MGMT20143 Assignment 1: Business Model Deconstruction of ActivePort

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MGMT20143
Assignment 1: Business Model
Deconstruction
1

Table of Contents
Introduction......................................................................................................................................3
Description of the Business.............................................................................................................4
Business Model Canvas...................................................................................................................6
Key Relationships............................................................................................................................8
Critical Success Factors.................................................................................................................10
Downside Risk...............................................................................................................................12
Recommended Changes.................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
The business model can be explained as the model that is used in a huge number in professional,
academic and practitioner that is based on studies. Various business model frameworks are
available in the business environment, but it is difficult to choose and evaluate the framework
that is suitable according to the needs of a businessman. The report is based on the Business
Model Deconstruction with the context of the ActivePort which is software-defined networking
with cloud-based portal service portal company that was established in 2017. The report includes
a comparison between the existing business model frameworks and also provides a structure of a
business model framework that aims in accomplishing a specific purpose.
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Description of the Business
ActivePort is an Australian company that was established in 2017. The company has a
provisional portal and orchestration services that help in providing connectivity of
telecommunication to the Cloud and service providers. It allows their customers to enjoy the
services of install provision, data centre services, and scale vendor neutral carrier. Beside this, it
also allows direct access platform to Microsoft Azure, Microsoft office 365, Google cloud,
AWS, and top peering exchanges. It also benefited the customers with disaster recovery, private
cloud services, and network backhaul. The main goals and aim of the ActivePort are to enable
the carriers, integrators, resellers and MSP’s for easily and successfully delivering the services
and growing the business in worldwide. ActivePort is well-known about the automated network
technology that easily fills the gap for Software-defined networking. This software help in saving
the huge amount of technical administration tome and the management through enhancing the
empowerment of service providers that deliver more service with less. In simple words,
ActivePort is a networking solution of future for Firewalls, Bandwidth, Cloud, and SaaS and so
on (Activeport, 2019).
Figure 1: About us
[Source: Activeport, 2019]
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Figure 2: Status of Active port over the past 90 days
[Source: Activeport, 2019]
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Business Model Canvas
The business model canvas is used to reflect the model of the business that will help in focusing
on the business model segment by segment. That means a businessperson can start the business
with a brain dump and filling up the segments in mind and then starting filling the empty
segments to close the gaps (Joyce & Paquin, 2016).
There is following business model canvas of ActivePort Company:
The above business model canvas of ActivePort Company shows the nine elements and blocks.
These nine blocks may include customer segments, value proposition, channels, customer
relationship, revenue streams, key activities, key resources, key partners and cost structure.
Through exploring and analysing these elements of the companies, the ActivePort Company can
able to improve these areas. This also helps in revealing the clear path that will help in building
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and developing the organisational business strategy (Lewandowski, 2016). In simple words,
Business model Canvas would able to gain a better understanding of the business. A better
understanding can be gain by communicating the goals and objectives of the business to the
team. The Business model canvas is very important for ActivePort Company that acts as an
invaluable tool which helps to pull the focus. This model helps the company to move toward
innovation and to the planning stage. This may include which is the strongest revenue stream and
how it can be a complement to each other. This also helps in enabling to discover better ways for
positioning the product or the services to the customers (Dudin, et. al., 2015).
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Key Relationships
The business model canvas is categorised into nine blocks that are described below:
Value Propositions: The value proposition states about the aim of the company and for whom
they are making. This segment is known about the product or idea as it is all about providing a
solution to the issue or fulfilling the needs. Once the problem is solved, the ActivePort Company
can know about who is solving it and what exactly the product and services get into it. The
company can able to list all the benefits and the features through solving the issues.
Customer Segments: Possibly, this segment is considered as an important part of the customer
segments. This allows the businessman to focus on those customers on which they want to sell
their products. The ActivePort Company focuses on customers by providing them with the
quality of services with good innovation product. In other words, the company would able to
detailed down the real picture of the customers. Through testing and selling the products to the
customers, this will change accordingly (Toro-Jarrín, et. al., 2016).
Channels: Channel segments describe which platform company will use to deliver the product
from the company to the customers. In past days the physical channel is the only channel to
deliver the product but nowadays with the rise in technology people can able to deliver their
product through mobile or internet. The ActivePort Company uses a model channel to deliver
their products and services.
Customer Relationships: Customer relationship helps in growing the business. This section will
help in the know about how to get the customers, how to keep the customers and how to grow
them. ActivePort Company develops a healthy relationship by being loyal with their customers.
Revenue Streams: ActivePort Company can generate revenue through choosing the online
mode.
Resources: The main task of the company is to manage the resources that may involve
financing. Besides this, the ActivePort Company needs a strong workforce of manufacturers,
salespeople, and programmers (Antikainen & Valkokari, 2016).
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Key Partners: Partners are considered as the collaborators of the company. This will help to
grow the business. As the ActivePort Company is a startup company, so it has two common
partnerships that are buyers and suppliers.
Key Activities business model: Key activities help the business to make the business model
work. ActivePort Company is an innovative company which is having specialisation of the
automated network. The company’s activity model involves production, marketing, strategy
formulation and so on.
Cost Structure: Cost structure help to know about how much fund is needed to incur in
business. ActivePort Company needs money for fulfilling all the expenses that include
technology cost, the salary of the employee and so on.
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Critical Success Factors
Critical success factor helps the organisation in accomplishing the main organisational goals and
objectives. This activity is required for ensuring the success of the company. This plays a vital
role in developing a strategy for a successful business. The key success factors may involve the
following:
Unique selling proposition: A unique selling proposition is considered as the factor that will
help in differentiating the products and services from the competitors. The ActivePort Company
is developing different unique selling proposition through high quality with the lower cost.
Innovation: Innovation helps the company in deliberating the imagination, information and
initiating the different values from the resources. This process may include the generation of new
ideas and develop useful products. ActivePort Company is an innovative company that is having
specialisation about the automated network (Joyce & Paquin, 2016).
Marketing and branding: Marketing and branding help the business in increasing engagement
and visibility through marketing channels. The ActivePort Company uses effective marketing
strategy and branding for converting the integrators into the customers.
Social media: Social media also help in growing the business. This will support the company by
promoting the brand value to the customers and market. ActivePort Company uses social media
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Critical
sucess
factor
Unique
selling
proposition
Innovation
Marketing
and
branding
Social
media

to accomplish the success factor that may include Facebook, Instagram, Twitter, and Google and
so on.
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Downside Risk
The business risk can be explained as the possibilities in which the business make a minimum
amount of profit due to the uncertainties. This may include changing in the preferences of
customers, change in taste, strikes, increases in the competition customer policy, obsolesces and
so on.
Below is the different type of risk that is occurred in the business:
Financial risk: Financial risk can be explained as the ability of the company in managing the
financial leverage and debt. This will lead to a sufficient amount of revenue to pay the
operational expenses.
Product risk: ActivePort Company is a new start-up that’s why sometimes it ah veto face the
product risk. It means the company may not be able to deliver the products and services to their
customers effectively (Lewandowski, 2016).
Market risk: ActivePort Company is affected due to the various factors that are present in the
market. It may include political unrest, a shift in the interest rates and economic recession.
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Financial
risk
Product
risk
Market
risk