Mouth and Product Quality Disagreement †MyAssignmenthelp.com

Question: Discuss about the Mouth and Product Quality Disagreement. Answer: Introduction Sustainability is the key factor for gaining competitive advantages for the contemporary business organizations. This is more applicable for the startup organizations. They are introducing sustainable business approaches in order to have differentiated effect in the market. In addition, in the current market scenario, the more sustainable will be the business operation of the organizations, the more will be the competitiveness of them in the market (Joyce Paquin, 2016). In the recent time, there is a boom being witnessed in the growth of the startup organizations in different business sectors. One of the major business sectors impacted by the new business approaches is the agricultural and farming sector. The traditional way of farming is getting changed with the inflow of the new sustainable technologies. Pure Ponics is one of the leading startup organizations based in Australia. They are leading in initiating new and sustainable way of farming and agriculture. Their approach to the innovation and sustainability is helping them to create distinctive image in the market. This report will discuss about the business model followed by Pure Ponics in initiating sustainable farming. Furthermore, the critical success factors and the issues faced by them in their daily operations will also be discussed in this report. Pure Ponics is based in Victoria, Australia and founded a few years ago. They are mainly in the farming and agriculture sector. However, their approach to the agricultural practices is their source of gaining competitive advantages. This is due to the fact that Pure Ponics follows the aquaponics approach farming (www.pureponics.com.au, 2018). This refers to the sustainable use of the water for both fish and vegetables productions. In addition, they offer organic vegetables without the use of any chemicals or other artificial substances. This allows them to provide fresh and natural vegetables to the customers. Thus, their approach of aquaponics is changing the existing trend of agriculture and creating disruption in the food market. Currently, they are only having their operations in the Australian market and supply their products in small quantities in the Australian market only. Business canvas model of Pure Ponics The nine building blocks of business canvas model of Pure Ponics are having some major relationship between them. The major relationship being identified is between the key partners of Pure Ponics and their revenue stream (Chikoto Neely, 2014). It is identified from the above business canvas model that major revenues are being generated for Pure Ponics is through their key partners. It is identified that the key partners of them are the retail stores, through which they sell their products. On the other hand, these retail stores are helping them to generate major portion of the revenue. Another relationship is identified between the value proposition of Pure Ponics and key activities of them. It is evaluated that the key activities of Pure Ponics are the research and development of organic vegetables and fishes (Bocken et al., 2013). This helps them to enhance their value proposition in the market by offering more diverse organic vegetables. The more updated will be the technology; the more productive will be the farming process of Pure Ponics. Determination of the critical success factors Entering in different markets other than the existing market of Pure Ponics in Victoria will help them to cater to more number of customers. Currently, the market and business opportunities along with the brand value of Pure Ponics are limited only in the Victorian market (Laufs Schwens, 2014). Thus, entering in different markets will help them to reduce their business risk generating from one sector. This will also help in having more sales volume, which will in turn increase the revenue for them. Online mediums are widely used in the present time by large section of the population. Thus, having online marketplace for Pure Ponics will help in targeting more customers effectively. It will also enable them to cater to the regions where currently they are not having their presence (Nagle Riedl, 2014). It will increase the target customer segments for them along with increase in the sales volume. The area of farming should also be increased by them in order to maximize the production. It will enable them to attain the economies of scales by having mass production process (Drew, Kortt Dollery, 2014). Thus, the average cost of production will get lowered with the initiation of the larger area of farming. Determination of the downside risks Market still limited for Pure Ponics due to the fact that premium pricing of their products is restricting the larger portion of the market to buy them. This is also restricting their market enhancements and exposure. Furthermore, offering of more affordable organic vegetables by other players will reduce the market for Pure Ponics (Gottschalk Leistner, 2013). Environmental issues such as global warming will have negative impact in the future (Wheeler Von Braun, 2013). Change in the environment will reduce the productivity of the farming activities and may also change the nutritional value of the vegetables. Huge cost is involved in organic and aquaponics farming. This cost will further get increased in the future. The more will be the cost, the less will be the profitability for them (dos Santos, 2016). However, price of the vegetable cannot be increased due to the fact that they are already selling at a premium cost. I will if given the role of leadership in this organization first change the retailing process from the existing business model. The target premium customer segments are having access to the online mediums. On the other hand, they may not be comfortable in going the offline stores for shopping. Thus, I will concentrate more on the initiating the online marketplace for selling of the organic vegetables and fishes. Another change that will be initiated by me is the training of the farmers regarding the concept of aquaponics (Harrison et al., 2013). This will equip the farmers and will reduce the dependency on the skilled employees. This will also save a huge amount of money for the organization. I will also initiate the customer awareness activities in apart from customer service. This will help in creating awareness among the customers regarding organic foods and will increase the sales volume. Conclusion Thus, this report concludes that the sustainable approach of farming activities initiated by Pure Ponics is helping them to create distinctive image in the market. This is helping them to offer fresh, organic and natural vegetables to the customers. However, this report identified some risks for them and also discussed some critical success factors. These factors will help in gaining competitive advantages for them. The identified risks should be effectively mitigated in order to enhance the potentiality of their business. A few changes are also discussed, which can be done over the existing business model of Pure Ponics. Reference Bocken, N., Short, S., Rana, P., Evans, S. (2013). A value mapping tool for sustainable business modelling.Corporate Governance,13(5), 482-497. Chikoto, G. L., Neely, D. G. (2014). Building nonprofit financial capacity: The impact of revenue concentration and overhead costs.Nonprofit and Voluntary Sector Quarterly,43(3), 570-588. dos Santos, M. J. P. L. (2016). Smart cities and urban areasAquaponics as innovative urban agriculture.Urban forestry urban greening,20, 402-406. Drew, J., Kortt, M. A., Dollery, B. (2014). Economies of scale and local government expenditure: evidence from Australia.Administration Society,46(6), 632-653. Gottschalk, I., Leistner, T. (2013). Consumer reactions to the availability of organic food in discount supermarkets.International Journal of Consumer Studies,37(2), 136-142. Harrison, J. A., Gaskin, J. W., Harrison, M. A., Cannon, J. L., Boyer, R. R., Zehnder, G. W. (2013). Survey of food safety practices on small to medium-sized farms and in farmers markets.Journal of food protection,76(11), 1989-1993. Joyce, A., Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models.Journal of Cleaner Production,135, 1474-1486. Laufs, K., Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda.International Business Review,23(6), 1109-1126. Nagle, F., Riedl, C. (2014, January). Online word of mouth and product quality disagreement. In Academy of Management Proceedings(Vol. 2014, No. 1, p. 15681). Academy of Management. Wheeler, T., Von Braun, J. (2013). Climate change impacts on global food security.Science,341(6145), 508-513. www.pureponics.com.au. (2018).Pure Ponics Commercial Aquaponics. Retrieved 27 March 2018, from https://www.pureponics.com.au/