Introduction
In the nation, 387 million people actually have diabetes. In the year 2014, this data corresponds to one person in every 12 persons who have the disorder. 39 million individuals have the disorder in the US. The bulk of the highly impacted age demographic are all aged 40-60 years of age. In the next 15 years, the number of people in this age group with diabetes will grow by around 6 points.
My company project seeks to improve the capacity of the larger community to monitor their amount of blood glucose. The main cause of diabetes is blood glucose levels that are either too high or too poor. Through a hardware dongle connected to the device and an app to interpret data from the dongle, my business strategy would target smartphone consumers.
This business model will target the two smartphone manufacturers based on market share, Samsung and Apple. In the US where I focus primarily, shipments of the above smartphones represents about two-thirds of total market share. This is coupled with the high costs of traditional glucose measuring devices provides relevance for my business idea.
Key Partners
In the development of the business model, I have identified key partners that I will be working with. These partners are critical for the success of my business model. I will work with endocrinologists who treat diabetes. They will work from the Mayo Clinic Division of Endocrinology, Diabetes, Metabolism and nutrition research. I will also seek membership in the American Diabetes Association. My business model will also require 15 diabetes patients in different age groups on whom testing will be done. I will also team up with endocrinologists to survey patients. In the development of the app, I will target the two market leaders in terms of market share. Apple through the iOS developer program for Apple iOS app store and Samsung for the Android Marketplace.
I will also be working with MedSpark LLC that specialises in FDA submissions, medical coding and design development. Eventually though manufacturing will shift to Turkey to take advantage of low price points. The medical professional I am going to work with will mainly aid in trial conducting and together with the health organisations and the patients, they will help in product promotion. The smartphone manufacturers will offer legal guidelines in terms of copyrights and will actively take part in marketing.
Key Activities
The partners will have key activities that they will undertake to ensure the success of the model. They will validate the production of the app. They will also provide the necessary permission for entry into the respective app store marketplaces. I will also need the two smartphone manufacturers to publish the companion app in their App stores.
Through the market places, I will also receive feedback that will help in future improvements. The two-smartphone manufacturers will also aid in positive publicity through adverts, reviews in the play store and app store ratings. They will also offer distribution channels for the app. They will generate traffic to our website by redirecting customers.
The two companies will help to improve customer relationships. Data collected from app usage will help identify areas that need improvements. Availing the app to the public will also provide helpful health information. Through purchases of the hardware, which the smartphone companies will generate my business idea will generate revenue.
Through partnerships with Mayo Clinic and the American Diabetes Association, I will also be at a better position of receiving endorsements for my business models. Referrals will also be another advantage of the partnerships. Partnerships with the American Diabetes Association will significantly improve my business exposure through expos in the United States.
Most expensive activities that the partners will undertake in ensuring the success of my business will include Research and Development. In this case, they will make app and firmware updates, manufacturing, and smartphone maintenance. The business three iOS developers and an equal number of Android developers, a software designer and two network infrastructure administrators. The partners will also help in advertising that would have been expensive without partners and even aid in exposure through purchasing booths at the diabetes expo.
Key activities required for could also be broken down into value propositions including value proposition and seeking positive publicity. The partners will also offer distribution channels necessary for the app as well as links for the dongle purchase from our website. The partners will also help in feedback documentation and ultimately a source of revenue for my business model.
Key Resources
The success of my business model lays its basis on the valuable resources that the partners will offer. For example, the endocrinologists will act as advisors of the business model and help in conducting the trials.
Value ideas, sales networks, client partnerships and income streams can be categorised into the core tools that my business strategy would need from the key stakeholders. The first key partners are the smartphone manufacturers. For the success of the business idea, they will provide the smartphone on which the app will run as well as providing attachment for the dongle. The smartphones will also calculate the data from the dongle using algorithms, which the app will have to provide analysed information. They will also provide the needed distribution channels to deliver the app to the consumer.
The two-smartphone manufacturers will also offer a distribution channel for the app. Through their marketplaces and app stores, they will offer redirections for customers who require the dongle hardware.
They will also strengthen the customer relationships. The app stores and website redirects will provide an avenue for a more personal relationship with the customers. We will also get feedback on app quality and efficiency. Revenue streams will be a result the strengthened customer relationships.
Apple and Samsung will, offer the greatly needed app marketplace. They will also provide a means of product delivery. The patients who will receive the trials will provide personal experiences and testimonies integral to product validation.
Doctors and health organisations will conduct product reviews and product marketing, which will help to improve product awareness and do a little bit of marketing for my business model.
Development of apps is subject to many legal guidelines in terms of copyrights and patents. Therefore, the partners will offer the legal advice requisite. Samsung and Apple will offer brand association rights that are infringed on most of the times, provide marketing guidelines and best practices to follow in designing and publishing the apps. In summary, the key resources that the partners will provide to my business are customers and a cost relief in terms of hiring developers, supporting infrastructure and maintaining the smartphone application.
A result of these key resources that I will acquire I will be able to deliver value to the customer. The customer will now have a cheap and efficient method of measuring blood sugar. My business model will have provided a solution for the customer. For example, pricking fingers will no longer be necessary. Other key resources that I will acquire from collaborating will be development of customer relationships and provision of channels either for marketing be it from recommendations, the app store or other ways and a review of the channels for effectiveness.
Conclusion
As a result of my business idea, customers will now have a cheap alternative means of glucose monitoring by around $200 compared to $1000 before. My business idea estimates up to gross profit of up to $1 billion in terms of profit before taxes.
