Swinburne: Innovative Business Practice - LED Lighting Business Model

This report delves into the key elements of an innovative business model centered around LED lighting. It begins by describing the customer value proposition (CVP), highlighting how LED bulbs offer a superior alternative to incandescent bulbs by reducing energy consumption, lowering electricity bills, and promoting environmental sustainability. The report then explains the profit formula, emphasizing the mutual benefits for both the company and the customers through affordable pricing and longer lifespans. It also touches upon the variety of LED bulbs offered, catering to different customer needs and budgets, including branded options. Finally, the report discusses the processes and resources involved, noting the bright prospects for LED bulb marketing due to their eco-friendliness and efficiency. It concludes that the company's products stand out due to their performance, power consumption, and longevity, all validated through detailed surveys.

INNOVATIVE BUSINESS PRACTICE
INNOVATIVE BUSINESS PRACTICE
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INNOVATIVE BUSINESS PRACTICE
Contents
Describe the key elements of your business model.........................................................................3
Customer Value Proposition (CVP):...............................................................................................3
Profit Formula:.................................................................................................................................3
Processes and Resources:................................................................................................................4
References:......................................................................................................................................5
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INNOVATIVE BUSINESS PRACTICE
Describe the key elements of your business model
Customer Value Proposition (CVP):
In case of business and marketing scenario this customer value proposition term refers to the
number of profits and benefits as well that are actually promised to the customers from the
vendor's side. In this case, these LED bulbs are introduced in the market for those people who
are generally using incandescent light bulb (Payne, Frow and Eggert 2017, p. 480). These bulbs
are neither user-friendly nor environment-friendly. These kinds of bulb emit a huge amount of
heat and also produce huge electricity bills. These bulbs consume a huge amount of energy. For
the reason of higher electricity bills, people become frustrated and come under stress as they
cannot afford the expanse on electricity every month (Eggert et al. 2018, p. 83). Just to help
those common people, our company introduces this innovative product in the market with the
help of which the common people can save their money and invest their valuable money on other
aspects. These LED bulbs are more efficient and sustainable than incandescent bulbs. They
consume lesser energy and they are very environment-friendly. Moreover, they never produce
heat during power supply (Kumar and Reinartz 2016, p. 45).
Profit Formula:
We can see that the innovation of LED bulbs not only beneficial for our company, our customers
are also get benefitted with these LED bulbs. Incandescent bulbs consume a huge amount of
energy for which their electricity bills came abnormally high. In such cases, the electricity
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INNOVATIVE BUSINESS PRACTICE
becomes unaffordable for the common people. In the case of an LED bulb, the power
consumption is very low. Thus the electricity bills also come under to the grip of the common
people. This type of bulb is not very costly and their warranty period is much higher than the
incandescent bulb. Our company introduces various LED bulbs according to their power
generation and longevity. The price also depends upon the sustainability and longevity criteria.
In our company, people can get branded LED bulbs also which are a bit expensive than the
normal local LED bulbs. Nowadays the demand of this LED bulb is much higher. In our store
people can get local LED bulbs at around 8- 10$ AUD and people also can get branded LED
bulbs around 40-50$ AUD. Sometimes common people also demand branded costly LED bulbs
as their power consumption feature is very minimum.
Processes and Resources:
With the help of this detailed research one thing is cleared that the future of this LED bulb is
very bright and prosperous also. As we already know that these bulbs are very environment-
friendly and it consumes very less amount of power thus we can consider the marketing
prospects of these products are very large (Christensen, Bartman and Van Bever 2016, p. 31). It
consumes very little power but it shines perfectly rather better than the incandescent bulbs.
Nowadays various organizations launching these LED bulbs as their newest items but our
products are slightly different than other existing products in the market. We introduced variety
according to the performance, power consumption and longevity of these bulbs. With the
detailed survey, we can make sure that lifespan or longevity our products whether it is branded
or not is better than the existing LED bulb products in the market.
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INNOVATIVE BUSINESS PRACTICE
References:
Christensen, C.M., Bartman, T. and Van Bever, D., 2016. The hard truth about business model
innovation. MIT Sloan Management Review, 58(1), p.31.
Eggert, A., Ulaga, W., Frow, P. and Payne, A., 2018. Conceptualizing and communicating value
in business markets: From value in exchange to value in use. Industrial Marketing
Management, 69, pp.80-90.
Kumar, V. and Reinartz, W., 2016. Creating enduring customer value. Journal of
Marketing, 80(6), pp.36-68.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science, 45(4),
pp.467-489.
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