Business Model Deconstruction Research Paper 2022

Business Model Deconstruction
Assessment 1
Canva Pty Ltd
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Executive Summary
Canva Pty Ltd is the graphic design platform that was founded in the year 2012. The
organisation allocates the users to create graphics for the social media then the presentation,
poster as well as various other visual contents. The business model building blocks clearly show
that the organisation has suitable consumers along with the effective value proposition and also
their revenue and cost structure is well managed. The critical success factors for the business are
Commitment to improvement, Commitment to improvement and Commitment to leverage.
Factor impacting the success of the business model is inefficient products or the services then
multiple focuses on the business and much more.
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Table of Contents
Introduction.................................................................................................................................................3
Organisation Description.............................................................................................................................3
Business Model...........................................................................................................................................3
Building Blocks.......................................................................................................................................3
Interrelationships.....................................................................................................................................5
Critical success factors............................................................................................................................6
Factors impacting the success of the business model...............................................................................6
Changes in the business model................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
Appendix...................................................................................................................................................10
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Introduction
The aim of the paper is to discuss the business model used within the organisation. The paper
discusses the nine building blocks of the business model and also the interrelationship within the
model. The paper further discusses the critical success factor, along with the factors that are
creating an impact on the success of the business model. The paper also discusses the suitable
changes that could be done within the business model. To effectively understand all the points
the organisation Canva Pty Ltd has been selected.
Organisation Description
Canva Pty Ltd is the graphic design platform that allocates the users to create graphics for the
social media then the presentation, poster as well as various other visual contents. This
organisation was founded in the year 2012, and they serve the area of worldwide with
headquarter in Australia (Canva.com, 2020). The organisation operates within the industry of
graphic design software. The users of this organisation are able to select a professional design
from the templates that are available on the website and also they can edit that according to their
design. The organisation consists of almost 977 employees, and they are having around 20
million users all over the world. The organisation has eventually developed their market, and
they have acquired the presentation start-up Zeetings in its presentation space (Canva.com,
2020). They have even announced the acquisition of Pixabay as well as Pexels, which is the free
stock photography sites that are based in Germany.
Business Model
Building Blocks
Customer segments
The organisation is having the customer segment from the various ranges like the private
individuals to global organisations (Wrigley, & Straker, 2016). There is also an option for the
guest mode along with the log-in activity for the subscribers.
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Key partnerships
The organisation is having the key partnership with the website designing team along with the
Zeetings then the Pixabay as well as Pexels. This allows the firm to provide its subscribers with a
vast range of templates and professional design.
Key activities
The primary activity of the firm is to provide professional design for the individuals as well as
for the organisation. They even provide graphic design for the various visual contents.
Revenue streams
The revenue charges of the firm are based on the premium users, along with the free users for
performing their activity (Castillo-López et al., 2019). They even have the fees charged for each
of the transaction within the business.
Value propositions
It provides the social sharing platform for the business along with the integration with the other
popular eCommerce organisation within the market. They even have the convenient bill splitting
within the business for the users.
Channels
They have various channels like the App store then the Google Play along with the Web version
(Huda, Chumaidiyah, & Hasun, 2019). Users can also directly visit their official website for
developing the graphic presentation and also for downloading the templates.
Key resources
The primary key resources that the organisation uses, in general, are the code base along with the
developer then the tester and even the designer.
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Customer relationships
They maintain the customer relationship with the help of social media then the live chat through
their website (Gonçalves, & da Silva, 2017). They even provide support to consumers through
their customer service process.
Cost structure
The cost structure is associated with the research and development along with the licensed
software then the marketing process for the firm.
Interrelationships
The building blocks of the business model are interrelated with each other as this help the
business to perform their activity effectively within the market and also help them to enhance
their business process. The organisations are having more than 20 millions of users and for that
maintaining the customer segment along with the customer relationship are highly essential for
enhancing the revenue of the firm (Aguilar-Fernández, & Otegi-Olaso, 2018). The value
proposition of the firm helps to link the customers to the cost advantages of the direct channel
through online for providing the best professional outcome to the users. The valuation of the firm
has been raised to 3.2 billion dollars, and this has been achieved with proper customer
relationship along with the value proposition of the firm. It can be effectively understood from
the various processes within the business that the business model allows the organisation to
perform their activity in the most planned way.
The linking of the cost along with the revenue is inventory management as well as the part of the
pricing tactics. It eventually helps the organisation for maintaining the graphic designing process
along with the physical staff that the organisation for making presentation and physical posters.
The activities of the firm allow the business to enhance their value along with the cost structure
of the business as this is effectively done with the help of suitable partners of the business
(Tseng, Lim, & Wu, 2018). The organisation with the help of their channels are able to get along
with the consumers and provide them with the most effective value within the market which
eventually allow the business to enhance their value proposition along with the revenue of the
firm. The entire business process is highly associated with the business model, which allows
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them to perform their activities and maintain the consumers by providing them with a suitable
activity within the field.
Critical success factors
Commitment to improvement
It is one of the core practices within the industry for improving the heart as well as the
commitment to measures the business process (Kim, Kim, & Jeon, 2018). It can be seen that
without measuring as well as reporting at the regular interval, it is quite impossible to measure
the progress or even to identify the area for the improvement within the business.
