Entrepreneurial success requires the ability to not only identify a gap in the market, but also to prepare a convincing business case that clearly identifies the need that is being filled with the product or solution, to proceed with the business idea. A business case provides the structure around the idea, its position in the market, financial requirements, competitive strengths and stakeholder involvement.
In this assessment, you will prepare a business case based on the Business Model Canvas studied in modules 1-4. The business case will present market research findings including barriers, customer and competitor analysis, the 7 P’s, and the likelihood of success of the product when it enters into a chosen market.
Using the Business Model Canvas developed during the learning activities in modules 2-4, prepare a business case by expanding each of the nine components of the canvas in the following order:
- Customer Segments. Identify and analyse at least two (2) customer segments or ‘customer personas’ who are your targets for the business idea. Each customer segment should include age, gender and relationships if relevant, locations, interests, communication methods, drivers, and all other specific characteristics as identified in market research in module 3.
- Value Proposition. Identify and analyse specific value proposition/s for each customer segment. Include competitor analysis and how your value proposition provides a gap in the market and what benefit the idea provides to the customer/s.
- Channels. Identify and analyse the most appropriate channels to connect with and provide goods or services to the customer segments. Outline barriers.
- Customer Relationships. Identify and analyse most appropriate methods to build and manage relationships with the identified customer segments.
- Revenue Streams. Identify pricing structures and explain how the business idea might become economically viable. Identify the different revenue streams, for example, providing a tiered product with different features that will be priced differently.
- Key Resources. Identify and analyse human and other resources needed, barriers to achieving the level of resourcing, and any limitations with obtaining the resources.
- Key Activities. Identify and analyse specific activities required that may either hinder or progress the idea.
- Key Partnerships. Identify and analyse partnerships needed to provide services to the business, and risks around those partnerships that may be critical to the success of the idea.
- Cost Structure. Prepare a financial forecasting spreadsheet based on the forecasting template provided in the subject resources module 4.2. Identify the break-event point. Identify any assumptions and reasons for your forecasted figures. Include any intention to seek investors and investment required.
The business case is a tool to persuade stakeholders and needs to be written clearly to outline the benefits of the idea to the market and the likelihood for business success.
Provide your Business Model Canvas as a PDF, along with the analysis of each section. You may use tables, spreadsheets, mind maps, graphics or other presentation software to justify your analysis and provide engagement with the stakeholder audience.
Understanding the Business Model Canvas
The report throws light on analysing the business case of Delicious Delights which is considered to be the online catering services through identifying and explaining the nine elements of the business canvas model. The Business Canvas Model is considered to be the strategic management tool which helps in defining as well as communicating business concept or idea in a positive manner. It is the tool which is helpful in understanding the rationale of the company that will be helpful for them in achieving along with outlining the nine segments which will be suitable for the growth prospects (York, 2018). There are different kinds of start-ups which have emerged in the technological era and everything is moving in the gravitational force which has been created with the help of Digital Marketing. In the recent times, the food delivery or catering services are achieving the great heights and the BMC helps in describing as well as designing the business model successfully.
As commented by Wrigley and Straker (2016), the business canvas model is considered to be the strategic tool which mainly offers focus, transparency and flexibility. The BMC helps in bringing clarity to the core aims of the company and leaves out the different unnecessary stuffs. In the respective regard of the Delicious Delights which is the Online Catering Service, the BMC will be helpful in identifying the strengths, weaknesses, opportunities, threats along with priorities.
