Jet E-commerce Business Model Analysis: A Case Study

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TOPICS IN INFORMATION TECHNOLOGY ETHICS ASSESSMENT ITEM 2 - ACS
CODE OF PROFESSIONAL CONDUCT
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Contents
Introduction.................................................................................................................................................3
Description of the business..........................................................................................................................4
Business Canvas Model...............................................................................................................................4
Interrelationships between the blocks in the business canvas model blocks................................................5
Critical success Factors...............................................................................................................................6
Success of the Business Model....................................................................................................................6
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
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Introduction
Innovation has become one of the most sought out factor for both new and old organisations.
This is because having innovative products or services would mean that they would possess
something unique that would give a competitive edge in the market.
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Description of the business
‘Jet’ is such an organisation which has grown in the market by using its innovative approach.
Having started in 2014 it has gained a lot of popularity since then and is starting to be realised
around the world. The main focus of this organisation is retail through e-commerce. Form this it
can be identified that the industry this business operates in is the e-commerce industry. There are
not many players that are involved in this industry but the ones that are, are dominating in it.
This organisation was placed fourth in the market in just a month or so. This business offers a
range of products being from cosmetic brands to clothing brands and even electronics. The main
mission for the organisation is to see that the customers shopping experience is easy so that they
find what they want right away and to done waste that much of time on seeing unnecessary
products. But there will be other products that the customer can look at in their free time. The
innovative part which is involved in this organisation is that the prices of the products are in real
time and adjustments are made every day (Jet, 2019).
Business Canvas Model
Alexander Osterwalder & Yves Pigneur, have developed a business canvas model that would
help these new innovative businesses. This business model is used by businesses in order to see
who the customers are that should be targeted. Other parts of the model include what are the
costs that are occurring in the business so that financial stability can be achieved. There is more
of an agility which is maintained when such a business canvas model is used. This helps in
improving the quality of work rather than on quantity. In the case of the organisation it would be
focused on providing better services to the customers rather and more number of quality branded
products that they can choose form. The main idea for designing of a business canvas model is
that the value proposition is defined which helps the organisation to focus (Joyce, & Paquin,
2016).
Jet Business Canvas Model
Key Partners
 Brands
 Suppliers
 Manufactures
 Various
organisations
Key Activities
 Designing/making
the website look
better.
 Retail, commodities
Value
Propositions
 Selections
form a
range of
products.
 Prices of
the
products.
 Fast
Services
 Ease use of
the website.
Customer
Relationship
Self service is the
level of
relationship that is
maintained.
The services are
automated.
Custome
r
Segment
s
There are
a large
number
of
customer
s as it
targets
mostly
every
Key Resources
 Inventory or
management of
warehouses.
 Development of the
Channels
 Online
 Online
Applicatio
n
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online website so
that more people
are attracted.
 Making sure that
application is
working good.
segment.
Cost Structure
The cost structure that is adopted by the organisation is cost-
driven. Minimizations of costs are done wherever it is
possible.
Revenue Streams
The main revenue source for this
organisation is through its retail sales that
are done.
Interrelationships between the blocks in the business canvas model blocks
One interrelationship that can be identified is between the customer segment and the revenue
stream. The deciding of the revenue stream is based on what the level of customers are targeted.
If more than one customer segment is targeted then there would be higher level of revenue which
will be received. This is because there would be higher number of customers that would be
targeted thus leading to a higher number of profits that would be achieved by the organisation. In
the case of Jet, the customer segment that is targeting is very vast thus the revenue which it will
receive will be also high as they will be through the retail sales that it has made.
Another relation that can be seen is between the value proposition and the customer segment.
The value proposition of the organisation is to provide a large number of products that the
customer can select from. The range of customers that the business is targeting is very large thus
the products which are available on the website should be also vast. If these two blocks do not
collaborate then the whole operations would be messed up because if there is a large number of
different customers which are going to be targeted and the availability of the range of products is
low then the organisation would face a major loss.
