MGMT20143: Deconstructing Kasita Company's Business Model & CSF

This report analyzes Kasita Company's business model, which offers compact, functional living spaces, addressing the urban housing crisis in the USA. It identifies the customer/market problem of housing scarcity and affordability, highlighting how Kasita's solution benefits consumers by providing cost-effective and space-efficient options. The report assesses the feasibility of the business idea and proposes customization as a key innovation. Utilizing the Osterwalder and Pigneur business model, it examines key partners, activities, resources, value propositions, customer relationships, segments, channels, cost structure, and revenue streams. The critical success factor is identified as the uniqueness of the business idea in solving housing scarcity and affordability issues. The report concludes that Kasita's success lies in its innovative approach to accommodation, and customization will further enhance its appeal and sustainability. Desklib provides access to similar solved assignments and past papers for students.

Running head: THINK BIG
THINK BIG
Name of the Student
Name of the University
Author note

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Abstract
The United States of America is one of the most urbanised countries in the world. Therefore
it is natural to suppose that the housing and accommodation demand in the country is also
high. The Kasita Company has come up with a unique solution to provide functional compact
living and working space that has the feature of mobility. The innovation that is suggested in
this paper is addition of the feature of customisation. This will increase customer interest and
add value to the product.

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Table of Contents
Customer/Market Problem.........................................................................................................3
Benefits of the idea in solving the Problem...............................................................................4
Feasibility...................................................................................................................................5
Business Model: Osterwalder and Pigneur................................................................................6
Critical Success Factor...............................................................................................................7
Conclusion..................................................................................................................................7
Reference:..................................................................................................................................9
Appendix..................................................................................................................................10

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Introduction
One of the main problems faced by today’s urban population is the problem of
accommodation. Because of population explosion and unavailability of space there has been
crisis of living space in the world. The Urban areas of the United States of America are
among most populated in the whole world and there is a constant need of more spaces
required for living, work purpose, recreation and similar other causes. Therefore there is a
constant need for innovation in terms of creating new spaces. Keeping that in mind Kasita
Company has innovated living spaces that are very small and compact with all the amenities
that can be provided in a full-fledged apartment (Kasita.com, 2018). Also the company
provides space for creative purposes like studios and exhibition halls. The business idea is
very unique and creative and solves a very crucial problem of the present time.
Customer/Market Problem
The various studies conducted about the housing condition in the United States has
presented a grim picture where the scarcity of housing has been seen to be very prominent in
the present times. One of the think tanks in this field known as the Urban Institute has again
reaffirmed this fact by their newest research in which they have stated that. The “demand
supply gap” was of 4, 60,000 according to the Urban Institute for the year 2015 (Kusisto,
2018). The way this research was done was by calculating the number of new homes
constructed and the number of homes becoming obsolete or number of new people are
looking for homes. Therefore the people who are looking for new homes may constitute those
who have problems in their existing living space as these may have become obsolete, or
children of a family may have grown up and become self-dependant. There could be new
entrepreneurs with new start-ups who needs work spaces or office spaces in the bustling
urban areas. However these people are short of huge capital which is needed to buy
accommodation and new work places. This is one of the very pertinent market problems that

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is being faced recently and needed urgent attention. What is also important to know is that the
market people was not only to be solved but also the solution had to be innovative and
aesthetic as it included building spaces for living or working to the new age population. Also
the area of space within the urban areas of America had no chances of increasing, so the place
was limited but the demand of new housing at a cheap rate was increasing, the market
problem demanded a very unique solution which addressed both of these problems (Jones &
Richardson, 2014). This was the market problem which was considered before the unique
accommodation solution was provided by the Kasita Company.
Benefits of the idea in solving the Problem
The idea that is being developed is very unique in terms of existing market scenario.
The company came up with the unique solution of providing smaller compact living spaces
and work places that can be constructed according to the customer demand. The space that is
utilised in this regard is very small and within that compact small area a whole functional
living space can be constructed. Apart from that the functional area can be utilised in a
multiple number of ways, which increases the efficiency of the space. The benefits therefore
includes benefits towards the consumers who will be getting their requirements met within
the stipulated budget or less than that. It will be solving the problem of lack of living spaces
in the urban areas of the United States and also it will provide cheap work places in the cities.
Entrepreneurs can get their own offices, or creative minds will be able to get their own
studios and exhibition areas. The compact and functional living spaces do not need a huge
area to be set up, therefore the scarcity of space is also addressed in this way. The benefits are
not only social but also economical. What can be added as innovation in the existing idea is
making the functional living or workplaces to be more customisable as per the demand of the
customers. The floor planning and the overall structure of the functional living space is fixed

