Order ID |
53563633773 |
Type |
Essay |
Writer Level |
Masters |
Style |
APA |
Sources/References |
4 |
Perfect Number of Pages to Order |
5-10 Pages |
Description/Paper Instructions
Creating a Successful Business Model
Creating, Successful, Business, Model
The Business Model Canvas, is strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model. The Business Model Canvas has comprised of 9 key segments: The left-hand section of the Business Model Canvas is the infrastructure section and comprises three key areas:
Key Activities: The most important activities in executing a company’s value proposition.
Key Resources: The resources that are necessary to create value for the customer.
Partner Network: In order to optimize operations and reduce risks of a business model, organizations usually cultivate buyer-supplier relationships so they can focus on their core activity.
The middle section of the canvas describes the business offering and is the value proposition delivered to different customer segments.
Value Propositions: The collection of products and services a business offers to meet the needs of its customers. According to Osterwalder, (2004), a company’s value proposition is what distinguishes itself from its competitors.
The value proposition provides value through various elements such as newness, performance, customization, “getting the job done”, design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability. The value propositions may be: Quantitative – price and efficiency Qualitative – overall customer experience and outcome
The right-hand side of the Business Model Canvas describes the customers, the channels through which you deliver services and the relationships you have with your customers.
Customer Segments: To build an effective business model, a company must identify which customers it tries to serve. Various sets of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients.
Channels: A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient, and cost-effective. An organization can reach its clients either through its own channels (storefront), partner channels (major distributors), or a combination of both.
Customer Relationships: To ensure the survival and success of any business, companies must identify the type of relationship they want to create with their customer segments.
The bottom section of the canvas describes the finances.
Cost Structure: This describes the most important monetary consequences while operating under different business models. A company’s DOC.
Revenue Streams: The way a company makes income from each customer segment.
Watch the video: https://youtu.be/IP0cUBWTgpY
Case Study/Essay * 1,000-1,500 words and at least 5 references with APA7
Please see all the OVERVIEW AND GUIDE TO CASE STUDIES below.
- The Business Model Canvas – 9 Steps to Creating a Successful Business Model – Startup Tips the Business Model Canvas, is strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model. The Business Model Canvas has comprised of 9 key segments: The left-hand section of the Business Model Canvas is the infrastructure section and comprises three key areas:
- Key Activities: The most important activities in executing a company’s value proposition.
- Key Resources: The resources that are necessary to create value for the customer.
- Partner Network: In order to optimize operations and reduce risks of a business model, organizations usually cultivate buyer-supplier relationships so they can focus on their core activity.
The middle section of the canvas describes the business offering and is the value proposition delivered to different customer segments.
- Value Propositions: The collection of products and services a business offers to meet the needs of its customers. According to Osterwalder, (2004), a company’s value proposition is what distinguishes itself from its competitors. The value proposition provides value through various elements such as newness, performance, customization, “getting the job done”, design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability. The value propositions may be: Quantitative – price and efficiency Qualitative – overall customer experience and outcome
The right-hand side of the Business Model Canvas describes the customers, the channels through which you deliver services and the relationships you have with your customers.
- Customer Segments: To build an effective business model, a company must identify which customers it tries to serve. Various sets of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients.
- Channels: A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient, and cost-effective. An organization can reach its clients either through its own channels (storefront), partner channels (major distributors), or a combination of both.
- Customer Relationships: To ensure the survival and success of any business, companies must identify the type of relationship they want to create with their customer segments.
The bottom section of the canvas describes the finances.
- Cost Structure: This describes the most important monetary consequences while operating under different business models. A company’s DOC.
- Revenue Streams: The way a company makes income from each customer segment.
Watch the video: https://youtu.be/IP0cUBWTgpY
Question 1 – Fill out one section of your business model canvas: Define your Customer Segments
Customers segments have something in common with each other allowing you to reach them more easily by knowing what their interests are, where you can reach them and what do they need.
