Business Model and Strategic Planning for Mad Paws - Desklib

The report discusses the business model and strategic planning for Mad Paws, a Sydney based pet care service provider. It includes a SWOT analysis, key activities, key resources, key partners, cost structure, and revenue stream. Suitable recommendations are provided to increase Mad Paws' image and popularity.

Running head: BUSINESS MODELS AND STRATEGIC PLANNING
Business Model and Strategic Planning
Name of the Student:
Name of the University:
Author’s Note:

6BUSINESS MODELS AND STRATEGIC PLANNING
Executive summary
The subsequent report shall be discussing a business model plan that shall help in establishing
an efficient operation for Mad Paws. Mad Paws is a Sydney based pet care service provider
that delivers a wide range of services for pet owners. In the following report a detailed
business model is discussed that would enable the company to determine distinctive
operations area. Furthermore, a SWOT analysis is conducted upon the company that shall
enumerate the key areas of improvement for the company. The four area framework shall be
discussed in order to consider the distinctive factors that may help in accelerating the success
rate of the company.

7BUSINESS MODELS AND STRATEGIC PLANNING
Table of Contents
Introduction................................................................................................................................7
Company overview....................................................................................................................8
Strategic issues.......................................................................................................................8
Business model canvas..............................................................................................................9
Value proposition...................................................................................................................9
Customer segment..................................................................................................................9
Channels...............................................................................................................................10
Customer relationship..........................................................................................................10
Key activities.......................................................................................................................11
Key resources.......................................................................................................................11
Key partners.........................................................................................................................12
Cost structure.......................................................................................................................12
Revenue stream....................................................................................................................13
Business pattern.......................................................................................................................14
SWOT analysis........................................................................................................................14
Value proposition canvas.........................................................................................................15
Four action framework.............................................................................................................17
Recommendations....................................................................................................................17
Conclusion...............................................................................................................................18
References................................................................................................................................19

8BUSINESS MODELS AND STRATEGIC PLANNING
Introduction
Mad Paws is a Sydney based pet boarding service company that provides the pet
owners a reliable and guaranteed place for accommodation of their pets. The company was
established in the year 2014 and since then it has expanded and developed to be a successful
pet care service company in Sydney Australia (Madpaws.com.au 2018). The company offers
services for pets such as cats, dogs, rabbits, guinea pigs. Besides providing shelter or
accommodations for pets, the company also offers a wide range of other pet related services
that makes the life of pet owners a lot easier. Dog walking, house visiting, pet day care, dog
grooming and training are some of the services that the company delivers to its customers
(Madpaws.com.au 2018). The company aims in providing the pet owners the most reliable
and convenient pet sitters for their pets when they are away. Mad Paws do business in a most
cruel-free way as they do not use any cages or kennels for the pets. They find the customers
the most caring and passionate pet sitter in the most suitable neighbourhood that would care
and love their pet.
In this report a business model is created for Mad Paws in order to initiate a
successful operation in to the pet care industry and further expand its popularity. From
identifying the key customer base to detecting the sources of revenue, a well thought out
business model is created for Mad Paws. Mad Paws have a good image in the market of
Sydney and thus, it already have an advantage in the competitive market. In order to further
accelerate its rate of success a business model along with a SWOT analysis is conducted. The
outcome of the analysis are then reviewed to construct suitable recommendations that would
increase Mad Paws image and popularity. The business model canvas along with value
proposition canvas is prepared for the purpose of understanding the customers and then
implementing strategic plans to satisfy the demands of the customers. The sources of revenue
and resources are also identified so that the company could take the suitable opportunity and
ultimately take advantage of it to carry out a successful business.
Company overview
Mad Paws are a Sydney based company that offers a wide range of pet care services
to the needful customers. The company was inaugurated in the year 2014 and have made a
decent mark of its own in the pet care industry (Madpaws.com.au 2018). The company
mission is to provide a trusted and affordable neighbourhood suitable to the pet owners need
and deliver a carefree place for the pets. With this mission statement in context, the company
offers its customers a variety of services. The company provides a home for the pet owners
along with the option of finding a trustworthy and affordable pet sitter, in fact, the company

