MGMT20132: Business Idea Report on Safe Listening Devices

This report presents a business idea for safe listening devices, addressing the growing concern for hearing health due to the increasing use of earphones and headphones. It analyzes customer requirements, market opportunities, and identifies the problem of potential hearing loss. The business model, based on the Business Model Canvas, outlines key partners, activities, value propositions, customer relationships, segments, resources, channels, cost structures, and revenue streams. The report also discusses critical success factors, risks, assumptions, and the overall feasibility of the idea. The conclusion summarizes the key findings and emphasizes the innovative design and potential for growth in the market. The appendices include the business model canvas and supporting information.

Running Head: MGMT20132 0
MGMT20132
Student name
5/6/2019

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Contents
Introduction to Business idea...........................................................................................................2
Customer requirements....................................................................................................................3
Market..............................................................................................................................................3
Problem identification.....................................................................................................................3
Business model................................................................................................................................4
Key partners.................................................................................................................................4
Key activities...............................................................................................................................5
Value propositions.......................................................................................................................5
Customer relationships................................................................................................................5
Customer segments......................................................................................................................6
Key resources...............................................................................................................................6
Channels......................................................................................................................................6
Cost structure...............................................................................................................................6
Revenue streams..........................................................................................................................6
Critical success factors of the idea...................................................................................................7
Critical risk and assumptions...........................................................................................................7
Feasibility of the idea.......................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
Appendix........................................................................................................................................12
Appendix 1 : Business canvas model........................................................................................12
Appendix 2.................................................................................................................................13
Appendix 3.............................................................................................................................13

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Introduction to Business idea
Health and safety is the major concern for every individual, which lead to an innovative business
idea in technological industry. Business environment is changing on a rapid speed, and change in
social trends has provided opportunity for the companies or startups to introduce to new products
using better and latest technology. The new product considered to be discussing for this, is “safe
listening music devices.” The business idea is to provide customers with latest design of
earphones and headphones which would not harm humans and are safe for children as well
(Balmer & Abratt, 2016).

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Customer requirements
Customers are looking forward for innovative products and consider features like convenience
and health and safety while purchasing any electronic device. With change in social trends,
customers have been listening music for longer hours and for various purposes. For example,
travellers prefer to listen music while traveling to enjoy. Use of social media has been increased,
where people enjoy watching videos, for which they use earphones/headphone. Moreover, with
current scenario, people prefers to use headphones or earphones for calling purpose as well,
which make the use of these devices to greater use. This need of the customers can be
accomplish with use of new technology and innovative design that will not harm their health due
to such extensive use of music devices (Ang & Rusli, 2018).
Market
Market is the place which involves trading of goods, for which the new product would consider
two modes of market that is physical market and online market. The companies can target
customer through official outlets, or retailing store Wal-Mart, Woolworths, Aldi’s in Australia to
reach out to the customer for these new safe hearing devices. Moreover, the company can target
the customer through online market like official website or retailing ecommerce business like
Amazon, EBay or iconic and various more platforms (Fan & Lau, 2015).
Problem identification
The problem identification is increase in hearing problems due to excessive use of electronic
music earning devices. From appendix 2 it can be said that problem identified that the excessive

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devise can lead to hearing loss problems. Moreover, it has been identified by audiologists that
the headphones sound radiations can cause issues in hair cells and can cause noise induced hear
loss. This increases the need for safer and better devices to decrease the harm to humans while
enjoying music. Moreover, design is the major attraction for the customers which introduce to
this business idea (Thomson, 2016).
Business model
Business model for the new safe hearing music device would include nine major components (as
presented in appendix1) (Osterwalder & Pigneur).
Key partners
Firs components include key partners of the company for manufacturing and trading of safe
hearing devices. This included merchandise supplier that is Suppliers for the products would be
hardware supplies, raw material like metals to manufacture. The supplier must be decided on the
basis to keep the cost to minimum but the quality has to be maintained by the company, which
must be considered. Another key partner included retailers as these are the stakeholders
responsible to understand customer needs, and expectation more closely and are considered to be
approach to reach out maximum customers. Another important partner would be IT software
suppliers; the reason being technological innovation is the key to these product ranges. Moreover
to retail the good through online mode, Digital partners would be another major stakeholder
(Pyka, 2017).

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Key activities
Key activities that will be taken place by the companies to manufacture and trade these goods
would include design thinking to understand the customer major needs and problem
identification to comes up to innovative product to launch by company. Moreover technology
updating is another major activity that will let the company manufacture the goods. Sales
promotion activities and innovative designing would some other key activities. The innovation
design for these product range included basic wired headphones and earphones with safe
technology, in built headphone in pillows, and in built traveling pillow (As presented in appendix
3) (Liedtka & Ogilivie, Designing for growth: a design thinking toolkit for managers, 2011).
Value propositions
The new product range will add value to the customers. The value proposition through offering
this product range would be increase in customer satisfaction, increased safety as the products
are safe listening range of goods. Moreover, the problem identified through analyzing the needs
of eth customer would also add value to the products (Saebi & Foss, 2015).
Customer relationships
Business customer relations are very important part of planning a business model. For customer
relationship building while offering this product range would include customer database that is to
maintain the customers of the company so as to reach them to offer new products. Email
marketing would be another way to contact customer on the basis of their priority or previous
search to maintain relations. Customer engagement and customer feedback could also be used to
satisfy customers and build stronger relationship (Tidd & Bessant, 2013).

