University Chair Business: Business Model Canvas and Market Entry Plan

This project outlines a comprehensive business model and market entry plan for a prototype chair company, targeting college students and cost-conscious customers. The assignment utilizes the Business Model Canvas to detail key partners, activities, value propositions (low-cost, trendy chairs), customer relationships, segments, resources, channels, cost structures, and revenue streams. The market entry strategy emphasizes physical stores, an official website, and e-commerce platforms like Amazon and eBay. The plan incorporates economy pricing, geographic and demographic segmentation, and a marketing strategy combining online and offline promotion, along with promotional and distribution strategies. The document references various academic sources to support the business decisions.

Creativity and innovation
Student Name:
Student ID:
University Name:
1

Contents
Discussion........................................................................................................................................3
References........................................................................................................................................6
2

Discussion
The business model canvas of the prototype chair company is as follows:
Key Partners- key partners who are involved in the prototype chair business are chair
manufacturing company, transportation agents who are responsible for transporting products to
stores from manufacturing units, suppliers who are responsible supplying raw materials, product
designers designing the product and e-commerce partners of such as Amazon and E-bay.
Key Activities- key activities which are involved are designing the prototype of chair, sourcing
of raw materials from suppliers required for product production, product manufacturing,
advertising and marketing and providing after sales services to the customers.
Value proposition- value proposition of the prototype chair is low cost study chair which offers
a unique comfort experience, high quality chairs accompanied with trendy designs and vibrant
colours.
Customer relationships- As opined by Widyasthana et al. (2017) the customer relationships
strategies associated with the prototype chair company are high social media involvement with
intent for reaching out to more target customers, offering unique experiences of in-stores,
convenient payment options for customers, free Wi-Fi access to customers across all physical
outlets, special discounts and offers for loyalty and free delivery above a certain billing amount.
Customer Segment- customer segments which will be targeted by the company are college
students seeking a comfortable study experience, cost conscious customers, start ups and small
businesses who are in search of high quality, trendy design chains at lower prices.
Key Resources- key resources requisite by the business can be divided into physical and labour
resources. The physical resources includes infrastructure such as company stores, actual
furniture, trucks for transporting raw materials to manufacturing unit, tools and machineries
needed in the manufacturing process. The requisite labour resource required is high skilled
labour at reasonable costs.
Channels- for the products sales the company will use channels like physical stores, official
website of and e-commerce portals e.g. Amazon and E-bay.
3

Cost structure- the company’s cost structure revolves around the cost of raw materials, product
manufacturing, labour costs, marketing and advertising, transportation, infrastructure and store
maintenance.
Revenue streams- As stated by Wallin, Still & Komi (2015) the revenue streams of the
company are the sales of the product of the company through the stores of the company, the sales
of the product of the company through the official website of the company and the sales of the
product of the company through e-commerce portal such as Amazon and Ebay
The market entry plan of the chair company is as follows:
Market Entry Strategy- As stated by Inshakov & Orlova(2014) the market entry strategy which
will be followed by the company is by setting up physical stores of the company at various
convenient locations in order to attract more number of customers. The products of the company
will also be available through the official website of the company and also through other e-
commerce portals such as Amazon and E-bay.
Target Customers- The target customers of the company are mainly students who seek low cost
trendy and high quality products. The other target customers of the products are cost conscious
customer and small businesses who are looking to cut their costs.
Pricing strategy- As opined by Karttunen, Pynnönen & Immonen (2015) the pricing strategy
which will be used by the company is economy pricing which involves setting low prices of the
products for cost conscious customers in order to attract more target customers.
Segmentation- The segmentation to be used by the company are geographic segmentation and
demographic segmentation in order to reach to a larger number of audiences.
Positioning- The company provides the best quality furniture at the lowest possible cost fitting
the needs and requirement of every customer type.
Marketing strategy- As opined by Baptista, Karaöz&João(2019) the marketing strategy which
will be used by the company is both online and offline marketing strategy. The offline marketing
strategy involves in-stores promotion of the products and advertisement of the product in various
leading newspaper. The offline marketing strategy involves online and social media marketing of
4

the product and also advertising the products in the website of the company and other e-
commerce platforms.
Promotional strategies- The promotional strategy which will be followed by the company are
sales promotion in the physical stores and online platform of the company and also sending
direct mails to the customers offering them discounts and special offers.
Distribution strategy- As stated by Block et al. (2015)the distribution strategy which will be
followed by the company is distributing the products of the company through direct distribution
channel of the company without any intermediaries and also distribution through e-commerce
partners such as Amazon and E-bay.
5

References
Baptista, R., Karaöz, M., &João, C. L. (2019). Diversification by young, small firms: The role of
pre-entry resources and entry mistakes. Small Business Economics, , 1-20.
doi:http://dx.doi.org/10.1007/s11187-019-00142-z
Block, J. H., Kohn, K., Miller, D., & Ullrich, K. (2015). Necessity entrepreneurship and
competitive strategy. Small Business Economics, 44(1), 37-54.
doi:http://dx.doi.org/10.1007/s11187-014-9589-x
Inshakov, M. O., &Orlova, A. A. (2014). INNOVATIVE START-UPS IN RUSSIA:
CREATION AND MARKET PROMOTION
PROBLEMS. VestnikVolgogradskogoGosudarstvennogoUniversiteta.Serii︠ a︡ 3, Ė konomika,
Ėkologii︠ a︡, (1) Retrieved from https://search.proquest.com/docview/2096646468?
accountid=30552
Karttunen, E., Pynnönen, M., &Immonen, M. (2015). Anticipating competitive position of start-
up in pre-entry stages. Manchester: The International Society for Professional Innovation
Management (ISPIM). Retrieved from https://search.proquest.com/docview/1780138014?
accountid=30552
Wallin, A., Still, K., & Komi, M. (2015). Start-up entrepreneurs' key concerns on path of
entrepreneurial innovation. Manchester: The International Society for Professional
Innovation Management (ISPIM). Retrieved from
https://search.proquest.com/docview/1780138015?accountid=30552
Widyasthana, G. N. S., Wibisono, D., Purwanegara, M. S., Siallagan, M., &Sukmawati, P.
(2017). CORPORATE VENTURE CAPITAL STRATEGY FOR SELECTING START-
UP INVESTMENTS IN INDONESIA USING AN AGENT-BASED MODEL: CASES
OF A MOBILE APPLICATION START-UP, PAYMENT SOLUTION START-UP AND
DIGITAL ADVERTISING START-UP. Journal of Entrepreneurship Education, 20(2), 1-
22. Retrieved from https://search.proquest.com/docview/2024440997?accountid=30552
6

7