Analysis of Persollo Company's Business Canvas Model

This report provides an analysis of the nine building blocks of Persollo Company's business canvas model and explores the interrelationships between them. It also discusses downside risks and suggests business model changes to improve competitiveness.

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Executive Summary
The report has thrown light on the overall analysis of the nine building blocks of the business
canvas model of the Persollo Company which is based in Australia. Moreover, the
interrelationship between the nine building blocks have been analyzed and identified that helped
in gaining competitive advantage in comparison to the other competitors present in the market.
Furthermore, there are different downside risks which can be improved with the help of the
business model changes that can help in gaining competitiveness which are as follows:
 Inclusion of the flexibility in the business operations which will be helpful for the
business to become more successful in their operations
 Moreover, there can be inclusion of different other segmentation of customers which will
increase the overall profitability of the business

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Table of Contents
I. Introduction..................................................................................................................................3
II. Business model........................................................................................................................3
A. Building blocks.......................................................................................................................3
1. Customer segments..............................................................................................................4
2. Key partners.........................................................................................................................4
3. Value proposition.................................................................................................................4
4. Key activities.......................................................................................................................5
5. Channels..............................................................................................................................5
6. Revenue streams..................................................................................................................5
7. Cost structure.......................................................................................................................5
8. Key resources.......................................................................................................................6
9. Customer relationships........................................................................................................6
B. Interrelationships.....................................................................................................................6
C. Critical success factors............................................................................................................7
D. Downside risks........................................................................................................................8
E. Business model changes..........................................................................................................8
III. Conclusion.................................................................................................................................8
IV. Recommendations.....................................................................................................................9
References......................................................................................................................................10

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Appendix 1- Table 1- Business Canvas Model of Persollo Company..........................................13
Appendix 2- Table 2- Aspects of Persollo Company....................................................................14

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I. Introduction
Persollo Company is the one which helps in providing the various tools for the various
brands, agencies along with the influencers which assists them in selling the different products
on social media wherein there is no such requirement of the different expensive sites of the e-
commerce (Persollo.com, 2019). Moreover, the company was found in the year 2015 wherein
more than twenty employees are employed in the organization which have their presence in more
than twelve countries and assisted more than five hundred boutiques through proper increase in
the overall conversation in the mobile up to 300%. Lastly, the company has been able to provide
a proper platform for the different kinds of agencies as well as the other influencers to sell and
showcase the different sell of the different products as well as services through advertising them.
II. Business model
The business of Persollo is related to the instant sales along with leads on the social
media websites as well as influencers and it is helpful in providing the tools for the different
agencies who wants to start their business in such a manner.
A. Building blocks
The nine building blocks of the respective organization includes the different activities
which relates to the different key partners, key activities along with the value propositions of the
company. The most appropriate aspects of the value proposition of the company is to provide the
high quality services to the different influencers which will play a major role in improving the
business operations.

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1. Customer segments
The major customer segments of the respective company include the different firms
which are big in nature such as eBay, Amazon and Flipkart. The major sellers are the strong
customer bases which are having huge presence of business in the entire world (Baldassarre et
al., 2017).
2. Key partners
The different kinds of ecommerce applications as well as the local business as well as
organizations are the different kinds of partners who are involved in managing the different
business operations of Persollo successfully (Bocken et al., 2016). There is proper involvement
of the different suppliers along with the developers who will be helping in managing the
application in an appropriate manner.
3. Value proposition
The value propositions of the company is inclusive of providing the different kinds of
products and services to the different customers at one single click which makes them more
convenient options among the public (Bolton & Hannon, 2016). Moreover, the strategy related to
pricing is flexible which plays a major role in managing the different operations of the company
appropriately. The large availability of options play a major role in managing their preferences
accordingly (Chrisman et al., 2015).
4. Key activities
The key activities which are included in the Persollo company includes the designing as
well as production along with merchandising which will be beneficial for the overall growth of

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the company (Dangelico, 2016). The major aspect of Persollo is to properly develop a streamline
of the business activities which will be helpful for them to run effectively.
5. Channels
The other major retailers along with the mobile applications are the major channels which
are used by the respective organization to connect with the customers and gain more competitive
advantage in comparison to the other competitors present in the market (Dangelico, Pujari &
Pontrandolfo, 2017).
6. Revenue streams
There is inclusion of commission on sales which helps the company in increasing their
sales and revenues appropriately. Moreover, $0.25 is being charged for the different items which
is listed on the official website of the organization and there is more than 4.5% increase in the
total sales revenue of the company (de Vasconcelos Gomes et al., 2018).
7. Cost structure
There is inclusion of more than 30% of the designers as well as the installation workers
who are helpful for making the business more efficient and effective in nature (Dodgson, 2018).
Moreover, 14% is e-commerce management as well as online marketing which will be inclusive
of the different employees as it will be beneficial for the growth of company.
8. Key resources
The proper usage of the web application along with intellectual platform are the different
tools which are being used as the key resources as it will be beneficial in the overall growth of
the firm in comparison to the other competitors and gain more popularity (Ghezzi, Cortimiglia &
Frank, 2015).

