Analyse and discuss the marketing strategy used by Starbucks

Analyse and discuss the marketing strategy used by Starbucks Marketing is an essential part of a business strategy that can affect people view about a brand and this essay will duly demonstrate the effectiveness of Starbucks marketing strategy, particularly sensory marketing in attracting new young customers. There are numerous marketing techniques in todays business, different companies use different strategies, in order to sell its products to customers. One of the marketing techniques that became an object of discussion in a few companies is sensory marketing. It is important that companies understand sensory marketing for their business and how it will influence their marketing strategies in attracting new customers. Starbucks is a famous coffee company that has been implementing sensory marketing in their strategies for a few years. This essay will begin by, firstly, describing five senses included in sensory marketing and their relations to customer perception. Secondly, case studies in two Starbucks special outlets in creating comfortab le ambience will be introduced. Thirdly, we will discuss the importance of customer service, which can create customers experience through their senses. Fourthly, Starbucks online marketing strategy that matches with the evolution of todays technology. Lastly, we will analyse Starbucks sensory marketing strategy with its effectiveness to attracting new young customers. At the beginning we have to understand sensory marketing, and why it is necessary and how it influences customer perception of a product. Sensory marketing is a technique using five human senses to promote products, which has to be unique, authentic, and people can easily remember your brand (Bhargava, 2008, 208). Five senses which humans have are sight, sound, taste, smell, and touch; these senses can be used for persuading customers to interest its products. The sense of sight is the most seductive senses that humans have and human logic can be persuaded by this sense, therefore it is most widely used by companies in their marketing strategy. The other senses that not less important are taste and smell. These two senses are closely connected, which are very important in food and beverages business, because these senses enable the brain in creating memorable sensation in human minds. The sense of smell can turn-off other senses if customers have bad experience in smell. The last two senses that companies might consider are sense of sound and touch, which can help companies to give more experiences for customer about a product.Therefore, companies can utilise senses for their strategy to maintain customers as well as attracting new customers. One of the key points of Starbucks sensory marketing strategy is the appearance of their outlets that can maintain their customers to have a good perception about the brand as well as attract new customers. Starbucks marketing strategy, most of the time, concern customer experience, which involves customer senses through personal value and meaningful connection (Michelli, 2007, 11). The sound of the barista, who is a coffee preparer, working with the coffee machine and the smell of brewed coffee aroma are memorable moments related to our senses and naturally stored in customers memory. This ambience setting made their customers always visit the outlet and create Starbucks outlet to be the third place between work and home (Michelli, 2007, 103). The new Starbucks outlet concept in Central London, which opened in November 2009 can be a case study. The new concept is to provide a comfortable place in order to meet customer expectations including a beautiful environment and a new Starbuc ks experience Moreover, until 2006 Starbucks had opened four Starbucks Hear Music Coffeehouse, which are special outlets for its segmented customers (Starbucks, 2006). The main idea is to fulfil customers passion about music, i.e. using the hearing sense to reach customer experience with the Starbucks. Consequently, in every business development, Starbucks always tries to use sensory marketing to be their strategy to attract customers. Furthermore, other important part of the Starbucks sensory marketing strategy is customer services, which led Starbucks to be on the top of customers minds when thinking about places to have coffee, and it is created from customer experience with their senses. When customers enter Starbucks outlets they feel that they have a different experience, everybody feels welcome and regulars are normally recognised by the employees. Moreover, some of Starbucks employees try to remember their names, their jobs, and their favourite drinks (Michelli, 2007, 23). This situation made customers