Blog Post 9

Business Model


  1. Value Proposition:

We are trying to combat the extreme levels of pollution by minimizing waste and promoting recycling. This would be considered a need for the citizens. We are trying to improve their quality of life.


  1. Customer Segments:

Start with students and school teachers. They will use the app because it is entertaining, educational, and has actual rewards.


  1. Channels:
    1. App MarketPlace
    2. Social Media Marketing
    3. Internet 
    4. Education market


  1. Customer Relationships: We start by connecting with teachers who will integrate the app into the class in some form. They are the direct connection to our target customers: children. We get the customers from the teacher-student connection and keep customers through a semester long curriculum integration. We grow customers by first expanding to more schools, and then hopefully to adults. The app will promote user communities as well.


    1. Revenue Streams:
      1. Character development (micro-transactions) 


  • Advertisements 


    1. Sponsorship
    2. Potential usage fees


  1. Key Resources: 
    1. Physical: capital (money)
    2. Intellectual: licensing for the app, technology to create apps
    3. Human: people who know how to code our envisioned app, teachers to accept the app in Almaty, individuals on the main team to implement the application effectively


  1. Key Partners and Suppliers:
    1. Team at KazNU 
    2. School teachers
    3. Kazakh Government/Municipalities (potentially) 
    4. App Development Team (software engineers, graphic designers, advertising, etc.)
    5. Local stores/companies that would provide vouchers, incentives, etc.

Strategic alliances between non-competitors


  1. Activities:
    1. We are producing a mobile application so we are not required to have a production line or supply chain. Our solution would be considered problem solving. We are aiming to solve the issue of recycling through the development of an app.
    2. Maintaining the application
    3. Possibly gathering data


  1. Costs:
    1. Development costs to maintain and update app (variable cost)
    2. Costs to conduct market research (fixed cost)
    3. Costs to have developers code the app (fixed cost)
    4. Costs of advertising (fixed cost)–will help our economies of scope

Lessons learned from TED talk:

  1. Developing a method and process that is the same and can be used around the world (make the solution simple and reproducible). His inspiration from McDonald’s is interesting because you see how they’ve managed to sell the exact same thing everywhere.
  2. Need to evaluate a business to make sure you are accomplishing the goal (reaching the people, and amount desired) and various points in the business growth process.
  3. Need to develop ways to optimize processes (speed, low cost, and high quality).
  4. Still treating some people for free, those who cannot pay, because people are the most important part. Those who could pay were only paying market cost. Making eye care affordable was their goal. In the second year because there were many more operations, they began to make a profit, and were able to bring down the cost even more.
  5. Productivity, focus on quality, patient centered care, efficiency, cost control, and achieving scale can solve the difficult conditions of; large population, cuts across all economic strata, equity issues, and cost-effective interventions.
  6. Creating compassion and having people own the solution is important.
  7. Sometimes we can overlook how much people around the world are in need of basic amenities, and these are the shortages in the world that should be approached.
  8. Investing in the younger generations as they will be the carriers of the experience and knowledge. In this case, they were the backbone of the logistics involved.
  9. Impact on competitors can be very significant and should be accounted for. In this case, the venture caused certain hospitals to double their output.
  10. Growth in spirit and empathy heals yourself of exploitation and bias and allows the implementation of successful need-oriented solutions.

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