Business Model Innovation and Resource Analysis

This assignment delves into the concept of business model innovation, examining its application within various industries. Students will analyze how resources and stakeholders influence the success of innovative business models. Drawing on real-world examples, they will evaluate the feasibility and potential impact of different innovative approaches. The assignment encourages critical thinking about the strategic aspects of business model development and the complexities involved in achieving sustainable innovation.

Running head: Business Model Canvas 1
Entrepreneurship
A business model and plan for new business venture

Business Model Canvas 2
Executive summary
Entrepreneurship is considered she engine of growth in the economy. It is easy to get idea
for opening a new venture but it is difficult to analyze the each component for growing in the
market. It is the report which has been made on the new business idea that is opening a retail
store in the Australia. A business model helps out to determine the various aspects to analyze the
potential benefits. The nine building block of business model canvas has been discussed in this
report. The role of market, comic, human resource and technical play a lead role and show the
requirement of feasibility analysis. Feasibility analysis is able to give proper understating about
the strength and weakness of the particular product and services after analyzing the current
market.

Business Model Canvas 3
Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Business model canvas................................................................................................................................5
Customer segments..................................................................................................................................6
Value proposition....................................................................................................................................6
Communication channel..........................................................................................................................6
Key activities...........................................................................................................................................7
Key resources..........................................................................................................................................7
Client relationship...................................................................................................................................8
Key partners............................................................................................................................................8
Cost structures.........................................................................................................................................8
Revenue streams......................................................................................................................................9
Minimal Viable Product (MVP)..............................................................................................................9
Feasibility analysis....................................................................................................................................10
Market feasibility...................................................................................................................................10
Technical feasibility..............................................................................................................................11
Human feasibility..................................................................................................................................11
Financial feasibility...............................................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

Business Model Canvas 4
Introduction
When starting a new business, there will be many necessary components which should be
observed and addressed. Business model canvas is helpful to give proper understanding for
starting a new business. It has been analyzed that the retail store in Australia is on high demand.
It involves various products which will be helpful for the consumer to get variety in products at
one place. The idea of developing a retail store in Australia is mentioning in this report. The
business model canvas will be described with full knowledge of nine elements of it regarding
new business venture.

Business Model Canvas 5
Business model canvas
Business model innovation model is helpful for the organization to develop, new, unique
concepts supporting financial viability of an organization along with its mission and the
processes for carrying those concepts to fruition. A business model is the way in which an
organization able to produce revenues and makes a profit from the operations of company. The
metric gross profit is being in used to compare the efficiency and effectiveness of an
organization’s business model. The gross profit can be calculated by subtracting the cost of
goods sold from revenues (Fielt, 2013). Business model is the plan for gaining the purpose of the
business. It assists to classify the sources of the company for amplifying the revenue. It is the
way in which company amplify their revenue by using company operation efficiently. It defines
that how business creates the value within the organization and how delivers and capture values
in an efficient manner. There are major nine blocks of business model such as value proposition,
key activities, key partners, client segmentation, key sources, cost structure, communication
channel, client relationship and revenue streams.
Figure 1: Business Model Canvas

Business Model Canvas 6
Source: (George & Bock, 2011).
Customer segments
It includes all the people and organization for which business creating the value. It
includes the simple users and paying customers. It is important for the new venture of retail
business to build the customer segment because an organization serves one or several customer
segments. There are various kinds of customer segments such as mass market, niche market,
diversified market and multi sided markets (Wirtz, 2011). It focuses the target audience and the
target audience of retail store would be house wife, mini restaurant and women. A business
model shows the various segments, the decision of focusing or ignoring over the segment must
be taken by the business within time.
Value proposition
Value proposition helps out to determine the reason of choosing particular industry or
store over others. It facilitates to resolve the issues and satisfied the need. It will offer to think
something new which is not similar with other retail store. The service and product of retail store
should be different and antique which can compete the other retail store effectively. The idea of
new venture that is retail store should have no cost consumption. That is why value proposition
is the element of business model which helps out in cost and risk reduction. A value proposition
is a promise of value to be delivered. It is a clear statement that defines the way of improving the
issue of products and make customer satisfied.
Communication channel
It is important for the new venture to get promoted in an efficient manner so that people
or targeted market can get aware about new venture which is nearby them. There are so many

