Business Proposal of ISUZU

1. Introduction

Every business model is established by the firms to create value for the customers and to generate maximum value from that return.  Thus the main components of business models are value proposition of firms for customers, stakeholders and partners of the business and requirement of processes and resources to deliver this value to the customers. A good business proposal reflects how the business plan will solve the problem of the customers. This business proposal details about the new business proposal for ISUZU which is a Japanese company, manufacturing commercial vehicles and diesel engines. This report contains detailed analyses of business proposal by throwing light on the business model description, value proposition development, business operation development, supply chain development, competitive advantage, financial value capture, strategic fit and solution to the uncertainties related to customer desirability, technical feasibility and financial viability.

2. Business model description

From the detailed study of reports of the company, it has been observed that the customers of the company are facing issues related to long term protection of vehicles. Especially, they are facing issues related to road side assistance (Candace & Ronald, 2018). Thus the main idea of this business proposal is that the company can provide this road side assistance facility for life time. The customers will have to pay a small amount of charges at the time of purchase of vehicle. The company can use that money to contact with the third party dealers for this road side assistance in every city (Osterwalder, Pigneur, Bernarda, & Smith, 2014). It will create value for the customers. The following components describes about the business model in detail.

  • Key Partners: The main partners of this business model will be the consumers, all internal and external stakeholders and third party dealers who will provide the services. Partnership with third party dealers will help the company to provide easy road side assistance to the customers in every city (Pastor, Santana, & Sierra, 2010).
Business Proposal of ISUZU
  • Key activities: The main activities as per this business proposal will be to provide long term protection of vehicles to the customers. The company would contact with third party dealers to provide life time road side assistance to the customers in case of any emergency.
  • Key resources: The key resources for this new idea will be the customers who will pay a onetime small amount at the time of purchase and the third party dealers who will provide services to the customers in case of emergency (Schnellbächer, Heidenreich, & Wald, 2019).
  • Value proposition: The main value proposition of this idea is to provide protection of vehicles in case of emergency, especially to focus on providing long term road side assistance to the customers.
  • Customer relationship: This idea will help the company to maintain a long term relationship with the customers because most of the customers complain about the problem of road side assistance (Sreenivasan & Tripathy, 2014).
  • Channels: The customers will have to register their request with the company. The company will immediately contact the third party dealer and they will provide the quick services to the customers as and when required.
  • Customer segment: The targeted customer segment for this business proposal will be all the customers using the vehicles of the company.
  • Cost Structure: All the cost of this life time road side assistance will be covered through a small amount of extra charges at the time of purchase of product. The company will charge this amount from every customer but all the customers will not demand for road side assistance at the same time (Tang, Tang, & Su, 2019). Thus the company will be able to use that money for hiring third party dealers to solve the problem of the customers.
  • Revenue stream: This idea will increase the sales of the vehicles of company and the revenue of the company will also increase with every sale of vehicle.

3. Value proposition development

Through value proposition, the company can maintain long term relations with the customers and can attract new customers. The development of value proposition consists of requirement of new resources and capabilities for the innovation of new services. Customers, stakeholders and third party dealers will be the main resources of ISUZU for creating this new value proposition. The main idea is to provide life time road side assistance to the customers without charging any cost (Tellis, MacInnis, Tirunillai, & Zhang, 2019). The company can charge a small amount at the time of purchase of product and can make a budget to contact with third party dealers in every city. It is obvious that all the customers will not ask for road side assistance. But this service provided by the company will help in creating value for all the customers.

4. Business operations development

For this new business operation, the company needs to measure the scalability of the business. The company can follow the step by step procedure to measure the scale of the business and to know about the requirement of resources and capabilities to complete the business operations. The first step to measure the scale of the business is to evaluate and plan. The company should evaluate the existing sales and revenue of the company so that total expenditure and total revenue with the introduction of this new business operation can be estimated. The second step is to explore the resources to finance this business operation. The company will not have to bear any extra cost (Wadstrom, 2019).