feel that they have a special relationship more than just fulfil their needs to buy a coffee. Starbucks have a service motto named make it on your own. This service allows customers to create their own coffee in order to meet their expectation in taste. In food and beverages business, taste and smell are two important parts to be required because different customers have different expectations in their taste and smell. Starbucks carefully considers, understands and delivers this to its customers with customisation in their drinks and provides various sizes of cups. Starbucks has put these strategies into primary strategy by using human senses to meet their needs and expectations. In recent years, technology has become more necessary and Starbucks follows these needs by providing resources, which can create more experience with their customers through sense of touch, sight, and sound.. Nowadays, we can see people using their smart phones, laptops, iPods, and many other smart devices that connect to the Internet during the day on a regular basis., Since first of July this year, Starbucks in America started to provide free Wi-Fi connection for its customers and launched Starbucks Digital Network content, that give enables its customers to access the premium partners such as iTunes, The New York Times, Patch, USA today, The Wall Street Journal, Yahoo!, and Zagat Meanwhile, the growth of social media such as Facebook, Twitter, and even Foursquare, forced Starbucks to be a part of these communications evolution in using technologies. Moreover, Starbucks has its own website called My Starbucks Idea, which allows their customers to give their idea, opinion about some ones idea, and join the discussion. These online marketing strategies are still related with their sensory marketing strategy that put together the sense of touch, sight, and sound, in order to meet young customers needs, who might only choose Starbucks to browse the internet, listen to music, or to go on facebook and twitter. Starbucks sensory marketing strategy has succeeded in maintaining its customers as well as attracting new ones, particularly young generations, and matched with the spirit of company innovation to inspire and support young people. The Starbucks website (2010) states that their goal is to engage 50,000 young people, who will in turn innovate, take action, and inspire 100,000 individuals in their communities by 2015; this means that Starbucks combines their strategy with social responsibility, which will be considered as a respectable company amongst the young people. On The Next Web website Noff (2010) discovered that Starbucks has over 705,000 followers on twitter and over 5,428,000 fans on Facebook. You could say that they are doing something right on the web, this fact shows that Starbucks has many loyal customers and most of them are the Internet users, especially young people. Starbucks also runs loyalty programs to attract young customers. Therefore, Starbucks sensory marketing strategy is considered as an effective strategy that has strong relationship with senses to attract new customers, particularly young customers with their spirit and innovative characteristics. In conclusion, this essay has demonstrated the effectiveness of Starbucks sensory marketing strategy to attract new young customers by analysing and discussing its relation the five human senses. Starbucks uses the five senses to make memorable experiences for its customers, particularly through their online marketing strategy, which satisfies young customers needs in adapting technology. Todays technology, such as social media and music content which are mainly used by young people, delivers new experience for customers. In fact, we can see this achievement from the number of fans on their Facebook and followers on Twitter. Starbucks has created emotional connection with its customers, uniqueness in make it on your own coffee, and attentive to details in every aspect of the outlet ambience. In comparison to other companies, Starbucks advertising and promotions expense is relatively small, they have always focused their budget on connecting the customers experience with the five huma n senses. The key point of their success in using sensory marketing is applying it consistently for a long period with passion throughout their everyday services. Customer experience is an intangible asset and very valuable, which made the Starbucks brand become a top operator in the coffee business.

Sultan Abdul Samad Building

