Yume Foods Company is positioned as a food joint established in Australia and operates its business in several business segments. The segment in which the company has its business includes clothing and general merchandise, food products, logistics and financial services (Caetano et al., 2017). Moreover, the organization has its business operation within certain geographical regions including Australia. The Australian food segment encompasses the resale and procurement of food products to the Australian consumers. The company offers quality surplus food at highly discounted rate It has more than 100 stores all over Australia with more than 50shops that connects businesses that have excess supply with business that can use them (Yume - Food Wholesalers., 2018). The company is also involved in selling gasoline and leverages its distribution network to offer wholesale merchandise for the supermarkets of third parties. The company’s 165v odd general merchandise discount stores have its business operation within the brand name. It also has more than 95 consumer electronics shops under the brand and operates in commercial food sector (Dudinet al.,2015).
The purpose of the report is to analyze the critical success factors in obtaining sustainable growth for the company after carrying out analysis of business model canvas. The scope of the report is to evaluate the relationship between the business model canvas factors identified for the company. The first section of the report is to explain the business model canvas of Yume Foods Company; the second section will explain the relationship among factors of business model canvas. The third section will explain the critical success factors in attaining completive advantages. The fourth section will explain factors causing downside risks and finally the last section will offer self reflection on the business changes.
Business Model Canvas
· Providers of logistics resources
· Group of brands and many more
· Joint venture
· Joint venture with Commonwealth Bank named Yume Foods Ezy Banking
· Direct purchasing
· Supply chain management
· Refresh stores
· Inventory management
· Updated product offering
· Consumer service
· Yume Foods Groupis made of most recognizable and trusted retail brands
· Good prices
· Largest hotel and operator of gambling machine in Australia
· Broad range of promotions and offers
· Positioned as largest Australian company with high retail interest all across Australia and New Zealand
· Home improvement
· Culture of consumer first team
· Users community
· Price based
· Consumer satisfaction
· Reward programs
· Price based
· Loyalty program
· Online and in-store
· Bigger bags at self-service checkouts
· Being a member of loyalty program focused on attracting consumers within supermarkets through offering huge discounts
· Tracking trends for making space for new products
· Ensuring they stock right products in right stores within righttime
· Personalizing members for making them highly useful
· Analyzing the ways consumers shop for importing services
· Serves more than 18 million consumers every week
· Logistics ad stores resources
· By revenue is positioned as second largest company in Australia
· Developing trends and generating modern retail model that are followed by all its stores
· Five and dime stores
· Cards and discount dockets
· Operates more than 12650 poker machines in Australia
· Mobile apps
· Virtual stores
· Social media
· New delivery options
· Massive market
· Small businesses
· Price sensitive consumers
· Cost of goods
· Logistics expenses
· Advertising and marketing
· Online sales
· Retail sales
The relationship among Business Model Canvas Factors
Business model canvas factors of Yume FoodsCompany explains the performance of the business through nine interrelated factors mentioned in its business model. This includes key partners, key activities, value proposition, consumer relationships, key resources, channels, consumer segments, cost structures and revenue streams (Fritscher&Pigneur, 2014). From the business model canvas, it has been gathered that its major business focus is on the provision of financial and retail services to the middle and upper income groups. Through employing all its value propositions, it tries to offer better consumer relationships. This is dome through offering quality services and products to all its consumers all across Australia. This is attained by the company by means of fresh food strategies, human resource strategies and price strategies (Fritscher&Pigneur, 2015). Yume FoodsCompany employs all its key partners and activities in order to increase efficiency of its business and for being cost effective. Business model of the company is integrated in such a manner that all the aspects of such canvas is focused on offering consumers with effective shopping experience all through the year. The channels and cost structures of Yume FoodsCompany is observed to be linked together in order to gather high revenues from broad consumer segment (Jackson, Scott &Schwagler, 2015). These aspects of the company’s business model canvas focuses on its business operations, consumers and people. Based on its major partners and value proposition strategies, the company has focused on implementing distinct initiatives for the consumers. This is for the reason that they remain informed regarding healthy food choices along with facts on fresh foods. The company has also employed its business model effectively in developing a website that can inform consumers regardingeasyaccessibility of products (Joyce &Paquin, 2016). Through employs its major advertising partners and focusing on consumer relationships, Yume FoodsCompany developed commercials on “Fresh Food Update” that informs the fruits and vegetables available in a particular season. The magazines named Fresh Food Magazine and Australian Good Taste is also developed by the company as a consumer retention strategy that has healthy recipes in it (Joyce, Paquin&Pigneur, 2015).
Critical Successful Factors in Attaining Sustainable Growth
There are certain critical success factors for Yume Foods Company that has facilitated this organization to attain unique sustainable position in the retail industry along with obtaining certain competitive advantages over its major business rivals (Osterwalder, 2017). These success factors are explained below:
- There are some major competitors of Yume Foods Company such as Tesco and Morrison. In attaining competitive advantage over them the company has several chain stores that can impact its food market and can facilitate in offering quality service.
