GN Resound Business Model;
To appropriately recommend GN Resound on how to move forward with their decision making processes, it is important to understand the business-model as a whole. In particular the issue with retail – can be determined by once again clarifying how GN Resounds business model looks now and therefore be able to explain efficiently how their business model should look moving forward and which strategies GN should consider. To identify how GN Resounds business model is we have used the Business Model Canvas to create overview – this is a strategic tool used to give a company a descriptive view of where they are now and then set new goals to where they want to be by revising and remaking their business model. We felt the main questions given can alle be summed up into one overall strategy: Which Channels should be used to create the most effective and effecient sales and distribution. This will be the driving thesis of this paper. In general, for GN ReSound we would recommend a retail system that responds to the general business strategy and its objectives, but inherits the ability to meet the needs of the different customer segments targeted. Looking at how the market is developing; fast technology advancements and considering their customer segments. We recommend That GN should utilize a market specific business model, this means leaning on and leveraging the individual markets socio-economic tendencies. We suggest that retail stores should increase in number depending on which market GN is in. Is it a European market, specifically northern that have a more elaborate welfare system they should keep focus on B2G and buying—groups, maintain their distribution channels and chain-network along with limiting their own-retail stores. However markets that have a smaller welfare market, ie North America or Brazil retail shops should be set up. Rather than using outlet entry strategies to capture GN should perhaps use strategic alliances in these given markets. We would suggest a closer look at model of the channel design process to support the decision making. It includes the definition of the customer segment, the prioritization and identification of the different channel requirements, an assessment of the company’s ability to meet the requirements, a benchmark of the channels of key competitors, a creation of channel solutions that correspond to customers’ needs and a final evaluation and selection of the most convenient channel option. In case of GN ReSound the channel design process can be used with special emphases on the retailing, however, the alignment of the total supply chain and marketing efforts should not be neglected. Bearing in mind, that the average customer is aged 71, the buying roles within the buying process should be considered respectively. Internally for the financial aspect of the company we believe the company should have these considerations in mind for making such a vast restructuring of their business model. Due to lack of resources and the inability to look into classified information such as production costs and product development budgets we state these recommendations with basic knowledge: Financial benchmarking: GN ReSound should make a financial benchmark to compare the processes and performance with competitors. The financial benchmark measures quality, time and costs to assess the overall competitiveness.
Activity Based Budgetting: For the company not to overstock their inventories, GN ReSound should use activity based budgeting. ABB gives the company the opportunity to control the resources supplied to be able to meet demand Strategy
This Leads to the final part of the paper: how does GN implement the strategy. Implementation is done not only by merely stating a strategy. This has to be aligned not only with the business model but it needs to be synchronized with the organization itself. GN must understand why and how this change will come from top-down. This can be...
Please join StudyMode to read the full document