Business Canvas Model Development

This report provides a step-by-step guide on developing a business canvas model, suitable for all types of organizations, including large, small, and medium-sized businesses. The guide includes three business canvas models that are feasible and suitable for different organization sizes. With the help of effective business canvas modeling, companies can easily examine the feasibility of their business functions at the competitive marketplace in advance. This report also references various books and journals on business model development, making it a valuable resource for students and professionals alike.

E BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
Business Model Canvas: .................................................................................................................3
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
E-business refers to a business process conducted through internet. It is the method which
includes purchasing and selling of goods and services, servicing customers, sharing information,
managing production control and many more. It is the term which came into existence in 1996,
with the help of which buying and selling process become easier and quicker. A business canvas
model is going to be discussed in this report which is generally used by organizations in order to
examine their performance (Shahand, van Kampen and Olabarriaga, 2015) . In this report, three
companies use business canvas model which are going to be discussed below. Three companies
are chosen which are of different size and belong to different countries. For large organization,
Chemist Warehouse is taken which is an Australian company. It mainly operates in retail
pharmacies, founded in the year 2000. On the other hand, medium size organization which is
chosen in this report is Urban Clap. It is one of the fastest growing startup company in India.
They provide various services which includes cleaning, plumbing, carpenter and many more. At
last, small organization chosen to complete the project effectively is Roli which is a London-
based music technology company. It is well known for its high tech musical instruments.
Business Model Canvas:
It is a business model which was developed by Alexander Osterwalder and Yves Pigneur.
This model is also known as BMC model which is a graphic representation of different variables
which shows the overall values of the company. It refers to a strategy tool used for the
improvement or development of a new business entity. Along with this, it also helps in
examining the current condition of an existing business organization. There are nine categories
which is included in an business model canvas which is often known as building blocks of a
business organization. These nine elements includes key partner, key activities, key resources,
value preposition, customer relationship, channels, customer segment, cost structure, revenue
stream (Gabriel and Kirkwood, 2016). With the help of these elements company will be able to
perform their task effectively, efficiently and within specific period of time.

Business canvas model for Chemist Warehouse (Large Organization)
It refers to a tool which is used by organizations in order to visualize all the activities for
development of a business. It is the model which includes mainly nine elements in order to
perform their work effectively. In context of “Chemist Warehouse”, all these nine elements are
going to be discussed in detail. It is a large based organization which is a chain of retail
pharmacies, provide cosmetics along with paramedical products. It is an organization which
operates through Australian franchising model and also done their transactions with the help of
online platform (Gudiksen, 2015) .
Chemist Warehouse
Key partners
 Doctors
 Medical
Journals
 Pharmaceutical
companies
 Pharmacists
Key activities
 Information
provider
about
medicines
 Research
 Provide
health and
paramedical
products
Value
propositions
Prescription Drug
information:
 Doctors
 Consumer
 Nurses
 Hospitals
 Medical
Publications
Customer
Relationships
 Hospital or
offices
meeting
 Medical
Journal
Marketing
 Online
Advertising
 Social media
Customer segments
 Corporations
 Universities
or teaching
hospitals
 Medical
professionals
consumers
Key resources
 Human
capital
 Hosting
services
 Web domain
Channels
 Online
websites
 Hospitals
 Offices of
Doctors
 Clinics
Cost structure Revenue streams

 Fixed cost
 Variable cost
 Pay for use structure
 Online marketing
 Web-service consultation
 Key partner:- It is a section or element which mainly includes those individuals who are
associated with the business as well as support Chemist Warehouse in order to execute
their functions effectively and efficiently. This elements consists of Doctors, Medical
Journals, Pharmaceutical companies, Pharmacists and many more (Gloor, 2012).
 Key activities: - In this section of business canvas model, all those activities are included
which are going to be performed by Chemist Warehouse. They provide information about
medicine, also provide health and paramedical products through electronic business.
 Key resources:- Under this section various key resources are required by Chemist
Warehouse so that they operate its functions and other business activities in an effective
manner. These key resources includes human capital, Hosting services, Web domain and
so on.
 Value preposition:- It is the element of business canvas model which consist of various
number of activities need to be performed by Chemist Warehouse. All these activities
help in creating value to their customers. This element includes doctors, nurses,
consumer, hospitals, medical publications and many more which helps in developing
value to the organisation.
 Customer relationship:- Under this section, all those elements are included which is used
by the management team of Chemist Warehouse in order to maintain strong relationship
with customers. It involves some resources such as hospital or offices meetings, medical
journal marketing, online advertisement, social media and many more (Zhang and Wen,
2015) .
 Channels:- It refers to a method through which information as well as goods and services
can be transferred from one place to another. It is the element used by Chemist
Warehouse, in order to share their products and services through online websites,
hospitals, offices of doctors, clinics and many more.
 Customer segment: - It is the element where customers are segmented in different
segments by the management team of Chemist Warehouse. It consists of various

