Report | Business Model Canvas2022

Running head: BUSINESS MODEL CANVAS
Business Model Canvas
Name of the Student:
Name of the University:
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1BUSINESS MODEL CANVAS
Executive Summary
This paper has elaborated on the analysis of the business model of Iconic Fashions. The
different aspects of the firm are examined in this report for gaining a clear insight of how the
firm operates its business and with what resources. With the same, the different coordination
level among the various building blocks of business model canvas are discussed in this
report.

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Table of Contents
1. Introduction........................................................................................................................3
2. Discussion..........................................................................................................................3
2.1. Business Model...........................................................................................................3
2.1.1. Building Blocks....................................................................................................4
2.1.2. Interrelationships..................................................................................................6
2.1.3. Critical Success Factors.......................................................................................7
2.1.4. Downside Risks....................................................................................................7
2.1.5. Business Model Changes.....................................................................................7
3. Conclusion..........................................................................................................................7
4. Recommendations..............................................................................................................8
References..................................................................................................................................9
Appendices...............................................................................................................................10
Appendix 1: Business model canvas of Opera Australia.....................................................10

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1. Introduction
Development and innovation have always been the key source of gaining competitive
advantages for the business organisations as they are something that is highly required to
meet the needs, expectations and varied customer preferences with the changing time (De
Massis et al., 2015). Iconic Fashion is considered to be the best one stop shop that provide
fashion solutions to the customers. It is a well-established fashion distribution company that
is based in Amsterdam. The company distribute different fashion brands in both the North
and West European parts. The Headquarter of the company is based in Amsterdam and it take
care of the sales, warehousing communication, marketing logistics, invoicing, shipping,
collecting and credit insurance. This paper shall elaborate on assessing the business model of
Iconic Fashion in terms of the Business Model Canvas Framework.
2. Discussion
2.1. Business Model
The Business model of a company is something that describes the rationale of how it
creates, delivers and captures the value in terms of cultural, social and economic contexts. It
is the plan of a company for making business profit (Joyce & Paquin, 2015). It is to note that
Iconic Fashion is one of the most famous clothing and fashion shops in Amsterdam. It
delivers current and stylish collection of both men and women apparel and all of them are
sourced from the most coveted international and national brands. Some of the most notable
are Nine West, Lipsy, Replay, U.S. Polo Assn., Valentino etc. Below is mentioned a brief
overview of the different elements of business model canvas of the company:

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2.1.1. Building Blocks
a) Customer Segments
It is to note that the target customers of Iconic Fashion are the customers belonging from
average to above average class. There are different segments in Iconic Fashion stores like
casual wear, formal wear, and ethnic wear for men and women and for kids. It also attracts
sportsmen as there is sports segment too within the store (Chang et al., 2017). They also have
some collection of accessories that attract majority of the customer segments. Furthermore, it
is to note that the company encourages interactive service and online community. There is a
combination of self-service as well as personal customer service. Also, the company
welcomes expert feedbacks and recommendations.
b) Key Partners
The company is engaged in several partnerships. In order to promote the business and
market its products, it is engaged in partnership with the local Australian fashion magazines,
Gossip pages and also it operates several runway shows in the city. It is also engaged in
social networking sites in order to get more access to customers. Apart from these, it is in
partnership with its product sourcing companies like Nine West, Lipsy, Replay, U.S. Polo
Assn., Valentino etc. Also, one of the key partners for Iconic Fashion are the promotional
mediums like electronic and print media.
c) Value Propositions
Iconic Fashion is a powerhouse of innovation and fashion. While delivering a wide range
of clothing from different sub brands, which combine freshness and elegance, the
unparalleled choices are fashion forward and on trend. The company manages high number
of buying orders and is always up to date with the changing customer preferences
(Osterwalder et al., 2014). It offers a wide range of clothing for men, women and kids and

5BUSINESS MODEL CANVAS
apart from these, also provide accessories and shoes too. With the same, the company also
offers some attractive discounts that have enabled the firm to capture youth.
d) Key Activities
Some of the key activities of the company are providing personalised services to the
customer and capturing customer preferences. There are built behind the scenes staff for
providing one on one instant messaging and communication with the customers (Parida et al.,
2014). Apart from this, the company does its product advertisement and business promotion
for which it has a different department that take care of these operations of the company.
Also, there is delivery process of the company and not always customers need to visit stores.
e) Channels
It is to mention that formation and growth of channels of business is very important for
gaining high levels of profits from the business industry (Wirtz et al., 2015). Iconic Fashions
products and services are available through several online channels, comprising of websites
and other online marketplace sites. It is highly helping the customers to reach out to some far
areas around the world. The website of Iconic Fashions could be accessed throughout the
nation.
f) Revenue Streams
The main revenue stream of Iconic Fashion is its apparels in the market but the details
about its revenue does not have public access and this is why they cannot be accessed. Other
include, advertising (about 55 percent).
g) Cost Structure
Iconic Fashion is a privately owned company and its major cost factor is sourcing the
apparels of men and women and kids. The most important cost inherent in the business model

