University Business Model Analysis Report: Passel Company

This report provides a comprehensive analysis of the Passel Company's business model, a crowdsourced online delivery service. The report utilizes the Business Model Canvas to examine the nine building blocks, including customer segments (retail stores and users), key partners, value proposition (speedy delivery), key activities, channels, revenue streams (delivery fees and commissions), cost structure, key resources, and customer relationships. It identifies the interrelationships between these blocks and highlights critical success factors such as the extensive supply network and innovation. The report also discusses downside risks, like theft and delivery delays, and proposes business model changes, such as enhanced employee training and improved hiring processes focusing on trustworthiness. Finally, the report concludes with recommendations to enhance security, trustworthiness, and employee training to improve the business operations and competitiveness of Passel.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on the overall analysis of the business canvas model of Passel
Company situated in Australian economy. The different kinds of interrelationship between
the nine building blocks had been identified that has helped the company in gaining
competitive advantage along with there was a proper analysis which was conducted related to
the issues faced by the company. Lastly, the recommended changes have been analyzed that
has helped in improving the business operations. The different recommendations which have
been identified are as follows:
 Proper security and the training are required to be provided to the employees working
in the organization which will be beneficial in improving the overall effectiveness of
the operations
 Moreover, there should be inclusion of the trustworthiness among employees and the
customers which will be beneficial for the overall success of the company

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Table of Contents
I. Introduction.............................................................................................................................3
II. Business model......................................................................................................................4
A. Building blocks.................................................................................................................4
1. Customer segments........................................................................................................4
2. Key partners...................................................................................................................4
3. Value proposition...........................................................................................................5
4. Key activities..................................................................................................................5
5. Channels.........................................................................................................................5
6. Revenue streams.............................................................................................................5
7. Cost structure.................................................................................................................6
8. Key resources.................................................................................................................6
9. Customer relationships...................................................................................................6
B. Interrelationships...............................................................................................................6
C. Critical success factors......................................................................................................7
D. Downside risks..................................................................................................................8
E. Business model changes....................................................................................................8
III. Conclusion............................................................................................................................9
IV. Recommendations................................................................................................................9
References................................................................................................................................10
Appendix 1- Table 1- Business Model Canvas of Passel........................................................13
Appendix 2- Table 2- Financial Aspects of Passel..................................................................14

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I. Introduction
Passel is one of the world’s largest crowdsourced online delivery option which was
launched in the year 2017. The founder of the company is Marshall Hughes who had quit his
job to make the dream turn into reality. Passel is one of the largest and genuinely
crowdsourced home delivery company which provides speedy delivery of the different
products which are being purchased by the customers from the different organizations
(Passel.com.au, 2019). The respective company is already looked by Silicon Valley wherein
they plan to tackle the delivery of more than 300000 items in Australia and it is one of the
largest freight companies in the Australian market. In the respective company, they try to
deliver the different products to the customers within three hours which is the maximum time
limit. The different benefits which are offered by Passel is inclusive of that the different
retailers will be gaining additional sales revenue along with customers receive much better
level of service and gain competitive advantage.
Figure 1: Process Applied by Passel for Delivery of Goods

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(Source: Ovans, 2015)
II. Business model
The respective business of Passel Company is related to analyzing the different kinds
of services which are offered to the companies in the market. The respective freight along
with logistics service provider company helps in satisfying the delivery services of the
different companies and satisfying the different delivery requirements of the customers in the
market (Osiyevskyy & Dewald, 2015).
A. Building blocks
The respective nine building blocks of the respective organization is inclusive of the
various activities that is related to key partners, key activities, relationships with the
customers as well the channels which are being used by the organization to provide the most
satisfying services to the different customers and improve the different business-related
operations in an appropriate manner (Morioka, Evans & de Carvalho 2016).
1. Customer segments
The major customer segments who are included in the respective process is inclusive
of the retail stores and the users. The different people who are involved in the process
includes the ones who do not want to go out for shopping and want the delivery of the
product within that particular day as well (Massa, Tucci & Afuah, 2017). On the other hand,
in case of retail stores, it is efficient for the ones which do not have the delivery services.
2. Key partners
The main partners who are included in Passel Company includes the different retail
stores as well as the different restaurant joints present in the Australian economy (Joyce &

