3.1 The current situation of the company. Why Osterwalder good to use in Sydney IVF
There are various advantages of using Osterwalder’s (2005) model. It clarifies the concept of business models by outlining the differences to related concepts. The model theoretically states the firm’s business logic in an organized manner and suggests areas where the company opt to make adjustments.
3.1.1 Product – Value Proposition
Sydney IVF promises value to be delivered to the customers. The value applies to the entire organization. The company’s employees are learned and so quality services are guaranteed. This is evident from their chief risk officer (Cynthia Roberts) who oversees safeguards in the entire company has a PhD in genetics and further worked as an chief scientific officer before joining Sydney IVF (page 10). The company has independent doctors affiliating with the company. This ensures that the company never lacks qualified and readily available doctor and so patients are assured of quality services (page 6). Based on the information by Dr. Robert, the company since its formation has attracted many excellent scientists and top young doctors with various specializations (page 3).
3.1.2 Customer Interface – Target Customer, Distribution Chanel, Relationship -(stakeholders)
Sydney IVF has partnered with various physicians who bring their own patient to the company. According to page six, individual patient seeking fertility treatments do not go to the company without being accompanied by their physicians. Based on Osterwalder’s (2005) assertions, the customer, obviously, is of importance in the determination of a firm’s value proportion. Therefore it is important for Sydney IVF to know its customers and how to communicate with them distribute the value proposition and in what manner to relate with them. In the company the customers since are best known by their physicians, it is their doctor who take them to the company. The company targets the surrounding areas and hospitals.
3.1.3 Infrastructure Management – Value Configuration, Core Competency, Partner Network
Infrastructure management as mentioned by Osterwalder’s (2005) entails; core capabilities, partnership, and value configuration. Sydney IVF due to limited resources and inadequate management attention, the company limited the area in which they compete. The company therefore decided to major on single-gene disease and never considered anything else (page 14). This has been for enhancing value position of the company. However, the company majors in one field and so low completion in the market.
3.1.4 Financial Aspects – Cost Structure and Revenue Model
In 2008, the company’s revenue was $53 million with an after-tax of $6.9 million. The company’s assets as at 2008 was $0.32 million and liabilities $0.19 million as at the same date. Based on the balance statements by the company as at 2008, it is evident that the company is making a steady progress.
3.2 Analysis. Risks associated with Sydney IVF’s current model
Among the risks that the company faces is operational strategy. The company has limited operations due to limited infrastructure and management team and so does not fully exploit the market. This gives loopholes for their competitors who might be advanced ion other areas as well. Based on the assertions by Stojanov (page 17), the company might not be able to replace its by then technologies in pharmaceutical industry. This shows poor attitude of the company towards resourcing and thus a risk. The company since its formation has not ventured new fields regardless of various qualified physicians.