Business Plan for Healthcare Sensor: MA625 Entrepreneurship Analysis

This report presents a comprehensive business plan for a healthcare sensor designed to assist elderly individuals and their families. It begins with an executive summary and table of contents, followed by an introduction outlining the plan's purpose: to analyze the business model for a new healthcare sensor product. The report details the product's function, target market, demographic and psychographic segmentation, and utilizes the business model canvas to analyze key partnerships, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. The analysis includes a discussion of the product's goals, competitive landscape, and a conclusion summarizing the key findings and recommendations for the product's success. The report also contains references and an appendix with the business model canvas.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light in identifying the business plan of healthcare sensor which is
considered to be the brand new product in the market. With the help of the business canvas
model, the different kinds of aspects such as revenues, cost structure along with value
propositions have been analyzed. In order to become successful in the competitive business
environment, the goals of the product is to make it affordable by the social classes ranging from
lower and upper middle class families that will be appropriate for growth of the company and
products.

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Table of Contents
Introduction......................................................................................................................................3
Overview of Healthcare Sensor.......................................................................................................3
Description of Market......................................................................................................................4
Demographic Segmentation.........................................................................................................4
Psychographic Segmentation.......................................................................................................4
Analysis of the Business Canvas Model of Healthcare Sensor.......................................................4
Key Partners.................................................................................................................................4
Key Activities..............................................................................................................................5
Value Proposition........................................................................................................................5
Customer Relationships...............................................................................................................5
Customer Segments.....................................................................................................................6
Key Resources.............................................................................................................................6
Channels......................................................................................................................................6
Cost Structure..............................................................................................................................7
Revenue Streams.........................................................................................................................7
Analysis of Goals required to be achieved......................................................................................7
Analysis of Competitors..................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Appendix........................................................................................................................................11
Business Canvas Model.............................................................................................................11

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Introduction
The report throws light on the analysis of the business plan for the new product along
with identifying the different aspects of the business model which will be helpful for gaining
competitive position in the competitive business environment. The description of the target
market is required to be analyzed in psychographic and demographic terms. The analysis of
competitors plays a major role which will be helpful for identifying their aspects and they can
introduce the different kinds of new values which is not present in the existing products in the
market. The main aim and purpose of the report is to prepare a business plan for a new product
which is the health care sensor for the successful operation of the business through identification
of the source of revenue, intended base of customers along with details of financing.
Overview of Healthcare Sensor
In the present scenario, the young generation individuals are becoming busy with their
daily work schedules and they do not have time to spend with their parents. As the parents are
growing old, they can fall sick and they do not have anyone at home to inform regarding the
same. In such scenario, a proper instrument is required to be introduced which will be helpful for
them to communicate with their children and let me know about their ailing condition. The
healthcare sensor will be working as an alarm which will be worn by them as watch and similar
watch will be provided to their children. In case of emergency, there will be alarm which will be
ringing and it will inform the children regarding the heath conditions of their parents at regular
intervals.

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Description of Market
Demographic Segmentation
The healthcare sensor will be suitable for the ones who belong to 60 and above years of
age group. The gender will be for both male and female individuals whose children are working
and have busy work schedules. All the individuals can afford the product healthcare sensor as
the main aim is to provide support to the ones who need the same (Zahra & George, 2017).
Psychographic Segmentation
On the basis of the psychographic aspect, all kinds of social class will be able to afford
the product starting from lower class, working class or upper class. The lifestyle of such
individuals will be retired customers and elderly customers who cannot take care of their health
themselves and require support (Saebi & Foss, 2015).
Analysis of the Business Canvas Model of Healthcare Sensor
Key Partners
The major partners of the healthcare sensor product includes the wellness and fitness
organizations who will be selling such products in their outlets and making it available for the
customers who needs it. The other partner will be the different suppliers who sell such sensors
for the wellbeing of the different individuals appropriately (Read et al., 2016). The software
developer will be the other partners who will be helpful in improving the scenario and making
the product more successful and approachable for all customers in the market.

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Key Activities
The major activities which will be provided to the target customers includes sensors
which will be working when the patients require help and their near and dear ones can be
informed regarding the same through the respective sensor which will be available with both the
parties (Rayna & Striukova, 2016). The respective activity will be helpful in providing tension-
free aspect and the patients will be treated within time and they will be leading tension free life
as well. The production of the product is essential along with software integration which will be
assisting in making the product successful.
Value Proposition
The value proposition of the company includes providing the customers with managing
the health of the individuals along with meeting the unmet needs. The main aspect is to provide
end-value to the customers which will be increasing the brand image of the product among the
customers (Massa, Tucci & Afuah, 2017). The respective healthcare sensor product is required to
be providing the patients with low care costs and making them feel more satisfied with the
product and it will be improving their health as well.
Customer Relationships
The relationships with the customers can be maintained by the company through
providing the post feedback regarding the products and their experience after using the product.
(Burns, 2016). Customer relationship is required to be maintained appropriately with the
company through hospitals or distributors from wherein they have purchased the products and
submitted their reviews (Linder & Williander, 2017).

