Nura Headphones: The Business Model Canvas

This report analyzes the business model canvas of Nura headphones, including its value proposition, customer segments, key activities, revenue streams, and more.

Running head: NURA HEADPHONES: THE BUSINESS MODAL CANVAS
NURA HEADPHONES: THE BUSINESS MODAL CANVAS
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1NURA HEADPHONES: THE BUSINESS MODAL CANVAS
Executive Summary
This report is based on the analysis of the business model canvas of Nura headphone. The
organization manufactures and provides headphones and accessories. The main of the
organization is to provide an advanced way of listening experiences that differentiates it from
other headphones. The report includes the critical relationships among the different features of
the business canvas model and the factors related to the organization’s success. Risk analysis of
the organization is also included along with some suggestions for improvement of the business
model.

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

3NURA HEADPHONES: THE BUSINESS MODAL CANVAS
Appendix........................................................................................................................................12

4NURA HEADPHONES: THE BUSINESS MODAL CANVAS
Introduction
Nura, a private consumer Electronics Company was founded in the year 2015. Its
headquarter is in Melbourne, Australia. The company was founded by a team of experts in the
field of engineering, biology, acoustics and hearing science. Luke Campbell, Dragan Petrovic
and Kyle Slater are the principal peoples of this company (Nuraphone.com, 2019). It
manufactures and designs headphones that monitors the otoacoustic emissions from the ear of
different frequencies and then adjust the sound waves. In the Nura headphone, a unique sound
wave technology is integrated that automatically measure the hearing and adapts it. The company
on its launch year had attracted a fund of US $1.8 million by its advertising campaign. Later it
announced that it had raised the funding to more than $8.5 million. Nura’s latest funding is
reported to be around $21 million and had accumulated total financing of $28.2 million. In the
year 2018 (Nura Funding Rounds | Craft.co, 2019).
Business model
Nura is considered as the pioneer of a disruptive space in the audio and headphones
market. It has a specific objective that revolutionises people behavior towards listening to music.
Nura aims to offer an advanced way of listening experiences that differentiates it from other
headphones.
A. Building blocks
The business model of Nura is presented using nine building block framework of
Osterwalder & Pigneur. (See Appendix 1)

5NURA HEADPHONES: THE BUSINESS MODAL CANVAS
1. Value proposition
The vision of this company is to achieve perfection in providing excellent quality sound
for each at any place. It aims at creating a productive team in this company that offers superior
services for the customer based on their sense of hearing. It focuses on providing customer
satisfaction and technology related services at a higher level (Breuer & Freund, 2017).
2. Customer segments
The target market of Nura is every individual. It provides the general population with the
headphones that automatically measures the otoacoustic sound wave frequencies and adapt it.
This product is aimed to target the upscale consumers, both men and women of every age. It
targets the early adopters, young professionals, corporate workers and professionals
3. Key activities
The principal activities of this company are to provide a valuable platform with
technological innovation support. It has increased the tie-ups with other organization that
provided Nura with the funds to develop and launch the headphone. It has promoted its company
through its website by performing several promotional activities. It also focuses on providing the
users, their preferred hearing experiences that can be customised according to their requirements.
4. Revenue streams
In 2018, Nura recognised approximately a total funding of 28.2 million USD and its latest
funding size is 21 million USD (Craft.co, 2018). The different investors that support Nura with
the financings are Hax, Qualgro VC, Airtree Ventures, SOSV, Rick Salmon and Blackbird
Ventures (Swan, 2016).

6NURA HEADPHONES: THE BUSINESS MODAL CANVAS
5. Cost structure
The cost structure includes the expenses incurred information of the Nura headphones. It
consists of the costs incurred for research and development. The cost incurred for the
administration of the sale outlets and the shipping of the products ordered online. The cost also
includes the payment of government taxes.
6. Key partners
The principal partners of the Nura headphones are the active and passionate team that
loves music. The technology providers and the enthusiastic, creative, scientific engineers group
that form the management team of this company.
7. Key resources
Nura's vital resources are its products and its accessories, its manufacturing facilities, its
point of sale and distribution networks. The passionate and capable management team of Nura is
also an essential resource. Another critical component is the availability of advanced
technologies, designed in the app to customize the sound's clarity.
8. Customer relationships
The communication with the customers is done with the help of the social media
channels. The advertising of electronic products is done with different mediums like media,
events, etc. The relationship is also created by taking the feedback services given on the
company's website. The products can also be purchased from the authorised retail outlet where
customers are treated with high respect. The products of Nura can be bought online without the
interaction of the company personnel.

