Value Proposition and Business Model Analysis Assessment Answer

Introduction

The value proposition is defined as the statement that is liable for clearly identifying the benefits of the services and products of the organisation that will be delivered to their potential customers. It acts as an opportunity to specify to the consumer that their company, services or products are the best that they must buy. The customers can summarise why their products will be the best solution for addressing the problems of their potential customers (Vorbach, Müller and Poandl, 2019). The organisations ensure that the quality services are delivered to the consumers.

The report is based on the two case organisations, they are ResMed and Medecins Sans Frontieres. ResMed is a public organisation that deals in the Medical industry and was founded in 1989 with its headquarters in California, U.S. The key products that are being delivered by the firm are medical equipment for respiratory disorders and sleep-disordered breathing (Orgio Inc, 2023). MSF (Médecins Sans Frontières) was founded on December 22, 1971 in Paris. It is an International NGO that emphasises delivering Humanitarian Aid. These organisations are delivering their services worldwide to furnish medical care for the people. The report will be emphasising the business canvas model of these organisations, value propositions along with the stakeholders of the firm.

The Business model in value Creation and Extraction

A business model is defined as the way in which a firm creates, delivers, and captures the values within the cultural, economic, social and various other perspectives. It assists firms in ensuring that they have adequate plans through which they can sustain themselves in the market and address the requirements of their potential customers. In this perspective, the business model for ResMed and MSF is provided below:

ResMed Inc:

Key partnerships: These include healthcare providers, distributors, suppliers, and technology providers that have enabled them to amplify their product offerings and distribution in different parts by maintaining higher levels of reliability and quality. These partnerships are responsible to ensure that the firm can maintain its positioning in the global market by bringing in continuous improvements.

Illustration 1: Business model canvas for ResMed Inc.

Key activities: It comprises research & development, manufacturing, sales & marketing, customer services, and supply chain management. The focus is made on delivering the consumers high-quality products that will assist them to attain the inclined care.

Key resources: It involves intellectual property, supply chain, distribution network, brand identity, human capital, and manufacturing facilities. It aids ResMed in having a competitive edge within the marketplace by delivering healthcare institutes, professionals and patients with quality care.

Value proposition: It depicts the key aspects that ResMed provides for addressing the requirements of its consumers by being competitive in the market. It includes improvised sleep quality, comfort level, convenience, and expert and personalisation support.

Customer relationship: The approach considered by ResMed is that they listen to the feedback given by the consumers, integrate their insights within the development and designing cycle for innovation of the product for meeting the requirements of their probable consumers (Origins, 2007). Here, ResMed has considered building up the customers trust, and creating engaged experience for the customers.

Channels: ResMed has considered distributors, direct-to-customer, product demo, social media and healthcare providers. Through the usage of different channels, firms are reaching their target audiences by providing them with the services and products that are needed by them through the evaluation of the channels for being competitive.

Customer segment: It comprises sleep labs, hospitals, healthcare professionals, and caregivers. The customer-centric approach is utilised by the organisation so that the right services, products, and clinical support can be delivered for satisfying the consumers' needs.

Cost structure: ResMed is prone to various external factors that influence the overall cost structure. It comprises fluctuations within tariffs, taxes, regulatory pressures, and currencies Sibalija, et al., 2021). The cost structure used by the firm is flexible for adapting to these factors. It includes research & development, marketing & sales, manufacturing, and administration costs.

Revenue streams: It includes sales of products, recurring revenue, licensing & royalties, service contracts, accessories and replacement parts. Through this ResMed Inc has established themselves as the leader within the respiratory care industry by providing their shareholders, and consumers with the value (Farrell, 2019). 

MSF (Medecins Sans Frontieres)

Key partners: It comprises sponsors & leaders, local health authorities, government agencies, and other non-profit organisations. MSF has partnered with these entities for delivering their services worldwide to assist people in need.

Key activities: It involves delivering medical assistance across the affected areas, & those who had experienced the natural disasters, delivering medical training & education, carry out research and analysis to inform the healthcare practices and policies. It assists MSF to deliver the services where people need help without any compromise on the quality.

Key resources: Under this skilled volunteers, medical equipment, supplies, medical personnel, funds and donations are included (Frontières, 1995). In MSF these are liable to ensure that the inclined services are being provided to the people through which care can be delivered.

