Answer
Think Big
Introduction
A good business model has the ability to gain value proposition that can attract customers and able to obtain the structure of valuable cost and risks. It is able to produce important value capture with the help of the business that makes and provides products and services. The main aim of this report is to elaborate on the importance of the business model canvas in the business. Core Logic Australia Holdings Pty Limited is selected for the purpose of emphasizing the role of the business model and their relationships in a significant manner. Along with critical success factor will be described under this assignment and the discussion will be made on the downside risks. At last, the conclusion and the recommendations will be drawn so that the potential solutions can be suggested.
Background of the company
Core Logic Australia Holdings Pty Limited is a private company which is owned by the foreign private company, getting revenue mainly from gathering, preserving and distributing property information, by its wholly-owned subsidiary RP Data Pty Limited. It was incorporated in April in Victoria. The company was established in 2011 and the same year the company acquired the 60% equity interest in RP Data Pty Ltd. The company is incorporated There are around 600 employees are employed. The company operates its business in Australia, New Zealand, and Hong Kong. The head office of the company is situated in Sydney. The company is US based and NYSE listed.
Business model canvas
A business model can coherent the data and logic that sustain a value proposition for the customers as well as it maintain a viable structure of revenues and costs. It has been found that the good business model is able to give effective services to the value customers. A business context can be determined as the equipment which can be used for the purpose of analyzing the environment of working within an organization.
Key Partners
· Core logic AG
· Government
· Suppliers
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Key Activities
· to provide the accurate and depth information to the business an individual’s so that they can take decisions, communicate more effectively
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Value Proposition
· provides the high quality of services
· building new opportunities for the business
· fulfill the needs of the customer by providing the latest information on the property
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Customer Relationships
· By providing right and latest guidance of the property to the customers
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Customer Segments
· People who want service regarding the information of the property
· Investors
· Government
· Private company
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Key Resources
· Trained staff
· Other technologies
· Database of property’s information (Hanemann, Sayre & Dale, 2016).
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Key channels
· Advertisement of property
· Social media
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Cost Structure
· Marketing and promotional costs
· Technology installation costs
· Administrative and management expenses
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Revenue Streams
· Government funds
· Profits and revenues from targeted market customers
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Building Blocks
Customer segments
The customer of the company is those who want to gain knowledge regarding any kind of property information and analytics products along with the property risk management. The customers of the company encompass the buyers, investors, real estate professionals, corporate and government bodies and finance.
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Source: (IBIS, 2017)
Key partners
The partners of the company help the organization to grow in the industry in an efficient manner. The key partner of the company is Core logic AG because it has 100% shares of the company and it is incorporated in Switzerland.
Value proposition
The value proposition of the company helps the organization to fulfill the needs of the customer significantly (Hassan, 2012). The company is leading the generation and provides the high quality of services to the customers regarding competitor benchmarking, risk management and compliance, claims processing and building cost estimates. This creates the job opportunities for the local citizens that contribute to the development of the country (Han &Lee 2008).
Key activities
The main activities of this business to provide the accurate and depth information to the business an individual’s so that they can take decisions, communicate more effectively and get better results. With the help of the media and the latest technology, the company provides the latest information regarding property (Joyce & Paquin, 2016).
Key channels
The key channels elaborate that how a company communicates with and approach its customer segments for the purpose of delivering its value proposition. The company uses social media, advertisements and promotional campaigns.
Revenue streams
The financial condition of the company is stable as the ultimate parent of this company is Core Logic INC and the largest stakeholder of the company is Core Logic AG.
Cost structure
The company invests in the latest technology for the aim of getting latest information regarding the business. Marketing and promotion is another factor that requires investment.
Key resources
The key resource of the company is skill staff with full of knowledge that resolves the query of the customers. The latest technology is another important resource that helps the company to move ahead in a significant manner.
Customer relationship
Provide proper knowledge regarding property to the customer that helps it to make effective relations with customers for a long period.
