Comprehensive Business Model Analysis for Willmott Dixon Company

This report provides a comprehensive analysis of Willmott Dixon's business model, utilizing the business model canvas to evaluate its value proposition, customer segments, channels, customer relationships, revenue streams, key resources, key partners, key activities, and cost structure. The analysis examines the company's current product and service offerings, market position, strengths, and weaknesses within the construction industry. It also identifies emerging trends and recommends potential new opportunities for Willmott Dixon, considering factors like environmental policies, market fragmentation, and government support. The report concludes with an executive summary, providing key findings and recommendations for the company's senior management to improve its business strategies. The report also discusses the competitive landscape, and financial performance of the company in the market. Overall, the report aims to provide actionable insights for Willmott Dixon to enhance its market position and achieve sustainable growth.

Running Head: Management
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Willmott Dixon
Business
4/17/2020

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Executive Summary
The assignment is related to re-evaluate the business model of the company Willmott Dixon. In
this report, the business canvas model nine building blocks has created which helps in evaluating
certain factors related to the customers, market uncertainty, working culture, finances, etc. There
were several opportunities in the construction industry that have been evaluated through this
canvas model. There were several environmental policies which are related to the landfill tax
helps the company in reusing the material and creating the opportunity for the company to
enhance its market share. Willmott Dixon adopts this model to satisfy the customer’s but
afterward, it creates many issues which have also stated in this report.

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Contents
Introduction......................................................................................................................................3
Current product and services offered by the company....................................................................3
Business Model (Nine building blocks of the business model canvas)...........................................3
New potential opportunities for Willmott Dixon.............................................................................5
Current market position, its strengths and weaknesses...................................................................5
Trends in the construction industry.................................................................................................6
Challenges and Recommendations on the business model used by the company...........................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The report is made in regards to creating a business model canvas of the company Willmott
Dixon. Willmott Dixon is the construction company that was founded in 1852 by John Willmott.
The company is a private limited company but they are earning huge profits and have good
revenues (Willmott Dixon, 2020). The headquarters of the company is in the Letch worth Garden
City, United Kingdom. The company is the privately-owned contracting which supports the
business and the residential development property. In this report, the potential opportunities for
the company will be evaluated in regards to the current product and services offered by the
company. The trends in the construction industry will also be stated and the business model will
be recommended for the company Willmott Dixon. There were several challenges faced by the
company in examining the business model which will be addressed and their recommendations
will also be given in this report.
Current product and services offered by the company
The company deals with several property projects and provide residential development services.
The major projects of the company in which recently they are working are Brantford FC’s which
will due to complete in 2021. The company is also working in one more project which will be
due in 2024 working with poplar HARCA to redevelop the Avertedly village. The company also
has completed several; projects in the year 2018 which are refurbishment of Alexandra Palace
and at the Twickenham Stadium fit-out of the new hospitality suite (Johnson, et al., 2011).
Business Model (Nine building blocks of the business model canvas)
The company Willmott Dixon adopts the nine building blocks of the business model canvas
which is strategic management helps in evaluating the value proposition of the product and also
describes the customers, finances, and infrastructure of the company (Markides, 2012). The
company Willmott Dixon uses this business model as it has several benefits such as tis model
focuses on the how to get their projects to the customers and helps in giving the competitive edge
to the company. This model is clear and concise so it helps the company to expanding their
business and communicating easily with the partners, investors, contractors, employees, etc.
The major benefit of this business canvas model is that it helps in targeting the customers’ needs
and forces to think company beyond their product. This business model reduces the risk of
failure for the company so it helps them to execute their idea in the market. The company can
make effective marketing strategy through this business canvas model as it connects the dot
between the customers segments, value proposition and the revenue streams. It is the scientific
framework with the tested methodology so it is the powerful business model which helps in
making the business operations more effective and increasing the profit.

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Source: marketing.com
Value proposition: The value position of the company is to serve the market with the new
infrastructure projects by underlining the quality over quantity. The value proposition of the
company is to create social value and sustainable futures so that the value of the customers and
partners can be created (Hall and Roelich, 2017). The value proposition of the company is to
deliver their projects on time and make the company stand pout from their competitors. The
company also promises to use the high quality of the products and deliver goods services to its
customers.
Customer segments: The people who are in the need for construction of the new buildings in
the UK and want to renovate the old buildings by altering and some additions are the major
targets of the company. The target audiences are the high or the lower class people which can
offer the value to the construction projects. There are several customers segment for the
company such as industry, commercial, infrastructure, private and public housing, etc. The entire
industry segment has also further classified by the company in commercial office, retail, public
health, etc.
Channels: The value position of sustainability is delivered through green technology channels.
The company uses mobile SMSs and YouTube channels to deliver social value to targeted
customers. Channels are the way through which the company communicates to their customers
so Willmott Dixon uses the channels of Email, Mobile, etc. to communicate with the contactors,
architects, house builders, etc.
Customer relationships: The company Willmott Dixon has secured and good relationship with
the customers as they have maintained the long term relationship by sharing the social values and
the sustainability relationships (Michelini and Fiorentino, 2012). The customer's satisfaction
level is higher in the company as they provide great services to them and also deliver the

