Business Model Deconstruction and Analysis: Canva Company Report

This report provides a comprehensive analysis of the Canva business model, a free graphic design tool. It begins with an executive summary and introduction, outlining the industry and Canva's products and services. The core of the report focuses on the Business Model Canvas, dissecting key partnerships, activities, value propositions, customer relationships, segments, resources, channels, cost structure, and revenue streams. It emphasizes the interrelationships between the nine building blocks. The report then integrates SWOT and Porter's Five Forces analyses to evaluate Canva's competitive landscape, identifying critical success factors like content quality, website usability, and marketing strategies. It also addresses potential downside risks, such as high maintenance costs and skilled labor shortages. The report concludes with recommendations for improvements, including adjustments to pricing, website design, and user engagement, aiming to enhance Canva's long-term sustainability and market position. The report provides valuable insights into the business strategies and challenges faced by Canva, offering a detailed understanding of its operations and potential for future growth.

Running head: BUSINESS MODEL DECONSTRUCTION
Business Model Deconstruction
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in understanding and identifying different strategies in Canva wherein
this has helped the company in gaining competitive advantage. The different kind of
relationships between the nine building blocks has helped the company in solving such issues
with proper implementation of strategies. The main aim and purpose of the report is to
understand the changes that is required in the BMC of Canva that will help in understanding
the issues and solved them effectively as well.

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Table of Contents
Introduction................................................................................................................................3
Description of Industry..............................................................................................................3
Products and Services................................................................................................................4
Business Canvas Model of Canva..............................................................................................4
Key Relationships between the nine building blocks................................................................6
Integrated SWOT analysis on each of the nine blocks in general..............................................7
Porter’s Five Forces analysis of Canva.....................................................................................7
Critical success factors...............................................................................................................8
Downside Risks..........................................................................................................................9
Recommendations and Changes required..................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The report helps in understanding the business canvas model of Canva Company that
is a free graphic design tool website. The report will analyse the different products and
services that is developed by the respective company Canva with the implementation of
business canvas model. Proper and effective relationships between the nine building blocks
has to be analysed with integrated SWOT and Porter’s Five Forces Analysis of the same.
The main aim and purpose of the report is to identify the different kind of critical
success factors that is required to be adopted as to generate sustainability and gain profit in
the entire competitive market. Proper analysis of the risks has to be done that will help the
company in solving such issues with implementation of strategies.
The structure of the report includes the analysis of the business canvas model of
Canva Company with implementation of analysing relationships between the nine building
blocks as well.
Description of Industry
Canvas Company is the free graphic design tool website that was founded in the year
2012. The respective company uses the drop and drag format as this helps in providing access
to million fonts, graphics and photographs. Canva Company has developed the website in
such a manner that it can be used by both the professionals and non-designers as well. The
respective company was founded by Melanie Perkins in the month of January. The company
employs more than 8000 employees and there are above 750,000 users in the very first year
itself. The entire company has gained a profit of more than $AU 23.5m and this has helped
the company in increasing their revenues as well ("Collaborate & Create Amazing Graphic
Design for Free – Canva", 2018).

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Products and Services
There are different kind of products and services of Canva Website that has helped in
providing the different individuals different kind of access into different graphic or
photographs. The respective company has provided the different customers with different
kind of tools that can be used by the customers for print and web media graphics and designs.
There are other services provided by the company that includes the education or different
classes for the individuals along with their connection with the non-profit organization in an
effectual manner (Klang, Wallnöfer & Hacklin, 2014).
Business Canvas Model of Canva
Key Partner
Different web
hosting companies
Project
management
organizations
Human Resource
Management
Companies
Key Activities
Accurate
creation of
the
technological
infrastructure
Proper local
market
management
Creating
different
posters and
other designs
for the
shoppers and
creating
Value
Proposition
Continuous
kind of
feedback
provided to
the
employees
for improving
the
performance
Clear view of
the different
skills and
usage in the
Customer
Relationship
s
Self service
Automated in
nature
Customized
kind of
services
Customer
Segments
Different kind of
customers who
wants to open their
own websites
Small along with
medium sized
enterprises wherein
there are 30-100
employees

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shopper
management
Proper
maintenance
and
development
of different
kind of
software
Building
domain
expertise
company
Key
Resources
Third party
software
Sales force
Software
developers
Channels
Blog and
website
Emails and
Phone
HR Best
practice
Direct Sales

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Cost Structure
 Proper development of software
 Hosting of product
 Marketing and sales
Revenue Streams
 Customized solution for software
 Subscription based service
Key Relationships between the nine building blocks
Proper and accurate key relationship is essential in nature among the nine building
blocks of the Business Canvas Model of Canva website. The customer segments are the heart
of business wherein it helps in creating different alliances with the help of the partners. The
key activities of BMC will include different kind of core activities with proper understanding
of the value proposition of the entire company (Schaltegger, Hansen & Lüdeke-Freund,
2016).
The key resources are essential in BMC wherein it helps in meeting the requirements
of the customers and it will help in focusing on quantity such as price along with delivery of
goods and services. Proper relationship with the customers is essential in nature as this will
help in interacting with customers to understand their specific needs. The customer segments
have to be divided into target market wherein they will be able to understand their
requirements.
The channels are essential in nature wherein this will include the awareness of the
customers relating to products along with analysis of evaluation and satisfaction after the
sales of goods and services (Aversa et al., 2015). The cost and revenue streams are essential
in the organization that will provide them clear insight into the model of revenue of the
organization that will help them in gaining profit in the entire competitive market. The cost

