MGMT20143 - Business Model Analysis of Uni Piece Retail Company

This report provides a comprehensive analysis of Uni Piece, an Australian women's swimwear retailer, using the business model canvas framework. It examines the company's customer segments, key partners, value propositions, key activities, channels, revenue streams, cost structure, key resources, and customer relationships. The report identifies the interrelationships between these building blocks and highlights the critical success factors that contribute to Uni Piece's growth, such as its customer-centric approach and effective marketing strategies. Furthermore, the report addresses potential risks within the business model, including the reliance on specific customer segments and the challenges of managing costs. Finally, it suggests potential changes to the business model, emphasizing the importance of detailed revenue stream analysis and adapting to evolving customer needs. The conclusion highlights Uni Piece's success in direct marketing and customer relationship management, recommending continuous improvements and resource development to ensure sustained growth.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note

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Executive Summary
The report focuses on the analysis of a business model that can help a business to continue
with its growth. In this report Uni Piece, an Australian retail company that offers swimsuit for
women is selected so that the effectiveness of the application of the business model analysis
can be made. The report analysis the business model and identifies the interrelationship that
exists between the building blocks of the canvas. The critical success factors of the business
are identified. Factors such as revenue stream, target customers and the relationship that is
maintained with the customers are identified so that the critical success factors of the
company can be identified. The report identifies the risks that exists in the business model
and the changes that are to be made so that the business model canvas can be improved.

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Table of Contents
Introduction................................................................................................................................4
About the company....................................................................................................................4
1. Business model.......................................................................................................................4
Building blocks.......................................................................................................................5
Customer segments.................................................................................................................5
Key partners............................................................................................................................5
Value propositions..................................................................................................................6
Key activities..........................................................................................................................6
Channels.................................................................................................................................7
Revenue stream......................................................................................................................7
Cost structure..........................................................................................................................8
Key resources.........................................................................................................................8
Customer relationship.............................................................................................................8
2. Interrelationship.....................................................................................................................9
3. Critical success factors...........................................................................................................9
4. Risk........................................................................................................................................9
5. Changes in the business model............................................................................................10
Conclusion................................................................................................................................10
Recommendation......................................................................................................................10
Bibliography.............................................................................................................................11

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Appendix..................................................................................................................................13

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Introduction
The report focuses on the development and analysis of business model canvas in
business organisations. The focus is on Uni Piece a women’s swimwear retail company in
Australia. The report analyses the interrelationship between the factors of the business canvas
and the critical success factors that affects the business. The possible risk factors and changes
to business model are provided in the report. As stated by Dempsey and Kelliher (2017)
innovation can be defined as an action that helps in recreating an existing product in the
market. It key concept can be associated with economics and management. The application of
the key concepts of innovation in commercial, digital, social and service contexts is that it
can help in recreating a service or product for the benefit of an organisation
About the company
Uni Piece is a women’s swimsuit retailer located in Brisbane, Australia. The company
was founded by Carly Brown in 2016. The signature product of the company is a one-piece
swimsuit with long sleeves (Unepiece.com, 2019). The success factor that can be accounted
with the company is that within a short period of time, the company have managed to gain a
worldwide stature. Therefore, an analysis of the business model is made to understand the
rate of growth of the organisation.
1. Business model
The unique business idea that takes place at Uni Piece is the fact that the company
utilises a high retail strategy that can be used to understand the demands of the customers.
The development of the company was mainly due to the completion received by the
Australian swimmers at the Olympics. The viability of the swimsuits was done after a

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thorough market research. Hence, the building blocks of the business model is analysed for
the company.
Building blocks
The building blocks mentioned by Osterwalder and Pigneur (2010) can be used to
understand the competency of the company. The building blocks of the business model is
analysed in order to understand the strength and competency it provides to the organisation.
Customer segments
The defining feature of Uni Piece is that the customer segmentation is done based on
conducting a thorough market research. The target market is selected by identifying the type
of people that are interested in the purchase of the swimsuit. The table provides an analysis of
the manner in which Uni Piece can conduct its business in Australia by identifying the
customers
Gender 80% of the women population
Income 5% greater than the average pay scale
Classification of customer Beach goers, swim athletes
Age 16-35 years
Other characteristics Home owners, sports people, majority being
teens
Number of sold items 123,987
Table 1: Customer segmentation of Uni Piece
(Source: Unepiece.com, 2019)
Key partners
The key partners of Uni Piece are mainly the services that help in the delivery of
messages and promote the company and its products.

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New
customers
Existing
customers
Company website 10% 5%
Swimsuit
developers
12% 10%
Local
manufacturers
20% 25%
Sports sponsors 5% 10%
Table 2: Key partners
(Source: Unepiece.com, 2019)
It is seen from the analysis of the table new and existing customers are categorised. At
the same time, manufacturing firms located across the country are also engaged as partners of
the company.
Value propositions
The value proposition of Uni Piece is that it helps the women to wear the swimsuits in
a comfortable manner. According to Joyce and Paquin (2016), it is necessary that the women
participants in major Olympic sports remain comfortable while competing. Uni Piece also
ensures that the swimsuits that are provided are done as per budget of the people since most
of the customers of the business are teenagers (Unepiece.com, 2019).
Key activities
The key activities that are maintained by Uni Piece are the fact that the company
provides a proper delivery of products and a wide range of products to choose from (Netland,
2016). It is seen that the company have developed home delivery services directly wherein
customers can order the products from the official websites (Unepiece.com, 2019). At the

