Deconstructing Parkhound: A Business Model Assessment Report

This report provides a comprehensive deconstruction of Parkhound's business model, an online parking service provider established in 2014. It analyzes Parkhound's business model canvas, highlighting key partners, activities, resources, value propositions, customer relationships, customer segments, channels, cost structure, and revenue streams. The report discusses the relationships between different elements of the business model, such as key resources and key partners, cost structure and value proposition, distribution channel and customer relationships, customer segments and revenue streams, and key activities and distribution channel. It also identifies critical success factors for Parkhound, including cheaper parking rates and stakeholder relationships, and analyzes downside risks, such as less experience, variation in market demands, and less management in operations. The report concludes with recommended changes to the business model canvas, focusing on distribution channels, customer relationships, cost structure, and revenue streams, to enhance Parkhound's market presence and profitability.

Business Model Deconstruction
[Assessment one]
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Table of Contents
1. Introduction..............................................................................................................................3
2. Business model Canvas of Parkhound.........................................................................................5
3. Key relationships in a different element of the business model canvas of Parkhound................8
4. Analysis and discussion of the critical success factor.................................................................9
5. Contribution in downside risk...................................................................................................10
6. Recommended changes in the Business Model Canvas............................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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1. Introduction
Description of business
This report is based on the Parkhound which is an innovative business model startup which has
established in the year of 2014. It is an online service provider company which is based on the
current market demands and needs.
Industry
This company is dealing in the online industry by which it is providing a solution to their
customers. According to a research 65% Australians are using e-commerce for trade, online
shopping and taking services. The parking service industry of Australia is growing regularly with
approximately 7.5% of annual growth. It is providing a contribution of $2bn in the GDP of
Australia.
Market
Parkhound is working in the oligopoly market in which few companies are working which is
providing the similar kind of services.
Product and services
This company is based on the innovative business idea in which they are providing cheaper
parking place to customers via the website and mobile application which is the most common
problem of drivers.
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Figure 1: Website view of Parkhound
Source: Parkhound, 2018.
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2. Business model Canvas of Parkhound
Business Canvas Model of Parkhound
Key
Partners
Carepark
The University of
Melbourne
Melbourne Museum
Greenco Parking
Interpark
ACE Parking
PriPark
Airport Park & Fly
National
Convention Centre
Goget
Key
Activities
Online solutions
to the problems
Available
parking area for
customers
E-commerce
activities for
payments
Value
Proposition
A parking space in
effective prices
Secure and safe
parking space
Trust in relation to
customers
Open and covered
parking space
according to the
customers’ needs
Customer
Relationships
Personal
assistance
Self-service
Relationship
through
website and
application
Customer
Segments
Regular
customers
Short-term
customers
Long-term
customers
Rotational
customersKey
Resources
Informational
Financial
Human
Technological
Channels
Website
Mobile
application
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Cost
Structure
Contracted rent rates for parking areas
Salary of employees
Advertisement
Revenue
Streams
Online payment
Advertisements on the website and mobile
application
01. Key partners: Parkhound has developed a partnership with many car parking authorities
which are above mentioned to enlarge their service area.
02. Key activities: The Company is providing online information about available parking space
by allowing online payment (Parkhound, 2018).
03. Key resources: Information is the key resource to find out available parking space.
04. Value proposition: Cheaper parking prices are the key value which they are delivered to
their customers.
05. Customer relationships: Most of the customer wants personal assistance to negotiate on
pricing and company is using self-service by their website.
06. Customer segments: Regular, rotational, long term and short term are different types of
customers of the company.
07. Channels: Website and mobile application are the main distribution channel of the
Parkhound (Parkhound, 2018).
08. Cost structure: Rent paid for parking areas and people working with the company are the
key factors of cost.
09. Revenue Streams: Parkhound has allowed using online payment on their website. Either this
advertisement on mobile application and website are also generating revenue for them.
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Parkhound has used only online payment methods which helps them to provide an easier way for
the transaction.
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3. Key relationships in a different element of the business model canvas of Parkhound
Relationships in different elements of the business model canvas are given below in the points:
Key resources and key partners: Informational resources are having a huge significance for the
company to get information about the available parking space in a particular area (Muhtaroglu,
et. al., 2013). Human, finance and informational resources are significant for developing a
partnership in the marketplace to enlarge the service criteria. All of the partners are listed on the
website of Parkhound.