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9. Customer relationships
There is inclusion of the automated kinds of products and services which are provided to
the customers and there is inclusion of self service option that helps the customers in becoming
more efficient in using the respective operations and it attracts more customers (Goffin &
Mitchell, 2016).
B. Interrelationships
The proper and effective kind of relationships are essential among the nine building
blocks of the company wherein the mass targeting of customers has been adopted to improve the
different business operations (Herrera, 2015). The value proposition of Persollo is the other
aspect which should be managed in an effective manner as it helps in managing the overall
growth of the company. The company mainly focuses on the qualitative approach of selling the
different goods and services which leads to proper efficiency and profitability of the business.
The key channels of the respective company helps them in delivering the proper value to
the customers present in the market which will be one of the major factors to be considered in
order to improve their business operations (Nagy, Schuessler & Dubinsky, 2016). Furthermore,
the revenue streams includes the more increase in commission of the organization and it will be
gaining profitability in the market as well. Lastly, the cost streams of the company include
installation of the different services along with appointment of the designers that help in
managing the business operations successfully.

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C. Critical success factors
There are various critical success factors which can be considered by Persollo Company
to gain profitability and it will be helpful in improving the different business related operations
in a positive manner as well.
The respective company requires to analyze the different kinds of requirements of the
various kinds of brands which will be beneficial in making the changes in an appropriate manner.
Due to the same, it will be helpful for the organization to analyze the overall importance of the
technological disruption as well as innovation to gain competitive advantage (Pedersen, Gwozdz
& Hvass, 2018).
There are various frameworks which are being utilized by the company as to examine the
various elements that will be beneficial for the company in achieving the long term goals and
gain competitiveness in comparison to the other competitors present in the market (Souto, 2015).
Moreover, Persollo organization needs to introduce the one step check out system which
will be beneficial in gaining more competitiveness and the key resources are required to be
utilized appropriately which will be helpful for improving the business operations and there can
be inclusion of bonus which will be offered to the customers when they will be first starting to
use the application and gain more knowledge on the business operations (Taneja, Pryor &
Hayek, 2016).
D. Downside risks
Downside risk is the estimation of the various potentialities of the security in which the
different organizations may suffer from the negative and decline aspects which will be affecting
the overall revenue as well as the sales of the company in a negative manner as well (Van Der

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Pijl, Lokitz & Solomon, 2016). In such scenario, Persollo Company requires to analyze the
respective conditions which will be performing the various operations to overcome the respective
aspects in a positive manner.
There can be issues related to safety as well as the issues related to compliance which can
affect the trust factor among the customers. In such scenario, the company needs to apply the
diversification strategy which will be helpful in improving the business operations (Velu, 2015).
E. Business model changes
There can be inclusion of the different changes in the business model that can be helpful
in managing the operations and the risks can be reduced in an appropriate manner. Firstly, there
can be inclusion of optimization in the technological aspects which will b beneficial in
improving as well as optimizing the conversations appropriately (Wonglimpiyarat, 2016).
Moreover, the flexibility is the other aspect which can be adopted by the company as it will be
helpful in making the business more approachable by the different customers. Lastly, there can
be introduction of the new segments as it will be beneficial in performing better.
III. Conclusion
Therefore, it can be concluded that the business canvas model of the Persollo company
has been analyzed wherein the nine building blocks have been introduced along with the
interrelationships between them. Moreover, there are different kinds of risks which can be
improved by the company through proper introduction of the different kinds of business model
changes that will bring more effectiveness in the business operations.

