Essay: Evaluation Of Business Model Canvas Of Discount Superstores Group.

Key Elements of Business Model Canvas

Discuss About The Business Model Canvas Ciencia Huasteca.

Discount Superstores Group Holdings is positioned as a discount variety retailer within Australia that was established in the year 2013 after the liquidation of the former company Retail Adventures. It is a privately held organization and traded in the household names Chickenfeed and Sam’s Warehouse (Discount Superstores., 2018). The objective of this report is to evaluate the critical success factors that can facilitate the company in attaining sustainable growth through carrying out evaluation of its business model canvas. The relationship among the factors described within the business model canvas of Discount Superstores Group will also be analyzed to reveal the downside risks of the company (Amanullah, Ab Aziz Hadi & Ibrahim, 2015).

Business model canvas of Discount Superstores Group indicates the business performance through nine connected factors explained in the business model. These relationships, key activities, partners, consumer relationships’, value proposition, channels, cost structure, cost segments along with revenue streams (Amanullah, Ab Aziz Hadi & Ibrahim, 2015). It has been analyzed from the business model canvas that the major focus is on provision of retail and financial services to the upper and middle-income groups. By using all value propositions, it attempts to provide superior consumer relationships. This is conducted through offering quality products and services to all the consumers in Australia. This is obtained by the organization through means of fresh food strategies, price and human resource strategies. Discount Superstores Group uses all the major partners along with activities for enhancing its business efficiency for being cost effective. Business model of the organization is integrated in a way that all elements of business canvas is centered on providing customers with unique shopping experience annually (Caetano et al., 2017). The cost structures and channels of Discount Superstores Group is linked together for attaining increased revenues from bigger consumer group. These factors of the organization’s business model canvas consider consumers, people and value proposition strategies. Relied on its value proposition strategies and its key partners, the organization has centered on implementing different consumer-based initiatives. This because of the fact that they stay informed concerning healthy food selection (Dudin et al., 2015).

There are a few critical success factors for Discount Superstores Group which has supported the company to obtain exceptional sustainable situation within retail industry (Dudin, Kucuri, Dzusova & Namitulina, 2015). This can also provide competitive advantages in comparison to its major competitors and such critical success factors are explained under:

• There are few vital business rivals of Discount Superstores Group that includes Morrison and Tesco. In gaining competitive advantages over these business rivals the company is observed to have numerous retail stores that can affect its food market and increase its quality service offering.
• The company has over 20000 employees that has made it to get positioned as one of successful new Australian retailer that obtains profit more than 1 million pounds (Joyce & Paquin, 2016). The company also is observed to attain high domestic market share. Discount Superstores Group cooperates with its local suppliers and effectively shares relevant industry experience based on superior technology.
• Critical success factors of Discount Superstores Group are observed to have unique power of advertising as well as public relations by means of newspapers, journals and increased media use (Joyce & Pigneur, 2015).
• Another critical success factor of Discount Superstores Group has resulted to have effect on the nation within which it operates its business. For example, it provides a huge job opening that offers jobs to the people of host nations that works I these supermarkets. The prices of the products offered by the organization is cheaper and affordable in contrast to its rival retailers. It along focuses on offering convenient shopping experience to all its consumers in the nation (Plenter el al., 2017).

Recommendations for Discount Superstores Group

Discount Superstores Group deals with some risks in conducting business all over its business locations. Risks are observed to be distinct relied on its intensity and the manner in which it can add vulnerability to the company’s market position (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016). The organization is observed to deal with certain downside risk factors relied on strategic, financial, operational and compliance risks that exist within retail and online markets. Strategic factors such as diversity, food waste, brand’s product packaging, carbon emission along with ethics and sustainable sourcing that can impose risk to the company. Some operational risk factors that impose threat to Discount Superstores Group’s business are associated with its events and are not confined to failures to company with the product safety factors (Vargas, Calva & Camacho, 2015). Certain risk factors are also there in the firm of data breaches, security asset and business disruptions that can result in cyber-attacks. Downside risks are also imposed on Discount Superstores Group concerned with compliance factors. The company is observed to be remain subject to contractual agreements, certain related regulations and applicable laws that imposes risks regarding regulatory and legislative changes. Certain drastic changes can result in breeches which can lead to drastic negative effects on the reputation and profitability of the organization, significant fines as well as certain other consequences (Dudin, Kucuri, Dzusova & Namitulina, 2015).

