This report provides an analysis of Foodora's business model canvas, including the nine building blocks and interrelationships. It also discusses critical success factors, downside risks, and potential business model changes. Recommendations for improving the business model are provided.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: BUSINESS MODEL CANVAS OF FOODORA BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Name of the Student Name of the University Author Note
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Executive Summary The report is related to the analysis of an organization named Foodora and the business model canvas that has been formed by the company. The business model canvas will be analysed with the help of the nine building blocks that are based on various aspects of the organization. The relationships that have been developed within the different aspects of the business are considered to be important for the analysis that has been done in the report. The risks related to operations of the organization has also been discussed in the report in detail. The report has provided recommendations based on the following changes that can be implemented in the business model of Foodora, Development of restaurants under its own brand. Development of employee base or number of cyclists.
2BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Table of Contents I. Introduction.................................................................................................................3 II. Business model..........................................................................................................3 A. Building blocks.........................................................................................................3 1. Customer segments................................................................................................3 2. Key partners...........................................................................................................4 3. Value proposition...................................................................................................4 4. Key activities..........................................................................................................4 5. Channels.................................................................................................................5 6. Revenue streams.....................................................................................................5 7. Cost structure.........................................................................................................5 8. Key resources.........................................................................................................6 9. Customer relationships...........................................................................................6 B. Interrelationships.......................................................................................................6 C. Critical success factors..............................................................................................6 D. Downside risks..........................................................................................................7 E. Business model changes............................................................................................7 III. Conclusion................................................................................................................8 IV. Recommendations....................................................................................................8 References......................................................................................................................9 Appendices...................................................................................................................11 Appendix 1 – Table 1 – Business model canvas......................................................11 Appendix 2 – Table 2 – Statement based on financial position of Foodora............12 Appendix 3 – Table 3 – Profit and loss statement...................................................12
3BUSINESS MODEL CANVAS ANALYSIS OF FOODORA I. Introduction Foodora is a restaurant delivery based service that was established in the year 2014. The organization has been a part of Delivery Hero GmbH from the year 2015. The major innovative feature based on operations of Foodora is that the organization delivers its products to consumers with the help of bicycles. This delivery service is independent of the traffic that is present on the roads of Australia and the speed is also quite high. The driver based fleet of Foodora mainly consists of 5500 cyclists. The services of Foodora are provided in greater than 60 cities and around 10 countries of the world. II. Business model Foodora maintains its operations based on the levels of innovativeness that need to be implemented in order to stand out from the competition that exists in the industry. The company aims at creating a customer base with the help of proper rebranding and customer advocacy. Foodora has been successful in developing an effective customer happiness based team that aims at increasing the levels of satisfaction of customers (Cantamessa & Montagna, 2016). A. Building blocks 1. Customer segments The major customer segments of Foodora include, the individuals and the families. Students and business people also form a major part of the customer group that has been developed by Foodora in the food based industry (Cosenz & Noto, 2018). Australia Sex50% female and 50% male Income£50,000
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Average transaction speed30 to 70 Other characteristicsUsers of home owners and credit cards Table 1 – Source – Created by author 2. Key partners The key partner groups of Foodora include, restaurants that have not been able to develop their own delivery based systems. The organization has active levels of cooperation with many other restaurants. The types of restaurants that are partners of Foodora Group include, fast food based chains like McDonalds and star rated organizations as well (Ebel, Bretschneider & Leimeister, 2016). Customer typeNew CustomersExisting customers Delivery partners15%10% Restaurants12%5% Table 2 – Source – Created by author 3. Value proposition The major value proposition of Foodora is based on the ways by which the company is able to satisfy the hunger of customers even if they are not able to cook for themselves. The number of partners that are a part of Foodora are able to ensure high quality of the food products along with a diverse menu (Euchner, 2016). The customers are also able to order their food fast at the comfort of their homes. The ordering process of Foodora is also quite simple and is able to attract huge number of customers. The customers are able to order a wide variety of foods with the help the website that has been developed. A major part of the value proposition of Foodora is based high speed of services (Heberle et al., 2017).
