Kogan Business Model: Strategies for Cost Reduction and Customer Segmentation

Running head: KOGAN BUSINESS MODEL
Kogan Business Model
Name
Institutional Affiliations

KOGAN BUSINESS MODEL 2
TABLE OF CONTENT
Table of content.........................................................................................................................2
List of tables...............................................................................................3
Introduction................................................................................................4
Business model.............................................................................................4
Building blocks.............................................................................................5
1. Customer segmentations.......................................................................5
2. Key partners......................................................................................5
3. Value proportion................................................................................5
4. Main activities...................................................................................6
5. Channels..........................................................................................6
6. Cost structure.....................................................................................6
7. Key resources.....................................................................................6
8. Revenue stream..................................................................................7
9. Customer relations...............................................................................7
Interrelationships.....................................................................................................................8
Critical factors to success................................................................................8
Downside risks...........................................................................................8
Changing in business model.............................................................................8
Recommendations.......................................................................................9
Conclusion................................................................................................9
References................................................................................................11

KOGAN BUSINESS MODEL 3
LIST OF FIGURES
Revenue stream 2015-2016..............................................................................7
Kogan canvas business model...........................................................................10

KOGAN BUSINESS MODEL 4
KOGAN BUSINESS MODEL
Introduction
Kogan Company is an online selling business in Australia. The company sells a variety of
electronic products and other electronic-based services. The company deals with offering
different services including Kogan mobile, internet, insurance, travel deals and Kogan
marketplace. The company’s objective is to make their products and services more accessible
and affordable. The company offers the leading products in its marketplaces and the retail. This
product includes home wares, hardware, toys, electronics, and others. The company also
provides valuable internet plans and unbelievable travel plans for the people in the country.
Business model
The company’s business model provides for the reduction of costs so that they can be
able to maintain their customers. The company has been trying as hard as possible to come up
with strategies to be able to cut the prices of their commodities to be able to meet the demands of
their customers (Alles et al, 2018). Therefore, the company has applied different incentives in
their effort to cut the cost of the commodities. For instance, the company uses plain items for
packaging which enables them to save 10$ in one package. They also avoid paper costs by
offering their user manual online. In addition, the company uses a feature called smart ship
which allows commodities to be packed together in order to reduce the shipping cost. Live price
is also another strategy used by the company to be able to reduce the prices for the customers.
This is where the company allows consumers to buy commodities before full production.
Therefore, the company is able to cut the cost of all the tags used in the selling of the
commodities after full production (Giacosa, 2018).