9BUSINESS MODELS AND STRATEGIC PLANNING
delivers grooming services for dog owners as well. Mad Paws is a complete package that
offers the pet owners quality services for their pets. One of the highlighting characteristics of
this company is that it ensures that a cruelty free and affectionate home is provided to pets
that do not use any cage or kennel for their accommodations. This is one of the reasons why
the company is extremely popular among the locals and surrounding areas of Sydney.
Strategic issues
Even though the company over the years has successfully achieved a decent
reputation of its own there are certain challenges that come in way of Mad Paws. Some of
these strategic issues are –
· Mad Paws is well known for its premium services in the competitive market.
However, the charges applied for such premium services are not up to the mark.
Therefore, as the operating costs increases the prices of the services remain the same
and ultimately affecting the business.
· The company have a fair amount success in the market and identity of its own.
However, it fails to emerge as a unique brand among the other competitors in the
market.
· Another challenge that the company faces over the period is setting up boundaries for
their services. This have a negative impact on their operating medium and ultimately
affects upon their business.
· Often the pressure to provide quality services to pet owners result in dissatisfaction
among the workers associated with the company. This gives rise to dissatisfaction in
them and the qualities of services degrade.
Business model canvas
Value proposition
Mad Paws have a range of services and products that satiates the customers need.
Mad Paws is a pet care service company that provides pet owners the facility of pet sitting.
The company aims to simplify the life of pet owners and deliver quality experience to the
customers.
Value proposition statement – “Connect with one of our 14,481 pet sitters to love your pet
when you're not around”
Product/Services – The company provides its customers a range of services such as finding
the suitable pet sitter to providing accommodations to the pets. The company also delivers

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dog grooming services, dog walking, dog training and services of pet sitting at the
convenience of the pet owner’s resident (Madpaws.com.au 2018).
Target market – The target market for Mad Paws are the pet owners that travel and other pet
owners as well.
Primary benefit – Simplify the lives of pet owners by providing loving sitters. In addition to
this, the pet owners get assistance and resources necessary for their pets in the pet care
service that the company provides.
Unique factor of value proposition – The company provides its customers a loving and caring
sitter that uses cruel free skills and resources for the pets. Cages and kennels are strictly
prohibited resources in order to execute a quality and affectionate service for the pets.
Customer segment
In order to determine the distinctive customer or consumer groups existing in the
market a customer segment is set up. The distinctive groups helps in understanding the
differentiated needs of the customers and then accordingly planning the operations for it
(Hjort, Ericsson and Gattorna 2013). For Mad Paws, there are significantly two broad
customer groups present in the market and these are –
New pet owners – It has been observed that majority of new pet owners seek for pet care
services since they do not have prior experience of handling their pet (Instone and Sweeney
2014). Henceforth there is a huge demand of pet care services among new pet owners and pet
owners that have less than two years of experience.
Pet owners belonging to age group 20 to 45 – Another broad group of target market can be
found in the segment of customers belonging to age group 20 to 45. It has been observed that
customers belonging this range of age group have a busy schedule and are unable to give
proper attention to their pets (McEachern and Cheetham 2013). Henceforth they seek out for
pet care services that provide them assistance in taking care of their pets.
Channels
For the purpose of executing its services to the end customers that are the pet owners
for Mad Paws, there are significantly two distribution channels. These are –
Official website – The official website of Mad Paws is the key channel with which the
business connects with its target customers. The website contains all the necessary
information and contact details with the help of which the company can post its details and
offerings on a broader platform. The customers can easily book an appointment or a service

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for their pet. In addition to this, the website is equipped with feedback system as well that
helps to understand the company the needs of the customers in an efficient way.
Mobile apps – Mad Paws have also taken the initiative of expanding its distribution channel
on a broader level by introducing its personalised mobile app that are available for iPhone
and android users (White 2018). The mobile application further gives an opportunity for the
business to distribute its services to the end customers.
Customer relationship
Mad Paws aims in maintaining a dedicated and long term customer relationship with
its customers. Since the company’s mission is to provide the pet owners a reliable and
affectionate pet care services, the kind of customer relationship that it aims is long term.
Long term – In order to establish a long term customer relationship the company takes
necessary steps in providing quality services. In addition to this, the employees of the
company have a recurring interactions with all their customers for the purpose of maintaining
long term customer relationship.
Dedicated assistance – In relation with establishing a long term customer relationship, the
company also aims in providing a dedicated assistance or guidance to the customers for
satiating the customer needs. Each customer is provided with a dedicated support individual
that helps in providing guidance to the pet owners in general. This type of relationship also
helps in developing a long term relationship with the customers.
Key activities
Based on the above mentioned factors the key activities that the Mad Paws must
perform are as follows –
· In order to attract the target market and various customer segments, the company must
advertise and promote itself on various platforms. Social media advertising is a great
way to execute this activity since it is easier to use and can reach a wide range of
customers as well.
· One of unique selling point of the company is to provide a loving and caring service
to the pets and therefore, the pet sitters along with other staff members involved
require proper training in order to sharpen their pet sitting skills. Henceforth,
providing training session to all the staff members is another key activity.

