These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Expliseat, a provider of ultralight airline seats. Made from titanium and carbon fiber, these seats have 40% the weight, 10% the number of parts, and are 5 centimeters thinner than existing seats. The lighter weight saves on fuel cost and the fewer parts reduce assembly and logistics costs, making the seat cost about the same as existing seats. The thinner seats can enable more legroom or more seats, depending on the airline’s preference. These slides describe the value proposition, customers, method of value capture, scope of activities and the method of strategic control for Expliseat.
1. Business Model For Expliseat
Amine Masnaoui
Matthieu Soudan
Joni Salmela
Zacharie Chebance
Worlds lightest certified aircraft seat
2. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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French company
Based in Paris
25 employees
Founded in 2011
Aviation & Aerospace
15 patents
4. The Titanium Seat
Lighter
4 kg per seat (per passanger)
Longer-lasting
1000 x longer lasting than aluminium
Innovative design
Only 30 components used
Thinner
Additional 5 cm between the seats
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• Titanium
• Carbon fiber reinforced
composites
• Textile/Leather
5. Pros and cons
• One structure for three seats
Lightness vs Long overhaul
• Less bindings on the ground
Easy dismantlement vs Less stiffness
• Constant inclination of 18°
Constant space vs No tilting
for legs
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6. Expliseat: Materials
Titanium Carbon Fiber
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• High strength-to-weight ratio
• High crack resistance
• High stiffness and tensile strength
• Low weight
• High temperature tolerance
• Low thermal expansion
• Combined with plastic resins
High strength-to-weight ratio
7. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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10. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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11. Value Proposition
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What Expliseat offers and how they differentiate ?
•
Regular seat
Expliseat
11 kg
4 kg
500 parts
30 parts
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Save 5% in fuel consumption
EasyJet would save 100M$/year
= 2% of the turnover
+ More space for passengers (better service), or more seats in a plane
(more revenues)
Case study - EasyJet short-haul flight
Regular flight : London Prague
Time: 1h55
Distance: 638 miles
Plane: A320
Configuration: 183 economy class seats
(15kg)
Data:
11h flights a day
Fuel price: 1.000$/mt
13. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. New Business Model Proposal
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14. Market Segmentation
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● Long Haul ● First Class ● Asia ● A380
● Medium Haul ● Business Class ● Middle East ● A320
● Short Haul ● Economy ● America ● B737
● Low cost ● Africa ● ATR
● Europe
One goal: Leader of the Economy class
A320 B737 ATR
Air Mediterrannée 2014
4 A320, 174 seats
Flights in December 2014
Air Tahiti June 2015
15. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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16. Scope of activities
Airlines’ need: Reduce energy costs
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Expliseat’s answer
Issuing patents
4kg titanium seat
How ?
Outsourcing
manufacturing,
logistics and
assembling
17. Value Chain - vertical disintegration
Information will be provided soon
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18. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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19. Method of Value Capture
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Airline pays
Non-recurring charges
Recurring charges
Design & Engineering
Tooling
Prototyping
Seat covers
Foot panels
Overhaul charges
(after warranty period)
Seat legs (10 years)
Seat back frames (5 years)
Fixings (3 years)
20. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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21. Strategic Control
• Expliseat is holding 15
patents for its Titanium Seats
• Aircraft seats must satisfy
particular aviation standards
Not easy to make cheap
replicates and enter the market
Cases of Airbus and Zodiac
• Expliseat has EASA
certification for its seat
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22. Agenda
1. Company Profile
2. Aviation Market
3. Value Proposition
4. Customer Selection
5. Scope of Activities
6. Method of Value Capture
7. Strategic Control
8. New Business Model Proposal
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23. New Business Model Opportunities
• Shift to services
– Revenue model based on savings in fuel
consumption
• Knowledge applicable in other industries as well
– Automotive
– Military aviation
• More personalized seats
– Size
– Reclining seats
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