Business Model
Making Money
I will make money by partnering with some of the teams present in the sports industry, the basis of our partnership will be that I will be able to sponsor them, and in return, they will give us the right to sell their merchandise on our platforms. We will be the ones who will take the tender to print their jersey, and in return, we will sell them to their fans when games are held and also in respective retail outlets that sell American football merchandise. Another way of making money will be to allow different companies to advertise their products using our platform or even application through ads or other digital marketing tools available at our disposal (Stewart, 2019). This means that when fans take their time to use our app, they will have a chance of accessing many product advertisements that would have been incorporated into that platform. In return, the various businesses will pay us depending on the number of ads clicked and watched by different customers. Also, our customers’ subscription to watch live games on our platform will be a way of making money, they will be given the option to subscribe monthly or yearly based on how deep their pockets go in terms of spending.
Losing money
As a business, I can lose money from the solution we will be bringing to the industry, i.e., some of the sports lovers would prefer watching games live from the stadium rather than using the platforms we have developed from watching them from. Instead of subscribing to our channel or our application, they would opt to pay high ticket prices to be part of the experience where he will be watching the game live from the stadium. Our solution to setting an HD screen outside the stadium can make us lose the value of our money when sports fans get angry with the kind of results they get and decides to vandalize the equipment to express his anger. This will be a great loss to us since we will be forced to find a way of doing corrective maintenance to the equipment.
Product pricing
When it comes to pricing the services or product that we will be offering, we will measure the value proposition our product is giving to the market then determine how much the customers are willing to pay, after which we will be able to develop favorable pricing for our products (Kienzler, 2018). This process will be done with neither of the parties filling the pinch of the price set out.
Comparable priced solution and price ballpark
The comparable solution that the market is offering and similar to ours is the application that was fixated by TBSB; the app was developed to make sure interpersonal relationships were built between the different stakeholders in the industry. The other surrogate that can be used in ballparking the price is the level of demand to which a particular product is being given in terms of solutions provided in the market; this means that when a particular solution has a high demand among the sports lover, then the price of accessing such solution will be affected by such demand by increase the price of the specific solution. Still, if the demand for a particular solution is low, then the price charged will not be high. Still, rather it would be favorable so that people may be encouraged to use such a solution and retain the number of people currently using such solutions (Hague, 2018).
Dependencies in the business model
In this business model, our major dependencies are expertise and rapid adoption. In the case of expertise, they will be the people who will make sure that the industry’s problems have appropriate solutions; this they will do by coming up with innovative ideas that will attract the interest of the industry at large. They will also be at the forefront of developing the different applications that had been identified to be one of the solutions; the expertise will find a way to draw a plan that will make the business get a piece of the market share by coming up with different kind of strategies that would favor the existence of the business. They will also be tasked with developing ways to make sure that the customers are charged prices favorable to them by conducting a SWOT analysis of the business as a whole.
The other dependency is rapid adoption; this is where the business survival will remain dependent on how rapidly the people found within this industry adopt the solution that the business has developed. If the market takes a lot of time to fully utilize the solutions which the business had come up with, then the business might run at a very great loss and might eventually not be able to sustain itself because the amount of revenue they will be generating will be minimal. By developing a proper strategy to penetrate the market, the business can determine whether or not the customers will rapidly adopt o the use their product. Rapid adoption will also determine the level of influence the existing businesses have on the market.
Key metrics of business success
To determine the level of success of our business we are going to measure the level of customer base if we have a growing number of the customer base that just also some extent of customer loyalty where they even refer some of the friends to use the product of the company will clearly show that our business is very much successful. The number of sales and net profit we get as a business will also determine whether the business is successful. If the number of sales done at a particular period is high, this will show the business is growing in terms of customer awareness (Klubeck, 2017). As a result, in the increase in the number of sales, the business may make a lot of profit, and all these factors will determine how successful a business is at any given point in time. If our employees are satisfied, then that will determine how successful we will be; this is because if there is a positive environment that surrounds the employees within the organization, they will be highly motivated and work even harder to ensure that the company becomes a success in everything it’s doing.
Reaching the milestone
We will reach the milestone of being a successful business when we will effectively penetrate the market and develop a customer base that will be loyal to us and our products. When our customers fully know our brand, we will be able to increase the number of sales, customers’ loyalty, and profit.
Derivative services/product or revenue streams
The service that we would consider as part of our overall business is the use of virtual technology to scout player, this will help in nurturing talent at a young age, and as a company, we will sign deals with talented players so that when the players finally become professionals and they start playing for big teams. The teams will have no choice but to pay us a given amount of money due to the contract we had signed with the players when they were still amateur players; this will therefore be included in the company’s overall business.
References
Hague, D. (2018). Pricing in business (Vol. 23). Routledge.
Kienzler, M. (2018). Value-based pricing and cognitive biases: An overview for business markets. Industrial Marketing Management, 68, 86-94.
Klubeck, M. (2017). Success Metrics: A Multidimensional Framework for Measuring Organizational Success. Apress.
Stewart, D. W. (2019). Business Models: How Firms Make Money. In Financial Dimensions of Marketing Decisions (pp. 33-47). Palgrave Macmillan, Cham.