Description:Innovating business models can be a major value driver and can allow an organization to significantly outperform the competition. Yet many organizations have difficulty doing so because business model choices often remain implicit and are not reconsidered for a long time. In this assignment we will practice the analytical skills of making the business models explicit and employing creative skills of innovating their design. The core theme of innovation in the transportation sector, in its broadest sense $($ranging from delivery services to space travel$).$ Step $1$: In your team, choose an existing medium sized business in the transportation sector. Make sure you choose an example that has enough information about its operations available online. If in doubt, check with the assigned tutor for your team if the choice is appropriate. Use the following criteria to choose a company:Mid$-$size $(50-250$ employees$)$Operating at least for a yearAnnual revenues of $$10$M $-$ $$100$M Step $2$: Using four to eight available sources about the company, analyze its business model. In your analysis use the Johnson et al$.(2008)$ framework, i$.$e$.$ specifying: Customer value proposition Profit formula Key resources Key processes Step $3$: Now that you have analyzed the existing business model, the task of your team is to come up with an innovative business model design that will improve the companys competitiveness.Analyze the current business model in light of the five strategic instances that may require business model to change $($see Johnson et al$.2008,$ p$.7)$Develop a clear argumentation explaining what limitations of the existing business model can be solved through redesignCome up with a business model innovation and explain the novel business model through the framework of Johnson et al$.(2008)$Step $4$: Summarize your newly developed proposition in an executive summary and a supportive video. Focus your summary directly on the new business model; the analysis of the current business model should only be used to support your arguments for the new model $($you can use Appendices to include supportive non$-$key information$).$ Your novel proposition should be explained in$-$depth, elaborating with actionable detail on how it can be implemented. Avoid generic propositions or too many propositions at once. Your final executive summary should be clear on the following elements: Customer value propositionWhat is the unique, important value that your innovation brings to a specific range of customers. You need to clearly and completely specify what is the need that the proposition addresses $($job to be done$)$ and how it is addressed by your new model $($offering$),$ as well as who the target customers are. Profit formulaHaving all the above elements in mind, you need to estimate at least three main cost elements that you should cover for implementing your business model and have a rough estimate of each cost element for the first $3$ years $($e$.$g$.,$ you may think of $10$ programmers who are full$-$time, with an annual salary of $$40,000).$ Next to it$,$ explain how you are going to gain your revenue and try to have a rough estimate of it for the first $3$ years. Then comparing the cost and revenue, estimate your profit for the first $3$ years. Key processesSpecify at least $3$ key activities that should be designed and executed in order to develop the value proposition. This can include the design, production, transportation, analysis, and communication activities. Key resourcesThen specify at least $3$ key resources that your company needs to have $($or acquire$)$ in order to perform the key activities. Be specific and actionable in your description of key resources. For example, instead of saying human resources, specify what expertise is needed. All these elements should fit with each other and produce a viable business model, so that you can convince external stakeholders $($e$.$g$.,$ investors$)$ or internal stakeholders $($e$.$g$.,$ managers of the company$)$ to support your business model innovation. As with the Team Profile deliverable, make certain to list the names of all team members who participate in both the verbal and written assignments. Do not forget to Include minutes reports of the four meetings as an Appendix to your executive summaries.