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CHAPTER 2
THEORETICAL FRAMEWORK
2.1 Medical Knowledge
Based on the “Sociological Conceptualisation of Medical Knowledge
and Power” by Public Health Action Support Team, there has been a historical
development of medical knowledge from the early development of hospital-
based medicine in the late eighteenth and early nineteenth to the late
nineteenth century. Medical knowledge in the late eighteenth reflects a
timeline where significant changes takes place in the balance of power
between the doctors and their patients. During that time, patronage is no
longer required to be relied on by the medical elites, and the control of
medical knowledge shift from the patient to the clinician. As a result, many
new profession medicine consider hospitals as their training centers apart from
becoming sites for scientific research. (Public Health Action Support Team,
2011). Furthermore, medical knowledge in the late nineteenth century appears
to become what is called a new clinical gaze reflecting a timeline where
significant changes takes place in the social relationship of power between the
doctors and their patients. During that time, there has been an emergence of
medical term called laboratory medicine when the patients as the object of
profession medicine are no longer within the medical frame. (Public Health
Action Support Team, 2011).
According to MedicineNetInc (2016), conventional medicine refers to
all medicinal products, services, and practices that are carried out by qualified
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health professionals who hold medical doctor or doctor of osteopathy degrees
and by their allied health professionals such as registered nurses, physical
therapist or psychologists.
2.2 Non Medical Knowledge
According to MedicineNetInc (2016), Non medically presciption refers
to those patients who are neither medically prescribed nor require a
medicinally effect for them to recover from sickness. In general, non
medicinal knowledge or alternative medicine defines a specific term for any
medical products, services, and practices that can bring healing with almost
the same effects of medicine, but are not associated with standard scientific
healing and not being part of biomedicine. In this case, standard scientific
healing refers to standard care that are being provided by medical doctors,
nurses, and allied health professionals such as nurses and physical therapist.
MedicineNetInc (2016) states that non medical medicine is used in place of
standard medical care, for example not using standard approach to treat heart
disease. Furthermore, MedicineNetInc (2016) states that this non medical
practice or alternative medicine practice consists of a wide range of health care
practices such as homeopathy, traditional medicine, chiropractic, acupuncture,
naturopathy, and energy medicine.
2.3 Definition of Physiotherapy
Physiotherapy (PT) was last defined by the World Health Organization
(WHO) in 1969, as the “art and science” of providing exercise programs for
muscle strengthening, stretching and coordination as well as work with light,
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hydrotherapy, heat and cold, and providing massage and manual tests to
estimate the muscle strength, nerve supply, functional abilities, range of joint
motion and measure vital capacities.
Physiotherapy is a form of health care aimed to individuals and / or
groups to develop, maintain and restore movement and function of the body
throughout the life span using manual handling, motion improvement,
equipment (physical, and mechanical electro therapeutic) training function,
communication. In doing ministry, the physiotherapist can accept patients
directly or by referral from other health professionals. (Permenkes no 80,
2013)
Noronon and Wikstom (1999) claimed that physiotherapy is based
broadly on science and humanism, and that therapeutic relationships and
communication are as important as the techniques in achieving healing. It is
argued that such an approach to the person as lived is a corollary to the
profession’s commitment to client-led goals and the implicit need for the
client to take personal responsibility and be motivated in the rehabilitation
process (Becker G & Kaufman S, 1995)
2.3.1 Treatments of Physiotherapy
There are several forms of treatment that comes under the
umbrella term of physiotherapy; these principally, include massage
therapy, hydrotherapy, electrotherapy and exercises and movements.
(SPORT Medicine Information, 2009)
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1. Massage: Massage is generally suitable for all patients and the
form and firmness of the massage will be tailored to the particular
case. Massage involves patterns and sequences of hand
movements, which ease tension in the muscles and joints and
improve blood flow; massage therapy can also increase mobility
and flexibility which improves the range of movement in the joints.
