SimVenture has helped to understand and view business from a better perspective. In general, a business is analyzed for its market potential, sustainability degree, customer interests and competitiveness. However, the use of SimVenture has transformed this perspective. It has helped to analyze a firm from varied perspectives. It has informed the need for target segment analysis and development of rationale to support the same (Cruz, 2013). This makes the entire business appropriate for the market and informs the founders for the need of thorough analysis of target segment before introduction of business.
In the first business model canvas created for Zara, it informed the key resources, activities and the distribution channels followed by the brand to reach the customers. The key activities have informed the objectives of Zara and the current strategy also yields good returns to the firm. This is evident from the revenue streams and cost structure involved. There are few loopholes identified in this business model.
– Zara has tried to limit its distribution channels
– Zara can partner with different agencies to forecast the trend and engage in community building events
Owing these loopholes, the future business model canvas is built. This aims to fill all the issues faced now. Now, the target market is expanded to fashionistas and anyone who purchases regularly and wanted affordable products handy. The key resources also include the data analytics. As Zara has a strong base on the web, data analytics can inform the business about customer’s behavior and interests (Petro, 2012). The distribution channels are then expanded. Earlier, it remained only at its retailer shops and online sites. Now, it is expanded to emerging fashion brands and partnership in community events. This helps Zara reach more number of people. Global expansion of Zara shall now pool in the financial returns through varied means such as ads, affiliate marketing and it can also develop the technological base of the firm, overcoming the economic and trade consequences in the market.