Business Model: Cloud Sofa and Mitigating Customer Problems Analysis

This report examines the business model of an innovative product called "Cloud Sofa," designed to address the problems customers face with traditional sofas. The report identifies customer issues such as the difficulty of moving heavy sofas, cleaning challenges, and wear and tear. It details the idea generation process behind the Cloud Sofa, emphasizing its lightweight, portable, and durable design, which aims to provide convenience and comfort. The proposed business model outlines key partnerships, resources, value propositions, customer relationships, and revenue streams. Success factors are discussed, highlighting the innovative design and portability, while also acknowledging potential limitations related to pricing. Finally, the report assesses the feasibility of the idea, considering customer utility and pricing strategies. Desklib provides access to this assignment and many more to aid students in their studies.

Running head: THINK BIG
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Table of Contents
1. Introduction..................................................................................................................................2
2. Customer problems that is required to be mitigated....................................................................2
3. Idea generation.............................................................................................................................3
4. Benefits of the generated idea......................................................................................................3
5. Proposed business model.............................................................................................................4
6. Success factors.............................................................................................................................6
7. Feasibility of the idea...................................................................................................................6
8. Conclusion...................................................................................................................................7
References........................................................................................................................................8
Appendix........................................................................................................................................10

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1. Introduction
Innovation in the processes of the business helps in upholding the proficiency of the
functions as per the aim of its sustenance. The identification of the needs of the customers has
helped in upholding the efficacy of the organizations to bring in innovations in the processes.
The different innovations that are commenced by the organizations have helped in upholding the
efficacy of the performance while operating in the diverse offshore markets. Identification of the
problems that are faced by the customers and the assessment of their needs have helped the
businesses in upholding the efficacy of the innovative products. In this connection, the
introduction of “Cloud Sofa” in the markets has helped in eradicating the different faults that are
faced by the customers through the utilization of the traditional sofas (Zolnowski, Weiß &
Bohmann, 2014). On the other hand, the innovativeness of the idea has helped in upholding the
competitive advantage of the developers in the market. It has helped in adding to the
sustainability of the business while operating in the different markets.
The purpose of undertaking the report is to review the business model and the manner in
which the idea facilitated the organization in mitigating the different faults that are faced by the
customers. The different success factors of the new idea is also being enumerated as a part of the
research which facilitated to identify the feasibility of the idea as per the needs of the customers.
2. Customer problems that is required to be mitigated
The customers faced different faults in moving the traditional sofas from one place to
another for cleaning purposes. On the other hand, there are different faults that are faced by the
customers while packing and moving the sofa while shifting from one residence to another. The

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heavy weight of the traditional sofas resulted to high cost that was incurred by the customers
while shifting the sofas. It affected the smooth processing of the packing and shifting activities
that are often planned by the Western customers. Joyce and Paquin (2016) stated that the
customer also faced faults while cleaning the sofa or upholding the same on an yearly basis.
Most of the traditional sofas get damaged due to overexertion resulting to the crushing of the
fibers and the springs wear out. It affects the comfort levels of the customers.
3. Idea generation
The proposed idea of the cloud sofa will be based on the identification of the faultsthat
are faced by the customers while utilizing the traditional sofas. The idea will be more focused on
the renewable nature of the puff and the light weight design which facilitatedthe consumers in
easily lifting the same and carrying it along wherever they travel. The portable and light weight
nature of the “Cloud Sofa” facilitatedthe relieving the customers of the tension of undertaking a
shifting job. Most of the people, in the Western continents, undertake a shifting job profile,
which requires them to undertake rehabilitation. The light weight sofa idea facilitatedthe same in
keeping up with their practices without considering different concerns relating to the shifts
(Gilchrist et al., 2012). The sofa will work on charging it through an electric connection, which
facilitatedto retain the puff and comfort for a longer duration compared to the traditional sofas.
The light weight design of the sofa will be assisting the customers in utilizing the sofa in
different situations and thereby carry the same with them.
4. Benefits of the generated idea
The benefits of the generated idea are based on the light weight design of the same. The
light weight of the sofas facilitated the customers in carrying the sofa along with them. The idea

