Business Canvas Model Analysis: A Nursing Home Case Study

This case study analyzes the business model of a privatized nursing home institution using the Business Model Canvas (BMC). The analysis covers the nine building blocks of the BMC, including customer segments (patients and elderly), value propositions (customization, performance, and brand value), channels (public healthcare databases, social media, and loyalty cards), customer relationships (personalized interaction), key partners (investors and healthcare providers), key activities (accommodation, services, and care), key resources (healthcare technologies and staff), cost structure (fixed assets, operating expenses), and revenue streams (services, care, and accommodation). The study highlights the importance of aligning advanced technologies and systems for efficient operations, emphasizing market research findings and the nursing home's focus on providing effective healthcare services with innovative technologies.

Business canvas Model
Nursing innovative business
[DATE]
[Company name]
[Company address]

Case study analysis
In this paper, Nursing home privatized institution which provides healthcare with
residential accommodation to the needed people has been taken and in order to assess the
business sustainability and innovative business approach of the nursing home care, business
canvas model has been used. This BCM reflects the key components of the business and how
Nursing home privatized institution has been using its business approach by aligning the
advanced technologies and system process for operating its business in the industry.
Business canvas model
It is important to make a Business Model Canvas for nursing private institutional care to make
sure the successful operations of its nursing operation and to create the value of funds while
delivering products or services to the customers. A nursing home is a privatized institution
which provides healthcare with residential accommodation to the needed people.
The Business Model Canvas of a Nursing Home is accompanied by the 9 building blocks:
 Customer Segments is the building block which defines the target groups of customers that
healthcare institutions aim to reach and serve their services and care. The two target customer
segments would be patients suffering from the illness and old age people. It provides healthcare
facilities to patients suffering from different illness at a different age. In addition to this, The
Old Age people requires a valuable need for the nursing homes, as after a certain age the people
require more medical aid then the younger ones. The Nursing Homes provide many programs
particularly focused on old aged people for their betterment and good living. Nursing homes give

elderly people medical facilities as well as independent living with no personal mobility
limitations.
 Value Propositions is the combination of the products and services provided by the organization
to its customers, and what is its value addition which differs them from the competition to
survive as well as their right to existence. They ascertain the competitor’s product and services
and try to make a better program for attracting the customers as well as maximum satisfaction to
the people with them. Value proposition guides the customer about the problems solved for them
from the product offered by the institutions. The Value propositions of newly set up nursing
home care focus to deliver the customer the attributes such as customization, performance, brand
value, newness, price, cost as well as convenience and usability of the products and services
offered by the institutions. Value Propositions also provides the data of the existing customers
about their experience with the institutions (Osterwalder, & Pigneur, 2010).
 Channel- This is accompanied by the medium or process which nursing institutional care
organization will focus to deliver the value proposition to its customers. The main channel
would be using the public health care data base, social media and loyalty card approach. The
Extramural Residential Care Concepts customer in need is contacted by the healthcare
institutions by their advertising, online platforms, healthcare branches, and partner association.
Extramural customers are the most important type of customers for these organization.
Healthcare organizations not only deliver value propositions, modified care, and services
packages to these customers but also gaining their loyalty for future recruitment in their facility
may give them better revenues. Limitations of the Channels is to sacrifice their margins to the
partners, also the cost of setting up their own channel takes a lot of funding (Bertels, Koen, &
Elsum, 2015).

 Customer Relationship is the building block which describes the type of relationship which has
been established by the Healthcare institutions from its Customers. It is very essential to interact
with the customers to ascertain their problems and what they need, this leads the organization to
divide the customers into target groups and solving their problems and proving with the value
proposition.. Although it is very expensive as it will requires hiring more employees in customer
relation segment and setting alignment with the customer oriented work program at first it yields
very good output in the future and generates good revenues for the Healthcare Unit (Van
Limburg, et al. 2011).

Key Partners
 Alliance with
other investors
 Strategic
management
with the
advanced
technologies
 Marketing
advertisement in
hospitals
Key Activities
 Direct health care
service program
 Integrating online
and offline
marketing
channels
Use of advanced
technologies in
the health care
program
Value Proposition
 Customized
health care
services
 Delivering best
class health care
program by
aligning the
advanced
technologies
Customer Relationships
 Introducing
the health care
loyalty
program
 Public health
care system
Customer
Segments
 Huge
market
segments
 Focus on
the old
age
people
Key Resources
 Sales team
 Doctor health care
specialized services
 Advance healing
treatment
Channels
 Online sales through
the dashboard
 Health care app
 Social media
 Official website
Cost Structure
 Value chain expenses.
 Marketing expenses
 Installing cost for technologies
 Doctors hiring expenses.
Revenue Streams
 Sales through health care program
 Look after services to patients.
 Arranging old age residents for people.

