Despite coming up with a number of interesting alternatives, we've chosen to stick with our original model for the following reasons:
Alternative 1: The main changes made in alternative 1 were to do with the distribution channels and customer segment (all other factors were adapted based on these two variables). Instead of really pushing the product online, in this alternative we chose to sell our products through various athletic retailers. The main downside with this particular approach would be the lower profit margins. However, the upside is we could expand our target market. This particular strategy could be implemented more in the future once NYX has been well established in the industry and has a greater following of amateur athletes. Anytime a new product is launched, it is the die-hard consumers that will be willing to test out and try your product. For this reason we feel it is in our best interest in the beginning stages to target high performance athletes and hence the reason for choosing our original business model canvas.
Alternative 2: The obese market is a rapidly growing market (no pun intended); however, this particular product primarily caters to driven high performance athletes that are looking for an edge. Fitting would also be a big issue and would require a great deal of customization resulting in higher production costs which would be difficult to make up for in the price.
Categories:
Business Model Canvas