Social Value Creation In Business Model - PurePonics Essay.

Business model canvas of PurePonics

Discuss about the Social Value Creation in Business Model.

One of the major factors that is relevant in the gaining of the competitive advantage among the various contemporary organization is the factor that pertains to sustainability. The sustainability factor needs to be concentrated on by the start-ups in the market since they aim to introduce the various sustainable products to the market in order to gain a differentiated effect consumer base within the country. This might also help them to face an increase in the competitiveness in the given market. There has been an observable growth in the number of start-ups in the recent times. The agriculture and the farming industry has been one of the most affected sectors during the recent times due to the sudden upheaval in the number of the start-ups in the various fields. The following report deals with the business canvas model of the PurePonics and proceeds further to provide an explanation for the relationship that exists among the various factors that are involved in the concerned business model. The report proceeds further to discuss the critical success factors and the risks that might be faced by the company in the future days to come. The report nears its conclusion with the recommendations that might be helpful for the company in the future days to come.

The company in discussion, PurePonics, has been one of the leading start-ups in the Australian market. The company has been known in the given market for being one of the leading companies in the Australian agriculture and farming industry. The company abides by the aquaponics approach to the farming and therefore leads to having a sustainable approach to the production management of both the vegetables and the fish (Pureponics.com.au., 2018).  The company also offers the production of the agricultural products without the use of the artificial or the other chemical substances. This helps them to offer the customers with the natural and the fresh vegetables to the concerned consumers, thereby bringing about a huge change in the existent trends of agriculture and farming. This might also help them in creation of a disruption in the concerned food market in the country. The company has been operating in the Australian market in the present times and had been particularly supplying their products to the Australian clients in smaller quantities.

The nine blocks that are depicted in the above business model canvas are very intimately related to each other. The revenue stream of the company is majorly related to the main partners of the company in discussion, PurePonics. The above-mentioned business canvas reveals that the major revenue of the company is dependent on the key partners that are related to the company in discussion. The key partners that are associated with the company are the various retail stores that are present within the country that are responsible for the sale of the products that are marketed by the concerned company (Dudin et al, 2015). It might also be mentioned that the retail stores that are active e in the market have been helping the concerned company to earn the major portion of the revenue.

Relationship among the factors

The value proposition of the concerned company is also related to the various major activities that the company in discussion is involved with. The business canvas model does reveal the fact that the main activities to which the concerned company is majorly attached. These activities might include the matters that include the research and the developmental activities that are involved in the production of the organic vegetables and the other seafood materials that the company has been extending to the clientele of the organisation (Abraham, 2013). This might help in the enhancement of the value proposition of the company in the market through the offers that are related to the wide variety of the vegetables and the other products that are offered to the concerned clientele of the company in discussion (Sinkovics, Sinkovics & Yamin, 2014). The company in discussion, PurePonics, believes in the fact that the productivity of the farming processes that are followed by the company would face an increment with the increment in the updating frequency of the technology that is implemented in the farming processes that are propagated by the concerned company.

The critical success factors of the company might include the various factors that turn out to be helpful in the matters that lead to the success of the company in the various fields that are active within the market. The various factors that might lead to the success of the concerned company in discussion might refer to the expansion of the company in the other markets excepting the ones wherein the company has already been active. This might help the concerned company in targeting the various customers who have been residing in the other parts of the country (Love et al, 2015). The present activities of the company as well as the brand value and business opportunities of the company are limited to the area of Victoria, Australia. The expansion in the other markets would help the concerned company to lower the business risks that are generated in the matters that pertain to one single sector of the market wherein the company has been operating. The expansion would also help the company in earning more revenue due to the increase in the volume of the sales that they might experience after they enter in to the other markets that have been active globally as well as in the other parts of Australia (Love et al, 2015). The company might also be advised to take part in the online sale services. The participation in the online marketplace would help the company to access a greater client base thereby having an increment in the sales volume of the company (Goddek et al, 2015). The online marketplace would also help them to target the customers who are based in the areas that are not covered by the current retail units that help in the sale of the products that the company has been offering to the clients of the same (Palm et al, 2014).

Critical Success Factors

The risks that the company might face relates to the pricing that they might have set for the concerned products. This has led to the restrictions on the number of the clients who might have been buying the concerned products (Humprecht & Büchel, 2013). The premium pricing has also led to the restriction in the market exposure and the enhancement that the company might have faced had the prices of the concerned products not been so low (Kim, & Koo, 2016). The company might face a loss with the emergence of other similar organisations that provide the concerned clients with the organic foods but at cheaper rates.

The company is advised to bring about a change in the retail marketing process that is involved in the current business model of the company. The company might further be advised to expand into the e-commercial sectors for the growth in the sales of the various organic products that they might have been providing to their clients (Hsu, Chuang & Hsu, 2014).

On being given the role of a leader in the organisation, I would have introduced the policies that pertain to the training of the concerned farmers who have been attached to the company in the matters pertaining to aquaponics. This would help the company in the matters wherein the reliance was totally dependent on the various skilled employees of the organisation (Gregory, 2015).

Conclusion

In lieu of the above discussion, it might be said that the company has successfully created a distinctive place for itself in the concerned market by introducing a sustainable approach to the farming activities. The report has also attempted to look into the various risks that they might face in the future and has provided some recommendations on the ways to avoid the risks.

References

Abraham, S. (2013). Will business model innovation replace strategic analysis?. Strategy & Leadership, 41(2), 31-38.

Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.

Goddek, S., Delaide, B., Mankasingh, U., Ragnarsdottir, K. V., Jijakli, H., & Thorarinsdottir, R. (2015). Challenges of sustainable and commercial aquaponics. Sustainability, 7(4), 4199-4224.

Gregory, J. (2015). The Internet of Things: revolutionizing the retail industry. Accenture Strategy.

Hsu, M. H., Chuang, L. W., & Hsu, C. S. (2014). Understanding online shopping intention: the roles of four types of trust and their antecedents. Internet Research, 24(3), 332-352.

Humprecht, E., & Büchel, F. (2013). More of the same or marketplace of opinions? A cross-national comparison of diversity in online news reporting. The International Journal of Press/Politics, 18(4), 436-461.

Kim, G., & Koo, H. (2016). The causal relationship between risk and trust in the online marketplace: A bidirectional perspective. Computers in Human Behavior, 55, 1020-1029.

Love, D. C., Fry, J. P., Genello, L., Hill, E. S., Frederick, J. A., Li, X., & Semmens, K. (2014). An international survey of aquaponics practitioners. PloS one, 9(7), e102662.

Love, D. C., Fry, J. P., Li, X., Hill, E. S., Genello, L., Semmens, K., & Thompson, R. E. (2015). Commercial aquaponics production and profitability: Findings from an international survey. Aquaculture, 435, 67-74.

Palm, H. W., Seidemann, R., Wehofsky, S., & Knaus, U. (2014). Significant factors affecting the economic sustainability of closed aquaponic systems. Part I: system design, chemo-physical parameters and general aspects. AACL Bioflux, 7(1), 20-32.

Pureponics.com.au. (2018). Pure Ponics Commercial Aquaponics. Retrieved 3 May 2018, from https://www.pureponics.com.au/

Sinkovics, N., Sinkovics, R. R., & Yamin, M. (2014). The role of social value creation in business model formulation at the bottom of the pyramid–implications for MNEs?. International Business Review, 23(4), 692-707.