- The company has more than 273028 employees and is positioned as one of the largest Australian retailer, which attains profits of more than 2 billion pounds that has international sales and domestic market share (Toro-Jarrínet al.,2016). Yume Foods Company always cooperate with the local suppliers and to share the company relevant industry experience along with technology.
- Critical success factors of the company have an exceptional power of advertising along public relations through the media use, newspapers along with journals.
- Another critical success factor of Yume FoodsCompany has attributed to impact the nation in which it operates (Zolnowski, Weiß&Bohmann, 2014). For instance, it offers numerous jobs due to the reason that it offers jobs as the individuals of host nations are the ones which works within the supermarkets. The prices of products within the company are cheaper along with affordable in comparison to other retailers and the shopping is convenient to the consumers.
- Yume FoodsCompany offers likely access to a broad range of markets that facilitates the generation of new services and products (Fritscher&Pigneur, 2014). The company has established an efficient leadership within the food retailing industry. This critical success factor of the company facilitates to enter retailing of food and non-food goods that was a clarified and distinct brand proposition which had a focus on a suitably defined market segment. The company is recognized as a company that offers the most customizing and effective service relied on effective consumer relationship management (Fritscher&Pigneur, 2014).
- Yume FoodsCompany has made a considerable contribution to the perceived consumer advantages of the outcome (Plenter et al., 2017). The company offers a significant consumer advantages.
Analysis of Factors in Decreasing Downside Risk
Yume FoodsCompany is observed to deal with certain risks in operating its business all through its business locations. Risk are observed to be different based on their intensity and the ways in which it can add vulnerability to the position of the market (Dudinet al., 2015). The company is deemed to face with certain downside risk related factors such as financial, strategic, compliance and operational risks that are present within the online and retail markets.
Strategic factors can result in the downside risk within Yume FoodsCompany. It is necessary for a company to decrease environmental pressures along with promoting social responsibility (Fritscher&Pigneur, 2014). This is necessary for the company to operate successfully within the competitive retail trading market. Focus aspects that might result in such risks include food waste, diversity, own brand packaging, carbon emission and ethical along with sustainable sourcing.
Certain operational factors might result in downside risks for Yume FoodsCompany. Certain factors that might result in such risks can be related with events and are not limited to failures to meet people product safety standards (Dudinet al., 2015). Such risk factors also include security, information technology, data breaches, assets along with business disruptions that might lead to cyber-attacks. Not managing these factors might result in industrial disputes, supply chai interruptions or technology failure.
Compliance factors can also result in certain downside risks for the company. Yume FoodsCompany is subject to certain applicable laws, contractual agreements and regulations and is likely to face certain adverse legislative or regulatory changes (Fritscher&Pigneur, 2014). Such adverse changes or breaches might result in drastic negative effects on the company’s profitability and reputation, considerable fines along with certain other consequences.
Self-Reflection on Business Changes
From the business model canvas of Yume Foods Company, I have gathered that certain recommendation can be provided to the company in order for them to attain competitive advantages. Based on the aspects of the business canvas of the company, I can state that for positive business change low price strategy, growth strategy and growth strategy can be implemented by Yume Foods Company (Caetano et al., 2017). I would prefer change within the pricing strategy structure for the reason that it offers negative perception regarding the quality of the profits. In order for the customer to believe that the company offers superior quality, price needs to be a bit more than usual. This can also generate a value-added service considering the input expenses. In addition, based on the analysis of the business canvas model I would consider change regarding increasing the percentage of organic food within the stores in order to promote healthy eating. I can also consider changes in the company’s safety strategy, financial services and one stop shop (Fritscher&Pigneur, 2014). When the safety strategy is implemented in the company, I suppose it can have a multiplying impact and can reach numerous people in a short span of time. Moreover, I would prefer that the company must bring certain changes regarding diverting its focus on less than two offerings for the reason that a lot of products might generate a confusion concerning the real product offering (Caetano et al., 2017). Regarding bringing in any change concerned with low priced strategy I would prefer increasing the price a bit as high quality does not match the price. I might just focus on including all expenses; improve product packaging along with setting a higher mark-up. I will try to merge the visa and other cards together in order to improve the company’s financial services and increase efficiency of consumers when they visit its store.
The scope of the report is to evaluate the relationship between the business model canvas factors identified for the company. The report revealed that Yume Foods Company employs all its key partners and activities in order to increase efficiency of its business and for being cost effective. Business model of the company is integrated in such a manner that all the aspects of such canvas are focused on offering consumers with effective shopping experience all through the year. It can also be concluded that in order for the customer to believe that the company offers superior quality, price needs to be a bit more than usual. This can also generate a value-added service considering the input expenses.
Based on the findings of the report, certain recommendations are provided considering that the company must bring certain changes regarding diverting its focus on less than two offerings for the reason that a lot of products might generate a confusion concerning the real product offering. Moreover, recommendations are also offered regarding bringing in any change concerned with low priced strategy. The company must prefer increasing the price a bit as high quality does not match the price.
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