Fortive Corporation (FTV): Business Model Canvas

Introduction

The industrial, transportation, and healthcare markets are continuing to experience significant growth across the globe. According to recent statistics, the global industrial market is expected to reach a value of $5.6 trillion by 2027, growing at a CAGR of 6.1%. Similarly, the transportation industry is projected to grow at a CAGR of 11.7% to reach a value of $15.7 trillion by 2030. Moreover, the healthcare market is anticipated to be worth $11.9 trillion by 2022, growing at a CAGR of 5.4%. With these numbers, it is not surprising that businesses, like Fortive Corporation (FTV), are investing in providing essential products and services in these industries.

FTV, being a diversified industrial technology growth company, operates in these markets, offering reliable and high-performance products and services that improve customer productivity and efficiency. Their strong business model, consisting of four key elements namely customer segments, value proposition, revenue streams, and key activities, has been their approach to meet their customers' demands.

• Customer segments: FTV's customer base includes original equipment manufacturers, industrial distributors, and end-users.
• Value proposition: FTV's value proposition is anchored in its ability to offer high-performance products and services that improve customer productivity and efficiency.
• Revenue streams: FTV generates revenue through the sale of its products and services, including software and hardware solutions, as well as through after-sales services and support.
• Key activities: FTV's key activities include research and development, manufacturing, sales and marketing, and customer support.

Overall, with the growing industrial, transportation, and healthcare markets, FTV's strong business model and their focus on essential products and services has positioned them well for continued success.

Key Partnerships

Fortive Corporation recognizes the importance of strategic partnerships to enhance its product offerings and increase its reach in the market. The following are some of its key partnerships:

• Suppliers: Fortive Corporation partners with suppliers who provide high-quality raw materials and components to manufacture its products. The company has established long-term relationships with its suppliers to ensure timely delivery of materials and competitive prices.
• Distributors and resellers: The company has partnerships with distributors and resellers to reach a wider market and increase its sales. Fortive Corporation works closely with these partners to ensure that they have enough stock of its products to meet customer demand.
• Technology partners: Fortive Corporation partners with technology companies to stay ahead of the competition and offer innovative products to its customers. The company collaborates with these partners to develop new technologies and solutions that can address the needs of its customers.
• Academic institutions: Fortive Corporation partners with academic institutions to support research and development initiatives. The company invests in research projects that can lead to new products or improve existing ones.
• Professional services providers: The company has partnerships with professional services providers to support its operations. These partners provide services such as legal, accounting, and human resources to ensure that the company runs smoothly.

The above partnerships contribute to Fortive Corporation's success by making its products available to a wider audience, improving the quality of its products and services, and enhancing its operational efficiency.

Key Activities

Fortive Corporation is a diversified industrial conglomerate that engages in various business operations. The following are the key activities that the company focuses on:

• Research and Development: Fortive Corporation aims to continually innovate and enhance its product portfolio through extensive research and development activities. The company invests in new technologies, talent, and tools to develop new products that align with customer needs and market demands.
• Manufacturing: The company operates in multiple businesses, such as Test and Measurement, Industrial Technologies, and Transportation Technologies. The company manufactures and assembles various products under these businesses using its expertise in engineering, design, and manufacturing processes.
• Sales and Marketing: Fortive Corporation has a global sales and marketing team that develops and implements effective strategies to promote and sell products across different geographies. The sales and marketing team builds strong relationships with customers and distributors, participates in industry events, and harnesses market intelligence to stay ahead of competition.
• Supply Chain Management: The company focuses on building an efficient and resilient supply chain that enables it to deliver products on time and at a competitive price. Fortive Corporation works with reliable suppliers and distributors and leverages its scale to negotiate favorable terms.
• Customer Service: Fortive Corporation provides customer service and support to ensure that its customers receive timely assistance with any questions or issues related to the company's products. The company's customer service team is knowledgeable and responsive, and it uses data analytics to improve customer experience continually.
• Mergers and Acquisitions: Fortive Corporation acquires businesses that align with its strategic objectives and complement its existing product portfolio. The company evaluates potential targets, conducts due diligence, and negotiates deals to expand its presence in different markets and enhance its growth potential.

Key Resources

The key resources for Fortive Corporation (FTV) can be categorized into the following:

• Human Resources: Fortive employs a highly skilled workforce comprising of engineers, scientists, technicians and product designers. Their expertise is essential for developing innovative products and solutions for customers.
• Physical Resources: Fortive has manufacturing facilities, warehouses, and distribution centers across the world. These resources are vital for the production and delivery of high-quality products and services.
• Intellectual Property: Fortive has a significant portfolio of intellectual property, including proprietary technologies, patents, and trademarks. This helps the company to protect its products and maintain a competitive advantage.
• Financial Resources: Fortive has a robust financial position with steady revenue growth and profits. This provides the resources necessary for research and development, marketing, and expansion efforts.
• Supply Chain: Fortive has strong relationships with its suppliers, which provide high-quality raw materials and components that are used in the production of its products.
• Information Technology: Fortive uses advanced information technologies, including software and analytics, to improve its operations, track inventory, and manage its supply chain, among others.

