MGMT20143 Assignment 1: Honee Business Model Analysis

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MGMT20143 Assignment 1 Think Big
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Executive Summary
In Australia, the numbers of start-ups are increasing day by day and every start-up has a different
and unique products or services. These start-ups are innovative and helping people in a various
ways as all of them are thinking big about Australia. This assignment is also based on a newly
opened business named Honee. Honee was founded in year 2014 by Matthew Jones. The
business of Honee is to do booking and reservation for the people who wants to get beauty and
fitness sessions by connecting them with the saloons of Melbourne. The business model canvas
of Honee will also be discussed in this assignment.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction about the company business........................................................................................4
Business Model................................................................................................................................5
a) Key Partners:............................................................................................................................5
b) Key Activities..........................................................................................................................5
c) Value Proportion:.....................................................................................................................5
d) Customer Relationships:..........................................................................................................5
e) Customer Segments:................................................................................................................6
f) Key resources:..........................................................................................................................6
g) Channels:.................................................................................................................................6
h) Cost Structures:........................................................................................................................6
i) Revenue Stream:.......................................................................................................................6
Interrelationship between nine blocks of business canvas:.............................................................8
Critical success factors the business................................................................................................9
Factors that might impact the success of the business...................................................................10
Recommendations and conclusion................................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................13
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Introduction about the company business
Honee was founded by Matthew Jones to provide fitness and beauty to the people of Melbourne
and given a spot where they can find all the perception and support regarding beauty and
wellness. It is saloon which provides all the services to its customers and clients like massage,
hairdressing, fitness, spas, etc. It was founded in the year 2014 and just in 2 years the revenue of
Honee increased by $512 and helped the team to continue its mission. Honee provided its
services in the market of consumer services and personal care services. The list of services
provided by Honee is very long and the company calls this list by the name of Honeepedia.
Some of the services listed in Honeepedia are like the facility of 24 hours gym, eyebrow and
facials, treatment for scars and acne, foot massage, hair colouring, head massage, kickboxing,
tattoo removing, makeup, martial arts, yoga and many more. Along with all these services,
Honee helps other companies to get new clients and customers by promoting their business.
Honee basically works for the three principles for the business, they are: building a good
relationship with the people, creating new connections and the business to reach more and to the
clients. Honee is a medium between the Melbournians and the beauty and wellness service
providers which do reservations for the other saloons (Honee, 2019).
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Business Model
The business model prepared is based on Osterwalder & Pigneur’s canvas in which the whole
business will get divided into nine blocks of a building (Dudin et al., 2015). For Honee, the
business model will be as following:
a) Key Partners:
Honee currently have three investors for this business, they are:
 Startmate
 Blackbird Ventures
 Melbourne Accelerator Program
b) Key Activities:
The key activities of Honee are:
 To get the customer who needs perceptions and services regarding beauty, fitness, and
wellness and connects them to the saloons.
 To do the booking for the saloons according to the sessions for the saloons according to
the sessions demanded by the customer
 To add new clients and customer for the saloons by doing their promotion
c) Value Proportion:
The things which are most valued by Honee are:
 One of the most valued points on which the business of Honee depends is the
relationship with the customers and the business owners. The company knows the value
of relations in the field of beauty and wellness
 The next value is the ease of creating bonding between the customer and the client.
 The last one is to provide the business owners a great base for connecting with the new
clients and also values the image of the brand of business owners
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d) Customer Relationships:
A good customer relationship is a key to the success of a business. For good customer relations,
Honee has following methods Greve & Schlüschen, 2018):
 Ask for the feedback about the business owner and their experience
 By providing customers clear information about their booking and expenses
 Have policies for the support of both business owners and the customers.
e) Customer Segments:
Honee divides the customers and the business owners in the various segment on the basis of:
 Whether they are from Melbourne or outside
 What type of services they want?
f) Key resources:
The resources used by Honee for its business are:
 Information about the customers
 Information about the saloons in Melbourne
 Websites
g) Channels:
For doing business, like other companies, Honee also uses channels. The channels through which
Honee do its business and increase the range of the company are:
 The website of Honee
 Magazines like Professional Beauty, Onya magazine
 Newspapers like Business news Australia
 Advertisements on other websites related to beauty and fitness.
h) Cost Structures:
Most of the expenses of Honee are invested in the following things:
 Internet
 Website designing
 Use of the latest options for user guidance
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i) Revenue Stream:
Honee make its revenue by
 Selling packages to clients and the business owners
 Promoting the business
 Getting more and more business on the website of Honee
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Interrelationship between nine blocks of business canvas:
All the nine blocks mentioned above are interrelated to each other because all the points covered
in these blocks are forming a shape for a business which can help in knowing about the areas of
expenses of the business and the income of the business. The base blocks that are, Cost structure
and revenue stream is the foundation of the building block which carries all the upper blocks, if
there is no outflow and inflow then the business will get crashed. The other blocks like key
activities will help in defining the objectives of the business. On the basis of key activities, the
key resources of the business are decided because the resources can be collected only after
determining the objectives of the business. The points mentioned in the bock of value proportion
will help in deciding the aim of the business. These aims are focused on the customers and the
clients of the company. Both key activities and value proportions help in building a good
relationship with the customers, which is the other block of this business model canvas. For
spreading the business, it is necessary to know about the customer, for this, the customer
segment block is used and on the business of the customer segment, the revenue and the cost is
decided. There is also a relation between the key partners and key resources as the partners are
the one who helps in providing the resources for the company. So, the whole blocks are
interlinked to each other in different manners.
