Entrepreneurship and Business Model Canvas

This assignment delves into the field of entrepreneurship, examining its core concepts and practical applications. Students will utilize the Business Model Canvas as a framework to analyze existing entrepreneurial ventures and develop innovative business models for new ideas. The assignment includes case study analysis and requires students to apply their understanding of entrepreneurial marketing and human capital formation in developing effective business strategies.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student
Name of the University
Author’s note

1ENTREPRENEURSHIP
Executive Summary
The idea of a new business is very lucrative initiative but there are several factors that an
entrepreneur should keep in mind in order to conduct a business. An entrepreneur is a person
who not only initiates a business but also has leadership abilities and is also far sighted. In this
report the business idea that has been developed is of a new kind of mobile phone which looks
feels and works unlike any other mobile devices that are available in the industry. It is a
benchmark product which is the brand child of two friends. The product was in the prototype
stage for five years and now has been in the manufacturing unit. It is set to release in the mid of
2018.

2ENTREPRENEURSHIP
Contents
Introduction......................................................................................................................................4
Business Model Canvas...................................................................................................................6
Customer Segments:....................................................................................................................8
Value Proposition:.......................................................................................................................8
Channels:.....................................................................................................................................9
Customer Relationships.............................................................................................................10
Key Activities............................................................................................................................10
Key Resources...........................................................................................................................10
Key Partners...............................................................................................................................10
Cost structure:............................................................................................................................11
Figure: Cost structure................................................................................................................11
Source: Author’s creation..........................................................................................................11
Revenue Structure:.....................................................................................................................12
Feasibility analysis.........................................................................................................................13
Market feasibility:......................................................................................................................13
Technical feasibility:.................................................................................................................13
Financial Feasibility...................................................................................................................14
Organizational feasibility:.........................................................................................................14

3ENTREPRENEURSHIP
Conclusion.....................................................................................................................................15
Reference list:................................................................................................................................16

4ENTREPRENEURSHIP
Introduction
The name of the company has been decided by the owner of the company is Vivid
communication and this is the name the company has been incorporated in accordance to the
legal rules and regulations that are required to set up the company. The owners of the company
are friends from college, both have a technological background, where one of them is working in
the communication technology department for over ten years the other worked with Microsoft
for over 20 years in the research and development sector (Kiel 2014). Two of them came up
with a business idea of combining technology with glamour and create a cell phone that becomes
a symbol of style and fashion. The idea of the product is to create a mobile device that has a
display that is transparent, giving it a sleek chic style look along with the specification of the
latest trend. The idea of the product was in a prototype version for a long time as it was difficult
to manufacture the technology on a large scale initially. This cell phone is going to be the first of
its kind and is going to prove as a benchmark product in the mobile phone industry. It is going to
have all the features that a customer’s expects form a Smartphone starting from hardware
specifications like light weight, sturdy and durable, ergonomically designed as well as long
battery life. The feel and touch of the phone is going to be exceptionally luxurious. The company
will also provide with the latest technology in the software upgrade (Kuratko 2016). The phone
will run on the Google android platform with the latest Google nougat platform and will have the
inbuilt “ok Google” facilities along with several others that are available in a high end phone.
The display of the phone is going to be transparent as in a person can see through the display of
the phone. The phone is going to have the circuits and buttons on the panel that is built on the
sides of the phone giving it a chic look. The side panel will be available in three variants: matte
black, gold and matte white. The logo of the company will be at the bottom panel. The panels

5ENTREPRENEURSHIP
that will have the circuit will have a premium metal finish in order to make it sturdy and compact
(Kassean et al. 2015).

6ENTREPRENEURSHIP
Business Model Canvas
Developing a business model is essential for an organization as it has the capability to
show the higher management of the organization a path that has to be followed in order to
achieve the vision and mission of the company. Creating a business model canvas will give the
management of Vivid communications the arrangement of a business plan without the
complications and extra information. It is a simple and more contemporary method of
developing a business plan (Kassean et al. 2015)..
For vivid communication the business model includes four main elements the organization, the
product or service that is involved in the business, the end consumers and the revenue of the
company. The product that is being offered to the consumers is a mobile device. It is in the
category of a Smartphone. There is high intensity competition in the market for Smartphone.
Every year giant companies like Apple, Samsung, MI, Google etc are coming up with devices
which are not only high in technology but is also user friendly and agronomical hence it is
important for the company to develop a plan of action (Dudin et al. 2015).
Keypartners Key activities Value proposition Customer Customer