segments such as different corporations, universities or teaching hospitals, Medical
professionals consumers and so on.
 Cost structure: - It refers to the element where cost of the company is incurred. Some of
these resources which is considered by the management team of Chemist Warehouse
includes Fixed cost and Variable cost (Lilien and Grewal, 2012). Fixed cost may include
rent of the stores and on the other hand variable cost may be social media cost.
 Revenue stream: - It is the element which includes different sources though which
company will be able to earn money such as pay for use structure, online marketing, web-
service consultation etc.
Positive impact: With the help of developing effective business canvas model company
will be able to examine their required resources, key partners, cost structure as well as revenue
stream in advance. This as a result helps in conducting business activities in an effective manner.
In context of Chemist Warehouse, management team develop a business canvas model which
helps in conducting business functions within specific period of time.
Negative impact: On the other hand, it has been identified that developing proper
business canvas model takes lot of time, efforts and money which is quite difficult for the
organization. Along with this, business canvas model cannot be taken into consideration for so
long.
Apart from this, it has been identified that the present business organization is feasible for
so long. This as a result, create positive goodwill of organization at competitive marketplace.
Business canvas model for UrbanClap (Medium Organization)
It is a technique which is used by various companies in order to examine their activities
in order to develop an effective business entity. This model is used by the management team of
Urban Clap in order to examine their cost, key resources, customers segment and many more
while developing a business organization (Zeng, Li and Duan, 2012) . In the present context of
UrbanClap, all the nine elements consist in a business canvas model are going to be explained. It
is one of the fastest growing startup organization in India. Company adopt an innovative idea
where they provide home services to their customers through social media. Basic motive of the
company is to provide services by using mobile application to their customers. UrbanClap
provide various services which includes electricians, beauty saloon, carpenters, pest control,
fitness trainer and many more.

UrbanClap
Key partners
 Material
suppliers
 Social media
activities
 Payment
processor
Key activities
 Provide
service at
home
 Hire well
mannered
and
presentable
staff
Value
propositions
 High
quality
services at
home
 Variety of
services
Customer
Relationships
 Personal
interaction
 Facebook,
twitter &
blog
 Customer
support
services
Customer
segments
 Working
individuals
 Busy
schedule
employees
Key resources
 Finance
 Employees
 Official
website
 High quality
equipment
Channels
 Online
advertising
websites
 Social
media
platform
Cost structure
 Fixed cost
 Variable cost
Revenue streams
 Pay per service
 Online marketing
 Key partner:- It is the segment which includes all those persons who are associated with
the profitability and working of UrbanClap. Some of the more important key partners
includes material suppliers, payment processor and so on (Storey, 2016) . With the help
of these resources company will be able to maintain their sustainability at the competitive
marketplace.

