Market viability analysis

Market viability analysis

Market viability analysis


1


Contents


Executve summary……………………………………………………………………………………………………………………..3


Introducton……………………………………………………………………………………………………………………………….4


Lean Start-Up methods you have used…………………………………………………………………………………………..5


Tools you have used…………………………………………………………………………………………………………………….6


Identfy stakeholders and consumers in your tests…………………………………………………………………………..8


Risk management strategies…………………………………………………………………………………………………………9


Results of your testng with the market………………………………………………………………………………………..10


MVP and MVP strategy………………………………………………………………………………………………………………11


GO/NO-GO………………………………………………………………………………………………………………………………12


Summary…………………………………………………………………………………………………………………………………13


References……………………………………………………………………………………………………………………………….14


Appendix…………………………………………………………………………………………………………………………………16


2



Executive summary


A lean business model is an approach that helps the business in managing and creating startups.


Many entrepreneurs spend months and years in developing the product but when they launch the


product fails because they never show it to the target customer. The lean business model helps the


business develop a prototype and get feedback from the customer and develop that prototype as


per their feedback so that when the product launch in the market it is easily acceptable.


This report shows how an entrepreneur uses a lean business model to develop a venture


3


Introduction


The SA (student agency) provides VET, higher, and ELICOS courses to the Columbian students.


To provide training and educational facilities, the student agency needs to obey the rules and


regulations framed by National Regulation ASQA and TEQSA and Federal Parliament.


Vision Statement: Our Vision is to become the first choice of both the corporate and individual


clientele in Melbourne Australia. Our values are teamwork, excellence, service, and integrity.


Mission statement: Our mission is to become one of the top 10 student agencies in the next 10


years.


Business structure: Student agency provides the bridge which reduces the gap between the


university/school and the student of Columbia. We provide services like assisting in the selection


of the course, admission process, scholarships, guidance, and support services to the students and


marketing services to the universities. We have a tie-up with both the universities and the


students.


4


Lean Start-Up methods you have used


The best methods for the start-up is build, measure, and learn cycle. As I am running a venture


this helps me to understand the need of the customer (Hechavarria, et.al. 2016). Lean Start-up


method involves following steps


Phase 1: Build


As most of the college students are facing the problem related to finding the right course in the


right universities and if they find the course they face challenges with the admission process. The


student agency provides a solution to that. As for the initial stage, the main focus of SA is


students. The entire process is run through a website where students book their services and slots


and then our expert will coordinate with the students and provide a solution to them. A


questionnaire is developed to analyze what students think about the services? Are they satisfied


with the service? If no why and what changes they want?. The questionnaire is distributed to


those students through online channels


The Hypothesis that I formed before starting the business is that the SA will solve the student’s


problem related to the admission process.


Phase 2: Measure


The data collected through the questionnaire helps analyze student perception regarding SA.


According to the data collected, SA can fulfill the customer expectations and the hypothesis I


made before starting the venture is right. But some students find it difficult to coordinate it with


us through the Website.


Phase 3: Learn


Through the questionnaire, I had found that there is a gap in the communication channel. To fill


that gap SA decided to open a new customer service department (CSD), a toll-free number is


available on the website. The customer can contact the CSD instead of waiting for the expert to


contact them (Galli 2019). .


5


Tools you have used


Business model canvas


This model was propounded by Alexander Osterwalder. This model shows the blueprint of the


business model that is it shows who are the target audience, what is the value proposition, what


are the channels through which the company offers value proposition, how the company earns


money and much more (Joyce & Paquin, 2016)


The business model canvas of SA


Customer segment


The target customer of SA is the students of Columbia who want to pursue courses like


ELICOS, higher and VET and the universities/ schools/ colleges. The students and the


universities show a positive response in the questionnaire.


Value proposition


There is four value proposition provided by SA. First low commission/ competitive


commission, second-best services, third are a responsible employee and last SA provide


a vast variety of services to both the students and the universities.


Channels


The channels used by SA to promote its services are advertised on TV, Radio,


newspaper, word of mouth, social media like LinkedIn, Twitter, Instagram and


Facebook, banners, handbills, fliers, and websites.


Customer relationships


SA builds customer relationships through the website and customer service department.


On the website, the students book their services and slots and then our expert will


coordinate with the students and provide a solution to them. And they can also call the


CSD for the assistance.


Revenue stream


The sources of revenue are the commissions from the universities/ schools/ colleges.


And the payment options are bank transfer, cash, POS, online bank transfers, check, and


bank draft.