Technology partners which includes mobile or website applications
Delivering meals and managing payments
Listing and deciding meals
Operations of call centre
Delivers the freshly cooked food for working professionals at the office
Help in increasing sales as well as revenues of the online catering service
Offers and promotions
Social media and email
Live chat and SMS
Employers or offices
Proper human resources include logistics team and marketing team
Physical Resources such as office building and delivery vehicle
Promotion and Advertisement such as through social media along with outdoor advertisement
Cost of Operations
Cost of different physical resources
Training cost of employees
Sale from meals
On page advertisement
It includes the group of individuals who are required to be served by the company and in every scenario, the organizations need profitable customers for surviving in the market which is competitive in nature. In such scenario, the demographic information of the customers is required as it will be enhancing the level of the success which can be gained by the company in a sustainable manner. In case of Delicious Delights, the two main customer segments are described as follows:
It is the first and foremost group who will be of 24-45 years of age group which includes both male and female. These are the ones who do not have sufficient time for going out for lunch or other types of meal. In many occasions, it can be seen that the working professionals stay alone in a place which is away from their home and they are staying as Paying Guests or Hostels (Onken & Campeau, 2016). In such scenario, the Delicious Delights Company can become a suitable option for such customers and it will be profitable for the online catering service. The mode of communication which can be used by the customers includes the online ordering from official website of the company to different locations that will be enhancing the profitability and growth of company.
Components of the Business Case
On the other hand, the other group or customer segment Companies or Employers wherein the age group can range from 30-55 years and the gender includes both male and female. The main aspect is willingness of employers to provide lunch to their employees in special occasions wherein Delicious Delights can be one suitable option and it will be effective for generating high level of revenues (Ojasalo & Ojasalo, 2018). In the aspect, the communication channel can be the utilisation of online or official website of the company wherein prior orders are required to be provided as to receive timely delivery.
Value Proposition is innovation, service or the feature intended to make the organization or the products which are being sold by the company is attractive to the different customers. The entire process is based on review as well as analysis of costs, value and benefits which the company can deliver to the customers (Nidagundi & Novickis, 2016). In case of Delicious Delights, the main attraction or the value which is provided by them is the delivering of freshly cooked food for the working professionals at the doorsteps of office premises. It is the main reason the customers will be choosing Delicious Delights over the other competitors. In the current scenario, there are different online food delivery services such as Uber EATS and Zomato which provides the different food items to customers from selective restaurants (Keane, Cormican & Sheahan, 2018).
However, in case of Delicious Delights, the main aim is to eliminate the task of deciding what to consume, as the catering service professionals will be deciding new and healthy dishes for the customers which will be helping to attract the customers. Moreover, the process will be helpful in increasing the revenue and sales of Delicious Delights.
The channel helps in describing the process through which the organization can communicate with the customers and reaches to them. It will be suitable for delivering the value proposition and enhance their services in a suitable manner. It is essential for the company to understand the pathway which will be best for them for reaching out to customers (Ju, Kim & Ahn, 2016). There can be inclusion of different channels such as physical channels such as stores or the online channels such as through website that will be beneficial for targeting and attracting large number of customers.
In case of Delicious Delights, there are different involvement of channels which can be used by them in meeting the requirements of customers in a successful manner. The channels include mobile application, official website of the company along with advertisement as well as promotional techniques which can be used by them in managing the different requirements of customers successfully (Dudin et al., 2015). The company Delicious Delights can include the various online options such as outdoor advertisement which will be capable of enhancing the demands of different customers and it will be increasing the level of sales or revenues.
Market Research and Analysis
However, there can be few barriers which can be faced by Delicious Delights that includes the fact that there can be different customers who may not prefer and trust the online mode of ordering or delivery of food. In such scenario, the company can include the mix of both online and physical communication channels such as setting a proper set-up wherein the company can be beneficial in improving their efficiency and it will be able to provide trust among the customers successfully.
The customer relationship helps in describing the kind of relationship that is established by the company with the specific kind of segments of customers. The relationships among customers are mainly driven through customer acquisition, boosting of the sales along with retention of the customers in the market. In order to grow in the market, proper relationships with the customers is the essential approach which needs to be followed by them as it will be enhancing the effectiveness of the process (Dijkman et al., 2015). In case of Delicious Delights, the company or the online catering service company can maintain strong and positive kind of relationship with customers through the usage of different offers as well as promotions that can make the customers happy and there will be second time purchase soon.