2. Hydrotherapy: hydrotherapy commonly takes place in a
specialized pool but can be carried out in a normal swimming pool
as long as it is shallow and reasonably warm. During a
hydrotherapy session a physiotherapist will encourage the patient
to do exercises which, coupled with the pressure of the water, will
improve circulation and allow the muscles and joints to move more
freely. Other techniques such as water jets and massage may also
be used to stimulate nerve activity.
3. Electrotherapy: electrotherapy involves the use of controlled
electric shocks in order to increase nerve activity; the dosage is
very low and this procedure is not painful. Electrotherapy is used to
decrease muscle pain and aid muscle repair and regeneration. There
are two main types of electrotherapy; these are known as
transcutaneous electrical nerve stimulation and neuromuscular
electrical stimulation. Physiotherapists may also use technology
such as lasers and ultrasound to facilitate the healing process.
4. Exercise and Movement: one of the fundamental concepts of
physiotherapy is to improve the range of movement of joints and
muscles. Physiotherapists often use a variety of exercises and
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stretches to improve flexibility and reduce stiffness; some of these
exercises may also be done at home. The range of stretches will be
tailored to suit the individual and will usually require a gradual
build-up of exercise; commonly patients start with gentle activities
such as walking and swimming before moving on to more
physically challenging exercise. The stretches will usually be
carried out at least once daily for a period of weeks or months.
2.3.2 Most Common Conditions Treated by
Physiotherapy
Physiotherapy can effectively treat a number of conditions and
help patients return to a pain free, normal life. This treatment focuses
on restoring body function that has been affected by injury, trauma, or
disease. It helps relieve pain, prevent stiffness, enhance range of
motion, and improve strength, co-ordination and mobility.
Physiotherapy also prescribes fitness programs that will help prevent
loss of mobility. The five major areas of Physiotherapy are orthopedic,
geriatric, neurological, cardiovascular, and pulmonary rehabilitation,
and pediatric.
The lists below are wide variety of common conditions that
cause pain and treated by physiotherapy:
• Spinal Problems- including prolapsed discs, degeneration, sciatica,
lumbago, stiff/painful necks and referred arm and leg pains
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• Joint problems - arthritis, injury, pain/ swelling/stiffness in joints
such as shoulders, elbows, wrists, hips, knees and ankles.
• Injuries – to muscles, ligaments, cartilage and tendon problems.
Work related conditions such as Repetitive Strain Injury (RSI)
• After surgery – rehabilitation after orthopedic surgery eg:hip and
knee replacements or general physiotherapy after general surgery
• Fracture-treatments to increase the healing rate and to gain full
function once the bones have healed
• Abdominal problems- such as spastic colon, colitis and irritable
bowel syndrome.
• Gynaecological conditions including stress incontinence salpingitis
and surgery rehabilitation.
• Obstetrics- including ante and post natal classes/ exercise/
relaxation/ advice and treatment for back pain during pregnancy.
• Chest conditions both medical and surgical including hayfever,
asthma and sinusitis, pneumonia, cystic fibrosis. Emphysema,
bronchitis, bronchiectasis.
• Neurological conditions such as strokes, head injuries, nerve
injuries , multiple sclerosis, shingles, cerebral palsy and ME.
• Paediatrics-for childhood conditions including postural and
walking problems
• Circulatory problems- such as Reynaulds disease, wounds, ulcers,
cardiac rehabilitation
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2.3.3 Relation between Physiotherapy and Psychology
Arvinen-Barrow et al (2007) wrote the main of the
rehabilitation process is ultimately to treat the injury and to ensure
athletes’ full recovery to functional fitness as rapidly and safely as
possible. It has been recognized that some athletes experience
emotional difficulties during injury and that psychological issues can
have a significant impact on the quality and speed of the sport injury
rehabilitation process. More recent research suggests that not only do
psychological factors influence injury recovery, but athletes’ adherence
to the injury treatment proceeds is also affected.