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and not yet customisable. However the functional areas can be utilised in various purposes
and various ways.
Feasibility
The functional compact living spaces are already being produced by the Kasita
Company in the United States of America. The company is already providing the functional
living spaces to the customers across the country. These homes are being supplied to the
customers according to their desired objective of utilisation. The homes are small spaces
which have multiple functions such as bedding, dining, kitchen, drawing, in a compact space.
The bathroom is also fitted in the area in a way that it doesn’t penetrates in the living space
but it also often uses the faeces and excretory products to be converted to manure so that
gardening is possible using the produced manure. The idea is very feasible by the technology
that is being used by the company to create compact functional living spaces. The new idea
that is suggested, is customising the living spaces and work places being produced by the
company. This is also feasible as will include only additional technological knowhow to
customise the existing models of the living spaces in new and innovative ways. This will be
made possible by developing the technical knowledge of the existing engineers and workers
and by adding new experts to the workforce who will be giving additional information in the
layout of the compact living spaces. These spaces can be also moved and transported easily
from one place to another. Therefore it is helpful in the field of mobility as well. The mobility
makes it easier to shift from one place to another.

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Business Model: Osterwalder and Pigneur
Key Partners
 People
looking for
living and
work
spaces in
affordable
price.
Key Activities
 Providing
living spaces
to the
customers
looking for
homes in
affordable
rates and
when there is
space crunch.
 Providing
functional
workspace
Value Proposition
 It provides
unique
solution to
the home
seekers
 It helps in the
process of
making the
business
activities
easy for the
entrepreneurs
.
Customer
Relationships
 emails
 calls
 messaging
Customer
Segments
 young
consumers
looking for
living
spaces or
work
spaces.
Key Resources
 Engineers
 The
equipment
 The
innovative
business
model.
Channels
 Social
media
 Website
 Television
Cost Structure
 The payment and wages to the employees
 Marketing and advertisement campaigns
 Cost of the equipment and servers
Revenue Streams
 Sales
 Maintainance
The business model used in this case is the Osterwalder and Pigneur business model.
This model is used to understand the various aspects of the business and who are the
stakeholders in this case (Osterwalder & Pigneur, 2010). The key partners in this business are

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the customers who are aiming at buying or owning living spaces and work spaces anywhere
they wish to. The key activities of the company are to provide the compact living spaces and
to engage in maintenance activities of the existing and already sold units of compact
functional living spaces. Therefore the key activities are focused on a particular kind of
product. The key resources of the company includes the Engineers, the equipment and the
innovative business model. The value of the company lies in the fact that the company
provides unique solution to the home seekers and helps in the process of making the business
activities easy for the entrepreneurs. The customers will be kept in contact by emails, calls
and messaging. The segmentation of the customers include young consumers looking for
living spaces or work spaces. The channels of promotion includes Social media, Website and
Television. The cost structure include the payment and wages to the employees, marketing
and advertisement campaigns and cost of the equipment and servers. The revenue of the
company comes from sales and maintenance.
Critical Success Factor
The critical success factor includes mainly the uniqueness of the business idea which
solves the critical problem of scarcity of housing and accommodation. The number of people
are increasing, the space is decreasing and the demand of housing is also increasing.
Therefore this business idea was very important in order to solve the market problem. This
business idea at one hand solves the social problem of housing scarcity and on the other hand
it also solve the economic problem of the people who cannot afford costly housing.
Conclusion
It can be concluded that Kasita Company has been very successfully providing the
customers with the compact functional living spaces. The new business innovation that is
suggested- customisable spaces, will be helpful in bringing the much needed change in the

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way people perceive accommodation. They can comfortably stay in a compact and affordable
living space that is customised according to their demand. Therefore this innovation is very
necessary in order to cater to the growing demand of housing and accommodation in the
United States of America.

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Reference:
Jones, C., & W. Richardson, H. (2014). Housing markets and policy in the UK and the USA:
A review of the differential impact of the global housing crisis. International Journal
of Housing Markets and Analysis, 7(1), 129-144.
Kasita.com (2018). How It All Started. Retrieved from https://kasita.com/
Kusisto, L. (2018). The Next Housing Crisis: A Historic Shortage of New Homes. [online]
WSJ. Retrieved from https://www.wsj.com/articles/american-housing-shortage-slams-
the-door-on-buyers-1521395460 [Accessed 2 Aug. 2018].
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for
visionaries, game changers, and challengers. John Wiley & Sons.

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Appendix
Key Partners
 People
looking for
living and
work
spaces in
affordable
price.
Key Activities
 Providing
living spaces
to the
customers
looking for
homes in
affordable
rates and
when there is
space crunch.
 Providing
functional
workspace
Value Proposition
 It provides
unique
solution to
the home
seekers
 It helps in the
process of
making the
business
activities
easy for the
entrepreneurs
.
Customer
Relationships
 emails
 calls
 messaging
Customer
Segments
 young
consumers
looking for
living
spaces or
work
spaces.
Key Resources
 Engineers
 The
equipment
 The
innovative
business
model.
Channels
 Social
media
 Website
 Television
Cost Structure
 The payment and wages to the employees
 Marketing and advertisement campaigns
 Cost of the equipment and servers
Revenue Streams
 Sales
 Maintainance