Business Model Canvas Jollibee – Ten years ago, I presented a seminar on business model innovation where I presented the “11 building blocks of a business model”. The Mansmith Business Model Map includes two more elements – Value Chain and Reconfiguration – compared to popular Business Model Canvas models.
The value chain, as defined by Michael Porter from Harvard, is a set of activities that a company operating in a specific industry performs in order to deliver a valuable product to the market. Without an understanding of the value chain, companies will not know how the flow of an idea combined with raw materials adds value and translates into a product, benefiting both customers and the company. This is the first step in defining the business operating model, as well as the step preceding the identification of key processes and key resources on the business model map.
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Reconfiguration is about innovation. It’s about what to start and what to stop doing in your industry to be different in a different way. Without reconfiguration or innovation, a company may still have a business model but may not be as innovative compared to its competitors.
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I believe that in any business project it is necessary to define these two elements as well as other elements below:
Steel Asia is the flagship steel company in the Philippines. It produces almost every other steel bar in all construction projects and supplies approximately 80% of the rebar (or rebar) for local infrastructure projects. Rebar is the lowest level of steel production and is typically a commodity in the various major regions of the Philippines.
Steel Asia has innovated its value chain by building smaller rebar mills in various regions of the Philippines. Steelworks reduced transport costs, and the savings were passed on to customers.
Steel Asia also allows customers to pick up rebar from smelters, further reducing the cost of transporting rebar from smelters to construction sites.
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Regional rebar mills and investments in technology have enabled Steel Asia to provide customers with one of the most competitive offerings and maintain its position among the best steel companies in the world.
Bounty Fresh is one of the two domestic chicken producers in the Philippines. Its profit increased by 63% in the first half of 2020, when they launched over 100 roll shops, among others, where they sold both boiled and boiled chicken during the COVID-19 pandemic.
Before the pandemic, Bounty Fresh launched a network of rotisserie chicken stalls (Chooks to Go), followed by charcoal grilled chicken stalls (Uling Roaster) to secure its future against the fall in import tariffs due to globalization. More than 1,700 of their stores surpassed the combined number of Andok’s, Baliwag, Sr Pedro and others competitor stores, making them the dominant market leader in the retail cooked chicken industry without the need to offer sauce in Chooks-to-Go products (a staple in other outlets) and offer consumers blocked flavours.
How the value chain project helped companies identify opportunities that could create better value for customers (smaller mills in key cities outside of the main site for Steel Asia, chain of chicken shops for Bounty Fresh), and counter threats from competition or substitutes. How reconfiguration or innovation makes it harder for the competition to catch up and creates more value not only for the company’s consumers, but also for the company through a competitive advantage.
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If you want to learn more about each building block, as well as case studies illustrating their use, check out the free YouTube video “8 things to evaluate in your business model during COVID-19” with a short explanation. There is also a video course “Changing the Business Model” with 45 cases from 17 countries that can inspire you to better understand your business model.
Access 55 business model training videos in 4K for only P1 488 (limited time offer). Visit www.continuum-edu.com. Finally, we will launch Business Model Week – free admission to the 1st Business Model Conference on July 19-23. Follow our Facebook profile to find out more.
The complex world during COVID-19 requires a series of simple steps: survival, recovery, growth and development. Sometimes that survival is best achieved by cooperating and collaborating with competitors. Credit to Jollibee and McDonald’s for their joint “Ingat, Angat Tayong Lahat” campaign. The two fast food restaurant (QSR) giants share similar value chains and COVID-19 has affected them in the same […]
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Bestselling author Josiah Go is President and Chief Innovation Strategist of Mansmith and Fielders, Inc., President of Waters Philippines, and Independent Director of Unionbank of the Philippines.
Josiah Go introduces the initiators and shakers of the business world and writes about marketing, strategy, innovation, execution and entrepreneurship, describing the type of relationships a company forges with specific customer segments. Customer relationships are driven by customer acquisition, customer retention and increasing sales – in other words, you need to acquire, maintain and develop customer relationships.
Steve Blank’s customer relationship philosophy centers around this funnel, which represents the idea of acquiring or acquiring new customers, retaining them, and increasing their value to the company.
(as explained by Steve Blank) – The viral loop is created by positive customer experiences with your value proposition. For example: if a customer is happy with your product, they may be excited to share the product and services your company has to offer with others (i.e. friends and family). This viral effect will give your business quick and cost-effective awareness (or brand recognition). “Well, it’s been going on for hundreds of years, but now sometimes we could engineer this viral loop by saying – is there anything we can do, any incentives, any ways to get discounts. Is there a way to turn our customers into sellers to speed up this purchase and help us get new customers? — Steve Blank
Mcdonald’s Swot Analysis
Steve Blank’s ideology behind the viral loop is simple; how can we use existing customers (satisfied with our product or service) to our advantage? How can we use these customers to promote our products and services?
The DoughJoe – Here we saw an amazing opportunity to make a huge leap over our competitors. I explained it to the group this way: H-E-B and Buc-ee’s have had tremendous success focusing on this BMC segment. They took the business models that were always taken for granted – the grocery store and the gas station, respectively – and turned them into an experience. Who has ever been to a spectacular donut shop? Not until DoughJoe opens the door.
Pancake Expectations – We interviewed 30 customers to find out what was the best way to grab their attention and “win” them as a customer, as well as what programs and incentives would help keep our customers back. Based on our data, we concluded that loyalty cards and discounts would be the best way to keep our customers coming back, with social media and word of mouth being the best channels to acquire our customers. Actual evapotranspiration and tree yield in mature micro-irrigated pistachio orchards Grown in saline soils -sodium in the San Joaquin Valley in California
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Case Study Mang Inasal’s Milk Tea
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