In addition, there can be referral programs that can be adapted by them as to gain the strong base of customers and improve their sales percentage in the market. As it is the online catering business, there can be issues which can be faced by customers, in such scenario, there should be an option of SMS or Live Chat which can be beneficial in helping and assisting customers 24*7 (Dalborg, von Friedrichs & Wincent, 2015). There can be inclusion of the after sales services program wherein after eating the food from Delicious Delight, there can be option of emailing regarding their experience and grievances can be shared by the customers for improving their experience suitably.
While starting different kinds of business, the different individuals think regarding the generation of revenue for company and in such scenario, the different customers think regarding the price which needs to be paid by them. There are various kinds of ways and techniques which can be used by the company such as sale of asset, licensing along with advertising (Dal Lago, Corti & Pedrazzoli, 2016). The revenue segments or streams are required to be linked with personas or segments as well as value proposition. In case of Delicious Delights, the revenue can be generated from sale generated from meal which will be effective in maintaining their profitability.
Customer Segments and Value Propositions
In addition, there can be inclusion of the on-page advertisements adapted by the Delicious Delights in which they can mention the special offers and discounts provided to different customers as it will be increasing their revenues and sales percentage to a large extent within a short span of time (Dahle, Dybvik & Steinert, 2019). There is inclusion of business or catering purchases which will be effective in attracting and retaining large number of customers in the market effectively. There can be different offerings of menu among customers which will be suitable for contributing to the overall revenues successfully.
The different key resources help in describing the essential assets which are required to make the business model perform efficiently. These include different things like human resources, financial aspects as well as electricity which would be required to make the work effective and it will be suitable in generating high level of sales and revenues in the future. The respective resources need to be mapped with the key activities that will be considered to be the asset of the company as to support and sustain the business (Crick & Crick, 2018).
The main resources which can be included in case of Delicious Delights are human resources that consists of logistics team, marketing team along with technical team which plays a major role in making the business effective. In case of online catering services, the delivering of the food items play a vital role in managing experience of customers thoroughly. On the other hand, there are different physical resources such as delivery vehicles along with online website of the company that can be enhancing effectiveness of the online catering service successfully (Blank, 2017).
The key activities are important type of activities which are helpful in executing the value proposition of the company. These include research as well as development related strategy as well as product distribution that needs to be incorporated by the firms in a successful manner. It is essential in execution of the value proposition of the company and gain competitiveness in the market. The key activities of online catering services company named Delicious Delights include delivery of the meal, managing proper payments along with call centre operations which will be suitable in making the tasks easier for them (Bekhradi, Yannou & Cluzel, 2016).
Additionally, the processing of the orders which are being placed by the customers needs to be managed with providing and showing top priority as it will be enhancing the growth of the firm effectively. Moreover, there can be increase in collaboration with different food joints and suppliers who can be beneficial in achieving the appropriate kind of products and raw materials required for managing efficiency.
Channels and Communication Strategies
The key partners play a vital role wherein the different external organizations or suppliers would require to perform the key activities and deliver proper value to customers suitably. As to optimize the operations and reduce risks, there can be cultivation of buyer and supplier relationship which can help them to focus on core activities. For Delicious Delights, the key partners who play a vital role include investors, technology partners such as mobile or website application along with payment processor which will be creating a proper effectiveness in delivering the assured services to customers appropriately (Antikainen & Valkokari, 2016).
In the cost structure, there are different costs along with expenses which the company can incur while operating the business model. It is the final step in the respective process and it plays a vital role as it assists he team to decide whether to pivot or proceed. A cost-driven company tries to adapt different techniques which will be minimizing all costs, however, a value-driven company will be trying to focus on delivering the great value to customers in terms of prestige and quality.
The cost structure o Delicious Delights include salaries provided to employees, training cost to employees as well as costs related to advertisements and procurement which will be making them effective (Antikainen & Valkokari, 2016). The employees who are employed with the company needs to be trained and well-acquainted with the different kinds of applications of the company for meeting the different needs of customers effectively.