Value propositions: Within MSF, it comprises delivering accessible healthcare in the crisis scenario, focusing on vulnerable populations, neutral & impartial medical assistance, and inclined policies and practices. The focus is made on the vulnerable population so that they can be provided with relevant services.

Customer relationships: The firm ensures that they are reachable by their consumers, it involves compassionate & respectful patient care, collaborative partnership, and transparent reporting (MSF, 2023).

Illustration 2: Business model canvas for Medecins Sans Frontieres

Channels: The different channels utilised by MSF, include medical assistance & direct treatment, medical education & training, advocacy & awareness campaigns, research and analysis. The effective channels are utilised by MSF for reaching the target audience and furnishing them with the services and products that they require. The firm tends to analyse these channels to ensure that all the requirements are met.

Customer segments: Here, the MSF is making use of the customer-centric approach through which they ensure that the services are delivered to their potential customers. It includes. The population is influenced by the conflict & disasters, underserved communities with limited access to healthcare, professionals & healthcare institutions, government agencies & policymakers (MSF, 2022).

Revenue streams: MSF attain their revenue through the donation grants attained through the government, events, and fundraising campaigns, sales of the branded merchandise.

The cost structure of the organisation cannot be determined as most of it is obtained from the funds obtained through different organisations, institutes, or individuals who intend to serve society. 

Dimensions and their Interaction with the Value Proposition

The value proposition canvas is the strategic tool that assists businesses in the analysis and designing of their value proposition that focuses on the creation of the understanding regarding the needs and creation of the services or products that address their requirements. The value proposition of ResMed and MSF is provided beneath:

ResMed:

Customer segment: It primarily focuses on individuals who are going through various sleep disorders. They will be addressing the requirements of healthcare institutions, and providers who need to have sleep-related solutions.

Customer jobs: Attainment of uninterrupted sleep, monitoring & management of the sleep-related health issues, enhancement of the quality and well-being of life.

Customer challenges (pains): Frequent interruptions within the sleep, breathing issues, lack of awareness, discomfort and inconvenience regarding the traditional sleep treatments.

Customer desires (gains): Comfortable & efficient solutions for dealing with sleep apnea, feedback, and real-time monitoring of the sleeping patterns, accessing resources, and information, and improvised quality of life through incline in health.

Value map: The value map of ResMed is centred across innovative sleep devices, comprehensive support, and technology-enabled solutions. Comfortable & high-quality CPAP accessories, machines, analysis tools, smart sleep tracking, education programs, and patient engagement (Inc, 2004).

Medecins Sans Frontieres

Customer segment: MSF targets populations within the crisis, including those impacted by epidemics, healthcare system failure, and armed conflicts.

Customer jobs: It enables access to the medical care within the crisis situation, disease treatment & prevention, and advocacy for the improvised healthcare resources, and policies (MSF.Org, 2022).

Customer challenges involve restricted access to the medical resources, care, and inadequately trained medical professionals in emergencies, security challenges and risks within the conflict zones.

Customer desires (gains): The efficient & immediate response, inclined healthcare services that comprise primary care and surgery. The value proposition of MSF also includes public awareness of the healthcare challenges during crisis settings.

Value map: The MSF has centred on providing essential medical care in crisis situations and advocating the inclined healthcare access globally. The rapid deployment of medical teams within affected areas, provisions for the emergency medical services that surgical interventions (Frontières, 1995). The capacity-building and training initiatives are being taken for the local healthcare providers.

External and internal stakeholders of the organisation's

Stakeholders refer to the third party that possesses interest within the organisation which impacts the business either directly or indirectly. The primary stakeholders involve employees, suppliers, customers, and investors. The internal stakeholders are the individuals who possess interest within the organisation through the direct relationship such as ownership, investments, or employment. The external stakeholders are the people who are not directly associated with the firm but are impacted by the actions and results of their operations. Considering ResMed, and Medicine Sans Frontiers, the internal stakeholders are employees, management, owners, and shareholders (ANZ, 2023). They have an inclined interest in the operations conducted by the firm. For instance, employees are the entities in ResMed who are liable for ensuring the designing, manufacturing, quality, sales, and marketing of the products. Without them, it might not be possible for the firm to attain its objectives and address the requirements of the competitive environment. Considering MSF, employees are liable to identify the issues that are being experienced by the people in the crisis-impacted areas (Inc, 2004). The impact can be diverse and the health concerns will vary, the employees will ensure that proper treatment is being given to the human resources based on the issues that they have experienced. The board members are there within the organisation as their internal stakeholders who are liable for formulation of the strategies and decisions based on which they will be delivering their operations. For this they create separate meetings based on the interest possessed by the entities for delivering their services effectively.