Business Model Canvas 7
communication channel exist which is able to convey the particular message for specific
company to the whole world. It is an important element of business model canvas that describes
the awareness, evaluation, purchase, delivery and after sale. It helps to new venture to think
about the strategy to enhance the awareness about the company. Along with that it is proficient
to deliver a value proposition to the customer (Itami & Nishino, 2010).
Key activities
It involves the activities which is necessary to execute the business model of company.
Every business model requires key activities and they naturally distinguish key activities
depending on the business model type. It is vital for the company because it focuses on the
production, problem solving and platform (Sanchez & Ricart, 2010). The activity of production
leads the business model of retail store. It is important for the retail store to make satisfied the
customers and resolve the issues which can reduce the image of the store in the view of
outsiders.
Key resources
A key resource is the building block defining the important assets required to make a business
model work. It is only where when company or organization is able to generate the value
proposition and revenues. Key resources can be in the form of human, financial, physical or
intellectual. A retail store is required physical, intellectual, human and financial. For opening the
retail store, physical assets like building, facilities, vehicles and distribution networks are
required. Intellectual resources include the partnership, customer database, copyrights, patents
and partnerships (Chesbrough, 2010). It is important to have the good staff for delivering the best
services and attain the competitive advantages.

Business Model Canvas 8
Client relationship
Client relationship might be driven by one or more of three motivations such as customer
acquisition, customer retention and up selling. It is significant for the new venture to clear about
motivations and should be able to analyze the performance effectively to create benchmarks such
as average period of customer retentions, attractiveness of several approaches of marketing and
cost of acquisition of customers (Bohm, 2015). Client are the key of success and it is essential to
make better relationship with them so that they back again for purchasing and tell to others for
purchasing.
Key partners
Key partnership is linked between the partners and the suppliers that make the business
model works. There are four kinds of partnerships which are generally distinguished into
strategic alliances between non-competitors, competition, joint ventures and the relationship
between buyer and suppliers. Partnership is able to reduce the risk in the environments of
uncertainty (Zott, Amit & Massa, 2011). The potential retail store can extend their own
capabilities by relying on other store to provide specific resources or perform specific activities.
The key partners of retails stores would be distributors, C&F agent, wholesalers and local
farmers.
Cost structures
The cost structures cover entire costs incurred to make a business model works. The cost
of retail stores can be calculated in easiest form after determining the key activities, key
resources and key partnerships. Cost can be minimized in every business but in the context of
retail store cost structure is playing a lead role. It can be distinguished into cost driven and value
driven. The business model of cost driven reduces possible costs and the business model of value

Business Model Canvas 9
driven focuses on the finest value proposition. Along with that it has various characteristics such
as fixed cost, variable costs, scale and scope of economies.
Revenue streams
It is the element of the building block representing the cash of a company produces from
each segments. Revenues stream can be produced in various ways such as asset sale, usage fees,
subscription fees, licensing, brokerage fees, advertising and pricing mechanisms. A business
model for this element can be divided revenues resulting from one time customer payments and
recurring revenues from after sales services to the customers (Lambert & Davidson, 2013).
Revenue stream may have the various pricing mechanisms involving bargaining, volume
dependent or yield management. A business model can include two various types of revenue
streams such as transaction revenues for the customer who are paying first time and recurring
revenues deliver a value proposition to clients.
Minimal Viable Product (MVP)
A minimum viable product is considered as the version of the new product which offers a
team to gather the utmost amount of validated learning related to the customers with the least
effort. It is considered as the development technique in which a latest product is developed with
efficient features. With the help of MVP, it would be easy to understand the validated learning
about the customer with the least efforts. It has the nature of flexible working and it provides
some major distinct advantages such as less cost of production because it provides information
about the customer and manufacturer only builds what customer wants. It is able to lead a more
desirable product and it is because it provides people exactly what they require and it allows new
venture is faster to market because retail business can start with basic.

