Study Of RED2 Company Bussiness Model Innovation

RED2, founded in 2006, is a small professional interior design company focusing on commercial area with project consultancy and related services. Growing competitions with fast moving globalization trend as background, particularly Internet-based capital investment in interior design business, small companies like RED2 find it is getting hard and harder to make profit or even face survival crisis. Traditionally, profit lays on construction material price and labor costs, with growing number of competitors joining in the field, this model is losing its point and a new model and new thinking is being required to the field runners, so is RED2. A new and adaptive business model is being demanded and only do so, small companies like RED2 can make way out.This essay is focusing on how a commercial interior design company transform and expand its business to residential interior design business. 1. This paper explains RED2’s business model innovation urgency in such a fast changing industry alone with its moving trend. A long term business target is also being set after analysis on RED2’s weak field, customer satisfaction, partnership etc with guidance under Strategic Enterprise transformation. 2.From perspective of Business model theory, 9 key factors, customer segments, Value Propositions, Sale Channel, Revenue, Key resource, key Activities, Key Partnership are in put into account to evaluate how to set up a new model by utilizing existing sources in a blue sea market.。3. An detailed carry out plan and evaluation for future effects.Analysis focuses, with a study on current interior decoration business model and its defects, how to make new high value service while deduct low value added services. Being market-oriented and sensitive to ignored customer satisfaction would the an effective weapon to make new profit and distinguish itself from a ferocious competitive market.It is the writer’s wish that this essay could be helpful to small and medium companies like RED2 to find a sustainable and innovative way to develop for their own future along with a brand new residential & commercial interior design industry.