Goal:

Frnv assignment:

Goal:

develop a new business model that can compete with an existing company.

choose a listed company from ASX and create a detailed business plan for the new venture

The focus will be on

justifying the superiority of the new business model, especially from a finance perspective, by

highlighting the advantages it offers compared to the chosen company and

outlining strategies for effective competition.

Company selection (10 marks):

focusing on an industry that demonstrates great potential for growth and innovation

industry should be one where market dynamics and consumer preferences are evolving rapidly, presenting an opportunity for new entrants to disrupt the status quo.

The chosen industry should be thoroughly researched and analyzed to showcase its current position and growth prospects

Students should consider the following factors when justifying their industry selection:

1. Market Potential; the valuation of the sales revenue from all the supplying channels in a market

2. Competitive Analysis; .the process of identifying competitors in your industry and researching their different marketing strategies

Iconic and DJ

3. Opportunity for Disruption (most important)

COLLABORATIONS

Provides insightful explanations and discussion for selecting the industry and company to a great extent.

Demonstrates a good understanding of the chosen company and its industry.

Provides insights into the chosen companys business operations

B. New Business Model Development (20 marks):

create a new business model that competes directly with the chosen company.

The new model should target

the same or a related market segment and offer innovative products or services.

Students must conduct an in-depth analysis of the chosen companys existing business model, especially focusing on financial aspects using financial statements.

Then, based on your understanding of the chosen companys business model, you are required to create a new business model and

compare the advantages and disadvantages of both the chosen company's existing business model and your new venture's business model from financial aspect

The primary focus should focus on some of the following financial aspects (or others that you think are important):

1. Revenue Generation:

Compare and contrast the revenue streams of both models;

( add new sztream )

Myer's online business is a significant asset that continues to deliver strong growth, now representing 24.2% of total sales.

2. Cost Structure:

Analyze the cost structure of each model and explain how the new venture's model is more cost-effective;

3. Profitability:

Analyze the profitability of both models and explain the factors contributing to the differences;

4. Funding and Capital Requirements:

Roughly assess the funding and capital needs of new ventures and identify how the new model requires less capital or offers a better return on investment;

5. Investment choice:

What investments need to be made in this new business model and explain how your investment choices will maximize profits for shareholders.

6. Financial Risks:

Identify and evaluate the financial risks associated with your business models and propose mitigation strategies for this new venture.

Provides specific explanations and discussions of the new business model,

its operations,

key success financial factors and

how it would operate and succeed to a great extent

Explain how can it complete with the chosen company

Provides insights into the feasibility of the new business model

C. Competing Strategy (10 marks):

outline a comprehensive competing strategy that enables their new venture to effectively challenge and outperform the chosen company.

How to compete w companies in the industry

The strategy should be based on a thorough analysis of the advantages the new business model offers, especially from a finance perspective.

The competing strategy should address some of the following key components:

Value Proposition and Differentiation:

Clearly define the unique value proposition of the new venture's business model and how it sets itself apart from the chosen company. Highlight the key differentiators that will attract customers and position the new venture as a formidable competitor.

Pricing and Cost Advantage:

Determine the pricing strategy for the new products or services, taking into account the cost structure analysis. Explain how the new venture can leverage cost advantages to offer competitive prices while maintaining profitability.

Market Penetration and Customer Acquisition:

Outline the approach for market penetration and acquiring customers. Identify target customer segments, marketing channels, and promotional activities to gain market share effectively.

Innovation and Adaptability:

Emphasize the importance of continuous innovation and adaptability in the new venture's strategy. Describe how the business model can evolve to address changing market trends and customer preferences.

Customer Experience and Engagement:

Elaborate on the customer experience the new venture aims to deliver and how it will build customer loyalty and satisfaction. Address how the company plans to engage with customers to foster long-term relationships.

Partnerships and Alliances:

Discuss potential partnerships and alliances that can enhance the new venture's capabilities, distribution channels, or product offerings. Explain how these collaborations contribute to gaining a competitive advantage.

Financial Performance Metrics:

Propose key financial performance metrics to measure the new venture's success in comparison to the chosen company. These metrics should align with the financial advantages identified earlier and serve as performance benchmarks.

Risk Management:

Analyze potential risks associated with the competing strategy and how the new venture plans to mitigate them. Address both internal and external factors that could impact financial performance.

Scalability and Growth:

Present a roadmap for the new venture's scalability and growth prospects. Explain how the business model can expand its operations and market presence to establish a sustainable competitive position.

Long-Term Sustainability:

Discuss the long-term sustainability of the competing strategy and how it aligns with the chosen industry's growth prospects. Highlight factors that will contribute to the new venture's resilience over time.

Note: The strategy should be well-supported by data, research, and financial analysis from the previous sections.

Provides specific explanations and discussions for the competing strategies to a great extent.

Explain how the competing strategy can be employed to compete with the chosen company

Explain how the competing strategy can be employed to compete with the chosen company Provides insights into the feasibility of the completing strategy

Your business plan should not exceed 2,500 excluding financial tables. It is to be typed with single spacing and in 12 point. Wordcount variance of +10% is allowed. Submit the assignment via iLearn/Turnitin by 23:55 on 1 October 2023 as either a Word or a PDF document. See iLearn for late submission cutoff and penalties.