 Fixed cost for arranging shop
 Infrastructure costing

 Revenue Streams- The revenue streams of the Nursing Healthcare organization represents the
cash inflow from the business activities which Nursing institutional care generates from selling
its products and services to the customers. Revenue generation is very important for the company
and considered all the cash inflow from the business survive provided in the run long term. The
Healthcare institutions comprise of three main sources of revenue which are Providing services,
Care and Accommodation. The Healthcare institutions provide the services like emergency care,
delivery services, diagnostics centers, patient education and lab work to its residents as well as
the outsiders for generating revenues (Chen, Cheng, & Mehta, 2013). To generate revenue for
caring they provide medical care to their residents as well as outsiders like primary care,
secondary care. These institutions generate revenue from giving accommodations to the
customer by being a landlord and taking rents from them for their accommodation and providing
services as well as taking care of the people. Healthcare institutions attract outside customers by
giving them cumulative packages for making their interest in them and to attract wide numbers
of customers for sustainability and making higher revenues (Chen, Cheng, & Mehta, 2013).
 The Key resources building block indicates that what asset and resources are needed to make
the business model run and generates revenues. The key resources which are required for
healthcare institutions are the extensive knowledge of how to provide care and services to its
customers for generating revenues and the infrastructure required for them to provide its
customer accommodation, care, and services. These resources allow the healthcare institutions to

reach markets, conduct programs, maintain a relationship with the customer, making channels,
providing health care services, advertise, customer satisfaction, and generating revenues for
running the business (Van Meeuwen, et al. 2015). These resources are very important for
institutions to run their business model successfully. The Health care organization also needs to
hire more than 80 staff members and 10 specialized doctors who will be required to deliver
health care services to patients. The people who work for the nursing health care program helps
it to make the business model. 10 Doctors, 50 Nursing Staff, 10 Management staff as well as 20
clerical staff are needed for providing care, services and also to justify the value proposition to
the organization. The Limitation of acquiring infrastructure is that the cost of infrastructure is
very high and also the facility of this should be geographical should be approachable to the
targeted customers (Simonse, 2014). One more barrier of finding these resources to take
permissions from the government. It takes some special licenses and permissions from the
government for these types of institutions.
 The Key Activities- The key activity of the building block of Health care nursing describes the
most important factors which nursing organization must perform to make it's business model
work. The Key activities of healthcare institutions are to renting out their accommodation,
providing services and care to its customer to generate revenues. Providing services and care to
the customer onsite as well as the outside customer (Pfeffer, & Fong, 2014). These are the most
important activities which a healthcare company should do to sustain and generating revenues.
Also to ascertain the feedback from the customers whether they are happy using the services
provided by the company to them or not (Allen, 2014). One of the major activity which the
company must do to sustain and provide services is to maintain relations with an existing and
new customer, discovering new markets, Ascertaining customer needs, making and executing

programs, innovations, etc. The key activity of Healthcare institutions are also running programs
for rehabilitation and providing mental support to their customers. The Workforce also has a key
activity to provide emotional support to their customer as well as their families, if the customer
will feel safe and happy in the institution then they will be loyal to the organization and give it
better revenues and publicity (Pekuri, Pekuri, & Haapasalo, 2013).
 Key Partnership- In order to run the business effectively, Nursing organization needs to enter
into the strategic alliance with the other organization. This building block describes the network
of suppliers and partners that make the business model works. In Nursing homes kind of business
model, there are three kinds of partnerships distinguished. Strategic partnerships between the
health care institutions, joint ventures with other health care institutions and or housing
associations to develop the value proposition, and buyer-supplier relationship with the health
care office, health insurance company, municipality, housing associations, and other health care
institutions. Creating these alliances will optimize their business model and reduces risks and
acquire resources. For instance, renting the accommodation for a customer segment acquires
resources and certain activities that are not the core activity for a health care institution thus the
health care organization outsource these activities to the housing association is a better
alternative to establishing, developing and running themselves (Friebe, 2017). Partners play a
vital role in generating revenues for the organization and also to discover new markets and as
well as maintaining a relationship with the outside customers. Although the organization has to
sacrifice the margins to the partner they provide the institutions with the wide market and high
revenues and helps to develop the better programs for the mass people and targeted customers.
This has to be monitored by the organization to provide the best satisfaction to the customer

(Hutson, Wilkinson, & Luxford, 2011). The main threat for nursing home care is related to the
complexities of the process.
 Cost Structure- Health care nursing organization will have to invest initial capital around $ 20
million for its fixed assets. In addition to this, 30% of the revenue will be required for the
operating expenses. This is the building block which determines what is the cost occurred while
doing all the activities and operating the business model. In a Nursing home the activities which
are done like providing service, caring, acquiring infrastructure, advertising, partnering,
maintaining a relationship with the customers, human recourses all of these occur some cost.
Profit in this kind of Business models is the cost occurred subtracted from the revenue
generation. The cost occurred should be less than the revenue generated for the sustainability for
the company. The company need to balance the cost variances as at some places like partnering
and channels and serving outsiders customers occurs huge cost whereas the caring and giving
services to the residents occur low cost (Boykin, & Schoenhofer, 2011).