ASSIGNMENT 1 NAME:MUHAMMAD HAZIQ B. NOR KURNIA SHAH ID:01-201111-00642 SUBJECT:HISTORY OF ARCHITECTURE (ADA 133) SEMESTER:JANUARY 2013 HISTORY OF SULTAN ABDUL SAMAD BUILDING After the Sultanate of Selangor became a British Protectorate, the British Administration wanted to build a government office to govern the state efficiently. At that time, the Capital of Selangor, Klang is not a strategic location for administration as it is too far from the more developed area like Kuala Lumpur. The Sultan Abdul Samad who ruled from 1857 to 1898 later consent to change the State Capital from Klang to Kuala Lumpur.When Kuala Lumpur became the Capital of Selangor, it only consists of several streets of shop houses and several non-prominent government office buildings. Thus, the Resident of Selangor at that time, W. E Maxwell wanted the new government office to be a prominent landscape of Kuala Lumpur. The idea and architectural design has started as early in 1889, when Maxwell invited an English Architect Arthur Charles Alfred Norman as State Architect and C. E Spooner from Ceylon as State Engineer. The original plan of the building from Norman was adapting the Classical English Rennaisance concept.But, Spooner does not satisfy with the design. Later, a young architect named Bidwell has made a modification with Norman design, adapting the Mahometan style concept of Moor and Moghul design as the main architectural design of the building. The building construction was commissioned in 1894. On October 6, 1894, the ground breaking ceremony of the building was done by the Governor of Straits Settlements, Sir Charles B. H. Mitchell. The estimated cost of the construction was $152,000 and will take 2 years and 7 months to complete.After the construction fully completed on April 1897, the real expenses was $152,824. The building materials were delivered from masonry in Brickfield. The building was inaugurated by the Resident-General of the Federated Malay States, Sir Frank Swettenh am on April 4, 1897 and was known as the New Government Office. Among the offices that been located here were Government Secretariat Office, State Council Chamber, Post Office, Sanitary Board, Judicial Commissioner, Public Work Department and District Office.In 1948, when the Federation of Malaya was formed to replace Malayan Union, the building was renamed as Federal Secretariat. The building still retains its function after the independence of Malaya in 1957 and the formation of Malaysian in 1963. It is until 1974 where all of the State of Selangor Government offices were relocated to Shah Alam. The Federal Government also relocated its office to new building at Jalan Duta. And, for the first time, the building was renamed Bangunan Sultan Abdul Samad.A major renovation works takes place in 1978, takes 6 years to complete with an expenses of RM 17. 2 million. The roof was change into a new one, and the wooden dome was change with a copper dome. The Supreme Court, Appeal Court and M alaya High Court were placed here in 1978 before it had been relocated in 2007 at a new complex in Jalan Duta. The Ministry of Information, Communications and Culture of Malaysia currently occupied the building. KUALA LUMPUR ATTRACTIONS The Sultan Abdul Samad Building is among Kuala Lumpur’s earliest Moorish-style buildings.It is set to the east of Merdeka Square (Dataran Merdeka) and the Royal Selangor Club, across from Jalan Sultan Hishamuddin. It was built in 1897 and was named after the reigning sultan of Selangor at the time. The distinguished landmark originally served as the secretariat for the colonial British administration. Designed by AC Norman, the architect responsible for Masjid Jamek (Jamek Mosque), the historically-significant building used to house the superior courts of Malaysia: the Federal Court of Malaysia, the Court of Appeals and the High Court of Malaya, before they moved to Putrajaya.Sultan Abdul Samad Building’s Design Sultan Abdul Samad Build ing is now home to the Ministry of Information, Communications and Culture of Malaysia and sits beside the old KL Railway Station. Though it no longer serves an official purpose, it remains one of the city’s most important tourist attractions and a historical landmark in the city. Constructed entirely of brick, the building features strong gothic, western and Moorish-style influences with an imposing porch, graceful arches, curved colonnades topped with shiny copper cupolas and a domineering 41. m- high clock tower. It is frequently seen as the backdrop for Malaysia’s annual Independence Day parades (which take place past Dataran Merdeka). EVENT A historical event witness by the building is when Malaya achieving her independence from United Kingdom in 1957. This is the place where the Union Jack flag was replaced by Jalur Gemilang for the first time. It is also a venue of New Year Celebration every January 1 and Independence Parade every August 31. It is also the place of Trooping the Colour ceremony and Warriors Day Celebration.

