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Case Study Solution | Case Study Help | Case Study Analysis
IntroductionThe report is all about the Case Study Solution, which is an emerging business model considered by Case Study Help and Redden, two electrical engineers. The report contains an analysis of the value proposition of the new business for the farmers along with an evaluation of the two business models considered by the company. It also provides an analysis of the financing alternatives considered by the new business and provides recommendations on the baiss of the analysis.
Critical AnalysisThe business model created by by Case Study Help and Redden would have a high value proposition for the Lettuce farmers and could be stretched towards other crop farmers as well. The value proposition of the business is in terms of generating high crop yields i.e. 5% to 20% than a typical crop yield of 0.1% to 2% only. As, human thinners do not provide optimal selection with no individual culling decisions, the automated thinning process could provide quality thinning process, which directly would increase the crop yield and the substantial revenues.
Moreover, the automated thinning process, with a labour shortage in the industry could provide saving of extensive labour costs and reduce the risks of labour shortages during the harvesting season. Moreover, the automated thinning process could create value for its customers by reducing the time taken by the thinning process and increasing the number of times of Lettuce plantation during a year. The thinning process could be made 20 times faster by using the automated machines for the process. It would provide both cost and revenue benefits to the farmers with increased percentage of crop yield per acre and reduced labour costs.
Although, there is another competitor in the market i.e. Hans borough Field Services (HFS) that could capture the target market of Case Study Solution, but, the advanced functionality of the Case Study Solution machines with its long expanding vision would enable the company to differentiate itself in the long run.
Two different business models are being considered by Case Study Analysis and Redden i.e. Service and Equipment business model to generate the potential revenues. Although, both of the modules would bring potential revenues, but, the revenues generated by the equipment model would be uneven due to the one time purchase of equipment in 3 to 5 years. However, service model would provide lesser but evenly spreaded revenues for a particular item period.
Moreover, the number of equipment dealers, which could sell the Case Study Solution equipment to farmers, are not enough to conduct the sale of the Case Studies equipment at a large scale. On the other hand, the marketing for the service model could be conducted through the retailers, to whom the farmers visit frequently, and by those equipment manufacturers. Moreover, under the equipment model, the company would not have any responsibility related to the crop yield that could result in reduced satisfaction of the farmer form the equipment of he would not be able to operate the equipment efficiently. However, farmers prefer purchasing equipment rather than renting services for various harvesting processes. Case Study Solution may find it difficult to convince the farmers to apply an annual fee for a particular harvesting activity through an unknown technology.
One of the major financing alternatives for the company is the Khosla Ventures (KV). Another financing alternative for the business could be the acquisition of debt. Case Study Solution could also consider to raise the required fluids by issuing stocks in the market. However, the most desirable financing alternative as considered by Case Study Solution is the acquisition of funds through KV. Although, KV has set up various conditions that must be fulfilled to acquire the desired funds, but, the partnership with KV could bring numerous considerations for the nascent organization. KV along with its global market reputation could build the image of the nascent business in the market and could attract new potential investors in future. Moreover, KV could assist the new business in its all other strategic decisions including human resource management, operational management etc. Through the investment of KV in the new business, Case Study Solution could stretch its business towards potential global markets i. e. The US organic markets. Overall, in order to raise the required funds for the implementation of new business, Case Study Solution must consider a financing option, and KV with its technical expertise along with the strong international reputation could bring various considerations along with the funds.
In order to achieve success in the automated agriculture business, Case Study Help must decide the right time to enter in the row crop and the organic US markets. It first should start from providing Lettuce thinning services as the lettuce is an all season crop with the highest revenue per acre as compared to other crops. Moreover, due to the concentrated plantation of lettuce towards Salinas Valley, it could be easy to target most of the potential Lettuce farmers in the US. Therefore, Case Study Help should start with the row crop markets, and then it should utilize the excess funds and profits to kove towards the organic crop markets in the US.