It has been stated that medical professional in regular contact
with the athlete during treatment are in an ideal position to inform,
educate, and assist with both psychological and physical process of
injury. Drawing from existing literature, Kolt indicates that
physiotherapists are best suited to provide psychological assistance for
injured athletes for four main reasons: (1) they are usually the primary
caretakers who deal with injured athletes on a day to day basis; (2) it
appears that psychological issues are often discussed in conjunction
with physical aspects of rehabilitation; (3) the techniques used in
physiotherapist involves touch, which can facilitate athletes to open up
to their therapist about psychological issues of their recovery; and (4)
existing studies suggest that athletes themselves feel that
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physiotherapist are in an ideal situation to address the psychological
aspect of injury.
Although research suggests that physiotherapist are best
positioned to address psychological issues with injured athletes, during
their professional training, they may receive very little or no training in
terms of how psychological techniques can facilitate recovery
processes and how to use these techniques in their work. (Barrow,
Hemmings, Weigand, Becker, & Booth, 2007)
2.3.4 Physiotherapy in Indonesia
Started as a profession and then transformed into an
association. Going back to the roots in 1956, the School of
Physiotherapist was established in Solo by the Father of Physiotherapy
in Indonesia, Prof. Dr. Soeharso. He is also a pioneer in the field of
orthopedics expertise through the establishment of Prostheses &
Orthopedics Institution in Solo (IFI, 2015).
In June 10th 1968, Indonesian Physiotherapy Association called
IKAFI was created based on the desire of members and Prof. Dr.
Soeharso. In 1970, the first congress of IKAFI was held in Jakarta and
opened on behalf of the Minister of Health to produce Leadership and
work program until 1974. By the time of the year 1996, Indonesian
Physiotherapy Association (IKAFI) changed its name to IFI (Ikatan
Fisioterapi Indonesia) in the Makassar congress VII.
About the community service, it focuses mainly in the early
detection of child disability, and especially for the rehabilitation of
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patients after a disaster, such as earthquake disaster in Yogyakarta, and
tsunami in Aceh.
Furthermore, as a form of professional responsibility and
participation in the realization of The Independent and Healthy
Community, Indonesian Physiotherapy Association cooperates with
the government and all supporting parties to increase the competence
of professional development, through education, and regulations
necessary (IFI, 2015).
2.4 Consumer Behaviour
From theory on consumer behaviour (Schiffman et al., 2011)
consumer behaviour is defined as the behaviour that consumers display in
searching for, purchasing, using, evaluating and disposing of the products and
services that they expect will satisfy their needs. Consumer behaviour focuses
on how individual consumers, families, or households make decisions to spend
their available resources such as time, money, and effort on consumption-
related items. That includes what they buy, why they buy it, when they buy it,
where they buy it, how often they buy it, how often they use it, how they
evaluate it after purchase and use, the impact of such evaluations on future
purchases and how they dispose of it.
2.4.1 Cultural Factors
Schiffman et al (2011) states that culture is defined as the sum
of total of learned beliefs, values and customs that serve to direct the
consumer behaviour of members of a particular society. The belief and
value components of culture refer to the accumulated feelings and
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priorities that individuals have about behaviours, possesions, and
goals. More precisely, beliefs consist of the very large number of
mental or verbal statements that reflect our particular knowledge and
assessment of something. Values are also beliefs but differ from other
beliefs because they meet five criterias such as they are relatively few
in number, they serve as a guide for culturally appropriate behaviour,
they are enduring or difficult to change, they are not tied to specific
objects or situations and they are widely accepted by the members of a
society.
In contrast to beliefs and values, customs are overt modes of
behaviour that constitute culturally approved or acceptable ways of
behaving in specific situations. Customs consist of everyday behaviour
as well as accepted rituals around events such as Christmas or marriage
and weddings. By using the broad approach of beliefs, values, and
customs represented in cultural factor help us to predict likely
consumer acceptance of their products, service, or brands.