Business Operations Development

The company can easily provide these services to the customer by collecting an extra small amount at the time of purchase of product. The third step is to market for this new value proposition. The company will have to plan for proper marketing process to attract the customers. The company can use technology to make people aware about this new business operation (Osterwalder & Pigneur, Business model generation, 2010). Online advertisements can help a lot in the development of this business operation. The last step of measuring the scalability of the business is to strategically outsourcing the business operations. The employees of the company can help a lot in outsourcing of the business operations.

5. Supply chain development

The company can create an efficient supply chain development model with the help of its existing business partners. For this new business operation, the company needs support from customers, stakeholders and employees of the company. Thus the company will have to make an overview of the company before taking decision regarding this new operational development (Aulet, 2017). The company can have estimate about annual total revenue and total expenditure by analyzing the data of the previous years. The research background of the company will be helpful to identify the determinants of varying revenue and expenditure. The company also needs to analyse the social, economic, cultural and political aspects of this business venture before creating this new supply chain model.

Supply Chain Development

6. Financial value capture

The main resource of making money as per this supply chain model will be the customers. The company will charge some extra amount from the customers at the time of the purchase of the product. The company will provide them assistance whenever required with that amount through third party dealers (Erkutlu & Chafra, 2018). But it is obvious that all the customers will not demand for such services at the same time. It may be possible that the customers do not need this service at all. Thus it will increase the benefits of the company. Thus the extra cost bear by the company will be covered from the amount paid by the customers (Goldman, Schlumpf, & Scott, 2017).

7. Competitive advantage

The major competitors of the company are Volvo, Ford, Daimler and Volkswagen. All these companies are providing emergency protection as well as road side assistance to the customers but their services are for limited period. Later on the customers need to pay for it again (Kryger, 2019). Thus the customers remain dissatisfied in case of requirement of emergency protection. That is why this business proposal is based on the core capability of providing life-time road side assistance through third party dealers in every city. It will help the company to be favorite choice of customers among all competitors by providing this unique benefit of life-time road side assistance.

8. Strategic fit

ISUZU has won the award of “Best of the Best” in 2018 for high customer satisfaction in case of product quality.  Customer satisfaction is the key factor which is continuously promoting the sales of the company. It reflects that in case of product quality and durability, the company has already won the hearts of the customers (Lamb, Butler, & Roundy, 2017). By adding this new business venture, the company can become a top name among the list of its competitors. Thus we can say that this idea is compatible with the parent organization.

9. Uncertainty related to customer desirability, technical feasibility and financial viability

In every innovation process, desirability, feasibility and viability play an important role. These three factors assure for the successful completion of this business venture and satisfaction of customers. Feasibility refers to reduction in cost and maximum revenue. Technical feasibility refers to provision of on the time road time assistance to the customers in effective and efficient manner and desirability refers to provision of services as per desire of customers. Financial viability refers to increased profit of the company by introducing this new business venture (Palumbo & Manna, 2018).

Argumentation to support the use of tools and techniques

The main target of the company behind every new innovation is the satisfaction of the customers. Thus it becomes essential for the company to use appropriate tools and techniques to measure customer satisfaction (Mendes & Machado, 2015).

Various companies use SAAS platform to appoint third party to get their work done (Rumbles & Rees, 2013). Social media platform can help the companies to get the accurate data regarding satisfaction of the customers (Sinha, 2019). Through business agile tools companies can measure the intelligence level of customers (Wang, Noble, Dahl, & Park, 2019). Mobile apps can also help to assess the customer intelligence for estimating the success of the project of the company (Durica & Svabova, 2015).

Application of tools and techniques

  • ISUZU can use CRM tool to maintain effective relationship with the customers.
  • The company can assess the traffic on the website of the company through click cracking tools.
  •  Through text analyses, the company can provide facility of filing complaints and suggestions to the customers.
  • Mobile applications can make the process of customer feedback easy.
  • SAAS can help to get the work done through third party.
  • Through business agile tools, the company can have access to real time customer intelligence.
  • The company can convert the voice messages of the customers into text through speech analytic tool.
  • Social media platform can also play an important role in getting the feedback of the customers.


