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Product Vision
In an existing and competitive market, the need to develop a compelling and innovative product is important. The new product should meet the needs of all the stakeholders, and be part of the company’s mission and vision. To ensure that the new product creates customer traffic, an intensive feasibility study is essential in determining the expectations of the market.
Moreover, a business model that showcases the qualities needed for business to succeed would be created about the company’s business and corporate values. To succeed in the competitive market, a well-articulated product vision acts as a motivator to stakeholders and is key to bringing growth and profitability to the business. The new market is in food and beverage industry, and it seems viable due to low restrictions to entry, low start-up capital, and a high market share.
Product vision and organizational values
Product vision is an outline of the expectations of the product. According to Tim (2015), a good product vision incorporates the needs of the customers, the value the product will add to the customer, and how it will gain a competitive edge. To develop a persuasive product vision, one should illustrate the elements of motivation towards the new product, make the vision be an inspiration to all stakeholders, integrate all parties to the product, and make sure the vision gives guidance towards decision-making processes.
For a start up, a compelling product vision goes a long way in ensuring the business gets a substantial market share. If the vision does not meet the standards of the product and market competition, the business is bound to fail. For the new product, the product vision will be “Our vision is to improve the lives of people daily. Our organizational goal supports the vision by making sumptuous and natural foods and beverages that help people preserve their health.”
Business and corporate values define and support product vision and mirror the company’s image (Wendy, 2013). These values incorporate internal and external structures of the business, assist in decision making and are used by customers and potential investors to evaluate the company.
Thus, there is a dire need to come up with business and corporate values that will help the new business realize its goals. The business and corporate values that I intend to create are: commitment to a quality product and other aspects of the business, exercising utmost integrity towards all stakeholders, innovation for product and brand improvement, corporate social responsibility, and having a balanced work life for the employees.
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Need for the product and market overview
As a start-up company, there is a need to diversify the product portfolio to ensure that the business is sustained. Depending on one or a few products is risky thus it is important to develop the new product so as to tap a new target market for increment in revenue generation. There is a market gap in the form of unsatisfied customers who are ready to exploit new products thus if the necessary components are incorporated into the product the potential for business success is high. Thus, the need for a new product is to increase product portfolio for the business, increase market share, increase revenue and profits and increase value to customers.
The new market is in foods and beverage industry. Though it’s one of the most competitive industries in the world, entry is free and restrictions are few, initial capital set up is low since raw materials are easily and cheaply accessible, a high number of potential customers and operational costs are low. Though competition is high due to a high number of substitutes, customers go for healthy and nutritious products which most competitors haven’t been able to provide.
Currently, most customers have filed complaints regarding the service and quality of products offered by most of the existing businesses thus creating a golden opportunity for the business to introduce the product. Customers will flock in the firm to try out the new product and will be looking forward to a product that satisfies their needs. Therefore, since the business is committed to the provision of a quality product as per the product vision, customer traffic, and revenue will increase leading to sustained growth for the whole organization.
Business model
The business model is the layout that a business uses to describe what it intends to offer in the market, project profitability and market expectations. A great business model is one that attracts customers to the new product, retains the customers, increases value to the customers, and generates revenue to the business. On the other hand, a business model that makes it hard to satisfy customers does not position the product in the market, and does not provide required capital for growth should be avoided.
Thus, for a business model to qualify for application, it should bring value to the customer and the business (Andrea, 2015). Some of the elements of the business model include a statement describing what the business has to offer that the competitors do not have, product choices in the form of a menu, the targeted customer base, profitability and financial forecasts, and strategies the business will use to penetrate the market.
By using the example of Amazon, the applicable business model will be price cut so as to first penetrate the market for long-term sustainability at a later stage. The first thing to do is to get market share, and since the industry is already over-populated, provision of quality products at low prices to the target market.
Afterward, given that the company will grow, supplies will be engaged so that they can reduce the price for the supplies, more investment will be made on capital structures and technology so that service and product delivery will be enhanced. As a result of reduced product costs, the business will continue to provide the products at low prices and market share will increase.
Feasibility analysis
The main reason for carrying out a feasibility study is to identify root issues that relate to a particular product or service. At the end of the analysis, the business idea should be termed as viable or be rejected (UWCC, 2013). Most importantly, the feasibility study should identify potential roadblocks for the business idea so that necessary precaution measures can be undertaken. For the analysis, the areas covered include market, financial, and organizational analysis.
- Market analysis: Competition is intense in food and beverage industry due to low start-up costs and not restrictions on entry, market is in existence for the product due to high number of unsatisfied customers, raw materials are readily available since most of them come from nearby town that is agricultural based, the target population for the product is the working population since it the premises are within the town centre.
- Technology and organizational analysis: Since the company is partnership form of business, the partners will take full control of managing the business thus it will be possible implement the idea. It is easy to plan and execute the idea when owners of the business are the ones involves since they have undivided interest towards the business. To tap into technology, use of online marketing tools would serve as an innovative tool to access a market share.
- Financial analysis: initial set-up costs and operating costs will be funded by partners from the capital contributed during the start-up process.
From the feasibility analysis, the business idea is feasible since most of the required resources are available. However, some of the roadblocks the new product may face are competition from substitutes, financial problems since it’s hard to source for revenue without enough security, and conflict of interest among the partners.
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Future financial position of the company
The future of the company depends on the success rate of the new product line. Getting into a new venture is usually a risky process, and it requires proper implementation and dedication to succeed. Based on the feasibility analysis, there is a high chance that the product will succeed and bring profits both in the short-term and long-term. If all the stakeholders have a common goal and use the product vision and set up business and corporate values, the future financial position of the business will be high.
From the market analysis, it is evident that a market gap exists in the form of value addition to the customers. It, therefore, calls for the business to acquire quality materials and manufacture products that meet the desires of the customers, which will drive sales and profits thereby. Additionally, supplies are available from the nearby community thus costs will reduce and make it possible to offer the new products at low prices.
The premises are based within the town center, and the target market is composed of the working people who have specific times for accessing the stores. Thus it makes it easy to plan for processing, packaging, and sales. The use of the online platform is meant to increase awareness of the new products and increase market share. Though competition will be high due to existing substitutes, financial success is likely to be realized in the short term.
Penetrating a new market and get a consistent flow of customers usually takes time but if a proper feasibility analysis is carried out and right resources put in place, success is guaranteed. Food and beverage industry is one of the most competitive due to few restrictions to entry and low start-up capital requirements. However, it takes a compelling product vision and company values to be able to make right decisions that will see the business satisfying the needs of the customers and generates profits.
If all the needs of the stakeholders are met and every employee works towards realization of the product vision, a business is guaranteed of future financial growth if the right resources are matched with the market needs. The business already has enough capital to implement the idea, the owners will take responsibility for managing the resources, a gap exists in the market for possible product penetration, and fresh and quality raw materials are readily available.
References
Andrea O. (2015). Business model, 2. Retrieved from https://hbr.org/2015/01/what-is-a-business-model
Roman P. (2014). Tips for creating a compelling product vision. Retrieved from http://www.romanpichler.com/blog/tips-for-writing-compelling-product-vision/
Tim F. (2012). Product vision. Retrieved from https://www.quora.com/What-are-some-good-examples-of-a-product-vision
UWCC (2013). Conducting a feasibility study. Retrieved from http://www.uwcc.wisc.edu/manual/chap_5.html
Wendy (2013). Company core values: Why to have them and how to define them. Retrieved from https://7geese.com/benefits-of-having-core-values-and-how-to-set-them-in-your-organization/
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