7ENTREPRENEURSHIP
 Cornin
g
 Amazo
n
 Press
conference
and launch
 Looks and
design
 Technology
 Luxurious
relationship
Third party
help
segment
 High income
group
 Accustomed
with using
high end
products
Key resources
 Manufacturing
unit
 Employees
Channels
Amazon
delivery
service
Cost structure
 Raw materials
 Manufacturing
 Salaries
 Partnerships
Revenue structure
 Sales
 Collaborations
 Partnerships
Figure: Business Model Canvas
Source: Authors creation

8ENTREPRENEURSHIP
Customer Segments: The targeted customers of the company are people who are both tech
savvy and are also lean towards high end fashion brands. The target market of the brand are
people who are from the higher income group and are willing to spend that extra buck to have
the best and the most unique mobile phone in the market. These people are those who are
constantly in the search of new and improved products in the Smartphone industry. The targeted
customers are people who like to be associated with luxury brand and are a part of a band wagon.
The mobile is going to show off the class and the taste of the person along with the fact that he or
she is technically advanced than anyone else. These people may be located at any place in the
world as the company will ship the products to the person via Amazon. The target market also
includes people who are attracted towards good looking and fashionable items as it is a brilliant
fashion accessory as well, the state of the art design of the product will enhance the status of any
person who is caring the device (Toro-Jarrínet al. 2016).
Value Proposition: The key activities of the company are focused in its unique design and high
end technology that is used to manufacture that design. The display of the phone is going to be
transparent which means that the person who is using it will be able to see the through the glass,
the company along with Corning Incorporated has created a gorilla glass which will ensure that
the device is sturdy and durable even through it looks fancy and delicate. The glass will be
bordered by a panel which is going to have the circuits and battery of the phone. The looks is not
only what the device will have it will run on latest android version along with heavy duty battery.
The device does not come with only the aesthetic appeal it is also a ergonomic and useful device.
Every Smartphone company promises to deliver balance in between the aesthetic appeal and the
user utility but what sets this phone apart is the stark difference in its look. It is unlike any
mobile in the market as far as look is concerned (Joyce and Paquin 2016).

9ENTREPRENEURSHIP
The idea is to promote the glamour and the fashion quotient as the unique selling
proposition because the transparent design is itself is a proof of the technology that is used. It
will be luxurious and grand.
Channels: The mobile will be exclusively launched and available in the Amazon platform only.
The availability of the mobile will be lesser at the begging in order to create buzz and have a
niche market established. For the first few months the mobile will be available in Australia then
US and then in the European and Asian market. Distribution of the product at the right time and
in the right place is one of the most important decisions a company needs to decide. Distributing
the product through an online e-commerce site is both a saving and also a tactics of being
exclusive as the number of units will be limited and still the site will show the product and flash
out of stock which will create demand and buzz around the target market. The company will
launch its official retail stores but until then Amazon will be the exclusive distribution partner of
the venture (Muhtaroglu et al. 2013).
For marketing and promotion the company will leave no stone unturned as the marketing
is significant to communicate to the target audience why do they need a new phone, what is
unique about it, what will it say about the personality of a person using the mobile and how can
this mobile phone be useful for the target market. Starting from traditional advertising medium
like television, radio, news paper, magazine will be incorporated in the venture along with a
massive digital marketing campaign which will only focus on creating the brand and adding the
glamour and fashion touch. Next is public relation, the company will be engaged in a lot of
public relation activities where it will give opportunity for the target market to use the mobile
and compare it with some of the best devices that are available in the market (Vargas et al.
2015).

