Introduction
“Bread in a Box” is a company that makes and delivers bread to customers every day of the week. Khodaei and Ortt (2019) argue that businesses today need an agile business model of rapid changes in technology and markets in which they operate. In this light, Bread in a Box uses an online business model where existing clients and prospects subscribe to order and get bread delivered to their door. The company has majored in weekly delivery plans with convenient online subscriptions where they provide freshly baked bread each day of the week. The company’s mission is to ensure bred lovers with busy lives get fresh, organic, and handcrafted bread baked from traditional recipes and delivered to their door.
Company Analysis
Key Partners
Johanna Rauch founded the business, and she is actively involved in running the business. She provides all the pivotal resources, including human resources, capital resources, and entrepreneurship. Her management team has acquired all the essential resources to successfully run their business. The key business partners include creditors such as baking institutions, suppliers of ingredients, and distributors who deliver bread to their customers. In addition, the business also works with external consultants and interns in various areas, including customer acquisition, health and hygiene, and website design. Other partners are recipes adviser Marcus Staib, adviser on food subscription business George Batton, and adviser on bakery business, Tonny Martin.
Key Activities
Some of the significant activities in the bread in a box company include baking bread, delivering it to the customers, and sourcing the raw material. Other tasks are subscribing new customers and maintenance of the website and subscriptions. In addition, the cofounders are involved in health and hygiene consultation, processing of orders, designing and maintaining their website. Other partners are involved in research activities to develop the best recipes for their clients, advising how the bakery business should be run and reporting on the subscription issues.
Value Proposition
Bread in a Box’s value propositions include convenience, variety, high quality, and healthy bread options. Having such compelling value propositions helps in attracting customers and influencing their purchase behavior (Payne et al., 2017). The bread maker has four varieties of minimum viable products and more than ten varieties of Beta launch. They make bread from organic/artisan whole grains that are gluten-free. The bakery has an efficient system that ensures that all bread is made and delivered on the same day. Some of the services include website ordering for the minimum viable products produced locally four days a week. For the Beta launch, they use the website and app, and they provide five days a week in the morning and evening regionally.
The major problem that the company is trying to solve is the lack of artisan bread. Most customers prefer artisan bread, but there are no excellent bakeries to provide. Also, busy professional parents have no time to go to bakeries; therefore, most do not access bread. In addition, regular grocery bread stores do not have enough to fulfill the demand; thus, most people do not get bread. This demand is what the company is striving to meet. The company combines the artisanship of traditional European bakery with convenience and goodness to deliver food to their customers.
Customer Relationships
Bread in a Box has strong relationships with its customers, created through self-delivery services, website ordering, and app ordering. Automated apps have strengthened their relationships as customers can order both locally and regionally, and they deliver the same day. Also, five-day delivery assures customers they will get their deliveries through the week. Especially during the COVID 19 pandemic, most customers prefer ordering through the website instead of shopping for groceries to prevent the risk of spreading the disease. COVID 19 has increased the online orders, and deliveries have increased.
Customer Segments
The primary customer segment is the working-class people of 25-65 years, parents who have 1-2 children, and people with busy lifestyles such they cannot make to bake in their homes. The firm also targets female college students interested in variety and high-quality bread with delivery convenience. Consistent with Peker et al. (2017), segmenting its target markets enables Bread in a Box to design and deliver products that meet their key customers.
Key Resources
The critical resources that the customer value proposition requires include finances to facilitate the operations, humans especially for delivering, and entrepreneurship. They also require people to maintain the websites, subscriptions, and app. In addition, they need people for researching the best recipe for high-quality products and advisors to ensure a good delivery of products and services.
Channels
Bread in a Box acquires customers through various channels, including personal acquaintance, word of mouth, interviews, and emails, use of websites, food blogs, and social media services. Among these channels, food blogs, social media, and websites are the most effective channels reaching about 22 million people regionally.
Cost Structure
The most crucial cost in the bread in a box company is the cost of acquiring raw materials and maintaining the websites. Considering they use organic raw materials, the cost of researching and sourcing them is the most important. In addition, their websites and food blogs attract more than 22 million people, and therefore they should prioritize this cost.
Revenue Streams
The significant revenue streams for the company come from the launch of the addressable market, especially from the ten selects from the Manhattan apartments, which has more than 2000 households. The company gets revenue of $54,000 from these households, and other paramount revenues come from online orders and deliveries.
Conclusion
In conclusion, this paper presents a nuanced analysis of the dynamic capability of Bread in a Box. The company has contributed to solving the problem of bread shortage and provided high-quality and efficient services. The company should have efficient delivery of services and excellent revenue streams from customers.
References
Khodaei, H., & Ortt, R. (2019). Capturing dynamics in business model frameworks. Journal of Open Innovation: Technology, Market, and Complexity, 5(1), 8. Web.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: Evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45(4), 467-489. Web.
Peker, S., Kocyigit, A., & Eren, P. E. (2017). LRFMP model for customer segmentation in the grocery retail industry: A case study. Marketing Intelligence & Planning, 35(4), 544-559. Web.