7NURA HEADPHONES: THE BUSINESS MODAL CANVAS
B. Interrelationships
The nine building blocks are in the business model of Nura headphones are interlinked. The
company provide services to its customers with the help of different vital partners. Improvement
in services and customer satisfaction contributes to the success of the company. The Nura
organises some promotional activities that will help in increasing the customer base. The
passionate team members of Nura is responsible for the research and development of advanced
technology products. Providing excellent facilities and customer satisfaction according to their
needs is the proposed value of the organization (Lewandowski, 2016).
The innovation in technology and advance research has helped Nura headphones making its
product unique. Nura headphones is easily distinguished from other products. The company use its
website for the promotion purposes and the expenses incurred is very less. The revenues of the
electronic products and its accessories are generated from the funding by the different investors.
The costs structure is related to the expenses incurred on various expenditures for research and
development. It also includes the administration cost for the proper management of the retail
outlets Joyce & Paquin, 2016).
C. Critical success factors
Customer satisfaction is conserved as an essential element in the successful development
of Nura products. Providing a consistent service helps Nura in acquiring a profitable position in
the electronics industry. The team at Nura are ambitious, creative, engineers and music lovers.
Hence, they aim at providing sound clarity that gives the extraordinary experience to the users.
The working environment is positive inside the company. The customer plays a vital role in
defining the acheivement of this company along with the sales and the satisfaction levels (Taran
et al., 2015).

8NURA HEADPHONES: THE BUSINESS MODAL CANVAS
Another factor that contributes to success is the company’s founder and its attitude
towards working. The company’s success has not stopped the founder from further,
technological advancement of its product. The app developed provides after-sale services and
gives free lifetime support to the customer. The app offers 24/7 customer support that helps in
retaining customers. High skilled marketing team have assisted in creating a vast client base for
the company. A personalised profile is provided to every user for special care of the individual
needs. Nura headphones are designed in a way to cater to every single user’s needs (Ross, 2016).
As a result, Nura headphones create competition in the market concerning other organization.
D. Downside risks
In the last five years span, Nura raises 15 million USD through the first production to
capitalise on the demand. Blackbird Ventures, one of the investors of Nura has funded the
company with 6 million USD last year (Castles, 2018).
In the year, 2016, Nura’s team of three members were ready with the prototype concept
of the headphone, but they were a lack in the funding. The money was a big concern for the
project. The actual financing was different from the estimated one. The actual funding came
from the Hax Accelerator and the Melbourne Accelerator Program (Swan, 2016). The fund
amount was not enough for the mass production of the company to produces a high-end finished
product. The team struggled to get the funding, as they did not have any proven product that fits
the market. They raised the funding amount through Australian crowdfunding to start an Aussie
Kick starter project of 1.8 million USD in the mid of 2016. Other investors that expected a return
are Ventures of Sean Parkers Strange loop, New Jersey’s SOS and pan-Asian Qualgro
Investments (Powell, 2018).

9NURA HEADPHONES: THE BUSINESS MODAL CANVAS
E. Business model changes
For a better understanding of the buyer’s behaviour, one needs to observe the buyer’s
precisely and understand their needs. Nura's success depends upon the effort of the team
members to design the high-end headphones and its mass production. The uniqueness lies in the
product that proves it a commercially successful one. The investors were attracted by the idea of
producing the product and were ready to fund the product. Even the effort of the team for
crowdfunding to start the Aussie Kick starter campaign was a challenging one. This crowd-
funding campaign was considered the most successful in Australian history (Gambino, 2019).
Conclusion
The analysis of the company is based on publicly available information. Nura completed
almost five years in the business. Nura headphones is a high-end technology and are highly
adaptive. It is new in the market and has launched only one campaign that is Aussie Kick starter
Series A. This crowdfunding has proved to be the successful one as there is a continuous
increase in its demand.
Recommendations
Few suggestions required for the proper functioning of the Nura headphones are as
follows:
1. Increase the partnership of the company to expand the customer base.
2. Improve customer relations with the clients by maintaining personal email
communication.
3. Improve its distribution channels and expanding operations of the business.