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· Another key activity that the company shall initiate is to run a background check of
the pet sitters in order to ensure safety of the pets and providing premium services to
the pet owners.
Key resources
The key resources of the company are the main assets that can further accelerate the
operating system of the business. These resources are extremely necessary in order to execute
a smooth functioning of the business. For Mad Paws the following are the key resources –
· Staff members that are skilled to handle the pets along with it veterinaries are the key
physical resources that the company needs in order to deliver the services it aims to
provide its customers.
· Another key resource that the company must include or focus on is platform
development. The technological platform used for the distribution channels must be
upgraded.
· The premises of Mad Paws must be expanded and for such purpose the company
requires financial investments. The company could apply for loan so that it could get
the sufficient amount of financial support. This shall help in expanding the premises
of the company.
Key partners
The key partners provides the company with supplies and partners with the help of
which the business can operate effectively in the competitive market (Dijkman et al 2015).
Some of the key partners of Mad Paws are as follows –
· Veterinarians are one of the key partners that could provide the company with the
assistance and thus, help establish a day care service which the company aims to
execute. The professionally skilled vet doctors and others shall provide the much
needed assistance that the Mad Paws day care department needs.
· Pet supply retailers are another significant partners that shall be essential for the
company. The products and resources that required to set up and construct the
business of pet care service shall be provided by these pet supply retailers.
· Pet insurance companies are another significant partners that must be associated with.
The legal obligations and safety standards are covered by these pet insurance
companies in case of any mishap happens in the business. The insurance could cover
the risks that may occur.

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Cost structure
The cost structure that the company shall follow must be value driven. Since the
company aims in providing premium pet care services to its customers, the cost structure that
it must follow should be value driven. Therefore the analysing the key expenses and the
returns that the company shall gather from its services, a good financial structure can be
analysed. The company plans on expanding the premises and upgrade its technological
platform. For this purpose, the company shall opt for short term loan. Since the cost structure
shall be value driven the profitable business shall be on the low radar. However, the company
predicts to grow financially with the payments from the services and products that it shall
offer. Below is the significant financial assumption –
Revenue stream
Most of the revenue for Mad Paws is and shall be generated for future from the
customers and clients of the company. The number of new pet owners and pet owners
belonging to age group 20 to 45 years are the two significant customer segments and most of
the revenue shall be generated from these two segments itself. The variety of services
provided by the company shall be beneficial for it to attract these customer groups. However,
in order to be successful in the competitive market, the client growth rate must be steady for
Mad Paws. It would be impossible for the company to overcome the loans, gain profit and
cash flow if the customers do not bring in pets for the services offered. The cash flow below
depends on the bridge loan in middle of the year from the founders of the company that is to
be repaid at the end of the year.

14BUSINESS MODELS AND STRATEGIC PLANNING
Business pattern
The business pattern that can be observed from the above mentioned business model
is the unbundling business model. The business is divided into two distinctive entities for the
purpose of avoiding any sort of conflict and bring in complete focus on those entities. These
two broad entities that are identified are infrastructure management and customer relationship
management. Within the infrastructure management comes all the physical resources along
with material resources and other operations components such as policies, processes and
others. Whereas in customer relationship management customer satisfaction is of highest
priority. Both the entities are given much focus in Mad Paws business since providing and
maintaining valued customer service is of highest priority.
SWOT analysis
The following SWOT analysis is conducted upon Mad Paws in order to analyse the
company’s strengths and weaknesses along with opportunities and possible threats. With the
help of these analysis the company shall be able to identify its area of improvement along
with the potential threats that it may face in the competitive market. The strengths
enumerated with the help this analysis shall further me improved.