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structure will help in understanding the minimum turnover that must be made by organization
to generate profit (Souto, 2015).
Integrated SWOT analysis on each of the nine blocks in general
Porter’s Five Forces analysis of Canva
Strengths
Business canvas model of Canva helps in providing
more focus more on the different kind of key channels
that will help them increase their business
Proper and maximum focus is provided on the
different kind of web design development projects
Weaknesses
No focus is provided to the target customers of the
company as the price of the maintenance is high and
it can be achieved by only niche market
Opportunities
The Business canvas Model of Canva has the
opportunity to reduce the maintenance costs for
bringing change in the graphic and website design
Threats
The business canvas of the other webiste company
provides more profitable version to the individuals in
an effectual manner
SWOT
There are different buyers who prefer buying the same kind of services and products at a low cost
from the competitors
Bargaining power of buyers
The suppliers in the competitive market provide same kind of services and products to customers at
a much lesser price
Bargaining power of suppliers
There is huge competition among the existing compeytitors wherein it is creating huge issues in the
business of Canva
Rivalry among existing competitors
There are differnet competitors entering into the market who is being a threat to the company
Threat of new entrants
There are different substitute products in the market that is offered by Canva
Threat of substitutes

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From the SWOT and PESTEL analysis of the business model canvas of the Canva, it
can be analysed that there are different kind of competitors and substitute products in the
market that can cause huge issues in the organization. Proper analysis is required to be done
by Canva as to understand the position of the competitors in the market as this will provide
them proper overview of their performances and analyse them accordingly. SWOT analysis
has identified different threats that has to be removed by the company with the usage of
different kind of strategies such as building the websites and graphic designs with low
maintenance costs.
Critical success factors
There are different kind of critical success factors of Canva Website Company that
includes the following:
The content of the quality is one of the critical success factors wherein the quality of
the entire content plays an essential role in converting the different visitors into
different results and this helps in directly impacting the search engine ranking as well
(Dijkman et al., 2015)
Usability of the website is the other critical success factor wherein proper and
innovative navigation that the web designer will spend on countless hours as this will
help in understanding the issues and find new solutions (Bocken et al., 2014)
Proper and accurate strategy is the third factor as this will help the company in
gaining huge amount of profit and earn revenue in the market. The business outcomes
have to be analysed by the company as this will help them in spending money on
developing websites (Foss & Saebi, 2017)
Proper strategy of marketing is required to promote the site as this will help the
company in actively building traffic by promoting the respective website and this will

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provide the customers the reason to come back to them as well (DaSilva & Trkman,
2014)
Downside Risks
There are different kind of downside risks that can cause huge negative issues to the
Canva Company that are as follows:
The changes that will be made by the company in the future can be expensive in
nature and there will be costly rework required for managing the tasks in an effective
manner. The rework is costly and there is huge maintenance as this can be huge issue
for the company
The skills and manpower are the other issue in the website graphic design company
wherein there can be scarcity of the different skilled employees and this can cause
huge issues in the organization as well (Sinkovics, Sinkovics & Yamin, 2014)
The cost of the maintenance is huge in nature wherein this causes huge issues for the
company to attract customers in the long run. Proper website development is
necessary in the company wherein the cost is ineffective in nature and this can cause
huge issues in the organization for retaining customers as well (Joyce & Paquin,
2016)
Recommendations and Changes required
There can be different kind of changes that can be implemented in the company in the
future that includes the long-term arrangement that is required to make the website interesting
and user friendly in nature. The pay that is made by the users or the customers has to be
lessened and lowered in nature as this will help the company in gaining huge amount of profit
in the market. Proper analysis is required to be done by the company wherein the

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maintenance cost is low and there is huge amount of availability of the skilled labours in the
market.
Lastly, proper design of the website is required to be done by the company wherein
the company will be able to attract more users towards their graphic designing website.
Furthermore, there can be implementation of different kind of programs organized by the
company for the different users and offers available for the ones who will be learning website
and graphic designing from their company as well.
Conclusion
Therefore, it can be concluded that there is an accurate key relationship between the
nine building blocks of the company. The different kind of strategies has been implemented
by the respective company that has helped them in implementing changes and solve the
issues efficiently. Proper critical success factors are essential in nature for the company that
will help the company in attracting more customers and gain competitive advantage.

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References
Aversa, P., Haefliger, S., Rossi, A., & Baden-Fuller, C. (2015). From business model to
business modelling: Modularity and manipulation. In Business models and
modelling (pp. 151-185). Emerald Group Publishing Limited.
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.
Collaborate & Create Amazing Graphic Design for Free – Canva. (2018). Canva.com.
Retrieved 28 March 2018, from https://www.canva.com/
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long
range planning, 47(6), 379-389.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-
678.
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.
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.
Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for
sustainability: Origins, present research, and future avenues.