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Customer Segments
The main segments of customers include the different kinds of retired and elderly
individuals who stay at home alone and there is no one for them to take care. In the busy work
schedule, their children are busy with their work; therefore, the healthcare sensor will be worn by
both the children and their parents as it will be helpful for helping them to serve them better
(Bocken et al., 2016).
Key Resources
The major resources which will be playing an effective role in promoting the new product
Healthcare Sensor through ISO certified manufacturing, financing along with product
development team which will make the product successful and unique from the other
competitors (Kirzner, 2015). As it is the new product and it is electrical in nature, the certified
manufacturing plays a vital role in gaining huge popularity and it will be making the product
more famous in the market.
Channels
The major channels which will be incorporated by the company include the different
kinds of manufacturers as well as distributors of device. Furthermore, there can be launch of
website for the product as it will be beneficial in increasing the publicity of the product in the
market (Hitt & Duane Ireland, 2017). The word of mouth is the other aspect which can be
followed to introduce and make the product popular in the market which will be enhancing their
growth.

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Cost Structure
There is inclusion of different kinds of costs which includes the development related
costs, legal and marketing related costs which will involved in the growth of the product in the
market. There will be inclusion of other costs as well such as cost related to production that will
enhance the growth of the company and product in comparison to other competitors.
Revenue Streams
There will be different kinds of revenue streams included in the manufacturing of the
respective product in the market that is inclusive of the rental fees as the sensor can be taken for
a trail period by the customers as to check the overall functionality of the product (Foss & Saebi,
2017). Moreover, there will be inclusion of later online consulting related fees and initial direct
sales that will be related to the application development fees.
Analysis of Goals required to be achieved
With the introduction of the healthcare sensor, the main goal of the product is to provide
tension free approach to the different customers who need the product. With the introduction of
the healthcare sensor, the main activity which will be performed by it is to generate alarms which
will be helpful in informing the near and dear ones about the health of the patients and they can
rush to them immediately. The healthcare sensor needs to provide a healthy lifestyle to the
elderly individuals who stay alone or the ones who cannot take care of their health and need to
inform their children regarding the same as well (Cooper & Folta, 2017). The proper promotion
of the health along with promoting the peaceful lives of the different customers is essential
in nature which will be supporting the profitability of the product and help the needy people to
afford the same at a lower rate.

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Analysis of Competitors
After the introduction of the respective product healthcare sensor, there will be less
number of competitors present in the market. As the technology which will be used in the
preparation of the sensor, it incurs huge cost related to software development which will be
requiring huge costs and there is development of software and patents and legal terms which
cannot be fulfilled by the others.
Conclusion
Therefore, from the above analysis of the business canvas model, it can be identified that
the respective product will be mainly targeting elderly individuals who live alone and cannot
take care of their health. In such scenario, the respective sensor will be helping in managing the
issues through providing the tension free solution and it will be helpful for them in making the
product successful and improve the overall effectiveness of the company.
The value proposition of the product will be delivering the customers with various kinds
of end-value to customers to improve the services provided by the product and making the
customers happy and tension free. The main aim of the product is to provide the customers with
proper and tension free lifestyle that will help them in saving their lives of near and dear ones
accordingly. The cost of the product will be minimal as the product will be suitable for all groups
of individuals who are elderly in nature and cannot take care of themselves.

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References
Bocken, N. M., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), 308-320.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Cooper, A., & Folta, T. (2017). Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, 348-367.
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how far
have we come, and where should we go?. Journal of Management, 43(1), 200-227.
Hitt, M., & Duane Ireland, R. (2017). The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, 45-63.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Linder, M., & Williander, M. (2017). Circular business model innovation: inherent
uncertainties. Business strategy and the environment, 26(2), 182-196.
Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model
research. Academy of Management Annals, 11(1), 73-104.
Rayna, T., & Striukova, L. (2016). From rapid prototyping to home fabrication: How 3D printing
is changing business model innovation. Technological Forecasting and Social Change, 102, 214-
224.

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Read, S., Sarasvathy, S., Dew, N., & Wiltbank, R. (2016). Effectual entrepreneurship.
Routledge.
Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal, 33(3), 201-213.
Zahra, S. A., & George, G. (2017). International entrepreneurship: the current status of the field
and future research agenda. Strategic entrepreneurship: Creating a new mindset, 253-288.

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Appendix
Business Canvas Model
Key Partner
Different hospitals
and doctors
Pharma and Insurance
Organizations
Distributors and
manufacturers of the
product
Software development
team
Key Activities
Production
Licensing
Proper platform
for networking
Value
Proposition
Provide tension
free approach to
the patients and
their near and
dear ones
Personalized
sensor
Customer
Relationships
Personalized
monitoring of
data
Customer Segments
All social group
elderly individuals
inclusive of lower,
middle and upper
income group
individuals who stay
alone and cannot take
care of their health
Key Resources
ISO certified
manufacturing
process
Product
development
and functioning
Channels
Direct Sales
Website of
company
Word of mouth
Cost Structure
Cost related to production
Costs related to development
Legal and Marketing Related Costs
Revenue Streams
Fees related to development of application
Rental Fees as it will be sold on rent for providing
experience to customers
Later online fees related to consulting along with
initial sales which is direct