Assessment of Gleam's Business Model: Success Factors & Risks

This report provides a business model deconstruction of Gleam, an Australian startup founded in 2013. It includes a business model canvas analysis, identifying key partners, activities, value propositions, resources, cost structures, revenue streams, customer relationships, channels, and customer segments. The report also examines critical success factors such as innovation, unique selling proposition, social media presence, and branding/marketing strategies. Furthermore, it identifies potential downside risks, including market risk, product risk, and financial risk. The report concludes with recommended changes to enhance Gleam's business operations and competitive advantage, such as leveraging digital technology, fostering continuous innovation, and expanding the distribution team. This study offers valuable insights into the dynamics of a startup's business model and its potential for growth.

Assignment 1: Business Model Deconstruction
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Table of Contents
Introduction................................................................................................................................3
Description of the Business........................................................................................................4
Business Model Canvas.............................................................................................................6
Key Relationships......................................................................................................................7
Critical Success Factors.............................................................................................................9
Downside Risk.........................................................................................................................11
Recommended Changes...........................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
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Introduction
The report study examines the business model deconstruction of a chosen organisation. The
organisation which is selected is named as “Gleam” which is Start-up Company of Australia
established in 2013. The report comprises of the business canvas model of selected business,
key relationships, critical success factors, risk and changes required.
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Description of the Business
The company which is selected for the critical assessment is Gleam. The company has been
founded on 1st April 2013. Gleam has been a privately owned Australia organisation which is
situated in the Melbourne, Australia (Gleam, 2018). The Gleam Company comprises of the
fully remote team across all over the worldwide. In addition to this, the company has such
growth power which covers nearly 1M+ businesses consisting of all shapes and sizes across
worldwide. The innovation at Gleam reflects of the mobile fashion discovery as well as an
intelligent platform which are engaged in bringing the connection among style lovers and
industry. It helps the style lover as well as the market industry in reaching to the next level.
Gleam is able to gain competitive advantage through satisfying the customers need and
engaging of their customers (Gleam, 2018). The below picture reflects the appearance of
company’s website.
Figure 1: About Us
Source: (Gleam, 2018)
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Figure 2: Last Month Rank of Gleam
Source: (Startupranking, 2018)
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Business Model Canvas
The business model canvas has been shown below with the help of diagram presented below:
Figure 3: Gleam Business model canvas
Source: (By Author)
The above diagrammatic representation shows the nine key elements relating to the business
model canvas of Gleam. The nine building blocks represent of the key relationship of
business organisation in the context of their partners, activities, resources, value proposition,
customer relationship, channels, cost structure, revenue streams and customer segment
(Osterwalder & Pigneur, 2010). The business model canvas helps in boosting the
performance of the company and leads to its growth in near future. For starting up of any
business entity it is must that these nine blocks must be significantly considered by the
company. The nine building blocks represent the organisational structure which is existing
within the organisation. These are the key components when it comes to leading to
organisational change and success. There is a significant key relationship of the nine blocks
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of business model canvas for the business organisation. This is so because it is helpful in
gaining the competitive advantage for the company (Osterwalder & Pigneur, 2010).
Key Relationships
Moreover, the specification of each and every nine blocks is made below:
Partners – The partners are the collaborators of the company which helps in
maintaining of the external relationship. These are basically the stakeholders of the
company which performs over the external functioning of the organisation (Fleming,
2016). Gleam which is a start-up company has a team of distributors.
Activities – It involves a list of activities which is the company is aiming to
perform innovatively. Gleam also has an innovative activity which is related to the
discovery of mobile fashion. The company also has activities such as marketing,
strategy formulation and many others which are helpful in attaining a specific
objective.
Value Proposition – The value proposition provides with the innovation, service
values or features created during the delivery of product and service in order to attract
the customers (Fleming, 2016). Gleam is engaged in fulfilling the customer’s needs
by the way of providing the innovative product.
Resources – It states the resource required for carrying out of the business
activities. There are a lot of resources required by the Gleam for carrying out its
business operations. Such as human, physical, systems, finance, technology, mobile,
software expert and many others.
Cost structures – It is referred to as the cost incurred within the business
operations. In case of Gleam Company, the elements of cost structure comprise of the
research and development expense, advertising or marketing expense, employee’s
salary, technology cost and many others (Cooper & Vlaskovits, 2010).
Revenue Structure – The revenue is generated through online mode of payment.
Customer Relationship – It involves maintaining of loyal customers so that a
healthy long-term relationship can be established with them.
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Channels – It is one of the most important elements which state the medium or
channel through the product can be delivered or marketed to the customers. As the
sales and demand have a direct relationship with the channel used by the company.
Customer Segment – This is helpful in knowing that which customer segment
have to cater so that the company can grow and prosper (Cooper & Vlaskovits, 2010).
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Critical Success Factors
The critical factors help the organisation in leading towards the business to move in the right
direction. The success factors ensure attaining of the desired aims and objectives of the
business. The factors are as follows:
Source: (By Author)
Innovation – In any of the business organisation innovation is the key part which leads to
attaining the desired aims and objectives of the company effectively and efficiently (Cooper
& Vlaskovits, 2013). In the context of the company Gleam, who is providing the innovative
products and services to its customers by the way of using technologies? This leads to
providing an innovation and growth to the company.
Unique Selling Proposition – USP is a significant element which helps in providing the
difference to the organisation. It creates a competitive advantage to the company for
differentiating itself in front of other competitors. Gleam has a lot of competitors and in order
to overcome with the competitive spirit, the company uses its USP to place distinctive
position in the market (Cooper & Vlaskovits, 2013).
Social Media – The Company has used of various social media tools and network in order to
market and promote its brand within the marketplace. It also helps in building a good brand
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Innovation
Unique Selling
Proposition
Social Media
Branding and
Marketing

