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Company Overview

Discuss about the Creating value through business model innovation.

The following report focuses on the preparation of a business model canvas for the startup logistics company named Shippit. The business model canvas is needed to be completed for the companies to understand what types of products and services are needed to be done to improve the operations of the company. The company faces several issues and challenges in their respective industry and it is very important to resolve these issues to provide better services to the customers at large.

The primary purpose of this report is highlight on the different issues that are faced by this organization and go through a proper study of it through the nine building blocks. This will help the organization to understand the risks that are there in the operations. In fact, a relationship between the nine building blocks will have to be shown in order to identify the risks and their mitigation processes. The critical success factors and the ways to handle the business better will also have to be discussed in this report. The mitigation of the risks will provide the company with the competitive advantage indeed.

Shippit is an Australian shipping platform for the retailers in common (, 2018). This helps the consumers to save more time and provide them with the necessary services with smaller time. This also saves the money of the customers as they can perform online operations. This is very satisfying for the customers as well. They can deliver the goods for the retailers within a short time and this helps them to trace their good properly. The delivery options are easier for them as well. They have provided a great advantage for the retailers in a great many ways indeed. They take care of the customers by providing them with the safer delivery options. They track the entire delivering process by their technology based parcel delivery features (, 2018).

Shippit delivers a wide range of products and services to their customers. They provide the safe delivery of the parcels to their customers indeed. Shippit is now committed to provide the retailers all across Australia. They dispatch thousands of delivery of the products to the customers each month. The retailers of all the sizes and shapes have been satisfied with the software Shippit uses in their operations. This company had been launched in the year 2015 to give strong competition to Australia Post.  They have been providing the courier online services for more than 300 retailers in the country. They are committed to deliver their customers with the best services even outside their shifting hours indeed. In the recent times, Shippit has signed a contract with the Australian postal service that would help them to reach to more number of customers in the country. They can cover a great range of the regional Australia and cater to the servicing of the people through email and SMS notifications

Key Partners, Activities, and Value Proposition

The co-founders and joint CEOs of Shippit are William On and Rob Hango- Zada. There are some other members in this company in other departments as well. The other active departments are the HR, Finance and Marketing departments. All the employees work under the strict supervision of their seniors. They are always dedicated to provide the best services for their companies. All these employees have helped a great deal to achieve the goals of the company indeed.

The company provides the customers with the best services when they work in the retail logistics industry. Their primary objective is to provide the customers with the best products that should help them to improve their reputation as well. Their target is to capture the market and gain the competitive advantage by beating the Australia Post.

Key Partner

 The key partners for Shippit are the different airports, dealers of the train stations and the bus stations indeed (Muhtaroglu et al, 2013).

The manufacturing partners of the different trucks by which the retail products are shipped.

The supermarket chain is also their principle key partners as well.

Key Activities

One of the activities of Shippit is the improving the products and services they offer to the customers.

Product development is also their main activity indeed (Frankenberger, Badke-Schaub & Birkhofer, 2012).

The marketing of their services is also very important as well (Ferrell & Hartline, 2012).

Value Proposition

The value proposition for the customers is to provide them with the convenience of payment and delivery options (Osterwalder et al., 2014).

The delivery of the products very fast is also a very challenging value proposition for Shippit.

They should be available to the customers.

Customer Relationships

Shippit should build up a strong customer relationship by the virtues of personal assistance.

Shippit should provide the customers with the attachment with them through SMS facilities and through social media. The fact of keeping in touch with them will surely increase their profitability (Muhtaroglu et al, 2013)

Customer Segments

The customer segments should be the big and small retail companies who provide their products through the logistics chain of Shippit.

Shippit should identify their customers in a proper way and these customers should be the people who prefer online logistics supply with the help of innovation (Amit & Zott, 2012).

Key Resources

 The key resources are their ability to utilize their distribution channels.

The intellectual property of Shippit will also act as a key resource.


The main distribution channels for Shippit should be social media. The use of social media should be used to connect with the customers and provide them with the proper solutions (Tuten & Solomon, 2017). 

Cost Structure

The cost structure of Shippit will depend on the distribution costs and the costs that are needed for the maintenance of their vehicles. The storage costs are also an important part of their cost structure (Lu & Liu, 2013).

Revenue Streams

The revenue streams would depend on the percentage of sales of their services. The use of technology will also be held as a medium for their revenue streams (Garnefeld et al., 2013).

There is a very strong relationship between the nine building blocks of the business model canvas. The cost structure is very important to provide a giant market for the organization. This will help them to resolve the financial issues indeed. The value proposition is also very important to help the company to gain the competitive advantage over their rivals (Campbell, Coff & Kryscynski, 2012).  They should make out the value proposition of their rivals as well to increase their services and reach to mire customers. This can be held as an effective business strategy. The distribution channels and key resources are also important for them as well. They have to construct a strong relationship between the customers to profit more in their line of business. Other issues like the fees of the brokers and the costs for advertising on the social media will also have to be taken under the cost structure and revenue streams. The company can add more variants in providing better service to their customers.

There are many critical factors that have to be discussed for their success and gaining competitive advantage of Shippit. They need to take up some innovative strategies than other companies in their industries that would give them the desired competitive advantage.

  • Shippit needs to make their delivery time faster and secure in all sections.
  • Shippit also needs to introduce some methods by which the shipments can be tracked effectively with the use of the technology (Narula, 2014).
  • They should provide their services both in the rural and urban areas of Australia.

Some important strategies should be used in order to cope up with the risks that are very important in this industry.

As the market size is increasing, Shippit should bring in some innovative thoughts in their operations as well. They should welcome the customers with various offers and prizes who will avail their services (McNeil, Frey & Embrechts, 2015).

They should try to sustain their business possibilities by improvising the different models of innovative thoughts into their operations.

In this course, I would suppose different changes that would enhance the services and products of Shippit. I would try to increase the distribution channels and practice the democratic leadership in my business. This would encourage the employees to bring out their innovative thoughts. If these thoughts are implemented this would seriously effect the business operations of Shippit. Their sales graph would go up and number of customers would surely increase.


This paper can be concluded by saying that Shippit has some big opportunities in front of them to progress in this competitive business environment. If they implement the plans and focus on fulfilling the needs of their customers this will surely impact the business profitability of the organization indeed. Their customer segments should be improved as well.


Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), 41.

Campbell, B. A., Coff, R., & Kryscynski, D. (2012). Rethinking sustained competitive advantage from human capital. Academy of Management Review, 37(3), 376-395.

Ferrell, O. C., & Hartline, M. (2012). Marketing strategy, text and cases. Nelson Education.

Frankenberger, E., Badke-Schaub, P., & Birkhofer, H. (Eds.). (2012). Designers: the key to successful product development. Springer Science & Business Media.

Garnefeld, I., Eggert, A., Helm, S. V., & Tax, S. S. (2013). Growing existing customers' revenue streams through customer referral programs. Journal of Marketing, 77(4), 17-32.

Lu, Q., & Liu, N. (2013). Pricing games of mixed conventional and e-commerce distribution channels. Computers & Industrial Engineering, 64(1), 122-132.

McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Muhtaroglu, F. C. P., Demir, S., Obali, M., & Girgin, C. (2013, October). Business model canvas perspective on big data applications. In Big Data, 2013 IEEE International Conference on (pp. 32-37). IEEE.

Narula, R. (2014). Globalization and technology: Interdependence, innovation systems and industrial policy. John Wiley & Sons.

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want. John Wiley & Sons. (2018). Shippit. Retrieved 26 March 2018, from

Tuten, T. L., & Solomon, M. R. (2017). Social media marketing. Sage.

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