Business Model Deconstruction of The Daily Edited: A Case Study

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Business Model Deconstruction
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Contents
Introduction..................................................................................................................................3
Task..................................................................................................................................................4
1. Provide a succinct description of the business, the industry in which it operates, the
market or markets it serves, and the products and services it provides.......................................4
2. Deconstruct the business model of the selected business using the nine building blocks in
Osterwalder & Pigneur’s canvas.................................................................................................4
3. Explain the key interrelationships that exist across the nine building blocks......................5
4. Identify and discuss the critical success factors the business has to get right to achieve
sustainable success.......................................................................................................................6
5. Evaluate what factors might impact the success of the business model...............................7
6. Discuss the changes you would make to the business model if this was your business.......7
Conclusion.......................................................................................................................................8
References:......................................................................................................................................9
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Introduction
The report includes an understanding and knowledge about the business model. It will provide a
brief discussion about the business organization, its products and services about the industry it
operates its business in, and about the marketing conditions. The report will include discussion
about The Daily Edited which is a fashion brand company. The report will include
deconstruction of the business model of The Daily Edited using nine building blocks in
Osterwalder & Pigneur’s canvas and the key interrelationships between them. The report will
also include the success factors in order to achieve sustainable success and the impact of these
factors on the business model. The report will also include the changes to be required in the
business model.
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Task
1. Provide a succinct description of the business, the industry in which it operates, the
market or markets it serves, and the products and services it provides
The Daily Edited is an Australian fashion company which sells its products both in-stores and
online. The company covers market segments of Australia, USA, and Singapore. It sells its
products which cover in the retail industry. The products which The Daily Edited offers to its
customers include stationary and desk accessories, personalized men’s and women’s leather
goods, including clutches, phones cases, bags, overnight bags, pouches, and diaries. The
company was formed with an innovative idea of producing customized and embossed goods and
selling it at an affordable price to attract its customers and increase its goodwill in the market and
expand its business in other international borders.
2. Deconstruct the business model of the selected business using the nine building
blocks in Osterwalder & Pigneur’s canvas
The business model using the 9 building blocks comprises of key resources, customer segments,
revenue streams, channels, value propositions, customer relationships, key activities, cost
structure, and key partnerships. It is important to deconstruct the business model because it helps
in visualizing the important and essential factors and influence the users to address and focus
upon the key areas (Massa, et. al., 2017). The business model canvas can be used by the
employees and/or by the other team members of the business organization to analyze and
understand the relationships and make an agreement.
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The business model of The Daily Edited using the nine building blocks:
Key Activities:
To provide
personalized goods,
men and women
leather products,
etc.
Key Partners:
Aaron Favaloro
Customer
Relationships:
Personal selling, by
forming communities,
etc.
Value Propositions:
By analyzing the
needs of the
customers and trying
to solve their needs by
producing goods
according to their
needs.
Customer
Segments: Entering
into the new market
segments with
innovative and new
products and
services
Key Resources:
Financial
Resources,
Workforce, etc.
CHANNELS:
Delivery agents,
Vehicles, etc.
COST STRUCTURE:
Payment of the salaries to the employees,
Payment for IPR,
Advertising cost, etc.
REVENUE STREAMS:
Leasing and renting activities,
Licensing,
Advertising,
More usage of assets, etc.
 Customers Segments: The Daily Edited would focus on new customer segment by
entering into the new market segments with innovative and new products and services.
 Value Proposition: The Daily Edited analyzes the needs of the customers and tries to
solve their needs by producing according to their needs and preferences.
 Channels: It will improve their delivery channels by recruiting more delivery persons so
that the customers get their products on time.
 Customer Relationships: It will improve its relations with customers by way of personal
selling, by forming communities, etc.
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 Revenue Stream: The Daily Edited will engage in leasing and renting activities,
licensing, advertising, more usage of assets, commission charges, etc.
 Key Resources: The Daily Edited will use its financial resources to produce more
innovative products and take intellectual property rights.
 Key Activities: The key activities of the company are to provide innovative and
personalized products to the customers, solving their problems by satisfying their needs,
etc.
 Key Partnerships: The key partnership of The Daily Edited is with Aaron Favaloro so as
to produce a collection of leather accessories.
 Cost Structure: The cost structure of the company includes payment of the salaries to
the employees, payment for IPR, advertising cost, etc (Ju, et. al., 2016).