Business Model Canvas 10
Feasibility analysis
Feasibility analysis is the way of deciding if an idea of business is viable. It is taken in
use to evaluate the strength and weaknesses of a proposed idea and represent the activities to
which would be able to improve the project and achieve desired results. It is a process of
evaluation of technological, legal, operational and economic requirements. Every feasibility
analysis is covered three basic steps that is evaluation of a project as per the selected criteria,
summary of evaluation results and recommendations.
Figure 2: Feasibility analysis
Source: (Chen,Tang, Lei, Sun and Jiang, 2015).
Market feasibility
The study of market feasibility helps to determine the depth and condition of a specific
real estate market and it is capable to give proper support a particular development. Market
feasibility involves current market analysis, details of industry, competition, anticipated future
market potential, projections of sales and sources of revenues which is facilitating to develop the
new venture after analyzing the various conditions that may have impact on the growth and
success of new venture (Jo, Lee, Suh, Kim and Park, 2015). For opening the retail store, it is

Business Model Canvas 11
required to have the efficient knowledge about the market. Market feasibility is the process to
provide the efficient sources for evaluating the various important aspects to start up new venture
(Kalra, Rakhej, Marcotte, Dewangan and Adewusi, 2015). It is essential to analyze the current
market analysis so that products and services of the retail store can be unique and different from
other competitors. Anticipated future market is involves a narrative explanation which will be
facilitated to understand the logical and reasonable predictions based on latest trends.
Technical feasibility
A technical feasibility is an excellent tool for long term planning and trouble shooting. It
refers to as the logistic and tactic plan of how new venture will generate, store, deliver and track
its services and products. It will be helpful to analyze the way of delivering the services and
products in an efficient manner. Along with that it is liable to support the financial information.
The technical feasibility involves material, labor, physical location, technology and shipping. It
is able to calculate the material requirements, labor requirements, shipping and transporting
requirements and technology requirements to run the business appropriately (Cho, Kim, Choi
and Jeong, 2016). These all requirements play a vital role in the developing the sales of the
market and make aware people and investor about the business and its strategy.
Human feasibility
It is the important element which gives information about the required staff to accomplish
the task in an appropriate manner. There are number of people required for various positions. It
is able to determine the various positions. The idea of opening the retail store is wider and it is
essential to evaluate the potential staff because other feasibility factors are dependent upon the
human feasibility. It includes the cooperation between the team, involving the technical and sales
staff which is considered as the key to the success of the new ventures (Adhikary, Roy and

Business Model Canvas 12
Mazumdar, 2014). It would be aided to generate the more revenues and able to provide the job
responsibility. Every product ahs the limited life ad it is required to give the proper training to
the staff for selling them to the users before expiring date. The feasibility of human helps to
determine the objectives of strategic plan and involve document current capabilities, identify the
needs, conduct a gap analysis and review the feasibility analysis.
Financial feasibility
To open new venture is not easy, there are lot of requirements for investing in a new
business. The idea of opening a retail store is good but to execute it in an appropriate manner, it
is required to analyses the various aspects such as start-up capital, revenues, investor income,
disbursements and expenses. Financial feasibility helps to evaluate the process of business in the
term of budget, project and other entities financial related to decide their performance and
suitability. The use of financial analyze is being in used to evaluate whether business is liquid,
solvent or stable enough to warrant a monetary investment. It includes three key areas such as
startup capital requirements, startup capital sources and potential return for investors (Hur, et. al.,
2015). It would be helpful to make decision about the required investment for starting up the
business and keep it running until it self-sufficient.