6


Key activities


The key activities taken by SA are assistance services, IT management, customer


support, and HR management. Assistance services are a selection of the course,


admission process, scholarships, guidance and support services to the students and


marketing services to the universities. IT management is responsible for managing the


website.


Key resource


The key resources of SA are a competitive commission and high-quality services,


engaged and loyal workforce, and website and CSD.


Key partners


The key partners are social networking, universities, school, institutions and social


influencers.


Cost structure


The costs related to SA are


Service: 20%


Salaries: 50%


IT costs: 20%


Marketing cost: 10%


7


Identify stakeholders and consumers in your tests


The key stakeholders are social networking, universities, school, institutions and social


influencers. The target customer of SA is the students of Columbia who want to pursue courses


like ELICOS, higher and VET and the universities/ schools/ colleges. After doing the informal


survey like observation and talking to the student I have found out that the main problem that


students are facing is finding the right course in the right universities and if they find the course


they face challenges with the admission process.


After the observation, I feel that this can be a venture as it solves the problem of the students.


After starting the venture I again run a formal test to check the satisfaction level of the students


and the universities. And found out that SA can fulfill customer expectations.


8


Risk management strategies


The risk management strategies used by the SA are PEST analysis to identify all the external


factors that affect the operation of the business (ARAYA-CASTILLO LUIS, et.al. 2018).


Political


The SA (student agency) provides VET, higher, and ELICOS courses to the Columbian


students. To provide training and educational facilities, the student agency needs to obey


the rules and regulations framed by National Regulation ASQA and TEQSA and Federal


Parliament. Any changes in the rules and regulations directly affect the SA.


Economical


The target customers are the students. Most of the students can’t afford the high prices


for the course plus fluctuation in the currency affects the prices of the courses and fees


structure.


Social


Studying abroad is becoming a trend and a social symbol. Most of the students want to


study in Australia because of the trend and they want to explore a different country. This


trend can be beneficial for SA.


Technological


Advance technology in the education sector helps the Dirtbusters to provide efficient


and fast services. For example online courses, etc.


Through the questionnaire, I had found that there is a gap in the communication channel.


To fill that gap SA decided to open a new customer service department (CSD), a tollfree number is available on the website. The customer can contact the CSD instead of


waiting for the expert to contact them.


9


Results of your testing with the market


During the entire planning of the venture few hypotheses are formed and the result is an analysis


based on a test conducted through a questionnaire (Edjossan-Sossou, et.al 2020)


Hypothesis 1: SA will solve the student’s problem related to the selection of the course and


admissions process


Result: yes, students and universities are satisfied with the services and it solves the issue related


to the selection of the course and admissions process


Hypothesis 2: The key promotional tool is the word of mouth and social media


Result: Yes, most of the students and staff members came to know about the SA are through the


WOM and social media accounts


Hypothesis 3: SA can turn out to be a marketing tool for universities.


Result: yes, the admissions in the universities have increased after they had the tie-up with SA.


10


MVP and MVP strategy


A minimum viable product is a strategy used by the business to test their product and services on


the small target customer before launching it on a larger scale. This strategy is used to test the


customer’s viewpoint or perception regarding the product. The company makes changes in the


product as per the customer feedback before launching it again (Anh, et.al 2019).


There are three different types of MVP strategies are


Wizard of Oz: in this, the hypothesis is created and the test is run to prove or disapprove the


hypothesis. In this, the customer believes that the products are fully developed but the company


only shows the mimic of the future product.


Smokescreen: in this, the product does not develop but the business shows the video to the target


customer that how it will look after the product is developed.


Concierge: in this, the businesses focus on one customer at a time and design the product and


services according to that customer. After the experiment has competed with the entire target


customer the business combines all and develops one product or services (Tripathi et.al 2019).


MVP strategy in the case of Dirtbusters


SA selects one college to test the viability of the venture. Currently, SA is focusing only on the


students of Columbia and has a tie-up with three universities. A questionnaire is prepared to


analyze the perception of the target customer before launching this model for the different


universities and different nationalities of students. This strategy helps to identify the loopholes in


the venture process and also helps to find a way to solve those loopholes. MVP strategies help to


identify the communication gap.


To fill that gap SA decided to open a new customer service department (CSD), a toll-free number


is available on the website. The customer can contact the CSD instead of waiting for the expert to


contact them.