Cost structure and value proposition: Parkhound is focusing to deliver quality services to its
customers which are a key factor in raising the cost. Most of the customers want a safe and easy
to access parking place is which is the key factor in raising the cost of service. People which are
working with the company to provide better services are also raising the cost.
Distribution channel and customer relationships: Customers are expecting to take personal
assistance from the company but it is not possible for the company to entertain each of customers
personally. Website and mobile application are effective to provide a self-service option to the
customers so it is essential that customers have to be technology friendly.
Customer segments and revenue streams: Parkhound is using allowing online methods of
payment for each market segment but they are providing different parking rates to the customers
(Muhtaroglu, et. al., 2013). They are having variance in the rates according to the long duration,
short-term, regular and non-regular customers.
Key activities and distribution channel: E-commerce activities, online service, and solution are
the key activities which are made by the Parkhound in the account of customers. According to
these activities, the company is using effective distribution channel. They are providing services
for website and mobile application which is a most effective way.
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4. Analysis and discussion of the critical success factor
It is essential for the Parkhound to analyse the critical success factors which are the base to be
successful in the market. Some of the critical success factors are given below in the points of
Parkhound:
Cheaper parking rates: It is the key factor for the organisation to be successful and to be the
market leader in the parking market of Australia. Most of the customers are cab, car and truck
drivers which are having need of parking space in their travel so these people are having a need
for cheaper rates for parking (Abdollahzadegan, et. al., 2013). The company will be successful if
they promote its cheapest parking rates. Cheaper parking rates are the most convenient thing
which is needed by the customers in the tour. A person which does not have car parking space
nearby their home are also using this service so it is essential for the company to provide special
package for these kinds of customers.
Relationship with stakeholders: Customers, business partners, and employees are the key
stakeholders in the company which supports in attaining objectives. It is essential for the
company to maintain a long-term relationship with the customers by which they can get business
on regularly in the future (Kumar and Petersen, 2012). Another thing is that company have to
keep long-term relations with the business partners which can help them to maintain the strength
in providing services in different areas of Australia. It is essential for the company to provide
proper customers assistance because online service is an emerging industry which is also a part
of the e-commerce business. Proper customer assistance is effective to retain customers in the
future also. It will help the company to enlarge its network by enlarging a number of service
users.
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5. Contribution in downside risk
The downside risk is a term which is used for lesser returns from expectations of the company
(Huang, et. al., 2012). Some of the factors are given in the points which contribute to downside
risk:
Less experience: It is associated with the start-up business because founders are not experienced
to analyse the market. Less experience in the market analysis and business forecasting is the key
factor behind the financial risk.
Variation in market demands: It is also a major factor which contributes to downside risk.
Market demands are not fixed and these are affected by different market forces (Hildenbrand,
2014). It is essential for the entrepreneurs and founders of the Parkhound to use some expert’s
suggestion to analyse the market demands.
Less management in operations: Operational cost having a huge significance in marinating the
profit level. Lack of management in operation is also contributed to the risk of financial losses
and decrease profits.
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6. Recommended changes in the Business Model Canvas
In the above business model canvas is analysed which provides a specific information about the
elements of the of the business model canvas of the Parkhound. Some of the recommendations
are given below in points to make changes in the business model canvas of the company:
Distribution channel: Parkhound is using only website and mobile application which is an
online channel of service distribution. It is essential for the company to use offline method also
to provide assistance to the targeted customers. Parkhound have to show its tangible market
presence which should help them to cover a large market with its availability.
Customer relationships: It is essential for the company to provide better assistance to the
targeted customers as per the expectation of the customers. Most of the customers are having an
expectation of the personal assistance which can help them to assist better their customers (Sashi,
2012). Parkhound have to use personal assistance relationship with its targeted customers which
can help them to assist better their customers.
Cost structure: Variation in the cost is occurring due to variable contract so it is essential for the
company to use fixed contracts with the partners for parking space. It should be effective for the
Parkhound to use fixed contracts to keep a fixed rate of parking rent of a particular space. It is
essential for the managers to use management in operations which can help the company to
decline the operational cost.
Revenue streams: Currently online payment, website, and mobile application are the key
streams of the revenue generation. Advertisement of other companies is also used by the
company to generate revenue. It is essential for the company to enlarge the list of revenue
generation by allowing these companies to use their parking space for advertisement of their
products and services.
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Conclusion
On the basis of the above-given report, it has been concluded that business model canvas is
effective to determine the success of a company. All of the components of the business model
canvas are having a huge relevancy with each other which is explained in the above. It is found
that cheaper prices always attract customers and it is the critical success factor for any kind of
company.
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