The success of any business venture depends partly on the understanding of the market need and how to provide that need. This understanding is generated through a careful analysis of the market situation relative to the businesses’ abilities. This analysis brings out what is needed, where and who needs it and how it is needed. The compilation of these answers together with the cost of delivering the market need is generally referred to us as a business model. Business models provide businesses with the reasons why they enter into particular ventures and how they will conduct those businesses successfully.
The Business Model Canvas
Some of the following businesses have been suggested using the Business Model Canvas. The Canvas is a tool for describing the rational of how an organization creates, delivers, and captures value. The Canvas enables organizations to easily describe and manipulate business models to create new strategic alternatives. It provides the methodology to systematically challenge underlying assumptions of any business models and to innovate successfully. The Canvas covers the critical components of any successful business.
• Partners, suppliers, value creating activities, and the required resources
• The product value proposition
• Customers, customer relations, and distribution channels
• The cost structure
• Revenue stream
The models suggested here are based on the analysis and recommendations of the different segments of the potato value in the preceding sections of this document. Two business models using the Business Model Canvas have been conceived. These are models for aggregation and distribution of potatoes; and certified seed potato production, multiplication and distribution, and are mainly based on assumptions. Furthermore, four business models, tackling crisps for the local consumer market; fresh-cut chips for the hotel and restaurant industry; frozen chips for consumers, hotels, and restaurants; and mechanized nucleus potato farmers producing for processors will be presented not using the Business Model Canvas.