Business Model Deconstruction and Analysis of the Range Rover Company

This report offers a comprehensive deconstruction of the Range Rover's business model, utilizing the Business Model Canvas as its framework. It begins with an executive summary outlining the report's objectives and findings, followed by an introduction that highlights the significance of business model analysis in today's business environment. The report then delves into the background of Range Rover, tracing its evolution as a luxury SUV. A detailed analysis of the company's business model canvas follows, dissecting its key partners, activities, value propositions, customer relationships, customer segments, resources, channels, cost structure, and revenue streams. The report examines the interdependencies between the nine building blocks of the canvas, identifying critical factors for sustainable success, such as minimizing emissions and reducing costs. It also addresses potential downside risks and suggests strategic changes, from improving eco-friendliness to streamlining delivery processes, to enhance the business model. The report concludes with a summary of key findings and recommendations, supported by a comprehensive list of references.

Running head: BUSINESS MODEL DECONSTRUCTION
BUSINESS MODEL DECONSTRUCTION
Name of the Student
Name of the University
Authors Note

1BUSINESS MODEL DECONSTRUCTION
Executive summary
The report showcased the importance of business model deconstruction. In the light of a
given company, Range Rover the business model canvas for the organization has been analyzed.
The relation between the nine building blocks for the business model Canvas has been further
evaluated and indentified. The main purpose of the report was to understand the various issues,
which are overcome by the firm in downside risk. Moreover, recommendation is provided and
different strategies have been analyzed that could be adopted by the Range Rover Company to
solve such situation.

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Table of Contents
Introduction:....................................................................................................................................3
Range rover’s Background:.............................................................................................................3
Business Model of Range Rover Company:....................................................................................4
Key Relationship between nine building blocks:............................................................................6
Critical factors to achieve Sustainable Success:..............................................................................8
Downside risks contribution:...........................................................................................................8
Changes required:............................................................................................................................9
Conclusion:......................................................................................................................................9
References:....................................................................................................................................11

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Introduction:
In the current scenario, it is crucial for the firm to adopt new strategic and techniques to
maximize the success rate. Business model canvas is a strategic management tool that helps in
creating new or documenting existing business models (Bocken et al., 2015). The report helps in
analyzing the business canvas model of the firm Rang Rover. The vehicle is positioned to be a
higher end vehicle having immense potential for high on-road style. The major purpose of the
report is to analyze and understand the business model canvas of Range Rover. The vital factor
for attaining sustainable growth by the company is to be analyzed.
The relationship between the nine building blocks is to be evaluated to analyze the
success factor within the organization. Through the help of business model canvas for Range
rover, the relationship between the existing building blocks is to be evaluated. Moreover,
recommendation is to be provided for any relevant changes that are to be made in the business, if
I would be the owner. The report will help in evaluating the contribution to downside risks
effectively. The main focus is on the analysis of nine buildings blocks to determine business
success.
Range rover’s Background:
Range rover also known as Land Rover is a luxurious sports utility vehicle (SUV). The
Rover Company was experimenting with a more enhanced model of Land Rover Series since the
year 1951. The car is under the umbrella of Jaguar’s Land Rover and was launched in the year
1970 by British Leyland (Landrover.com, 2018). The vehicle was previously sold in the United
States through the grey market between the year 1987 and 1974. This model is now under in its

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fourth generation. The company officially began to sell the Range Rover in U.S. in March, 1987.
Since that period till 1993 Range Rover was the only model that was offered in the US market.
In 2004, Range Rover Sport was launched that is completely based on the Land Rover Discovery
Platform. The worldwide sales of Range Rover has exceeded beyond 60,000 in 2015. The
success rate of Range Rover is determined by its rising sales.
Business Model of Range Rover Company:
Key Partner
Information
Technology
companies
Visionaries
Supply Chain
Partners
Other car
companies (e.g.
Mercedes-Benz)
Key Activities
Innovation for
better driving
experience
Setting a new
status quo
regarding
automotive
services.
Developing
the future of
mobility
Production
and Sales
marketing
Accelerating
the pulse of
Value
Proposition
Ultimate
Driving
experience
Longest
Range
Quickest
Acceleration
Land Rover
Series.
Active Cruise
Control with
Stop & Go
Remote
services that
facilitate
Customer
Relationships
Co-Pilot
Driver
Assistance
System
monitoring
Schedule test
drive
Brand name
(car for life)
Smart Alerts
Customer Segments
Quality minded
people, performance
driven.
Conscious people,
urbanites and sports
life.
Safety conscious
people

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the time services like
find car,
comfort and
lock.
Connected
Drive that
includes both
charging and
parking
Reaching
destination on
accurate time
and relaxes.
Key
Resources
Range Rover
Brand
Talented
people
Efficient
Dynamics
Agile
Manufacturin
g System
Different
thinking
mindset
regarding
everything
Channels
Online rental
bookings
Third party
mobility
service
providers
Dealership
Cost Structure
Innovation and Exploration
Revenue Streams
Service and maintenance

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Research and Development
Production
People Training
Sales & Marketing
Leasing fees
Rental fees
Car Sales
Key Relationship between nine building blocks:
Range rovers crucial relationship among the company’s nine building blocks can be
described effectively (Carayannis, Sindakis & Walter, 2015). The major vital elements of Range
rover business model are its customer segment. The company cannot survive at long-term People
are highly safety and environmentally conscious and are quality minded people. The urbanites
are targeted mostly and people those prefer electric cars and faster mobility services.
Range rover offers luxurious sports car that give its potential customer the ultimate
experience required for driving. Value proposition is another vital reason that makes the
company gains major competitive advantage through specialized services (DaSilva & Trkman,
2014). The customer’s experience is enhanced constantly by the application of new and latest
technology. Range rover series comes along with Connected Drive that makes the individual to
reach their destination in more relaxed manner and on time (Foss & Saebi, 2017). The car has
special features such as active cruise control so that the individuals can be easily assisted and in
time. Various features are also added by the Range rover to provide assistance and prevent the
car from any kind of mishaps or accidents.

