Read the Wildfang case and download both the case and the spreadsheet. This is an Excel-based assignment illustrating how firm business model can be links to the financial implications of business model design using lifetime value modeling techniques.
Complete the spreadsheet and answer the questions on the left nav bar. Total word count for the assignment must not be less than 1500. Be sure to link case to course concepts in Schilling.
1.
Develop a Business Model Canvas for Wildfang’s current operation. See
https://strategyzer.com/canvas/business-model-canvas?url=canvas/bmc
for an overview and canvas download.
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3.
What are the functional, emotional and social needs of WF’s customers?
4. Functional? What does that mean
5. P. 7 – emotional and social
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7.
Is the Wildfang brand riding a short term fad or does its tomboy positioning have staying power?
8. Aspirational brand for growing community…moderated through social media, retail store experience, customer insight. Celebrity role models.
9. See p. 8 for segments
10. Fashion engaged online, offline, core loyalists, WF Exclusives who spend the most money
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12.
Has Wildfang developed a core competency?
Apply the framework developed by Prahalad and Hamel (1990) and discuss the resources and processes in the business model canvas that underlie core competency development.
13. A core competency has to contribute disproportionately to value creation?
14. Must provide abasis for new market entry
15. Must be inimitable
16.
17.
18. Does Wildfang’s ability to create and maintain a community through social media do all this? YES!
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20.
Create a summary table comparing the two business model designs under consideration.
BUSINESS CANVAS MODULE
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CURRENT E-COMMERCE MODEL
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PRIVATE LABEL B&C
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MULTISIDED FASHION PLATFORM
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VALUE POSPOSITION
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CUSTOMER SEGMENT
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Core Loyalists
WF Exclusives
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Fashion Engaged Walk-ins
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Fashion Engaged online
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CUSTOMER RELATIONSHIP
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Current spending
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Current average Order Value + Retention
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Heightened online Average Order Value
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CUSTOMER ACQUISITION CHANNELS
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Viral influencer marketing and retail walk in
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Retail walk-in
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Search engine
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21.
22.
Using the supplemental Excel input worksheet, estimate a blended CLV for a simulated portfolio of 10,000 shoppers. The assumptions used to populate the input worksheet are provided in the case narrative.
23.
Read the case! Assumptions can be found in customer segment narrative plus
Table IM.1 Private label B&C
Table IM.2 Multisided Fashion Platform
24.
25.
Combine the CLV analysis with the results of the previous business model canvas analysis to identify the riskiest assumptions associated with each growth model. Prioritize these risks in terms of the significance of impact on scaling the Wildfang business.
Big one: That WF will appeal to mainstream Fashion Engaged
26.
27.
Provide the final recommendation for Wildfang’s national expansion. Explain the reasoning.
Give me the pros and cons
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