Report on Business Model of GOFAR †Free Samples to Students

Question: Discuss about the Report on Business Model of GOFAR. Answer: Introduction: GoFar is a company that strives to meet, match and enhance car interior. Danny Adams is the founder of GoFar that was primarily developed in Sydney, Australia. The company aims to design functional products related to the cars to save both the time and money of its customers. The extraordinary concept of the company to keep a track of everything related to the car, including emissions and energy consumption has made GoFar set a mark in innovation in the Car industry. A brief analysis of the company with its business model and progressive structure helps to identify the position of the company in the present market. The factors that connote to the successful nature of the company along with the risks it might face help to realize its acceptability from customers that indicates its appeal in the future market scenario. GoFar has been awarded and acknowledged by various renowned newspapers for the outstanding innovation it has brought into the market. Adams, the founder of GoFar has been supported by the team that comes from every corners of the world including India, UK, China, Russia, Israel, USA many other countries. The company is operating in about 49 countries in the recent times and in all the continents except Antarctica (Gofar.co, 2018). It works with insurers, mechanics and roadside assistance to make driving cheaper, safer and free of hassles. The company production of the smart driving device has been an incredible success. The family pack product of Gofar includes an adapter, the ray, and the thin extension cable that are also sold separately. The adapter needs to be installed in the port below and the ray act as sensor. The red indicator denotes that the driver has been wasting both energy and money while the blue indicates effective and safe driving. The entire process is monitored th rough the GoFar app that needs to be installed in the smart phones of the user. The device logs all the driving, analyzing the cars health to ensure better fuel economy. It never fails to store the expenses and details of the trips made and communicate in simple English alerts. The app with its installation not only saves fuel and tax but also ensures saving on services. The absolutely new product that GoFar has brought into the automobile industry has rendered to it huge expansion and success in the global market (Cavusgil et al., 2014). Key Partners Backed by the largest National network. Partner with Digicall and insurance companies. Has a network of about 3000 mechanic throughout Australia and Tasmania. Have teamed up with the design team behind Microview Key Activities Logs data related to the use of fuel and energy by the cars. Saves fuel costs upto 22%, servicing and taxes connoting to car solutions (Gofar.co, 2018). Provides roadside assistance through the GoFars Smart Assist. Offers technical advice over phone. Reduces emissions. Value Proposition Saves the time and money of the customers. Enables to record the consumption of fuel by the car (Tie Tan, 2013). Easy to use and helps customers to save the tax and company claim expenses (Zolnowski, Wei Bohmann, 2014). Improves car health and fuel cost. Customer Relationships Hardly any complications. Competitive price fosters customer relationships. Accessible in smart phones that helps to communicate easily fostering effective relation with the target customers. Customer Segments People from upper middle and middle class who are users of smart phones are the target customers. Young generation who are fascinated with new technologies and cars. Car lovers and people who indulge in experiencing new technologies. Key Resources Industrial designers IT applications and support Data collected from users. Web presence. Channels The GoFar is a free app available to be downloaded by the customers. The products are available in online retail sites and shipped worldwide with collaborations that the company has with various distributing channels (Laudon Traver, 2013). Cost Structure The products of GoFar have a very competitive price that can be afforded by the target customers. The GoFar family pack is about $387.00 AUD, and the parts are also sold separately at lower prices as per the requirement of the customers. Revenue Streams All transactions are made online that is less complicated. The company gives a 1-year warranty to the users and also renders free shipping. It also guarantees 100% money back guarantee in case of any issue within 60 days (Gofar.co, 2018). The company has been highly profitable that is getting well acceptance from customers. This is contributing to the economy of Australia to a good extent as well. Relationships across the building blocks: GoFar has been a very successful and evolving company with a large number of customers who are reviewing its products to be very useful and effective. With an overview of the business model, it can be seen that the company has wide range of partners that help it to have a collaborative work, distribute the products, and increase its efficiency (Joyce Paquin, 2016). The key activities of the company compliments the value proposition that help to influence the customers to use the products that GoFar offers. With the segmented customers, the company has been able to sell its products to the greater population and its communication ease has been helping to establish customer relationships (Wilson et al., 2016). With low costs to be incurred on distributors, the cost structure is also well set that is both beneficial and favorable for the customers. Through the business model, it can be understood that GoFar has a long way to go spreading its business and acquiring fame and recognition in the global market scenario (Kotabe Helsen, 2014). Easy to install and use. Has been able to acquire a global market for selling its products. The logbook feature is efficient and well appreciated by users. Steady drop in fuel economy and emissions. Excellent customer service that has brought in good feedback from customers all around. The sleek design of the Ray adds a stylish look in the car. Data syncing with smart phones that is very easy and acceptable. Everything is tracked by the GOFAR app that has been a major successful factor. A smart innovation with a progressive attitude. It has no battery needed, powered by the car and is both reliable and future proof. The company has no ongoing contracts and fees and gives 1 year warranty. In case of failure of the products, GoFar provides 100% money back to its customers. The company also has its privacy policies that help it to protect data of the customers. GoFar prioritizes customer requirements and try to stay updated. Downside Risk factors: Delay in new incorporations and innovations. There has been issues relating to the shipping and delivery of products that the company needs to work upon (Lee Lee, 2015). GoFar products are in-car wireless device but it does not progress in compliance with FCC and CE that pose risks in its usage (Freishtat et al., 2014). Lack of proper communication often serves to be a challenging factor for the company. GoFar has been a widely progressive company with its innovative range of products that is being accepted globally (Kickstarter, 2018). However, the installation of some brick and mortar stores would have made the company eradicate the communication problems it has been manifesting in the recent times. A large section of people is unaware of the product and its effectiveness (Armstrong et al., 2014). Thus, the company must indulge in various advertisement methods to promote the innovation. With its product that helps to monitor the use of energy and fuel by the cars, the company can also aim to produce more innovative products relating to the speed control measures, tools to increase visibility during heavy rains and at night and such other aspects. It can also increase efficiency in its products through regulatory tests and FCC and CE compliances, indicating its reliability and authenticity. Conclusion: From the above report, it can be concluded that GoFar intends to be a promising company in the future. Crossing the boundaries of Australia, the company has been able to gain a position for itself in various other countries. The products of the company has been very few however, these products have enabled GoFar to achieve recognition through its marvel innovation. The products have not only proved to be environment friendly reducing emissions greatly but have also been able to render amazing experiences for the drivers. The cost effective products have been able to save both the fuel consumption and money of the users that has made it even more pronounced. Business model canvas of the company shows that GoFar has been working focusing on customer needs and the good customer relations has also been contributing to its fame. With online processes and effective partners, GoFar ensures a progressive attitude to establish itself as a promising company in the global market in near future. References: Armstrong, G., Adam, S., Denize, S., Kotler, P. (2014).Principles of marketing. Pearson Australia. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Rose, E. L. (2014).International business. Pearson Australia. Freishtat, G., Hufford, S., McFall, D., Wilson, J., Hyman, T., Rijsinghani, V., Kaib, P. (2014).U.S. Patent No. 8,868,448. 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