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Range rover is known for its brand and rich heritage. It has efficiently maintained smooth
relationship with its customer. Customer satisfaction should be the main goal of the organization
(Klang, Wallnöfer & Hacklin, 2014). Range rover fulfills the needs of its target customer by
launching product as per their demand. For most of the individuals it becomes a car for life and
is therefore people consider this car with the most effective mileage.
Major revenue of the Range rovers company is earned through car sales. In addition to
this, the other key resources for revenue are in the form of rental fees, leasing fees and service
and maintenance. The channel of the company allows the company to reach various customers so
that value propositions can be delivered to them in a highly efficient manner (Metallo et al.
2018). The main channels of Range rovers are through dealership, third party mobility services
and online booking. This helps the firm to gain advantage over its competitors in the business
markets (Schaltegger, Hansen & Lüdeke-Freund, 2016).
The key activities led by Range rover are usage of better innovative practices for
excellent driving practices. This can be achieved only through the organization key resources
that involve agile manufacturing system, better and experienced talented people. The key
partners are visionaries, supply chain companies and several IT companies. Furthermore, the cost
structure of Range rover is value and cost driven in nature. They provide different types of cost
to the various services provide to them. Moreover, the company tries to fulfill the needs of
customers by launching products as per their choice and preference (Toro-Jarrín, Ponce-
Jaramillo & Güemes-Castorena, 2016).

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Critical factors to achieve Sustainable Success:
There are various factors involved to gain maximums success through critical success
factors are as follows:
 Range rover core concern is to minimize emissions by using low carbon and energy that
are renewable in nature. Combined energy efficient measures help to reduce CO2
emissions even though the volume of production continues to increase.
 Range rover need to decrease it cost for increased market penetration and therefore gain
competitive advantage in the business environment.
 Recycled aluminum are to be used for Range rover Sports and Range rover models. The
organization has closed loop waste recycling and recovery system at its Castle Bromwich
production centre (Souto, 2015).
 Various kinds of incentive measures should also be allowed by the organization to the
increase the level of satisfaction among the employees. Bonus rewards and incentives
should be allowed to the workers from time to time.
 Range rover should focus on improving the safety and security issues of the car to
achieve maximum excellence. Customer requirement should be clearly understood as
increase levels of thefts render the luxurious sports car not insurable.
Downside risks contribution:
When the market condition changes it leads to cause decline in the value due to
estimation of certain consequences or downside risks (Schaltegger, Hansen & Lüdeke-Freund,
2016). Range rover’s needs to completely analyze the market situation before while performing

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its operational activities in an efficient way. Various kinds of strategies are to be implemented by
the company so that the risks can be reduced to a great extent.
The downside risks needs to be managed by Range rover by using latest version of
turbocharged engines as it reduces the overall cost and has more horsepower. Improvement in
the designing process of the car would lead to reduction of high operational costs. This could
therefore help the Range rover to manage the downside risk.
Changes required:
If I would be the owner of Range rover business, to increase the key channels I would
have certainly made minor changes. The key resources for the organization should be increased
to maximize profitability. The products that are used to make or design the car should be more
eco-friendly in nature. Energy efficient measures should be implanted to minimize the
organization negative impact. Furthermore, I would send the delivery of vehicles to the dealers
directly rather than via a distribution centre. This approach would save enough of my extra cost
spent while delivery the cars throughout the globe. These changes could therefore lead the
business to achieve its realistic goals more easily.
Conclusion:
Range rover fulfils all the criteria that are required in the checklist before purchasing a
car. This includes luxurious amenities, comfort and power folding equipments. Therefore, it can
be concluded that business model canvas is required and it helped the Range rover to succeed in
the competitively. Various techniques that have been applied by the organization to solve various

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issues besides downside risk management. Moreover, few changes have also been recommended
that could have been effectively implemented.

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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. (DaSilva &Trkman, 2014)
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how far
have we come, and where should we go?. Journal of Management, 43(1), 200-227. (Foss
&Saebi, 2017)
Güemes-Castorena, D., & Toro, M. A. (2015, August). Methodology for the integration of
Business Model Canvas and technological road map. In Management of Engineering and
Technology (PICMET), 2015 Portland International Conference on (pp. 41-52). IEEE.
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.
Klang, D., Wallnöfer, M., &Hacklin, F. (2014). The business model paradox: A systematic
review and exploration of antecedents. International Journal of Management
Reviews, 16(4), 454-478.
Landrover.com. (2018). Improved refinement, luxury and capability for Range
Rover. Landrover.com. Retrieved 22 March 2018, from