In any business venture, getting experts insights goes a long way in ensuring success and payback from the project. The new invention that monitors body activity is a game changer in the human health field. From the investor's description, it is evident that the device has unique capabilities that are unheard of before. The ability of the device to send the collected data to a server helps raise its value to interested parties. The long life of the device and its battery, the possible low market cost and its design versatility provide enough reason to increase the number of interested parties. The essay provides the ideal business model and suggests a promotional strategy that will help the inventor reap more from the invention.
Ideal Business Model for the Inventor
To reach out to more people, adoption of an e-commerce retailer will help the business get more customers and achieve more sales. E-Commerce entails selling the products via the web. A central distribution center will be created for the product where the goods will be dispatched to buyers spread across various parts of the nation.
Services That Could Be Based On the Technology
Besides health data collection, the device can also be used to identify the individual location. The data collected is sent to a router, and therefore, it is possible to identify the location of the individual. Commercialization of data is also possible where the company can use the information collected for commercial purposes. For instance, the data for people above the age of seventy can be collected and used to determine when common ailments strike.
Marketing Mix Recommendation
Following the 4Ps of marketing is the ideal strategy for the business. Since it's relatively new in the market, there is a need to ensure that customers can understand the features of the product and thus make the buying process much easier.
The commodity will arrive in Australia in batches of 10000 units at the cost of $25000 per batch. This means that the seller will have to add a markup to the unit cost to gain profits. Ideally, the price that will be arrived at will be optimal for clients since it will be quite low per unit. Therefore, marketing of the item will be easy.
The product will be marketed as a device that can easily monitor one's health and save the data collected over a database. The advantages of this will be shown to include easy identification of fluctuations and helping medical personnel in identifying body issues. Emphasis on the importance of the product should be given a high priority.
The product should be placed online. First, tech enthusiast is easily found online searching for new devices; secondly, it will be cheaper to move the product over online stores as compared to conventional stores due to associated cost.
Promotion should be done heavily on social media. It should entail well-crafted videos that catch the attention of the viewer. Furthermore, optimized web articles on technology will help bring more people to try out the product.
Intellectual Property Protection Plan
To help protect the inventor's design from being copied, the inventors should patent their product. This will keep others away from coping the product design and also give the inventor legal capacity to sue them in case the patent is violated. Furthermore, the inventor should give the product a unique name that will help easily identify it in the market. The identified name should be trademarked to help in the easy selling of the product. Patenting and trademarking are essential since they will help protect the product ingenuity from being stolen.
Sources of Strategic Competitive Advantage
The product is completely new in the market. There is no similar item in the market meaning less competition and an unlimited market. Even though the uptake may be slow as most people are less aware of the item and how it operates, the pool of innovators is still wide, and it will provide the required finances for operation.
The product is to be shipped in batches of 10000 units at the cost of $25000; this will reduce the cost of operating since it translates to around $2.5 per item. With the inclusion of the markup and other associated cost, the product price will relatively be low.
Use of the Internet
The internet will bring a low cost of operating and marketing of the product. Furthermore, it will help reach out to more customers through the use of online marketing channels. Currently, the internet has been used to leverage failing businesses. Making use of it in a startup will help due to the low cost of operating and the huge margins associated with it.
The innovator can partner with major health institutions, government statistics bureaus, and researchers to collect data. For instance, health outlets may be interested in monitoring the progress of their older population. To do this, they may opt to use to the device to monitor essential body functions and have all of them up to date. For researchers, they will have all easy access to primary data at a much lower cost as compared to other methods of data collection. Being the first gives it a strategic competitive advantage to expand its market.
Strategies for Surviving Medium and Long Term
Investing In Research and Development
R&D should be allocated a certain part of the revenue gained. Doing so will always ensure that there are enough funds to be innovative and help improve the product. Due to technology disruption, other films may easily come up with a device that performs similar functions to the one invented. To avoid this, a better functioning version of the primary products should be created.
Overreliance on one source of revenue will ultimately harm the innovator. To avoid this, the company should have other sources of revenue such as the sale of data collected. Sale of patents and trademark will help increase the market of the product. Furthermore, diversification into other nations besides Australia will go a long way in ensuring market survival.
The new product promises to be a game changer in the market and data collection techniques. However, the innovator has to take measures to ensure that they reap maximally from the product before other entities change the market dynamics. Understanding of basic laws that protect innovators, getting new ways to cheaply source the product and innovative market penetration strategies are essential for both short term and long term success of the product.
Akgun, A. E., Keskin, H., Ayar, H., & Etlioglu, T. (2017). Why Companies Go Positive Marketing Innovations: A New Theoretical Prototype For 4ps Of Innovation. Journal of Business Economics and Finance, 6(2), 70-77. 10.17261/Pressacademia.2017.496
Cockburn, I., & Long, G. (2015). The importance of patents to innovation: updated cross-industry comparisons with biopharmaceuticals. Expert Opinion On Therapeutic Patents, 25(7), 739-742. doi: 10.1517/13543776.2015.1040762
De Vries, G., Pennings, E., Block, J. H., & Fisch, C. (2017). Trademark or patent? The effects of market concentration, customer type and venture capital financing on start-ups' initial IP applications. Industry and Innovation, 24(4), 325-345. http://www.tandfonline.com/doi/abs/10.1080/13662716.2016.1216397
Frattini, F., Bianchi, M., De Massis, A., & Sikimic, U. (2014). The role of early adopters in the diffusion of new products: differences between the platform and nonplatform innovations. Journal of Product Innovation Management, 31(3), 466-488. https://doi.org/10.1111/jpim.12108
Gupta, S., Malhotra, N. K., Czinkota, M., & Foroudi, P. (2016). Marketing innovation: A consequence of competitiveness. Journal of Business Research, 69(12), 5671-5681 https://doi.org/10.1016/j.jbusres.2016.02.042
Holdford, D. A. (2018). The resource-based theory of competitive advantage-a framework for pharmacy practice innovation research. Pharmacy Practice, 16(3). doi: 10.18549/PharmPract.2018.03.1351
Kaleka, A., & Morgan, N. A. (2017). How marketing capabilities and current performance drive strategic intentions in international markets. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2017.02.001
Nuseir, M. T., & Madanat, H. (2015). 4Ps: A strategy to secure customers' loyalty via customer satisfaction. International Journal of Marketing Studies, 7(4), 78. 10.5539/ijms.v7n4p78
Cite this page
Essay Sample on Business Concept Appraisal. (2022, Dec 14). Retrieved from https://proessays.net/essays/essay-sample-on-business-concept-appraisal
If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:
- Course Work Example: Evidence-Based Research in Nursing
- Contract Cost Analysis and Business Competencies Paper Example
- Paper Example on Policies That Wal-Mart Should Implement to Improve Its Business Practice in Africa
- Producing substitutes to the main products to gain a larger market share
- Partnerships vs. Corporations Essay Example
- U.S. Core Values Essay
- Paper Example on Ethics and Compliance Program