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Business Model Canvas Part 2: Example

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This is an example of how the Business Model Canvas can be used to remodel a failing business.
The example used is for SWATCH. And how Nicholas Hyeck created a new Value proposition. Watches are can jewellery and fashion items

Publicada em: Negócios
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Business Model Canvas Part 2: Example

  1. 1. Business Model Canvas: BMC Part II An Example Cloverhill Consulting The future is developing… Shaun B. Brailsford T:: +44 (0)779 206 2662 E:: shaun@cloverhillconsulting.com Skype:: Shaun.Brailsford
  2. 2. Business Model Canvas: BMC SMH (Swiss Corporation for Microelectronics and Watchmaking Industries Ltd.)
  3. 3. 1982 - The Situation Business Model Canvas: BMC
  4. 4. 1982 - The Situation Business Model Canvas: BMC  Quartz technology  Swiss watch market share falls to 15%  Banks shutting down money supply  Manufacturers think – We can’t produce that quality at a that price  Fear of cannibalising profits  Asuag & SSIH Bankrupt  James Bond looses his Omega
  5. 5. Business Model Canvas: BMC Nicholas G. Hayek
  6. 6. A New Value Proposition Watches are jewellery Business Model Canvas: BMC
  7. 7. The Strategy  Upmarket watches positioned as heritage pieces  Create a new watch for low end market  Manufacturing cost to be less than 15% of retail price  Reduce components parts from 91 to 50  Insisted on owning 51% of the new company Business Model Canvas: BMC
  8. 8. Business model canvas: BMC SMH (Swiss Corporation for Microelectronics and Watchmaking Industries Ltd.)
  9. 9. The Marketing  Fashionable, low cost & lifestyle  Pricing $40 - $50  30% of retail price to go into marketing  Limited edition runs  Commissioned Artists & industrial designers to create “The Look”  Stand alone Swatch stores Business model canvas: BMC
  10. 10. KP KA VP CR CS KR CH C£ R£ 10 SMH PRODUCTION & QUALITY CONTROL R&D HR, FINANCE ETC MANUFACTURING PLANTS BRAND PORTFOLIO HIGH END & LUXURY SEGMENT MID SEGMENT MASS MARKET BLANCPAIN, OMEGA, LONGINES, RADO TISSOT, CERTINA, HAMILTON, MIDO SWATCH, FLIK FLAK
  11. 11. KP KA VP CR CS KR CH C£ R£ 11 SWATCH PRODUCT DESIGN MARKETING & COMMUNICATION SWATCH DESIGN SWATCH BRAND MASS MARKET TRENDY LOW-COST LIFESTYLE (SECOND) WATCHES LIFESTYLE MOVEMENT MSWATCH SHOPS RETAIL LIFESTYLE EVENTS GUERRILLA MARKETING MANUFACTURING PAYMENTS TO SMH MARKETING WATCH SALES SMH AS PRODUCTION PARTNERS
  12. 12. KP KA VP CR CS KR CH C£ R£ 12 SWATCH Fashion item
  13. 13. The Lessons  Identified the Value Proposition  Defined clear Customer Segment  Clearly structured Channels to Market  Manufactures as Key Partners  Product design as a Key Activity Business Model Canvas: BMC
  14. 14. The Conclusion With a new business model a failing industry can now delivers sustained revenue Business Model Canvas: BMC
  15. 15. Business Model Canvas: BMC Cloverhill Consulting The future is developing… Shaun B. Brailsford T:: +44 (0)779 206 2662 E:: shaun@cloverhillconsulting.com Skype:: Shaun.Brailsford

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