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Critical success factors the business
The business of Honee is very innovative and unique because before this business, there were
services of like online food delivery, online products delivery but no one thought about starting a
business of booking appointments for getting massage and therapy for beauty. But this
innovation changed the thinking of the people and makes them feel luxurious by doing a
reservation for the saloon through online. The business of Honee is continuously increasing from
previous years and the customers and the clients are also growing continuously. The critical
success factors for the growth of the business of Honee is the number of business owners of the
saloons in Melbourne and the customers who are relying on the website of Honee for making a
reservation for their sessions related to beauty and fitness. The other critical success factor for
Honee is the awareness regarding the health and beauty in the society of Melbourne. If the
people get more health conscious then they will get attracted toward gyms and saloon for beauty
and getting fit. It will add a number of visitors to the platform of Honee. If more people get
connected with Honee then it will also increase the number of business owners registering their
business on Honee (Pedersen et. Al, 2018).
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Factors that might impact the success of the business
The success of a business depends on various factors like the availability of that product in the
market, the competitors in the market, etc. In the case of Honee, following are the factors that
might impact the success of the business (Mandhachitara & Allapach, 2017):
 The quality of information delivered by Honee to the customers about the saloon: This is
the factor on which the whole business of the company depends because if the
information provided by Honee is not correct then it will affect the image of the company
and it will decrease the customer. But if the information is exactly as mentioned by
Honee ten it will create a positive impact on the company.
 The network of Honee and its relationship with the business owners: The business of
Honee is completely dependent on the other saloons as it is just the medium which
creates a link between the customers and the service provider. So if the network of Honee
is large and both the service providers and the services seekers are large then it will add
the points in the field of the success of Honee.
 Develop a unique standard in the market: The business of Honee is already unique in the
market but there is the possibility that in future is a competitor comes in the same market
than it is necessary for Honee to have some unique ideas and tools that can make it
different in the mind of the customers.
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Recommendations and conclusion
The whole business plan of Honee is well organised in the market. The recommendations that
may help in creating a better base for the company are:
 Along with using website, Honee should develop an application that is user-friendly and
people can easily do their reservations by using their cell phones. It will help in adding so
many new customers and clients to the business of Honee.
 Honee can even conduct campaigns and the health awareness programs so that people
can get aware about getting healthy and staying healthy by joining the gym and various
other services that are provided by Honee.
 The other new thing that can be added to the business of Honee is conducting the contest
of beauty to promote the saloons of the business owners. In it, Honee can ask the saloon
owners to do investment in at as it will add new customers for them (Zaw, 2016).
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References
1. Bilgihan, A., & Bujisic, M. (2015). The effect of website features in online relationship
marketing: A case of online hotel booking. Electronic Commerce Research and
Applications, 14(4), 222-232.
2. Dudin, M. N., Lyasnikov, N. V. E., Leont'eva, L. S., Reshetov, K. J. E., & Sidorenko, V.
N. (2015). Business model canvas as a basis for the competitive advantage of enterprise
structures in industrial agriculture. Biosciences Biotechnology Research Asia, 12(1), 887-
894.
3. Greve, G., & Schlüschen, A. (2018). From Customer Relationship Management to
Influencer Relationship Management. In Diverse Methods in Customer Relationship
Marketing and Management (pp. 80-91). IGI Global.
4. Honee. (2019). About Us. [Online] Honee. Available at:
https://www.honee.com.au/Home/AboutUs [Accessed on April 06, 2019]
5. Mandhachitara, R., & Allapach, S. (2017). Small business performance in Thailand: key
success factors. Journal of Research in Marketing and Entrepreneurship, 19(2), 161-181.
6. Pedersen, E. R. G., Gwozdz, W., & Hvass, K. K. (2018). Exploring the relationship
between business model innovation, corporate sustainability, and organisational values
within the fashion industry. Journal of Business Ethics, 149(2), 267-284.
7. Zaw, A. Y. (2016). Leveraging Employee Engagement and Employee Performance
towards Excellent Service Quality (An action research on TMD Hairdressing and Beauty
Salon Services in Yangon, Myanmar). ABAC ODI JOURNAL VISION. ACTION.
OUTCOME., 3(2).
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