Business Model Canvas Analysis: Nura Headphones Case Study Report

This report provides an executive summary and in-depth analysis of Nura Headphones' business model. It utilizes the Business Model Canvas framework to examine key components, including customer segments (music lovers), key partners (technology providers and passionate engineers), value proposition (personalized sound), key activities (advertising and promotions), channels (online platforms), revenue streams (sales), cost structure (employee compensation, app development), key resources (skilled employees), and customer relationships (social media). The report also explores interrelationships between these building blocks, critical success factors (team and unique products), downside risks (employee training, recruitment costs), and potential business model changes (enhanced communication channels and increased partnership). Recommendations include training programs, promotional activities, and increased awareness. The report concludes that the proper development and maintenance of operations has contributed to Nura Headphones' success.

Running head: BUSINESS MODEL CANVAS
BUSINESS MODEL CANVAS
Name of the Student
Name of the University
Author Note

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Executive Summary
The report examines the business model adopted by a major innovative company named Nura
Headphones that has its origin in Australia. The different aspects based on proper business
operations developed by Nura Headphones have been examined in the report. The stages of
coordination between the diverse building blocks of the business model canvas have been
depicted in this report. The following recommendations have been provided to Nura
Headphones,
Formation of proper training programs.
Development of the promotional and advertisement based activities in order to reach
more number of customers within less amounts of time with the help of
communication.

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Table of Contents
I. Introduction.................................................................................................................4
II. Business model..........................................................................................................4
A. Building blocks.....................................................................................................4
1. Customer segments............................................................................................4
2. Key partners.......................................................................................................5
3. Value proposition...............................................................................................5
4. Key activities......................................................................................................5
5. Channels.............................................................................................................6
6. Revenue streams.................................................................................................6
7. Cost structure.....................................................................................................6
8. Key resources.....................................................................................................6
9. Customer relationships.......................................................................................7
B. Interrelationships...................................................................................................8
C. Critical success factors..........................................................................................8
D. Downside risks......................................................................................................8
E. Business model changes........................................................................................9
III. Conclusion................................................................................................................9
IV. Recommendations....................................................................................................9
References....................................................................................................................10

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Appendix 1 - Financial metrics....................................................................................12

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I. Introduction
Nura Headphones is a company that operates in the consumer electronics based sector
and has its origin in Melbourne, Australia. The company operates in the manufacturing and
designing of headphones which are mainly based on the personalised technology of sound.
This is a proprietary technology developed by Nura Headphones Company to understand
hearing based sensitivities of the users related to their listening capabilities at different
frequencies. Emissions which are offered by different sound technologies are monitored in a
detailed manner by the products that are offered by Nura Headphones (Nuraphone.com.
2019).
II. Business model
The goal is attached to the development of a business model is to improve the
experiences of the consumers provided by the company which could be influenced by the
personalised sound based aspects. Different types of features which are considered to be
important part of products provided by the firm are based on profiles which are crafted for
various types of consumers and their experiences. The major factors that are able to
differentiate the organization with the others in the industry are based on the ways by which it
fulfils the demands of consumers by providing premium quality products (Antikainen &
Valkokari, 2016).
A. Building blocks
1. Customer segments
The most significant consumer segments whom Nura Headphones targets as their
main customers include, music lovers who like to use the headphones that are customised for
their needs and demands. The stages of capacity of the ears of the consumers are considered
during the manufacture of the headphones. The listening levels of the customers are an

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important determinant for affecting the development of perfect headphones by the
organization. Listening activities of the customers are also influenced by the proper use of
headphones (Breuer & Lüdeke-Freund, 2017).
Figure 1 – Customers of Nura Headphones
Source - (Nuraphone.com. 2019)
2. Key partners
The competent and zealous of music lovers who are a part of Nura Headphones are
the key partners of the company. The providers of technology can also be taken into
consideration in order to develop the processes performed by Nura Headphones in music
industry. The passionate engineers and scientists are also considered to be important partners
of the organization (Dudin et al., 2015).
3. Value proposition
Nura Headphones had developed its value proposition based on the process by which
this company can deliver best quality products to their customers based on their personalised
needs. The different tie-ups which is formed with the company are also able to provide major
support to Nura Headphones in their value proposition. The team of Nura Headphones has
developed themselves and the different products related to the value proposition of this
organization. The operations of the company have been continued with respect to the way by

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that Nura Headphones is been able in maintaining its position in the industry (França et al.,
2017).
4. Key activities
The advertising and promotional related activities are major factors for the levels of
success gained by Nura Headphones. The partnerships formed by the company have also
been a major part of the promotional activities performed by Nura Headphones. Nura
Headphones has mainly used the resources for the purpose of developing customised levels
of services for customers in order to consider the capabilities based on proper hearing (Joyce
& Paquin, 2016).
Figure 1 – Promotions of Nura Headphones
Source - (Nuraphone.com. 2019)
5. Channels
The effective presence which is formed by Nura Headphones on different platforms is
a major channel related to proper advertisements and promotions. The company has formed

