Business Question

OverviewThe elevator pitch in Milestone One was a success! Senior management believes they made the right
choice in giving you the title of CIO and putting you in charge of seizing new opportunities in the
marketplace.
Scenario
While the pitch conveyed your good idea, it was just that: an idea. You now have to test the feasibility of
your idea. However, before you create a complete business model canvas (BMC), you want to quickly
identify key elements needed to take your product or service idea to market.
In doing so, you will assume that all components of the BMC are at the fingertips of your project team.
For example, you will have to work with the marketing and sales departments, and perhaps outside
vendors and suppliers, to promote, advertise, and sell the product or service.
The Business Model Canvas Template you complete in this assignment will serve as the groundwork for
the more detailed PowerPoint slide deck you will create in Milestone Two. As with any well-executed
project, a former project manager experienced in such product-to-market initiatives has agreed to assess
your complete BMC slide deck, which you will submit in Module Five.
Prompt
For this assignment, consider the company you have selected and the work you have completed so far to
further your business idea. Then, complete the Business Model Canvas Template linked in the
Guidelines for Submission section with your assumptions about the key activities for your business idea,
product, or service. Specifically, you must address the following rubric criteria:
•
Value proposition: Complete the Value Proposition building block by describing the value of your
business idea, such as the customer need you are satisfying or the problem you are solving.
•
Front-stage considerations: Outline the segments related to your potential customers, which include
the Customer Segments, Channels, and Customer Relationship building blocks.
•
Back-stage considerations: Make initial assumptions about how your business will work. This includes
completing the Key Activities, Key Resources, and Key Partnership building blocks.
•
Financial considerations: Make reasonable assumptions about the segments that will inform your profit
projections. These include the Cost Structure and Revenue Stream building blocks.
Value proposition. Though you were not explicitly challenged with stating your value
proposition in Milestone One, you are tasked with establishing the value that your Blue Ocean
concept has in the marketplace. Keep in mind the problem-solving aspect of the value
proposition. What problem are you solving for the customer? Why should somebody buy your
product or service? Think about your own reasons for what you buy, from whom, and why.
There are lots of blogs out there about writing value propositions. I like this one the most.
Let me say, too, that The 20 Minute Business Plan: Business Model Canvas Made Easy is a
stellar tutorial. Please don’t begin your BMC without first reading this. It does a good job of
defining the relationships among segments in an easy-to-understand way. Plus, it’s a quick
read. It explains clearly what each segment of the BMC should look like.
You are provided a template for your BMC so you can write and erase to your heart’s content.
Don’t settle for just a single iteration. The more drafts you have, the better your final will be.
The BMC isn’t asking you for numerical values. Look at each box as a list of
considerations impacted by your Blue Ocean Strategy (BOS). For instance, the Cost Structure
segment is a listing of expenditures to produce your BOS. If a backstage Key Activity is
manufacturing or marketing, that is what you put under cost structure: product manufacturing;
product marketing. All your backstage considerations—Key Activities, Key Resources, and
Key Partners impact cost structure.
The Revenue Streams segment doesn’t ask for numerical values either, but rather how you
plan to earn your revenues. Subscriptions? Transactions? Recurring fees from licensing?
visit, Click here for more on revenue models.
The BMC isn’t asking you for complete sentences, paragraphs or narratives. Each
segment should contain a list of considerations relevant to that part of the canvas. Google
“Business Model Canvas” images for examples.
If you use market research or course materials to support assumptions (which I highly
recommend), add a slide to the PP to accommodate your reference list.
________________________________________________
Critical Thinking. It’s easy to get hung up on cost structure, profitability, ROI, and revenue
gains. How to start? What information should I be looking at? How do I interpret the
numbers? The financial aspects of pitching numbers to investors cannot be understated. Like
I’ve said in the past, pitching an idea without including the financial implications is like
driving down a dark road at night with no headlights.
Enter the Paul-Elder Critical Thinking Framework. A process that helps put assumptions into
perspective while helping to align our reasoning with innovation and the Blue Ocean. It
breaks the critical thinking process down into six steps that make you feel more comfortable
thinking outside the box.
________________________________________________
Business Simulation. It’s baaaaack! This second round will help you gain a clearer
understanding of the BMC, particularly how it changes over generations of a family business.
Keep in mind the journal is about your thoughts and decisions and how you feel about your
performance as it relates to the BMC. You’re the one running the show. Meaning, the
business doesn’t happen to you; you happen to it. If you make assumptions, then reference
(in-text citations and reference list) market research or course materials that helped you make
the assumption. Do not use quotations in the Journal.
Business Model Canvas Template
Key Partners
Key Activities
Value Proposition
Customer Relationship
Customer Segments
[Add your assumptions here.]
[Add your assumptions here.]
[Add your assumptions here.]
[Add your assumptions here.]
[Add your assumptions here.]
Key Resources
Channels
[Add your assumptions here.]
[Add your assumptions here.]
Cost Structure
Revenue Streams
[Add your assumptions here.]
[Add your assumptions here.]
