EXCPR™: BUSINESS MODEL

BUSINESS MODEL

NINE ELEMENTS TO SATISFY VALUES TO CUSTOMERS

Many companies in the markets aim to reach the stage of total control and increase their acquisition of the target market - market share. To achieve this leading position, international companies better analyze and develop what is known as a business model. The business model is an important management tool in tracking the way the company works, in order to create the desired added value. By tracking nine key elements, entrepreneurs and business responsible can achieve that value in an integrated way, making the mark difference in competition. To understand this method well, it also plays its role in amplifying the company's profits, understanding the locations of shortcomings and leaks, so that the necessary actions and measures are taken. In this regard, EXCPR CO. - Consulting and Business Management based in Kuwait - has launched this model in the business, in its role towards the business community. The company summarized the most important model procedure, which in turn will shorten many years of work, and the loss of capital invested on companies, thus achieving more successes. The importance of the business model goes beyond SME, and is at the heart of the business of large companies for continuous development, which has become a necessity to stay in the markets. Moreover, this importance goes beyond that to reach the board members of companies, and the company's new executive management, in order to understand the way the company works and competes, proactively and professionally. The BM is therefore one of the main maps on which senior management relies to understand the company's business generalities. Here is a general aspect of the nine elements of the BM:

VALUE PROPOSITIONS

The first element in the BM investigates the reasons why the customer segment will eventually make the purchase of the company's products, unlike other competing companies. This section also supports the analysis of the additions that the product or service provided will achieve, in order to solve the problems experienced by customers or those other additions provided. Therefore, this part of the project addresses the themes of additions and values that the product will achieve for customers. Examples of these values are realized, new additions, lower prices, speed, high quality, high efficiency, business clearance, ease of use, near distance, new design, etc.

CUSTOMER SEGMENTS

The world's leading companies divide the overall market into small groups, sharing similar desires and needs. These companies select one of these segments, and design the product or service on the basis of them. This requires that the selected micro-market be commensurate with its continued growth, which will help the company compete. The importance of segmenting the market into small parts is that it will reduce the number of competing companies in the business sector, thereby achieving the concept of scarcity in the economy, thereby achieving more positive results for the company in the long run. On the other hand, the company is required to expand its regional orbit to operate in different countries and continents of the world, thereby pursuing a policy of specialization in the labor sector. In addition, the management of the company has to develop the reasons why the selection of that segment of the overall market is very important, and to explain it. In this part of the BM it should be emphasized that this does not mean that the products provided are not sold to the rest of the market, but are intended to target a specific segment of the market in order to maintain production sources and achieve more expected sales. Companies can simulate the behavior of these customers, and respond quickly and continuously.

CHANNELS
The third element of the BM is based on the channels that will be relied upon to communicate with customers, in order to achieve the value promised by the product. By selecting the best channels of communication with the target segment of customers, the company will be able to educate customers about the product provided, give customers the opportunity to experience and test the product before the process of continuous accreditation and purchase, complete the methods and process of purchase, deliver the product to customers, as well as support customers after the purchase. Optimal communication channels depend on the way customers and customers want to communicate with them, which will play a major role in increasing the company's revenue and reducing costs. The company can also communicate directly with the target customer segment, or deal with a third party to achieve this, and the two previous methods can be combined – which is the best. When selecting channels of communication with customers, high-impact, cost-effective channels are required, as well as tracking the modus operandi of competitors.