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facilitated the customers in reducing their efforts of packaging and moving the traditional heavy
weight sofas while undertaking a rehabilitation. On the other hand, the durability of the product
will be reassuring the comfort levels that will be derived through the utilization of the sofa. The
design of the sofa will be made in a manner in order to suit the purpose as per the needs of the
customers.
5. Proposed business model
The key partnerships that will be commenced by the business are the suppliers of the raw
materials, different agencies and the distributors. The partners facilitatedthe organization in
upholding the smooth functioning of the processes of the business organization while operating
in the different markets (Dudin et al., 2015). On the other hand, the different key resources that
are utilized by the organization are the fibers and the plant and machinery that facilitatedin
smooth functioning of the systems of the business operations as per the needs of the customers.
The key resources of the organization facilitated in upholding the efficacy of the value that is
proposed by the business while operating in the offshore markets (Gilchrist et al., 2013). The
value proposition of the organization is based on the identification of the different faults that are
faced by the customers while choosing from among the heavy weight traditional sofa sets. The
creation of the light weight “Cloud Sofas” facilitated the customers in carrying the same to
different distant places while rehabilitating. On the other hand, the durable nature of the sofas
will be assured through the chargeable nature of the product, which will prevent the wear and
tear of the fibers that are utilized in the sofas (Baran, Janik & Ryszko, 2014).
Consumer relationship facilitated the business in upholding the loyalty of the same while
operating in the diverse offshore markets. Assurance of the quality of the products and the

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different after- sale services that will be offered by the organization while operating as per the
needs of the customers facilitated the organization in upholding suitable customer relationships.
It facilitated the organization in supporting the growth of the organization as per the needs of the
customers. The customer segments that will be targeted by the organization is the elite business
class who will be able to afford the schemed price of the product. It has narrowed the scope of
the organizational processes as per the aim of the business (Muhtaroglu et al., 2013).
The key activities of the change in the systems of the business will be based on the
identification of the needs of the targeted customers and the manner in which innovation can be
induced in the value proposed by the organization (Molina-Castillo, Lopez-Nicolas & Soto-
Acosta, 2012). The key activities that will be commenced by the organization will be based on
the identification of the needs of the targeted customers. The organization is planning to
manufacture “Cloud Sofas”, which facilitated in proposing to the customers a light weight and
durable sofa which is easily portable. On the other hand, the organization developed a website in
order to make the customers aware of their product offerings and the price of the same. It has
helped the organization in upholding their standards with the digital marketing strategies (Guo
& Ma, 2014). The Distribution channels that will be utilized by the organization will be based
on the objective of understanding the market extension that is planned by the business. The
different advertisement channels that are utilized by the organization have helped the same in
undertaking digital promotions. The organization has also set up their website in a manner in
which the online purchasing options are provided to the customers. It has helped in enhancing
the sales of the organization while operating in the diverse markets. The different cost structures
that would be incurred by the organization is based on the purchase of the raw materials and the
cost of implementation of infrastructural and machinery growth. The chief revenue stream of the

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organization will be dependent on the purchases that will be commencedby the consumers in
order to fulfill their needs. The purchases will be adding to the revenue structure of the
organization while operating in the competitive market conditions (Stanko, Molina‐Castillo &
Munuera‐Aleman, 2012).
6. Success factors
Success factors of the business is chiefly dependent on the innovative designs of the
commodities that are presented by the organization. The light weight and portable nature of the
product facilitated the organization in gaining a competitive advantage while operating in the
offshore markets (Block, Thurik & Zhou, 2013). On the other hand, the durable nature of the
commodities facilitated to attract the attention of the customers at large. However, the prices
being high enough to be afforded by the elite business classes might minimize the scope of the
organization for positioning the products to high range of the customers.
7. Feasibility of the idea
The feasibility of the idea is dependent on the utility that the customers will be deriving
from the product offerings of the organization. The maximization of the utility that might be
derived from the proposed product will be enhancing the scopes of growth of availability of the
product in the markets (Rose & Manley, 2012). However, the pricing strategy that is
commenced by the business will be affecting the proper exposition of the product offerings of
the business. Therefore, the feasibility of the product is dependent on the pricing and the utility
that will be derived by the customers through the utilization of the product.

