Triple Layered Business Model Canvas †Free Samples to Students

Question: Discuss about the Triple Layered Business Model Canvas. Answer: Introduction The primary objective of the given report is to deconstruct a business model of a new innovative business model. The chosen company for deconstruction is Curbside. Curbside is a business established in the year 2013. The company was established by a group of ex- Apple engineers who wanted to enhance the journey of the customer (Armstrong et al., 2015). Working alongside retailers, they have developed a mechanism, with the help of which customers can connect themselves to the retailers and get their products picked up on the go. The concept of the startup is extremely simple. The person has to go through the various retailers present on the application and demand the delivery service (Business Insider, 2018). Recently the company has able to gather $25 million from 15 major areas. The company provides hassle fee shopping experience to the various customers by picking their product from the store or the restaurant and then waiting at a curbside counter to deliver the goods at home. Very often people are not able to take out time from their busy schedule and end up feeling trapped, hence this idea was harnessed by the business and the hassle free delivery system was established. The focus of the company lies on cities as well as outside the city areas. The company has been offering various features which will further develop its business model. The CEO of the company is Jaron Waldman. The given report will highlight various aspects of business deconstruction. The business canvas model will be discussed, followed by the relationship between the 9 building blocks (Barquet et al., 2013). Certain Critical Success Factors which are relevant for the business model will be described along with suggestions on how to improve the same (Bocken et al., 2014). Business Canvas Model of Curbside Key Partners Restaurants Retailers : CVS Pharmacy Pizza Hut Nordstrom Yelp H-E-B Westfield Chipotle Boston Market Key Activities Establishing relationships with stores and restaurants Hiring the delivery executives Taking process orders (DaSilva Trkman, 2014). Maintaining and managing their mobile applications and website page Processing of payments Value Proposition The value offered to the users Goods which can be ordered from restaurants and retail stores Door step delivery Value offered to the partners: Additional orders Reduced delivery expenses (Cochrane, 2014). Customer Relationships The customer relationship is managed with the help of : Social Media Customer Feedback Customer support (Hong, Fauvel, 2013). Customer Segments The people who want goods at the convenience of their homes Busy individuals who do not get time shop offline Housewifes, students, office goers Key Resources Technology used for application management (Carayannis, Sindakis Walter, 2015). Products of the stores they have partnered with and restaurants The delivery staff Channels Android and iOS mobile applications Website Cost Structure Office expenses Delivery staff expenses Technological website and app maintenance (Curbside.com. ,2018). Revenue Streams Commission charged from retailers and restaurants Urgent delivery fees Subscription fees Advertising costs (Kiel, 2014). Relationship between the 9 building blocks of the model The main aim of the business canvas model is to identify the various components of the business and to understand how the business functions. A business canvas model goes a long way in helping a researcher to identify the various resources available to him, the cost structure of the firm, the revenue structure and the value proposition the customers are offered by the business (Sinkovics, Sinkovics Yamin, 2014). The business model canvas provides details about the following aspects : Key Partners Key Resources Key Activities Value Proposition Customer segments (Sutton-Brady, Kamvounias Taylor, 2015). Customer relationships Cost structure Revenue streams Channels The business canvas model often describes the relationship that exists among the various components of any business organization. A canvas is incomplete if each component of the 9 blocks is not related to one another. This means that a change in one of the blocks will lead to a change in the other blocks present (Kiel, 2014). In the case of Curbside, the revenue and cost structure of the firm is closely related. For instance, if there is any change in the cost structure of the firm which is a result of an additional resource being employed, then this will increase the business capacity of the firm which in turn will improve its revenue capacity. In the same manner, the Value Proposition which is offered by the firm, is also related to the customer segments and the resources which a firm owns (Casadesus?Masanell Zhu, 2013). In this manner, the firm will be able to enhance its value proposition if he makes use of efficient resources. The channel which Curbside aims to use is also a major determining factor of the cost structure of the firm. For example, as it makes use of social media channels, the cost structure for advertisement is particularly low. In case the firm decides to opt for the more expensive advertisement medium then the cost structure of the firm will change accordingly. All the aspects of the business model are dependent on one another. Another example can be used of the case whereby the Customer segments and the customer relationships are concerned. Currently the firm has been targeting extremely busy consumers for its operations. If in future, the company decides to expand its business and decide to incorporate new products in the business operations, then it will have to add some additional resources. Adding these resources would directly pinch the cost structure and expenses of the firm. However if the customer segments served are increased, so will the revue increased (Joyce Paquin, 2016). Hence, from this example it can be witnessed that the blocks are interrelated to one another and any change in one of them would bring about a change in the other blocks too. Critical Success Factors of Curbside The critical success factors can be described as those factors which help a business organization to stay on its goal. It helps the organization in achieving its mission and objectives. The critical success factors for Curbside are as follows: At present the business has become a very popular concept in various cities around the globe, however, it can take some efforts and try to see to it that the customers of the organization are satisfied by the services that the organization tends to offer. Customers are considered to be one of the most critical aspects of any organization the satisfaction