Business models are an important tool to explain how the Kjaer family can “do business” and to explain how value is created, not just how it is captured. To establish their tourism product/service successfully it is important to understand the needs of their target customers and to develop a specific service for them that creates at the end a value for the tourist, for that they are willing to pay.

 

The service of the Kjaer family is not only to give their guests an accommodation, where they can sleep…their service should also be the creation of a holiday experience ,they will never forget. Important to mention here is the point, that not only the Kjaer family is responsible for the value creation, the target customers are also co-producers and not only consumers and determine the individual value of the end-service-product.

In the last years a lot of business models were developed to analyze and push the effectiveness and efficiency of business.  Osterwalder studied the components of a various models and identified 9 blocks:

1 Product:

-Value Proposition: Gives an overall view of a company’s bundle of products and services. (As mentioned before, the service is not only the accommodation, it includes also the discovery of the nature, guided tours, experiences with the Kjaer family, riding trails (with the own horse)…

2 Customer Interface:

-Target Customer: Describes the segments of customers a company wants to offer value to. (I think the family should here expand they target group “islandic horse riders” by “other horse riders”)

-Distribution Channel: Describes the various means of the company to get in touch with its customers. ( own webside, Icelandic horse association (maybe other horse associations), friends, local facilities/ firms (links on their websides, flyer), general horse-events/tournaments (flyer,poster), facebook..)

-Relationship: Explains the kind of links a company establishes between itself and its different customer segments. (Personal contact during the stay of the tourists (breakfast, tours, barbecue events, mailcontact after the customers visit, or over a blog on their websideà friendship)

3 Infrastructure Management:

-Value Configuration: Describes the arrangement of activities and resources (mix of nature experiences, new experience with the own horse, Danish culture experience, fun, restà resources are the landscape, the farm and the power & character of the kjaers)

-Core Competency: Outlines the competencies necessary to execute the company’s business model. ( Accomodation and organization of tours with expert knowledge about Icelandic horses and Danish culture)

-Partner Network: Portrays the network of cooperative agreements with other companies necessary to efficiently offer and commercialize value. ( partners could be the Bindeballe Købmandsgård and the Bindeballe Station)

4 Financial Aspects:

-Cost Structure: Sums up the monetary consequences of the means employed in the business model. (Investments are the furniture of the apartments, expansion/development of the stable)

-Revenue Model: Describes the way a company makes money through a variety of revenue flows. . (Revenues from the renting of the accommodation, tours/events, breakfast..)

 

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