Here is a short management summary of our innovative business idea as a recap on our presentation yesterday. Our report is available on request!
The consumer group of interest consist of two subgroups. The first consist of consumers who want to buy a newspaper but are not interested in having a subscription. This group mostly buys a newspaper “on the go”. The second group are consumers who have a subscription and want to receive the newspaper at home every morning. Both subgroups have a preference for personalized products.
Currently there is no opportunity to combine multiple newspapers. Additionally, newspapers might be out of stock or not delivered yet. Digital news is becoming increasingly popular but lacks the true physical newspaper feeling. Thus, the current value systems have room for improvement.
In the new system, MyPaper provides newspapers via a printing machine. For consumers without a subscription, customers can compose a customized newspaper on the website or app. The file with the customized newspaper is saved in a personal account or with a QR code. Other consumers can then also use this design as an advice. The customer goes to a retailer where the printing machine is located and logs in/scans QR code. The newspaper is never late or out-of-stock, and there will be no more excess stock. For the consumers with a subscription, MyPaper would supply a special home printer. Customers pay a subscription fee like they do in the current system. In both subgroups, the consumer has an active role and the beneficiaries in this system are the consumer herself and others. Customers who want to buy a regular newspaper can scan cards that are provided in the store and print the paper without extra effort. MyPaper offers people the chance to have news as up-to-date and personalized as on the Internet but with the retro feel of a real newspaper.
After analyzing all the preferred and required benefits for consumers, we have demonstrated that the new system dominates the current available systems. The supply chain not only becomes shorter, but also more flexible.
The machines in the shop will require an investment. Therefore the number of people visiting the location should be sufficient. Machines can gradually be placed at more locations. Printers to print at home are relatively cheap these days. MyPaper will provide these printers to consumers who sign for a contract of at least two years. The saved delivery costs will help to quickly pay back the investments.
This value system is consumer driven. There are three main remediable efficiency concerns, which were analysed, namely joint profitability (comparing benefits and costs for all parties), reallocation feasibility, and switchover feasibility. An environment will need to be created in which the parties trust each other and are confident about the arrangements made. MyPaper will need to introduce clear contracts with all parties involved since MyPaper will be the owner of the system. The contracts, which MyPaper introduces, unite all the parties. Manufacturers need to pay a fixed amount to be part of the system, provide up-to-date news and market the new system. The fixed amount of money that manufacturers pay is dependent on the amount of newspapers that are sold. MyPaper needs to take care of the maintenance of the machines and the websites, make sure that paper and ink gets refilled at the stores, and disperse revenues from the machines to the manufacturers. The retailers also need to sign a contract with MyPaper. The contracts with the customers with a subscription should run long enough to cover the costs of the machines.
After performing extensive analysis, it can be concluded that the proposed system dominates others and MyPaper can increase value for all parties by combining the best of the online and offline world.