Case of Sponsor Based Business Models †MyAssignmenthelp.com

Question: Discuss about the Case of Sponsor Based Business Models. Answer: Introduction PG is one of the most reputed and greatest multi consumers companies who deliver multi retail products and services to the customers across the globe. They have their head office located in US. The company is established in the year 1837. It has the revenue of around 6529 crores in 2016. PG provides branded products having superior quality and provide impressive value to the different consumers in this world through their wide and diverse range of products (Hong Fauvel, 2013). The company has more than 300 branded products and having the operations in more than 80 countries now. They have the employee size of around 135,000. It has began as the family operated shop and candle company and now it delivers more than 300 branded products in around 180 countries. The study is mainly focused on the review of literature on the business model and disruption. It should also be describing the existing threats as well the opportunities to be provided to the existing business model of PG due to the development and implementation of smart connected products. It is also reflecting on the analysis of the business model in the context of business model as value proposition and the business model as the set of capabilities and resources. It should briefly conclude by analyzing the importance and the future of business model implementation in business for PG. In accordance with DaSilva Trkman, (2014) the business model is defined as the strategic tool which is useful in visualizing the entire operations of any business organization. The internal as well the external capabilities could be recognized and assessed with the effective use of the business model for any business organizations. This is useful in depicting and assessing the specific revenue and profitability of any business. The business model could be able to depict and analyze the competitive positioning of any business organization. The business model is considered as the heart of any business as this model leads how business will be operating. According to DaSilva Trkman, (2014) in the rapid development of technology and rise in competition the business organizations are not going to trust their operating model for a very long period of time. They tend to make their business model innovative which should be adding value to their business and for the stakeholders involved wit h the business. The business model has the link with disruption. In the modern day business organizations businesses are competing with each other and try to develop new concepts and strategies by which they can be able to compete against each other for increasing profits day by day (DaSilva Trkman, 2014). Due to the high profitability and increasing expectations from the business, the business model is not fixed and it is trying to changing at a brisk rate. So sometimes there is disruption in the business model to be taken place if the model is not so appropriate and stable for the running of that specific business. Christensen, Raynor McDonald, (2015) states that the business models are not so much stable in nature which were created in the past and this due to the fluctuations in the internal as well in the external environment. The disruption in the business model is due to some of the internal as well the external factors which involves the organizational structure and culture. It should also involve external operations, the macro environmental influences on the business model. The smart connected products are basically the products which are interfaced with the software so that it can influence the operations of any business through stability and flexibility. The smart connected products provide flexibility to the existing business models. The smart connected products completely change the structure of the business model which is derived in the past (Schneider Spieth, 2013). With the smart connected products to be implemented, the business sustainability of PG enhances (Amit Zott, 2012). The smart connected products helps in the development of the lean, efficient and cost effective ecosystem which runs from the supply chain through to the end users (Chakravarti Jain, 2017). This helps in receiving the real time data and deep information regarding how the product should be used. For example, PG has developed smart connected product which is a smart toothbrush. The name is Oral B genius have two detection sensors which is present in the brush with a mobil e app. This will be helping the customers for the identification of the spots they are missing with the oral hygiene approaches. The smart connected products helps in monitoring the products and continuously update them. For example, Diebold can update new features to the smart connected ATMs remotely. The smart connected products in PG helps in fixing the problems of their products they deliver quickly and recall the processes by which the products are manufactured by PG. For example, Samsung Galaxy Note recalling took place costing the company around $5.3. The smart connected products also provide the opportunities to offer new functionalities in the products developed by PG. It provides more reliability and higher utilization of the products. The threats caused due to the introduction of the smart connected products in the existing business model of PG is that the products are redeveloping the model which might not be suitable for all the stakeholders involved with PG (Schaltegger, Ldeke-Freund Hansen, 2012). It should also be exploring the strategic and operational implications due to changes in the strategy to be taken place by PG in its existing business model (Massa Tucci, 2013). There is also the threat that the smart connected products do not have the ability to send the information to the internet without the internet is connected. There is