The business model canvas of Discount Superstores Group made my views clear regarding recommendations which can be offered to the company. I have gathered that in order to attain competitive advantages certain important aspects of the company must be considered. I can also indicate that for observing positive business changes growth strategy and low-price strategy can be implemented. I would also recommend change within the pricing strategy followed by Discount Superstores Group as it provides negative perception concerning the product quality provided by the company (Amanullah, Ab Aziz Hadi & Ibrahim, 2015). I would also prefer that the company can implement strategies of offering value added services to its consumers considering input costs. This can facilitate the consumers to perceive that the company is providing better quality products based on which they will agree to pay more for them. Considering the business canvas model, I would also have recommended that change must be there regarding increase in the organic food percentage within stores that can further promote healthy eating. I would also predfer change in Discount Superstores Group’s safety strategy, one stop shops and financial services (Discount Superstores., 2018). In case safety strategy is implemented in the organization, I can suppose that it can have a multiplying effect and can reach several people in a short time span.

Downside Risks of Discount Superstores Group

Conclusion

The objective of this report was to evaluate the critical success factors that can facilitate the company in attaining sustainable growth through carrying out evaluation of its business model canvas. It is gathered from the report that Critical success factors of Discount Superstores Group is observed to have unique power of advertising as well as public relations by means of newspapers, journals and increased media use. Moreover, the prices of the products offered by the organization is cheaper and affordable in contrast to its rival retailers. It along focuses on offering convenient shopping experience to all its consumers in the nation.

Considering the findings gathered from the completion of the report, some significant recommendations are offered in consideration to the fact that Discount Superstores Group must bring some changes and diverts its focus to provide less than two offerings. This is because products can cause confusions related with the real product offering. In addition, recommendations are also provided concerning being certain changes related with setting low price strategy. Discount Superstores Group is recommended to increase price of its products as quality is not as per the price.

References

Amanullah, A., Ab Aziz, A., Hadi, F. A., & Ibrahim, J. (2015). Comparison of Business Model Canvas (BMC) Among the Three Consulting Companies. International Journal of Computer Science and information Technology Research, 3(2).

Caetano, A., Antunes, G., Pombinho, J., Bakhshandeh, M., Granjo, J., Borbinha, J., & Da Silva, M. M. (2017). Representation and analysis of enterprise models with semantic techniques: an application to ArchiMate, e3value and business model canvas. Knowledge and Information Systems, 50(1), 315-346.

Discount Superstores., (2018). Retrieved 12 April 2018, from https://in.linkedin.com/company/discount-superstores-group-pty-ltd

Dudin, M. N., Kutsuri, G. N., Fedorova, I. J., Dzusova, S. S., & Namitulina, A. Z. (2015). The Innovative Business Model Canvas in the System of Effective Budgeting/Asian Social Science; Vol. 11, No. 7.

Dudin, M., Kucuri, Dzusova, S., & Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.

Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.

Joyce, A., & Pigneur, Y. N. (2015). France.(2015): The triple layered business model canvas: a tool to design more sustainable business models. In Conference Contribution. With assistance of ARTEM. Nancy, France (Organizational Creativity International Conference). Available online at https://www. academia. edu/12914336/The_triple_layered_business_model_canvas_a_tool_to_design_ more_sustainable_business_models, updated on.

Plenter, F., Fielt, E., Hoffen, M., Chasin, F., & Rosemann, M. (2017). Repainting the business model canvas for peer-to-peer sharing and collaborative consumption.

Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., & Güemes-Castorena, D. (2016). Methodology for the of building process integration of Business Model Canvas and Technological Roadmap. Technological Forecasting and Social Change, 110, 213-225.

Vargas, I. S., Calva, A. L. G., & Camacho, J. H. (2015). Business model canvas. Ciencia Huasteca Boletín Científico de la Escuela Superior de Huejutla, 3(5).