5BUSINESS MODEL CANVAS ANALYSIS OF FOODORA 4. Key activities The key activities that are performed by Foodora include the fast delivery of food products with the help of its fleet of cyclists who are a part of the business operations. The cyclists are provided with responsibilities of particular areas so that they are able to provide delivery to the customers within 30 minutes of the placed order. Foodora is able to offer fast delivery and many different payment-based options. Foodora is able to act as an intermediary between the customers and the restaurants. Expansion is a major activity of the organization that is important for its future operations (Heikkilä, Bouwman & Heikkilä, 2018). 5. Channels The social media platforms are used a major channel of Foodora in order to showcase the partner restaurants and the latest offers as well. Social media pages of Foodora are not only able to provide textual descriptions, the pictures of different food based items are also showcased in an effective manner. The hanging posters of Foodora that are showcased in the website are considered to be important for increasing the interest levels of consumers (Lopes et al., 2019). 6. Revenue streams The revenues that are earned by Foodora are based on the commissions that are charged from partner restaurants that is not based on whether the orders are delivered within stipulated time. The customers of Foodora also have to pay delivery based fees in order to order to food from different restaurants (Heikkilä, Bouwman & Heikkilä, 2018). The delivery based charges of different restaurants that are registered with Foodora range from 2.50 Euros to 4.90 Euros. The flat rate based fees of Foodora are set at 2.90 Euros. The prices based on the services are dependent on value of orders or the respective restaurants (Matsumae & Burrow, 2016).
6BUSINESS MODEL CANVAS ANALYSIS OF FOODORA 7. Cost structure The major costs that are incurred by Foodora are based on marketing activities that are able to gain the attention of customers. Costs related to maintenance of staff in Foodora are also quite high (Philipson, 2016). 8. Key resources The key resources that have been gained by Foodora in the industry mainly include, partnerships with the various restaurants and group of cyclists Foodora are also major resources of the organization that provide support to its operations (Stampfl, 2015). 9. Customer relationships Foodora aims at delivering high quality food to the customers in order to retain them within the organization and provide special offers as well. Foodora can also provide live support to the customers with the help of its website that is able to improve the solve the issues that they face. Foodora is able to offer fast delivery to the customers and develop effective services to them (Matsumae & Burrow, 2016). B. Interrelationships The number of deliveries that are made by Foodora are based on the channels that are developed. The offers are provided to the customers of Foodora with the support of these channels. Communication with customers is linked with the resources and channels. The value propositions that have been developed by the company are able to affect proper usage of resources (Ebel, Bretschneider & Leimeister, 2016). The partner restaurants of the organization are able to support the ways by which food delivery services that are offered to the customers. Revenue streams of the organization have an impact on the costs that are incurred in development of services. Different segments of customers in the organization are affected by the speed of food delivery services (Cantamessa & Montagna, 2016).
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7BUSINESS MODEL CANVAS ANALYSIS OF FOODORA C. Critical success factors The major part of the success that has been gained by Foodora is based on the relationships that have been formed with the customers. The distribution based channels and the website of Foodora is also considered to be a significant reason behind effectiveness of the services of the organization. Relationships with the customers and the fleet of cyclists have provided huge support to Foodora in order to maintain its positions in the industry (Heikkilä, Bouwman & Heikkilä, 2018). D. Downside risks The risks that are faced by Foodora in the business operations are related to the costs that are incurred by the company in its marketing based activities. The promotions that have been developed by Foodora have increased pressure on the revenues of the organization. The methods that are implemented by Foodora in order to attract new customers are also quite expensive for the organization and it is able to reduce the profit margins. The lack of proper profit margins will be able to affect the ways by which compensation can be provided to employees (Matsumae & Burrow, 2016). E. Business model changes The open business model has been implemented by Foodora in order to increase the levels of efficiency. The organization does not operate its restaurants, but it has developed partnerships with many other restaurants. The company aims at maintaining high levels of transparency with the help of its website (Heikkilä, Bouwman & Heikkilä, 2018). The change that can be made in the business model is related to the development of restaurants under the brand of Foodora. This will lead to the reduction of costs and the company will be able to provide the services within less prices. The digital platforms are used for promoting the services which are offered by Foodora. The compensation rates of employees will be based
8BUSINESS MODEL CANVAS ANALYSIS OF FOODORA on the performances and the speed of services that can be offered to the customers (Cantamessa & Montagna, 2016). III. Conclusion The report can be concluded by stating that Foodora will be able to improve the services that are offered by the organization by developing restaurants under its own brand. The organization has been operating in the industry in a unique way and has created the position of the company. The most important part of the effective operationsof the organization are based on its employees who aim at reaching the customers within stipulated time. IV. Recommendations The organization needs to form restaurants under its own brand in order to improve the profit margins that are gained. Foodora can develop a large employee base on fleet of cyclists for serving the larger area of customers. The promotional activities need to be performed by Foodora with the help of digital platforms and social media based websites.