2.4.2 Social Factors
Schiffman et al (2011) states that sociocultural factors or values
is defined as abstract cognitions that can be measured via one of
several psychological or attitudinal instruments. They are the facts and
experiences that directly influence individual’s personality, attitudes,
and lifestyle. In addition, these factors and values can also be used to
provide a base for market segmentation. For measurement purposes,
these factors are a consumer’s abstract cognitions and can be measured
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via psychological tests. Sociocultural factors are more related to
consumer-rooted than that of consumption-specific one because they
represent consumer’s social characteristics, but does not represent
anything related to usage-behaviours or attitudes and preferences
towards specific products or buying situations.
2.4.3 Personal Factors
Schiffman et al (2011) states that personality is defined as the
unique, dynamic organisation of characteristics of a particular person,
physical and psychological, which influence behaviour and responses
to the social and physical environment. Of these characteristics, some
will be entirely unique to the specific person and others will be shared
with a few, many or all other people.
In addition, personality has three distinct components that are
of central importance includes personality reflects inidividual
differences, personality is consistent and enduring, and personality can
change. Schiffman et al (2011) states that individual’s personality are a
unique combination of internal factors, therefore no two people or
consumers are exactly alike. Nevetheless, many people tend to be
similar in terms of a single personality characteristic. Then, individual
personality tends to be both consistent and enduring, however, their
consumption behaviour often varies considerably because of the
various factors that affect behaviour. Although, individual personality
tends to be consistent and enduring, it may still change under certain
circumstances.
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2.5 Motivation and The Model of Motivational Process
From theory on consumer behaviour (Schiffman et al., 2011)
motivation is described as the driving force within individuals that impels
them to action. This driving force is produced by a state of tension that exists
as the result of an unfilled need. Individuals strive, both consciously and
subconsciously, to reduce this tension through behaviour that they anticipate
will fulfil their needs and therefore relieve them of the stress they feel. The
specific goals individuals choose and the patterns of action they undertake to
achieve their goals are the result of individual thinking and learning.
The model of motivation process, according to Schiffman et al (2011)
is the model that portrays motivation as a state of need-induced tension that
drives an individual to engage in behaviour that he or she expects will gratify a
need and therefore reduce the tension. The course of action being pursued will
determine whether gratification is actually achieve or not. For example, if a
primary school boy exoects to become a great football player by wearing the
brand of footballers that Christiano Ronaldo wears, he is likely to be
dissapointed, if he takes football course and practices diligently, he may
succeed.
In addition, the specific course of action being pursued, and the
specific goals, are chosen on the basis of their thinking process such as
cognition and previous learning such as experiences. For those reasons, most
of the time, consumers are being influenced from their cognitive processes that
attempted by marketers who fully understand motivational theory.
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Figure 2.1_ Model of the motivation process Source: Schiffman et al (2011)
2.6 Physiotherapy Centre
According to Clinical Establishment Act (2010) a physiotherapy centre
is a paraclinical establishment providing physical therapy services by a
physiotherapist to patients with a recent prescription or referral from a
licensed medical doctor (physician/surgeon). After three weeks or earlier if
indicated a review and re-prescription from the treating medical doctor is
required for continuing physical therapy services. The physical therapy
services are highly varied from manual services using hand by the
physiotherapist to the automatic one using high tech technology equipments.
2.7 Business Model Creation
From theory on business model creation (Osterwalder & Pigneur,
2010) a business model describes the rationale of how an organization creates,
delivers, and captures value. It is essentially used on the starting point for any
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good discussion, meeting, or workshop on business model innovation to share
the same understanding about the description and discussion of the product.
The challenge is that the concept must be simple, relevant, and intuitively
understandable, while not oversimplifying the complexities of how enterprises
function.
In addition, a business model is the “core content” or the “short story”
of the company (actual or prospective). A business plan is the “guideline for
the action” or the “full story”. (Marrero, 2010) Why are we using the BMC for
our Theoretical Framework? It is because business model innovation is one of
the least used and most powerful ways to create sustainable profit growth,
economic development and create new ‘markets’ and ‘industries’. (Scofield,
2010)
Osterwalder & Pigneur (2010) also mentioned the purpose of a
business plan is to describe and communicate a for-profit or non-profit project
and how it can be implemented, either inside or outside an organization, The
motivation behind the business plan may be to “sell” a project, either to
potential investors or internal organizational stakeholders. A business plan or
as we call it the business model canvas, as shown on figure 2.2 may also serve
as an implementation guide.
