Effectual Entrepreneurship, Third Edition

 

Practically Speaking

Disposable Income 

The business model of this diaper company is tightly linked to the preferences and aspirations of customers, partners, and employees.

Entity: gDiapers

Country: USA

Pages 321-322 in

Chapter 19 Business Plans and Business Models (pp. 312 to 334)

"g Diapers makes completely biodegradable and flushable baby diapers based on these business plan elements:


•    Revenue model. gDiapers generates sales revenue by selling products to grocery and apparel retail chains and to consumers from its website gdiapers.com. Retailers order crate-size shipments with return rights; consumers order starter and refill packs.
•    Operating approach. The company focuses on the design and marketing of the product and packaging, sourcing the components from suppliers who ship finished, boxed product to the main office.
•    People approach. Critical talent needs are design, creative marketing in two different arenas (channel marketing and online marketing), and supply chain management. These skills are all in-house, and the company accesses additional talent in technical design through partners.
•    Differentiators. The key differentiation is the 100% eco-friendly disposable diaper with unique style. The company has also cultivated relationships with a large group of remarkably passionate users online who help manage channel opportunities and sell products online.
This is clearly a summary of the business, a glimpse at the critical components gDiapers must master to be successful in its current endeavors. However, it offers a clear idea about the risk and opportunities facing this company."

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