1
Elevator Pitch for Eco-Fly Performance Running Shoe
2
Elevator Pitch for Eco-Fly Performance Running Shoe
Introduction
Thank you for giving me the chance to introduce to you, ladies and gentlemen, Nike’s newest
eco-friendly running shoe, the Eco-Fly Performance Running Shoe. The sneaker, which
embodies our Blue Ocean Strategy (BOS), is more than simply a product; it’s a revolution in the
sportswear business. Our goal is to provide a high-performance, environmentally friendly
running shoe by using Flyknit technology with recycled polyester and integrating midsoles
manufactured from recycled sports footwear and manufacturing trash by ensuring breathability,
temperature management, and simplicity of disassembly for recycling, this creative design raises
the bar for environmentally friendly athletics.
How it fits
Nike’s strategy goal to inspire and innovate for every athlete on the planet is in line with its wellpositioned investment in the development of the new product. Sustainability and innovation are
key components of our company’s mission statement, and this product is a wonderful match for
both themes. According to research, the worldwide market for sportswear and fitness is expected
to expand at a compound annual growth rate (CAGR) of 4.5% between 2024 and 2028, or USD
62.3 billion (Maida, 2024). Our SWOT analysis shows that we have a strong supply chain, a
well-known brand, and innovative capabilities all of which are essential for carrying out this
BOS. Furthermore, the target demographic of eco-conscious athletes and fitness enthusiasts
between the ages of 18 and 45, who value environmental effects without sacrificing
performance, is in line with our commitment to sustainability (Statista, 2024; Future Market
Insights, 2024).
Justification
3
In terms of earnings, the new running shoe is anticipated to be a profitable addition to our
assortment from online sales and direct sales. Eco-friendly sportswear is in high demand,
according to market trends, and businesses that have adopted sustainability have had notable
financial success (Ghimouz et al., 2023). The target market’s incline towards sustainable goods
offers a significant potential for revenue gain and because of its distinctive value proposition, we
believe the new product will fetch a higher price, increasing our profit margins. Preliminary
market research and financial predictions lead us to forecast a 20% return on investment in the
first two years, bolstered by increased top-line sales and positive cash flow from environmentally
aware customers based on industry trends and our company’s financial history, this prediction
shows a significant potential for profitability.
Enhancing the Mission
Nike’s commitment to lead in sustainability and innovation is considerably enhanced with the
release of the Eco-Fly Performance Running Shoe. In addition to being profitable, this product
supports our purpose by catering to the expanding market of ecologically concerned customers.
According to our company’s 10K report (SEC.gov, 2023), sales of sustainable goods have been
steadily rising. We anticipate that the Eco-Fly will have a favorable impact on this trend. Nike
can strengthen its business relationships and increase consumer loyalty by leading the way in
environmentally responsible apparel, which will also improve its financial performance. Our
dedication to sustainability is shown by the Eco-Fly Performance Running Shoe, which provides
an appealing balance between environmental responsibility and performance with this product,
we want to build our brand’s recognition, draw in new clients, and solidify our leadership
position in the market for sustainable innovation.
4
Nike made a wise financial and strategic decision with the new eco-friendly product. In addition
to meeting the rising need for sustainable sportswear and aligning with our goal, it also makes
use of our capabilities and offers substantial profits as well as long-term advantages for our
stakeholders and organization.
I appreciate your time and interest, and I look forward to working with you to launch this
innovative product.
5
References
Future Market Insights. (2024, February 10). Sustainable footwear market trends and
opportunities. Global Banking |
Finance. https://www.globalbankingandfinance.com/sustainable-footwear-market-2022outlook-current-and-future-industry-landscape-analysis-2030-2/
Statista. (2024, March 13). Footwear – Worldwide | Statista market
forecast. https://www.statista.com/outlook/cmo/footwear/worldwide
Ghimouz, C., Kenné, J. P., & Hof, L. A. (2023). On sustainable design and manufacturing for the
footwear industry–Towards circular manufacturing. Materials & Design, 233, 112224.
Maida, J. (2024, July 10). The sports and fitness wear market size is set to grow by USD 62.3
billion from 2024-2028, increasing interest in physical fitness activities due to several
health benefits to boost the market growth, Technavio. Yahoo
Finance. https://finance.yahoo.com/news/sports-fitness-wear-market-size211000153.html
SEC.gov. (2023, May 31). FORM 10K. https://www.sec.gov/Archives/edgar/data/320187/000032018723000039/nke20230531.htm
I intend to use the Business Model Canvas (BMC) for my new product to initially create and
develop in its business model and complete some of the components right away, while others
can take more time. I will first develop the value propositions, customer relationships,
channels, and segments. The target market of athletes and environmentally conscious
consumers, the distribution channels through physical retail stores and online sales, the
building of strong relationships through sustainability-focused marketing campaigns and
recycling programs, and the unique value proposition of fusing high-performance athletic
wear with sustainability are all evident and actionable. I will also research more to fully
understand important alliances, resources, critical activities, cost structures, and income
streams. Strategic connections with environmentally conscious partners, supplier
identification, manufacturing procedures, marketing plans, and sustainable sourcing all need
extensive preparation. I will also conduct a manufacturing expense, pricing tactics,
prospective sales figures, and investigating supplementary income streams such as shoe
recycling services and collaborations with fitness applications research. After being
disregarded at first, aspects including significant partnerships and extra sources of income
have emerged as critical for guaranteeing a steady flow of recycled materials and increasing
income prospects. It is also important to understand that, even if the fundamental elements are
apparent thorough preparation and investigation are required to develop a thorough and
successful business model.