Here are 3 ways that you can define your customer segments if you are a start-up:
- Mass Market includes a broad range of people that could be interested in your offerings. This is quite common in consumer products but reaching that mass market is very costly for start-ups. A lot of consumer goods like chocolates, soap, and milk follow such a model as well as others like WhatsApp
- Niche Market includes a more specific group of people that come together because of their age, location, and interests. It is easier for a start-up to reach such a customer segment since it’s easier to grab their attention through your knowledge of their interests. Health products, organic, specific apps could follow this model
- Multi-Sided Market is specific to companies that have users of the products or service who could be using it for free and clients who have an interest in reaching that set of users. Advertising businesses use this model where advertisers are the clients can reach readers who are the users
All through the development of your business, it is crucial that you and your team are very clear on the market segment that you are trying to reach as this would guide many other decisions that you need to take.
Question 2 – Fill out two more sections of your business model canvas: Define your Value Proposition, and Define Your Channel Strategies
- Define your Value Proposition
Your value proposition is what defines your business, and what excites your clients to do business with you. If you are not exciting your clients enough, they would not go through the effort of trying your product or service.
Here are 4 questions to ask yourself about as you define your value proposition:
- What is the problem that you are trying to solve?
- What is the value that your product or service add to your target segment?
- How do you address the needs of your target segment?
- How is your value proposition different from others – or unique?
Keeping your value proposition clear and effective allows you to communicate it effectively within your company and to your target segments. Every one of your team members needs to understand how their work contributes to that value proposition.
Channel Strategies
- Channels are the way that you interface with your clients and services. Your aim is to find the most convenient way for your clients to buy your products and services and to have a great experience doing so.
Here are 2 commonly used channel strategies to sell through to your channels.
- Direct Channels where yousell directly to your clientseither through your website, through your stores or through your sales teams
- In-Direct Channels where you rely on others to sell your products or services. These could be distributors, retailers or resellers that already have the supply chain or customer relationship and would thus provide you with the most efficient way to reach your clients and possibly to support them
Deciding on the channel model in a startup is very important since each way would have its advantages and disadvantages. As the business evolves, it can have a hybrid channel model that makes use of both routes to reach your clients.
Question 3 – Fill out two more sections for the business of your business model canvas: Customer Relationship Types and Define Your Channel Strategies. Just write down what you would actually write down for your business, in a way that your team will understand.
- Customer Relationship Types
Your customer relationship will influence the experience that they will have with you and the frequency of engagement with them.
Here are 5 commonly used customer relationships as part of your Business Model Canvas development:
- Self Service or Automated relationships where clients can conduct most or all of the service, they need without assistance by anyone in your business. A lot of monthly subscription or online services follow this model
- Personal Relationships where your direct teams are involved in selling and servicing your clients. This is common in physical retail, high value and corporate sales.
- Creation Relationship where clients contribute to the growth of your business, such as the case with social media sites
- Transactional Relationship where the client can use your product and service once and might never have the need to return to you and use it again
- Switching Cost are sticky relationships where it becomes difficult for a client to change a service since they have invested so much time and effort into the relationship. First movers in this type of relationship have the most to gain
Determine which one of these relation types have the most value to your business and to your clients’ experience resulting in great customer service.
Key Revenue Streams
Revenue streams or sales refer to how you generate cash from your clients. In the Business Model Canvas, different client segments could pay you in different ways. Without sales, a business can’t function, so this is the most important aspects of any business.
7 most used revenue types include:
- Asset sales refer to cases where you sell a product to a client who then becomes the owner of that product. This is the most widely used model in business and takes place anytime we buy a car, computer or a building
- Usage fee refers to when a client uses your product or service, but its ownership remains with you. This is common in the hotel or airline industry
- Subscription fee refers to when your clients subscribe on a monthly or weekly basis and can use your infrastructure. Examples of this include software as a service, gym memberships, etc.
