Exploring the possibility for business model innovation in Laerdal Medical using Virtual Reality
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The purpose of this paper is to check how Virtual Reality patient simulation as a disruptive technology may give opportunities for established companies, such as Laerdal Medical, to create innovative business models in the nursing and healthcare education market. The goal of the new and innovative business model would be to maintain and further strengthen existing business, when faced with threats from established and potential new competitors. In our methodology, we have formed the three hypotheses we believe are significant to answer our problem. Analytic tools such as a questionnaire, literature, PESTEL analysis, Five Forces analysis, SWOT analysis, business model analysis and financial analysis are used to provide a framework for Laerdal Medical’s strategic choice. A conducted survey with 82 respondents, suggests that the hypotheses are true. The results from our analytical tools suggests that online technology is a threat towards traditional learning and threat of substitutes are among the most serious factors to consider. A review of current literature provided more information than expected on Virtual Reality and innovative business models. Findings from existing research further supports our hypotheses and further strengthens our belief in business model innovation as a tool to address coming threats/opportunities. The findings have led us to evaluate Laerdal Medical’s existing business model, suggest a new model and evaluate the gap between the two models to see if the challenges of changing business models are acceptable. A thorough financial analysis of the proposed new business model, through a base case scenario, also help support our hypotheses. The base case scenario show significant findings relating to revenue generation in a relative short period. Research has also shown that innovative types of business models can contribute to a considerable reduction in costs when changing the distribution channel from physical to online. This thesis adds value for businesses in the educational market in general; it provides valuable information for business opportunities that may come through technological opportunities related to Virtual Reality and business model innovation.
Master's thesis in Business administration: Executive MBA