Central Queensland University: Shippit Business Model Report

Desklib provides past papers and solved assignments. This report analyzes Shippit's business model.

Central Queensland University, Australia
Term – 2019
MGMT20143 ASSIGNMENT 1
Unit Coordinator:
Lecturer:
Assessment:
Prepared by:
Student name:
Student ID:
1

Executive summary
The assignment is constructed to show the business model of “Shippit” which is an Australia
based Courier Company. The company was founded as a private company in 2014. It is a
shipping company that helps in delivering the parcels of its users from one country to
another. The business model of the concerned organisation is prepared with the help of nine
step business Canvas model.
The business of the concerned association is operated on both online and offline boundaries.
With the help of its online site, the organisation can deliver around 1000 parcels every month.
The assignment will help in identifying all the key partners, stakeholders and other resources
of the organisation.
2

Table of Contents
Executive summary....................................................................................................................2
I. Introduction.........................................................................................................................5
II. Business model................................................................................................................5
a) Customer Segments.........................................................................................................5
b) Key partners.................................................................................................................6
c) Value preposition............................................................................................................6
d) Key activities...............................................................................................................6
e) Channels..........................................................................................................................7
f) Revenue stream...............................................................................................................7
g) Cost Structure..............................................................................................................7
h) Key resources..............................................................................................................7
i) Customer relationship.....................................................................................................8
III. Interrelationships.............................................................................................................8
IV. Success factor..................................................................................................................8
V. Risk factors......................................................................................................................9
VI. Business model changes..................................................................................................9
VII. Conclusion.......................................................................................................................9
VIII. Recommendations.....................................................................................................10
References................................................................................................................................11
Appendix 1...............................................................................................................................12
Appendix 2...............................................................................................................................13
Table 1 Key partners..................................................................................................................5
Table 2 Business model canvas................................................................................................11
3

Figure 1 (Cost structure of shippit)..........................................................................................13
4

I. Introduction
Shippit is a private organisation that deals with the task of delivering parcels and packages
from one country to another. The organisation was founded in 2014 but was launched in 2015
in Australia. The business of the company has expanded a lot in the last few years. Initially,
its business was restricted in the boundaries of Sydney, but now the company is handling to
deliver about thousands of packages every month. The company is renowned for making the
use of latest technology to maintain its official online store and its delivery chain Joyce &
Paquin, (2016). With the help of using latest technology the company can attract its
consumers and can provide them with quality services Shippit, (2019).
II. Business model
Shippit is an association that helps the biggest and renowned firms like Sephora, UNIQLA to
deliver its parcels and packages to the consumers. The organisation is known for making the
use of the latest technology and helps in delivering packages to the consumers in the smallest
time interval. The Business model canvas will help in evaluating the key stakeholders,
consumers and the financial reports of the company, to analyse the growth prospects of the
organisation Osterwalder et. al., (2014).
The business model is constructed by nine building block canvas model proposed by
Osterwalder &Pigneur Osterwalder et. al., (2014).
a) Customer Segments
The primary objective of the respective firm is to assist the retailers in undertaking their
delivery process in the most effective manner. Hence its major customers are the retailers
such as Sephora, Kathmandu, UNIQLA and so forth. The tries to maintain transparency with
its consumers and likewise has established a sound communication system with them. The
company tries to get connected with its consumers with the help of online application, with
the help of which retailers can also track their parcels Shippit, (2019).
5

b) Key partners
It is essential for a company to have key partners or stakeholders. These stakeholders help the
company by providing financial assistance Osterwalder et. al., (2014). The key partners of
Shippit are shown with the help of table below:
Table 1 Key partners
c) Value preposition
 Helps in booking multiple number of carriers at a single time
 Special assistance to the retailers
 Helps in resolving the complaints of consumers
 Availability online
 Use of the latest technology
 Helps in tracking the packages Shippit, (2019)
 Provide quality services to the consumers
 Use of cloud-based shipping for a quality experience
 The consumer can ship their packages at any time and from anywhere Joyce &
Paquin, (2016).
d) Key activities
Some key activities identified in regards to Shippit are as follows:
 Provide an opportunity to retailer to execute the task of delivering in the best possible
manner
6

