Appraise the Lean Canvas as a model for start-up businesses. Provide Assignment

Appraise the Lean Canvas as a model for start-up businesses. Provide judgments and interpretations for each element of the model - Assignment Example Here the idea is not to make a perfect business plan, because a perfect plan is a myth. Most of the companies’ make an initial business plan which changes as one grows. Perfection is not the goal. The idea is to prepare a business plan and start a business with the available resources at hand. In this study we will take a start-up of a manufacturing company like a car manufacturing company named Drizzler which will cater to Indian market. Drizzler will import most of its part from outside India and assemble in India. Discussion Customer Segment Possible Customer List of this start-up is anyone who wants to buy a car to use it. But being a start-up business will cater to middle income level families. In India the middle Income population is rising and their income level is also rising (Osterwalder and Pigneur, 2013, p. 123). India being a developing country, its GDP is growing at a healthy rate as compared to the western developed economies. Hence the needs of the middle income families are also rising day by day. They demand products which were previously used by Upper level people. Drizzler will cater to such customers (Ramaswamy and Namakumari, 2009, p. 234). Value Proposition For a middle income family those who want to buy a car, they are driven mainly by desire to own a car. Drizzler will create a value for the segment by manufacturing car which will not be priced too high and having features which will meet the expectation of regular people. Hence if it can satisfy the need for safety, and the esteem needs, then it will cater to the need of average household (Nielsen and Lund, 2012, p. 52). The most important customer segment is the middle income households who wants a bike but can afford a car. It should cater to such families who want to drive car and have a feeling to owning a car and make it their first family car. This car will give them durability and safety which they seek (Kaplan, 2012, p. 42). It is another factor considered important to m iddle income families. Hence they should give a mileage of about 20-25 km/litre. The seating capacity should be for 5 persons with maximum speed of 200 km/hour. Channels The car will be sold through independent sales channel all over India. Such sales channel includes retail dealers present throughout India. Nowadays in India there has been a trend of increasing sales of car in the Tier 2 and Tier 3 cities. It indicates that they must have their presence of distribution channel in those cities. They will sell their products through retail dealers. They must use the advertisement which shows the value proposition it will deliver to the customers (Dent, 2011, p. 141). Through mediums like TV, newspaper, auto magazines and shows on car, it will help them drive their value proposition to the clients. They must also maintain a website which will clearly state the features and the local dealer present. Customer relationships The key to any business is the ability to know what the customer s want. Drizzler will maintain a strong and fast customer relationship programs. Drizzler will run a customer loyalty program. Drizzler will use a magnetic card for anyone who buys the product. When a customer buys a car, he gets points. When the magnetic card is swiped, then the representatives of

The Internal Analysis for Costco in US Research Paper

The Internal Analysis for Costco in US - Research Paper Example The corporation currently operates approximately 387 warehousing-shopping clubs in United States. This has played a great role in creating trust among the target market an aspect that has increased the corporations resources (Costco wholesale, 2010). Another resource that Costco is proud of is the brand name. The corporation has been able to invest heavily in its brand name. This has been through intense advertisement in order to familiarize the name with the market. As a result, the brand name acts an important asset that the company owns. In addition, the brand name plays a great role in the market as it is one of the resources that are used in the market as a competitive tool. The reputation that the company holds in the market plays a great role in ensuring that the corporation remain one of the most competitive wholesalers in the market (Hoovers, 2012). The Corporation has put great emphasis on improving its technology which is a great resource. With the current changes in techn ological level, companies must work hard in an attempt to remain competitive. As a result, the corporation keeps on reviewing its technology in order to install the current technology. This has enabled the corporation to keep on satisfying the interests of consumers and aspect that has created customer loyalty towards the products (Hoovers, 2012). Costco wholesale has high qualified personnel. These are able to read the market behavior and identify any changes that might occur in the market. The personnel working as a team are also a great resource that the company has as it is able to solve any challenge that may lead to collapse of the wholesale (Hoovers, 2012). Capabilities Costco Corporation has the ability to sell its products at a low price. Since the corporation has spread its risks through diversification of its operations, the corporation is able to reduce its profit margins in some of its branches and still able to sustain its operations. This has also been supported by us e of machinery in its operations an aspect that has reduced the overall cost of production therefore, lowering the breakeven price. This provides an opportunity for the company to attract more customers and maintain the existing customers. This has made Costco competitors e.g. AutoZone, Inc, Big Lots, Inc etc unable to keep up with Costco’s level of competition. In addition, the corporation keeps low prices through purchasing high quantities and not making up any product more than 15%, less than the typical 25% at the supermarket and 50% at the departmental store. Costco is able to make up for the low margins through charging fifty five dollars annual membership fee. Approximately 90% of its members renew their membership each year thereby making the Corporation to be profitable (Logan, 2012). The corporation has the ability to produce brand that can compete in national levels. Due to its skills, technology and experienced personnel, Costco has the ability to come up with new brand, which will be supported by the financial ability of the corporation to penetrate, position and segment the market. This has been indicated by the introduction of Kirkland Signature which was mainly aimed at competing with other national brands through lowering the prices of the commodity while maintaining quality. Core competences The corporation h