Comprehensive Business Model Report: Jet.com Analysis

This report provides a detailed analysis of Jet.com's business model, examining its structure and operations. It begins with a concise description of the e-commerce company, highlighting its focus on grocery items and its acquisition by Walmart. The report then delves into the business model canvas, outlining key partners, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. It further explores the relationships among the nine building blocks of the business model, emphasizing their interconnectedness. Critical success factors are identified, including the importance of pricing strategy and customer acquisition. The report also discusses potential downside risks and proposes changes to the business model, such as website improvements and expansion strategies. The conclusion summarizes the key findings and emphasizes the dynamic nature of the e-commerce environment. Finally, the report includes a list of relevant references supporting the analysis.

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Contents
Introduction..........................................................................................................................3
A succinct description of the business.................................................................................3
Business model Canvas.......................................................................................................4
Key relationships across the nine building block................................................................5
Critical success factors........................................................................................................6
Downside risk......................................................................................................................7
Changes to the business model............................................................................................7
Conclusion...........................................................................................................................8
References............................................................................................................................9

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A succinct description of the business
JET.com is an e-commerce company which specifically deals in a grocery. It was started
as a startup in 2014 and eventually grown over a very short span of time (Perez 2014). It
is a home for all household grocery items whichever are required by a homemaker. Also,
the company has been acquired by WALMART and is officially a subsidiary of it. Being
an e-commerce company it provides all of its services online to its customer associated
with it. Operating on a very large scale and growing as a grocery company in a short span
of this e-commerce website has gained a large number of customers who are dedicatedly
associated with it. The business entity is making use of Graphic Clip-boards for making
the products available in an innovative manner. In this innovation the customers if
searching for a product can search the products by uploading the image on Web-portal of
the company. The related options are made available and customer can make choice as
per their convenience.
Further concerning with its market, so it operates online through the internet so its market
is categorized as the virtual market. There is still no existence of its store physically. But
its competitors are alibaba.com, amazon.com etc. just like them it operates but it became
a subsidiary of Wal-Mart as for now.
Business model Canvas
A business model is such on which a company operates. Every organization consists of a
complete structure upon which its operations are conducted (Roberts, Earnhardt &
Herron, 2017). The following is the business model canvas in regards to Jet.com:
Key
Partners
It is totally
associated
with
WALMART as
its subsidiary
Key
Activities
Key activities
are related to
an online sale
of grocery
items to
Value
Proposition
 The needs
and wants
of
customers
are taken
care by
Jet.com in
Customer
Relationship
s
Maintaining
the
relationship
with customers
Customer
Segments
Jet.com have a
very defined
customer
segment as
for now as it

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but first, it
started as a
whole
eventually it
merged under
it.
people in the
US so as to
earn a
maximum
amount of
profit (Fan et
al., 2017).
a very
appropria
te manner
so that
there is
growth in
business
as well. So
as to do it,
it uses a
very good
pricing
algorithm
so as to
attract
and
satisfy
with the
value of
money
they pay
for the
products
is as similar as
to take care of
your
belongings (Ng,
2017). After
sale services
and return
policy of
Jet.com is very
good that
customers feel
reliable while
buying any
products from
the website.
is an e-
commerce
website so it
is available to
many people
on a large
scale
whosoever
has access to
the internet in
the US. People
who are being
targeted by
WALMART
are similarly
important for
Jet.com as it is
a subsidiary
of it (Zhang,
Sun, & Lyu
2017). Mainly
the females
are targeted
as they are
more
concerned
about the
factor to buy
grocery for
houses.
Key
Resources
The key
resources of
the company
are its
products,
people,
finances it
acquires as it
is a subsidiary
of the giant
company
WALMART it
is in safe
Channels
There are
several
channels of
communication
, products
distribution,
and sales
through which
a company sell
its products
(Remane et al.,
2017).
Likewise,
Jet.com uses

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hands in the
name of
resources.