Key activities and key resources are another two blocks that can be linked together. The main
key activity of the organisation is retail and commodities. The number of products that the sold
by the organisation are numerous and these needs to be maintained through inventory
management. This is done through maintaining the level of products through warehouses. There
would be more than one warehouse that is maintained by the organisation in order to maintain
the large number of stock of products. This would make sure that the level of products that are
asked for by the customers would be properly maintained by the organisation. Also, there would
be different products stored in warehouses depending on the place the warehouse is set up
(Lambert, & Davidson, 2013).
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Critical success Factors
There are a number of success factors that would be required for the organisation to achieve
success in the market sector. But there are some critical success factors that would make sure
that it does achieve success. Here are some of them:
Customer Focus: the organisation should focus more on the customers rather than on it
competition. This should be done because if more focus is put on how to achieve higher
customer satisfaction then the organisation would gain a competitive edge in the market.
Innovation: probably one of the biggest success factor because being innovative will help in
attracting more customers and there would be less of time wasted on seeing why other
companies are growing and than this one.
Excellence in operations.: The level o f operation management should be up to the mark so that
the services or products which are being provided to the customers are on time and quality is
high.
Thinking: instead of planning for the short-term period there should be planning done for the
longer term so that it could be seen what will be the new trends in the market and how the
customer behaviour will change toward products (Chen et. al. 2013).
Success of the Business Model
Focus
The focus of the whole business should be decided on so that its core values can be found out.
With these core values the whole concept of the business model would be decided upon. These
core values will in help in deciding what are will be put inside each of the blocks in the model.
People
This helps in seeing what the customers are that should be targeted. This is important to see
because this block will link up with all of the other ones present. By deciding what customer
segment is that is to be targeted then it becomes easier to see what the rest of products
availability is. This is also regarding the employees which are to be hired. Since the organisation
mostly works online then there would be a huge requirement of web developers.
Finances
The model should include the best csot structure which is available for the organisation. In the
case of Jet the best cost structure is cost driven. This would mean that it tries to minimize the
costs occurring in every department. This would be beneficial for the organisation as it is still a
new player in the market and with beach cost saved it would add another innovative service for
the customers.
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Changes in the business model
There is only one change that would be required to be made in the business model which is value
proposition. There should be other factors that should be added into it like innovative delivery
services so that more customer satisfaction could be received. This would help the organisation
in its growth and give it a competitive edge in the market (Wang et. al. 2016).
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Conclusion
It can be said that there are a number of factors that should be looked at in order to see how
newly setup organisation should operate in the market. The business canvas model is one of the
bes aspects that should be adopted that will help arrange all for the activities and also give a
clearer picture of the whole organisation. In conclusion, innovation is one of the best ways to
increase the level of growth in the market.
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References
1. Jet. (2019). Why us. [Online] Jet. Available at: https://jet.com/why-shop-jet. [Accessed
on: 10 August 2019]
2. Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to
design more sustainable business models. Journal of Cleaner Production, 135, 1474-
1486.
3. Bertels, H. M., Koen, P. A., & Elsum, I. (2015). Business models outside the core:
Lessons learned from success and failure. Research-Technology Management, 58(2), 20-
29.
4. Wang, W. T., Wang, Y. S., & Liu, E. R. (2016). The stickiness intention of group-buying
websites: The integration of the commitment–trust theory and e-commerce success
model. Information & Management, 53(5), 625-642.
5. Chen, J. V., Yen, D. C., Pornpriphet, W., & Widjaja, A. E. (2015). E-commerce web site
loyalty: A cross cultural comparison. Information Systems Frontiers, 17(6), 1283-1299.
6. Lambert, S. C., & Davidson, R. A. (2013). Applications of the business model in studies
of enterprise success, innovation and classification: An analysis of empirical research
from 1996 to 2010. European management journal, 31(6), 668-681.
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