also the threat of no platform getting connected with the smart connected devices and this slows down the growth of the products in the market (Higginbotham, 2015). For example, PG has launched Oral B toothbrush connected with Amazon dash devices where the customers should be pressing button to get the delivery of Oil of Olay facial cleansers and Bounty brand paper towels. Markides, (2013) stated that the business model canvas is important in representing the business model of PG in a proper manner. The business model canvas is termed as the tool for the analysis of the business model and what should be the various elements to be represented in the development of the business model (Osterwalder Pigneur, 2010). It is the visual way of laying out the strategies and the operations in a canvas which is useful for the strategic decision makers to make effective decisions based on the visual way out of the model. This illustrates the initial findings about the business model. The existing business model of PG develops value proposition for the company as well for the customers. The existing business model for PG generates high revenues and profitability with their effective and huge resources they have it adds value for the shareholders of the company (Hong Fauvel, 2013). The innovation is to be done with the products as they have huge spending on RD activities better than the competitors. The greatest competitor for PG is Walmart. The high spending in RD will help in the launching of the improved and innovative products and this helps in enhancing their market share adds value for the shareholders of the company (Joyce Paquin, 2016). The existing business model also adds value for their consumers across the world. They have wide product portfolio as they have five different portfolios which adds value for them. The superior technology and the development of innovative and high quality products add value to them (Bucherer, Eisert Gassmann, 2012). PG also sell their products directly to the customers through their official website and this develops reliability and convenience for the consumers to get the right type of products from their homes respectively. The delivery of the leading brands and high customer satisfaction level also add value to their existing business model. They have huge number of stores which makes the consumers from all around the globe to get the products at the right time and meeting the needs and demands of them (Schaltegger, Ldeke-Freund Hansen, 2012). They have the capabilities of becoming one of the largest FMCG companies in this world competing rigorously to the world largest multinational consumer goods company Walmart. They have the skilled and professional expertise who can be able to provide high quality products and innovative services to the consumers coming across the globe (Schneider Spieth, 2013). They have huge number of stores located in different regions across the world has the capability of delivering the products according to the needs and demands of the consumers (Amit Zott, 2012). They also have the capability of operating in more than 180 countries and dealing with more than 300 brands across the world. They also have the innovation at its best for product development and product designing process by which they can improve and adds new features to their products they deliver (Casadesus?Masanell Zhu, 2013). PG owns and operates 20 manufacturing sites which are located in 20 states in US. It also owns 100 manufacturing sites in more than 40 countries (DaSilva Trkman, 2014). They have the leading brand portfolio of 65 developing 95 percent of the profit for the company. Conclusion From the study it is significant that the there is the development of the business model canvas in order to explain the existing business model of PG effectively and efficiently. This is significant in adding value proposition to the business due to the smart connected products implemented in the existing business model. It is evident that PG has revolutionized the business model. It concludes that the future of the business for PG is very good as innovation could be incorporated and there is greater sustainability of the business for PG to be taken place. References Amit, R., Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), 41. Bucherer, E., Eisert, U., Gassmann, O. (2012). Towards systematic business model innovation: lessons from product innovation management. Creativity and Innovation Management, 21(2), 183-198. Casadesus?Masanell, R., Zhu, F. (2013). Business model innovation and competitive imitation: The case of sponsor?based business models. Strategic management journal, 34(4), 464-482. Christensen, C. M., Raynor, M. E., McDonald, R. (2015). What is disruptive innovation. Harvard Business Review, 93(12), 44-53. DaSilva, C. M., Trkman, P. (2014). Business model: What it is and what it is not. Long range planning, 47(6), 379-389. Hong, Y. C., Fauvel, C. (2013). Criticisms, variations and experiences with business model canvas. Joyce, A., Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486. Markides, C. C. (2013). Business model innovation: What can the ambidexterity literature teach us?. The Academy of Management Perspectives, 27(4), 313-323. Massa, L., Tucci, C. L. (2013). Business model innovation. The Oxford Handbook of Innovation Management, Oxford University Press, Oxford, 420-441. Osterwalder, A., Pigneur, Y. (2010). Business modell generation. Hoboken, NJ: Willey. Schaltegger, S., Ldeke-Freund, F., Hansen, E. G. (2012). Business cases for sustainability: the role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development, 6(2), 95-119. Schneider, S., Spieth, P. (2013). Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17(01), 1340001. Chakravarti, S, Jain, A. (2017). Why Your Products Must be Smart and Connected. The Business Opportunities Higginbotham, S. (2015). Heres How Procter Gamble Is Thinking About the Smart Home. Fortune