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of this company are its staffs. The others include marketing, technological set ups, customer
support, taxes etc.
h) Key Resources
The website of Iconic Fashion is acting as a notable shopping marketplace from where the
viewers could easily place orders on their products. With the same, the technology could also
be regarded as their key resources as the technological improvement and advancement is
helping the company in gaining a significant competitiveness in the current market (Porter &
Kramer, 2019). It is also to mention that the human resources along with their expertise and
skills are also the key resource of Iconic Fashion.
i) Customer Relationships
It is to mention that the online mediums are highly used for the management of customer
relationships. It is because of the fact that with the help of social media, customers are
involved in the process of communication and also their advices and feedbacks are given
priority. With the same, the after sale services are also helping the company in managing its
customer relationship very effectively. It is of this reason that more effective sales service
will result in more customer satisfaction level.
2.1.2. Interrelationships
The main relationship in between the above mentioned building blocks of Iconic Fashions
is in between the customer segments and the key activities of the company. How effective are
the key activities determines the extent to which the targeted segments are attracted by the
company. For instance, “the extent to which Iconic Fashions are getting positioned as the
premium brand in the market will determine the attractiveness among the premium target
segments.”

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2.1.3. Critical Success Factors
The main success of the company lies in its innovative approach and high quality
services. While delivering a wide range of clothing from different sub brands, which combine
freshness and elegance, the unparalleled choices are fashion forward and on trend (Noe et al.,
2017). The company manages high number of buying orders and is always up to date with the
changing customer preferences.
2.1.4. Downside Risks
The main risk of Iconic Fashion is its cost effective alternativeness in the market. There
are many competitors in the industry that give similar products, facilities and services and at
the same time, holds some positive brand reputation. With the same, there is emergence of
new competitors in the market as well.
2.1.5. Business Model Changes
It is to mention that the current business model of Iconic Fashion in terms of customer
relationship needs to change as the company is managing all its after sales services for the
customer relationship. However, it is suggested that the customers of the company should be
given the opportunity to get involved in the product development process.
3. Conclusion
Hence, from the above analysis of the business model of Iconic Fashion, it is to state that
the present business model of Iconic Fashions is quite effective for the limited market it
holds. At present, the company is limited to northern and western European countries only
but in order to gain expertise in larger market segment and expand its business globally, the
company needs to change its business model. It is to mention that increase in the generation
of revenue would help the company in meeting the present critical success factors that are
discussed above.

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4. Recommendations
a) Iconic Fashion should increase its online market presence immediately.
b) It should work on its customer relationship management as this will help it in gaining
maximum level of satisfaction from the side of the customers.
c) The company should take some market development initiatives as this will help it in
increasing its business areas as well as its target customer segments. At the same time,
it is also likely to increase the revenue for the company.

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References
Chang, Y. T., Cheng, W. H., Wu, B., & Hua, K. L. (2017, October). Fashion world map:
Understanding cities through streetwear fashion. In Proceedings of the 25th ACM
international conference on Multimedia (pp. 91-99). ACM.
De Massis, A., Frattini, F., Kotlar, J., Petruzzelli, A. M., & Wright, M. (2015). Innovation
through tradition: Lessons from innovative family businesses and directions for future
research. Academy of Management Perspectives, 30(1), 93-116.
Joyce, A., & Paquin, R. L. (2015). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design:
How to create products and services customers want. John Wiley & Sons.
Parida, V., Sjödin, D. R., Wincent, J., & Kohtamäki, M. (2014). Mastering the transition to
product-service provision: Insights into business models, learning activities, and
capabilities. Research-Technology Management, 57(3), 44-52.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin,
development and future research perspectives. Long range planning, 49(1), 36-54.

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Appendices
Appendix 1: Business model canvas of Opera Australia
Key Partners
 Resourcefu
l team.
 Technology
suppliers.
Key Activities
 Promotional
events.
 Growth of
operative
teams.
Value
Proposition
 Providing
customer
contentment
.
Customer
Relationships
 Social media based
communication.
Customer
Segments
 Casual
wear,
formal
wear,
and
ethnic
wear
for
men
and
wome
n and
kids.
Key Resources
 Accessibility
of
technologies
.
Channels
 Existence on
the websites
 Print
Advertisements
.
Cost Structure
 Staffs
Revenue Streams
 Financial support gained.