online means
to reach to its
customer and
deliver them
through
courier and
various
channels of
distribution.
Eventually, all
the other
segments
such as
children men
etc. are also
targeted.
Cost Structure
Costing structure is very much
authenticate and expertly driven upon
which the customers can rely and
totally be in a composition of (Rüb,
Bahemia, & Schleyer 2017).
Revenue Streams
The company is already working on a
very reliable pricing algorithm which
returns the company in a very
proportionate manner that it supplies
satisfaction to a customer as well as the
cost of goods is also actualized
(Sathananthan et al., 2017).
Key relationships across the nine building blocks
Each and everything in a business whether it is retail or online operates with integrity. It
is considered as a wholesome of the success which a business acquires in a market. It is
very obvious that nine block business model activities are also related to each other
because to reach on top Jet.com requires a package of all activities in a proper manner.
Alone a single activity cannot lead to its success in the market (Tonchev et al., 2017).
Hence, all of the activities in nine block model are related to each other.
The further key relationship in nine block model is that it is working wholly upon a single
firm’s function and that is Jet.com. Wholly it possesses coordination among function
after function which is really important for the company to grow as a whole from each
section of it (Dudin et al., 2015). Likewise, there is a relationship between the function
that if one will prevail another will be its successor which is shows how much a function

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is dependent on another in terms of compatibility. The whole company is working upon
interconnected functions like these which is a factor for responsiveness and reliability.
So, as these functions are really significant for the firm to have proper functioning of its
operations.
Critical success factors
Success factors are those factors which help a firm to reach its mission which has been
set by the management. In other world critical analysis of this factor includes two
subsections that are key result area (KRA) and key success factor (KSF). Simultaneously
for Jet.com the key success factor is to provide and reach a large number of customers as
well as the key result area is to perform better as a e-commerce website to reach its goal
by targeting the customer through a pricing strategy. This will aid in attracting the
customers through the website to maintain long-term relationship with them.
In order to gain sustainable success, Jet.com needs to focus on very critical factors such
as the area upon which it is trying to target and the success factor it is keeping aside for
its strategy. As it is working on the pricing strategy which means its way of targeting its
customer is through giving them value for the price they pay. As a subsidiary of
WALMART, it has to work very enthusiastically upon these factors as they play a very
important role.
Plan, process, people, power and contingency strategies, these all are the factors which
come under critical analysis and play a very important role in success for a company
(Onken, & Campeau 2016). Planning is forecasting future which wholly means setting up
the goal, mission and vision for the company and also the norms upon which the
company will operate on long-term basis. Downside risk
The downside risk is a risk associated with the losses which might incur while a company
is working. In regards with Jet.com contribution to downside risk will be done through
various strategies where it works upon the best pricing strategy also it has the best parent
company under which it is working as a subsidiary (Muzellec, Ronteau & Lambkin,
2015). Hence, the chances where loss may incur would be dealt in such a way that the
company will not face any downfall in operations. Likewise, maintenance of provident

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funds and reserves is a must. The actualization of the financial resources in such a way
that if any downside situation occurs it can be faced properly.
Changes to the business model
In case of Jet.com there are various changes that can be introduced and which will make
the company grow worldwide. First, renovation of the website from time to time and
making it more attractive those customers get attracted towards it. Second, user-friendly
website so that no one faces any kind of problem while operating it. Also the after sale
services of the company must be at a very high level those customers are satisfied fully.
In order to maintain the decorum of the company, all the engineers and workers who are
working for it must be very much appropriate and they must also be satisfied because a
good team always leads to success.
I would like to keep the algorithm strategy of pricing as it is very fascinating and
attractive (Sathananthan, 2017). Also, the company might work on factors such as
building its physical stores as well as the Amazon is doing which will be really beneficial
for it. Despite being wholly relying on the pricing strategy it will also work upon various
other sections where there is required like- development of business in various other
countries, targeting every age group, planning to expand the section in which the
company is operating, can also launch something new in association with it etc.
A business model of Jet.com is consistent and it is up to date and the concentration must
be more on maintaining it as the environment upon which it is working is very dynamic
and ever-changing and as each one of us knows that change is inevitable when it is
concerned with business entities. There may come situations where a company might
face any kind of problem so my preferably focus would be on planning and forecasting
the future at an urge so that there is no problem arises which is unable to handle by the e-
commerce website.
The secondary focus would be upon the competitive strategy as the rivals are more in this
field. And hence to maintain the long-term operations it is very necessary for it to have
better strategies as compared to rivals.

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References
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N. (2015). Business model canvas as a basis for the competitive advantage of
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Perez, S, (2014). Quidsi co-founder raises an additional $20m for his new e-commerce
biz, Assessed on 23rd March 2018, https://techcrunch.com/2014/09/16/quidsi-co-
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