Gumbe for his unwavering patience in working with me throughout the course of this research project. Finally, I would like to express my countless thanks to all those who have helped in the successful completion of this research.
- Introduction
- Background to the study
- Statement of the Problem
- Research Objectives
- Research Questions
- Research Justification
- Significance of the Study
- Dissertation Outline
- Chapter Conclusion
Shortages of foreign exchange and devaluation of the local currency have hit the economy since 2017. The chapter provides an overview of CellMed and environmental analysis related to CellMed's operations.
- Introduction
- Defining a Business Model
- Importance of business models
- Limiting factors to coming up with or imitating business models
- Theoretical framework
- Industrial Organization theory (IO)
- Resource based view theory (RBV)
- Dynamic capabilities framework
- Typical business models
- STOF Model by Bowman, De Vos, and Haaker (2008)
- The Functions Model by Chesbrough and Rosenbloom (2002)
- Canvas Business model
- Empirical evidence
- Research gap
- Chapter Summary
Therefore, it can be argued that there are some similarities in the business model approach with IO theoretical frameworks, i.e. the 5 forces framework and value chain analysis (Porter, 1985). Therefore, we can see that the business model is a modified tactic of a resource-based view that tries to create a competitive advantage.
- Introduction
- Research Philosophy
- Research approach
- Research Design
- Mixed methods research design
- Target population
- Sample and sample size
- Sampling procedures
- Types of Data
- Primary Data
- Secondary Data
- Research Instruments
- Questionnaires
- Interviews
- Justification for using both questionnaires and interviews
- Types of questions
- Closed ended
- Open ended
- Likert scale
- Data validity and reliability
- Validity
- Reliability
- Data analysis and presentation
- Ethical Issues
- Summary
Mixed method research design adopted by the researcher enabled the researcher to use fewer instruments as some of the instruments could collect both qualitative data and quantitative data that would otherwise be analyzed. The purpose of secondary data is to help the researcher get an initial overview of the research problem. This was done to compare the business models by other companies in and outside Zimbabwe. The secondary data collected was of higher quality so that conclusions could be drawn easily as the journals show a clear understanding of what business models are.
The disposition given by the respondents could also help the researcher to draw conclusions about the validity of the information given by the respondents. Instead, the respondent will have to answer the questions in his own words (ibid). The data mainly produced by such questions is qualitative data (Sousa et al., 2011). This allowed the researcher to better understand the real meaning and feelings of the respondents regarding an issue.
The researcher used IBM's SPSS package to analyze quantitative data from this research. The researcher used graphic presentation because these made it easier to summarize and communicate the meaning of data. A clear explanation and the essence of the study to the respondents was made with the assurance that the data would be handled professionally and that their identities would not be revealed.
- Introduction
- Response rate
- Background information of respondents
- Gender
- Educational qualifications of respondents
- Working experience with CellMed
- Business model being employed by CellMed
- Evaluation of CellMed’s business model
- Customer segments
- Customer relationships
- Distribution channels
- Revenue streams
- Key resources
- Key capabilities
- Cost structures
- Effect of business model on market share and revenues
- Discussion of findings
- Business model being used by CellMed
- Evaluation of CellMed Business model
- Effect of CellMed business model on market share and revenue growth
- Chapter summary
The results presented in Table 4.3 above show that most workers definitely had at least certificates. 5.6% of respondents agreed that CellMed's market was diverse, while 77.8% of respondents disagreed and the rest 16.7%. When it comes to external product distribution, 44.4% of respondents rated the company's current efforts as very weak, while 33.3% rated it as weak and the remaining 22.2% were neutral (rating it as average).
The results showed that outsourcing is generally seen as very poor as none of the respondents rated it as good. The results showed that overall, respondents did not agree that CellMed's current business model is increasing the company's market share. The following questions are asked about the effect of CellMed's business model.
What has been the effect of the current business model used by CellMed on CellMed's revenue generation ability. The first respondent said that “the current business model includes important aspects of the business, such as revenues and costs. This culminated in a result that CellMed is currently failing to implement components of the business model it adopted.
Introduction
The data analysis was carried out in connection with the research objective and the research instruments used. The following chapter presents a summary of the research, conclusions to the research objectives and recommendations to various stakeholders based on the results of this research.
Summary of Findings
- Objective 1- To identify the business model currently being used by CellMed and its
- Objective 2 - To critically evaluate the current business model being used by CellMed
- Effect of the business model on market share and revenue
The first objective was to identify the business model currently used by CellMed and its defining components. This objective was considered to have been successfully achieved as the data collected allowed the researcher to understand the current business model components of CellMed. The second objective sought to critically evaluate the current business model used by CellMed to meet company and customer expectations.
