Creating value: A case study on lifestyle food markets and the elements of their business model

• Main Authors: Ciudad, James Paulo C., Kahayon, Annamarie Therese M., Manguera, Jed Bryan R., Sacramento, Carmina M.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17864
• Institution: De La Salle University

The purpose of this research was to determine what business model elements are being employed by the lifestyle food markets of Mercato Centrale Philippines, Inc., namely Midnight Mercato, Mezza Norte, and Cucina Andare, and to find out if these elements create value to their target customers. Assessment of similarities and differences, as well as a strengths, weaknesses, opportunities, and threats (SWOT) analysis of the business model elements were also performed. The researchers conducted both interviews and surveys to gather the necessary data for the study. Interviews were done with the business owners and management team, each handling different functions of the organization, regarding the business model elements utilized by the organization. On the other hand, surveys were used to gather information under the business model factor Customer Value Proposition, the value creation process of the business model, to gauge Customer Satisfaction and Customer Loyalty, which were given out to the food market goers (indirect customers) and food market vendors (direct customers) respectively. The researchers were able to survey a total of 468 food market goers and 86 food market vendors, crediting only those who fit the criteria. Results showed that the business model of Mercato Centrale Philippines, Inc. consists of the four basic elements: Customer Value Proposition, Key Processes, Key Resources, and Profit Formula, applying each of these to the three mentioned lifestyle food iii markets. While these basic elements are similar with those presented in the operational framework of the study, the sub-factors actually used by the three lifestyle food markets differ from the ones stated in the operational framework. The sub-factor Resource Velocity, which falls under the key element of Profit Formula, is not being utilized by the business. Moreover, it was established that each of the lifestyle food markets has their own business model framework as there certain similarities and differences that can be pointed out. The differences among the three lifestyle food markets lie in the items that are particular to their respective target markets and location. Results also showed that the food market vendors and food market goers were generally satisfied with their experience, meaning that value creation took place. Value creation has been defined in the study as having all elements of the business model to collectively function to be able to deliver value to its direct customers (i.e. food market vendors) and indirect customers (i.e. food market goers). This means that no individual component can be identified as the one creating value to both customers it is only when all elements of the business model work together can value be created. Through the use of the SWOT analysis, recommendations were given as to how the business can develop their value creation towards their customers, specifically improvement of the internal management, customer relations, and existing markets, building connections, and keeping up with the trends of having a healthier lifestyle and engaging in Corporate Social Responsibility.