Business Model Canvas of Nura Assignment 2022

Business Model Canvas of Nura 0
Title: Business Model Canvas of Nura
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Executive Summary
In this assignment, the business model canvas of a new organization has been analyzed, which is
Nura. This analysis has been conducted, to identify the various critical success factors and
critical risk factors in the organization.
After analyzing the business model canvas, the different approaches and processes of the
organization Nura exhibited the different reasons behind the strong growth of the organization in
a short time. In addition to this, due to the turbulent environment in the market, there were many
aspects, which have to be changed too.
According to the main findings of the report, this was identified that the organization needs to
develop more competitive advantages, along with maintaining a stronghold in the market,
through improving and maintaining their value propositions. For accomplishing this, a new
business plan has been formulated for the organization that focuses on human resources, finance,
technology, and market.

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Contents
Introduction......................................................................................................................................3
Business Model Canvas...................................................................................................................3
1. Customer Segments..............................................................................................................3
2. Key Partners..........................................................................................................................4
3. Value Proposition.................................................................................................................4
4. Key Activities.......................................................................................................................5
5. Channels...............................................................................................................................5
6. Revenue Streams..................................................................................................................5
7. Cost Structure.......................................................................................................................6
8. Key Resources......................................................................................................................6
9. Customer Relationships........................................................................................................7
New Plan for the Organization........................................................................................................7
Market..........................................................................................................................................7
Operations & Technology............................................................................................................8
Human Resource..........................................................................................................................8
Finance.........................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
With the increasing globalization and intense competition in the market, along with the
advancement in the field of technology, there are new organizations that are emerging every day
with better products. Every organization is developing innovative products that help in offering
great customer experience. Technology has helped organizations in offering customized services
to customers. One such organization that is developing innovative and highly technological
products is Nura. It is an Australian organization that was founded in the year 2015, but the
organization has developed a huge customer base in a short span of time. Nura was founded by
Kyle Slater, Dragan Petrovic, and Luke Campbell. The organization is known for offering
customized headphones. The headphones that the organization provides have great sound clarity,
which is perfect for individual users. In addition to this, the products of Nura are finalized with
the help of a group of experts, which include music lovers, engineers, and acoustics, along with
hearing science. It is due to this reason that the customers are offered with various different
features in Nura products that helps in adjusting the sound according to their different
preferences. In the current environment, the industry of premium personalized audio has evolved
drastically in the last decade. There is a humongous demand for their products in the market and
the industry will grow further with the advancement in the field of technology. In this
assignment, the business model canvas of the organization Nura has been examined in depth that
has further helped in developing a plan, which will help the organization with better growth and
success.
Business Model Canvas
In the opinion of Osterwalder and Pigneur, the business model canvas is a strategic
management tool, which displays different aspects associated with an organization in a graphical
manner (Osterwalder and Pigneur, 2010). The business model canvas is made up of nine
different aspects, which are popularly known as the nine building blocks. All these different
aspects govern the organization processes. The nine-building blocks of the business model
canvas are –
1. Customer Segments
The organization Nura has a reputation for offering the world’s smartest headphones. It is
due to this reason that they have developed a customer base all over the world in a short period

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of time. The Nura headphones have a diverse customer base, as the product will fulfill the needs
and demands of people from the age of 15 to 65 years old. The different customers of the
organization Nura are –
 Music lovers.
 Gadget enthusiast.
 Generation X & Y.
 Organizations in different industries, where headphones are largely used, like the
telecommunication industry, IT industry, and many more.
2. Key Partners
The organization is a privately held company, which has numerous partners, which has
numerous partners that offer the organization with various financial and non-financial aids. In
addition to this, with the organization Nura entering different geographical regions, its key
partners are increasing (Carayannis, Sindakis, and Walter, 2014). Some of the major key partners
that have offered the organization with financial resources are –
 HAX.
 Black Bird Ventures.
 SOSV.
 Qualgro.
 Sean Parker.
 Craig Barratt.
Some of the other partners of the organization include –
 A team of music founders and lovers.
 Technology providers.
 Expert engineers.
 Scientists.
3. Value Proposition
The value proposition of the organization Nura for its headphones is “the only headphones in
the entire world that adapts automatically to unique hearing of different users”. The tagline of the
Nura headphones is “Music in full color”. Along with this the value proposition of the

