Business Models: Abena Nova

Business Models: Abena Nova

Companies have been able to compete with other firms because they have adopted the use of business models. This has led to the growth of their businesses, change of the products they manufacture and also new market segments. A business model is therefore described as the plans that the company adopts in its daily operations in order to achieve the set goals and objectives. By using business models, business activities are broken down into something smaller and tangible (Baden-Fuller & Morgan, 2010). A business model contains: value proposition, market segmentation, business strategy and the position of a business. A business model is described both in economic level and operational level (Osterwalder &Pigneur, 2010). A business model consists four important elements which are combined together to create and deliver value. They include; value proposition, key resources, processes, and profit formula. Every organization has its own business model which can be either documented or not which displays the view of the business. Business disruption is the adoption of new markets and value network whereby an existing market and value network is disrupted and displaced. According to research, the disruption is mostly done by outsiders and the entrepreneurs and not the existing market companies. For any organization to succeed, it should adopt those models which will make them adjust to any situations in future. This assignment explains the threats and opportunities of Abena nova company, the findings, the elements its business model adopts and the significance of the model to its business and the future of the business (Aspara et al.,  2013). It will also include a video description that will give a summary of this assignment.

Abena is a company which produces and sells healthcare smart connected products, plastic bags, disposable paper products, disposable tableware, candles, napkins, baby diapers and waste systems. It was founded in 1953 with subsidiaries in about 18 countries and supplies more than 25000 products while operating in 86 countries globally. Abena nova is the first best diapers which are expected to be launched this year in collaboration with Danish company and Silicon Valley-based Medisens Wireless.

The products manufactured by the Abena company have led to great opportunities for the company operations. The intelligent diaper is important because the staff of the company is able to improve the toileting and personal hygiene. The use of the intelligent diaper has given the company the opportunity to be the first company to launch the product hence many companies are expected to collaborate with them. By launching the product, the company will be able to improve the quality of life for those people living with incontinence. The company aims at developing a highly innovative technology which will improve the quality of care of their customers (Teece, 2010). Due to its production of excellent products, the company has been able to open more market structures in different places in the world and increased their models of operations. The company has been exposed to different markets especially the competitive ones because it offers value-added services to their clients. There has been a development in educational programmes which has enhanced communication with the nursing team, customers, and the industry. This has improved their products and knowledge bases hence encouraging their customers. The company has adopted different practices to improve quality of life of their employees; they have offered a motion and massage services, non-smoking policy, rehabilitation of those suffering from alcoholism, employee health checks, filtered fresh water and also hiring a large number of foreigners. They have reduced the use of energy by adopting friendly and efficient energy management. They have partners and suppliers all over the world who distribute their products.

The company also experiences several threats in its operations hence affecting its performance. The advanced technology has affected their operations especially by adopting the numerous types of technology in the care home environments (Sosna,  Trevinyo-Rodriguez, & Ramakrishna, 2010). This is because the different types of technology have different hardware and software which don’t communicate. Also, there is a lot of innovations in the care homes hence making it difficult to understand the right provider of the solutions they need. There has been increased number of elderly people and decrease in a number of young people in the care homes. This has challenged the caretakers in trying to evaluate how they can innovate and maintain high standards.

Every company has its own business model which contains the strategies and operation of the business (McGrath, 2010). Business strategy helps the company to be able to compete with their enemies while the business model explains how the businesses fit together hence business model is a link between strategy, business organization, and systems. According to Osterwalder & Pigneur, a business model is a plan which explains how a firm creates, delivers and captures value. The Abena company applies the business model canvas in its operations which contains key elements to help in its operations (Al-Debei & Avison, 2010). The business model contains nine elements; customer segments, value proposition, channels, customer relationship, key resources, key activities, key partners, revenue streams and cost structure. The company suffers no competition issues because it’s the world’s first company to produce the excellent health products. This makes the business model canvas important because it does not take into account competition.

The business model of the Abena Company contains some elements which they have applied in their day to day operations; value proposition, capabilities, resources, processes and profit formula.