Overall, Fortive Corporation has a diverse range of key resources that allow it to develop innovative products, maintain a strong financial position, and deliver high-quality products and services across the globe.

Value Propositions

Fortive Corporation (FTV) offers a wide range of innovative technology solutions and services that help businesses optimize their operations and improve their bottom lines. The company's value propositions are as follows:

• Advanced technology: Fortive Corporation is known for its cutting-edge technology solutions that leverage the power of IoT, AI, and machine learning. The company's products and services are designed to help businesses operate more efficiently, reduce downtime, and increase productivity.
• End-to-end solutions: Fortive Corporation offers end-to-end solutions that cover the entire operational lifecycle of a business. From asset management and predictive maintenance to logistics and supply chain management, the company's solutions are comprehensive and tailored to meet each customer's unique needs.
• Scalability: Fortive Corporation's technology solutions and services are scalable, making them suitable for both small and large businesses. The company's portfolio of products and services can be customized to fit the specific needs and requirements of each customer, allowing them to grow and evolve over time.
• Reliability: Fortive Corporation's solutions and services are reliable and proven in the field. The company's robust products and services have been tested and trusted by businesses across a wide range of industries, making them an ideal choice for industrial equipment and asset management.
• Expertise: Fortive Corporation has a team of experts with deep domain knowledge in each of the industries it serves. The company's team of engineers, technicians, and industry professionals have years of experience designing and implementing innovative technology solutions that deliver real value to businesses.

Overall, Fortive Corporation's value propositions make it an ideal partner for businesses looking to optimize their operations, increase efficiency, and improve their bottom line. With the company's advanced technology solutions and end-to-end services, businesses can leverage the power of IoT, AI, and machine learning to stay ahead of the competition and thrive in today's rapidly evolving business landscape.

Customer Relationships:

At Fortive Corporation (FTV), we understand the importance of building strong customer relationships that drive business success. Our focus is on providing exceptional customer experiences through various channels that ensure a seamless and personalized approach for our clients. Our customer-centric approach allows us to build long-term relationships that foster loyalty and trust. We offer a range of services, including pre-sales consultations, onboarding and training, and post-sales support. This ensures businesses receive the necessary attention throughout their entire customer journey. One of our key priorities is to provide timely, accurate, and relevant communication across all channels. We leverage multiple touchpoints to maintain our connections with clients, including email campaigns, social media, and customer portals. Our teams of customer service representatives are available 24/7 to respond to customer inquiries promptly. Additionally, we gather feedback from customers through surveys and focus groups to understand their needs and improve our services. We also prioritize maintaining transparency with our customers and keeping our promises. This allows us to build strong and lasting relationships that enable us to continue providing value to them in the long term. In summary, our customer relationships approach is founded on building trust, creating personalized experiences, and being responsive to their needs. We take pride in our ability to create meaningful relationships with our clients, which is essential to our business growth and success.

Channels

Fortive Corporation utilizes several channels to market and distribute its products and services. Some of the key channels include:

• Distributor Network: Fortive Corporation has an extensive network of distributors that help it to reach customers across different regions. The company partners with authorized dealers who help to market and sell its products to end-users. The distributors also provide technical support and customer service to end-users.
• Direct Sales: Fortive Corporation also engages in direct sales to customers. The company has a team of sales personnel who work directly with customers to understand their needs and offer solutions that meet those needs. The company also utilizes e-commerce platforms to sell some of its products directly to customers.
• Online: Fortive Corporation has an online presence where it markets and sells its products. The company has a website where customers can learn more about its products and services, and purchase products online. The company also leverages social media platforms such as LinkedIn, Twitter, and Facebook to reach customers and promote its products and services.
• Value-Added Resellers: Fortive Corporation partners with value-added resellers (VARs) to reach customers in specific verticals. The VARs are specialized in selling and supporting technology products and services in their respective industries.
• Partner Programs: Fortive Corporation has established partner programs that help to expand its reach and enhance its market presence. The company partners with organizations that offer complementary products or services to promote cross-selling and upselling. The partner programs provide training, marketing, and technical support to partners to help them market and sell Fortive's products and services.

These channels help Fortive Corporation to reach a broad spectrum of customers and markets, and provide the necessary support to ensure customer satisfaction.

Customer Segments

Fortive Corporation (FTV) targets a diverse set of customer segments across its different business units. The company primarily focuses on providing solutions to customers in the industrial technology and healthcare sectors.

