Analyzing Aeron Chair's Business Model: Innovation & Sustainability

This case study provides a comprehensive analysis of the Aeron Chair's business model, a product of Herman Miller, utilizing the Business Model Canvas framework. It identifies key partners like MASS Design Group and key resources such as skilled designers, which contribute to the chair's innovative and health-positive design. The analysis highlights critical success factors, including the development of Pellicle, an elastomeric suspension that enhances comfort and ergonomic support, and the use of environmentally sensitive and recyclable materials. The study also addresses downside risks, such as loan repayment delays, price fluctuations of spare parts, and potential failures in manufacturing systems. Strategic changes are recommended, including expanding the supply chain network, increasing management involvement, stabilizing financial parameters through trade union partnerships, and implementing a consumer feedback-driven pricing method. The case study concludes that the Aeron Chair's success is rooted in its commitment to innovation, sustainability, and exceptional consumer experience.

Running head: BUSINESS MODEL ANALYSIS OF AERON CHAIRS
Business Model Analysis of Aeron Chairs
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1BUSINESS MODEL ANALYSIS OF AERON CHAIRS
Executive Summary
The Aeron Chair developed by Herman Miller has been premastered from the casters up that
facilitates in addressing the demands of the recent day’s work. The existence of effective and
skilled employees and designers facilitates Aeron Chairs to offer highly innovative cross
performance and health positive design. Efficient implementation of such resources is to offer
assistance with respect to improving productivity by means of developing intense forward facing
focus for relaxed contemplative design. Considering the same, certain strategic changes can be
recommended regarding inclusion of new business partners that can facilitate in accomplishing
necessary business conducts

2BUSINESS MODEL ANALYSIS OF AERON CHAIRS
Table of Contents
1. Introduction......................................................................................................................3
2. Business Description.......................................................................................................3
3. Business Model Canvas...................................................................................................3
4. Business Model Based Nine Building Blocks.................................................................5
5. Critical Success Factors...................................................................................................6
6. Aspects Related with Downside Risks............................................................................6
7. Decided Changes Related with Business Model.............................................................8
8. Conclusion.......................................................................................................................9
References..........................................................................................................................10

3BUSINESS MODEL ANALYSIS OF AERON CHAIRS
1. Introduction
In this increasingly competitive world, the business model canvas is a necessary strategic
management template that must be efficiently developed and followed by the organizations in
order to develop new or in an attempt to document the existing business model (Bekhradi,
Yannou & Cluzel, 2016). If prepared in a strategic manner, the business model canvas serves as
a visual chart with aspects explaining a company’s proposition, value, consumers, infrastructure
and finances. Focused on such benefits offered by the business model, the current paper will
focus on explaining an innovative business organization’s business model and the related critical
success factors that will make it sustainable.
2. Business Description
The Aeron Chair developed by Herman Miller has been premastered from the casters up
that facilitates in addressing the demands of the recent day’s work (Davies & Doherty, 2018).
With the support of this chair’s original co-designer, the company has strategically updated the
chair relied on the current research. Such innovation on Aeron Chairs is made possible through
focusing on the science of sitting, certain developments in materials, manufacturing and related
advanced technology. This chair is made of recycled materials and more than 94% of this chair is
recyclable (de Melo et al., 2017).
3. Business Model Canvas
Key Partners
 MASS
Design
Key Resources
 More
than 100
Value Proposition
 Stay cool
features with
Consumer
Relationship
Consumer
Segments

4BUSINESS MODEL ANALYSIS OF AERON CHAIRS
Group efficient
designers
and
efficient
employe
es
 Well
develope
d website
that
promotes
different
innovativ
e designs
of Aeron
chairs
implementin
g pellicle that
facilitates air,
body heat
and body
vapor to pass
through the
seat.
 Adjustable
pads that
stabilizes
sacrum and
support spine
that helps in
maintaining
healthful
standing
situation
 By
means
of the
compan
y
website,
social
media
and
through
direct
marketi
ng
 Has
attained
an ever
growing
consume
r base
with
maximu
m
consume
rs lying
within
the age
group of
20-35
years.
Key Activities
 Creation of user accounts and wish list
Channels
 Advertising through direct
marketing and mobile
applications
Cost Structure Revenue Streams

5BUSINESS MODEL ANALYSIS OF AERON CHAIRS
 Premium method of pricing for all the Aeron Chairs  Purchase on certain special
occasions and discounts in
buying Aeron Chair
4. Business Model Based Nine Building Blocks
The existence of effective and skilled employees and designers facilitates Aeron Chairs to
offer highly innovative cross performance and health positive design (Güemes-Castorena &
Toro, 2015). The major intention after this is the market research concerning the latest and the
innovative designs that are ruling within the marketplace. Efficient implementation of such
resources is to offer assistance with respect to improving productivity by means of developing
intense forward facing focus for relaxed contemplative design. Through collaborating with its
business partner MASS Design Group, it has been easier for the company to develop innovative
design based on consumer benefits and demands (Hixson & Paretti, 2014).
Aeron Chair product selling vision is to offer exceptional sitting experience to all its
target consumers and the designers of the chair circulates necessary information regarding its
recent innovations. Moreover the company has also decided to follow premium pricing strategy
to gain attention from a huge investor base. Discounts, offers and various advantageous schemes
are also developed through which the employees plan to attain dependence, loyalty and trust
from all its target consumers (Keane, Cormican & Sheahan, 2018).
For gaining attention from a huge consumer base, Aeron company practices direct as well
as indirect marketing. Certain instances of direct marketing include catalogue sales and door-to-
door campaigning. Encouraging online shopping through its website is an instance of indirect