Value proposition: The company has been able to find different ways so as to create value for their clients by designing products that will enable the customers to work effectively. This solves the customers’ problems and also satisfies their needs (Wirtz Schilke, & Ullrich, 2010). The value proposition is simply the bundle of benefits that the company offers to their customers. Abena company is able to provide their clients with health products, and other important products and services. This satisfies their customers’ needs.

Capabilities: The Abena company has shown so much capability in trying to solve their customers’ problems. How they relate to their customers is important bearing in mind that the customers have different needs and expectations. By relating well to their customers, they have been able to increase their markets worldwide because of high demand.

For the success of any company, there should be sufficient resources in its operations. These are the main assets in any business model which can be either physical, human, intellectual or even financial. The resources include people, technology, products, suppliers, facilities, equipment, channels of distribution and cash. The Abena company ensures that the resources which are required to produce their preferred products are readily available every time.

These are those processes which a company adopts in its daily operations for using its resources. They can be either operational or managerial processes.  The processes which the Abena Company includes; training, manufacture and sales and services.  This has made the company to be successful all over the world. The company uses a set of processes designed to improve productivity, quality of customer service, product quality, and enhanced competitiveness in the industry. Training and development of employees is a process set by the management to enhance the quality of their skills, knowledge, expertise, and competence hence leading to improved productivity by the company. There are also other processes designed by the management to enhance sales and marketing operations with an aim to enhance productivity, profitability and brand image in the targeted market.

This is the gain that the company is expected to earn in its business operations. Profit making is the main objective of each firm. The business model of the Abena company takes into account the profit formula. This has led to the generation of more income, more profits and also high productivity. Maximizing shareholders’ equity and wealth in another goal of the company. the establishment of a profit business model has helped the company have a clear control of its net sales and expenses that assists the management in calculating the exact profit made in a given period of time. The finance department of the company uses both the gross profit and net profit formula in determining the profit made in respect to the made sales in the overall operations of the company.

A business model is significant in any company in its daily operations. This is because it comes up with a business idea and strategy. It’s also important in trying to solve the competition problem facing any firm (Zott & Amit, 2010). This is because the company can advance their innovation hence competing with their rivals who produce similar products. The business model has helped the Abena Company to become successful because of the elements it contains which guide them in their daily operations. By using the right business model, the company’s productivity has been able to increase rapidly and this has led to the generation of more income and profit. The adoption of a business model canvas is important because it is easily used and experimented (Zott, Amit, & Massa, 2011).  All this means that the use of the right business model is significant to the future of the Abena company.

In conclusion, companies should adopt the right business models in their daily operations. This will make them grow rapidly and be successful in their operations. In our task, we have viewed the terms business model and disruption. We have also described the Abena company which produces and sells healthcare products, plastic bags, disposable paper products, disposable tableware, napkins, candles, baby diapers and waste systems. We have viewed the several opportunities and threats that the company faces and also the elements contained in the company’s business model. The implementation of the new business model will ensure that the company has a wider market segmentation and improved infrastructure in future which will be advanced due to the advanced technology. Lastly, we have discussed the significance of the business model to the future of the company.

Video Description

The main points to be expressed in the video are the products, the success of the business and the strategies adopted by the business. During the implementation of the business model, the firm faces some threats in its operation. The video is going to describe the new opportunities which emerge after the business model has been implemented. The video will also display the important benefits that arise in the process of implementation of the model. The video will involve characters who will be able to demonstrate the key aspects fully for better understanding. In this case, character’s’ shows the entire model of the firm, merits, and demerits of the firm’s plan of running it. To demonstrate the firm’s SWOT analysis and the present form of the firm, character ‘n’ will be used. After the implementation of the business is done, character ‘o’ will be introduced to show the new opportunities and threats that will arise. Symbols will be used to exhibit the character so as to portray an excellent operation of the business. Before the implementation was done, the previous picture of the firm will be demonstrated by character ‘p’ will be used. The picture which will be used in this case will represent the worst state of the current situation of the firm. Character ‘q’ will represent the succeeding firm after the process of implementation of the business plan is completed which will cover all the resources.


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