors is taken. Those factors are strength of business idea, consumer related, industry related, founder related and financial related issues. The complete analysis is given in the appendix part. Based on the analysis, it is observed that face mask business idea of recycled face masks has high potential. Along with this, customers and target market also have high potential in this business. Founder would be new for the market so, he would have moderate potential in market. Overall, this business plan has high potential and feasibility to manage the business effectively.
Based on above discussion, it is clear that it is important for the company to develop an effective face mask business model to ensure its growth and success in future. In case of recycled face mask business, the need of such masks that are safe for environment and cost effective is increasing day-by-day. Providing these masks that can be used again after proper cleaning would be helpful for the company to gain competitive advantage in the market.
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Breuer, H., & Lüdeke-Freund, F. (2017). Values-based network and business model innovation. Face mask business International Journal of Innovation Management, 21(03), 1750028.
Brown, E. N. (2020). These face masks are designed to be washed and reused. Retrieved from https://www.fastcompany.com/90480804/these-face-masks-are-designed-to-be-washed-and-reused
Dudin, M. N. (2015). The Innovative Business Model Canvas in the System of Effective Budgeting: Asian Social Science. 11 (7). 290-296.
Geissdoerfer, M., Savaget, P., & Evans, S. (2017). The Cambridge business model innovation process. Procedia Manufacturing, 8, 262-269.
Grousson, M. (2020). Protective Mask Recycling Offers Promise. Retrieved from https://news.cnrs.fr/articles/protective-mask-recycling-offers-promise
Kavadias, S., Ladas, K., & Loch, C. (2016). The transformative business model. Harvard business review, 94(10), 91-98.
Linder, M., & Williander, M. (2017). Circular business model innovation: inherent uncertainties. Business strategy and the environment, 26(2), 182-196.
Matsumae, A., & Burrow, K. (2016). Business model generation canvas as a method to develop customer-oriented service innovation. In Serviceology for Designing the Future (pp. 551-565). Springer, Tokyo.
Messe Düsseldorf GmbH. (2020). Recyclable face masks to better protect against corona. Face mask business Retrieved from https://www.medica-tradefair.com/en/News/News_from_the_Editors/Recyclable_face_masks_to_better_protect_against_corona
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