Business Model Canvas 13
Conclusion
It has been concluded that it is not easy to start up new venture without analyzing and
evaluating the current market. It is the report which is made on the new venture business. The
idea has been drawn of opening the retail store. Business model canvas is able to understand the
process of innovation and facilitates to search the issues in the business and rectify them as soon
as possible. The nine building blocks of business model canvas have been discussed
descriptively. Feasibility analysis has been done in the report in the order of opening new
business. It defined the strength and weakness of the business and includes factors such as
Market feasibility, Technical feasibility, Human feasibility and financial feasibility. It is the
beginning evaluation of an idea for the business and give reliable response that conducted idea is
worth pursuing or not.

Business Model Canvas 14
References
Adhikary, P., Roy, P.K. and Mazumdar, A., 2014, Multidimensional feasibility analysis of small
hydropower project in India: a case study, ARPN Journal of Engineering and Applied
Sciences, 9(1), pp.80-84.
Bohm, J., 2015, Business Model Archetypes for Utilities-A Resource and Stakeholder
Perspective (Doctoral dissertation).
Chen, Q., Tang, Z., Lei, Y., Sun, Y. and Jiang, M., 2015, Feasibility analysis of nuclear–coal
hybrid energy systems from the perspective of low-carbon development, Applied Energy, 158,
pp.619-630.
Chesbrough, H., 2010, Business Model Innovation: Opportunities and Barriers, Long Range
Planning, 43(2-3), 354- 363.
Cho, J., Kim, B., Choi, C. and Jeong, H., 2016, Study of Market Scale and Share Estimation
Methodology on Effective Feasibility Analysis of Government R&D Program Related to
Information Technology, In Platform Technology and Service (PlatCon), 2016 International
Conference on (pp. 1-3). IEEE.
Fielt, E. 2013, Conceptualising business models: Definitions, frameworks and classifications,
Journal of Business Models, 1(1), 85.
George, G., & Bock, A. J., 2011, The Business Model in Practice and its Implications for
Entrepreneurship Research, Entrepreneurship Theory and Practice, 35(1), 83-111.

Business Model Canvas 15
Hur, S., Jae, H.J., Jang, Y., Min, S.K., Min, S.I., Lee, D.Y., Seo, S.G., Kim, H.C., Chung, J.W.,
Kim, K.G. and Park, E.A., 2015, Quantitative Assessment of Foot Blood Flow by Using
Dynamic Volume Perfusion CT Technique: A Feasibility Study, Radiology, 279(1), pp.195-206.
Itami, H., & Nishino, K., 2010, Killing two birds with one stone: profit for now and learning for
the future, Long Range Planning, 43(2), 364-369.
Jo, H., Lee, H., Suh, Y., Kim, J. and Park, Y., 2015. A dynamic feasibility analysis of public
investment projects: An integrated approach using system dynamics and agent-based
modeling. International Journal of Project Management, 33(8), pp.1863-1876.
Kalra, M., Rakheja, S., Marcotte, P., Dewangan, K.N. and Adewusi, S., 2015, Feasibility
analysis of low-cost flexible resistive sensors for measurements of driving point mechanical
impedance of the hand-arm system, International Journal of Industrial Ergonomics, 49, pp.44-
52.
Lambert, S. C., & Davidson, R. A., 2013, Applications of the business model in studies of
enterprise success, innovation and classification: An analysis of empirical research from 1996 to
2010, European Management Journal, 31(6), 668-681.
Sanchez, P. & Ricart, J. E., 2010, Business model Innovation and sources of value creation in
low-income markets, European Management Review (2010) 7, 138-154.
Wirtz, B. W., 2011, Business model management. Design–Instrumente–Erfolgsfaktoren von
Geschäftsmodellen, 2.
Zott, C. Amit, R. & Massa, L., 2011, The Business Model: Recent Developments and Future
Research, Journal of Management.

Business Model Canvas 16