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construction projects on time with the outstanding work. The company has the close relationship
with their clients and contractors and they also addressed the customer relations problems.
Revenue streams: The revenues in the company has enhanced by targeting the customers. The
company Willmott Dixon has a good revenue stream which leads to high-profit growth. The
company has increased its turnover by more than 6% from the last year. By targeting the more
customers and raising the prices the company has enhanced its revenue streams. The revenue
streams of the company is also enhancing as they are delivering the best services at the set
timelines.
Key resources: The Company has enough resources to run its functions and operations
effectively. The company has enough cash and has good profits so they can but the materials
easily. The company also has the enough employees and human resources that they can complete
the projects on time. Willmott Dixon have good products, materials, tools, equipment’s, plants,
subcontractors, space and facilities which helps them in enhancing their profit in the company.
Key partners: The Company has made a partnership with several people which help the
company in making them successful. The company has the supply chain partners through which
they have collaborated to provide continuous improvement in the company (Piller, et al., 2015).
The company also has done the partnership rebrands as Fortem which helps in improving the
technology and innovation. The major key partners of the company Willmott Dixon the
government of the UK, suppliers, manufacturers and the other non-consumer entities.
Key activities: The key activities essential for the company for enhancing their business is
related to the managing the carbon of transport and to give the values more to the sustainability,
partnership, innovation and people (Todeschini, et al., 2017). The company operates those
functions only which are sustainable to the environment and carbon management. Willmott
Dixon performs certain activities in the company which is related to the excavation, backfill,
fixing footing and Colum steel, etc.
Cost structure: There were several costs which are associated with the construction of the
project such as labor, material and the overhead cost in the construction project. There were
several other costs are also included such as architectural cost, engineering design cost, etc. The
cost structure in the company Willmott Dixon is undertaken at the time of the realization of the
building project. The cost and expenses in the company is related to the construction of the
capital improvements.
New potential opportunities for Willmott Dixon
Several new opportunities have created for the company as the UK is the third major home
market with Japan and the US so they are highly fragmented and creating the opportunity for
enhancing their market. The government is supporting the construction companies with the
finances so that with the new infrastructure the economic growth can be sustained. There is also
the greatest opportunity for the company Willmott Dixon in the UK due to the changes in the
transport facilities which helps in innovating their infrastructure projects in an effective way
(Jensen and Sund, 2017).

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There were several environmental policies which are related to the landfill tax helps the company
in reusing the material. The company can also attract potential clients by promoting urban
regeneration which helps in carrying out new projects back into the cities. In the construction
industry, the company Willmott Dixon does not have to start the new projects every time but
they also have the opportunity for the refurbishment and to renovate, make some additions,
alterations, and repairs for the existing infrastructure (Metallo, et al., 2018). Even the company
Willmott Dixon also has the opportunity that they have the well qualified trained and
experienced civil engineers which help them in rising strongly in the coming years.
Current market position, its strengths, and weaknesses
Market position
The market position of the company Willmott Dixon is high in the UK market and they have the
best skilled and experienced employees. It is considered that in the UK for the employees the
company is the best fourth place to work and it was forecasted that the company is attaining a
higher growth with the 1,3% (Willmott Dixon, 2020). It was also forecasted by the construction
skills network report that it will create several jobs in the UK in the upcoming next five years.
The revenues of the company are increasing from the last year with 6% have become the top
company with a turnover of £1 billion. Willmott Dixon has also created a good market position
due to the building structures from schools to hospitals throughout the UK. In the year 2018, the
operating profit of the company was £36.0 million and the net income of the company was £30.0
million.
Source: willmottdixon.co.uk
Strength
The major strength of the company Willmott Dixon is focused on contracting delivery on time
and gives string results. The major strength of the company is that they are sustainable and also
thrives their company and employees towards it. The company is also specialized with

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experienced and trained civil engineers who help in developing construction projects more
effectively (Hoveskog, et al., 2015). The company also has good earnings growth so they do not
lack the money and have a solid cash position to deliver the things on time. The company has
also increased its market share so employees want to work with the company as they have solid
profit growth.
Source: willmottdixon.co.uk
Weakness
The company Willmott Dixon also has a certain weakness such as due to the present scenario the
market of real estate is declining and it is affecting the performance of the company. In recent
year 2019, the company has incurred the loss due to the decline of the economy. People do not
have enough money in the UK to spend over the construction projects and due to which the
company does not have enough projects to work on (Cirjeveskis, 2017). The company also does
not have the financial strength to compete against European rivals like France, Italy, etc.
Trends in the construction industry
Due to globalization and improving technology, there were several yearends which have
enhanced in the construction industry. There was much equipment and tools used which make
the construction work quite easy and even provides safety. In the company Willmott Dixon, the
trend of Modular & Prefabricated Construction is enhancing which makes the infrastructure
looks more unique and adorable. The trend of doing the construction with sustainability is the
major and the company Willmott Dixon is even following that.

