Business Models and Innovation Initiatives of the B&B

According to Osterwalder and Pigneur a business model „describes the rationale of how an organization creates, delivers and captures value”. It is a model to show how an organization is run, and what the elements of the companies are. Osterwalders Business Models shows how a Business Model with its elements could look like. These elements consist of the customer segment, value proposition, channels, customer relationship, revenue streams, key resources, key activities and key partners. Since Christopher and Lisbeth already showed us their suggestions of how their business should look like, I would like to go a little bit more into detail while focusing on the customer segment and their value proposition.

Customer Segment

The main target group of the Ruggård Hay Hotel are the horse-back riders, in particular the Icelandic-horse riders who bring their own horses. Christopher and Lisbeth would like to open a B&B mainly for this customer segment, because they have space for the horses and most importantly, love spending time with their own horses and want to come into contact with people that also share the same interest. Hence, not only the family does create value for their guests, the family also benefits from the B&B, because they focus on what they love to do and thus enjoy their work. Another point is that they want to share that knowledge of Icelandic horses. Therefore, future guests can be confident that the family takes good care of their horses and even if something unusual happens, they know how to handle it. Furthermore, Christopher and Lisbeth also hope that they can learn from their guest´s experiences and since they wish to have close contact to their guests they hope to make new (international) friends. Due to that close relationship and the network behind it, it is possible that the B&B will become well known by the Icelandic horse riders as once it is called into life it can be promoted by word of mouth.

Another important target group are the mountainbikers. As the family does not have that much in common with this target group, they can “only” offer accommodation and the trails for them. The relationship between them will never be that close as the family wishes for the Icelandic horse riders but it is still a target group for the B&B.

There are some more target groups Christopher and Lisbeth thought of like fisher, families who want to spend their holidays in Denmark and also want to go to Legoland, as well as hikers that pass the surrounding area, but I would suggest, that they mainly focus on the Icelandic horse riders as they know what their needs are and where to reach them.

 

Value Proposition

First of all, value is created through their offers. This includes the accommodation, breakfast, stables for the horses, trails and the folding for the horses on the trails, as well as guided riding tours, and activities like picnics and bonfires which they could also provide individually. People who go there like spending time in nature and this is what the B&B can offer- the beautiful Aadal Vejle area. This is also the main value as everything around that develops from the idea of spending time outside. While spending time in the nature, the guests will calm down, relax and maybe also rethink their own lives. They get out of their daily life as well as out of the town where everything is noisy and stinky and where everyone is stressed. In addition to these values the guests also have the chance to enjoy the landscape and to spend time with their horses. They have the possibility to see something different. They spend time with their family or friends, depending on with whom they are travelling, but also with Christopher and Lisbeth and I assume that these people are as interested as them to get to know people who share the same passion.

 

Innovative initiatives

I would like to talk about the innovation initiatives on the basis of the attractor based innovation model. This model consists of five components: the actractor, attraction, scene, scene-maker and the scene taker. Regarding the Ruggård Hay Hotel, there a several possibilities to apply this model. In class, we already talked about it and thought of the landscape as a possible attractor, thus the attractions are the guided horse riding tours. Christopher and Lisbeth came up with the idea (scene makers) and want to implement it so that they are also responsible for maintaining it as scence-takers. But there are other ideas I could think of. Another attraction could also be an event following the motto of “A day with an Icelandic horse”. The actractors are all activities that have something to do with the Icelandic horse, whereas the attraction here is of course the Icelandic horse. The scene is the farm of Christopher and Lisbeth but could also include the area around it. Scene maker and scene taker are again Christopher and Lisbeth. This event could also attract other horseback riders that do not have anything to do with this breed but want to get an impression as well as all other people that are interested.

Another innovation could also focus on the landscape as an actractor. The attraction could be a treasure hunt in different groups and by bike or horse. The scene would be the Vejle Aadal Area and the scene makers are Christopher and Lisbeth. Depending on who else joins Christopher and Lisbeth to organize and maintain the event, the scene taker could be the shop or the nature school, too. I think that such a network is a good innovation for the Ruggård Hay Hotel and the family should think of whether they want to cooperate with them or not. The advantages would be that they are not entirely on their own and that they can offer their guests little extras for example discounts at the Bindeballe Købmandsgård.

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