Applied VR: A Digital Case Analysis of the Business Model

This report provides a comprehensive digital case analysis of Applied VR, a company specializing in therapeutic virtual reality for pain management. The analysis begins with an overview of Applied VR's business operations, highlighting its use of VR technology to deliver healthcare solutions to patients across various hospitals and countries. It then delves into the problems associated with VR products, such as potential side effects and high costs, and identifies the target customers who are most impacted by these issues. The report explores the company's value proposition, evaluating its strengths and weaknesses, and discusses why the product is required by people. The analysis incorporates relevant marketing theories and concepts, supported by citations from academic journals and books. Finally, the report examines the business model, target market, core value proposition and revenue model of Applied VR, providing a thorough assessment of its potential for success within the healthcare sector. This document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Digital case analysis
about Applied VR

Table of Contents
Overview and working of the business............................................................................................1
Problem regarding product..............................................................................................................1
Target customers who are facing the problem.................................................................................1
Solution of the problem...................................................................................................................2
Value proposition.............................................................................................................................2
Reason behind compelling or not compelling value proposition.....................................................2
Reason behind the requirement of the product by the people..........................................................2
References:.......................................................................................................................................3

Overview and working of the business
AppliedVR is a leading technical company based in US in 2013. It offers therapeutic
virtual reality for pain management which delivers the new era of healthcare. Company is
developing the digital medicine for next generation. They are building the validated therapies
and platform so that each and hospital can access this concept (Jung and tom Dieck, 2018). It has
transformed the healthcare sector with the help of the power of pixels. It has provided the
scientifically designed health solutions to approximately 20,000 patients in over 250 hospitals
and in 8 countries internationally. Their working includes the self regulation of cognitive,
emotional and physiological treatments to pain and stresses. They are working to innovate virtual
reality pharmacy which personalises therapies, content and media as per the patient's
requirements.
Problem regarding product
There are problems associated with the virtual reality products such as it has a tendency
to cause vertigo, disorientation, nausea and many more other similar symptoms in some
customers even during the casual work like gaming (Grudzewski, Awdziej, Mazurek and
Piotrowska, 2018). This can more negatively affect the patients because they may usually be
more susceptible to such problems because of their existing health conditions and current
treatment they are pursuing. Moreover, it is costly in hardware and software, there is a risk of
addiction as well, it causes motion sickness, it is experimental in nature and can not get replaced
with the real life practice.
Target customers who are facing the problem
There are customers who are facing the problem with the virtual reality products such as
the luxury car lovers, DIY home makers, frequent travellers, fitness buffs, millennials and
boomers and patients in health care (Hagl and Duane, 2020). They are facing the problem in
some or the other way due to the high and advanced technology involved in it. It is difficult to
handle because of the sensitivity and delicate nature of it. It is expensive to purchase and
maintain the same. Moreover, using such devices causes health problems as well and therefore,
this needs to be resolved.
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Solution of the problem
Solution for the company is to produce the virtual reality products in such a manner so
that it must not contain any technical device which is costly and delicate to handle, company
must focus on the cost saving and alternative solution for the same. Solution for the customers is
that they must use such technical devices in a limited manner because excessive use of the device
can cause the health problems and in order to avoid it, its usage must be reduced as per the time
instances (Liou and Chang, 2018).
Value proposition
It is defined as the answer statement where company specifies and justifies about the
product and services they are offering is how much valuable and how it is better than other
companies providing similar products and services (Loureiro, Guerreiro, Eloy and
Panchapakesan, 2019). AppliedVR has a value proposition such as they are offering better
quality of technical devices in virtual reality specially for the health patients in the similar cost as
by others. This details and specifications are not provided by other companies in a similar
manner as compared to the AppliedVR.
Reason behind compelling or not compelling value proposition
Company's estimated annual revenue is currently $18.9M per year. This shows that the
value proposition of the company has proved to be compelling as in such less time period of
establishment, they have earned a great profit with the expansion of the business globally and
reason behind this is that they have the good marketing strategy and operations to manage the
organization and customers in a very potential manner with a new invention of the product in an
effective and efficient manner (Farah, Ramadan and Harb, 2019).
Reason behind the requirement of the product by the people
Virtual reality product produced by the firm is required in various sectors such as
educational purposes, surgical training, dentistry, operation planning and test runs, patient
informing and consulting, dealing with motor skills disorders, overcoming stress, fears and
complexes, patient distraction and health lifestyle promotion (Bonetti, Warnaby and Quinn,
2018). Because the product has different benefits in using such as it has good variability and
customization, renders several areas of implementation, it concerns with the safe and controlled
environment, it provides 3D visualization and offers extensive psychological effect.
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References:
Books and Journals
Bonetti, F., Warnaby, G. and Quinn, L., 2018. Augmented reality and virtual reality in physical
and online retailing: A review, synthesis and research agenda. Augmented reality and
virtual reality, pp.119-132.
Farah, M.F., Ramadan, Z.B. and Harb, D.H., 2019. The examination of virtual reality at the
intersection of consumer experience, shopping journey and physical retailing. Journal of
Retailing and Consumer Services, 48, pp.136-143.
Grudzewski, F., Awdziej, M., Mazurek, G. and Piotrowska, K., 2018. Virtual reality in
marketing communication–the impact on the message, technology and offer perception–
empirical study. Economics and Business Review. 4(3). pp.36-50.
Hagl, R. and Duane, A., 2020. Exploring How Augmented Reality and Virtual Reality
Technologies Impact Business Model Innovation in Technology Companies in
Germany. In Augmented Reality and Virtual Reality (pp. 75-84). Springer, Cham.
Jung, T. and tom Dieck, M.C., 2018. Augmented Reality and Virtual Reality. Empowering
Human, Place and Business. Cham: Springer International Publishing.
Liou, W.K. and Chang, C.Y., 2018, February. Virtual reality classroom applied to science
education. In 2018 23rd International Scientific-Professional Conference on
Information Technology (IT) (pp. 1-4). IEEE.
Loureiro, S.M.C., Guerreiro, J., Eloy, S. and Panchapakesan, P., 2019. Understanding the use of
Virtual Reality in Marketing: A text mining-based review. Journal of Business
Research, 100, pp.514-530.
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