Business Model Deconstruction

The report helps in analysing the business model canvas of the Afterpayit Company that is based in Australia. The business canvas model will help in understanding the different kind of strategies as well that will help in understanding the relationship between the nine building blocks of the BMC of Afterpayit Company.

Running head: BUSINESS MODEL DECONSTRUCTION
Business Model Deconstruction
Name of the Student
Name of the University
Author note

1BUSINESS MODEL DECONSTRUCTION
Executive Summary
The report has helped in understanding the BMC of the Afterpayit Company that is based in
Sydney, Australia. The key strategies that are the critical success factors has been identified
and evaluated in an effectual manner. The main aim and purpose of the company is to
understand the different kind of issues that is required to be identified in an effectual manner
wherein this will help in solving the different issues with the changes implemented in it. The
different recommendations have been provided that will help in solving the issues effectively.

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Table of Contents
Introduction................................................................................................................................3
Description of Company............................................................................................................3
Products and services offered by Afterpayit..............................................................................3
Business Canvas Model of Afterpayit........................................................................................4
Key relationships between nine building blocks........................................................................5
Integrated SWOT analysis and Porter’s Five Forces Model analysis........................................6
Critical Success Factors.............................................................................................................7
Downside Risks..........................................................................................................................8
Recommendations and requirement of changes.........................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

3BUSINESS MODEL DECONSTRUCTION
Introduction
The report helps in analysing the business model canvas of the Afterpayit Company
that is based in Australia. The business canvas model will help in understanding the different
kind of strategies as well that will help in understanding the relationship between the nine
building blocks of the BMC of Afterpayit Company.
The main aim and purpose of the report is to understand the critical success factors
that can be adopted by the company in order to gain proper competitive advantage. The risks
have to be analysed effectively as this will help in solving the different issues with proper
implementation of strategic decisions.
The structure of the report includes the analysis of the business canvas model of
Afterpayit Company with the proper SWOT and Porter’s Five Forces Model of the business
canvas model of the respective company.
Description of Company
Afterpayit is one of the companies wherein they offer flexibility and simplicity in the
payments methods of the customers while they purchase different kind of products from the
stores both online as well as offline. The respective company was founded in the year 2014 in
Sydney, Australia with a proper ambitious goal wherein it offers different kind of plans to the
individuals in the market in comparison to the other competitors ("Afterpay it! - Afterpay -
Shop Now. Get it Now. Pay it in 4.", 2018). Afterpayit Company introduced their first
product in the year 2015 wherein different kind of plans of free instalments are available for
the purchasers either online or offline.

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Products and services offered by Afterpayit
There are different kind of products and services launched by Afterpayit Company
wherein they have launched their first product in the year 2015 (Demil et al., 2015). The
respective company has provided the customers with different kind of services and products
in an effectual manner wherein they include the different kind of simple, interest free
instalment plans that is suitable for the customers and they have gained huge competitive
advantage as well. The Afterpayit Company provides free services and products to both the
online and offline shopping of the customers who pay through Afterpayit application. Nick
Molnar is the CEO of the company who has developed the application as to provide the
customers and users a unique experience with the help of the usage of the same technology in
an effective manner (Wirtz et al., 2016).
Business Canvas Model of Afterpayit
Key Partner
Different kind of
services and
products providers
along with sellers
The sellers who
help in making the
payments
successful in
nature
Key Activities
Designing of
the different
kind of
services
Data security
Value
Proposition
Third party
kind of
products as
well as
services
Transfer of
money
Payment of
bank
Customer
Relationship
s
Long term
customer
relationships
are
appreciated
as this helps
in increasing
their
competitive
advantage in
Customer
Segments
Payment bank
customers
Retail kind of
customers
Non payment kind
of banks

5BUSINESS MODEL DECONSTRUCTION
the market as
well
Key
Resources
License of
bank payment
Channels
Different
kind of
applications
such as wallet
shop and
seller shop as
well
Websites
Cost Structure
 Maintaining the license of the bank
 Development of different kind of
services
 Management of the security of the data
Revenue Streams
 Commissions
 Payments from the customers along with
delivery fees of the delivery boys
Key relationships between nine building blocks
Proper and effective relationships exist between the nine building blocks of the
Company named Afterpayit. The key partners in the BMC helps in providing and creating
different alliances for the different partners in the organization. This is the absolute
combination of the specialization and knowledge wherein it will help in constituting for a
new relationship. The key activities are essential in nature wherein this will help in

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understanding the core activities of Afterpayit and this will help in canvassing the new
customers that will help in making the task easier in nature (Upward & Jones, 2016).
The key resources are essential in nature as this help in inclusion of the financial,
human resources that will help the entire company in gaining competitive advantage. The
value propositions are essential in nature as it helps in distinguishing the features of the
products and services offered by the company to the customers. The relationships among the
customers is essential in nature as this will help the company in anticipating the needs and
requirements of the customers effectively (Foss & Saebi, 2017).
The channels are essential part in Afterpayit Company as this will help in dealing with
different kind of communication and distribution channels in an effectual manner. the
customer segments are essential in nature as well as this helps the company in identifying
their specific needs and requirements and solve them effectually as well. the revenue and cost
structure are essential in the organization as this will help the company in providing clear
insight into the different kind of revenue model of the company that has been adopted by
them (Veit et al., 2014).

