Critical Discussion On Fitchild Business Model

Question

Task: The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.

Answer

1. Problem identification –

Problem considered to prepare this FitChild business model signifies that obesity in children is a worldwide problem and it is posed to affect the future as it strives to gain abnormal weight above their normal weight and height among the children and adolescents. The aspects of obesity especially among the children are shaping up as a big trouble considering the range of diseases that the obese people are exposed to like high blood pressure, diabetes and cholesterol. Besides, the physical issues obese people also undergo depressive state and lower self-esteem. The World Health Organisation (WHO) estimates that the figure of overweight children augmented from 32 million in the 1990s to 41 million in 2016 universally (World Health Organization, 2019). At the current scenario, 18.5% of the children and adolescents are obese and as the child grows the tendency and probability to put on weight increases. The main reasons for obesity considered in the FitChild business model could be attributed to poor diet, sedentary lifestyle, genetic disorders, psychological and socio-economic factors.

The matter needs to be addressed at once and so a mobile application would be designed to resolve the obesity crisis among the children and adolescents. The mobile application of ‘FitChild’ would be conceptualised to provide customised solution for the subscribers to fight the menace of obesity.

2. Benefits derived from the solution –

The mobile application of ‘FitChild’ is exclusively for those suffering from obesity. The mobile app would be suitable for the subscribers because it would have customised plan to balance the calories among the affected children. It strives to control the body weight of the children by means of controlling their urge for unhealthy food habits and physical activities (cdc.gov, 2020). There would be a specified diet plan for the affected children like seasonal fruits and vegetables, low-fat dairy products, whole-grain foods, fish, poultry, lentils and beans. The diet plan would be designed in such a manner that the children would have a full meal and not leave them hungry. ‘FitChild’ would also come up with innovative dishes which are easy to prepare at home, contains lower fat and sugar of 100 calories or even a smaller amount. This sort of innovative dish would be tasty to satisfy the taste bud of the kids diverting their attention off unhealthy dishes like pizza and fried items (Davis, Wojcik, & DeWaele, 2016).

3. Proposed FitChild business model –

The FitChild business model would be discussed on the light of the Business Model Canvas. The business model canvas is a strategic management template suitable for the start-up businesses to develop its FitChild business model (Osterwalder & Pigneur, 2010). It is done by delivering a visual chart to have clarity on the product and services offered by the organisation. 

The mobile application of ‘FitChild’ would be designed to serve the physical and mental health requirement of the obese children and adolescents. The mobile app would be free at the initial stage and after a few beginning sessions a discounted package would be offered to the subscribers, though the free session would continue as usual. The continuation of the free lessons is the decision of its innovator, Jon Black who has vivid experience in computer networking owing to his humble engineering background. It is his belief that while going through those free lessons, the inquisitiveness of the targeted population – the children along with their parents would increase (Teece, 2010). The phenomenon would urge them to subscribe the discounted pack of ‘FitChild’.

The mobile application of ‘FitChild’ could be installed in the Android enabled smartphones and Apple iPhone. There would be provision to access the service online through laptops and desktops but this service would be limited to the subscribers only. Jon, founder of this start-up would take help of digital and social media to promote the mobile application. There would also be traditional marketing tactics like approaching the schools to raise an awareness on the issue would be initiated (Khanna & Palepu, 2010).

4. Can you identify the key interrelationship in the FitChild business model?

The FitChild business model Canvas is categorised into four broad segments – infrastructure, offerings, customers and finances which could be further segregated in the following manner:

Infrastructure:

• Key activities – It is a significant proposition for ‘FitChild’ to execute its value proposition. The entrepreneur, Jon Black would be in-charge of maintaining the networking activities to continue with the feed of facts and information uninterruptedly to the targeted mass.
• Key resources – This segment of FitChild business model signifies that a two-member research team would be constituted to prepare the content for the website as well as research and innovating sorts of healthy dishes and fun sessions (Shannon & Sebastian, 2018). The phenomenon would be useful to keep the kids engage and have their stomach full with good food habits.
• Partner network – ‘FitChild’ would engage in exclusive trade negotiations with the network suppliers and digital media to promote its content and reach out to a larger segment of customers (Forsgren & Byström, 2018). The schools and clubs could be approached to raise awareness for obesity among children facilitating direct interaction with the children and their parents.

Offerings:

• Value proposition – The mobile application of ‘FitChild’ would be beneficial to the targeted customers in providing suggestion to stay fit, have a healthy diet and look for an active lifestyle for the obese children. This segment of FitChild business model illustrates that the mobile app would be initially offered free but after sometime to be available at a discounted price to make it affordable for a greater se gent of customers (Steiner, Lan, Unterschultz, & Boxall, 2017).