CUSTOMER RELATIONSHIPS

The cost of maintaining customers is much lower than searching and getting more. The leading companies have understood this equation and are developing their customer service, in order to stay competitive in the long run. Therefore, the fourth element of the BM is the topic of customer interest, which includes the type of relationship that customers expect from the company after the purchase, in order to maintain it to make profits. The first stages of the relationship begin with customers while they are in the company's stores, and provide the necessary support when choosing the goods. It may go beyond after-sales and personal communication with them about the product and service provided. Companies in the United States are characterized by this type of service, in which most hospitals and medical clinics are performed the day after the patient's visit. Some other business sectors rely heavily on customer communication services for their permanent customers or B2B, which will limit the success of the company's business when maintained. Today, as we experience a period of spread and spread of the CORONA virus epidemic, companies may be able to reach out to the public market and society, with the aim of achieving the health and safety values they are looking for. Major international companies are seeking to satisfy their customers and record their feedback and comments about the products offered, in order to encourage the rest of the market to buy the product, and social media platforms are perhaps one of those methods used. The principle of customer relationship is based on the formation of personal relationships with customers, continuous communication with them, as well as gaining their trust.

REVENUE STREAMS

The company's revenue sits as the main driver of cash flows and business continuity. The company and its executive management should determine the sale prices of the products and services provided, so that they are accessible to customers' purchasing power. Companies rely on setting the selling prices of the product, by assessing the value added that the product will bring to customers, so if the value the product will achieve is much greater than the sale price of the product, customers will gladly purchase the product. If the price of the product is greater than the value that the product will bring to customers, the company will be forced to sell the product to customers, which in turn will suffer – which requires it to either lower the price of the product or raise the moral value achieved for it. In this cash flow process, companies also rely on two main methods, the first being through the one-time sale of the product, which is usually relatively expensive. The second method is for the company to rely on the continued customer's demand for the service provided, in this case the cost of the product is low, to encourage customers to purchase. There are also many ways in which companies collect revenues according to the concept of economic scarcity in different business sectors, including through the sale of assets directly, the demand for usage fees, subscription to the service provided, collection of rents for benefit assets for a specified period, broker and successful sale and purchase, advertising and advertising products and services.

KEY RESOURCES

Part six of the BM is concerned with providing all the resources and assets needed to operate the business according to the needs adopted in the previous parts of this model. By selecting the appropriate sources of work that may be in the form of financing sources, buildings, machinery and equipment, raw materials, knowledge, in addition to human resources, the company will be able to form and deliver value added to the target customers, reach the target market, manage good relations with customers, and generate revenue.

KEY ACTIVITIES

This aspect of the BM discusses the most important tasks and businesses that the company's management has to work on a daily basis, to achieve integration in the parts of this model, in order to achieve the desired added value for customers.

KEY PARTNERSHIPS

The partners are intended for all entities and individuals that deal and cooperate with the company in order to achieve the desired added value of the product or service provided at the end of the day. The ongoing market competition process is based on the realization of the principle of partnership between different institutions and even with competitors in achieving added value. Therefore, it is not possible for the company to take over all the resources or business it needs, but it requires fruitful cooperation in order to achieve the mutual benefits of all parties. There are many types of partnerships that companies rely on, for example, to reduce operating expenses by obtaining optimal solutions, or reducing risk in collaboration with competing companies.

COST STRUCTURE

The ninth and final element of the BM deals with the most important expenses and payments required to carry out the company's work towards achieving the desired added value. Because of this harmony between the parts of the business model, it requires a company to have a good balance of financial resources to guide it towards the success of the business. Once the required production sources have been identified, in addition to the most important works, the company's executive management can calculate the financial budget needed to operate the business to the fullest.

Finally, it is noted through the study and analysis of the nine elements in the BM, as an integrated and largely interrelated process, through which some of these axes address the shortcomings and problems in the company's business. Thus, the BM is an ongoing dynamic process aimed at selecting and taking the best actions and ways to achieve the benefit for which the company has existed. In addition, in order to achieve the highest value (emotion) and efficiency (logic) in the business, the management of the company must compare the modus operandi it is currently pursuing, in relation to the standard situation adopted, in order to narrow the size of the gap and take corrective action on its impact. On the other hand, the current CORONA virus crisis may imposed on companies and business owners to adjust the BM, especially as the world's commercial power is expected to be redistributed. Companies should therefore re-examine their projects to suit the pace of the next phase, and not to exit the markets.