The Business Model
The Business Model * Based on your reading of Chapter 4 from the Hess book, “An Elevator-Pitch Business Model,” and the “Why Business Models Matter” article, complete the following: a. Write a concise two-sentence “elevator pitch” customer value proposition for your real-world business. (You can use the examples in the Hess book as a guide. ) We will offer services to assist customers acquire any type of property to be used in any kind of way that is responsible to the needs of all parties and governments.
Delivering exceptional results by constantly improving on service and processes, being accountable for culture, a winner’s intensity, and innovation that endears a strong service ethic. b. Then, incorporating your elevator pitch, expand it to a full but still crisp business model description, or “story,” as Magretta refers to it. Establishing a business to satisfy the needs of a community or region through the practice of ethical behavior and providing individuals or business that desire to acquire property locally or globally quality in service and process through the transaction process.
We offer services to the acquisition of any type of property to be used in any kind of way that is responsible to the needs of all parties and governments Uncontested Market Space Strategy—First Pass Hamel and Prahalad (2005) write, “The strategist’s goal is not to find a niche within the existing industry space but to create new space that is uniquely suited to the company’s own strengths—space that is off the map. ” Based on your reading of the articles “Value Innovation: A Leap into the Blue Ocean” and “Strategic Intent,” in two paragraphs, apply the thoughts of the authors and describe how your eal-world business attempts (or will attempt) to create new competitive “uncontested market” spaces, and what the primary challenges to such a strategy are or will be. Be specific. Strategic intent will be to grow the organization organically to increase profits by 15% per month and maintain and highly ethical work environment and relationship with customers, employees, stakeholders, and allies. We will focus on the needs of the customer with respect to culture of the region, economics, social environment, and community needs.
Ethics will be a strong part of the of the implementation of this strategy to find and partner with likeminded individuals with a belief to and commitment to represent themselves in an honest way being accountable for their actions. Form alliances with individuals that don’t lie, cheat, steal, and create value for the customer through providing thorough, high quality service and products, use ethical procedures and processes, and develop long term relationships with the customer base instead of the arm’s length deals that usually transpire.
General Force and Customer Analysis With the reading SWOT Analysis I: Looking Outside for Threats and Opportunities in mind, answer the following questions: a. Identify and discuss the three most important general environmental forces or workstyle and lifestyle trends that are shaping the “big picture” opportunity for your real-world business. Mobility, technology, and ergonomics: Mobility is being able to work from home or office and form alliances to work as a team when necessary.
Working in a team with other individuals in different regions could reduce set up cost, the need for office space, and costly travel to other regions. Using technology to reduce the cost associated with travel and establishes a communication base with allies and team members. Working with allies would assist with handling traffic in other regions coordinating transaction activities and maintaining a cultural presence and providing a physical presence in the market place. Ergonomics building green and designed environmentally friendly for employee comfort, safety, and healthy environment.
Daily operations would be on an ad hoc fashion constructing the day around the most important functions early on in the day whether it be documenting recent transactions or setting up meeting with prospects. b. Perform a customer analysis, and using the categories and ideas from pages 6-8, describe as carefully as you can who the customers of your business are, what “problems” they have that your company can solve, and so forth. Limit your analysis to two single-spaced pages. Use of the internet for the purpose of making money will it harm or make your business profitable.
The use of the internet will create new customers and new market segments from which a company can grow and be more profitable. In real estate transactions there are numerous negotiations and other communications that are necessary to complete a transaction. In situations where travel and long distance communications can be very expenses the use of the internet to communicate and transmit documents for the purpose of setting up transactions. New markets and customers can be accessed via the internet and alliances can also be established to assist in moving into market segments reducing cost and regulation of local government.
Opportunities in the form of alliances, diverse market diffusion strategies, create value by providing ergonomic and energy efficient building processes reaching more and varied consumers in varied market segments. Pricing in the housing markets along with scandal in the lending industry has created a big problem with home acquisition for many local residential consumers. Many qualifying criteria for getting home loans have become more restricted as a consequence of the widespread fraud in the lending industry.
As a result of this fraud many communities have been flooded by situations where the accumulation of distressed homes is in an overabundance in many communities. With many communities containing distressed properties devaluation of property values resulted in many owners losing money on their investments. Seemingly with lower home values and lower interest rated this would stimulate buying by consumers for home sales. But with the tougher qualifying standards for lending products fewer consumers are able to purchase and trending toward leasing.
Building green also has negatively affected the market place locally because of the cost associated with higher material cost to build green. The opportunity that is created by communities containing distressed property sales is it attracts a different type of buyer to market too. The market share for this type of buyer will be fiercely competitive because more often than not this type of investor is cost conscious and highly educated with their investment practice. Customers are the ultimate target to market too for a business to be profitable in real estate.
So it is very important to define your customer and market segment. So generally when you think of customers for real estate business you immediately think of businesses or individuals interested in the acquisition of property. You have three levels of customers all related to financial position of household. You have the economy customer that lives from check to check and almost always want more than they can afford and is misguided because they believe they can spend any money without a budget. You have median income household which may be considered middle class most of these customers are budget wise and educated buyers.
Lastly you have the custom buyers where they are all six and seven figure incomes. Opportunities for new customers exist when you enter the international market where you have foreign investors interested in properties located locally. You may also have businesses locally wanting to acquire property globally through a local broker with international access. The customer base will need to be redefined by demographics as well the type of buyer or seller you are working with. Personally I have had the best success with working customers in a certain age, income, and educational level in the residential market place.