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different advertisements that have been depicted on television and have been based on the
key features of the products. The distribution channels of the products have been helpful in
increasing the reach towards customers in diverse parts of the world. The formation of
channels has been able to play a major part in gaining high levels of profits in the industry
(Ladd, 2018).
6. Revenue streams
The sales margin gained by the organization are based on the customer base which is
developed by the organization in the industry. The organization has been able to gain
finances from different institutions in order to maintain the operations. The various banks are
also considered to be major support for the development and growth of the operations of
Nura Headphones in the industry (Lüdeke-Freund & Dembek, 2017).
7. Cost structure
The compensation offered to employees and different people who are related to the
company are a major part of developed structure of cost in the organization. The app that has
been formed by the organization has also been based on high costs from the side of Nura
Headphones. The costs based on delivery and shipping have been incurred by the
organization has the purpose of reaching to the customers. Nura Headphones has a revenue
and are liable to pat taxes (Ojasalo & Ojasalo, 2018).
8. Key resources
The key resource that is recieved by the organization is the competent team of
employees who are able to affect the appropriate development of products that are based on
requirements of the customers. The technologies provided to the customers by Nura
Headphones are high-end in nature and have the ability to affect the profitability and

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operations levels of the organization as well. The sounds are customised in order to meet
requirements of different types of customers in an effective way (Sort & Nielsen, 2018).
9. Customer relationships
The aim of the organisation is the development of customer relationship with the help
of proper communication. The usage of different social media based platforms have an
impact on the proper development of communication process with the consumers to
understand their demands and needs. Advertising related activities have also proved to be
instrumental for this organization to form customer relationships (Täuscher & Abdelkafi,
2017).
B. Interrelationships
The business model canvas of Nura Headphones and its nine building blocks are
connected to in terms of the products which are offered to the consumers. The different
activities performed in organization is based on effective promotions have an impact on the
communication with the customers and in turn can help the company to understand their
needs. The staff or passionate team of organization has been able to perform a prime role in
proper formation of products that in turn increase the revenue levels as well. The revenue
streams of the organization have an impact on the investments that are made in innovative
products (Sort & Nielsen, 2018).
C. Critical success factors
The team and the founders of Nura Headphones have been able to contribute as the
most significant part in ensuring the success of the organization. The levels of success gained
by Nura Headphones have led to the development of future plans in order to compete with the
larger organizations like Bose. The unique products have been an important part related to the
success rate that is earned by the company (Joyce & Paquin, 2016).

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D. Downside risks
The training process of employees in Nura Headphones needs to be enhanced so that
the services provided to the customers can be improved. The company lacks a huge amount
of skilled employees in order to enhance the production process. The costs related to
recruitment and training have proved to be quite high and has developed pressure on the cost
structure and revenues of the organization as well. The risk levels are also based on the lack
of appropriate levels of profitability in different activities that are performed (Dudin et al.,
2015).
E. Changes in Business model
The channels of distribution and levels of communication of the organization has the
requirement of increased so that the organisation could reach more number of consumers.
The increase in awareness related to the various products and services is also a major change
that can be made in the business model of this organization. The growth levels depicted by
music industry are a huge opportunity for the organization in order to enhance the level of
profitability (Ladd, 2018). The business model requires changes in terms of the
communication channels and the customer base as well. Nura Headphones further needs to
increase number of partners and also develop an effective relationship with them as well. The
increase in financial help can support the future growth of Nura Headphones in the
technology industry in comparison to the other organizations.
III. Conclusion
The business model canvas analysis can be concluded by stating that proper
development and maintenance of the operations of Nura Headphones is a major reason
behind the success in the industry. The customer experiences offered by Nura Headphones

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have also proved to be an important factor that is associated to the position that has been
created by the company.
IV. Recommendations
The major recommendations that can be suggested for the Nura Headphones include
the following,
Formation of the appropriate training programs for the purpose of improving
skill levels of the employees.
Development of advertising and the promotional activities in order to reach
more number of customers within less amount of time. The increase in
awareness levels is considered to be the most effective recommendation that
can be provided to Nura Headphones.

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References
Antikainen, M., & Valkokari, K. (2016). A framework for sustainable circular business
model innovation. Technology Innovation Management Review, 6(7).
Breuer, H., & Lüdeke-Freund, F. (2017). Values-based network and business model
innovation. International Journal of Innovation Management, 21(03), 1750028.
Craft.co. (2019). Retrieved from https://craft.co/nura
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting. Asian Social
Science, 11(7), 290-296.
França, C. L., Broman, G., Robèrt, K. H., Basile, G., & Trygg, L. (2017). An approach to
business model innovation and design for strategic sustainable development. Journal
of Cleaner Production, 140, 155-166.
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.
Ladd, T. (2018). Does the business model canvas drive venture success?. Journal of Research
in Marketing and Entrepreneurship, 20(1), 57-69.
Lüdeke-Freund, F., & Dembek, K. (2017). Sustainable business model research and practice:
Emerging field or passing fancy?. Journal of Cleaner Production, 168, 1668-1678.
Nuraphone.com. (2019). nuraphone - Music in full colour™ | Personalized sound. Retrieved
from https://www.nuraphone.com/
Ojasalo, J., & Ojasalo, K. (2018). Service logic business model canvas. Journal of Research
in Marketing and Entrepreneurship, 20(1), 70-98.