of which will be able to take the organization to new heights (Muhtaroglu et al., 2013). That is why the increase in the customer base is often considered to be an essential measurement of a firm`s success. The primary aspect of the Curbside business is to provide on time delivery to the customers. Any delay in the delivery of the products to the customers, will cause a sense of dissatisfaction to the given set of consumers and this may lead to the failure of the whole purpose of the business (Schneider Spieth, 2013). The business has been established to save the time of the different consumers. If the business is able to provide on the time delivery then it will be able to continue its operations for a long period of time. The value proposition of Curbside comprises of bringing the customers and the suppliers closer. Very often there are certain customers who are unable to connect to the suppliers as they are unable to take out time and indulge in daily shopping. However the curbside firm wants to provide them with an opportunity to get the desired product free of cost. Hence, if the firm has the ability to connect a large number of suppliers to the customers then it will be successful in the future. Causes relating to Downside risk Downside risk can be described as an event in the external environment of the firm which may have an impact on the functioning of the business and may lead to a risk or huge losses for the firm. For curbside, this downside risk may be a result of a strike conducted by the delivery executives which could stop the business from carrying out its activities. Such a risk could result in huge losses for the firm as it could lose out on the commissions of the business. Another reason why a downside risk can occur is the free delivery offered by the stores. If the stores start delivering the goods to the consumers for free then, the whole reason for establishment of the firm might suffer a blow (Schaltegger, Hansen Ldeke-Freund, 2016). Conclusion Therefore, from the given analysis on Curbside it could be concluded that the firm has analyzed the opportunity available in the market and harnessed it. It took advantage of the fact that certain customers are unable to take out time for their grocery shopping and that due to this they are missing out on good products. This gap was captured by Curbside and they formed a link between the retailers and the customers thereby making huge revenue on commission received. Recommendations Although all business houses have a unique business model, there are a certain number of changes which can be made to different models in order to enhance them and see to it that the company is able to carry out the different operations in a more successful and refined manner. As the customers are provided a free delivery system, the company can at least charge them nominal fees so that the firm is able to incur a certain amount of revenue (Massa Tucci, 2013). By doing so, the company will be able to increase its revenue structure. At present, it charges revenue from its partners, but charging small fees from its customers would also go a long way in determining increased opportunities. Currently, the business model of the firm permits that only the retailers are charged a subscription and commission fees however it is recommended, that customers could have been charged a fees so as to ensure extra revenue for the firm which would have bought about a change in the revenue structure of the firm. At present the partners associated with Curbside are very limited. The company can make an effort and increase the number of restaurants and retail stores associated with the firm. Currently only certain retail stores get their goods to the customers through curbside. Had the given business model was possible to change, I would have added more partners for the firm thereby increasing its network Conducting a market research has been recommended in order to ensure that the Curbside is able to fund better retailers to provide the service and expand its operations by serving a larger market of consumers. Identification of consumer expectations would also help the firm with the expansion idea. References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Barquet, A. P. B., de Oliveira, M. G., Amigo, C. R., Cunha, V. P., Rozenfeld, H. (2013). Employing the business model concept to support the adoption of productservice systems (PSS). Industrial Marketing Management,42(5), 693-704. Bocken, N. M., Short, S. W., Rana, P., Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. Business Insider (2018). Shopping app Curbside just raised $25 million to help you never wait in line again. Retrieved 27 March 2018, from https://www.businessinsider.in/Shopping-app-Curbside-just-raised-25-million-to-help-you-never-wait-in-line-again/articleshow/47816335.cms Carayannis, E. G., Sindakis, S., Walter, C. (2015). Business model innovation as lever of organizational sustainability.The Journal of Technology Transfer,40(1), 85-104. Casadesus?Masanell, R., Zhu, F. (2013). Business model innovation and competitive imitation: The case of sponsor?based business models. Strategic management journal,34(4), 464-482. Cochrane, T. D. (2014). Critical success factors for transforming pedagogy with mobile Web 2.0.British Journal of Educational Technology,45(1), 65-82. Curbside.com. (2018). The new standard in e-commerce for brick and mortar stores. Retrieved 27 March 2018, from https://curbside.com/ DaSilva, C. M., Trkman, P. (2014). Business model: What it is and what it is not.Long range planning,47(6), 379-389. Hong, Y. C., Fauvel, C. (2013). Criticisms, variations and experiences with business model canvas. 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. Kiel, I. H. (2014). Entrepreneurial marketing. Massa, L., Tucci, C. L. (2013). Business model innovation.The Oxford Handbook of Innovation Management, Oxford University Press, Oxford, 420-441. Muhtaroglu, F. C. P., Demir, S., Obali, M., Girgin, C. (2013, October). Business model canvas perspective on big data applications. InBig Data, 2013 IEEE International Conference on(pp. 32-37). IEEE. Schaltegger, S., Hansen, E. G., Ldeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues. Schneider, S., Spieth, P. (2013). Business model innovation: Towards an integrated future research agenda.International Journal of Innovation Management,17(01), 1340001. Sinkovics, N., Sinkovics, R. R., Yamin, M. (2014). The role of social value creation in business model formulation at the bottom of the pyramidimplications for MNEs?.International Business Review,23(4), 692-707. Sutton-Brady, C., Kamvounias, P., Taylor, T. (2015). A model of supplierretailer power asymmetry in the Australian retail industry.Industrial marketing management,51, 122-130.