Therefore, it can be concluded that business canvas model has been helpful in generating high level of efficiency and flexibility in understanding the importance of the company in meeting the demands of customers and delivering them with the appropriate kind of services in a suitable manner. With the appropriate design of the business canvas model, the level of priorities and strengths which are helpful in enhancing the growth of the company suitably in comparison to other competitors.
Antikainen, M., & Valkokari, K. (2016). A framework for sustainable circular business model innovation. Technology Innovation Management Review, 6(7).
Bekhradi, A., Yannou, B., & Cluzel, F. (2016). Importance of problem setting before developing a business model canvas. In DS 84: Proceedings of the DESIGN 2016 14th International Design Conference (pp. 907-916).
Blank, S. (2017). Why the lean start-up changes everything. Harvard business review.
Crick, J. M., & Crick, D. (2018). Angel investors’ predictive and control funding criteria: the importance of evolving business models. Journal of Research in Marketing and Entrepreneurship, 20(1), 34-56.
Dahle, Y., Dybvik, H., & Steinert, M. (2019, June). A dynamic and a static approach to the business model-Investigating the potential difference in business model focus. In 2019 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC) (pp. 1-5). IEEE.
Dal Lago, M., Corti, D., & Pedrazzoli, P. (2016, April). Turning a lean business model into a successful Start-up in the wearable technology sector: The case of Clara Swiss Tech. In Workshop on Business Models and ICT Technologies for the Fashion Supply Chain (pp. 111-122). Springer, Cham.
Dalborg, C., von Friedrichs, Y., & Wincent, J. (2015). Risk perception matters: Why women’s passion may not lead to a business start-up. International Journal of Gender and Entrepreneurship, 7(1), 87-104.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the Internet of Things. International Journal of Information Management, 35(6), 672-678.
Dudin, M. N., Lyasnikov, N. V. E., Leont’eva, L. S., Reshetov, K. J. E., & Sidorenko, V. N. (2015). Business model canvas as a basis for the competitive advantage of enterprise structures in the industrial agriculture. Biosciences Biotechnology Research Asia, 12(1), 887-894.]
Ju, J., Kim, M. S., & Ahn, J. H. (2016). Prototyping business models for IoT service. Procedia Computer Science, 91, 882-890.
Keane, S. F., Cormican, K. T., & Sheahan, J. N. (2018). Comparing how entrepreneurs and managers represent the elements of the business model canvas. Journal of Business Venturing Insights, 9, 65-74.
Nidagundi, P., & Novickis, L. (2016). Introduction to lean canvas transformation models and metrics in software testing. Applied Computer Systems, 19(1), 30-36.
Ojasalo, J., & Ojasalo, K. (2018). Service logic business model canvas. Journal of Research in Marketing and Entrepreneurship, 20(1), 70-98.
Onken, M., & Campeau, D. (2016). Lean startups: Using the business model canvas. Journal of Case Studies, 34(1), 95-101.
Wrigley, C., & Straker, K. (2016). Designing innovative business models with a framework that promotes experimentation. Strategy & Leadership, 44(1), 11-19.
York, J. M. (2018). Putting Lean Startup into perspective: A novel approach for discovering and developing a successful business model. Arch Bus Adm Manag: ABAM-104. DOI, 10.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2020). Preparing An Essay On Business Case Using Business Model Canvas.. Retrieved from https://myassignmenthelp.com/free-samples/ent102-venture-ideation.
"Preparing An Essay On Business Case Using Business Model Canvas.." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/ent102-venture-ideation.
My Assignment Help (2020) Preparing An Essay On Business Case Using Business Model Canvas. [Online]. Available from: https://myassignmenthelp.com/free-samples/ent102-venture-ideation
[Accessed 23 February 2024].
My Assignment Help. 'Preparing An Essay On Business Case Using Business Model Canvas.' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/ent102-venture-ideation> accessed 23 February 2024.
My Assignment Help. Preparing An Essay On Business Case Using Business Model Canvas. [Internet]. My Assignment Help. 2020 [cited 23 February 2024]. Available from: https://myassignmenthelp.com/free-samples/ent102-venture-ideation.