Key relationships
The nine blocks of the business model is elaborated to describe the business model of the company which is inter-connected with each other in diverse terms for the business enlargement of the company. The component of value proposition is connected with the customer segment and also with the partners of the company to develop the business. The company is kept the electronically value of every property in Australia and the company facilitates and handle around 90% of Australian valuation instructions every month. The key activities of the company facilitate professionals to prepare properties for market and finance daily which increase the revenue streams of the company (Bertels, Koen & Elsum, 2015). The key lenders of the company are relied on insights to have firm responsible lending programs and customers who ultimately are the focus of the ecosystem require the confidence that they are creating the best decisions around valuable components. The cost structure of the company is dependent on the key activities and key resources which can directly or indirectly influence the customer segment. The company offers the most advanced analytics platform of the world and the expertise of the company help you with property due diligence, property portfolio valuations, automated valuation model solution and digital and consumer marketing using property transaction data.
The business model of the company has great relationships with each other as the company has formulated the customer success team for the aim of giving proper information regarding the property. The company has trust in a one-on-one with clients to effectively understand their unique goals of the business. The company manage all data regarding the information of property and keep updating them.
Critical success factors
The company is on the track if getting success and it would be done with the help of an effective training program (Luthra, Garg & Haleem, 2015). The company provides training to their employees via online, video and face to face by which they come to know about the procedure of how to perform well in an efficient manner. The company cover almost 98% of the property market of Australia and above than 4 billion decisions point in their database. The company is effectively accurate about the data accuracy which permits them to deliver the best advice on their commitment of the most effective and property insights and analytic (Aquilani, Silvestri, Ruggieri & Gatti, 2017). The company has the scale and the experiences in such matters. It has been found that the company constantly growing with over 480 people employed in the country of Australia as well as New Zealand. There are a large number of customers that use Core Logic services and platform so that they can get what they want. The company makes an easy way for the customers as they give a range of dynamic and web-based solutions with offering several mobile application so that the customer can get what they need (Burr, 2016).
Downside risk
The downside risk is an evaluation of the potential security to suffer a decline in value if the condition change of the market or the amount of loss that can e supported as the outcome of the decline. It has the ability to demonstrate the worst case scenario for an investment and indicates that how much the investor stand to lose (Hoepner, Oikonomou, Sautner, Starks & Zhou, 2018). The company can face the issue in handling the entire environment and along with that, the company should focus on managing the financial stability. Transfer in foreign exchange (FX) markets can adjoin costs to global businesses. It has been reported by CBA that around 70% of retailers had FX made cost increases but only 43% had raised prices.
Business model changes
The revenues of the company can be increased in significant way if the customers of the company are loyal and the employees of the company are knowledgeable. It can be possible that people of Australia recommend another mediator to get information about the property (Denuit, Eeckhoudt, Liu & Meyer, 2016). To reduce the chance of losing customers, the business model of the company can be changed so that the revenues of the company can be maintained.
Conclusion and Recommendation
It can be concluded from the above discussion that the role of the business model in the organization is huge as it helps in amplifying the revenues of the company. The report has mentioned the nine building blocks of the business mode in the context of the selected company. The key relationship among nine building blocks is elaborated which gave better understanding about the company. Critical success factors are necessary for the company and the company has some factors such as well skilled employees, updated knowledge regarding property and latest technology. Although, the company is going good there is a requirement of training and development program so that the employees of the company can understand the desire of the company as well as the customers.
References
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Burr, A. (2016). Delay and disruption in construction contracts. Informa Law from Routledge.
Denuit, M. M., Eeckhoudt, L., Liu, L., & Meyer, J. (2016). Tradeoffs for Downside Risk-Averse Decision-Makers and the Self-Protection Decision. The Geneva Risk and Insurance Review, 41(1), 19-47.
Han, H. S., J. N. &Lee (2008). "Analyzing the impact of a firm's capability on outsourcing success: A process perspective. Information & Management 45(1).
Hanemann, M., Sayre, S. S., & Dale, L. (2016). The downside risk of climate change in California’s Central Valley agricultural sector. Climatic Change, 137(1-2), 15-27.
Hassan, A. (2012). The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms – A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom. International Journal of Marketing Studies Vol. 4, No. 3; June 2012.
Hoepner, A. G., Oikonomou, I., Sautner, Z., Starks, L. T., & Zhou, X. (2018). ESG shareholder engagement and downside risk.
IBIS, (2017). CoreLogic Australia Holdings Pty Limited. [online] Retrieved from: https://clients1.ibisworld.com.au/reports/au/enterprisefull/default.aspx?entid=429278.
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.
Luthra, S., Garg, D., & Haleem, A. (2015). Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry. Production Planning & Control, 26(5), 339-362.