3. Explain the key interrelationships that exist across the nine building blocks
The nine building blocks of the business canvas model help the companies in determining the
various aspects of the company which affects the revenues and profits of the company. The nine
building blocks analyze the new market segments in which the company shall launch its products
and services and helps in determining the potential customers. It provides with the information
about the available partnerships of the company and what are the key activities the company is
involved in. There is a relationship between the nine building blocks which links all the blocks
with each other. And if the company makes modifications in any of the blocks, the other factors
will also vary. The nine building blocks help the Daily Edited in the implementation of the
strategy by analyzing the policies, procedures, practices, organizational culture and structure,
system, etc. These blocks are used to determine the modifications which the company shall make
in order to attain greater growth and development and improve its revenues and profits by
controlling its cost expenditures. The model analyzes all the factors which are necessary to
consider while taking important decisions. Each of the blocks of the model is essential to take
into consideration so that the company can determine whether it is beneficial for the company to
take the specific decision or not (Olah, et. al., 2018). For example, it the Daily Edited plans to
enter into a new market segment, the cost structure will change; there will be an addition in its
key activities, the customer relationships will improve, its distribution channel will improve, and
so on.
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4. Identify and discuss the critical success factors the business has to get right to
achieve sustainable success
There are various success factors which help the companies in achieving sustainable success.
Some of them are:
1) Collaboration and Partnership: The sustainable development focuses on partnership
and collaboration. The sharing of ideas, thoughts, resources, practices, etc. encourages
the development and growth of the company. It helps in reduction of competition and
encourages collaboration among them as well. Partnership and collaboration help in
saving cost and resources and aid in achieving sustainable success.
2) Increasing the market share: Another important factor which helps in achieving
sustainable success in increasing the market share by entering into the new market
segment after considering the potential customers and target audience. The expansion of
business in the new market will help in improving the productivity of the company, its
goodwill, revenues, and ultimate profitability.
3) Employee engagement: The employee engagement, organizational change, etc. helps in
changing the business performance and influence employees to be more productive and
effective.
4) Leadership commitment: For the successful achievement of sustainability, it is
important to have leadership commitment. This aid in building trust among the
employees and helps in taking the risks and adapting the changes.
5) Local needs: It is important for business organizations to focus on the local needs of the
people by conducting analysis and fulfilling their demands. The company must conduct
analysis to determine the unmet needs of the customers and take corrective measures to
produce products which can fulfill their demands.
6) Think long term: The Company shall make long term plans and achieve the same. The
Daily Edited shall take steps to determine the factors which influence the success of the
business. In order to achieve sustainable success, the company shall identify these factors
and take measures to overcome the same to accomplish organizational goals and
objectives (Pandey, et. al., 2016).
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5. Evaluate what factors might impact the success of the business model
There are several factors which affect the success of the business model. These factors include:
1) An innovative and creative business idea: It is essential for companies to have an
innovative idea to attract more customers and provide them with unique and
differentiated products.
2) The building of relationships: To have a successful business model, it is important to
build relations with the employees and customers. The building of relationships helps in
the building of trust and bond.
3) Hard work: The business organization should focus on the accomplishment of the goals
and objectives by working effectively and by focusing on improving their productivity
(Carayannis, et. al., 2015).
6. Discuss the changes you would make to the business model if this was your business
The business model is prepared with the purpose of determining the factors affecting the success
of the business. It is essential to consider all the factors while determining the success, its
revenues, and profits. The changes in the business model might include focusing more on the
competitive strategies to survive in the market against the existing and established competitors
and making changes in the strategies and policies accordingly. Focus more on offering
innovative products in order to satisfy the unmet needs of the customers (Teece, 2018). The
products should be tested before launching so as to match the quality of the products and
providing high-quality products to the final consumers.
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Conclusion
From the above report, it is concluded that it is essential to prepare a business model to attain the
success of the company. The Daily Edited uses nine building block methods to deconstruct its
business model and accomplish its goals and targets with higher profits. There are several factors
which should be taken care as it affects the success of the business and the company shall focus
on the same.
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References:
 Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as a
lever of organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
 Ju, J., Kim, M. S., & Ahn, J. H. (2016). Prototyping business models for IoT service.
Procedia Computer Science, 91, 882-890.
 Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model
research. Academy of Management Annals, 11(1), 73-104.
 Olah, C., Satyanarayan, A., Johnson, I., Carter, S., Schubert, L., Ye, K., & Mordvintsev,
A. (2018). The building blocks of interpretability. Distill, 3(3), e10.
 Pandey, S., Viswanathan, V., & Kamboj, P. (2016). Sustainable green HRM–importance,
and factors affecting successful implementation in organizations. International Journal of
Research in Management and Business, 2(3), 11-29.
 Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning,
51(1), 40-49.
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