10ENTREPRENEURSHIP
Customer Relationships: Customer service is crucial for a mobile device company a
technological product will be bought by the people only if they think that in case there is a
problem there will be a support or a solution immediately. The company is niche and the
products will be limited initially the service that will be available for the customers will be in
partnership with a third party whose office is present in the countries that the product is available
(Zolnowski 2016).
Key Activities: In order to highlight the looks and the glamour quotient of the mobile the
company can launch a press conference and launch event to bring the look of the device up front.
Usually Apple and Samsung have a seminar which is like a lecture but this is going to be
different it will be more like a fashion show (Muhtaroglu et al. 2013).
Key Resources: The technology and the design of the mobile device itself is the main asset that
the company owns, the design and the technology that is used by the company in order to
manufacture the phone will be patented and hence the uniqueness of the device will be restored.
The owner of the company handpicked the people in the research and development sector as they
regard that this department to be the backbone of the company and hence they are also one of the
main
Key Partners: The company has to focus on building a phone that is full proof, strong and
durable in order to keep up to its promises. and Amazon are the two important suppliers and
distributors of the company the glass that is going to be featured in the phone is a special type of
gorilla glass that the company will supply to the organization on order to manufacture the phone
and this will be a point of highlight as well. Aforementioned that Amazon will be initially the
only platform where the phone is going to be available for the customers. Amazon is

11ENTREPRENEURSHIP
multinational e-commerce site that specialized in electronics and technology and hence this
partnership is meaningful for a technology company (Joyce and Paquin 2016).
Cost structure: There are several expanses of the company starting from manufacturing to
supply
Expenditure Amount in A $ (million )
Administration 0.5
Research and
development
9.5
Marketing 15
Manufacturing 25
Total amount 50
Figure: Cost structure
Source: Author’s creation

12ENTREPRENEURSHIP
Revenue Structure: the company is expected to earn revenue from the sales of the phone. Here
is the listed expected revenue structure. Each unit is priced at AUD 1,800 (Toro-Jarrín et al.
2016).
2018 2019 2020 2021
0
20
40
60
80
100
120
140
Revenue in AUD in million
Revenue in AUD in million
Figure: Expected Revenue Structure
Source: Author’s Creation

13ENTREPRENEURSHIP
Feasibility analysis
A feasibility analysis is essential for a new product and business developments it will
give an insight about the prospects of the business idea. It focuses on how successfully a project
can be completed based on the factors like economic, technological, legal and scheduling. Higher
officials of an organization employ the feasibility analysis to determine potential positive and
negative result of an idea before investing a considerable amount of time and money into it.
Feasibility analysis provides business organization to understand analyze and plan all of the
important and necessary particulars to make a business idea successful. It also gives the company
an idea to identify almost all business related challenges that the company can face it also helps
the company develop a solution to the problem. It helps the company development of marketing
strategies that convince investors or a bank that investing in the business is a wise choice. In this
case, the stages of feasibility are Market feasibility, Technical feasibility, organizational
feasibility, and financial feasibility (Martin et al. 2013).
Market feasibility: The mobile device industry is booming with technological advances,
increase disposable income of the target market and the rise in the demand for high end edgy
products. People are in a constant search of Smartphone that are out doing the rest and the best
that is available. The competition in the mobile phone market is huge and vast. Most companies
in this industry are multinational are have a global customer base. The competition in this sector
is both internal and external. On the other hand, there is always a demand for high end and
innovative creations in the mobile device industry. If the company can market the product in a
tactful strategic manner the prospects of the product is high (Rauchand Hulsink2015).
Technical feasibility: The product will be available in the market in the middle of 2018 the date
of release is yet to be fixed. The mobile phone is a high tech and high end device that will

14ENTREPRENEURSHIP
include all premium quality materials in order to meet the promises made by the company. The
technology was in a prototype for a long time. It has been tested by the company officials for a
long time and only then it is being launched to manufacture in a large scale for mass
consumption. The company focuses the growth and expansion on the research and development
team as it encourages innovations and aims in creating products which is both ergonomically
designed and technologically advanced. The company has 1000 employees including the
administration, management, research and development as well as the manufacturing unit. It is a
considerably small set up hence the units of product that will be manufactured and will be
available for mass consumption will be lower and will only be exclusively available in Amazon
Australia (Spieth et al. 2014).
Financial Feasibility: The owner of the company has been on the quest to search for reliable and
strong investors in the market for more than five years. The amount that is invested in the
endeavor is close to 50 million dollar. The owners of the company have their own contribution
along with the investors who are interested in the endeavor. The organization has partnered with
Amazon in order to provide platform and distribute the product. The mobile will be marketed as
a high end luxury item and the price point will also be high owing to the fact that a technology
used and the raw materials are unlike any other mobile in the market. A great deal of money is
being channelized in the marketing of the product into various medium (Fritscher and Pigneur
2014).
Organizational feasibility: The structure of the organization is an important factor for any
business as it ensures that the daily operations of the business proceeds in a smooth way. The
organization has three main departments firstly the administration, the marketing department and
the research and development team which is also the IT team. The company is in form of a

