Business Models and Strategic Planning for Mad Paws

The report discusses a business model plan for Mad Paws, a Sydney based pet care service provider. It includes a SWOT analysis, business model canvas, value proposition, customer segment, channels, customer relationship, key activities, key resources, key partners, cost structure, and revenue stream.

Running head: BUSINESS MODELS AND STRATEGIC PLANNING
Business models and strategic planning
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Executive summary
The subsequent report discusses a business model plan that shall help in establishing an
efficient operations 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 is discussed in order to
consider the distinctive factors that may help in accelerating the success rate of the company.

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Table of Contents
Introduction................................................................................................................................3
Company overview....................................................................................................................4
Strategic issues.......................................................................................................................4
Business model canvas...............................................................................................................5
Value proposition...................................................................................................................5
Customer segment..................................................................................................................6
Channels.................................................................................................................................6
Customer relationship............................................................................................................7
Key activities..........................................................................................................................7
Key resources.........................................................................................................................8
Key partners...........................................................................................................................9
Cost structure.........................................................................................................................9
Revenue stream....................................................................................................................10
Business pattern.......................................................................................................................11
SWOT analysis.........................................................................................................................11
Value proposition canvas.........................................................................................................12
Four action framework.............................................................................................................13
Recommendations....................................................................................................................14
Conclusion................................................................................................................................14
References................................................................................................................................15

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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 (Dudin et al 2015). The

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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
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 (Madpaws.com.au 2018). 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 have 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
(Madpaws.com.au 2018). 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.

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 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 quality 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
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.

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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.
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 & 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
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.

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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 (Kuo & Feng 2013).
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 (Okazaki & Taylor 2013).
 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,

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providing training session to all the staff members is another key activity (Elnaga &
Imran 2013).

Running head: BUSINESS MODELS AND STRATEGIC PLANNING
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP
 Veterinarians
 Pet supply retailers Social media advertising and other Value proposition statement – Connect with The company aims to establish a long-term CUSTOMER
 Pet insurance advertising and promotional events. one of our 14,481 pet sitters to love relationship with their customers along with SEGMENT
Companies Training and development programmes for your pet when you are not around. providing a dedicated assistance. Basically
customers
enhancing skills of employees. Product/Services – Searching suitable that are new pet
Conducting background check of pet sitters pet sitters, providing pet homes, pet owners and customers
day care services and many more. ranging from age
KEY RESOURCES Target market – Pet owners and group 20 to 45.
Skilled staff members. specifically pet owners that travel. CHANNELS
Platform development. Unique factor of value proposition – Official website of Mad Paws.
Short term loan. Cages and kennels are not used by Mobile apps.
Madpaws in order to provide shelter for
the pets.

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COST STRUCTURE – Value driven cost structure REVENUE STREAM – Customers are the key revenue generators.

Running head: BUSINESS MODELS AND STRATEGIC PLANNING
 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 (Porter & Heppelmann 2015). 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

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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 (Realinsurance.com.au
2018). The insurance could cover the risks that may occur.
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 –

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Financial assumptions of Mad Paws
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.

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Cash flow of Mad Paws
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 (Kabir, Sadiq & Tesfamariam 2014). Whereas in customer relationship management
customer satisfaction is of highest priority (Saarijärvi, Karjaluoto & Kuusela 2013). Both the
entities are given much focus in Mad Paws business since providing and maintaining valued
customer service is of highest priority.

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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.
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.
SWOT analysis of Mad Paws

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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
(Sheehan & Bruni-Bossio 2015). 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 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.
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.

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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.
Value curve
Economical Demand Ability to earn Availability
0
1
2
3
4
5
6
Blue Ocean Value Curve
Current services of Mad Paws Pet Healthcare
Bird sitting services Premium services
Value curve of Mad Paws
The above value curve shows the four factors that need to be analysed in order to
make the company profitable. The current services of Mad Paws indicated by the blue line
shows that the company needs to continue raising the services since its demand and ability to
earn is high. Whereas the service of bird sitting can be observed that have low demand and
economic strength therefore, it must be eliminated. On the other hand, the demand of
premium services is high, however, the ability to earn from it is low. Therefore, the company
must reduce its premium services to customers that are willing to pay for it instead of

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providing premium services to everyone. Lastly, the demand for pet health care services is
high however, the company have no such services available therefore, Mad Paws must create
a pet health care service in order to earn profits.
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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