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Paquin, 2016). The delivery personnel are the other major resources and partners of Passel
Company which will be helpful for them in gaining competitive advantage.
3. Value proposition
The value proposition of the company is beneficial for the users, delivery and the
partner retail stores. In case of users, they can order the different kinds of products from the
partner stores and the Passel company charges a minimal fee and the things will be delivered
within two hours (Hiteva & Sovacool, 2017). On the other hand, the partnered retail stores
will be receiving extended customer base as well as proper and efficient recognition. Lastly,
the Passel Company will be receiving good money from the delivery related services and
there can be inclusion of tips from the different customers.
4. Key activities
The different key partnerships which is included in the respective aspect is making
new partnerships with the other retail stores, processing the different transactions, hiring the
different delivery executives, managing as well as creating technological infrastructure (Foss
& Saebi, 2015). There can be inclusion of acquisition of the customers that plays a major role
in improving the overall customer experience in the market.
5. Channels
The channels which are included in the respective aspect is inclusive of the official
websites of the company, mobile application for the android applications and iOS. These are
the different channels which will be beneficial for the company to get more competitive
advantage (Fleisch, Weinberger & Wortmann, 2015).

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6. Revenue streams
The different revenue aspects which are involved in the respective organization is
inclusive of delivery fee which is being charged from the different users for the different
delivery of the different goods from various retail stores (Christensen, Raynor & McDonald,
2015). Moreover, there is inclusion of the commission which is charged from the company
for delivering the services within limited time frame.
7. Cost structure
There is technological set up along with running costs which will be included in the
cost structure of the company. In addition, there are salaries which are provided to the
customers and payments provided to the delivery executives that play a major role in
improving and competing with the other competitors (Brea‐Solís, Casadesus‐Masanell &
Grifell‐Tatjé, 2015).
8. Key resources
The major resources which are inclusive in the company Passel are technology, part
time delivery personnel as well as partner retail stores along with their products which will be
beneficial for improving the services (Bocken & Short, 2016).
9. Customer relationships
The relationship with the customers is maintained by them with the help of social
media channels, support from the different customers and feedback system which is inbuilt in
the organization to improve the overall success of the company (Bashir & Verma, 2017).

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B. Interrelationships
The effective kind of interrelationship between the nine building blocks of the
company is essential and important which will segment the most profitable customers in
order to survive in the market. The more profitable customers, it will be helpful for them in
improving their business and gain competitive advantage in the market. In addition, the key
partners of the company help in satisfying the different customers in the market which will be
beneficial for the overall growth of the company (Amit & Zott, 2015).
Moreover, the key resources are helpful in managing the business which helps them in
competing with the other competitors and improve their position. The relationship with the
customers is the most essential aspect which is being followed by the respective companies
which will be beneficial for the overall growth and the support from the customers are the
essential aspects to improve the system (Hansen, 2016).
In addition, the revenue streams along with cost structure are the two essential
elements which will be considered to be most effective as there are different costs such as
technological set up as well as delivery fee which is charged from the different users which
will be helpful for them in improving the business operations.
C. Critical success factors
The critical success factors of the Passel Company are inclusive of the following
aspects which are described as follows:
 The extensive supply network of the freight and logistics company is one of the
critical success factors as the initial commitment of the company is to provide
customers with quick, effective and timely service designed to provide maximum
comfort to the clients (Saebi, Lien & Foss, 2017).

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 The innovation is the other aspect which is included as the critical success factor of
the company wherein the company tries to offer the clients with timely delivery
within three hours of purchase from the partner retail stores through application of
cloud technology and gain competitiveness.

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D. Downside risks
The different kinds of risks which are involved in the respective freight and logistics
business is inclusive of the following:
There can be risk of theft and loss of security which can affect the overall growth of
the respective company as he courier can be held liable for the different loss of goods
(Schaltegger, Hansen & Lüdeke-Freund, 2016). Moreover, there can be delay in shipping of
the items and which can affect the trust factor of the customers.
There can be inclusion of damaged or the destruction of the different transported
items to the customers wherein the couriers can be held liable for damage which has been
caused to the items and it can lead to various costs.
E. Business model changes
From the overall analysis of the risks, it can be identified and analyzed that there are
different kinds of business model changes which are as follows:
Proper training to the different delivery executives is one of the most appropriate
aspects and changes which can be implemented by Passel company as it will be improving
the overall courier services in an appropriate manner (Velu, 2015). There should be proper
knowledge relating to the different policies which is required to be known by the delivery
executives which will help them in managing the overall appropriateness.
Moreover, the proper hiring of the employees is required to be done by Passel
Company as it is the matter of delivering the products to the customers and there should be
inclusion of trust factor and trustworthiness is the crucial element which should be followed
by the company (Tell et al., 2016).