Assignment Working Capital Essay

Abstract In this paper I’ll analyze the fundamental differences between the working capital structures and components for Google and Oracle, and speculate upon the main reasons why such differences exist; how each company could improve its working capital positions. As a Wall Street Analyst who has to recommend one of the companies as an investment to a company’s clients; based solely on that company’s working capital; as an Investment Banker who has to recommend loaning a substantial amount of capital to one company based solely on that company’s working capital. Working capital structures The selected companies that I have selected to compare are Google and Oracle. Google Inc. is a company that specializes on providing online tools such as search, differences between the working capital structures and components for each chosen company. Oracle Corporation is responsible for developing, marketing, and servicing of database and middleware software, system hardware and software applications. The company also offers consulting services in areas such as business architecture planning and design, and enterprise and information technology alignment. Both Google Inc. and Oracle Corporation have been performing well thus investments can be made in the companies. In the financial year 2014 Google Inc. had a net income of $16.86 million, an increase of 17% compared to the previous year. The net profit margin for the company was registered at 29%. (morningstar.com)The balance sheet provides that the Morningstar.com had total asset amounting to 72.89 million which is an increase f rom previous year. Total organizational profits were amounting to 110.9 million and shareholders’ equity of 87.31millions. The financial ratios for the company indicate that the company had a debt to equity ratio 0.05 indicating that its equity is enough to cover debt. The current ratio for the year 2014 was 8.0 showing that current liabilities cannot be fully covered by the current assets. Another financial ratio indicating company financial condition is book value per  share which amounted to $145.68. Investment return ratios include return on equity of 14.80%, return on assets of 11.65% and return of capital of 18.1 indicating that the company is adequate using its assets and equity to generate returns for the company. Morningstar (2014) provides that Google had a price earning of 18.88 and earnings per share of 27.72 indicating that income is high. In order to determine the risk of investing in the company I identified the beta value which is provided at 0.91. (morningstar.com) On the other hand Oracle Corporation registered 28.62% decrease in net income in 2014 which is .7% increase compared to 2013. The net profit margin for the compared is established at 81.09%. The total assets in the company as at 31st May 2014 was $ 99,726.00 indicating a strong asset base while the total liabilities amounted to $13,377.00 and shareholders’ equity was valued at $ 47.93 million. The financial condition in Oracle can be identified using financial analysis such as current ratio which is determined to be 2.8 for the company showing that current liabilities are greater compared to current assets. The debt to equity ratio is determined to be 0.40 thus the company is able to meet its debts as and when it arises. Interest coverage is provided at 16.4 while book value per share is 10.50. Oracle’s return on equity for the financial year 2014 was 23.4, return on assets 12.13% was while return on capital was 17.42 thus the company is effective in generating returns for equity. The diluted earnings per share is 2.38 and the beta value is provided at 2.39. (Morningstar.com) Improve working capital Improving working capital position, a company is able to compare from year to year any increase in revenue; increase in production due to a decrease in variable or fixed costs, increase in sales due to a new sales workforce and any increase in liabilities; new short term creditors, a higher accounts payable account due to the need to purchase new materials. A company can improve its working capital by trying to keep a healthy balance between the two accounts, cutting costs, and analyzing its current short-term debt in terms of how to decrease it or find alternative ways to avoid it such as restructuring production procedures. (Schroeder, el. 2014) Role of a Wall Street Analyst As Wall Street Analyst deciding which company to invest in I would determine  whether the company is stable financially, investment returns and risks associated with the investments. Gross working capital means the amount invested in the current assets of the company.Net working capital means the difference between the current assets and current liabilities. If the current assets are more than the current liabilities, then it is positive working capital. Otherwise, it is negative working capital. Working capital is the measure of company’s solvency, its ability to pay its suppliers without any delay. Considering these factors I would invest in Google since it has higher earnings per share and an investor is likely to receive higher returns when dividend is paid. Google has registered stronger growth compared to Oracle evidenced by increase in profit levels. (Schroeder, el. 2014) Investment Bank As an