Business Model Canvas
The Business Model Canvas is a tool for strategic management for describing, designing, and analyzing business models. It is has a favorable influence on both new and current enterprises. Using the nine parts of the Business Approach Canvas model, the research tries to determine McKinnie real estate’s present business model. The paper will identify external and internal elements impacting McKinnie real estate’s business model. The business model will deliver better opportunities, like land, house, product design, and enhancement of estate development. Priorities are determined using a pairwise comparison strategy, and alternative approaches are determined using the model canvas method.
McKinnie Real estate Business Model
The property business in the United States is quickly expanding because the nation is among the most populated in the world. According to projections, it will exceed 900 million by 2024. America’s yearly population growth of around 1.49 percent, or a rise of 4 million every year, has created a fantastic opportunity for business people, notably in the real estate industry, as demand for housing in communities continues to rise. Real estate sales of tiny houses increased by -3.64 percent in 2021, up from -14.92 percent in the previous quarter, while real estate sales of medium homes increased by 13.46 percent, up from -11.14 percent in the last quarter.
McKinnie Business Approach
According to the real estate sheet, McKinnie had an increase in practically all areas of the growth ratio, resulting in a net income of $17,985 for the fiscal year that concluded in June 2022. The multitude of breakthrough initiatives during the year contributed to the growth. The rising revenue was attributable to the company’s concentration in 2021 on investing through expanding working capital. Additional investments and operating capital are highly acceptable for a firm in the real estate market in the early years. Investment and working cash are critical for growing businesses. Capital deployment by investors might be used to supplement the work model.
Customer Segment
The Business Model Canvas study was used to identify the nine aspects, which included direct conversations with crucial firm personnel, observations, Roundtable Group Discussions, and surveys. A customer segment is a collection of customers who have comparable but distinct demands from other customers. Several essential topics emerged from the interviews. Boost consumer segmentation of the low- and middle-income per unit price, optimize real estate development on private land using a comprehensive feasibility study, and design items that the marketplace can consume at competitive and reasonable rates. This stage also aims to perform a thorough business analysis of the company’s abilities and to assure project viability.
Value Proportions
A Value Proposition is a service or product that addresses an issue for a consumer. It may be stated in terms of the customer’s perception of your service or product. Value propositions are concerned with achieving product-market fit. It is critical to recognize that a Value Proposition is about assisting the firm in getting things done. McKinnie real estate outlined several value propositions that include conducting business analysis on land near remarkable academic institutions with a large student population and developing a range of services that would not be replicated with ease by competitors due to cost. The corporation will provide promotions in specific units via a minimal down payment mechanism to cater to younger clients.
Distribution Channels
A channel is the collection of companies, people, and operations required to deliver the Value Proposition to the client. It can also be a series of enterprises or middlemen. Alternatively, the corporation and a particular set of clients may have a direct connection. McKinnie intends to form a specialist team to better direct foreign and domestic investment and provide a profitable business component cooperation program on component purchasing with the staff of other SOEs. It will also consolidate an IT-based directory of consumers and potential customers for all sections to advertise and sell products massively. It will also assess marketing budgets and macro marketing tactics to better direct them.
Customer Relationship
The customer relationship strategy determines how the target audience interacts with the brand. Personal help is a classic strategy in which a consumer contacts the brand and engages with a personal assistant. It denotes a high level of personal attention and deep, meaningful relationships. McKinnie will implement a customer development and rewards program to preserve and improve customer connections. Other techniques include using and developing comprehensive and immediately relevant applications and constructing a dedicated aftersales support service for consumers’ comfort. The headquarters will directly supervise and manage a customer connection program utilizing advertising techniques created by employing a competent property marketing expert.
Revenue Streams
Customers reward the firm for the value propositions it provides them through Revenue Streams. Revenue Streams are critical for all organizations since they allow them to pay their suppliers and workers. McKinnie will develop specific programs and tactics for bulk selling and improve appropriate promotional strategies for hotels to boost occupancy and income. The revenue stream will investigate the impact of the bulk selling method on the financial statement. Dynamic pricing enables businesses to maximize income while minimizing the utilization of expensive financial assets. It is currently widely employed in advertising and the aviation business and has now moved to other industries.
Key Resources
The Business Model Canvas divides essential resources into several categories that include tangible, intangible, human, and financial vital resources. Human resources are the personnel who keep the organization running, whereas financial resources include bank loans, cash, and grants. McKinnie focuses on regular HR training for hard and soft competencies in line with job specifications, utilizing current human resources and recruiting well. Another aspect is benchmarking sophisticated and sustainable designers with outstanding interactions on organizational structures at headquarters and in projects, focusing on improving advancement in the self-owned land bank and establishing a complete review of the company’s financial performance so they can be controlled.
Key Partnership
Suppliers, noncompetitors, partnerships, and coopetition are the four groups in the Business Model Canvas. Key partners are entities such as suppliers who are critical to the smooth running of a firm. Noncompetitors are firms with which the company collaborates to utilize its resources; joint ventures are collaborators who assist the company in entering a new market. Cooperation with other State enterprises and university alumni affiliations with both the natural monopoly, optimizing business via collaboration and profit-sharing, the use of services of reliable and knowledgeable property consultants in corporate strategy, and extensively and rationally evaluating partners are all priorities at McKinnie.
Cost Structure
All of the Business Model Canvas components indicated above will not be deployed for free. McKinnie invests in production and related services. The organization assessed the costs, which aided in setting realistic sales targets. The business has considered digital venture monitoring and assessment of both marketing and operational aspects, aims to boost product sales with an appropriate marketing strategy, assess financial results on every project, and select a creditor bank with low interest and minimal collateral. The aim is to grow the liquid assets of the company to preserve the company’s solid financial ratios while managing increased charges for after-sales support.