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Strengths
· The company is a well-known pet service
provider in the locality it is situated.
· Mad Paws provide wide range of pet care
services where the customers can choose
from.
· The company has a good reputation as it
uses cruelty free approach to handle and
treat pets.
Weaknesses
· The company does not have strong brand
identity of its own.
· The company suffers from financial loss as
a result of its poor pricing structure.
· The technological support of the company
is backdated.
Opportunities
· Mad Paws have an opportunity to develop
technologically by making specific
upgrades.
· It has a lot of scope to be popular with its
wide range of services and good reputation
of doing business.
Threats
· The company may face threat from other
pet service companies that are existent in
the market.

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17BUSINESS MODELS AND STRATEGIC PLANNING
Value proposition Canvas
The value proposition canvas provides the business an understanding of what the
customers need and if those needs are fit with that of company’s services and products. Mad
Paws being a pet care service provider have its customers in those individuals that possess
pets or are pet owners. Henceforth, the customers or pet owners need is to get services that
takes care of their pets and provide assistance and guidance for training their pets. This would
simplify the pet owners’ job to handle and taking care of their pets in a significant way. The
company is provides exact services that the customers of pet care industry seek for.
Henceforth, the company’s products and services are an exact fit with that of customers need.
Furthermore, the company provides a range of other facilities as well that efficiently
simplifies the lives of customers. Providing pet training, dog walking, finding pet sitters
according to the locality of the customer, these operations acts as a pain relievers for the
customers.
Value Curve
High
Medium
Low

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Mad Paws places high value on the aspects of cruelty-free environments, providing
caring sitters, having good customer relationships, the vetting of pet sitters, use of
technology, and skilled staff. Placing focus on these aspects results in Mad Paws setting itself
ahead of competitors who do not value a good and caring environment which is free of cages
and kennels. It also allows for the providing of a higher quality service through the skilled
staff and sitters who are properly vetted. Mad Paws places a medium value placed on
establishing a brand identity and cost of services. The company looks to create an affordable
product which means they are placed between more expensive or luxury competitors and
competitors who offer much cheaper services. They have still to develop a unique and strong
brand identity which would help them to be set apart from similar services. Mad Paws places
a low value on profits which is reflected by their struggles regarding the providing of a
premium service which is set back by rising operating costs. Overall Mad Paws places higher
values on aspects which is exclusive to their offering which enables them to strengthen their
value proposition.
Four action framework
Using the four action framework below the company shall analyse which factors must
the company reduce, eliminate, raise and create –
Raise – The company must continue to provide the current services that it is executing at the
moment provided some changes may be done with the changing trends. For instance, pet
obesity is a major trend in current scenario therefore, the company could provide assistance
regarding this issue and upgrade its services furthermore.
Create – The company should provide pet health care as well where the highly skilled
veterinaries could work and take care of the pets. This shall further increase the sales rate of
the company as it will provide and added pet service.
Reduce – The company tends to provide premium services to all the customers and this often
causes an ample amount of investment from the company and less amount of return.
Henceforth, the company must reduce its alternating price range and provide services
according to the rates that are paid by the customers.
Eliminate – The company may want to eliminate their bird sitting services as there is
comparatively low amount of demand for the specific facility. This action would save an
ample amount of distinctive resources.

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Recommendations
From the above analysis it can be said that Mad Paws have certain areas of
improvement that may be lagging behind in the current operations. Henceforth, some of the
recommendations that may work in favour of the company are as follows –
· The company must set its premium services for premium customers only and not for
every other customer. This could save the expenditures of the company and thus
benefit the company financially.
· Mad Paws must expand its distribution channels in order to reach a wide range of
customers and therefore, increase its sales to a significant level.
· It must explore and expand its facilities to pet health care as well as it would provide
the company to gain new customer segment.
Conclusion
Henceforth, it can be said from the above discussion that Mad Paws have secured a
reputable position in the competitive market of pet care industry. However, it requires to
focus on certain areas of in order to accelerate its sales growth and increase its reach on a
dynamic level. The above mentioned business model and SWOT analysis determines and
enumerates its area of growth. In addition to this, the four action framework determines
factors that are essential for achieving an efficient functioning in the competitive market.

