The Seacoast Science Center Business Model, Its Customer Value Proposition, And Profit Formula

2021-08-12 06:29:59
5 pages
1171 words
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Wesleyan University
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Article review
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Seacoast Science Center adopts a franchise model of doing business. The business is in Odiorne Point State Park in Rye, New Hampshire. Seacoast Science Center was originally serving visitors who came to see the park and acting as an educational center in the local environment. The center has been evolving to adapt and fit within the conditions. The center offers a retreat center to customers (Peng, 2010). The center has expanded to include regional and global issues that relate to the sea and operated under four themes including The Gulf Maine, Changes to the sea and sky, New Hampshires Coastal Connection and work that take place under the sea. The aim is to help customers learn the course of the natural history of the seven habitats available and the park and examine how people relate to it. The center focuses on the revenue that can be generated from resources available at the park offering a relaxation and educational experience together.

Using Exhibits 6 And 7, To Analyze SSCs Business Model and Strategy

In exhibit 6 the table displays the visitation data for the center across the years from 2004 to 2008 with a fiscal year that starts from July 1st to June 30th and the second part displays revenue collected visitors in the same order over same the years. The revenue collected showcase a relatively stable business strategy with the lowest revenue collected was $ 51,744 while the highest was $61,148. In exhibit 7, the financial statement focus on ordinary income and expenses from 2005 to 2009 (J Naumes and W Lull, 2012). The center increased its revenues from $867, 149 in 2005 to 1, 073,801 in 2009. The total expenses were recorded to a decrease from a negative balance of $-63,249 to $-53, 102 in 2005 and 2009 respectively. It is logical to argue that the center has a winning strategy given that it had an endowment of $ 15000 previously. The center has managed its expenses, and the negative balances result from payroll and benefits.

Differences Between SSC From Its Competition: Its Unique Features

SSC is unique from its competitors in various ways. The center focuses on preservation of the environment target all aspects of air, land, and marine. In development, the center preserves the natural environment for exhibit and research. For instance, the center has an underwater laboratory that was constructed in 2005 and multiple exhibits that showcase live wildlife from the sea, air, and land. The center focuses on innovative educational programs that engage imaginations in exciting experiences about nature and inspiring the spirit of environmental stewardship. The availability of exhibits from air, land, and sea is a unique acquisition, and the center focuses on preserving and teaching about the wildlife available in the locality.

The Importance of Visitors in The Overall Revenue Stream Using Exhibit 7

Exhibit seven display data that indicate the importance of visitors in the overall revenue stream. One-time revenue was generated from visitor and decreased the negative balance from -63 249 in 2005 to $38398, $96493, $-956009 and -$38602 in 2006, 2007, 2008 and 2009 respectively (J Naumes and W Lull, 2012). Visitors are also shown to have generated the most income for all fiscal years from admission, camps, group programs, facility rentals and other services.

Of the approaches on Course pack pp. 5-6, which best describe SSCs strategy

Position for Sustainable Competitive Advantage and SSCs Best Capabilities

Seacoast science center is structured and developed with an aspect of self-sustainability. The focus for the center is meeting its needs by showcasing resources available on its premises. For instance, the center provides a serene and extensive land of experience accompanied by dissemination of knowledge on how to co-exist with the wildlife in land, air and the sea. The center is unique in its field of expertise as no other organization offers exhibits and programs that SSC offers (Steingrimsson, Bilge, Heyer, & Seliger, 2011). However, the center still faces some competition from another center that offers museum services and historical exhibitions. Its best capabilities lie in its uniqueness of services offered. The center is a non-profit organization, and it reaches more people than most organization within the locality. The center offers unique live animal exhibits and a unique learning and interactive experience to visitors.

Effects of Increasing the Prices For SSC

Increasing prices would be beneficial to SSC for various reasons. Although the center might lose the number of visitors, the reduction would not be much signifying, and the effects of the decrease would be covered by the increased prices that visitors would pay (Guillou & Schiavo). Also, the decrease is likely to happen for some time after which it is probable that visitor count would increase again since the centers offer largely unique services and experience and, also because the increase is reasonable- an additional $3. However, the center might stand a risk of losing donors who might consider the rise as a selfish act and hence feel like they would be donating resources to a wrong course.

Scenarios Leaders Should Have Considered In 2007

The current time present factors that leaders would have considered in 2007 including the knowledge that people and institutions like schools allocate fewer resources to travel budgets. Leaders would have considered selling a learning experience to educational institutions (Parker & Pearson, 2013). Targeting learning institution is crucial as the centers specializes in teaching about wildlife, natural environment and ecology. It would also be crucial be plan programs that provide convince in travel distance and time for children for instance holding learning programs for one week during holidays. Opening of the Gregg interactive learning studies was an innovation to bridge the limitations of tight budgets, time and distance.

The $50,000 Question

It is manageable and ideally possible for the center to cover its operational expenses using the revenue generated. As Rosy suggests, it is helpful for the center to examine sources of resources within itself including raising the admission fees, increasing various charges that fees for attending exhibitions, offering lessons and holding special events among others (J Naumes and W Lull, 2012). The center still maintains its seasonal camping program that raises a significant percentage of its revenue. Being resourceful will assist in raising sufficient funds and hence cover the operational costs. Wendy argues that the perspective that one uses to comprehend the question determines the concept that one gets regarding the issue (J Naumes and W Lull, 2012). The $50,000 is not much of a real problem since the center has invented means to raise revenue that covers their expenses and does not entirely depend on unassured grants and bequests to balance the budget.

References

Guillou, S., & Schiavo, S. (n.d.). Export Prices and Increasing World Competition: Evidence from French, German, and Italian Pricing Behaviour. Innovation, Economic Growth and the Firm. doi:10.4337/9781781000632.00020

J Naumes, M., & W Lull, W. (2012). Seacoast Science Center: Sailing the Shoals. Case Research Journal, 32(1), 1-17.

Parker, M., & Pearson, G. (2013). What Should Business Schools Teach Managers? Business and Society Review, 118(1), 1-22. doi:10.1111/basr.12000

Peng, H. (2010). Analysis of E-business Model Classification Framework Based on Value Proposition. 2010 International Conference on E-Business and E-Government. doi:10.1109/icee.2010.929

Steingrimsson, J. G., Bilge, P., Heyer, S., & Seliger, G. (2011). Business Strategies for Competition and Collaboration for Remanufacturing of Production Equipment. Advances in Sustainable Manufacturing, 91-97. doi:10.1007/978-3-642-20183-7_14

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