Report: Business Analysis of the DWNLD Application Startup Company

This report provides a comprehensive analysis of the DWNLD application, a startup that helps users create mobile applications. It begins with an executive summary and introduction, followed by an in-depth examination of the business canvas model, including key partners, activities, customer relationships, value propositions, customer segments, resources, channels, cost structures, and revenue streams. The report then explores the interrelationships between these building blocks, highlighting how changes in one area can impact others. Critical success factors for sustainable success are identified, and potential downside risks are evaluated. Finally, the report suggests recommended changes to the business model, such as introducing a product-based revenue model, and concludes with a summary of the findings. The report is a valuable resource for understanding the business model and challenges faced by the DWNLD application.

Running head: THINK BIG
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Name of the Student
Name of the University
Author Note

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Executive Summary
The given report has thrown light on the business named DWNLD application based company.
The business was established in 2014 whereby the company started under the guidance of its two
co-founders. The product was launched after the identification of the gap between various
mobiles present and mobile applications available. The given report concentrates on the business
idea and the functions. A business canvas model had been made to analyze the various aspects of
the business and the critical success factors have also been discussed. Any causes of downside
risk which might take place have also been discussed. Certain recommendations based on the
business model have been made.

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Table of Contents
Introduction......................................................................................................................................3
The business canvas model..............................................................................................................5
Key Relationship between 9 building blocks..................................................................................7
The critical success factors the business has to get right to achieve sustainable success................8
Evaluating the causes of downside risk.........................................................................................10
Recommended changes to business model....................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The given report aims to make a critical analysis of the various aspects of the business
named DWNLD which had developed in 2014. The given report will be analyzing the nine
building blocks of the business canvas model of DWNLD and has derived the connection among
them (BusinessInsider.com., 2018). The critical success factors along with the recommendations
will be provided.
About the business
DWNLD is a startup which helps the user to create mobile applications easily and makes
them available on the App store. It was found by Fritz Lanman and Alexandea Keatig. The angel
investors had invested a huge amount of money for the development of the business.
The functioning of the application is very simple whereby the users of the application are
charged a service cost of $15 a month. By using the given services, the user can customize the
applications with easy tools (Linkedin.com., 2018). When the user has completed the designing
of the application, then the company submits the given application to the App store thereby
getting it approved. The company creates the user requested applications through an outsourced
Information Technology team.
The application was launched in September, 2014. The company has already made 5000
applications for its customers and made $14 million in the first year (BusinessInsider.com.,
2018).
The business had raised its funding from WME, The Chernin Group, Gordon Crawford,
Michael Arrington’s Crunch Fund and other media groups (Dwnld.me, 2018).

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Website: dwnld.me
The chairman of the given company is Fritz Lanman who identified the gap between the
number of mobile users and the number of applications on the play store. Therefore, they assist
the content creator to convert their social stream into a personalized app which gets published on
the play store (Dillet et al., 2018). The business model follows a subscription based model.
Figure 1: Data charts reflecting that mobile applications are use more often than the websites
(Dillet et al., 2018).
The business canvas model
Key Partners
Fritz Lanman and
Key Activities
The value
Value
Proposition
Customer
Relationships
Customer
Segments

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Alexandea Keatig
are the co-
founders of the
mobile
application based
start up.
The key suppliers
are the application
team who has
designed the
given software for
the company.
The key activities
that are performed
by the given
competitors are
management of
the business and
looking after the
fund allocation
BusinessInsider.c
om. ,2018).
proposition of the
given business
offers
convenience and
ease to customers
in order to make
unique
applications of
their choice.
The key activities
of the value
proposition
require managing
of customer data,
paperwork for the
applications,
editing tool
service and
others.
Customer
Relationship
The company
maintains the
customer
relationship by a
system of
feedback whereby
the company
devises its
services based on
the advice given
by the different
consumers.
The simple
services of the
firm are starting at
$15 for a month
and if the
customer takes a
higher package
then he is charged
higher.
The firm also
earns through
various
advertisements on
 The company
offers
convenience
and ease of
making an
application to
the customers.
 As there exists
a huge gap
between the
number of
mobile phones
and the
number of
applications
on the app
stores, the
company
wants to help
the customers
by giving
them an easy
method.
 Different
users can opt
for different
plans with the
basic plan
starting at $15
(Dillet et al.,
2018).
 Various
editing tool
are available
for the
customers.
 Other
packages cost
higher.
 The need to
make a unique
application is
being fulfilled
in the given
case.
The different
customers expect
the application to
solve their app
requirements by
helping them to
make unique
applications of
their choice.
The customers are
provided with
assistance
whereby they can
easily, using the
various editing
tools make an app
of their choice.
The app company
has been
successful in
maintaining a
healthy
relationship with
the customers and
fulfilling all their
given needs.
The market is
not divided
into specific
segments as
such. All the
customers
who are
interested in
getting their
unique
applications
made can
download
DWNLD and
avail the
services.

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the app however,
the company does
not sell apps
directly (Barquet
et al., 2013).
Key Resources
 The main
resources
required by
the firm are an
outsourcing IT
team which
helps in
development
of the given
application.
 Other
resources are
the different
business
divisions.
 The company
also has an
office which
handles all
essential
requirements.
Channels
The customers
are reached
through
various social
media
channels and
advertisement
s on the
newspapers as
well (Massa &
Tucci,2013).
Along with
this the
customers are
contacted
through
personal
contacts of the
chairperson
and the
partners.
Cost Structure
The important cost structures of the given in
the given business model are :
Technical costs
Office expenses
Legal expenses
Human Resource
Others
Revenue Streams
 The primary revenue model of the business is
the service fees that they charge from the
customers.
 The service fees starts at $15 a month for
basic minimum services.
 If the consumer would like to upgrade their
model, then they can use other services to do
so and the service fees shall change
accordingly.
 The company also earns from advertisements.