10NURA HEADPHONES: THE BUSINESS MODAL CANVAS
4. Improve the value propositions to increase customer satisfaction and high quality of
service.

11NURA HEADPHONES: THE BUSINESS MODAL CANVAS
References:
Breuer, H., & Lüdeke-Freund, F. (2017). Values-based network and business model innovation.
International Journal of Innovation Management, 21(03), 1750028.
Castles, A. (2018). Headphones startup Nura raises $21 million in oversubscribed Series A to
develop new products and expand globally - Smart Company. Retrieved from
https://www.smartcompany.com.au/startupsmart/news/nura-headphones-raises-21-
million/
Craft.co. (2018). Nura stock price, revenue, funding rounds, financials and metrics. Retrieved
from https://craft.co/nura/metrics
Gambino, M. (2019). An Aussie start-up has made the best headphones you can buy. Retrieved
from http://www.executivestyle.com.au/aussie-brand-nura-have-made-the-best-
headphones-you-can-buy-h1bs4q
Joyce, A., & Paquin, R. L. (2016). The triple-layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Lewandowski, M. (2016). Designing the business models for the circular economy—Towards
the conceptual framework. Sustainability, 8(1), 43.
Nura Funding Rounds | Craft.co. (2019). Nura Funding Rounds | Craft.co. Retrieved from
https://craft.co/nura/funding-rounds
Nuraphone.com. (2019). Our Team | Music in full-colour ™ | Personalized sound. Retrieved
from https://www.nuraphone.com/pages/our-team

12NURA HEADPHONES: THE BUSINESS MODAL CANVAS
Powell, D. (2018). "We're better than all of them": How Melbourne headphones startup Nura is
planning to be as big as Bose - SmartCompany. Retrieved from
https://www.smartcompany.com.au/entrepreneurs/influencers-profiles/melbourne-
headphones-startup-nura-planning-big-as-bose/?highlight=nura
Ross, A. (2016). Nura headphones listen to your ears to optimise sound. Retrieved from
https://www.theverge.com/circuitbreaker/2016/5/16/11672774/nura-headphones-over-in-
ear-listening-kickstarter-app-otoacoustic
Swan, D. (2016). Headphones that tune to your ears. Retrieved from
https://www.theaustralian.com.au/business/technology/headphones-that-tune-to-your-
ears/news-story/6df444961f14fc8d8b21a94babe929a6
Taran, Y., Nielsen, C., Thomsen, P., Montemari, M., & Paolone, F. (2015). Business Model
Process Configurations: A Mapping Tool for Fostering Innovation. In R&P Management
Conference (Vol. 11).

13NURA HEADPHONES: THE BUSINESS MODAL CANVAS
Appendix
Appendix 1- Nura Business Model Canvas
Key Partners
 The active
and
passionate
team that
loves
music.
 The
technology
providers
and the
enthusiastic
creative,
scientific
engineer’s
managemen
t team.
Key Activities
 Enhancing
the
customer’s
experience
 Promote the
company
with the tie-
ups with
different
organizations
 Improving
the app based
experience
 Providing the
users, their
preferred
hearing
experiences
that can be
customized
according to
their
requirements
Value Proposition
 Achieve
perfection in
providing
excellent
quality
sound.
 Provide the
higher-level
customer
satisfaction.
 Create a
productive
team in the
company.
 App-based
services
provided to
the
customers
Customer
Relationships
 Communica
tion is done
with the
help of
social
media
 Creating a
relationship
using the
customer’s
feedback
services.
 Advertisem
ent with the
help of
campaigns,
media,
events, etc.·
Customer
Segments
 Everyone:
the early
adopters,
young
professional
s, corporate
workers
and
professional
s
Key Resources
 The
passionate
and
ambitious
management
team
 An advanced
and unique
Channels
 Presence of
company’s
webpages.
 Advertisem
ents using
different
social

14NURA HEADPHONES: THE BUSINESS MODAL CANVAS
technological
product that
senses the
hearing
media and
TV.
 Proper
service
distribution
Cost Structure
 The expenses incurred in the formation of the Nura
headphones.
 The expenses include the expenses incurred for
research and development.
 The cost incurred for the administration of the sale
outlets and the shipping of the products ordered
online.
 The costs incurred for the development of the app.
Revenue Streams
 The funding from investors such as
Hax, Qualgro VC, Airtree Ventures,
SOSV, Rick Salmon and Blackbird
Ventures