15ENTREPRENEURSHIP
corporation it is a legal entity that will be the name associated in any businesses that the
company will undertake. Hence, the organization is a separate entity and identity from the person
who are responsible for handling the responsibilities of the organization. Personal liability of the
owners are absent in this form of business structure. As the founders of the organization have
background experience of technology and mobile manufacturing it is only fitting for the
company and the product development of the company. The in depth understanding of the
owners of the endeavor is going to support the product launch as any mistakes and issues will be
immediately solved or a solution can be identified (Ye 2015).
Conclusion
Mobile device design has changed and evolved drastically in the past two decades, the
rise and fall of Nokia is one of the biggest examples of how mobile device companies can reach
and achieve a height and also fall when there is a lack of open minded and lack of acceptance of
change within the organization. This new transparent mobile is going to be the pioneer of change
in the mobile device industry and hence the owners are looking forward and are also working
towards innovation and improvement.

16ENTREPRENEURSHIP
Reference list:
Dudin, M.N., Kucuri, G.N., Fedorova, I.J.E., Dzusova, S.S. and Namitulina, A.Z., 2015. The
innovative business model canvas in the system of effective budgeting.
Fritscher, B. and Pigneur, Y., 2014, July. Visualizing business model evolution with the business
model canvas: Concept and tool. In Business Informatics (CBI), 2014 IEEE 16th Conference
on (Vol. 1, pp. 151-158). IEEE.
Joyce, A. and Paquin, R.L., 2016. The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, pp.1474-1486.
Kassean, H., Vanevenhoven, J., Liguori, E. and Winkel, D.E., 2015. Entrepreneurship education:
a need for reflection, real-world experience and action. International Journal of Entrepreneurial
Behavior & Research, 21(5), pp.690-708.
Kiel, I.H., 2014. Entrepreneurial marketing.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in
entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business
Venturing, 28(2), pp.211-224.
Muhtaroglu, F.C.P., Demir, S., Obali, M. and Girgin, C., 2013, October. Business model canvas
perspective on big data applications. In Big Data, 2013 IEEE International Conference on(pp.
32-37). IEEE.

17ENTREPRENEURSHIP
Rauch, A. and Hulsink, W., 2015. Putting entrepreneurship education where the intention to act
lies: An investigation into the impact of entrepreneurship education on entrepreneurial
behavior. Academy of management learning & education, 14(2), pp.187-204.
Spieth, P., Schneckenberg, D. and Ricart, J.E., 2014. Business model innovation–state of the art
and future challenges for the field. R&D Management, 44(3), pp.237-247.
Toro-Jarrín, M.A., Ponce-Jaramillo, I.E. and Güemes-Castorena, D., 2016. Methodology for the
of building process integration of Business Model Canvas and Technological
Roadmap. Technological Forecasting and Social Change, 110, pp.213-225.
Toro-Jarrín, M.A., Ponce-Jaramillo, I.E. and Güemes-Castorena, D., 2016. Methodology for the
of building process integration of Business Model Canvas and Technological
Roadmap. Technological Forecasting and Social Change, 110, pp.213-225.
Vargas, I.S., Calva, A.L.G. and Camacho, J.H., 2015. Business model canvas. Ciencias Huasteca
Boletín Científico de la Escuela Superior de Huejutla, 3(5).
Ye, C., 2015. Feasibility analysis of e-textbook and e-reader adoption at a business school:
Perspective from information systems students. Academy of Educational Leadership
Journal, 19(3), p.345.
Zolnowski, A., Weiß, C. and Bohmann, T., 2014, January. Representing Service Business
Models with the Service Business Model Canvas--The Case of a Mobile Payment Service in the
Retail Industry. In system sciences (HICSS), 2014 47th Hawaii International Conference on (pp.
718-727). IEEE.