 Use of cloud technology to maintain the multi courier services
 Use of the latest technology
 Existence on both online and offline platforms.
 Innovative delivery and distribution networks Shippit, (2019).
e) Channels
Shippit tries to manage its existence on both online and offline ventures. Most of its sales are
generated from its online portals. It is primarily founded for attracting online retailers. The
organisation tries to maximise its sales from online platforms only. It helps in connecting
both the consumers and the retailers with the help of its official web page and mobile
application Meertens et. al., (2012). The headquarters of the company is situated in Australia.
Aside to this all of its operations take place from an online platform.
f) Revenue stream
The total funding or capital of the respective firm is $5.7M. The company is continuously
experiencing profit from the last few years and has acquired the number position by setting
all its competitors besides. The profits of the organisation are moving upward slowly as the
company is found using the most fascinating and latest technology for the transfer of its
services. Currently, the total turnover of the company is above $1 million which shows the
growth of the company overtime Osterwalder et. al., (2014).
g) Cost Structure
Figure 1 provided in Appendix 2 is showing the cost structure of the company. With the help
of the figure, it can be ascertained that the company has set a fascinating costing policy for its
consumers as well as the retailer. The policy will not only help in satisfying the motives of
the consumers but will likewise help in maximising the profits of the company.
h) Key resources
The key resources utilised by the company is the latest technology, i.e., cloud to deliver the
packages most effectively. Beside to this its official website and its stakeholders are likewise
important resources of the company Shippit, (2019).
7

i) Customer relationship
The company tries to maintain a direct relationship with its consumers. The company follows
the policy of transparency and believes in providing all the basic information regarding its
operations to the consumers. The company tries to make use of online platforms to
communicate with its potential consumers Meertens et. al., (2012).
III. Interrelationships
Shippit is a courier based organisation that tries to maintain its business on online boundaries.
All the major activities of the organisation take place with the help of online mediums. The
organisation tries to maintain a sound relationship with all its stakeholders. The companies
follow the policy of transparency and hence the entire group of stakeholder is aware of the
cost and profits of the organisation Shippit, (2019). The partners of the company are likewise
contacted with the help of these online mediums. This will help the company in saving its
times and resources and boosting its productivity.
All the orders of the company are booked with the help of an online website and application
of the organisation. The consumers are free to track their order, and the payment is also made
with the help of online mediums.
The cost of the company is also very less in comparison to its competitors; this helps the
company in gaining a competitive advantage.
The company is known to use the latest technology to manage its operations. It takes the
assistance of cloud technology for delivering multiple packages in a short time interval to
boost the profitability of the company.
IV. Success factor
The success of the company is highly depended upon the following factors:
 The company is known for making the use of the latest technology, i.e., cloud software.
The technology helps the company in delivering multiple packages to the consumers in a
short period. This likewise helps the company in providing quality and cost effective
services to the consumers Meertens et. al., (2012).
8

 Aside to this, the company tries to make use of the most cost-effective policy that helps
the company in succeeding its competitive firms.
 The consumer relationship policy used by the company provides the opportunity to all the
retailers to contact the company at any time they want, and they can likewise track their
packages at any time and from anywhere.
V. Risk factors
The company has to face some risk factors over time such as:
 Lack of capital
 Loss and theft of packages
 Unsatisfied consumers
 Delays in shipment
VI. Business model changes
Some changes can be undertaken in the constructed business model. The organisation can try
to adopt more policies to fight its competitors. Aside to this, the company can adopt the
policy of market research with the help of which the organisation will be able to understand
the requirements of its key partners and the consumers. This will helps the company is
seeking growth in this uncertain market.
VII. Conclusion
With the help of this report, a clear presentation of the business model of Shippit can be
conjectured. With the study of the report, the users will be able to understand the plans and
policies adopted by the company to enhance its profitability and productivity in the market.
The study will likewise help in conjecturing the real growth affecting factors of the
organisation.
9

VIII. Recommendations
 Involving the practice of market research
 Adopting better policies for fighting the competition
 Attracting more partners and investors Joyce & Paquin, (2016)

10

References
 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.
 Meertens, L. O., Iacob, M. E., Nieuwenhuis, L. J., Van Sinderen, M. J., Jonkers, H., &
Quartel, D. (2012, March). Mapping the business model canvas to ArchiMate.
In Proceedings of the 27th annual ACM symposium on applied computing (pp. 1694-
1701). ACM.
 Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value Proposition.
Hoboken, New Jersey: John Wiley & Sons Inc.
 Ship-from-Store: The New Game Changer for Modern Retail. (2019). Retrieved from
https://www.shippit.com/blog/shipping/ship-from-store-the-new-game-changer-for-
modern-retail/
 Shippit Smart Delivery Management System has scored a spot on the 2016 SMART
100! Woot!. (2016). Retrieved from http://anthillonline.com/shippit-smart-delivery-
management-system-smart-100-2016/
 Shippit. (2019). Retrieved from https://app.shippit.com/pricing/
 Shippit. (2019). Retrieved from
https://www.crunchbase.com/organisation/shippt#section-overview
 Trimi, S., & Berbegal-Mirabent, J. (2012). Business model innovation in
entrepreneurship. International Entrepreneurship and Management Journal, 8(4), 449-
465.
11

Appendix 1
Table 2 Business model canvas
12