image for the company. Presently, Gleam makes use of Facebook, Twitter, Google, LinkedIn
and many others. The social media help in improving the company’s ranking in the
marketplace to a greater extent. This is also one of the success factors for the company in
leading to growth and development.
Branding and Marketing – The marketing and branding of the product matter a lot in
attracting the customers and therefore, the company should formulate the strategy
accordingly. The way in which the brand is marketed in the market is essential for creating
demand (Stuart and Anderson, 2015).
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Downside Risk
The risk is referred to the uncertain situation caused by a company which can hamper its
growth and profitability to a greater extent. When the company is newly established in the
market it has to face various types of risk (Stuart and Anderson, 2015). In case of the selected
company Gleam which is just established five years back only is exposed to certain types of
risk which are as follows:
Source: (By Author)
1. Market Risk – The knowing of customer and market demand impacts a lot and
creates risk for the company. As the company is new to the market and the customers
will not easily be forecasted and satisfied (Collis, 2016).
2. Product Risk – It is related to deciding on what to sell in the market is very
crucial. The designing of the product must be very specific so as to increase the
demand for it.
3. Financial Risk – The initial entrepreneurs face the risk of finance and availability
of funds (Collis, 2016).
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Types
of Risk
Market
Risk
Product
Risk
Financial
Risk

Recommended Changes
From the overall assessment of the company’s profile in regards to its relation and risk
connected there are some of the useful measures suggested which will be helpful in
overcoming the challenges faced. The recommendations made below are helpful in building
tools and techniques so as to help the marketers for growing their business operations
(Baden-Fuller, 2013). The changes recommended are as follows:
The Company should make use of the digital technology in the marketing of their
products and services so that it can be demanded more frequently.
The company also should focus on keep innovating something new so that
customers are attracted towards the innovative products and can gain a competitive
advantage in front of competitors.
Formulating of strategies which attract the customer so that more number of
people can like and follow the company’s official page and come to aware of the
brand.
The company should run or organise of marketing campaigns so that their
business can grow and develop.
Wide spreading of their distribution team so that number of people can be a part
of their company.
Using and considering the innovative business model as well as technological
innovation in their offerings so that it helps in gaining a competitive advantage
(Baden-Fuller, C2013).
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