Business Model Canvas Analysis Report: Nura Headphones (MGMT20143)

This report provides a detailed analysis of the Nura headphones business model using the Business Model Canvas framework. It examines each of the nine building blocks, including key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams, providing insights into Nura's operational strategies. The report also explores the interrelationships between these elements, highlighting how different components influence each other. Furthermore, it identifies critical success factors, such as channel and customer segment diversification, as well as downside risks, including cost-effective alternatives and limited market presence. The report concludes with recommendations for improving customer relationship management and market development, aiming to enhance Nura's revenue and overall business performance. The analysis is based on publicly available information and provides a comprehensive overview of Nura's business model and strategic considerations.

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Name of the student
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Executive summary
The aim of this report is to discuss about the business model canvas of Nura headphones. In
doing so, each of the nine elements of the business model canvas is being discussed from the
perspective of Nura. Moreover, this report also discussed about the relationships between the
building blocks of the canvas. The critical success factors for Nura are identified along with the
major risks. A few recommended steps are discussed to mitigate the identified challenges. It is
identified that revenue generation is the most suitable success factor for Nura while the limited
market presence of them is their major limitations.

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

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Appendix 1.....................................................................................................................................13
Appendix 2.....................................................................................................................................13

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I. Introduction
Innovation is the key source of gaining competitive advantages for the business entities in
the recent time. This is due to the reason that innovative approach of the companies will be
beneficial for the companies in the meeting the requirements and expectations of the customers.
Moreover, the new companies should be more focused towards the innovative approach in order
to deal with the competition of the established companies. One such innovative company in the
recent time is Nura (Volberda, Van Den Bosch & Heij, 2013). They are specialized in smart
music hearing device and their major and most popular product is Nura headphone, which can
automatically adapt to the hearing sensation of the users and plays music accordingly. Nura was
incepted in 2015 and is based in Melbourne, Australia. They do not have operations beyond
Australia but shipping facilities are available across the world.
However, on the other hand, it should also be noted that Nura is operating in a highly
competitive market because there are number of other music brands operating. In this case, Nura
is having the need for proper and suitable business model to survive in the market (Leschke,
2013). This report will discuss about each of the elements of the business model canvas of Nura.
Based on the identified factors, the critical success factors and downside risks will be discussed.
2015
Nura total
Funding
$28.2 m
Nura latest
funding size
$21 m

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Time since
last funding
9 months ago
Nura
investors
Blackbird Ventures (Australia), Blackbird Ventures, AirTree
Ventures, SOSV, Qualgro VC, Rick Salmon
II. Business model canvas
A. Building Blocks
1. Key partners
The key partners for Nura are the promotional mediums such as print and electronic
media. This is due to the reason that partnerships with these mediums are helping Nura in
reaching out to more number of customers and higher brand awareness in the market
(Khodakarami & Chan, 2014). In addition, the other partners of Nura are the component
suppliers from whom the raw materials are being sourced. Thus, the quality of the components
determines the quality of the final products of Nura.
2. Key activities
The most important activity for Nura is the effective logistical solutions due to the reason
that shipping process of Nura determines the extent to which they will be able to meet the global
market demand (Joyce & Paquin, 2016). In addition, the backward supply chain process is
another major activity because effective supply chain process is ensuring the cost regulation in
sourcing raw materials and competitive product pricing.

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3. Key resources
The website of Nura is acting as the shopping marketplace from where the customers can
order their products. In addition, the technology can also be considered as their resource because
technological advancement is helping Nura in gaining the competitiveness in the market. The
human resources along with their skills and expertise are also the key resources of Nura (Dudin
et al., 2015).
4. Value propositions
Automated and smart headphones, which are adaptable to different sound sensations of
the users, are the key value for the customers. In addition, customers are gaining true hands free
experience, which is also adding value to the customers (Payne, Frow & Eggert, 2017).
5. Customer relationships
Online mediums are majorly being used for managing the customer relationships. This is
due to the reason that with the help of the social media, the customers are being involved in the
communication process and their feedbacks are being considered. In addition, the after sale
services are also helping Nura in managing the customer relationship (Tzokas et al., 2015). This
is due to the fact that the more effective will be the after sales services, the more positive will be
the satisfaction level of the customers.
6. Channels
As of now, Nura headphones are available only through the online channels including the
website and other online marketplace sites. This is helping in reaching out to far areas across the
world. The website of Nura can get accessed across all the countries (Berger & Iyengar, 2013).

