Week 2: Structures & Functions

The Three Industrial revolutions brought a huge change in product design and the way business models functioned. The first revolution took place in 1760’s which had happened because of big cotton mills and such. The provided individual artisans and crafts maker power to make their products easier and faster. Business models of the time had focused much more in individualities and small shops. The Second Revolution took place in 1850’s. This revolution was contradictory of the first one, more bigger and faster machines were being created, so a lot of big businesses started emerging and took over smaller businesses. A lot of individualities were lost, and mass production was taking place for the same product. The last revolution is happening right now, it’s ongoing. This revolution is reverting back more towards the first revolution that happened, Due to rapid advancement of technology and maker culture, a lot of businesses are becoming independent. A lot more competition and creativity has entered the markets once again.

These revolutions showed great changes, and highlighted what worked and what didn’t with different types of changing business models over the years. As much as it’s important for businesses to stay up to-date, they must consider where their business models have originated from. This can give them not only more understanding about improving mistakes that might’ve occurred in the past, but also give them creative ideas on how to push it further differently. Also another important part is, this sort of maker culture had existed once before, but certain evolutions and mechanization made it out dated. It’s not likely it will happen again, but it’s important to know the flaws that existed then, and the businesses might want to learn from them.

It’s important to have solid business plans and financial projections for businesses. This helps business not only retain in an organized structure, but also the business can have more clarity on how much profit they are making and where. The business can also keep track of where the money is being spent. Also the business can have a greater control over their 4P’s (Product, Price, Placement, Promotion). If financial records are kept clear, the businesses can decide quicker and more efficiently which “P”, they can invest more money behind.

One of my favourite marketing and sales strategy comes from a ramen shop named Kinton Ramen. This Japanese restaurant has a very unique and fun environment, where a lot of Japanese cultural elements have been highlighted. The food there is certainly excellent, and there is a special reward for people that do finish all of their food. The completed plates get a special photo taken and the customers have a choice to share it with their friends. As simple and silly as it sounds, this reward is certainly surprising and fun, especially if you walk in there for the first time. Also, a lot of the time it becomes like a small goal for customers to try and accomplish. This marketing strategy has multiple of chain effects that make it really successful. First and most basic effect of this strategy is, the restaurant will have much less wasted food. If people do try to achieve their goal of photo, they are most certainly like to have finished their food. Also, more photos mean more happy customers, so it also becomes easy for the restaurant to keep an eye on their target audience. And lastly the most impacting effect of this strategy is, the customers spread the word of your restaurant on behalf of you and that too for FREE. If customers share their photos to their social profiles with name of the restaurant, it is more likely that they are publicly recommending that restaurant to more other people. This strategy I find to be very cheap, and highly effective.