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organization also highlights the fact that it is the only product that has the attribute of active
noise cancellation. This unique value proposition is built around various aspects which include
the advancement in the field of technology, the new trends in the market, and increasing
globalization (Breuer and Ludeke-Freund, 2017). In addition to this, the value proposition also
highlights the core principle of the organization that is to offering customized services to the
customers for delivering great customer experience.
4. Key Activities
For developing the Nura headphones a number of key activities have to be performed. Some
of the activities that are performed are researching, designing, manufacturing, quality check,
packaging, promoting, and many more. These are some of the key functions which are
performed with a number of different activities, which are crucial for manufacturing and selling
the product to the customers. In addition to this, with the increasing globalization and the
organization entering new geographical regions, the organization is tying up with local
organizations, which is also a form of key activity (Dubey, 2015). Along with this, with the
competition becoming fierce in the premium personalized audio industry, the organization is
performing various different activities for attracting the customers and to make them loyal
customers of the organization.
5. Channels
In the current times, the customers require easy, efficient, and quick delivery services. It is
due to this reason that for delivering the product and for offering the customers with the latest
information, the organizations use channels that are fast and quick. The main channel that is used
by the organization is its official website nuraphone.com. The other channel which is used by the
organization is the different social media platforms like Facebook, Twitter, Instagram, and many
others (Lee and Hong, 2014). These channels are used for marketing and for informing the
customers about the latest update. The third most crucial channel which the organization use is
the prominent shopping websites. The organization sells its products on Amazon, which is the
top shopping website in the world (Shahand, van Duffelen, and Olabarriaga, 2015).

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6. Revenue Streams
The organization is still developing a niche for itself in the competitive market, but it has
earned decent revenues in a short time. The organization attain revenues from different sources,
which include –
 The profit earned from the sale of products.
 The funding received from different entities like the Melbourne Accelerator Program that
offered the organization with $20,000 funding, along with an office place. The other
revenue stream that the organization attained was through its approach to crowdfunding.
In addition to this, the organization also received seed funding, which is also notified as
one of the major revenue streams for the organization (Lüdeke-Freund and Dembek,
2017).
7. Cost Structure
For the production of Nura products, various activities have to be performed. It is due to this
reason that the expenditures of the organization are also high. From the researching stage to the
selling stage, the organization has to conduct different activities, with all of them being
extremely important (Mulyana, Daryanto, and Purwito, 2018). Therefore, the cost structure of
the organization include –
 Researching expenses or research projects.
 The expenses of raw materials.
 The expenses for attaining the latest technology.
 The expenses of productions.
 The expenses of packaging.
 The expenses for advertising.
 Other promotional activities.
 Transportation and delivery expenses.
 Salaries of the workforce.
 Taxes.
 License fee.

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8. Key Resources
The core aspect of an organization is its resources. These resources can be both financial and
non-financial. Through the resources, an organization is able to function appropriately. Some of
the key resources of the organization Nura headphones are –
 A highly skilled and talented workforce.
 The latest technology.
 The various machinery needed for production and packaging.
 The research information also serves as a key resource.
 The stakeholders of the organization (Park, Yi, and Jeong, 2014).
9. Customer Relationships
As the products offered by the organization offer unique services to the customers like
adjusting the sound according to the preference of the customers has helped the organization in
delivering great customer experience, which has also helped in developing a strong and
trustworthy relationship with the customers. In addition to this, the post-purchase services of the
organization are extremely good, which helps in earning loyal customers for the organization.
Along with this, the different information that the organization provides its customers through
the platform of social media has helped it develop a better relationship with the customers.
Moreover, some of the social media platforms also serve as the complaint portal for the
organization (Ojasalo and Ojasalo, 2018).
New Plan for the Organization
After analyzing the nine building blocks of the business model canvas, the organization
needs to formulate certain changes that will facilitate bigger and better success. Therefore, some
of the different suggestion for the organization, along with a new plan is –
Market
The organization Nura target market size is large. In addition to it, as the demands for
Nura products will increase that will led to market expansion, this highlights the fact that the
market is at full capacity. Although it is also a known fact that with the advancement in the field
of technology, the organization will face humongous competition. The current competition in the
market is intense and with the advancement in the field of technology the competition will