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Key Relationship between 9 building blocks
The nine building blocks of the business canvas model tend to represent the various
components of a particular business enterprise. The business model canvas gives information
about the given components which consist of the following;
 Customer segments
 Value Propositions
 Channels
 Customer Relationships
 Revenue Streams
 Key Activities
 Key Partnerships
 Key Resources
 Cost Structure.
To understand the different components of a business, the canvas is formed which
comprises of the stated building blocks. These blocks consist of detailed information about the
given headings. It can be stated that the given block components are related to one another in the
sense that a change in one of the building blocks is capable in bring out the change in another
block (Barquet et al., 2013) . This means that without one the other cannot exist.
For instance, if the key activities in an organization change then the cost structure of the
firm will also be changed. For example, if the firm like DWNLD decides to carry out all legal
procedures for the given customer without charging they then the cost structure of DWNLD
might undergo a massive change.

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Hence, the key activities and key resources of the firm tend to have a huge impact on the
cost structure. In the same manner, the customer segments which have been formed tend to
decide the revenue model of the firm. The different kinds of segments the firm has, a different
fee is charged from the consumer set (Muhtaroglu et al., 2013). For example, if the segment is a
company, then DWNLD will have a different scheme for them as they have more components in
their application. If a student is making an application related to a particular hobby or an interest
then he will be having a simple app which will have a different revenue scheme for the company.
The critical success factors the business has to get right to achieve sustainable success
The Critical success factors can be described as a management term which represents the
element of a business which is essential to enable the organization to achieve its success. The
factors tend to have an influence on the various activities of the firm which then tend to
determine the success of the organization. The organizations always aim to attain sustainable
success which will last long and keep the standing of the firm even in the future (Hong & Fauvel,
2013).
The critical success factors which DWNLD has to get right in order to achieve
sustainable success are given as follows:
Sustain successful relationships with the customers
Only when the organization is able to maintain successful relationships with the various
clients, then it will be able to foresee a sustainable future. Clients are the main reason why the
business functions and therefore, it is extremely important for the business to see to it that the
clients are treated well.
Hire experienced staff and provide them customer-oriented training

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Employees are often known as the backbone of the business and hence it is very
important for the firm to hire people who work towards the welfare of the organization and are
able to contribute well. Hence, giving them a customer oriented training is considered important.
Providing convenient after sales services to the given customers
After the application has been made and given to the customers, later on there may
surface a case whereby they require help from the business and this changes their perception
about the business (Joyce& Paquin, 2016). Hence the organization must take an effort and make
the necessary changes to enable prosperous relations with the client.
Securing finance for expansion
It is very important for the business to gather sufficient finance for their expansion. This
will help the business to have enough support so that they are able to expand their future
operations for a long term future (Kiel, 2014).
Other CSFs are as follows:
 Adhering to the changing needs of the various customers and adapt unique ideas
 Updating the service application with technological updates
Evaluating the causes of downside risk
Downside risk can be described as the estimation of the company`s potential to suffer a huge
loss due to changing market conditions. It can also be determined as the amount of loss that can be
suffered by a company (Massa& Tucci, 2013). Briefly stated it tends to explain the worst case
scenario for a business.
The following could lead to a downside risk for the business:

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 Emergence of a competitor with the same offerings but at a lower price if a situation arises in
the external environment of the business whereby a new company tends to offer the similar
services for the customers like DWNLD but with cheaper options and packages for the
customers. In such a case, the revenues of the business might get affected and the company
might have the problem of reduced business.
 Lack of customer strategy- Customer strategy tends to act as a core component of the
business firm whereby the customer needs need to be identified and the future offerings of
the firm also need to be decided upon. If it is not the case, then the business tends to fail
(Kiel, 2014). Hence, a lack of strategy could cause a downside risk.
Recommended changes to business model
The given changes would have been implemented:
1. Changing the service charge system and introducing a product based revenue model
Presently, the company charges the customers a service charge of $15 every month.
This can be changed and the company can also add a product charge for the same. The
applications ever remain static and keep changing regularly (Cochrane, 2014). Therefore,
every month the customers can pay fees of $15 for maintenance, however they can pay
nominal fees of $50 whenever the firm makes an application for them.
2. Charging separately for the legal environments to register on the Application store
The company, DWNLD also takes care of all the legal aspects on behalf of the
customers and that particular cost is included in the service fee charge. However, it is
suggested that the company can charge the customers separately for the legal services which
are being offered. This shall help the firm in earning higher revenue.

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3. Trying to make the application facility in-house.
Instead of outsourcing their app making facilities the company can hire a capable
Information Technology Team within the organization which shall enable the firm to save
costs and the required support can be given to the customer whenever necessary (Armstrong
et al., 2015).
Conclusion
Therefore from the given analysis it can be stated that the given idea of the business is
very unique and something which has been developed after a lot of research and identification of
the market gap. The assignment has made an attempt to point out certain important aspects of the
firm and make recommendations on the same.