• Industrial Customers: Fortive's industrial segment targets a range of customers including manufacturers, wholesalers, and retailers. Within this segment, the company provides solutions to customers in industries such as transportation, energy, and industrial automation.
• Healthcare Customers: Fortive's healthcare segment targets hospitals, clinics, and other healthcare facilities. The company provides solutions to customers in areas such as medical imaging, clinical diagnostics, and life sciences research.
• Service Providers: Fortive also targets service providers who specialize in maintaining and servicing industrial and healthcare equipment. These customers rely on Fortive's solutions to ensure that the equipment they service is operating at optimal levels.
• Other Customers: Fortive also has a presence in other markets such as retail, hospitality, and government. The company provides solutions in areas such as RFID technology for inventory management and security solutions for cash handling.

Fortive's customer segments are diverse and wide-ranging, and the company focuses on providing customized solutions that meet the unique needs of each of its customers.

Cost Structure

The cost structure of Fortive Corporation is focused on achieving operational efficiency and maximizing profitability while maintaining high-quality standards for its products and services. The company achieves this through a variety of cost management strategies. Fixed Costs: Fortive Corporation incurs fixed costs such as rent, salaries for employees, and other overhead expenses. The company has a well-structured organizational hierarchy that helps in reducing costs associated with staffing and focusing resources on high-value activities. Variable Costs: The variable costs of Fortive Corporation include expenses associated with raw materials, manufacturing, transportation, and distribution. The company implements cost reduction techniques by ensuring optimal use of resources, managing the supply chain efficiently, and minimizing wastage through preventive maintenance. R&D Costs: Fortive Corporation invests heavily in research and development to stay ahead of the competition and deliver the latest technologies to its customers. The company's dedicated R&D team works towards achieving cost savings through experimental design, reducing testing time, and improving product quality. Marketing Costs: Fortive Corporation employs a marketing strategy that relies heavily on digital marketing tools such as search engine optimization (SEO), social media, and email marketing. The company also employs traditional marketing techniques such as print and TV ads for better customer engagement. This marketing approach helps the company save costs by targeting a specific audience and avoiding needless spending. Product Costs: Fortive Corporation maintains a competitive edge by providing high-quality products and customized solutions to its customers. The company's product costs incorporate the cost of raw materials, manufacturing, packaging, testing, and transportation. The company uses economies of scale to achieve cost savings by manufacturing large volumes of products. In conclusion, Fortive Corporation employs a multi-pronged approach towards cost management. The company develops strategies for cost reduction, optimizes the manufacturing process, and focuses on innovation to maintain its market position.

Revenue Streams

The Fortive Corporation (FTV) generates its revenue from a variety of sources. The following are the primary revenue streams of the company:

• Product Sales: The company sells a range of industrial products, including automation and sensing solutions, advanced technologies, transportation technologies, and retail solutions. The revenue generated from the sale of these products is the primary revenue stream for the company.
• Services: Fortive Corporation provides a range of services to its customers, including calibration, repair, and maintenance services for its products. The company generates a significant amount of revenue from the sale of its services.
• Subscription and Support: The company offers subscription plans and support services to its customers. These plans include software updates, technical support, and training sessions. The revenue generated from subscriptions and support services is a growing revenue stream for the company.
• Licensing: Fortive Corporation has a range of patents, trademarks, and intellectual property. The company generates revenue by licensing its technology and intellectual assets to other companies.
• Leasing: The company also generates revenue by leasing its products to customers. This revenue stream is a smaller segment of the company's overall revenue.

The company's revenue streams are diversified, reducing its exposure to risks associated with a single revenue source. Fortive Corporation has an excellent track record of generating stable revenue, and its revenue streams are expected to continue to grow in the future.

Conclusion

After conducting an in-depth analysis and brainstorming exercise for Fortive Corporation, the proposed Business Model Canvas points towards a robust and sustainable business model. The canvas highlights key factors that Fortive can leverage to achieve its objectives, improve customer satisfaction, and grow its revenue streams.

• Fortive's value proposition focuses on providing innovative and high-quality products and services that solve big problems for its customers.
• By employing a multi-channel distribution strategy, Fortive can reach its target markets through a range of channels, including direct sales, e-commerce platforms, and partnerships.
• The company's revenue streams are diverse, from product sales to service provision and software subscriptions, which helps to mitigate risks and provide a stable financial position.
• Efficient and effective operations management procedures are vital for Fortive to remain competitive and maintain its position as a leading player in its industry.
• Partnerships and collaborations with key stakeholders are essential for driving innovation and staying ahead of the competition.
• Finally, a robust customer relationship management strategy is integral to Fortive's success, as it helps to build brand loyalty and reputation, leading to repeat business and referrals.

Overall, adopting the proposed Business Model Canvas is a step towards achieving long-term growth for Fortive Corporation. It outlines essential elements of the company's success and provides a solid foundation for continual business improvement and success.