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The SIMM Smartwatch and the Internet of Things: Designing a Business Model Case Solution & Answer

The SIMM Smartwatch and the Internet of Things: Designing a Business Model Case Solution

Threat of New Entrant

The industry is innovation oriented. There are modifications in technologies on daily basis.  The technological development also encourages high capital. Thus, this is not easy for a new entrant to compete in the industry. Hence, a threat of the new entrants is low.

 Internal Analysis

There are many users of wearable products in the sports industry, and the healthcare industry. Moreover, there are early adopters of the technology. The company is thus, benefitting from the demand of consumers. SIMM thus, will be able to get a profit from its manufacturing. Healthcare industry has value chain of doctors, hospitals, regulators, and insurance companies. However, investment in the supply chain is not easy for SIMM. From suppliers to the customers it includes many activities. For example, selling costs and lead times. Furthermore, the wristwatch requires separate customization for each customer. In addition, their narrow verticals have focused on hardware industries that produce fragmented industry.

External Analysis

There is possibility for SIMM to convert this weakness into opportunity. It can improve practices of supply chain by investing heavily and focusing on low-cost purchase. Vertical integration is also a good option for SIMM in order to get better with its efficiencies. The competitor of SIMM, Nile has focused towards its core product, shoes. Hence, SIMM has a clear way to initiate and penetrate in the wearable product market. There is the threat from declining of the sales of SIMM due to its inefficiency in the supply chain. Moreover, its marketing strategies and business model are also hurdles to the success.

VRIO Analysis

SIMM has proficiency of technological development, and it has been a pioneer of the modification of wristwatch. Moreover, it has the capability of research and development with which it has progressed. Hence, it has the advantage of research and investment in research can provide benefit in future. Moreover, the company has the benefit of first move too. However, it can utilize its research and development in its activities as well, for example in supply chain and marketing.

Recommendation

SIMM has invested in technological advancement of a wrist watch. It has developed a partnership with the Foxconn. However, the marketing strategy of the company is weak. Hence, bringing integration to the marketing can raise the sales of the company. Moreover, the company can focus on its supply chain activities. There is the need for developing vertical integration with which issue of lead-time can be resolved and the customization of the watch will become easy. SIMM also has the option of improvement in its business model. The business model of the SIMM needs to be revised by executives. Business model will provide insight into the cost and revenue of SIMM. Thus, it will be beneficial to increase sales………………

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