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7. Customer segments
Customers from the higher end segment are being targeted. This is due to the reason that
the average price of Nura headphones is high compared to their competitors. In addition,
customers seeking best quality sound effects are also targeted as Nura headphones are offering
the best sound quality (Ghoniem & Maddah, 2015).
8. Cost structure
Nura is a privately owned firm and their major cost factor is manufacturing and sourcing
of raw materials. This constitutes the 50 percent of the revenue. It is followed by the marketing
activities, which constitutes the 20 percent of the revenue (Byun et al., 2013). Hence, it can be
concluded that major of the costs of Nura are involved in the production process.
9. Revenue streams
The major revenue stream of Nura is the sales of their music items in the market.
However, the details regarding their revenue are not available public and thus they cannot get
accessed (Barland, 2013). In addition, the investments in terms of crowd funding and venture
capital is another source of funding for Nura.
B. Interrelationships
One of the major relationships between the building blocks of Nura is between key
activities and the customer segments. This is due to the reason that the effectiveness of the key
activities determines the extent to which the targeted segments are getting catered. For example,
the extent to which Nura headphones are getting positioned as the premium brand in the market
will determine the attractiveness among the premium target segments. In this case, it can be

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concluded that Nura should enhance their key activities in order to cope up with the change in
the preferences and expectations of target customers segments (Dudin et al., 2015). On the other
hand, if the different target segments have to be targeted, then the key activities should be
changed accordingly. Cost structure and revenue stream is also interrelated because extent of the
revenue generation will determine the cost structure (Euchner & Ganguly, 2014). The more will
be the generation of revenue, the more will cost capability for them. Revenue generation is also
related with the customer relationships because more mediums of customer management can get
initiated with more revenue (De Reuver, Bouwman & Haaker, 2013). Thus, increase in the
revenue generation will improve the customer relationship management of Nura.
C. Critical success factors
One of the major success factors for Nura will be the diversification of the channels. This
is due to the reason that currently, they are only having the online channels. In addition to this,
online channels should also be implemented. This will increase the market reach for Nura along
with higher level of market penetration. Hence, with the increase in channel types, Nura will
have higher potentialities in the market. Another critical success factor for Nura will be the
diversification of the customer segments (Abraham, 2013). The more will be the target customer
segments, the more will be the potentiality of generation of revenue. In addition, with the
increase in the target customer segments, the brand value and identity of Nura will also get
enhanced (Fritscher & Pigneur, 2014). Value propositions are the key source of gaining
competitiveness for Nura and enhancement of the value propositions will increase the
potentiality of them (Bonazzi & Zilber, 2014). Hence, it can also be considered as one of their
critical success factors. However, on the other hand, it should also be noted that all the identified
critical success factors are based on the revenue generation.

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D. Downside risks
The major risk for Nura is the cost effective alternatives in the market. With the rapid up
gradation of technologies, smart headphones are increasingly being offered by the different
brands in the market. Each of these new brands is offering cost effective options. Thus, with the
premium pricing and positioning of Nura, it will be difficult for them to increase the sales
volume (Spieth, Schneckenberg & Ricart, 2014)). In addition, it is also identified that limited
market presence will also restrict the sales volume and potentiality of Nura. This is due to the
reason that Nura is innovative and they are offering of state of art technologies within the limited
market region of Australia. Thus, their brand value and identity is not up to the desired level to
match the competitiveness of the global brands (Kajanus et al., 2014). This is also affecting their
business.
E. Business model changes
The proposed business model for Nura will involve change in the elements of customer
relationship. This is due to the fact that as of now, Nura is managing the after sales services for
the customer relationship but it is recommended that customers should also be involved in
product development process (Salgado et al., 2014). If the customers can involved in the
development process, they will be more engaged and satisfied by means of having suitable and
ideal final products.
III. Conclusion
This report concludes that the existing business model of Nura is effective for their
limited business region. However, it should be changed in order to gain expertise in the larger
market across the world. On the basis of this factor, different success elements are discovered in

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this report. It is identified that increase in the revenue generation will help Nura to meet the
critical success factors discussed in this report. On the other, a few risks are also identified for
Nura, which should be mitigated.
IV. Recommendations
 More involvement in the customer relationship management will help Nura to gain the
maximum satisfaction from the side of them.
 Market development initiatives will help Nura in increasing their business areas and
target customer segments. This will further increase the revenue for them.
 Online market presence should be increased by Nura.

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Reference
Abraham, S. (2013). Will business model innovation replace strategic analysis?. Strategy &
Leadership, 41(2), 31-38.
Barland, J. (2013). Innovation of new revenue streams in digital media. Nordicom Review, 34,
99-112.
Berger, J., & Iyengar, R. (2013). Communication channels and word of mouth: How the medium
shapes the message. Journal of consumer research, 40(3), 567-579.
Bonazzi, F. L. Z., & Zilber, M. A. (2014). Innovation and Business Model: a case study about
integration of Innovation Funnel and Business Model Canvas. Revista Brasileira de
Gestão de Negócios-RBGN, 16(53), 616-637.
Byun, H. Y., Choi, S., Hwang, L. S., & Kim, R. G. (2013). Business group affiliation, ownership
structure, and the cost of debt. Journal of Corporate Finance, 23, 311-331.
De Reuver, M., Bouwman, H., & Haaker, T. (2013). Business model roadmapping: A practical
approach to come from an existing to a desired business model. International Journal of
Innovation Management, 17(01), 1340006.
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 the industrial agriculture. Biosciences Biotechnology Research Asia, 12(1),
887-894.