The external stakeholders for both the organisation are suppliers, government, creditors, community groups, labour unions, and customers. These have kept their stakes within the organisation and are representational rather than direct (MSF.Org, 2023). The government is liable for imposing the tax and different policies that impact the organisational operations. For instance, when it comes to the natural calamities then the government takes assistance or furnishes assistance to the NGO’s so that they can impact care to the people who are going through the impact of this. For this they assist in raising funds through various campaigns which assists them further in ensuring that quality is being delivered to the people for having a natural life (Association, 2023). The external stakeholders of the MSF are international vocations through which the employees can subscribe to the values and principles formulated via MSF Charter. The regional associations were also created and these are not restricted to the single country instead the whole region is involved in this. Conclusion

From the above analysis it can be concluded that a business model canvas is an efficient tool that aids in the creation of understanding regarding the key components of the firm. It is determined that the business model of ResMed Inc emphasises on the development and sales of the software and medical devices for the respiratory disorders, and sleep apnea. It is liable for furnishing the subscription-based services to attain the data analysis and continuous monitoring of the operations. On the other hand, the Medecins Sans Frontieres model focuses on furnishing medical assistance in advocacy and crisis situations to deliver improvised healthcare practices and policies. They are dependent on the grants and funds to conduct their operations. Here, it is analysed that both the organisations are having unlike customer segments, and revenue streams but both these emphasise on furnishing high-quality healthcare services to their potential customers.

References

ANZ, R. (2023) About Us: Resmed Australia, ResMed. Available at: https://www.resmed.com.au/about-us (Accessed: 24 May 2023).

Farrell, M. (2019) ResMed Inc. - s2.q4cdn.com, s2.q4cdn. Available at: https://s2.q4cdn.com/231003812/files/doc_presentations/2019/ResMed_2019-JPM_vFINAL_01072019.pdf (Accessed: 24 May 2023).

Inc, R. (2004) Resmed Corporate Governance Guidelines, http://media.corporate-ir.net/. Available at: http://media.corporate-ir.net/media_files/IROL/70/70291/cg/corporategovernanceguidelinesss.pdf (Accessed: 24 May 2023).

Orgio Inc (2023) ResMed - org chart, teams, Culture & Jobs, THE ORG. Available at: https://theorg.com/org/resmed (Accessed: 24 May 2023).

Origins, R. (2007) Resmed origins, document.resmed.com. Available at: https://document.resmed.com/en-us/documents/articles/resmed-origins.pdf (Accessed: 24 May 2023).

Association, O. (2023) Governance in MSF, Www.msf.org. Available at: https://www.msf.org/sites/default/files/2022-06/msf-governance.pdf (Accessed: 24 May 2023).

Frontières, M.S. (1995) Who we are: MSF, Médecins Sans Frontières (MSF) International. Available at: https://www.msf.org/who-we-are (Accessed: 24 May 2023).

MSF (2022) About Us, Médecins Sans Frontières Australia | Doctors Without Borders. Available at: https://msf.org.au/about-us (Accessed: 24 May 2023).

MSF (2023) Homepage, Médecins Sans Frontières Australia | Doctors Without Borders. Available at: https://msf.org.au/ (Accessed: 24 May 2023).

MSF.Org (2022) International activity report 2021: MSF, Médecins Sans Frontières (MSF) International. Available at: https://www.msf.org/international-activity-report-2021 (Accessed: 24 May 2023).

MSF.Org (2023) MSF Ethics Review Board: MSF, Médecins Sans Frontières (MSF) International. Available at: https://www.msf.org/msf-ethics-review-board (Accessed: 24 May 2023).

Sibalija, J., Barrett, D., Subasri, M., Bitacola, L. and Kim, R.B., 2021. Understanding value in a healthcare setting: An application of the business model canvas. Methodological Innovations, 14(3), p.20597991211050477.

Vorbach, S., Müller, C. and Poandl, E., 2019. Co-creation of value proposition: stakeholders co-creating value propositions of goods and services. Co-Creation: Reshaping Business and Society in the Era of Bottom-up Economics, pp.51-62.

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