Local Motors Case Study Analysis

3175 Words Mar 2nd, 2015 13 Pages
Local Motors: Designed by the Crowd, Built by the Customer
Case Study Analysis

Table of conten

Table of content 2
Introduction 3
Local Motor’s business model vs. “typical” models 3
The CANVAS model 3
Customer Segments 3
Value propositions 3
Channels 4
Customer Relationships 4
Revenue Streams 4
Key Resources 4
Key Activities 5
Key Partnerships 5
Cost Structure 5
Evaluation of the business model 5
Customer involvement according to NIKE 6
“LM template” in the clothing industry 7
References 8

Introduction
The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the
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Those who prefer other way of service can easily access information on LM’s website about all auto components and inform themselves about mechanics who can service their car.
Channels
There are two key channels what LM uses to deliver value for its customers: the community and the regional microfactories. The community is a core element of LM’s business model and consists of a group of car enthusiasts and designers who communicate mainly on an online platform, but they also meet in person during events organized by LM. Microfactories serve as places for car manufacturing but they mean a lot more for the company. They are places to gather together with the community and to work together with customers whilst assembling. Both key channels are important parts of LM’s marketing strategy and play a prominent role in the customer experience. LM uses mainly these own and direct channels to reach its customers. It raises awareness about its cars using mostly its website. This platform also helps potential customers in evaluating the offerings of LM as community members share their opinion, knowledge and experience there. The purchase, the delivery and the after sales service happen through the channel of microfactories.
Customer Relationships
Three categories of customer relationships co-exist in the business model: personal assistance, communities, and co-creation. Personal assistance has an important role. LM

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