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Integrated SWOT analysis and Porter’s Five Forces Model analysis
With the help of SWOT and Porter’s Five Forces analysis of the Business Canvas
Model, it can be analysed that there are different strengths and weaknesses. However, the
weaknesses and threats have to be taken as the opportunity to make the payments in an easier
Strengths
There is huge population in the target market
that will help the company in gaining
competitive advantage
Simple along with credible source of
payment
Weaknesses
There can be slow down of servers and this
can be create huge negative impact
Unable to handle traffic as well
Opportunities
Increasing the awareness of the app system
effectively
Exponential growth in the online shopping
era
Threats
Highly capable kind of huge competition
There can be problems related to
connectivity
SWOT
There are differnet buyers who can choose another option wherein the technological advancements are high in
nature
Bargaining power of buyers
There are different suppliers in the market, however there are issues wherein the suppliers are less in nature
Bargaining power of suppliers
There are different kind of rivalries wherein the company needs to understand the competitors in the market
wherein this will help the company in solving such issues
Rivalry among existing competitors
Other kind of competitors will be threat to company wherein they need to introduce strategies
Threat of new entrants
There are different kind of substitutes that offer same kind of services as this will create huge issues in the
company
Threat of substitutes

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manner (Osiyevskyy & Dewald, 2015). Afterpayit Company needs to understand the
different kind of issues in the Porter’s Five Forces Analysis, wherein this will help the
company in understanding the different tactics that can help them in gaining competitive
advantage (Schaltegger, Hansen & Lüdeke-Freund, 2016).
Furthermore, the company needs to understand the issues in such a manner wherein
the strengths and opportunities are used as the source of the success for the company.
However, there are issues and threats to the company that can create huge issues and this has
to be taken as strengths for the company as well (Joyce & Paquin, 2016). Lastly, the company
needs to understand that there are different kind of risks that has to be ascertained in an
effectual manner that will help the company in understanding such issues.
Critical Success Factors
There are different kind of critical success factors of the Afterpayit Company wherein
it includes the following:
It has created ease for the different onboarding merchants as this will help the
company in being ahead of the different rivals in the entire market
Proper and viral distribution is the other critical success factor wherein it helped in
extending the existing users in the company who will be using the application in an
effectual and easy manner (Dijkman et al., 2015)
Frictionless payments are offered by the Afterpayit Company wherein it is offering
their customers payment methods that is hurdle free and this is attracting customers in
an effectual manner as well (Bughin, 2017)

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Downside Risks
There are different kind of downside risks in Afterpayit Company wherein it can
negatively affect the company and the reputation of the company as well. The different kind
of downside risks are as follows:
There is higher risk of theft of identity that can make the details of the customers
available in the website. This will create huge issues for the company in dealing with
them effectively (Bocken et al., 2014)
The redressal system is weak in nature wherein there are times when customers add
money to their wallets, however later on it can be seen that money is lost and is not
being found as well (Carayannis, Sindakis & Walter, 2015)
Lastly, when the phone is lost, it can create huge trouble for the customers as well as
the company because the customers will be calling the customer care as the
credentials are essential that are lost and this can have negative impact on it as well
(DaSilva & Trkman, 2014)
Recommendations and requirement of changes
There can be different kind of recommendations that can be made for the company in
the future as this will help the company in gaining competitive advantage (Bala & Hou,
2017). The Afterpayit Company needs to understand the moves of the competitors wherein
this will help in understanding the issues in an effectual manner. The design of the Afterpayit
has to be done in such a manner that will help in making the system more secure and it will
require the different details that will help the customers in completing the payments and shop
in an easy manner as well.
Furthermore, the company needs to design their website in such a manner that the
registered members will be able to make transactions and there will be generation of OTP

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codes as this will help them in satisfying the requirements of customers and making the entire
system safe in nature as well. Lastly, the company needs to introduce a safety pin that will
help the customers to be aware of the data theft even when the phone is lost or misplaced as
this can track such information and block it effectually as well. It is required for the company
to implement a strategy that will help the company in solving the issues and this will help
them in competing with other competitors in an effectual manner as well.
Conclusion
Therefore, it can be concluded that business canvas model is essential in nature as this
has helped the company in understanding the different key relationships between the nine
building blocks of the company’s BMC. The different changes along with critical success
factors has been identified and analysed that has helped the company in gaining competitive
advantage in the market as well. The different SWOT and Porter’s Five Forces Model
analysis has helped the company in understanding the strengths along with opportunities that
can be uses by them to make the system secured in nature.
References
Afterpay it! - Afterpay - Shop Now. Get it Now. Pay it in 4.. (2018). Afterpay.com. Retrieved
29 March 2018, from https://www.afterpay.com
Bala, R., & Hou, W. (2017, January). Toward A Typology of Incumbent Response to
Disruptive Business Model Innovations. In Academy of Management
Proceedings (Vol. 2017, No. 1, p. 13830). Academy of Management.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65,
42-56.

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Bughin, J. (2017). The best response to digital disruption. MIT Sloan Management
Review, 58(4).
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long
range planning, 47(6), 379-389.
Demil, B., Lecocq, X., Ricart, J. E., & Zott, C. (2015). Introduction to the SEJ special issue
on business models: business models within the domain of strategic
entrepreneurship. Strategic Entrepreneurship Journal, 9(1), 1-11.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-
678.
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how
far have we come, and where should we go?. Journal of Management, 43(1), 200-227.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Osiyevskyy, O., & Dewald, J. (2015). Explorative versus exploitative business model change:
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Entrepreneurship Journal, 9(1), 58-78.
Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for
sustainability: Origins, present research, and future avenues.

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Upward, A., & Jones, P. (2016). An ontology for strongly sustainable business models:
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Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., ... & Spann, M.
(2014). Business models. Business & Information Systems Engineering, 6(1), 45-53.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin,
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