9BUSINESS MODEL CANVAS ANALYSIS OF FOODORA References Cantamessa, M., & Montagna, F. (2016). Business model innovation. InManagement of Innovation and Product Development(pp. 115-135). Springer, London. Cosenz, F., & Noto, G. (2018). A dynamic business modelling approach to design and experiment new business venture strategies.Long Range Planning,51(1), 127-140. Ebel, P. A., Bretschneider, U., & Leimeister, J. M. (2016). Can the crowd do the job? Exploring the effects of integrating customers into a company’s business model innovation.International Journal of Innovation Management,20(07), 1650071. Euchner, J. (2016). Business Model Innovation.Research-Technology Management,59(3), 10-11. Foodora.com. (2019). foodora delivery service | We deliver, you enjoy!. Retrieved from https://www.foodora.com/ Heberle, A., Löwe, W., Gustafsson, A., & Vorrei, Ö. (2017). Digitalization Canvas-Towards Identifying Digitalization Use Cases and Projects.J. UCS,23(11), 1070-1097. Heikkilä, M., Bouwman, H., & Heikkilä, J. (2018). From strategic goals to business model innovation paths: an exploratory study.Journal of Small Business and Enterprise Development,25(1), 107-128. Ir.deliveryhero.com(2019).[online]Ir.deliveryhero.com.Availableat: https://ir.deliveryhero.com/download/companies/delivery/Hauptversammlung/ Annual_Report_including_the_consolidated_financial_statements_combined_manage ment_report_and_the_non_financial_statement_for_DH_Group.pdf [Accessed 4 Apr. 2019].
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Lopes, S. C. P., Lopes, H. E. G., Coleta, K. G., & Rodrigues, V. C. (2019). Business Models andCompetitiveAdvantage:ADynamicApproach.IberoamericanJournalof Strategic Management (IJSM),18(1), 90-105. Matsumae, A., & Burrow, K. (2016). Business model generation canvas as a method to develop customer-oriented service innovation. InServiceology for Designing the Future(pp. 551-565). Springer, Tokyo. Philipson, S. (2016). Radical innovation of a business model: is business modelling a key to understand the essence of doing business?.Competitiveness Review,26(2), 132-146. Stampfl, G. (2015).The process of business model innovation: an empirical exploration. Springer.
11BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Appendices Appendix 1 – Table 1 – Business model canvas Key Partners Delivery partners Restaurants Key Activities Delivery of food. Providing bulk orders. Value Proposition Quality Price Customer Relationships Social media communica tion. Customer Segments Students Corporate customers Key Resources Restaurant owners. Staff Channels Activities based on social media. Application s in mobile. Cost Structure Costs based on channels. Salary expenses. Revenue Streams Income from orders. Income from restaurants. Source – Created by Author
12BUSINESS MODEL CANVAS ANALYSIS OF FOODORA Appendix 2 – Table 2 – Statement based on financial position of Foodora Source – (Ir.deliveryhero.com, 2019) Appendix 3 – Table 3 – Profit and loss statement Source – (Ir.deliveryhero.com, 2019)
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.