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Figure 2.2 The Business Model Canvas Source: Business Model Generation website (2015)
A business model can best be described through nine basic building
blocks that show the logic of how a company intends to make money. The
nine blocks cover the four main areas of a business: customers, offer,
infrastructure, and financial viability. The business model is like a blueprint
for a strategy to be implemented through organizational structures, processes,
and systems. It combines creativity with a structured approach, the best of
both worlds (Baida, 2010). Furthermore, it begin with the end in mind while
taking the end client perspective (Burrow, 2010).
Here is the explanation for the nine building blocks as shown in figure
2.2, it consists of:
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1) Customer Segments
The customer segments building block defines the
different groups of people or organizations as enterprise
aims to reach and serve (Osterwalder & Pigneur, 2010).
Customer groups represent separate segments if:
• Their needs require and justify a distinct offer
• They are reached through different Distribution
Channels
• They require different types of relationships
• They have substantially different profitabilities
• They are willing to pay for different aspects of
the offer.
There are different types of Customer Segments. Here
are some examples:
• Mass market: this type of business model is
often found in the consumer electronic sector,
because it does not distinguish between different
Customer Segments. It is more focusing on one
large group of customers with broadly similar
needs and problems.
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Niche market: such business models are often
found in supplier-buyer relationships, for
example, many car part manufacturers depend
heavily on purchases from major automobile
manufacturers. It targets niche markets of
specific, specialized Customer Segments.
• Segmented: this type of business model
distinguish between market segments with
slightly different needs and problems. For
example the retail arm of a bank like Credit
Suisse, it serves three different Customer
Segments: the watch industry, the medical
industry, and the industrial automation sector,
and offers each slightly different Value
Propositions.
• Diversified: this type of business model serves
two unrelated Customer Segments with very
different needs and problems, for example
Amazon with its book retail and cloud
computing services, which are two different
kind of products.
• Multi-sided Platform: this type serves two or
more interdependent Customer Segments. Both
segments are required to make the model work.
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2) Value Propositions
Demonstrated by Osterwalder & Pigneur (2010) the
value propositions building block describes the bundle
of products and services that create value for a specific
Customer Segment. Elements from the following non-
exhaustive list can contribute to customer value
creation:
• Newness: some Value Propositions satisfy an
entirely new set of needs that customers
previously didn’t perceive because there was no
similar offering.
• Performance: improving product or service
performance has traditionally been a common
way to create value.
• Customization: Tailoring products and services
to the specific needs of individual customers or
Customer Segments creates value. This
approach allows for customized products and
services, while still taking advantage of
economies of scale.
• “Getting the job done”: Value can be created
simply by helping a customer get certain jobs
done.
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• Design: this is an important but difficult element
to measure. A product may stand out because of
superior design.
• Brand/Status: customers may find value in the
simple act of using and displaying a specifi
brand.
• Price: offering similar value at a lower price is a
common way to satisfy the needs of price-
sensitive Customer Segments, but low-price
Value Propositions have important implications
for the rest of a business model.
• Cost reduction: helping customers reduce costs
is an important way to create value.
• Risk reduction: customers value reducing the
risks they incure when purchasing products or
services.
• Accessibility: making products and services
available to customers who previously lacked
access to them is another way to create value.
This can result in new technologies.
• Convenience/Usability: making things more
convenient or easier to use can create substantial
value.