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References
Dijkman, R.M., Sprenkels, B., Peeters, T. and Janssen, A., 2015, ‘Business models for the
Internet of Things’, International Journal of Information Management, vol. 35, no. 6, pp.672-
678.
Hjort, K., Lantz, B., Ericsson, D. and Gattorna, J., 2013, ‘Customer segmentation based on
buying and returning behaviour’, International Journal of Physical Distribution & Logistics
Management, vol. 43, no. 10, pp.852-865.
Instone, L. and Sweeney, J., 2014, ‘Dog Waste, Wasted Dogs: The Contribution of Human–
Dog Relations to the Political Ecology of Australian Urban Space’, Geographical Research,
vol. 52, no. 4, pp.355-364.
Madpaws.com.au 2018, Mad Paw, viewed 17 October 2018
<https://www.madpaws.com.au/about/in-the-press/>.
McEachern, M.G. and Cheetham, F., 2013, ‘A conception of moral sensitivity and everyday
consumption practices: insights from the moralizing discourses of pet owners’, International
Journal of Consumer Studies, vol. 37, no. 3, pp.337-343.
White, K. 2018, Mad Paws raises $1.1 million as pet-sitting competition gets ruff ,
SmartCompany, viewed 16 October 2018,
<https://www.smartcompany.com.au/startupsmart/advice/business-planning/mad-paws-
raises-11-million-as-pet-sitting-competition-gets-ruff/>.

Running head: BUSINESS MODELS AND STRATEGIC PLANNING
Appendix A: Business Model Canvas for Mad Paws
Key Partners Key Activities
Key Resources
Value Propositions Customer
Relationships Customer
Segments
Channels
Cost Structure Revenue Streams
facility of pet sitting
creating a connection
between pet owners and
pet sitters
Simplify the lives of pet
owners by providing
loving sitters
Gaining of the necessary
resources and assistance
for pets in the pet care
service
Provision of a loving
and caring sitter which
uses cruelty free skills
and resources
Cages and kennels are
prohibited
New Pet owners
Seek pet care services as
they lack prior
knowledge. Have less
than two years of
experience.
Pet owners in the 20-45
age group
Busy schedule that does
not allow them to give
proper attention to pets.
Need assistance to take
care of pets.Official Website
Key channel. Contains all
necessary info. Booking of
appointments and services.
Feedback system to
understand customer needs
Mobile Apps
For iPhone and Android
users.
Aims for a long term
relationship
Provision of quality
services and recurring
employee-customer
interactions
Aims to provide dedicated
assistance or guidance
dedicated support
individuals
advertisements and
promotions on various
platforms to attract
target market
provision of training
sessions for all staff
members
Running of background
checks of sitters
Staff members which
are skilled in pet
handing
Veterinaries
Platform development,
technological platforms
which can be upgraded
Expandable physical
premises
Pet sitters who will be
featured on the platform
are needed to provide
the service
Veterinarians who
provide assistance and
help to establish day
care service
Pet supply retailers are
needed for setting up
products and resources
Pet insurance companies
are needed to cover
potential risks
Technological maintenance
Veterinarians
Retailers
Insurance
Premises hire/mortgage
Advertising
Staff training
Loan repayments
Services provided to pet owners
Loans
Investor Funding

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Appendix B: Value Proposition for Mad Paws
Gains
Customer jobs
Pain relievers
Pains
Gain Creators
Products
and
Services
Value Proposition Customer Segment
Unable to properly care for pets
when busy
Lack the knowledge on how to
properly care for pets
Don’t have the pet care assistance
that need
Want their pets to be treated kindly
Caring for and loving
pets both when
around them and
when away from
them
Better knowledge on how
to care for pets
Assistance from experts
Care for pets when
personally unable to
“Connect with one of our 14,481 pet sitters to love your
pet when you're not around”
New pet owners
Pet owners aged 20-45 years
Platform which connect
owners with sitters
Platform that enables
assistance and guidance
Cruelty free caring
finding of pet sitters
pet accommodation
dog grooming
dog walking
Dog training

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Appendix C: Value Curve for Mad Paws
High
Medium
Low