Investment Bank whom with solely working capital by increase in current assets is the outflow of cash and when the company increases its current liabilities, it is inflow of cash. If the changes in working capital are negative, it means the company is heavily investing on current assets or reducing the current liabilities. When the changes in working capital is positive, it means the company is selling of current assets or increasing its current liabilities. I would especially invest in Google’s bonds compared to stock since bonds have a guaranteed rate of interest thus I would be receiving returns after an agreed period. Selection of bonds over stock is supported by the fact that the company has a lower beta vale compared to Oracle thus it has less risk to default on the loan. (Schroeder, el. 2014) References Google Inc. Financials Report Retrieved November 16, 2014 http://financials.morningstar.com/ratios/r.html?t=GOOG Msn. (2014). Oracle Corporation. Financial Results. Retrieved November 16, 2014 from Http://Moneycentral.Msn.Com/Investor/Invsub/Results/Statemnt.Aspx?Lststatement=Balance&Symbol=Us%3aorcl&Stmtview=Qtr Oracle Corporation Financials Report Retrieved November 16, 2014 http://financials.morningstar.com/ratios/r.html?t=ORCL Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2014). Financial Accounting Theory And

The Amendment Act Of The United States - 1669 Words

In 1787 amidst much turmoil in the new American colonies, delegates of the Continental Congress drafted a brand new document. Our Constitution was written with the intent of providing a strong centralized government which had not existed previously under the Articles of Confederation. One thing lacking in the Constitution was statement of citizens rights. Under British rule, enforcement of rules such as the Stamp Act were often without reasonable suspicion and left colonists feeling as though the British could do whatever they wished. It took a few years for this to finally be changed and when completed, the Bill of Rights was a protection of citizen s â€Å"unalienable† and â€Å"natural† rights. The Bill of Rights As I have said previously, the Bill of Rights was a means of protecting citizens rights which they were entitled to anyway. Among these protections were the freedom of religion, speech and of the press. Additionally, citizens were guaranteed due process of law and protection against unlawful intrusions into their privacy. Specifically, what protects us against unlawful intrusion today is the Fourth Amendment to the Bill of Rights. Search and Seizure Specifically, the Fourth Amendment reads The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to beShow MoreRelatedThe Amendment Act Of The United States1030 Words   |  5 Pages While there are many amendments to the U.S. Constitution that have impacted our society and nation, I believe that the 19th amendment to the Constitution is one of the most important events in our history. 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Personal Connection A For A Maternity Center For Over...

Personal Connection: I have worked in a maternity center for over 3.5 years now as a Certified Nursing Assistant (CNA). Through my experience I have witnessed first-hand the impact of maternal drugs, alcohol, and tobacco use during pregnancy has on newborns. It makes me wonder if certain interventions took place during a woman’s pregnancy, then maybe her likelihood of engaging in substance use would cease or decrease. I frequently concern myself with how these often new mothers will manage both their baby’s care as well as their own when they leave the hospital. Some women I care for come from homes where they have been abused, the father of the baby is not involved in their lives, or they lack any other form of social support. I specifically remember a teen couple that was going through their first pregnancy together. However, her pregnancy wasn’t what any new parents could expect to prepare for. She was expecting a set of twins, both of which were IUGR (intrauterine growth restrict ion), and were expected to have some form of mental disability. Their family background was also of concern to the couple. Aside from the parents being young teens, both of their families were struggling financially with some members even homeless. Although they had the best intentions for their babies, they lacked basic prenatal and newborn education. They only stayed on the antepartum unit for a couple days before they were transferred back to their home state where she had been receivingShow MoreRelatedUAE Consumer Lifestyle Analysis42818 Words   |  172 Pages(Constant 2009 Value): 2005-2009 44 Table 51 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2010-2020 44 Smoking 44 Smoking Habits 44 Shopping for Cigarettes and Tobacco 45 Table 52 Smoking Prevalence: 2005-2009 45 Personal Appearance 45 Shopping for Toiletries and Cosmetics 45 Attitudes Towards Hair and Beauty 46 Table 53 Expenditure on Cosmetics and Toiletries (Current Value): 2005-2009 47 Table 54 Expenditure on Cosmetics and Toiletries (Constant 2009 Value):Read MoreDeveloping Management Skills404131 Words   |  1617 PagesTokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Kim Norbuta Editorial Project Manager: Claudia Fernandes Director of Marketing: Patrice Lumumba Jones Marketing