6BUSINESS MODEL ANALYSIS OF AERON CHAIRS
marketing. This facilitates the employees to attain an insight within consumers approach towards
levied services and products (Shahand, van Duffelen & Olabarriaga, 2015).
5. Critical Success Factors
The critical success factors those have facilitated Aeron Chairs to attain competitive
advantage are explained below:
 A highly skilled design team that has developed Pellicle which is the innovative,
elastomeric suspension of the original Aeron chairs (de Melo et al., 2017). This has
reduced circulation restricting pressure points along with increasing the boundaries of
material design. The chairs developed by this design team are based on constant
innovation strategies that enable the consumers in attending chairs having increased
comfort and ergonomic support.
 The manufactured chairs have certain competitive advantages over its major business
rivals for the reason that those are developed in environmentally sensitive design (de
Melo et al., 2017). The materials those are used for manufacturing these chairs are
recyclable and they are designed with having sensitivity to its impact on the interior
environment. Being socially sustainable offers necessary resources for its manufacture.
 Aerom chairs are renowned to be the best chairs to be used in organizations and the cross
performance makes it suitable for a broad range of workplace settings ranging from
residential work points to the shared workshops.

7BUSINESS MODEL ANALYSIS OF AERON CHAIRS
6. Aspects Related with Downside Risks
Downside risks necessities that the companies to deal with the financial losses. This is the
condition at the time the real return is decreased in comparison to anticipated returns. In such
scenario, uncertainty threats the business that affects productivity of the company. This is due to
the fact that magnitude of the company is elevated (Spieth, Schneckenberg & Ricart, 2014). In
case of innovative chair manufacturing company offering Aeron Chairs the aspects those result
in downside risks are explained under:
 Delay in the loan repayment
 Fluctuation in the spare part prices used for chair manufacturing
 Human errors
 Failure of manufacturing system
 Failure of procedures
 Implementing innovative technologies in which there is not adequate technological
capabilities
Price fluctuation of the spare parts of the Aeron Chairs makes it highly complex for the
employees of the company to set the desired prices (Strategized, 2015). This also includes an
interrogative parameter in order to address the needs, demands and desires of the consumers. It
also results in increasing doubt regarding the set premium pricing method. Delay in loan
repayment hampers the stability in the relationship among the consumers and the employees.
This is an indication of experiencing loss in the profit and revenue margin.
System failures increase the difficulties in terms of attaining efficiency in manufacturing
Aeron Chairs. Such failures facilitate the employees to attain negative results. In addition, the

8BUSINESS MODEL ANALYSIS OF AERON CHAIRS
system failures affect the relationship among the consumers and employees (Vial, 2016). The
major cause of such failure is deemed to be procedure failures or human errors. Negligence in
the human errors modification serves as a risk for the organization in improving the business
productivity. Rather than that, such negligence also serves as a concern regarding the quality
consumer service exposure. In the increasing era of competition, the employees might lack the
basic technological abilities. Under this satiation, introducing chairs with innovative design
increases risk for its business with respect to the profit margin and revenue (Zamani, 2016).
7. Decided Changes Related with Business Model
The company producing Aeron Chairs operates its business in collaboration with several
partners that facilitates in manufacturing of innovative chairs. Considering the same, certain
strategic changes can be recommended regarding inclusion of new business partners that can
facilitate in accomplishing necessary business conducts (Zolnowski & Böhmann, 2014). It is
better to get involved in partnership with huge number of suppliers and the might be effective in
order to expand the supply chain network.
Another change that can be implemented in the business is that increased involvement of
the management in business operations. This is for the reason that it might have increased
awareness about performing activities on urgent basis. Theory of planned action and reasoned
behavior is required to be undertaken in order to regulate employee behavior within the
workplace (Spieth, Schneckenberg & Ricart, 2014). Shareholders and shareholders involvement
is also recommended for attaining a viewpoint in their approaches towards the levied services.
The survey and feedback means is deemed to be suitable that can facilitate in increasing stability
within relationship.

9BUSINESS MODEL ANALYSIS OF AERON CHAIRS
Another change that is necessary for the business is that the financial parameter must be
stabilized. For this reason, increased indulgence in partnership is necessary with the trade union
members that can facilitate in averting the instances of price fluctuations, increased exchange
rates and inflation (Spieth, Schneckenberg & Ricart, 2014). Another change that can bring
implemented is one pricing method in which feedback must be attained from the consumers that
might also be efficient in evaluating its feasibility and efficiency.
8. Conclusion
The current paper focused on explaining an innovative business organization’s business
model and the related critical success factors that will make it sustainable. It was gathered from
the paper that through collaborating with its business partner MASS Design Group, it has been
easier for the company to develop innovative design based on consumer benefits and demands.
Moreover the company has also decided to follow premium pricing strategy to gain attention
from a huge investor base. Analyzing the business model of the company offering Aeron Chairs
has revealed that Aeron Chair product selling vision is to offer exceptional sitting experience to
all its target consumers and the designers of the chair circulates necessary information regarding
its recent innovations.

10BUSINESS MODEL ANALYSIS OF AERON CHAIRS
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