Shippit: Business Model Canvas, Critical Success Factors, and Risks

This report presents a business model canvas analysis for Shippit, an Australian logistics startup. It details the company's overview, products, services, and management team. The report explores the nine building blocks of the business model canvas, including key partners, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. It identifies the key relationships among these blocks and discusses critical success factors, risk mitigation strategies, and recommended changes for improvement. The analysis highlights challenges such as competition and the need for innovative strategies, and suggests improvements to enhance customer relationships, distribution channels, and overall profitability. The report concludes with a summary of Shippit's opportunities for growth and recommendations to meet customer needs and gain a competitive advantage.

Running head: BUSINESS MODEL CANVAS
Business Model Canvas
Name of the Student
Name of tye University
Author Note

1BUSINESS MODEL CANVAS
Abstract
The purpose of the following paper is to prepare a business canvas model for Shippit. This is a
new logistics organization currently operating in Australia. The business canvas model of this
company has been prepared along with the different critical success factors for the improvement
in profitability. The ways of coping up with the different risks have been discussed here as well.
A proper analysis has been made in order to identify the changes if it was my business. The
different issues and challenges in the business have been highlighted as well.

2BUSINESS MODEL CANVAS
Table of Contents
Introduction......................................................................................................................................3
Company overview of Shippit.........................................................................................................3
Products and services offered by Shippit.........................................................................................4
Management team of the company..................................................................................................4
Business model canvas of Shippit...................................................................................................5
Key relationships among the nine blocks of Shippit.......................................................................7
Critical success factors....................................................................................................................8
Ways of coping up with risks..........................................................................................................8
Change requirements.......................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

3BUSINESS MODEL CANVAS
Introduction
The following report focuses on the preparation of a business model canvas for the
startup logistics company named Shippit. The business model canvas is needed to be completed
for the companies to understand what types of products and services are needed to be done to
improve the operations of the company. The company faces several issues and challenges in their
respective industry and it is very important to resolve these issues to provide better services to
the customers at large.
The primary purpose of this report is highlight on the different issues that are faced by
this organization and go through a proper study of it through the nine building blocks. This will
help the organization to understand the risks that are there in the operations. In fact, a
relationship between the nine building blocks will have to be shown in order to identify the risks
and their mitigation processes. The critical success factors and the ways to handle the business
better will also have to be discussed in this report. The mitigation of the risks will provide the
company with the competitive advantage indeed.
Company overview of Shippit
Shippit is an Australian shipping platform for the retailers in common (Shippit.com,
2018). This helps the consumers to save more time and provide them with the necessary services
with smaller time. This also saves the money of the customers as they can perform online
operations. This is very satisfying for the customers as well. They can deliver the goods for the
retailers within a short time and this helps them to trace their good properly. The delivery options
are easier for them as well. They have provided a great advantage for the retailers in a great
many ways indeed. They take care of the customers by providing them with the safer delivery

4BUSINESS MODEL CANVAS
options. They track the entire delivering process by their technology based parcel delivery
features (Shippit.com, 2018).
Products and services offered by Shippit
Shippit delivers a wide range of products and services to their customers. They provide
the safe delivery of the parcels to their customers indeed. Shippit is now committed to provide
the retailers all across Australia. They dispatch thousands of delivery of the products to the
customers each month. The retailers of all the sizes and shapes have been satisfied with the
software Shippit uses in their operations. This company had been launched in the year 2015 to
give strong competition to Australia Post. They have been providing the courier online services
for more than 300 retailers in the country. They are committed to deliver their customers with the
best services even outside their shifting hours indeed. In the recent times, Shippit has signed a
contract with the Australian postal service that would help them to reach to more number of
customers in the country. They can cover a great range of the regional Australia and cater to the
servicing of the people through email and SMS notifications
Management team of the company
The co-founders and joint CEOs of Shippit are William On and Rob Hango- Zada. There
are some other members in this company in other departments as well. The other active
departments are the HR, Finance and Marketing departments. All the employees work under the
strict supervision of their seniors. They are always dedicated to provide the best services for their
companies. All these employees have helped a great deal to achieve the goals of the company
indeed.

5BUSINESS MODEL CANVAS
The company provides the customers with the best services when they work in the retail
logistics industry. Their primary objective is to provide the customers with the best products that
should help them to improve their reputation as well. Their target is to capture the market and
gain the competitive advantage by beating the Australia Post.

