Business Model Canvas Analysis

Running head: BUSINESS MODEL CANVAS ANALYSIS
BUSINESS MODEL CANVAS ANALYSIS
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1BUSINESS MODEL CANVAS ANALYSIS
Executive Summary
The report is based on the analysis of an Australian organization named Afterpay that has
started its operations in the financial industry in the year 2015. The analysis is related to a
Business Model based approach that has an impact on the financial industry of the country.
The business model of Afterpay is based on the different aspects of business operations that
include the nine building blocks. The building blocks of Afterpay are, customer segments,
key partners, value proposition, key activities, channels, revenue streams, cost structure, key
resources and customer relationships. The interrelationships between the blocks have been
analysed and the success based factors have also been analysed. The recommended changes
in the business model are as follows,
 Improvement of customer relationships.
 Improvement of operations.

2BUSINESS MODEL CANVAS ANALYSIS
Table of Contents
I. Introduction.................................................................................................................3
II. Business model..........................................................................................................3
A. Building blocks.........................................................................................................3
1. Customer segments................................................................................................3
2. Key partners...........................................................................................................3
3. Value proposition...................................................................................................4
4. Key activities..........................................................................................................4
5. Channels.................................................................................................................4
6. Revenue streams.....................................................................................................4
7. Cost structure.........................................................................................................5
8. Key resources.........................................................................................................5
9. Customer relationships...........................................................................................5
B. Interrelationships.......................................................................................................5
C. Critical success factors..............................................................................................6
D. Downside risks..........................................................................................................6
E. Business model changes............................................................................................6
III. Conclusion................................................................................................................7
IV. Recommendations....................................................................................................7
Appendices.....................................................................................................................8
Appendix 1 – Table 1 – Business model canvas........................................................8
Appendix 2 – Table 2 - Revenues..............................................................................9
Appendix 3 – Table 3 – Income statement...............................................................10
Appendix 4 – Table 4 – Income statement continued..............................................10
References....................................................................................................................11

3BUSINESS MODEL CANVAS ANALYSIS
I. Introduction
Afterpay is an Australian company that aims at providing digital service based on
payments of products after some days of their purchase. The money can be paid by customers
within around fourteen days of the purchase. The service has become quite popular in
Australia in a short period of time after it had started its operations. Afterpay was established
in Sydney in the year 2014 and had an impact on the ways by which people spend on the
purchase of products. The major part of the operations of Afterpay is related to the methods
by which the company is able to provide easy instalments to the customers
(Afterpaytouch.com., 2019).
II. Business model
The Business model of Afterpay is related to the methods by which the company is
able to provide its services to the customers with the help of easy instalments based on the
products that they purchase. The company however charges late fees for the failure of
customers to pay within the provided time frame (Dudin et al., 2015).
A. Building blocks
1. Customer segments
The customer segments of Afterpay mainly include, the business organizations,
merchants, retailers and the individual shoppers as well. The company aims at offering the
payment based services to the different segments based on their likes and dislikes (Dudin et
al., 2015).
2. Key partners
The key partners of Afterpay who are able to help in developing the services that are
offered to the customers include, the third party based merchants, the different payment
providers like Mastercard and Visa. The financial institutions and banks are also considered