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8. Conclusion
Therefore, it can be stated that innovation facilitated the organization in upholding the
smooth processing f the systems of the business operations as per the objectives. The concept of
“Cloud Sofa” facilitated the organization in proposing a light weight and durable sofa as per the
needs of the customers. The feasibility of the business idea facilitated the organization in
upholding the efficacy of the functions of the business while operating in the offshore markets.

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References
Baran, J., Janik, A., & Ryszko, A. (2014). Knowledge based eco-innovative product design and
development–conceptual model built on life cycle approach. In SGEM2014
CONFERENCE ON ARTS, PERFORMING ARTS, ARCHITECTURE & DESIGN (Vol. 1,
No. SGEM2014 Conference Proceedings, ISBN 978-619-7105-30-08/ISSN 2367-5659,
September 1-9, 2014, Vol. 1, 775-786 pp, pp. 775-786). STEF92 Technology.
Block, J. H., Thurik, R., & Zhou, H. (2013). What turns knowledge into innovative products?
The role of entrepreneurship and knowledge spillovers. Journal of Evolutionary
Economics, 23(4), 693-718.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting.
Gilchrist, B. P., Tumer, I. Y., Stone, R. B., Gao, Q., & Haapala, K. R. (2012, August).
Comparison of environmental impacts of innovative and common products. In ASME
2012 Offshore Design Engineering Technical Conferences and Computers and
Information in Engineering Conference (pp. 825-834). American Society of Mechanical
Engineers.
Gilchrist, B., Van Bossuyt, D. L., Tumer, I. Y., Arlitt, R., Stone, R. B., & Haapala, K. R. (2013,
August). Functional impact comparison of common and innovative products. In ASME
2013 Offshore Design Engineering Technical Conferences and Computers and
Information in Engineering Conference(pp. V004T05A037-V004T05A037). American
Society of Mechanical Engineers.

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Guo, P., & Ma, X. (2014). Newsvendor models for innovative products with one-shot decision
theory. European Journal of Operational Research, 239(2), 523-536.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Molina-Castillo, F. J., Lopez-Nicolas, C., & Soto-Acosta, P. (2012). Interaction effects of media
and message on perceived complexity, risk and trust of innovative products. European
Management Journal, 30(6), 577-587.
Muhtaroglu, F. C. P., Demir, S., Obali, M., & Girgin, C. (2013, October). Business model canvas
perspective on big data applications. In Big Data, 2013 IEEE Offshore Conference
on (pp. 32-37). IEEE.
Rose, T. M., & Manley, K. (2012). Adoption of innovative products on Australian road
infrastructure projects. Construction Management and Economics, 30(4), 277-298.
Stanko, M. A., Molina‐Castillo, F. J., & Munuera‐Aleman, J. L. (2012). Speed to market for
innovative products: blessing or curse?. Journal of Product Innovation
Management, 29(5), 751-765.
Zolnowski, A., Weiß, C., & Bohmann, T. (2014, January). Representing Service Business
Models with the Service Business Model Canvas--The Case of a Mobile Payment Service
in the Retail Industry. In system sciences (HICSS), 2014 47th Hawaii Offshore
Conference on (pp. 718-727). IEEE.

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Appendix
Key Partners
 suppliers
 agencies
 distributors
Key Resources
 fibers
 plant
 machinery
 human
resource
Value Proposition
 light weight
sofas
 durable
 chargeable
and
retractable
 portable
Consumer
Relationship
 after
sale
services
 quality
assuran
ce
Consumer
Segments
 elite
busin
ess
class
 age
group
of
235-
65
years.
Key Activities
 Creation of light weight sofas
Channels
 Advertising
 digital promotions
through websites
 different channels of
distribution including
shipping
Cost Structure
 purchase of the raw materials
 cost of implementation of infrastructural and
machinery growth
Revenue Streams
 Purchases
 different grants and loans
from banks