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3) Channels
Osterwalder & Pigneur (2010) found that the Channels
Building Block describes how a company
communicates with and reaches its Customer Segments
to deliver a Value Proposition. Channels serve several
functions, including:
• Raising awareness among customers about a
company’s products and services
• Helping customers evaluate a company’s Value
Proposition
• Allowing customers to purchase a specific
products and services
• Delivering a Value Proposition to customers
• Providing post-purchase customer support
Channels have five distinct phases. Each channel can
cover some or all of these phases. We can distinguish
between direct Channels and indirect ones, as well as
between owned Channels and partner Channels. These
Channel Types are:
Own by the company:
• Sales force (direct)
• Web sales (direct)
• Partnerships
Own stores (indirect)
Partner stores (indirect)
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Wholesaler (indirect)
Afterwards, here are the Channel Phases:
1. Awareness: how do we raise awareness about
our company’s products and services?
2. Evaluation: how do we help customers evaluate
our organization’s Value Proposition?
3. Purchase: How do we allow customers to
purchase specifi products and services?
4. Delivery: How do we deliver a Value
Proposition to customers?
5. After sales: How do we provide post-purchase
customer support?
4) Customer Relationships
The Customer Relationships Building Block describes
the types of relationships a company establishes with
specific Customer Segments. As has been shown
Osterwalder & Pigneur (2010) Customer Relationships
may be driven by the following motivations:
Customer acquisition
• Customer retention
• Boosting sales (upselling)
We can distinguish between several categories of
Customer Relationships, and they are:
• Personal assistance
• Dedicated personal assistance
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• Self-service
• Automated services
• Communities
• Co-creation
5) Revenue Streams
Osterwalder & Pigneur (2010) posited that the Revenue
Streams Building Block represents the cash a company
generates from each Customer Segment (costs must be
subtracted from revenues to create earnings). A business
model can involve two different types of Revenue
Streams:
1. Transaction revenues resulting from one-time
customer payments
2. Recurring revenues resulting from ongoing
payments to either deliver a Value Proposition
to customers or provide post-purchase customer
support.
Here are several ways to generate Revenue Streams:
• Asset sale: selling ownership rights to a
physical product.
• Usage fee: generated by the use of a particular
service. The more a service is used, the more the
customer pays.
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• Subscription fees: this type of Revenue Stream
is generated by selling continuous access to a
service.
• Lending/Renting/Leasing: created by
temporarily granting someone the exclusive
right to use a particular asset for a fixed period
in return for a fee.
• Licensing: this Revenue Stream is generated by
giving customers permission to use protected
intellectual property in exchange for licensing
fees. It allows rightsholders to generate revenues
from their property without having to
manufacture a product or commercialize service.
6) Key Resources
The Key Resources Building Block describes the most
important assets required to make a business model
work, as Osterwalder & Pigneur (2010) demonstrated,
Key Resources can be categorized as follows:
• Physical: it includes physical assets such as
manufacturing facilities, buildings, vehicles,
machines, systems, point-of-sales systems, and
distribution networks.
• Intellectual: this resources are difficult to
develop but when successfully created may offer
substantial value.
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• Human: crucial in knowledge-itensive and
creative industries.
• Financial: some business models call for
financial resources and/or financial guarantees,
such as cash, line of credit, or a stock option
pool for hiring key employees.
7) Key Activities
Osterwalder & Pigneur (2010) found that the Key
Activities Building Block describes the most important
things a company must do to make its business model
work. Key Activities can be categorized as follows:
• Production: these activities relate to designing,
making, and delivering a product in substantial
quantities and/or superior quality.
• Problem solving: Key Activities in this type
relate to coming up with new solutions to
individual customer problems.
• Platform/Network: business models designed
with a platform as a Key Resource are
dominated by platform or network related Key
Activities. Platform management, service
provisioning, and platform promotion are all
related with this type of Key Activities.
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8) Key Partnerships
The Key partnerships Building Block describes the
network of suppliers and partners that make the
business model work, this explained from theory on
Key Partnerships (Osterwalder & Pigneur, 2010). We
can distinguish between four different types of
partnerships:
1. Strategic alliances between non-competitors
2. Coopetition: strategic partnerships between
competitors
3. Joint ventures to develop new businesses
4. Buyer-supplier relationships to assure reliable
supplies
These points can be useful to distinguish between three
motivations for creating partnerships:
• Optimizaton and economy of scale: the most
basic form of partnership or buyer-supplier
relationship is designed to optimize the
allocation of resources and activities.
