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TEMO Case 1:The Taste of Wine

Malus Alexandru, s131188

Agenda

1.Business Model Canvas2.Effectiveness and Efficiency3.Competitive advantage4.Key problem, Problem owner5.Assumptions6.Swot Analysis7.Porter’s five forces8.Conclusions

Slide number 2

3

Business Model

Cost structure Revenue streams

Key resources Channels

Key activities

Key partners

Value propositio

n

Costumer relationships

Costumer segments

Slide number 3

• Dairy Companies

• The supply chain companies

• Develop• Produce• Sale the new

technology equipments

• Measuring equipment for dairy industry

• Maintenance service

• Close contact with customers

• Dairy companies

• Innovative and experienced employees

• Knowledge of the technology

• Direct contact with customers

• Development cost• Production cost• Employee cost

• Selling equipments• After sale service

LOW EFFICIENCY/LOW EFFECTIVENESS:

For Competitors: Manager chooses wrong goals to pursue and makes poor use of resources. The result is a low-quality product that customers do not want.

Effec

tiven

ess

Efficiency

HIGH EFFICIENCY/HIGH EFFECTIVENESS

For Milkfos: manager chooses the right goals to pursue and makes good use of resources to achieve these goals. The result is a product that customers want at a quality and price that they can afford.

High

High

Low

Low

Effectiveness versus EfficiencySlide number 4

5

Competitive advantage

InnovationEfficiency

QualityResponsiven

ess to consumers

Lack of Innovation department

Close contact with customers

Significant competences

Years of experience

Quality standards met

Competitive AdvantageSlide number 5

Key problem & Problem Owner

Key problems1. Security2. Lack of innovation department

Problem Owner: CEO of Milkfos

Slide number 6

Assumptions

1. The two engineers managed to explain their idea to the management director

2. The management director realized that Milkfos was lacking security

3. An innovation department was created to try and figure out if wine sensors can be produced. The CEO of the company invested money as well

4. Milkfos expanded for international dairies, investing in advertising

Slide number 7

Strengths Weaknesses• Experienced engineers• Close partners with dairy

sector, receiving feedback.• High reputation within

Denmark• Higher quality milk sensors

than competitors

• They lack experience for wine sensors

Opportunities Threats• Develop wine sensors to

expand possible revenue• Extending the sensor market

brings more competitors for wine industry.

Inte

rnal

Exte

rnal

Slide number 8

SWOT analysis

The level of rivalry: Milkfos has a concise goal with a powerful concentration ratio. Advertising expenses were covered partially by the CEO’s wine company. As the innovation department is fully functioning, the level of rivalry decreases exponentially.

The potential for entry: sensors offer a profitable market which can attract many new firms. Problem for them is that a great capital is needed to produce a high quality product Milkfos currently has and will continue having through development.

The power of suppliers: the company not only develops, but are making their own sensors. Sources of raw materials can be found on many suppliers as Milkfos expanded globally, thus decreasing the power of suppliers.

The power of customers: the firm switching costs to globalization doesn’t affect the buyer. Milkfos isn’t put under pressure, as they’re offering details through advertising to the rest of the clients, after sale maintenance.

The threat of substitute products: is small, as the latest sensors which Milkfos possess have both the precision in measurements, and a broader range.

Slide number 9

Porter’s five forces:

Ideas- always good if they are used correctly. (talk about the two engineers)

Knowing when to expand- always good. (talk about the manager director).

Slide number 10

Conclusions:

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Questions?