Market opportunity+Business Model

Market Opportunity and Business Model Author’s Name The Institutional Affiliation Course Number and Name Instructor Name Assignment Due Date Table of Contents TOC \o "1-3" \h \z \u Market Opportunity Analysis PAGEREF _Toc180954151 \h 3Business Model Canvas PAGEREF _Toc180954152 \h 5References PAGEREF _Toc180954153 \h 9 Market Opportunity Analysis Increasing consumer environmental awareness has stimulated a move to sustainable living and has specific influences on the furniture market. With a USD 34.01 billion market valuation in 2023 and a predicted CAGR of 7.7% till 2030 (GVR, 2024). The acceleration of sustainable living is supported by this broader eco-friendly furniture market, which is forecast to show a CAGR of 8.6% from 2022 to 2030 (Grand View Research, 2024). However, a big market gap exists for stylish, cheap, sustainable furniture, a ripe chance for innovative businesses to generate value. Introducing an upcycled custom furniture subscription service responds to this market opportunity. This original model would let people subscribe to their own upcycled furniture pieces designed for their home aesthetic and space needs. It also provides the liberty to change furniture pieces occasionally without causing any environmental damage, which is generally brought about by new furniture purchases. Several innovative aspects separate the proposed subscription service from other service models. First, it supports sustainability by adopting a circular economy, which helps prolong the furniture life cycle, reducing the possible waste and the necessity to introduce new resources. Secondly, it promises unparalleled personalization, allowing users to pick a style that is then upcycled into a piece that reflects their taste, meeting a need that the second-hand furniture market still needs to fill. Finally, the model is particularly relevant to younger demographics and transient populations, such as renters or students, who may want to change style without significant long-term commitments. The furniture giants, notably IKEA and West Elm, compete in the eco-friendly and second-hand furniture market. When new sustainable furniture lines exist, the companies have established their lines, become well-known and established through their brands, and gain customer loyalty. The real threats to entry to this market include these entrenched brands taking up the bulk of market share and the possibility of consumer scepticism over whether upcycled furniture is up to a quality and durability standard (Fact.MR, 2023). Moreover, the PESTEL analysis below evaluates the macro factors of the industry below; Factor Opportunities Risks Political - Support for green initiatives and tax incentives for sustainable businesses. - Changes in import/export regulations affecting the supply chain. Economic - Growing economy boosts consumer spending on home decor. - Economic downturns could reduce discretionary spending on furniture. Social - Increasing consumer awareness and preference for sustainability (Fathurrahman & Zaim, n.d). - Possible scepticism about the quality/durability of upcycled furniture. Technological - Advancements in upcycling technologies and materials. - High costs associated with adopting new technologies. Environmental - Greater emphasis on reducing waste and carbon footprint (Fathurrahman &a...