 Key activities:- Under this segment, all those elements are going to be covered which is
performed by organization. Some of the key activities includes service provide services
to the customers at home, hire well mannered and presentable staff members.
 Key resources:- There are some resources which is required to operate their business
functions effectively. There are different key resources required by the team members of
UrbanClap while conducting their business activities, some of these resources are
employees, finance, official website, high quality equipment and many more.
 Value preposition:- It refers to a segment of business canvas model which helps in
adding value to the products and services by including some unique features. Some of the
value preposition elements included by the management team of UrbanClap is to provide
high quality services to the customers at home as well as they provide variety of services
to the consumers.
 Customer relationship:- Under this segment, various elements are going to be covered
which helps in building effective relationship with customers. With the help of this,
company will be able to maintain their relationship effectively with their customers.
Some of these elements are personal interaction, Facebook, twitter & blog, Customer
support services.
 Channels:- As per the business canvas model there are various channels through which
UrbanClap will be able transfer their services from one place to another. By adopting
online advertisement channel, company will be able to deliver their services in an
effective manner. Along with this, social media platform is another method through
which company will be able to attract large number of customers (Vernon, 2013) .
 Customer segment:- It is the element where company segment there customer base so
that they will easily examine their target customers within the marketplace. In context of
UrbanClap, it has been seen that company mainly target those individuals who have very
busy working schedule.
 Cost structure:- It is the segment which includes all the factors where cost and value of
the company incurred. There are various resources and elements which is considered by
the managers of UrbanClap while conducting there business functions effectively. In
context of UrbanClap have two cost structure which is fixed and variable.

 Revenue stream:- According to this segment various elements are going to be considered
with the help of which company earn enough amount of money in order to conduct their
business functions effectively. This is the segment which includes pay per service and
online marketing which assist them in order to generate more revenue (Smeral, 2012) .
Critical Appraisal
Positive impact: Positive impact of this model on UrbanClap is that it will help in
creating positive brand name of the organization at the competitive marketplace. Along with this,
there are various elements which will assist the organization in order to examine key resources,
channels as well as cost which is incurred while performing business functions. This as a result
help in developing strategies and policies in advance (DaSilva and Trkman, 2013).
Negative impact: On the other hand, negative impact of the business canvas model is that
it will create confusion and occur huge amount of cost if UrbanClap chose this model. Along
with this it is time consuming activity which includes lot of efforts.
With the help of above mentioned canvas model, it has been identified that if UrbanClap
chose this business canvas model it is quite feasible and suitable for the company.
Business canvas model for Roli (Small Organization)
It refers to a technique which is adopted by organizations which helps in examining how
a company deliver, create and capture value. Each and every organization have their unique
features which assist them to maintain long term sustainability at the marketplace. In the context
of Roli, managers of the organization decides to develop business canvas model which will assist
them in order to evaluate their functions and operations in advance (Shenkar, Luo and Chi,
2014). This is the company which provide innovative and high technological musical
instruments which is used by various musicians all over the world. Particularly company
manufacture seaboard which is highly recommended by large number of organizations.

Key partners
 Music
institutions
 Dance and
music schools
Key activities
 Provide high
tech music
instruments
 Advanced
and
upgraded
use of
technology
Value
propositions
 Range of
products
 Advanced
technology
products
Customer
Relationships
 Direct
interaction
 Suggestion
platform by
using social
media
Customer segments
 Musicians
 School and
colleges
 Dance and
music classes
Key resources
 Human
resources
 Raw
material
Channels
 Online
platform
 Stores
Cost structure
 Fixed cost
 Variable cost
Revenue streams
 Online business
 Charge transactional fees
 Key partner:- This is the segment which includes various key partners which is
associated with the company. In the present context of Roli, there are various key
partners which is associated with them includes music institutions along with dance and
music academies (Burd, Smith and Reisman, 2015) .
 Key activities:- Under the business canvas model, it is the segment and element which
helps in conducting business operations effectively. In reference to Roli, company
provide high quality musical instruments along with using advanced and upgraded
technology. These activities assist in developing positive brand name of organization at
the competitive marketplace.