• Reduction of risk and uncertainty:
partnerships can help reduce risk in a
competitive environment chracterized by
uncertainty.
• Acquisition of particular resources and
activities: few companies own all the resources
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or perform all the activities described by their
business models.
9) Cost Structure
According to Osterwalder & Pigneur (2010) the Cost
Structure describes all costs incurred to operate a
business model. Here are types of the Cost Structures:
• Cost-driven: it focus on minimizing costs
wherever possible. This approach aims at
creating and maintaining the leanest possible
Cost Structure, using low price Value
propositions, maximum automation, and
extensive outsourcing.
• Value-driven: some companies are less
concerned with the cost implications of a
particular business model design, and instead
focus on value creation.
• Fixed costs: costs that remain the same despite
the volume of goods or services produced.
• Variable costs: varies proportionally with the
volume of goods or service produced. Some
businesses, such as music festivals, are
characterized by a high proportion of variable
costs.
• Economies of scale: cost advantages that a
business enjoys as its output expands. Larger
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companies, for instance, benefit from lower bulk
purchase rates. This and other factors cause
average cost per unit to fall as output rises.
• Economies of scope: cost advantages that a
business enjoys due to a larger scope of
opertaions. Distribution channels, for example
may support multiple products.
2.8 Internal and External Analysis
In order to perform an anlysis on internal and external environment,
SWOT analysis as shown in figure 2.3 (Strength, Weakness, Opportunity and
Threat analysis) need to be done. According to Peteraf (1993), SWOT analysis
is a simple but powerful tool for sizing up a company’s internal strengths and
competitive deficiencies, its market opportunities, and the external threats to
its future well-being. Here are a brief explanations about each of the factors:
• Strengths: the internal factors that aides the idea to reach the goals set.
• Weaknesses: the internal factors that could become obstacles for the
idea to reach the goals set.
• Opportunities: external environmental factors that create in roads to
achieving success either for the company or to the specific project.
• Threats: the external elements that can cause trouble for the company.
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Figure 2.3 FUNsiotherapy SWOT Analysis Source: writer (2016)
2.9 Marketing Strategy
A strategy that combines all of its marketing goals into one
comprehensive plan is the definition of marketing strategy from Kottler and
Keller (2013). A good marketing strategy should be drawn from market
research and focus on the right product mix in order to achieve the maximum
profit potential and sustain the business. Moreover, it is the foundation of a
marketing plan.
Ini this paper, our team would utilize two marketing strategy, that is
STP analysis for a start, then followed by Marketing Mix tools.
2.9.1 STP Analysis
The STP Analysis is divided into three parts, Market
Segmentation, Target Market and Positioning of the service. Each part
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would determine how the company offers their service to the public
(Kottler and Keller, 2013)
• Segmentation
Segmentation identifies all segments available for the service,
where the objective is to find attractive market for the service.
Market segments are defined into four descriptive
characteristics: Geographic, Demographic, Psychographic, and
Behavioral segmentations:
1. Geographic Segmentation: divides the market
into geographical units such as nations, states,
regions, countries, cities or neigborhoods.
2. Demographic Segmentation: divides the
market on variables such as age, family size,
family lifecycle, gender, income occupation,
education, religion, race, generation, nationality,
and social class.
3. Psychographic Segmentation: divide
consumers into groups of the basis of
psychological / personality traits, lifestyle or
values.It also includes lifestyle and personality,
4. Behavioral Segmentation: divide consumers
into groups on the basis of their knowledge of,
attitude towards, use of or response to a product.
This includes segmentation by behavioral
occasions, and segmentation based on benefits.
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• Targeting
Targeting is the actual goal and objective in market that
marketer would like to reach.
• Positioning
Positioning is an analysis to know the position of the service
compared to other similar service.