- Leasing or renting or lending refer to allowing clients to use your assets for a period of time as if it is theirs
- Licensing revenue is earned when you give clients permission to use your intellectual property. This is common in content production and inventions.
- Brokerage fees are earned when you take a commission from facilitating a business transaction between two parties.
- Advertising results from fees for advertising a particular product or service or brand
Ensuring which of the above revenue streams is most convenient for each of your target segments and in turn allowing you to generate the most business is an essential aspect of having your business survive and thrive.
Question 4 – Fill out two more sections for the business of your business model canvas: Key Resource Types, and Key Activities. Just write down what you would actually write down for your business, in a way that your team will understand.
Key Resource Types
Key resources reflect the most important assets of your business. Identifying them will help you in protecting these assets and making the most of them.
Here are 3 common resource types:
- Physical resources include vehicles, offices or stores, data center, manufacturing equipment
- Intellectual Property assets brands, copyrights, patents, platforms and even customer databases.
- Human Capital representing your team. In most businesses, this is your most important asset as the team helps in keeping innovations coming in and in providing your clients with a great experience
Identifying your most important assets in your business and protecting them is essential to making your business function well.
Key Activities your Business Engages in
There are many daily tasks that are done within the business, but it is always important to be clear about what are the key activities that need to be conducted within the business to deliver on the value proposition that you are promising your clients. By identifying these activities, it would help you to prioritize the efforts taking place in your business.
As part of the Business Model Canvas template, some of the common activities in a business include:
- Production activities which focus on the design, manufacturing, and delivery of a product or service – common in manufacturing
- Problem-solving which covers a lot of services businesses that work on addressing customer problems
- Platforms bring together users and clients on a common space for them to interact – Credit card companies, Software platforms, and online merchants are examples that have platforms as a key activity
Reviewing your key activities and improving performance is an essential part of innovating a better product or service to your clients.
Question 5 – Fill out another section for the business of your business model canvas: Key Partnerships. Just write down what you would actually write down for your business, in a way that your team will understand.
Key Partnerships
Forming strong partnerships with your ecosystem is a great tool to help in expanding your reach and making sure that your business is delivering its promise to clients.
Some essential partnerships in business include:
- Alliances these are entities that can complement your offerings or your reach to your clients – these can include joint ventures or general partnership agreement
- Suppliers are essential in providing you non-core business elements that allow you to focus on your core areas of strength
Continuous evaluation of the available partnership options is essential to stay abreast of the latest developments.
Question 6 – Fill out another section for the business of your business model canvas: Cost Structure Just write down what you would actually write down for your business, in a way that your team will understand.
Important Cost Structures
Cost structure refers to all the costs that you incur to deliver on your business model. Keeping your costs under control is essential to maintain a healthy business.
2 Essential Cost Structure elements include:
- Fixed Costs – which refer to all costs that you need to incur whether you sell or not. These could include factory, general administration staff, rent, management staff costs etc.
- Variable Costs – which refer to costs that are associated with the sales of your products or services. The more you sell the more these costs would go up. Variable costs include things like the raw material for your products or cost of consultants that you would etc.
When you are starting up a business keeping the fixed costs as low as possible is essential so that you don’t run out of cash too quickly before you start selling enough products and services to cover your costs.
RUBRIC
QUALITY OF RESPONSE |
NO RESPONSE |
POOR / UNSATISFACTORY |
SATISFACTORY |
GOOD |
EXCELLENT |
Content (worth a maximum of 50% of the total points) |
Zero points: Student failed to submit the final paper. |
20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. |
30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. |
40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. |
50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. |
Use of Sources (worth a maximum of 20% of the total points). |
Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. |
5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. |
10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. |
15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. |
20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. |
Grammar (worth maximum of 20% of total points) |
Zero points: Student failed to submit the final paper. |
5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors |
10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors |
15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. |
20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. |
Structure of the Paper (worth 10% of total points) |
Zero points: Student failed to submit the final paper. |
3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. |
5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper |
7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. |
10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. |
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