6BUSINESS MODEL CANVAS
Business model canvas of Shippit
Key Partner
The key partners
for Shippit are the
different airports,
dealers of the train
stations and the bus
stations indeed
(Muhtaroglu et al,
2013).
The manufacturing
partners of the
different trucks by
which the retail
products are
shipped.
The supermarket
chain is also their
principle key
partners as well.
Key Activities
One of the
activities of
Shippit is the
improving the
products and
services they
offer to the
customers.
Product
development
is also their
main activity
indeed
(Frankenberge
r, Badke-
Schaub &
Birkhofer,
2012).
The marketing
of their
services is
Value
Proposition
The value
proposition
for the
customers is
to provide
them with the
convenience
of payment
and delivery
options
(Osterwalder
et al., 2014).
The delivery
of the
products very
fast is also a
very
challenging
value
proposition
Customer
Relationships
Shippit should
build up a
strong
customer
relationship
by the virtues
of personal
assistance.
Shippit should
provide the
customers
with the
attachment
with them
through SMS
facilities and
through social
media. The
fact of
keeping in
Customer Segments
The customer
segments should be
the big and small
retail companies
who provide their
products through the
logistics chain of
Shippit.
Shippit should
identify their
customers in a
proper way and
these customers
should be the people
who prefer online
logistics supply with
the help of
innovation (Amit &
Zott, 2012).

7BUSINESS MODEL CANVAS
also very
important as
well (Ferrell
& Hartline,
2012).
for Shippit.
They should
be available to
the customers.
touch with
them will
surely
increase their
profitability
(Muhtaroglu
et al, 2013)
Key
Resources
The key
resources are
their ability to
utilize their
distribution
channels.
The
intellectual
property of
Shippit will
also act as a
key resource.
Channels
The main
distribution
channels for
Shippit should
be social
media. The
use of social
media should
be used to
connect with
the customers
and provide
them with the
proper
solutions

8BUSINESS MODEL CANVAS
(Tuten &
Solomon,
2017).
Cost Structure
The cost structure of Shippit will depend on
the distribution costs and the costs that are
needed for the maintenance of their vehicles.
The storage costs are also an important part
of their cost structure (Lu & Liu, 2013).
Revenue Streams
The revenue streams would depend on the
percentage of sales of their services. The use
of technology will also be held as a medium
for their revenue streams (Garnefeld et al.,
2013).
Key relationships among the nine blocks of Shippit
There is a very strong relationship between the nine building blocks of the business
model canvas. The cost structure is very important to provide a giant market for the organization.
This will help them to resolve the financial issues indeed. The value proposition is also very
important to help the company to gain the competitive advantage over their rivals (Campbell,
Coff & Kryscynski, 2012). They should make out the value proposition of their rivals as well to
increase their services and reach to mire customers. This can be held as an effective business
strategy. The distribution channels and key resources are also important for them as well. They
have to construct a strong relationship between the customers to profit more in their line of
business. Other issues like the fees of the brokers and the costs for advertising on the social
media will also have to be taken under the cost structure and revenue streams. The company can
add more variants in providing better service to their customers.

9BUSINESS MODEL CANVAS
Critical success factors
There are many critical factors that have to be discussed for their success and gaining
competitive advantage of Shippit. They need to take up some innovative strategies than other
companies in their industries that would give them the desired competitive advantage.
 Shippit needs to make their delivery time faster and secure in all sections.
 Shippit also needs to introduce some methods by which the shipments can be tracked
effectively with the use of the technology (Narula, 2014).
 They should provide their services both in the rural and urban areas of Australia.
Ways of coping up with risks
Some important strategies should be used in order to cope up with the risks that are very
important in this industry.
As the market size is increasing, Shippit should bring in some innovative thoughts in their
operations as well. They should welcome the customers with various offers and prizes who will
avail their services (McNeil, Frey & Embrechts, 2015).
They should try to sustain their business possibilities by improvising the different models of
innovative thoughts into their operations.
Change requirements
In this course, I would suppose different changes that would enhance the services and
products of Shippit. I would try to increase the distribution channels and practice the democratic
leadership in my business. This would encourage the employees to bring out their innovative

10BUSINESS MODEL CANVAS
thoughts. If these thoughts are implemented this would seriously effect the business operations of
Shippit. Their sales graph would go up and number of customers would surely increase.
Conclusion
This paper can be concluded by saying that Shippit has some big opportunities in front of
them to progress in this competitive business environment. If they implement the plans and focus
on fulfilling the needs of their customers this will surely impact the business profitability of the
organization indeed. Their customer segments should be improved as well.
References
Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan
Management Review, 53(3), 41.