Customers:

• Customer segment – ‘FitChild’ would be targeting the segmented market of those who have small and adolescent children suffering from obesity.
• Channels – This block of FitChild business model mentions that the digital and social media would be used exclusively for getting due attention of the targeted segment in a cost-effective manner. Gradually, ‘FitChild’ would strive for corporate partnership and the schools and social clubs are chosen for this purpose (Khanna & Palepu, 2010).
• Customer relationship – Black would be in-charge of customer relationship and interacting with the customers through the in-built chat in the mobile app (Mazza & Palermo, 2018). He would take care of the matter as he is the brainchild of the in ovation and able to resolve the matter effectively.

Finances:

• Cost structure – ‘FitChild’ would be a cost-driven business model striving to reduce the sorts of costs and provide immense value to the customers (Khanna & Palepu, 2010).
• Revenue stream – Initially, subscription fees from the customers would be its primary source and gradually it would look for advertising as an alternative revenue stream (Osterwalder & Pigneur, 2010).

5. Critical success factors –

The success factor mentioned in this case of FitChild business model would be the intent of the company itself to resolve the obesity crisis among the small and adolescent children. There would be continuous updating of the dishes presented in the app along with new play and fun sessions weekly to get the kids attached to it and involve in physical activities. The contents would be designed in such a manner that it would motivate the kids to give up their sedentary lifestyle and be physically active (Knight, Adkison, & Kovach, 2010). The new dishes would enable the children to have physical strength along with mental benefits in gaining confidence and uplifting the self-esteem of the affected children.

‘FitChild’ mobile application would also have exercises scheduled for each day to make the kids active. There would be a range of exercise like dancing, jumping, and soccer, walking and playing tag among others to choose from (Knight, Adkison, & Kovach, 2010). This would be to encourage the children and adolescents to give up their sedentary lifestyle and introduce innovative playing and fun sessions. It would tend the targeted population to give up their habit of surfing websites, playing video games or watching televisions for a longer period.

6. Critical risks and assumptions –

 The mobile app ‘FitChild’ would take some time to have its own market but for that time being, it would be quite difficult for the entrepreneur to sustain the market as the market is volatile in nature.

But the owner assumes that element of children obesity is not supposed to vanish overnight, those kids need assistance and ‘FitChild’ would fill the void.

7. Evaluation of overall feasibility of the idea –

The overall assessment on FitChild business model shows that the product concept is quite unique as it is supposed to provide a unique solution to the targeted customers. The mobile application segment is an emerging one and so ‘FitChild’ with its unique concept is bound to perform. Obesity amongst the children is a sensitive factor and the parents would definitely buy the concept of the app. Considering the FitChild business model, it can be stated that the technical background and experience of the founder, Jon Black would be suitable for an efficient operation. But funding could be an issue, the performance and content of the mobile app would speak for itself and in this way it would be able to attain the break-even point within a short period, say two years.

(Refer to Appendix)

References
cdc.gov. (2020, February 04). Tips for Parents – Ideas to Help Children Maintain a Healthy. Retrieved from Centers for Disease Control and Prevention: https://www.cdc.gov/healthyweight/children/index.html

Davis, K., Wojcik, J., & DeWaele, C. (2016). A comparison of the fitness, obesity, and physical activity levels of high school physical education students across race and gender. FitChild business model The Physical Educator, 73(1), 15-31.

Forsgren, E., & Byström, K. (2018). Multiple social media in the workplace: Contradictions and congruencies. Information Systems Journal, 28(3), 442-464.

Khanna, T., & Palepu, K. (2010). Winning in Emerging Markets: A Road Map for Strategy and Execution. Boston: Harvard Business Press.

Knight, M., Adkison, L., & Kovach, J. (2010). A comparison of multisensory and traditional interventions on inpatient psychiatry and geriatric neuropsychiatry units. Journal of Psychosocial Nursing & Mental Health Services, 24-31.

Mazza, B., & Palermo, A. (2018). Social media content for business and user engagement on Facebook. ESSACHESS-Journal for Communication Studies, 11(1), 49-73.

Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. New Jersey: John Wiley & Sons, Inc.

Shannon, E., & Sebastian, A. (2018). Developing health leadership with Health LEADS Australia. Leadership in Health Services, 31(4), 413-425.

Steiner, B., Lan, K., Unterschultz, J., & Boxall, P. (2017). Applying the resource-based view to alliance formation in specialized supply chains. Journal of Strategy and Management, 10(3), 262-292.

Teece, D. (2010). ‘Business Models, Business Strategy and Innovation’. FitChild business model Long Range Planning, April-June, 43(2-3), 172-194.

World Health Organization. (2019, September 23). Facts and figures on childhood obesity. Retrieved from World Health Organization: https://www.who.int/end-childhood-obesity/facts/en/

Appendix:

Figure 1: Business model canvas

Evaluation of overall feasibility of the idea