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IV. Recommendations
Therefore, it can be recommended that there are different aspects which are required to
be improved in order to bring effectiveness in the operations such as:
 There can be inclusion of flexibility in the operations related to the business which helps
in providing effectiveness in the business in the near future (Akter et al., 2016)
 Proper introduction of few more segments in the market can be helpful for them in
introducing more options for the different groups of people effectively

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References
Akter, S., Wamba, S. F., Gunasekaran, A., Dubey, R., & Childe, S. J. (2016). How to improve
firm performance using big data analytics capability and business strategy
alignment?. International Journal of Production Economics, 182, 113-131.
Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Bridging sustainable
business model innovation and user-driven innovation: A process for sustainable value
proposition design. Journal of Cleaner Production, 147, 175-186.
Bocken, N. M., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), 308-320.
Bolton, R., & Hannon, M. (2016). Governing sustainability transitions through business model
innovation: Towards a systems understanding. Research policy, 45(9), 1731-1742.
Chrisman, J. J., Chua, J. H., De Massis, A., Frattini, F., & Wright, M. (2015). The ability and
willingness paradox in family firm innovation. Journal of Product Innovation
Management, 32(3), 310-318.
Dangelico, R. M. (2016). Green product innovation: where we are and where we are
going. Business Strategy and the Environment, 25(8), 560-576.
Dangelico, R. M., Pujari, D., & Pontrandolfo, P. (2017). Green product innovation in
manufacturing firms: A sustainability‐oriented dynamic capability perspective. Business
Strategy and the Environment, 26(4), 490-506.

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de Vasconcelos Gomes, L. A., Facin, A. L. F., Salerno, M. S., & Ikenami, R. K. (2018).
Unpacking the innovation ecosystem construct: Evolution, gaps and
trends. Technological Forecasting and Social Change, 136, 30-48.
Dodgson, M. (2018). Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Ghezzi, A., Cortimiglia, M. N., & Frank, A. G. (2015). Strategy and business model design in
dynamic telecommunications industries: A study on Italian mobile network
operators. Technological Forecasting and Social Change, 90, 346-354.
Goffin, K., & Mitchell, R. (2016). Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate social
innovation. Journal of Business Research, 68(7), 1468-1474.
Nagy, D., Schuessler, J., & Dubinsky, A. (2016). Defining and identifying disruptive
innovations. Industrial Marketing Management, 57, 119-126.
Pedersen, E. R. G., Gwozdz, W., & Hvass, K. K. (2018). Exploring the relationship between
business model innovation, corporate sustainability, and organisational values within the
fashion industry. Journal of Business Ethics, 149(2), 267-284.
Persollo. (2018). Persollo.com (online) https://persollo.com/ [Retrieved 6th April 2019]
Souto, J. E. (2015). Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 51, 142-155.

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Taneja, S., Pryor, M. G., & Hayek, M. (2016). Leaping innovation barriers to small business
longevity. Journal of Business Strategy, 37(3), 44-51.
Van Der Pijl, P., Lokitz, J., & Solomon, L. K. (2016). Design a better business: New tools, skills,
and mindset for strategy and innovation. John Wiley & Sons.
Velu, C. (2015). Business model innovation and third-party alliance on the survival of new
firms. Technovation, 35, 1-11.
Wonglimpiyarat, J. (2016). The innovation incubator, university business incubator and
technology transfer strategy: The case of Thailand. Technology in Society, 46, 18-27.

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Appendix 1- Table 1- Business Canvas Model of Persollo Company
Key Partner
Various types of the
different apps
related to e-
commerce
Proper inclusion of
the various
developers as well
as the third party
Various suppliers
present in the
market
Key Activities
Proper
designing
along with
production
Proper
development
along with
inclusion to
streamline the
different
activities of
the company
Value
Proposition
The inclusion
of the high
and effective
quality
products as
well as
services
within a single
click
The strategy
of pricing is
flexible
Customer
Relationships
The
automation of
the different
kinds of
products as
well as
services are
essential
Inclusion of
the self
service check
out will be
beneficial in
attracting the
customers
Customer Segments
Sellers
The different kinds
of big online firms
such as Flipkart and
Amazon
The customer base
is present globally
Key
Resources
Proper
development
Channels
Retailers as
well as the
different web

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of the
different web
applications
channels
Cost Structure
 There is inclusion of the costs of the
installation of the different workers as
well as the designers present in the
market
 There can be inclusion of the more than
14% of the management of the e-
commerce which will be included of the
different employees
Revenue Streams
 Inclusion of commission present on the
sales
 There can be increase of 4.5% of the
overall revenues and sales in the market
There are commissions on sales
(Source: Created by Author)

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Appendix 2- Table 2- Aspects of Persollo Company
(Source: Persollo.com, 2019)