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Source: (Willmott Dixon, 2020)
The trend of green technology in the construction is emerging rapidly which uses the material of
the construction which is more efficient to the environment. The green technology will help the
company in conserving the water, reducing emissions and consuming less energy. The
companies of the construction industry are investing in green technology to slow down the
greenhouse effect (Gudiksen, 2015). Another major trend that has seen in the construction
industry is related to the increasing material cost and decreasing the labor force which impacts
the construction company.
Source: Trends in the construction industry
Drawbacks were seen in the plan and risks of adopting a new strategy
The strategy recommendation for the company is that they should use nine building blocks of the
business model canvas and the other business models also so that the drawbacks found in this
model can be recovered from the other models. By adopting the new strategy and the business
model the company has to face the risk as they have the change the whole plan and procedure.

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The risk is related to a lack of diversity and skills in the new strategy which can affect the
performance of the company (Ju, et al., 2016). The drawback of the plan is that it mainly focuses
on the customers and their values and other factors are not considered.
Challenges and Recommendations on the business model used by the company
The business model is used to improve the profits of the business in the market and attract the
customers towards the products of the business. This model includes a plan in which customers’
requirements get fulfilled and tried to give them valuable products and services. The business
model canvas is a strategic management tool that manages the overall strategies of the
organization. But this model includes several challenges in the business as it is based on the
customers and their demands. It affects the overall business process and creates many problems
and issues in the overall process of the organization (Kohler, 2015). Willmott Dixon adopts this
model to satisfy the customer’s but afterward, it creates many issues in the business strategies.
Source: willmottdixon.co.uk
The main challenges occurred in the process of the business model includes:
 One of the main challenges occurred in the use of this model canvas is that it creates a
lack of information like it cannot includes the proper information of the business
strategies that include the information regarding the finances, information related to the
customer relations, information related to the value of the products and the information
regarding the demands of the customer (Zhao and Balague, 2012).
 The other important challenge faced by the organization is using the nine building blocks
of the model includes market uncertainty. The market uncertainty creates problems in
market behavior and affects the prices of the product. As per the information, it has been
analyzed that market price is based on the available knowledge and it creates uncertainty
in the overall market. This creates instability in the market of Willmott Dixon (Ojasalo
and Ojasalo, 2015).

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 The risk of the failure of the business occurs in the overall business. The economy of the
business is also affected by the uncertainty in the market and it is generated by the use of
the nine building blocks of the canvas (Sun, et al., 2012).
 The overall working culture is also affected by the use of the nine building blocks of the
business model canvas. Due to the use of the nine building blocks of the canvas. The
business needs to change the culture of the working and it creates many differences in the
working culture. All the working culture is too important in business management as
changes in the culture create many problems in the overall organization and affect the
overall process of working in Willmott Dixon.
As per the above challenges, the organization needs to adopt several recommendations to
reduce these challenges. Some of the main recommendations are:
Use of strategic planning development
Strategic planning development is one of the better recommendations used to improve the overall
planning of the nine building blocks of the business model. This improves the planning of the
operations of the different aspects of the business organization (March 2009).
Understanding the competition
The business organization needs to analyze the level of competition in the market and then
applied the business model so that customer relations can be managed. The competition analysis
provides several benefits in the use of the business model.
Portfolio of business models
The business model portfolio needs to maintain the overall strategies of the business and these
increase the overall profits of the business achieved by the use of the model (Engelken, et al.,
2016). The portfolio is responsible to determine each strategy of the business model.
Understanding Customers
The organization needs to understand the customer’s point of view so that their demands can be
easily fulfilled and the organization achieved customer satisfaction.
Proper Alignment
The proper alignment of the business is also necessary for using the business model in the
organization and this business model is all based on the proper alignment of the business
(Sinfield, et al., 2012). By adopting the proper alignment, the organization improves the overall
strategies of the business that provide several benefits to the organization.
Strategy Diffusion and co-creation
The strategy diffusion and co-creation of the business is also a major part of the business model
as this process helps to maintain the business model in the different categories and increases
overall profits of the business that is gained by the use of the business model (Rusu, 2016).

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Conclusion
From the above report, it is concluded that Willmott Dixon a major construction contractor with
higher revenues and profits. The company has a good market share in the UK which has stated in
this report. In this report, the business model canvas has explained with the nine building blocks
which help in evaluating several business opportunities for the company. In this report, the
wbesite of the company is thoroughly studied and the new business opportunities are
recommended. There were several challenges the company has faced while creating the business
model and the recommendation has also given to improve the working cultures, uncertainty and
the finances of the company. The business model canvas is a strategic management tool that
manages the overall strategies of the company. The market position of the company Willmott
Dixon is high in the UK market and due to the trend of green technology the company is
increasing its revenues.