Market research finding
The newly set up nursing home care will focus on providing the health care services and
look after the patients in an effective manner. This nursing care will align the innovative and
developed technologies in its system to deliver better health care services to clients in the health
care industry (Joyce, & Paquin, 2016). The market research has shown that The Healthcare
institutions programs need to focus on the common behaviors, needs of the mass population of
the patients to strengthen its business program. These institutions make programs accordingly for

a particular group of customers to provide good customer satisfaction that will contribute the
institutions to good value propositions (Meertens, et al. 2012). The Nursing Homes provide the
customer one-stop solutions for their healthcare, accommodation, and rehabilitation so the
customers do not shift to other places as they get satisfied with the same place. Also, the mid-
aged people also find this comfortable as they with the age also need medical aid as well as
accommodation facilities which they get at one-stop solutions in these Nursing Houses (Bertels
Koen, & Elsum, 2015).
Market barriers
Healthcare organizations not only deliver value propositions, modified care, and services
packages to these customers but also gaining their loyalty for future recruitment in their facility
may give them better revenues. Limitations of the Channels is to sacrifice their margins to the
partners, even also the cost of setting up their own channel takes a lot of funding (Bertels, Koen,
& Elsum, 2015). The main market barriers of the nursing organization would be related to
finding effective health care employees, doctors and arranging the funds in the business process.
Customer and competitor analysis,
The Nursing Homes provide many programs particularly focused on old aged people for
their betterment and good living. Nursing homes give elderly people medical facilities as well as
independent living with no personal mobility limitations. However, the main competitors for the
nursing health care organization are the big hospitals who are indulged in using the advanced
technologies and system process for providing health care service program along with the
patient's treatments such Eternal, BUPA, Australia Unity, Western Provident Association
(Osterwalder., & Pigneur, 2010).

7 P’s of the nursing health care organization
Price- All the prices of the health care services will be as low as it could. However, price
skimming strategy would be followed.
Product- All the health care service program and patient care to all the people at a different age.
Process- Use of advanced technologies and health care development program.
Physical evidence- integrating the advance promotional plan with the effective brand image of
the New set up nursing health care program.
People- Focused on old aged people for their betterment and good living.
Place- It will be set up in the mid area of Australia near to peaceful land.
Promotion- Use of social media and advance online program (Bertels, Koen, & Elsum, 2015).
The success of the product when it enters into a chosen market.
The success of the nursing health care is high due to the high profitability of the market and
increasing demand for the health care program in Australia. The Healthcare institutions provide
the services like emergency care, delivery services, diagnostics centers, patient education and lab
work to its residents as well as the outsiders for generating revenues (Chen, Cheng, & Mehta,
2013). It is accompanied by the like primary care, secondary care which will strengthen its
revenue throughout the time.

References
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Appendix
Start-up Costing for [Nursing health care] - [2019]
START-UP COSTS Cost ($) EQUIPMENT/CAPITAL
COSTS Cost ($)
Registrations Business purchase price $10,000
Business name $50 Franchise fees $15,000
Licences $120 Start-up capital $150,000
Permits $200 Plant & equipment
Domain names $20 Vehicles $25,000
Trade marks/designs/patents $50 Computer equipment $12,000
Vehicle registration $60 Computer software $25,000
Membership fees $55 Phones $5,000
Accountant fees $65 Fax machine $2,000
Solicitor fees $45 Security system $3,000
Rental lease cost (Rent
advance/deposit) $25 Office equipment
Utility connections & bonds
(Electricity, gas, water) $25 Furniture $15,000
Phone connection $12 Shop fitout $35,000
Internet connection $20
Computer software $25
Training $120
Wages $250,000
Stock/raw materials $20,000
Insurance
Building & contents $1,000
Vehicle $2,000
Public liability $2,500
Professional indemnity $2,500
Product liability $4,500
Workers compensation $25,000
Business assets $45,000
Business revenue $120,000
Printing $1,200
Stationery & office supplies $1,255
Marketing & advertising $25,000
Total start-up costs $500,847
Total
equipment/capital
costs
$297,000
Assumptions:
All figures are GST exclusive.