On the customer segment component, the study found that CellMed practices mass marketing and is not diversified. The study found that the company does not use advertising to generate revenue as the company is not diversified. Regarding CellMed's ability or readiness to seize or leverage its key resources, the study found that the company is not ready to leverage its innovation and learning resources.
Analysis of data from non-managerial employees indicated that currently CellMed's business model is weak in increasing the company's market share (as overall, 42.6% of respondents disagreed and 28.7% of respondents agreed). CellMed's business model is also somewhat weak in generating incremental revenue for the company (as 43.4% disagreed and only 40.7% agreed). The results from the interviewed managers also showed that the current business model is somewhat weak in generating revenue and market share for the company, with the main reason being that the model is not written down and not communicated to everyone.
Conclusions
- To identify the business model currently being used by CellMed and its defining
For key resources, the study found that CellMed is ready to exploit all other resources except employee knowledge and management quality, as these resources had mean values below 2.5 when the VRIO scoring technique was used. Based on this objective it was concluded that CellMed Insurance uses a business model that approximates or resembles the Canvas business model, with key elements of customer segments, key sources of customer relationships, revenue streams, cost structures, distribution channels, key activities, key processes, value propositions and key stakeholders. In terms of distribution channels, the company currently mainly used salespeople and its own offices.
CellMed does not generate income from the rental of properties and does not use advertising to generate. The conclusion about cost structures is that CellMed spends more on costs than on investments. It is also concluded that CellMed is ready to exploit all other resources except the workers' knowledge and management quality.
The study also concluded that innovation is an owned resource and that company culture and innovation are not easy for competitors to imitate. The study also concluded that company is not ready to exploit its innovation resources and learning resource. Currently, the company's business model is also weak in generating revenue and growing market share for CellMed.
Recommendations
- Recommendations to Managers
- Recommendation policy and practice
Management is recommended to consider gathering consumer views on new branding before and after the rebranding exercise to ensure that the new elements present the image the company wants to project. New visual identity creates new image associations by projecting the company's distinctiveness through the marketing communication mix. The organizations should clearly communicate rebranded elements and what they represent in their marketing communication activities and the company should consider involving all stakeholders when rebranding.
We also recommend that CellMed writes down its business model and communicates it to all employees of the company, so that these aspects are integrated into the corporate culture to achieve the common good. The study also recommends CellMed to segment the market and design insurance products that meet the needs of defined groups in the market/society. Segments can be geographically based or formed based on the income level of groups in the market.
Investing in new technologies and educating workers will help it leverage the expertise and knowledge of workers and ultimately can result in a higher market share and increased revenue for the company. The researcher also recommends that insurance service sector regulators and government policy makers review the policies related to the operations of insurance companies and the government should encourage the adoption of fair business models that improve the level of customer satisfaction and service to balance the expectations of the insurance service provider and the customer to whom the services are provided. Therefore, the government through its regulatory authorities should give priority to the insurance business as it is of critical importance to the economy.
Research limitations
Politicians should note that insurance companies are critical when it comes to social welfare.
Recommendations for future research
The researcher recommends that further studies should be done on a similar topic, but using different methodologies, focusing on other insurance companies in Zimbabwe or other companies in other sectors of the economy than the one used in this study. . Important to note is that the findings that will be obtained from other research studies will be useful for other companies that want to improve their business models to increase their performance.
Summary
The role of the business model in capturing value from innovation: evidence from Xerox Corporation technology spinoff companies, Industrial and Corporate Change 11, 533e534. Hostile takeovers in the UK and the correction of marginal failure, IFA working paper (London Business School, London The Business Model in Practice and its Implications for Entrepreneur Research', Entrepreneurship - Theory and Practice, Vol. 2002) Qualitative data analysis: Explorations with NVivo: Understanding Social Research: McGraw Hill Education. The Three Faces of Business Model Innovation: Challenges for Established Firms: Research Technology Management May 2011.
2002) Evolution toward fit, Administration Science Quarterly 47, 125e159. An Assessment of Business Models in the Private Healthcare Sector in 135 Zimbabwe: A Case Study of Three Healthcare Companies in Harare. 2004) Computer and template-assisted orthopedic surgery: Springer. How would you relate the current business model used by CellMed to the company's competitiveness in terms of market share growth. What do you think the responsible decision makers can do to improve the current business model.
May you rate CellMed's relationship with its customers in terms of each of the following customer relationship segments. Rate each of CellMed's supposedly key business resources under each of the V, R, I, and O aspects. How would you rate each of the following CellMed capabilities under each aspect of VRIO.