 Key resources:- According to this segment, it has been examined that there are various
important resources which assist them in order to complete their business operations
effectively. Some of the key resources which is quite helpful for the management team of
Roli is human resource along with raw material and equipment.
 Value preposition:- With the help of this element company will be able to add value to
the services and products offered by them to their customers (Neubauer and Lank, 2016) .
In the context of Roli, with the help of advanced technology company will be able to
produce high quality services. Along with this, company provide variety of products and
services to the customers all over the world.
 Customer relationship:- It is one of the most important element with the help of which
company will be able to enhance their relationship with customers all over the world. In
context of Roli, management team of the company directly interact with their customers
if they have any issues. On the other hand, company provide a platform in order to share
their issues and problems.
 Channels:- There are various types of channels through which companies will be able to
transfer there goods and services all over the world. In case of Roli, there are various
types of channels used by them which includes online platform along with physical stores
(Vasant, 2013).
 Customer segment:- Under this element, management team of Roli segment the whole
market according to the products and services offered by companies. In the present
context, customers which are segmented includes Music Schools and colleges along with
dance and music classes.
 Cost structure:- It refers to the element which consist of various factors where cost is
occurred within the company. In context of Roli, there are two types of cost which is
mainly occurred within the organization such as variable and fixed cost. Transportation
and export cost known as variable cost on the other hand, rent of the store comes under
fixed cost.
 Revenue stream:- It is the element where company can generate more profitability at the
market place. In case of Roli, by selling products through online business company can
expand its business functions at the competitive marketplace. Along with this, by
charging per transaction fees company will be able to generate more profitability.

Critical Appraisal
Positive impact: With the help of this business canvas model, it has been identified that it
will create positive brand image at the competitive marketplace. Along with this, it has also been
concluded that by using this canvas model chosen company which is Roli helps in identifying
key resources, cost, activities as well as revenue streams in advance (Wagner, 2016).
Negative impact: On the other hand, it has been examined that it is the model which
consumes lot of time, money and effort while conducting business functions. Along with this,
taking the business canvas model into consideration for so long it quite difficult and complex
task for the management team of Roli.
With the help of above mentioned business canvas model it has been examined that this
model is quite beneficial, feasible and suitable for the company while conducting there business
functions in an effective manner.
CONCLUSION
As per the above stated report, it has been determined that in the present competitive
environment online business plays important role in the overall development of market share of
the company. Along with this, it has also been examined that each and every business entity need
to develop business canvas model whether it is new or old. With the help of effective business
canvas model, company will easily examine feasibility of the business functions at the
competitive marketplace in advance. Along with this, the report includes three organisation
which is of large size, small size and medium size. Three business canvas model has been
developed in this report which is quite feasible and suitable for all the types of organisations.

REFERENCES
Books and Journals:
Burd, E. L., Smith, S. P. and Reisman, S., 2015. Exploring business models for MOOCs in
higher education. Innovative Higher Education. 40(1). pp.37-49.
DaSilva, C. M. and Trkman, P., 2013. Business model: What it is and what it is not. Long Range
Planning, Forthcoming.
Gabriel, C. A. and Kirkwood, J., 2016. Business models for model businesses: Lessons from
renewable energy entrepreneurs in developing countries. Energy Policy. 95. pp.336-349.
Gloor, P., 2012. Making the e-business transformation. Springer Science & Business Media.
Gudiksen, S., 2015. Business model design games: Rules and procedures to challenge
assumptions and elicit surprises. Creativity and Innovation Management. 24(2). pp.307-
322.
Lilien, G. L. and Grewal, R. eds., 2012. Handbook on business to business marketing. Edward
Elgar Publishing.
Neubauer, F. and Lank, A. G., 2016. The family business: Its governance for sustainability.
Springer.
Shahand, S., van Kampen, A. H. and Olabarriaga, S. D., 2015, June. Science gateway canvas: A
business reference model for science gateways. In Proceedings of the 1st Workshop on
The Science of Cyberinfrastructure: Research, Experience, Applications and Models
(pp. 45-52). ACM.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Smeral, E., 2012. International tourism demand and the business cycle. Annals of Tourism
Research. 39(1). pp.379-400.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Vasant, P., 2013. Meta-heuristics optimization algorithms in engineering, business, economics,
and finance. Information Science Reference.
Vernon, A., 2013. Quaker Business Man: The Life of Joseph Rowntree. Routledge.
Wagner, R. E., 2016. Politics as a peculiar business: Insights from a theory of entangled
political economy. Edward Elgar Publishing.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Zhang, Y. and Wen, J., 2015, February. An IoT electric business model based on the protocol of
bitcoin. In 2015 18th International Conference on Intelligence in Next Generation
Networks (pp. 184-191). IEEE.
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