Commitment to engagement
The engagement of the stakeholders within the business is one of the leading attributes for the
implementation of the successful sustainable program within the business (Aleem, Capretz, &
Ahmed, 2016). The improvement of stakeholder engagement within the business allows Canva
to enhance their sustainability success rate within the market.
Commitment to leverage
It eventually emphasizes the economic benefits of the firm that go within hand to hand by
improving the sustainability program (Aleem, Capretz, & Ahmed, 2016). It deals with the eco-
design then the logistics and even with the customer satisfaction level within the market.
Factors impacting the success of the business model
The factor that might create a huge impact on the success of the business model is as follows;
 Focusing on the multiple ideas within the business
 Inefficient products or the services that have been provided by the firm (Wang, & Li,
2017)
 Not having a proper communication system within the business among the staff members
and the management team
 If the organisation is not having suitable attribution within the business process
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 If the organisation have targeted the wrong audiences for their business process and also
for the development of the firm (Changchit, & Chuchuen, 2018)
 If the organisation is not having the suitable as well as an effective marketing plan for
enhancing their business value within the market
Changes in the business model
If this was my business, then I would definitely make some changes within the business model. I
would eventually move towards the process of better understanding the need of the users for
developing the graphic design. The industry is gradually developing and for that introducing a
better option for graphic designing is highly essential to enhance the business value within the
market (Li, 2018). In the customer relationship segment, there would be an option for the
feedback so that it could help the business to understand their drawbacks and their area of
improvement within the market. It is highly essential for the business for dealing with the
business value and providing some of the effective results for the consumers.
I would have developed more new designs along with the subsidiary sites for the users to get the
scope of photography than video editing and much more. It will eventually help the consumers to
grab the attention of numerous customers all over the world (Li, 2018). This is one of the best
ways to enhance the market value of the firm and also the revenue of the business. I would
further make the company easy accessible for the students by providing half of the subscription
cost so that more students are able to join the company and get the benefits of other activities.
Conclusion
The paper concludes that the business model is one of the essential parts for the business to
develop their value within the market. It clearly states the idea that the use of business model
within the organisation allows the management to have the clear understanding of their activities
and also they can further plan for the development of the business process within the market.
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References
Aguilar-Fernández, M. E., & Otegi-Olaso, J. R. (2018). Firm Size and the Business Model for
Sustainable Innovation. Sustainability, 10(12), 4785.
Aleem, S., Capretz, L. F., & Ahmed, F. (2016). Critical success factors to improve the game
development process from a developer’s perspective. Journal of Computer Science and
Technology, 31(5), 925-950.
Canva.com. (2020). Canva. Retrieved 14 April 2020, from https://www.canva.com/
Castillo-López, S. E., Guirao, S. K. F., Roldán-Reyes, E., Macias, A. A. M., & Duque, D. M.
(2019). A service design process based on the business model CANVAS and the CK
theory. In Managing innovation in highly restrictive environments (pp. 279-301).
Springer, Cham.
Changchit, C., & Chuchuen, C. (2018). Cloud computing: an examination of factors impacting
users’ adoption. Journal of Computer Information Systems, 58(1), 1-9.
Gonçalves, R. F., & da Silva, M. T. (2017, March). System Thinking and Business Model
Canvas for Collaborative Business Models Design. In Advances in Production
Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International
Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected
Papers (Vol. 488, p. 461). Springer.
Huda, M. M. N., Chumaidiyah, E., & Hasun, F. (2019, March). Design of Business Model on
Digital Printing Startup Using Business Model Canvas Approach. In 2018 International
Conference on Industrial Enterprise and System Engineering (ICoIESE 2018). Atlantis
Press.
Kim, B., Kim, H., & Jeon, Y. (2018). Critical success factors of a design startup
business. Sustainability, 10(9), 2981.
Li, F. (2018). The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation, 102012.
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Tseng, M. L., Lim, M. K., & Wu, K. J. (2018). Corporate sustainability performance
improvement using an interrelationship hierarchical model approach. Business Strategy
and the Environment, 27(8), 1334-1346.
Wang, M., & Li, X. (2017). Effects of the aesthetic design of icons on app downloads: evidence
from an android market. Electronic Commerce Research, 17(1), 83-102.
Wrigley, C., & Straker, K. (2016). Designing innovative business models with a framework that
promotes experimentation. Strategy & Leadership.
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Appendix
Business Model Canvas
Key Partners Key Activities Value PropositionsCustomer RelationshipsCustomer Segments
Banks
PayPal
eCommerce
Business
Payment
systems
Website support
as well as
maintenance
Mobile apps
support
Customer
service
Negotiation
with the
partners
Convenient bill
splitting
Social sharing
platform
Make the
payment in one
click
Social media
Help centre with
the questions
Mobile chat
Online chat
Website
Millennial
Organisations
Students
Individuals
Key Resources Channels
Code base
Developers
Testers
Designers
Licenses
App store
Google play
Web version
Cost Structure Revenue Streams
Research and development
Marketing expenses
Licensed software
Fees charged for each transaction
Personalised offers regarding design
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