Deconstructing the Business Model of Seven West Media Company

The report deconstructs the business model of Seven West Media Company, an integrated media group company in Perth, Australia. It explains the nine building blocks of the business model, interrelationships between them, critical success factors, downside risks, and recommendations for improvement. The report also provides access to financial statements and summary of financial performance.

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Name of the Student
Name of the University
Author Note

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Executive summary
The business model of an organization is often considered to be a useful tool which can be used
to understand the various components of the business. The report follows a structured format
whereby the different aspects of the business model have been explained along with a discussion
of the critical success factors of the business. This is followed by the relationship between the
blocks and the analysis of the risk factors. Certain recommendations have also been provided.

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Table of Contents
I. Introduction..............................................................................................................................3
II. Business model.....................................................................................................................3
Building blocks............................................................................................................................3
Interrelationships.........................................................................................................................7
Critical success factors................................................................................................................8
Downside risks.............................................................................................................................8
Business model changes..............................................................................................................9
III. Conclusion..........................................................................................................................10
IV. Recommendations:.............................................................................................................10
V. Appendices.........................................................................................................................13
Appendix 1.................................................................................................................................13
Appendix 2: Financial statements..............................................................................................14
Profit and Loss Statement..........................................................................................................14
Cash Flow Statement.................................................................................................................15
Financial Position Statement.....................................................................................................16
Summary of Financial performance..........................................................................................17

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I. Introduction
The Seven West Media Company located at Perth, Australia is one of the leading
integrated media group companies, with a large market presence and dealing in magazine,
broadcast television and newspaper publishing as well. The company deals in the online presence
as well. The company can be taken to be an integral aspect of many media business lie Seven,
7TWO, 6flix, Pacific Magazines and the Yahoo!7 (Home » Sevenwest., 2018). The company is
also a parent brand to some big content brands like House Rules, Home and Away, Sunrise, the
Olympic Games, Better Homes, Marie Claire, The West Australian, Perth Now and 7 plus. With
the advent of technology, the company has further planned to expand its presence into video and
related publishing content. The company is in a good phase and has been creating more content
an expanding its presence in the international domain (The official list, 2018). The company has
formulated a strategy to expand its leadership position in the domain of producing content across
all screen and elements. The company is listed under the Australian Stock Exchange under the
name, ASX: SWM. The report will be deconstructing their business model and provide
recommendations on the same.
II. Business model
The company is an integrated media company and functions well within its domain in
Perth, Australia. The company functions along with various other media companies and manages
their operations successfully (Ovans, 2015).

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Building blocks
The business model of the company comprises of the nine building blocks which can be
successfully understood in order to understand the different functioning.
Customer segments
The customer segments of the company comprise of the following groups:
 Audiences between 24 to 49 years old
 English speaking and educated consumers
 Advertisers
Key partners
The key partners of the company are:
Suppliers of services and technology
These suppliers assist the company in achieving a competitive edge in the business field.
Advertising partners
The company has various advertising partners like the West Australian, Marie Claire
Better Homes, Olympic Games, and Gardens, Who, The Sunday Times, Perth Now and 7plus
(Home » Sevenwest., 2018).
Strategic partners on various different projects
During different projects for specific brands and companies, the company partners with
various leading newspapers and media channels to ensure that the organization achieves success
(Bocken et al., 2014 p.42-56).

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Value proposition
Original content with respect to reporting a wide range of subjects: The Company writes various
blogs, articles, newspaper advertisements and other mediums on varying subjects for popularity.
Advertisement campaigns for varying audiences: The Company also conducts an integrated
approach towards different advertisement campaigns for different audiences across Pacific
Magazines, Seven Networks, The West and Yahoo7.
Key activities
The activities of the Seven West Company is as follows:
1. Creation and distribution of original content (Home » Sevenwest, 2018).
2. Traditional Advertising
3. Modern Advertising
4. Investment in Research domains
Channels
The different channels through which the company Seven West Media communicates are
as follows:
The website of the company: http://www.sevenwestmedia.com.au/
Through mobile application (Zott, Amit & Massa, 2011 p. 1019-1024).
Direct communication with advertisers
Revenue streams

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The main revenue streams comes from the given sources for the Seven West Advertising
Company:
 Native Branded Advertising Solutions
 Traditional Advertising Solutions
 Investments (Home » Sevenwest, 2018).
Cost structure
The cost structure of the company is based on the following categories:
 Platform maintenance
 Production of content
 Marketing plans
 Salary
 Suppliers
 Partnerships

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Figure 1: Snapshots of different brands under the company
(Source: Home » Sevenwest, 2018)
Key resources
The different resources of the company are as follows:
 The website and social media platform
 Personnel and Partnerships (Home » Sevenwest, 2018).
 Key relationships with different companies
 IT and Communications Department
Customer relationships
The company maintains relationships through the following:

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Free content
Social media and content emails
Interrelationships
The business model framework comprises of 9 building blocks, each of which comprises
of different details of the company (Kiel, 2014). The given blocks are highly related to one
another and any change in one of the blocks, can bring a change in other blocks as well as they
are a part of single business unit.
This can be illustrated with the help of a simple example, which means that in case the
key activities of the company undergoes a change, then the different costs structures of the
company will be changing and so will the key resources as well (Massa & Tucci, 2013 p. 420-
441).
In the same manner, if the organization spends a higher amount on the customer
relationships and seeks to build then successfully, then their Revenue streams might be impacted
along with cost structure of the firm (Sinkovics, Sinkovics &Yamin, 2014 p. 692-707). In the
same way, if the Seven West media firm decides to improve their key resources, this may have
an impact on the cost structure of the firm or contribute towards the revenue structures of the
firm. Hence, the different building blocks of the business model specifically of the Seven West
Media Company is related to one another.
Critical success factors
Critical success factors can be described as those factors which contribute towards the
success of the organization. The different success factors are as follows:

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The strong network: The Company has various strong networks under its domain like the Yahoo
Sport, 7 flix, New Idea, Pacific Magazines, Flickr, The West Post, The Australian post. While
dealing with these brands and creating content for a large majority for most of them.
Brand popularity: The name of the brand is very popular and the media company is considered
to be the primary choice of various brands and companies when they are required to have any
activity related to the media aspect of their company (Hong & Fauvel, 2013).
Key Resources: the key resources of the company are very effective in nature and thus, for this
reason it is able to work efficiently and ensure success.
Downside risks
The downside risks associated with the company have been stated as follows:
Business Interruption
There can occur various events like Natural Disasters, cyber-attacks, riots and cases of
terrorism which can cause the business to shut down or limit to a few hours (Top 10 risks for
communications, 2018).
Multinational Exposure
The firm is looking out to expand into the international domain and hence, it may be then
exposed to multinational exposure (DaSilva & Trkman, 2014 p. 379-389). This may be in the
form of supply chain errors.
Employee Safety

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The safety of the employees during journalism activities may also pose a risk.
Furthermore, very often technology errors and omissions also play a great role in deciding the
risk as taken by the companies.
Business model changes
According to me, the following changes can be made to the business model of the Seven
West Company:
 The revenue streams can be improved by inculcating more revenue sources which would
assist the company in ensuring that their revenues can increase (Carayannis, Sindakis &
Walter, 2015 p. 85-104).
 The value propositions as offered by the company can include a wider range of portfolios
for the benefit of the different consumers.
III. Conclusion
Therefore, from the given analysis it can be stated that the company has been performing
considerably well with respect to its duty of managing the integrated media companies. The
given report followed a structured format whereby the different components of the business
model of the company were deconstructed which was then followed by the analysis of the risks
being faced by the company and the changes which could be made to the model.
IV. Recommendations:
After the analysis, the following can be recommended for the Seven West Media
Company at Perth:

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 They can expand to various international domains after taking into consideration the
manner in which the international risk exposure can be minimized.
 They can include more avenues to earn a higher revenue.

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V. References
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65, 42-56.
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long range
planning, 47(6), 379-389.
Home » Sevenwest. (2018). Retrieved from http://www.sevenwestmedia.com.au/about-us/
Home » Sevenwest. (2018). Retrieved from
http://www.sevenwestmedia.com.au/investors/financial-results/financial-results-2018/
Home » Sevenwest. (2018). Retrieved from
http://www.sevenwestmedia.com.au/assets/pdfs/2017-Annual-Report.PDF
Home » Sevenwest. (2018). Retrieved from http://www.sevenwestmedia.com.au/
Hong, Y. C., & Fauvel, C. (2013). Criticisms, variations and experiences with business model
canvas.
Kiel, I. H. (2014). Entrepreneurial marketing.
Massa, L., & Tucci, C. L. (2013). Business model innovation. The Oxford Handbook of
Innovation Management, Oxford University Press, Oxford, 420-441.
Ovans, A. (2015). What is a business model. Retrieved August, 2, 2018.

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Sinkovics, N., Sinkovics, R. R., &Yamin, M. (2014). The role of social value creation in
business model formulation at the bottom of the pyramid–implications for
MNEs?. International Business Review, 23(4), 692-707.
The official list. (2018). Retrieved from
https://www.asx.com.au/asx/research/listedCompanies.do?coName=C
Top 10 risks for communications, m. (2018). Top 10 risks for communications, media and
technology companies | PropertyCasualty360. Retrieved from
https://www.propertycasualty360.com/2016/12/29/top-10-risks-for-communications-
media-and-technolo/?slreturn=20180630054358
Zott, C., Amit, R., & Massa, L. (2011, July). The Business Model: Recent Developments and
Future Research. Journal of Management, 37(4), 1019-1024.

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V. Appendices
Appendix 1: Business Canvas Model of Seven West Media Company
Key Partners
Suppliers of
services and
technology
Advertising
partners
Strategic partners
on various projects
Key Activities
Creation and
distribution of
original content
Modern Advertising
Traditional
Advertising
Value
Proposition
Original content
and reporting
through various
subjects.
Advertising
campaigns for
specific
contents
Customer
Relationships
Free content
Social media
and email
content
Customer
Segments
The audience
between 25-
40 years
Advertisers
Key Resources
Website
It and Technology
Partnerships and
Personnel
Channels
Website
Direct
communication
with advertisers
Application
Cost Structure Revenue Streams

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Platform Maintenance
Production of original content
Marketing plans
Salaries of suppliers and staff
Modern advertisement solutions
Traditional Advertisement solutions
Investments
Appendix 2: Financial statements
Profit and Loss Statement

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Cash Flow Statement

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Financial Position Statement

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Summary of Financial performance