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further intensify (Hughes and Beukes, 2012). But, the new technology will also offer the
organization with more growth opportunities, if the organization stay updated and attain an
effective competitive advantage. Therefore, it is paramount for organization to manage and
maintain their unique selling proposition, so as to survive in the market. Also, the barriers to new
entries in this industry are negligible, therefore, it is even more important for the organization to
implement this suggestion.
The best approach for segmenting this market is demographical. It is due to this reason
that different age people have different requirements and demands with headphones. This will
also help the organization in building a message that addresses the different needs of different
age people. But the main target customers of the organization will be between the ages 15 to 30
years. Also, the main targeted customers have to be attracted through social media, online
shopping sites, and the official website (Pyo and Ha, 2015). The customers majorly buy
headphones directly or indirectly through these channels. Also, some of the biggest competitors
of the organization like JBL, Bose, Sony, Marshall, and more, they also utilize the same
platforms for targeting customers. With the current competitive advantage of adjusting noise
features, the organization has brought a stir in the industry and with the different suggestions
made above, the sales of the organization will be huge (Presenza, Messeni Petruzzelli and
Natalicchio, 2019).
Operations & Technology
As the organization has developed a specific technology by themselves for attaining a
competitive advantage, it is recommended that the organization still continues to do so. But for
maintaining this competitive advantage, it is crucial for the organization to create an environment
of continuous improvement that helps in improving its technology regularly (Rajković-
Borisavljević and Veličković, 2019). According to the new technological development, with the
utilization of artificial intelligence, the product can be enhanced even more. Though the
organization produces its products in-house, for reducing the cost of production, the organization
should collaborate in a joint venture with big production organizations. The organization has
several distributors, but the main channel of distribution is through its official website. The
organization should also collaborate with top technology developers and suppliers, this will help
the organization in developing better products. Also, this is the main resource that the

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organization requires. In addition to this, the organization should utilize laws of copyrights, to
ensure that its technology is protected. It is even more important for the organization to fulfill the
different law requirements for addressing various ethical issues (Erlyana and Hartono, 2017).
Human Resource
The organization needs to improve its technical team. For this, they need to hire new
minds that have knowledge and skills in the latest technology. The key leaders of the
organization are Dr. Dragan Petrovic, the Chief Executive Officer of the organization and Dr.
Luke Campbell, who is the chief technology officer. As the leaders of the organization, they need
to utilize transformational and compassionate leadership approaches for motivating the
employees, for increasing their productivity. The organization is privately owned company. The
organization needs to improve its manpower with each year, for developing efficient
management. The organization needs to develop effective recruitment and selection process. The
organization recruitment process should be designed in a way that helps in attaining the most
skillful employee. In addition to this, with the current working environment becoming
competitive each day, the organization also needs to improve its employee retention approach
(Crotty, Kinney and Farren, 2017).
The organization's main growth strategy is to improve its productivity level by
encouraging and motivating the employees. For this, the organization needs to regularly offer its
employees with various rewards. The organization has to utilize the interlinked relationship
between productivity of the employees and profits of the organization. Therefore, the
organization needs to improve its human resource approaches for building a strong workforce
and improving the productivity level of the organization (Sohn and Jeon, 2010). For this, the
organization also need to offer human resource with regular training and development facilities.
This will help in improving the managerial skills of the employees regularly, which will further
increase the productivity of the organization.
Finance
The price of Nura headphones per unit is AU$500. The organization aims to increase its
sales by 15% every year. In addition to this, the organization plan to increase its expected
revenues by 10% every year. With this plan, the organization will be able to develop an
environment of continuous improvement, which will help in accomplishing these financial goals.

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As it has been only a few years since the organization was founded, the organization’s
expenditures are extremely high. With the organization entering new geographical regions these
expenses are further accelerated. In such circumstances, the organization needs massive financial
resources. For this, the first approach which has to be utilized is increasing the stakeholders of
the organization. The organization needs more funds, which can only be attained through
different stakeholders. Along with this, the organization should improve its relationship with the
current stakeholders, so they can be offered with financial aid in times of an emergency
(Sparviero, 2019).
The organization should also indulge in different funding approaches as it did with
crowdfunding. The organization should improve its funding approaches and should increase
them by indulging in new seed funding approaches too.
The organization should develop a new budget, which divides the cost structure of the
organization in a more effective manner. The budget should be built around priorities and great
customer experience. Both these factors will help in developing a financial budget, which will
help in reducing unnecessary expenses that can be utilized for other important activities (Vial,
2016).
Conclusion
The organization Nura is in a developing stage and for sustaining in the current
competitive and turbulent environment, the organization needs to ensure that it addresses the
various issues and utilizes the different recommendations stated above so as to manage the four
crucial aspects that are human resource, finances, technology, and market. These four aspects are
the core attributes of sustainable development. The different recommendations stated above have
been formulated after analyzing the business model canvas of the organization. For the
organization, one more recommendation is to improve its value proposition. The organization
should position themselves with an effective value proposition, which helps them in targeting the
audience with a stronger message. In addition to this, the organization needs to utilize more
communication channels for promotions, as it will help in targeting more customers. With this, it
can be concluded that the organization needs to implement different changes, but amongst them,
the most effective approach that will help the organization always is developing an environment
of continuous improvement, as it is the key approach for managing the competition.

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