Discussion of Business Model Canvas

Hypothesis

The use of various safety measures that promote vehicle automation reduces the number of human error-caused accidents, improving road safety and ensuring that both passengers and drivers are better protected. The creation, promotion, and use of cellphone hands-free technology, outside vehicle cameras, music volume control, and a censored brake system are all effective at reaching the stated goals.

Key Partners

The key partners for the business include the marketing agencies and advertising companies that will be tasked with the promotion of products, storage, and warehouse owners that the products will be stored at and social media managers that are responsible for cultivating a positive public image.

Key Activities

As per the identified key problem, the main activities for this project include the promotion and integration of additional assistive technology for moving vehicles. Research has shown that the use of external cameras on the body of the vehicle is extremely effective at enhancing safety and car coordination. Additionally, the use of hands-free technology for phone calls has not been associated with additional distractions and risks, making it the preferable alternative to traditional phone calls (Fitch et al., 2013).

Value Proposition

The current business proposition supposes that the efforts of enhancing vehicle safety while reducing the number of driver distractions can be used in combination to facilitate a more safe driving experience. With the average number of cases of traffic accidents, fatalities, and other car-related tragedies rising, it becomes increasingly important to take appropriate measures. Current statistics related that the number of car-related deaths in the US only surpasses 38.000, which is an absurdly high amount (“Road safety facts”, 2021). To ensure that the customers of our business are protected from potential dangers and can lead healthy, successful, lives, an offering of assistive safety technology is made.

Customer Relationships

The main way that the relationship between the customers and the company will be established will combine a customer-centered work approach, and the use of social media as the primary method of engagement. Current research shows that using social media can be beneficial in building a positive, lasting image and retaining an audience (“Social media for business”, n.d.). The creation of social media accounts on major platforms, such as Facebook and Instagram will be beneficial to the goals of the organization. Additionally, the use of customer-based marketing, communication, and development is the most effective tool for organizational development, as shown by a great number of other businesses (Vainstein, 2019).

Customer Segments

The main customer segments for the business are middle and upper-class car owners. This demographic is the one that regularly utilizes cars in their day-to-day life, as well as can afford the additional security measures for their vehicles.

Key Resources

Key resources for this project include the monetary resources to purchase the car safety technology for sale, hire marketing experts, social media managers, and other professionals to assist in both securing the products and leading the advertising campaign.

Channels

The main way for our company to communicate with potential customers will be through social media and TV advertising, as they are the most widespread and effective methods of promotion today. The advertisements will use evocative language and statistics to demonstrate the need for additional protection, as well as promote the company’s social media resources and website, which will be further used to sell the products.

Cost Structure

The business venture includes a variety of costs, both fixed and variable. Fixed costs would include rent for storage, website hosting, social media management, and taxes. Alternatively, variable costs will be spent on advertisement and the acquisition of vehicle safety devices to sell.

Time and Expenses

Website hosting services must be taken into account, with the cheapest option being up to $15 a month. Car backup cameras have a bulk price of 10$. Starting with 100 cameras would bring the cost to a 100$. Hands-free call devices are also going to be purchased at the same amount of pieces, totaling up to ~250$ in bulk. These considerations bring up the initial costs for a business to 365$ for the first month and a supply of 100 cameras and 100 hands-free devices. The average consumer price for lower-grade cameras fluctuates from 70$ to 99$ which can be rounded up to 85$. The price for a hands-free consumer-grade transmitter is noted to range from 2.87$ to 3.79$, with 3.33$ being the average. Presuming that the company will be able to sell its entire stock in the first month, the company will be able to make 1183$, fully covering the initial costs and being left with 818$ profit. The initial costs will be either crowdsourced or paid out of pocket.

Revenue Streams

The main stream for company revenue will be extracted from direct sales of assistive technology and safety devices.

References

Dipert, B., et al. (2015). Smart exterior cameras enhance vehicle safety, security. Edge AI and vision alliance. Web.

Fitch, G., Soccolich, S., Guo, F., McClafferty, J.A., Fang, Y., Olson, R.L., Perez, M.A., Hanowski, R., Hankey, J., & Dingus, T. (2013). The impact of hand-held and hands-free cell phone use on driving performance and safety-critical event risk. Web.

Road safety facts. Association for safe international road travel. (2021). Web.

Social media for business. Support for businesses in Australia. (n.d.). Web.

Vainstein, A. (2019). The advantages of a customer-centric strategy. Potloc Consumer Insights. Web.

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StudyCorgi. 2022. "Discussion of Business Model Canvas." September 17, 2022. https://studycorgi.com/discussion-of-business-model-canvas/.

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