I need a help here with below question:
An analyst sits down for a meeting with the management team of Luggo Corporation, who is describing their business. The CEO makes the following statement:
Luggo makes premium parts to secure wheels onto cars and trucks. We differentiate ourselves from our competitors by using premium designs and building our products from the finest titanium to ensure strength and light weight. We distribute our products through wholesalers that supply physical retail stores, and we price at parity with the market.
What parts of the business model did the CEO not describe?
Guideline solution:
The CEO did not describe the firm’s customers. This is one of the key attributes of a business model and describes how the firm segments its customer base and which segments it is targeting with its products. Customers can be segmented in numerous ways, including by their geography, demographics, seasonal or life-cycle timing, behavior, social group, and wealth. Segmenting allows companies to identify customer cohorts across geographies and combine them into larger homogeneous markets that are easier to access and penetrate using targeted marketing. Business opportunities often arise because established firms may not effectively serve—or even recognize—customer segments.
Apart from Customer, CEO also not considered "The key assets, partners, and suppliers the business requires (“how?”): Why did they not consider that in answer? If someone could please help me figure out. Thanks!