Manager: Nikki Ayana Jones Senior Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Senior Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Ilene Kahn Senior Art Director: Janet Slowik Interior Design: Suzanne Duda and Michael Fruhbeis Read MoreManagement Course: Mba−10 General Management215330 Words   |  862 Pagesto credit cards—are being commoditized in months or even weeks instead of the periods of years on which companies had counted for cash flow. Increasingly demanding consumer and industrial buyers are basing their purchasing decisions on the quality of products and services, and this requires manufacturers to be vastly more effective and to strengthen the way they manage customer relationships. The sellers are now deeply partnered with supply chain processes; this means that the cost and timing of newRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesToronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Director of Editorial Services: Ashley Santora Acquisitions Editor: Brian Mickelson Editorial Project Manager: Sarah Holle Editorial Assistant: Ashlee Bradbury VP Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Nikki Ayana Jones Senior Managing Editor: Judy Leale Production Project Manager: Becca Groves Senior Operations Supervisor: Arnold Vila Operations Specialist:

Ibsen, Strindberg and Feminism Essay examples - 2824 Words

In the late 19th century Naturalism was emerging as the primary movement in literature of that period. The movement was influenced heavily by the discoveries made in politics, sciences and psychology of the time. Discoveries such as Darwin’s evolutionary theories, Marx’s Das Kapital and even Freud’s research on the psychology of the human were creating shock and upset and began to revolutionised society’s outlook on the world. The naturalist movement in literature also coincided with the beginnings of women’s emancipation throughout the western world. Scandinavia, as well as experiencing The Modern Breakthrough, was also dealing with its own political struggles for national identity. For Henrik Ibsen and August Strindberg the early woman’s†¦show more content†¦In an unsigned notice in The Daily News of June 1889 a writer condemns Nora’s actions, â€Å"Deserting her home, her husband, and above all her children, simply becaus e she finds her husband is angry with her†¦it may be confidently asserted that no women who ever breathed would do any such thing† (1889). Clement Scott, editor of Theatre, would not even describe her action as human but â€Å"a thing that one of the lower animals would not do† (1889a, p. 114) and in an article for The Daily Telegraph even calls Nora â€Å"absolutely inhuman† (1889b, p. 102). This shock reaction was understandable in a culture that had defined a women’s place in society, or metaphorically, placed women in a box; the fact that Nora chose to step out of that box was an issue of serious debate. If Nora should desert her place in society then so could others. However W.E Simonds, having read H.F Lord’s translation of A Dolls’ House, reprimanded any critic for calling Nora selfish and failing to see Nora’s womanliness and â€Å"emancipated individuality† (1890, p. 147). It is this emancipation of the individual that could be the solution to discovering a theme beyond Ibsen’s feminism. Even Ibsen himself disclaimed any conscious efforts on his part to write A Doll’s House as a way of rallying for the women’s rights movement and claimed it to be purposeful description of humanity (cited in Templeton 1997, p. 110). Templeton goes on to explain that IbsenShow MoreRelatedIbsen Versus Strindberg5491 Words   |  22 PagesCompare and contrast views of the family and family relationships shown in the plays of Ibsen and Strindberg, commenting on the relative importance in each case of social and psychological pressures, as well as physical environment, and showing how these are expressed in theatrical terms. This essay will be focusing on three texts written over a three year period: Henrik Ibsen’s Hedda Gabler (1890) and August Strindberg’s The Father (1887) and Miss Julie (1888) . In approaching this topic, IRead MoreA Dolls House Research Paper3448 Words   |  14 PagesHouse, by Henrik Ibsen, portrays a young married woman, Nora, who plays a dramatic role of deception and self-indulgence. The author creates a good understanding of a woman’s role by assuming Nora is an average housewife who does not work; her only job is to maintain the house and raise the children like a stereotypical woman that cannot work or help society. In reality, she is not an average housewife in that she has a hired maid who deals with the house and children. Although Ibsen focuses on theseRead More‘The Offstage Area Of The Naturalistic Theatre Is Just1654 Words   |  7 Pagesplay and additionally represented theatre as a space to reflect on the natural aspects of life  œ to depict life as it is lived (Esslin 68). 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Education Requires Adequate Management †Myassignmenthelp.Com