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III. Conclusion
Therefore, it can be concluded that the business model canvas innovation plays a
major role in Passel Freight and Logistics Company as it will be helpful in improving the
services and gain competitive advantage in the market.
IV. Recommendations
There are different recommendations which can be provided to the company are as
follows:
 Firstly, the security and trustworthiness among employees and customers plays a vital
role which should be included in the company as it will be helpful for gaining
competitive advantage in the business
 Moreover, the training provided to employees is the other essential factor which will
be beneficial in improving the business operations

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References
Amit, R., & Zott, C. (2015). Crafting business architecture: The antecedents of business
model design. Strategic Entrepreneurship Journal, 9(4), 331-350.
Bashir, M., & Verma, R. (2017). Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), 7.
Bocken, N. M., & Short, S. W. (2016). Towards a sufficiency-driven business model:
Experiences and opportunities. Environmental Innovation and Societal
Transitions, 18, 41-61.
Brea‐Solís, H., Casadesus‐Masanell, R., & Grifell‐Tatjé, E. (2015). Business Model
Evaluation: Quantifying W almart's Sources of Advantage. Strategic
Entrepreneurship Journal, 9(1), 12-33.
Brea‐Solís, H., Casadesus‐Masanell, R., & Grifell‐Tatjé, E. (2015). Business Model
Evaluation: Quantifying W almart's Sources of Advantage. Strategic
Entrepreneurship Journal, 9(1), 12-33.
Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is disruptive
innovation. Harvard Business Review, 93(12), 44-53.

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Fleisch, E., Weinberger, M., & Wortmann, F. (2015). Business models and the internet of
things. In Interoperability and Open-Source Solutions for the Internet of Things (pp.
6-10). Springer, Cham.
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, N. J., & Saebi, T. (Eds.). (2015). Business model innovation: The organizational
dimension. OUP Oxford.
Hansen, E. (2016). Responding to the bioeconomy: business model innovation in the forest
sector. In Environmental Impacts of Traditional and Innovative Forest-based
Bioproducts (pp. 227-248). Springer, Singapore.
Hiteva, R., & Sovacool, B. (2017). Harnessing social innovation for energy justice: A
business model perspective. Energy Policy, 107, 631-639.
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.
Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model
research. Academy of Management Annals, 11(1), 73-104.
Morioka, S. N., Evans, S., & de Carvalho, M. M. (2016). Sustainable business model
innovation: exploring evidences in sustainability reporting. Procedia CIRP, 40, 659-
667.
Osiyevskyy, O., & Dewald, J. (2015). Explorative versus exploitative business model change:
the cognitive antecedents of firm‐level responses to disruptive innovation. Strategic
Entrepreneurship Journal, 9(1), 58-78.

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Ovans, A. (2015). What is a business model. Retrieved July, 5, 2016.
Passel.com.au (2019) Passel (online) Retrieved from https://www.passel.com.au/ [Retrieved
on 9th April 2019]
Saebi, T., Lien, L., & Foss, N. J. (2017). What drives business model adaptation? The impact
of opportunities, threats and strategic orientation. Long range planning, 50(5), 567-
581.
Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for
sustainability: Origins, present research, and future avenues.
Tell, J., Hoveskog, M., Ulvenblad, P., Ulvenblad, P. O., Barth, H., & Ståhl, J. (2016).
Business model innovation in the agri-food sector: A literature review. British Food
Journal, 118(6), 1462-1476.
Velu, C. (2015). Business model innovation and third-party alliance on the survival of new
firms. Technovation, 35, 1-11.

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Appendix 1- Table 1- Business Model Canvas of Passel
Key
Partners
The
different
retail stores
Delivery
Personnel
Key Activities
Hiring of the
different delivery
executives
Processing different
transactions
Managing different
orders along with
processing
Value Propositions
Users can order
various items from
partner companies
The retail stores can
extend their
customer base
The delivery
personnel can gain
tips from the
customers
Customer
Relationships
Social media
and customer
support
Inclusion of
feedback
system
Customer
Segments
The users
who do not
want to
visit retail
stores and
prefer door
step
delivery
The retail
stores
which don
not have
their own
delivery
executives
Key Resources
Technological
Aspects
The partner retail
companies along
with part time
delivery persons
Channels
Website of the
company
Mobile
application for
Android and
iOS
Cost Structure
Technological Set up as well as running related costs
The salaries which are paid to the employees
The payment which is done for the delivery persons
Revenue Streams
The delivery fee which is
charged from the different
users of Passel
The commission which is
being charged from the
different retail stores
(Source: Created by Author)

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Appendix 2- Table 2- Passel Company Terms and Conditions
(Source: Passel.com.au, 2019)