Wk4-01 Animated Video, Navigating the Environment
[MUSIC] Remember the chaos your idea faced before you made the canvas? Well, you've tamed some of it by mapping the elements that are mostly in your control, but the world out there is full of threats, constraints, and opportunities beyond your control. They create the environment in which you'll design and build your business model, and in which your business will fight for survival everyday. Just because you can't control these factors, doesn't mean you can't, and shouldn't account for them in your model. Doing so will help prepare your model for threats, ready it for changing legal constraints, and prime it to jump on innovations. Let's see how mapping the environment will affect the Boomer Travel Agency model. On the right, you'll map market forces. Everything related to the customer segments you selected. Ask yourself, which other segments are there? Which ones are the most lucrative? Looks like Beth has discovered a segment that boomers with a range of disposable wealth. You could ask, which segments are growing, and what do they most want, and why might your customers resist? Okay, good. Boomers have trouble adapting to new technology. Now above your canvas, map Key Trends. A new technology's about to undercut your proposition or super charge it. What regulations are coming up? How is this Society at large shifting, right Carl? Rising medical costs could way heavy on your customers. Now to the left, map industry forces. Who are your main competitors? What advantages do their business models provide? Could they crush you. Your industry may already have a dominate competitor. Competitor. But ask yourself, where are their weaknesses? Can you disrupt them? What might happen as suppliers and partners evolve or don't? Better to know now that the travel field is crowded and volatile, right Carl? Finally, below your canvas mat microeconomic forces. How's the global economy doing? Markets may be in a state of rampant uncertainty. How available is capital? Venture capitalists may be taking few risks. How well is the infrastructure developed in the market you are doing business in? Sure, many boomers are experiencing a decline in living standards. Now you've mapped your environment full of threats, opportunities and constraints. What do you do? Use the map, of course, to make your business model more responsive. Looking at industry forces on the left side of your canvas, ask does your model have a competitive edge today? Tomorrow? Good thinking, Beth. That dominant competitor could be a threat. Looking at key trends on the top of your canvas Just ask is your model prepared for emerging trends? Okay. If rising medical costs encourage overseas treatment, that could be an opportunity for your travel agency. On the right for Market Forces, is your model in line with evolving customer needs? Sure, if your customers are resistant to the internet. You're right to rethink delivery through a website, and below for macro-economic forces, how will your model adjust to macro-economic shifts? Yes Beth, unfortunately travel is becoming a luxury that a growing number of your customers can't afford, but don't be overwhelmed by these elements. Asking and answering these questions will help make your business model better suited to its environment and that much more likely to succeed. Now, you're ready to start testing your model in the real world.
