HuStream Technologies Interactive Video
HuStream Technologies Interactive Video Inc. (HuStream) wants to transition from a service-based business model to a product-based business. They currently employ seven people that are in various management roles and responsibilities. A management consulting team was hired to advise the co-founders, Peter and Amy Matejcek on how to migrate the desired product-based business model and how to target the appropriate markets. They currently provide customers with fully produced interactive video content. A cloud-based platform was built to provide accessibility to the firm’s products and services. HuStream is struggling with balancing a services-based and products-based business model. The consulting team is providing HuStream with new business models to expand their business and increase revenue. Interactive video content is an evolving platform in the online service-based industry, and their customers can design to benefit themselves. Some of their existing clients are Microsoft, Intel, and numerous educational institutions in Kelowna, British Columbia, Canada. Expansion is necessary to produce a higher volume of videos and requires both financial and time commitments. Capital investments are needed to hire personnel in sales, production, customer support, account management, operations, project management, and development. Additional costs will be incurred for physical offices and production space.
HuStream is continually striving for excellence and depends on a conscientious commitment to their mission, vision, and goals and is looking to better themselves by supplying the best up-to-date product in the interactive video content market. They desire to expand and increase their revenue and be involved in their community.
Should HuStream accept the recommendation of the new business model made by the consulting team? The decision can change the whole business. Currently, they are using a cloud-based platform permitting clients to be convenient and easy access to do what they need (Adr11). A cloud-based system allows all the software applications to operate in an environment made of utility cloud services. The platform being utilized appears to fit the entire operation of HuStream because there is a rising demand for services and products with the current clients. The existing system is too small for further expansion and additional clients.
If the recommendation is accepted, adjustments will need to be made in the current operations of the entire company. The new vertical integration suggestions will need to be implemented. Changes need to be made because the new business model will require new departments and additional employees. The strategic plan will need to be updated if the recommendation is accepted.
The new business model proposal will encourage growth due to additional clientele from the entertainment industry, the Do-It-Yourself (DIY) industry, and an increase in the educational industry market sectors.
Sales strategies and marketing are the best ways to attract new target markets. Advertisement is another strategy for Hustream to use. It would emphasize that they are not new to the industry and have a wide variety of experience with high-quality video production services for clients through an in-house studio equipped with top-performing camera equipment.
HuStream Technologies and interactive video company hired a consulting firm to discuss new ways to overcome the company’s unique challenges. Due to lagging results because of difficulty in balancing a service-based business model, and a product-based business model, HuStream Technologies is considering the consulting company’s suggestion and change the whole business model, strategy, and target market. The vertical integration for the new business model includes three industries that will be part of the target market of the company. They are the entertainment industry, the DIY industry, and expand the educational sector. To successfully implement the new business model, there will be fewer conflicts on the increasing demand for the products and services of HuStream. By applying new strategies and changing its target market, HuStream Technologies will have the potential to become successful. However, implementing a significant change within any organization is very challenging. In this case, HuStream has to ensure proper communication within its organization and to its entire customer base. Excellent communication and training information has to be relayed internally and externally. Change within any organization is inevitable. Proper execution is critical to reaching the desired goal.
HuStream Technologies Interactive Video