2.9.2 Marketing Mix
Marketing mix modeling focuses on incremental growth
instead of baseline sales or long term effects (Kottler and Keller, 2013)
Our team utilize the 7Ps marketing mix that consists of: Product, Price,
Place, Promotion, People, Physical Evidence, and Process. These
seven controllable elements need to be set to serve the needs of the
customer to earn the optimum income.
• Product: defines the type of product and services that the
company offers, whether or not the products and services are
suitable for the market.
• Price: defines the price set to purchase the product or service.
• Place: gives a definite info about the location and the place
where your product or service is actually sold.
• Promotion: explain all the ways you tell your customers about
your products or services and how you do you manage to
market and sell it.
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• People: defines the people inside and outside of your business
who are responsible for every element of your slaes and
marketing strategy and activities.
• Physical Evidence: explains the way the company presents
their product or service to the customers.
• Process: how to deliver the product or service to the customer?
2.10 Business Plan
Based on definition from (Ehmke & Akridge) business plan is a
process of writing down what is involved in bringing your idea to reality
requires dealing with the why, what, who, how, where, when, and how much
of your venture. Further explanation about our business plan will be written in
Chapter 3.
2.11 PESTEL Analysis
The PESTEL Analysis is used to screen and analyze the external
marketing environment of a company. The PESTEL analysis is divided into
six different factors that can affect the company strategies as a whole,
therefore its very important to follow the pestle framework analysis in order to
assess how exactly the company performance is being influenced by those
factors. The six factors include political factors, economic factors, social
factors, technological factors, legal factors, and environmental factors.
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Figure 2.4 The PESTEL Framework Source: Porter (2008)
2.11.1 Political Factors
According to PESTEL Analysis (2016) Political factors
refers to how government regulations and legal issues affect a
company ability to be profitable and successful. These factors
take into account the political situation of a country and the
world in relation to the country. Some of the major political
factors include tax policy, trade regulation, and stability of
government. For example, all the policies, all the taxes law and
every tariff that a government levies over a trade falls under
political factors.
2.11.2 Economic Factors
According to PESTEL Analysis (2016) Economic
factors examines the outside economic issues that can play a
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role in a company’s success. Economic factors include all the
determinants of an economy and its condition such as the
inflation rate, the interest rate, the monetary fiscal policies, the
foreign exchange rates that affect imports and exports. All of
these factors in which an economy might move, therefore its
important to analyze these factors based on their environment
so as to build strategies that fall in line with all the changes that
are about to occur.
2.11.3 Social Factors
According to PESTEL Analysis (2016) Social factors
examines the demographic and cultural aspects of the
company’s market. Every country is different and every
country has a unique mindset, thus these mindsets cast an
impact on the business and the sales of their product and
services. Some of the major social factors include demographic,
population growth rate, age distribution, lifestyle issues where
all of these are carefuly studied by companies to understand the
market and the consumer better.
2.11.4 Technological Factors
According to PESTEL Analysis (2016) Technological
factors takes into consideration technology issues that affect
how an organization delivers its products or services to the
marketplace. This is because technological factors greatly
influence a business. Technology changes every minute and
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therefore companies need to stay connected along the way and
integrated as and when needed. Some of the technological
factors include new discoveries and innovations, the life cycle
of current technology, and the role of the internet. These factors
are analyzed to understand how the consumers react to
technological trends and how they utilized them for their
benefit.
2.11.5 Legal Factors
According to PESTEL Analysis (2016) Legal factors
refers to the legal and legislative issues that may change from
time to time and many of them may effect the company
directly. For example, if a regulatory body would set up a
regulation for the industries, then that law would impact all the
industries and business that strife in that company, therefore
business also analyze the legal developments happening in their
environment.
2.11.6 Environmental Factors
According to PESTEL Analysis (2016) Environmental
factors refers to the rate of different industries in a country may
affect the company either in a positive way or negative way.
Environmental factors include geographical location, the
climate, the weather, waste disposal laws, environmental
protection laws, and energy consumption regulation.
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