Question: Discuss About The Education Requires Adequate Management? Answer: Introduction Before delving into the business side of the technologies, lets highlight the main differences between the two. For one, these technologies would support the existing education system so as to improve the delivery of service, which in this case is providing information to users. Nevertheless, Virtual and Augmented reality stem from the same concept of altering the users perception of reality, however, they both hold contradicting results or operational structures. Virtual reality creates new environments for technological operations. This outcome or functionality is achieved by transposing the user to new and artificial platforms (environments). On the other hand, augmented reality inscribes new ideas into the existing systems, which means it does not change the physical or existing environment but it generates additional user components(Chavan, 2016). Business model canvas Since both technologies will alter the delivery of education services, they both have a common business model. Furthermore, as stated above, they both increase the efficiency of services delivered by extending digital resources to the physical world(Hua Herstein, 2003). In essence, this business model assesses the education industry and the impact it may get from acquiring technologies that expand its existing information systems (IS). Therefore, although they vary in operational structure, their overall goal is similar, which outlines the following business model. Key Partners Government. Academic institutions. Service Providers. System Developers Corporations. Key Activities Offer Research material. Offer Curriculums. Network the stakeholders (teachers, students and administrations etc.). Investment opportunities. Value Proposition Make education and its affiliated services engaging. Focus on education. Promote User networking. Value to students Learning and fun. Socialization. Imagination. Value to Tutors Interest to teaching. A guide to the core studies. Networking. Value to Stakeholders Investments opportunities. Increase productivity. Customer Relationships Get: Virtual content. Information. Learning media. Keep: Engage the stakeholders of the education industry. Grow: The industry Education fields. Learning platforms. Customer Segments Students Researchers Tutors Ministry Private sector Key Resources System developers Graphic designers. Implementation engineers. Administrators Channels Internet Study platforms. Direct engagement (physical) Cost Structure Product development Support infrastructure Support platforms (virtual) Revenue Streams Research Tuition Government funding Endorsements (Bobeshko, 2016) Virtual Reality (VR) in the education industry The education industry has for a long time used virtual reality to achieve its goals more so, through training which has facilitated the growth of computer aided systems such as CBT (computer based training). Furthermore, the application of VR in the education sector has broadly been based on the capabilities it possesses where it furnishes ideas to users in a manner that cannot be achieved by any other medium or form of education(Pantelidis, 2012). This notion is not only true but is proven by the success of programmable mediums which were the initial concepts of VR. At the start simple devices such as calculators offered fast environments where calculations could be done, a functionality that was enhanced by programmable chips. Virtual Reality (VR) in the education industry The education industry has for a long time used virtual reality to achieve its goals more so, through training which has facilitated the growth of computer aided systems such as CBT (computer based training). Furthermore, the application of VR in the education sector has broadly been based on the capabilities it possesses where it furnishes ideas to users in a manner that cannot be achieved by any other medium or form of education(Pantelidis, 2012). This notion is not only true but is proven by the success of programmable mediums which were the initial concepts of VR. At the start, simple devices such as calculators offered fast environments where calculations could be done, a functionality that was enhanced by programmable chips. In the past few years, cyberspace or the internet has rapidly transformed the application of VR in the education sector. First, real-time applications have facilitated students, staff and administration in their day to day activities. Moreover, the same medium has enhanced collaboration by introducing virtual worlds that users can use to communicate. Finally, the introduction of smart systems e.g. smartphones which have brought VR to the stakeholders of the education sectors. For instance, students access, transfer and edit content online while participating in socialisation affairs(Gutierrez, Mora, Diaz, Marrero, 2016). Augmented reality (AR) in the education industry At its inception in the early 90s, AR was used in institutions of higher learning, where pilots were taught using layering applications that combined real-life objects with artificial objects. This technology has grown over the years where the collaboration of digital environments has facilitated tutors to engage students in developing real world solutions at artificial environments. Consider the concept of computer aided design (CAD), where users use a wide range of tools to develop solutions such as architectural drawing and electrical schematics. These tools offer an artificial environment that the user e.g. a student uses to implement ideas through physical objects (mouse, keyboard or markers)(Chen, Liu, Cheng, Huang, 2017). In general, AR can be broadly classified into two; market based and marker-less based AR. Marker based AR will use three distinct elements, a booklet to house the marker data, a gripper that converts data between the different platforms and a cube that transforms content into a 3D representation. On the other hand, marker-less AR will use tracking facilities to mark content onto the virtual environment. These facilities include global positioning system (GPS) and image recognition Softwares(Lee, 2016). Customer segments According to Statista (2016), the education industry holds a significant role in the adaptation and application of VR and AR systems. This outcome is facilitated by the size of the industry and by the level of diversification. Furthermore, the same outcome is facilitated by the sectors position in the world where it holds a mandatory component for developing the society. Now, with this in mind, the following customer segments are identified for both AR and VR(Rosoff, 2016). Students: A huge market share, owing to the number of participants, this includes young children who can transpose their formal education requirements into virtual systems to enhance their understanding. Moreover, students in higher education levels can develop real world solutions through the interactive techniques of both AR and VR. Tutors: VR and AR are virtualization techniques that capitalize on the visual representation of information. Instead of using physical representation or models, these technologies can act as all inclusive systems for virtualization roles. Furthermore, they can be tailored to fit all market segments i.e. age, gender, preferences and field of study. Academic institutions/departments: like all other technologies, AR and VR offer efficient resources that deliver services to users at affordable prices. Consider architectural institutions/departments. The cost of buying drawing paper, pens and other accompanying resources are replaced by a one off purchase of a CAD(Lee, Augmented Reality in Education and Training, 2016). Customer Journey Inquiry the industrys stakeholders evaluate the features and attributes of VR and AR systems. Again, this is aided by social networks and expert reviews which are also minor representations of the technologies because the cyberspace is used(Rouse, 2017). Comparison several service provider as highlighted in the business model are available. Each one of these providers offers a unique service element. A consideration is made based on user needs and preferences. Purchase after being satisfied by the service and product inquiry, the users acquires the product. Installation VR and AR technologies require computational resources which are met using IT infrastructures such as servers (storage), processors and networks. These resources are either acquired or leased from CSPs (Cloud solutions) which highlight the second need for service providers. Decision- at this stage the customer is either satisfied by the service, in which case he/she recommends it to others. Furthermore, the technology stands to grow in such an outcome as subsequent acquisitions will take place. However, unsatisfied customers avoid and deter others from acquiring the same product(MIT, 2012). Recommendation Augmented reality has a higher engagement factor owing to its platform collaboration where users combine the attributes of the real world with those of the digital environment. Furthermore, AR creates a realistic set up for impacting knowledge on users as implementable ideas are fulfilled. Therefore, unlike VR which create a false sense of reality based on rendered environments, AR combines the rules of the real world with those of artificial platforms. In addition to this, the technology physically engages the users who in the education industry are mostly students. These students need a platform where a realistic feedback is given by the platform in order to acquire a sense of fulfilment, a vital aspect of learning(Coie, 2016). Conclusion In both technologies, the users are immersed in a new reality that enhances their understanding, an outcome that promotes thinking and innovation. However, as seen before, the methods used to give the said outcome differ greatly. AR on its part is a critical tool for the education sector as it enables the user to merge theoretical concepts with practical elements. Through this functionality, AR has been outlined as the favourable technology for this application, a step that verifies its commercial success. Nevertheless, the future will see both technologies compete with each other in an attempt to influence the outcome of virtualization. References Bobeshko, A. (2016). Which business model should you choose for VR/AR projects? VR 360, Retrieved 23 August, 2017, from: https://www.virtualreality-news.net/news/2016/aug/08/which-business-model-should-you-choose-vrar-projects/. Chavan, S. (2016). Augmented Reality vs. Virtual Reality Differences and Similaritie. International Journal of Advanced Research in Computer Engineering Technology, Retrieved 23 August, 2017, from: https://ijarcet.org/wp-content/uploads/IJARCET-VOL-5-ISSUE-6-1947-1952.pdf. Chen, P., Liu, X., Cheng, W., Huang, R. (2017). 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