11


GO/NO-GO


I will GO with this venture. The hypothesis that I formed before starting the venture is proved


true. After using all the tools and techniques of the lean business model and risk strategies, it is


proven that the business can solve the problem faced by the target customer. This venture turns


out to be profitable as there are no major competitors in the market. The SA can maintain the cost


and earn profits.


12


Summary


To succeed in my venture ‘Student agency’ I used to build, measure and learn a model to analyze


the customer perception about the services and make changes in the business according to that.


This helps my business to grow. The MVP model helps the business to identify the target


customer and to launch the product for a small portion of the target customer as a test to identify


whether the venture will be successful or not. It helps to make changes in the business according


to the feedback of the customers. The risk strategy that I used is the PEST model that helps to


understand the external factors that affect the operation of the business. After analysis of all the


factors, I have decided to GO with this venture.


13


References


Hechavarria Diana M, Matthews, C. H., & Reynolds, P. D. (2016). Does start-up


financing influence start-up speed? evidence from the panel study of entrepreneurial


dynamics.
Small Business Economics, 46(1), 137–167.


https://search-proquest-com.ezproxy.laureate.net.au/docview/1754489838?


accountid=176901


Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: a tool to


design more sustainable business models.
Journal of Cleaner Production, 135, 1474–


1486. doi: 10.1016/j.jclepro.2016.06.067


ARAYA-CASTILLO LUIS ANDRES, RODRIGUEZ RAMIREZ JAVIER, VARGAS


MONTERO, M. A. R. I. T. Z. A., & VILLALOBOS RODRIGUEZ GERARDO. (2018).


Lean start-up as a strategy for the development and management of dynamic


entrepreneurships.
Dimension Empresarial, 16(2), 193–208.


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a91d-4c90-af23-60b78601cd1e%40pdc-v-sessmgr06&bquery=%28AU%2Baraya-castillo


%2BAND%2B%28IS%2B%25221692-8563%2522%29%2BAND%2BDT


%2B2018&bdata=JmRiPWJzdSZ0eXBlPTAmc2VhcmNoTW9kZT1TdGFuZGFyZCZza


XRlPWVob3N0LWxpdmU%3d


Galli, B. J. (2019). Reflection of literature on using lean innovation models for start-up


ventures.
Journal of Modern Project Management, 7(3), 6–18. doi:


10.19255/JMPM02101


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447f-4824-aabb-95bb56aef007%40pdc-v-sessmgr03&bquery=%28AU%2Bgalli


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XRlPWVob3N0LWxpdmU%3d


De, C. W. S., Van, D. V. J., Boers, R., Brandsma, T., Haij, M., Moosel, W., … Van, D. S.


G. (2018). Agile development in meteorological r&d achieving a minimum viable product


in a scrum work setting.
Bulletin of the American Meteorological Society, 99(12), 2507–


2518. doi: 10.1175/BAMS-D-17-0273.1


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Anh, N.-D., Khan, K., Sohaib, S. B., & Tor, L. (2019). Minimum viable products for


internet of things applications: common pitfalls and practices.
Future Internet, 11(2). doi:


10.3390/fi11020050


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Tripathi, N., Oivo, M., Liukkunen, K., & Markkula, J. (2019). Startup ecosystem effect


on minimum viable product development in software startups.
Information and Software


Technology
, 114, 77–91. doi: 10.1016/j.infsof.2019.06.008


https://www-sciencedirectcom.ezproxy.laureate.net.au/science/article/pii/S0950584919301417


Edjossan-Sossou, A. M., Deck, O., Verdel, T., Galvez, D., Al, H. M., Dupont, L., …


Morel, L. (2020). Sustainable risk management strategy selection using a fuzzy multicriteria decision approach.
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15


Appendix


Questionnaire for the student


Name:


Which course you are interest in?


о VET


о ELICOS


о Higher


Are you sure which university you want to join?


о Yes


о No


о Partially


Did you use the service of SA?


о Yes


о No


How do you come to know about us?


о Word of mouth


о Social networks


о Flyers


о Advertisement


о Website


Are you satisfied with our services?


о Yes


16


о No


о Partially


Do you face any issue in dealing with us? If yes please specify


о No


о Yes


17


Questionnaire for the universities


Do you think that the admission rate has increases after have tie-up with us?


о Yes


о No


о Partially


Which course there is an incensement?


о VET


о ELICOS


о Higher


о All three


Are you satisfied with our services?


о Yes


о No


о Partially


How do you come to know about us?


о Word of mouth


о Social networks


о Flyers


о Advertisement


о Website


Do you face any issue in dealing with us? If yes please specify


о No


о Yes


18


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