Human Behavior in Business Model Innovation †MyAssignmenthelp.com

Question: Discuss about the Human Behavior in Business Model Innovation. Answer: Introduction: JET.com is an e-commerce company which specifically deals in a grocery. It was started as a startup in 2014 and eventually grown over a very short span of time (Perez 2014). It is a home for all household grocery items whichever are required by a homemaker. Also, the company has been acquired by WALMART and is officially a subsidiary of it. Being an e-commerce company it provides all of its services online to its customer associated with it. Operating on a very large scale and growing as a grocery company in a short span of this e-commerce website has gained a large number of customers who are dedicatedly associated with it. The business entity is making use of Graphic Clip-boards for making the products available in an innovative manner. In this innovation the customers if searching for a product can search the products by uploading the image on Web-portal of the company. The related options are made available and customer can make choice as per their convenience. Further concerning with its market, so it operates online through the internet so its market is categorized as the virtual market. There is still no existence of its store physically. But its competitors are alibaba.com, amazon.com etc. just like them it operates but it became a subsidiary of Wal-Mart as for now. Business model Canvas A business model is such on which a company operates. Every organization consists of a complete structure upon which its operations are conducted (Roberts, Earnhardt Herron, 2017). The following is the business model canvas in regards to Jet.com: Key Partners It is totally associated with WALMART as its subsidiary but first, it started as a whole eventually it merged under it. Key Activities Key activities are related to an online sale of grocery items to people in the US so as to earn a maximum amount of profit (Fan et al., 2017). Value Proposition The needs and wants of customers are taken care by Jet.com in a very appropriate manner so that there is growth in business as well. So as to do it, it uses a very good pricing algorithm so as to attract and satisfy with the value of money they pay for the products Customer Relationships Maintaining the relationship with customers is as similar as to take care of your belongings (Ng, 2017). After sale services and return policy of Jet.com is very good that customers feel reliable while buying any products from the website. Customer Segments Jet.com have a very defined customer segment as for now as it is an e-commerce website so it is available to many people on a large scale whosoever has access to the internet in the US. People who are being targeted by WALMART are similarly important for Jet.com as it is a subsidiary of it (Zhang, Sun, Lyu 2017). Mainly the females are targeted as they are more concerned about the factor to buy grocery for houses. Eventually, all the other segments such as children men etc. are also targeted. Key Resources The key resources of the company are its products, people, finances it acquires as it is a subsidiary of the giant company WALMART it is in safe hands in the name of resources. Channels There are several channels of communication, products distribution, and sales through which a company sell its products (Remane et al., 2017). Likewise, Jet.com uses online means to reach to its customer and deliver them through courier and various channels of distribution. Cost Structure Costing structure is very much authenticate and expertly driven upon which the customers can rely and totally be in a composition of (Rb, Bahemia, Schleyer 2017). Revenue Streams The company is already working on a very reliable pricing algorithm which returns the company in a very proportionate manner that it supplies satisfaction to a customer as well as the cost of goods is also actualized (Sathananthan et al., 2017). Key relationships across the nine building blocks Each and everything in a business whether it is retail or online operates with integrity. It is considered as a wholesome of the success which a business acquires in a market. It is very obvious that nine block business model activities are also related to each other because to reach on top Jet.com requires a package of all activities in a proper manner. Alone a single activity cannot lead to its success in the market (Tonchev et al., 2017). Hence, all of the activities in nine block model are related to each other. The further key relationship in nine block model is that it is working wholly upon a single firms function and that is Jet.com. Wholly it possesses coordination among function after function which is really important for the company to grow as a whole from each section of it (Dudin et al., 2015). Likewise, there is a relationship between the function that if one will prevail another will be its successor which is shows how much a function is dependent on another in terms of compatibility. The whole company is working upon interconnected functions like these which is a factor for responsiveness and reliability. So, as these functions are really significant for the firm to have proper functioning of its operations. Critical success factors Success factors are those factors which help a firm to reach its mission which has been set by the management. In other world critical analysis of this factor includes two subsections that are key result area (KRA) and key success factor (KSF). Simultaneously for Jet.com the key success factor is to provide and reach a large number of customers as well as the key result area is to perform better as a e-commerce website to reach its goal by targeting the customer through a pricing strategy. This will aid in attracting the customers through the website to maintain long-term relationship with them. In order to gain sustainable success, Jet.com needs to focus on very critical factors such as the area upon which it is trying to target and the success factor it is keeping aside for its strategy. As it is working on the pricing strategy which means its way of targeting its customer is through giving them value for the price they pay. As a subsidiary of WALMART, it has to work very enthusiastically upon these factors as they play a very important role. Plan, process, people, power and contingency strategies, these all are the factors which come under critical analysis and play a very important role in success for a company (Onken, Campeau 2016). Planning is forecasting future which wholly means setting up the goal, mission and vision for the company and also the norms upon which the company will operate on long-term basis. Downside risk The downside risk is a risk associated with the losses which might incur while a company is working. In regards with Jet.com contribution to downside risk will be done through various strategies where it works upon the best pricing strategy also it has the best parent company under which it is working as a subsidiary (Muzellec, Ronteau Lambkin, 2015). Hence, the chances where loss may incur would be dealt in such a way that the company will not face any downfall in operations. Likewise, maintenance of provident funds and reserves is a must. The actualization of the financial resources in such a way that if any downside situation occurs it can be faced properly. Changes to the business model In case of Jet.com there are various changes that can be introduced and which will make the company grow worldwide. First, renovation of the website from time to time and making it more attractive those customers get attracted towards it. Second, user-friendly website so that no one faces any kind of problem while operating it. Also the after sale services of the company must be at a very high level those customers are satisfied fully. In order to maintain the decorum of the company, all the engineers and workers who are working for it must be very much appropriate and they must also be satisfied because a good team always leads to success. I would like to keep the algorithm strategy of pricing as it is very fascinating and attractive (Sathananthan, 2017). Also, the company might work on factors such as building its physical stores as well as the Amazon is doing which will be really beneficial for it. Despite being wholly relying on the pricing strategy it will also work upon various other sections where there is required like- development of business in various other countries, targeting every age group, planning to expand the section in which the company is operating, can also launch something new in association with it etc. A business model of Jet.com is consistent and it is up to date and the concentration must be more on maintaining it as the environment upon which it is working is very dynamic and ever-changing and as each one of us knows that change is inevitable when it is concerned with business entities. There may come situations where a company might face any kind of problem so my preferably focus would be on planning and forecasting the future at an urge so that there is no problem arises which is unable to handle by the e-commerce website. The secondary focus would be upon the competitive strategy as the rivals are more in this field. 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