This business proposal has helped me to assess the knowledge about practical application of marketing tools and techniques. Previously I studied everything theoretically. I was very weak in practical implementation of these tools and techniques. But this task has increased my knowledge regarding business models and its components. Now I am strong enough to create business proposal for any company. The problem identification part has increased my knowledge about various companies, their business models and their working process. In short, this business proposal has improved my practical knowledge about marketing concepts.

10. Conclusion

To conclude, this innovative idea can help the company in attaining the top position in the market. The company has already won the award of “Best of the Best” in 2018 in terms of customer satisfaction for product quality. The only need is to focus on the service quality aspect. This business venture will help the company to be at top among all competitors.

11. References

Aulet, B. (2017). Disciplined entrepreneurship workbook. New Jersey: Hoboken, Wiley.

Candace, F., & Ronald, L. (2018). The relationship between participation in differenttypes of ms and gainful employment for formerly incarcerated individuals. Human resource development quarterly , 29 (3), 263-286.

Durica, M., & Svabova, L. (2015). Improvement of Company Marketing Strategy Based on Google Search

Results Analysis. Procedia Economics and finance, 26, 454-460.

Erkutlu, H., & Chafra, J. (2018). Despotic leadership and organizational deviance. Journal of Strategic Management, 11 (2), 150-165.

Goldman, E. F., Schlumpf, K. S., & Scott, A. R. (2017). Combining practise and theory to assess strategic thinking. Journal of Strategic Management, 10 (4), 488-504.

Kryger, A. (2019). Iterative prototyping of strategy implementation workshop design. Journal of Strategy and Management, 11 (2), 166-183.

Lamb, N. H., Butler, F., & Roundy, P. (2017). Family firms and corporate social responsibility: exploring “concerns”. Journal of Strategy and Management, 10 (4), 469-487.

Mendes, & Machado. (2015). Employees’ skills, manufacturing flexibility and performance: a structural equation modelling applied to the automotive industry. International Journal of Production Research, 53 (13), 4087-4101. 10.3233/WOR-2012-0735-4389

Osterwalder, A., & Pigneur, Y. (2010). Business model generation. Hoboken: New Jersey: Wiley.

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design. Hoboken: New Jersey: Wiley.

Palumbo, R., & Manna, R. (2018). The need for requisite variety to support growth: an organizational life cycle perspective. Journal of Strategy and Management, 11 (2), 241-256.

Pastor, Santana, & Sierra. (2010). Managing knowledge through human resource practices: an empirical examination of the Spanish automotive industry. The International Journal of Human Resource (Schnellbächer, Heidenreich, & Wald, 2019)Management, 21 (13), 2452-2467.

Rumbles, S., & Rees, G. (2013). Continuous changes, organizational burnout and the implications for HRD. Industrial and Commercial Training, 45 (4), 236-242.

Schnellbächer, B., Heidenreich, S., & Wald, A. (2019). Antecedents and effects of individual

ambidexterity – A cross-level investigation of exploration and exploitation activities at the employee level. European Management Journal, 37 (4), 442-454.

Sinha, S. (2019). The emergent-strategy process of initiating organizational ambidexterity. Journal of Strategy and Management, 12 (3), 382-36.

Sreenivasan, & Tripathy. (2014). Employment Relations in the Automotive Industry. The Indian journal of industrial relations, 49 (3), 499-512.

Tang, C., Tang, Y., & Su, S. (2019). R&D internationalization, product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises. European Journal Management, 37 (4), 529-539. 10.3233/WOR-2012-0735-4389

Tellis, G. J., MacInnis, D. J., Tirunillai, S., & Zhang, Y. (2019). What Drives Virality (Sharing) of Online Digital Content? The Critical Role of Information, Emotion, and Brand Prominence. Journal of Marketing, 83 (4), 1-20.

Wadstrom, P. (2019). Aligning corporate and business strategy: managing the balance. Journal of Business Strategy, 40 (4), 44-52.

Wang, H. S., Noble, C. H., Dahl, D. W., & Park, S. (2019). Successfully Communicating Cocreated Innovation. Journal of Marketing, 83 (4), 38-57.

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