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Customer segments
Safe listening product range would be targeting in Australia and the segments that would be
targeted include technical adaptive customer, business persons, travellers, and high income
group. The reason being these are the groups who use headphones to large extent for fun or
calling purpose.
Key resources
Key resources that would be helpful for the company to make this product range or idea
implemented successfully would include human resource, technological infrastructure, and
supply chain.
Channels
As already discuss the channel used by the companies to reach to the customers with new range
of products would be multichannel distribution, using retailers of brick and mortar business and
online retailers.
Cost structure
The major cost to the company for production and market of new safe listening product range
would include cost in technology development, and cost of designing.
Revenue streams
The source of revenue for the companies through new product range would be in form of
increase in sales and increased goodwill due to promotion of safety through products (Tiago,
2014).

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Critical success factors of the idea
For execution of the idea the key critical factors would include knowledge management that is
the appropriate knowledge regarding various aspects like market research has to be conducted
while considering validity, and correct approach to understand the success rate of the product.
This can be done through market testing that is analyzing how customers would prefer the
products and will the products be in demand in near future or not.
Another factor would be top management support. The designing of the product would require
adequate amount of support and authority from top management. Moreover, technology is most
relevant factor that would be responsible for this innovation execution as the technology that will
prevent hair damage due to excessive use of headphones and earphones (Weisberg, 2006).
Critical risk and assumptions
The risk involved in this business idea would be technological failure or technological
degradation. This would include problems that could occur related to technology. The reason
being the major innovation base is technology in this case. The technology has to be up to date in
order to keep the product development feasible and successful in the market.
Another risk involved would be designing of the product. The risk of unrealistic or inconvenient
product designing would also exist. Moreover, the fashion changes rapidly and this could be
risky for the company (Liedtka, Why Design Thinking works: It addresses the biases and
behaviors that hamper innovation, 2018).

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Feasibility of the idea
From the idea it can be said that the company has been considered their social responsibility as
well. This can be said as the company would be working for better health of the customers and
finding ways to decrease the damage to the customers while using nay product. Moreover the
feasibility of the idea can also be assessed through basic innovation of the product that is health
and safety concern of eth customers. This would include reduced electronic radiations from the
devices that can cause damage to hear or any side effect over human’s functionality. Considering
the social trends, the innovative designing would help the company to grow in near future due to
update in technology and unique devices designing like in built headphones in traveling pillow to
target travellers who like enjoying music while traveling (Choi & Park, 2016).

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Conclusion
From the discussion it can be concluded, that the business idea discussed in report was to provide
customers with latest design of earphones and headphones which would not harm individual’s
health and are safe for children as well. The social trends have been changes and customers have
been listening music for longer hours and for various purpose. This need of the customers can be
accomplished with use of new technology and innovative design that will not harm their health
due to such extensive use of music devices. Problem identified was that the excessive devise can
lead to hearing loss problems and design is the major attraction for the customers which
introduce to this business idea. This increases the need for safer and better devices to decrease
the harm to humans while enjoying music. The business idea was developed using business
canvas model and the critical success factors identified were knowledge management, top
management support, and technology.

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References
Ang, C., & Rusli, H. (2018). The Impact of Marketing Mix 4Ps and Consumer Behavior toward
Purchase Decision of Adidas Products. iBuss Management, 6(2).
Balmer, J., & Abratt, R. (2016). Corporate brands and corporate marketing: Emerging trends in
the big five eco-system. Journal of Brand Management, 23(1), 3.
Choi, D., & Park, D. (2016). Innovative service concept generation based on integrated
framework of design thinking and VRIO: the case of information supporting system for
SMEs in Korea. In Proceedings of the 18th Annual International Conference on
Electronic Commerce: e-Commerce in, 23.
Fan, S., & Lau, R. (2015). Demystifying big data analytics for business intelligence through the
lens of marketing mix. Big Data Research, 2(1), 28.
Liedtka, J. (2018). Why Design Thinking works: It addresses the biases and behaviors that
hamper innovation. Harvard Business Review, 96(5), 72-79.
Liedtka, J., & Ogilivie, T. (2011). Designing for growth: a design thinking toolkit for managers.
New York: Colombia Business School Publishing.
Osterwalder, A., & Pigneur, Y. (n.d.). Business Model Generation. New Jersey: Hoboken.
Pyka, A. (2017). Innovation, structural change and demand evolution: does demand saturate? .
Journal of Evolutionary Economics, 337.
Saebi, T., & Foss, N. (2015). Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management

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Journal, 201.
Thomson, H. (2016). Marketing small and medium sized enterprises in the digital age:
opportunities and challenges.,. Teaching Business & Economics, 20(1), 4.
Tiago, M. (2014). Digital marketing and social media: Why bother? Business Horizons, 57(6),
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Tidd, J., & Bessant, J. (2013). Managing Innovation: integrating technological, market and
organisational change (5th ed.). chichester: Wiley.
Weisberg, R. (2006). Creativity: understanding innovation in problem solving, science, intention
and the arts. Jhon Wiley & Son: NJ, 104-340.