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same time, adaption of direct mail advertising can link individual purchase with offers for the
customers.
Channels
The channels that are used by Uni Piece for the distribution of its products and
services usually consist of direct delivery of products to the customers via physical stores as
well as online method (Motiwalla et al., 2017). The table analyses the number of sales and
the stores that Uni Piece have in Australia so that a clear picture of the support from the
channels can be identified.
Western
Australia
Queenslan
d
Victori
a
Tasmania South
Australi
a
New South
Wales
Sales (AUD$) 45,000 75,000 20,000 18,000 5,000 10,000
Stores 5 6 3 4 1 3
Sales supported
per store
(AUD$)
9,000 12,500 6,666 4,500 5,000 3,333
Table 3: Channels
(Source: Unepiece.com, 2019)
Revenue stream
The revenue of Uni Piece can be calculated on a yearly budget by identifying the
number of sales made by the cost of each of the products. In this case, it is seen that the cost
of the products generally ranges between AUD$140 to AUD$150. The table shows the
revenue stream of the company.

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2016 2017 2018
Sales 34,000 20,000 44,000
Cost of products $140 $140 $150
Total revenue
(AUD$)
4,760,000 2,800,000 6,600,000
Table 4: Revenue stream
(Source: Unepiece.com, 2019)
Cost structure
The main costs that need to be maintained by Uni Piece include the stock costs,
distribution and selling costs and the administrative costs. The stock cost of Uni Piece is
about 30% of the revenue generated by the company (Unepiece.com, 2019). At the same
time, the distribution and selling costs is slightly high at 50% while the administrative cost of
the company is about 20% of the total revenue earned (Unepiece.com, 2019).
Key resources
The key resources of Uni Piece include the skills and talents of the employees and the
distribution channel that is adopted by it. At the same time, the method of promotion made by
the company is also considered as a key resource as it helps in the selling of the products as
well as help in the development of the website (Osei-Kyei & Chan, 2015).
Customer relationship
Uni Piece maintains an effective relationship with the customers as it maintains
regular communication with the customers via email and social media websites. It also
generates regular feedback from the customers by promoting its swimsuits on social media
(Unepiece.com, 2019). Uni Piece also provides handouts and product brochures to the
customers that visit the company to purchase products.

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2. Interrelationship
The link between the building blocks can be considered as effective for the
development of the business of Uni Piece. The interrelationship can be made between the
revenue stream and the cost structure of the company along with the channels (Dudin et al.,
2015). These determine the sales and the products costs that help in addressing the
profitability of the company (Graetz & Franks, 2016). At the same time, the segmentation of
the customers highlights the smoothness in the customer relationship and the resources
needed for Uni Piece to succeed. The value propositions and key partners suggest the stability
that Uni Piece possesses in the industry.
3. Critical success factors
The critical success factors that can be considered for the development of the business
involve the continuous improvement of its business activities and the application of capital
investment. From the analysis, it can be seen that Uni Piece invests heavily on the
development of the promotion of the company (Unepiece.com, 2019). In this regard, it is
necessary to analyse the revenue generated so that proper investment can be made (Fang &
Li, 2015). A high rate of revenue generated in 2018 suggests that the manner in which
customers are segmented have led to effective customer relationship.
4. Risk
The risk to the application of the business model can be accounted to the fact that it
fails to provide a particular price at which Uni Piece sells its products (Unepiece.com, 2019).
Hence, the calculation of the revenue stream of the company can be considered as a potential
risk factor. At the same time, customer segmentation may change depending on the
requirement of growth of business. Uni Piece may indulge in providing fashion wear in
which case the business model needs to be re-developed (Unepiece.com, 2019).

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5. Changes in the business model
The changes that can be brought about in the business model are that Uni Piece can
analyse the revenue stream thoroughly so that the purchase made by the customers can be
determined. The cost of goods sold and the sales are not reliable variables for calculating the
revenue stream of an organisation (Osei-Kyei & Chan, 2015). Therefore, a budgetary analysis
is done so that the business model can be linked with the purchasing power of the customers.
Conclusion
Conclusion can be drawn that Uni Piece has been successful in direct marketing as
suggested by the rate of revenue that is generated by the company in 3 years. The success of
the company across Australia shows that the customer relationship maintained by the
organisation is effective.
Recommendation
It is necessary for Uni Piece to understand the exact requirements of the customers so
that the business model can be changed to focus on the customer oriented factors. At the
same time ensure that the growth of business in Australia is subjected to the development of
the resources gained from providing the best quality service. Resources such as technological
development can help in improving the workload of the company and continue its growth in
the market.

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Bibliography
Dempsey, D., & Kelliher, F. (2017). Industry Trends in Cloud Computing: Alternative
Business-to-Business Revenue Models. Springer.
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.
Fang, L., & Li, H. (2015). Centralized resource allocation based on the cost–revenue
analysis. Computers & Industrial Engineering, 85, 395-401.
Graetz, G., & Franks, D. M. (2016). Conceptualising social risk and business risk associated
with private sector development projects. Journal of Risk Research, 19(5), 581-601.
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.
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.
Motiwalla, L., Bowman, B., Zheng, J., Santagate, J., Walia, V., Soucie, K., & Richards, S.
(2017). Industry Partnership for Business Analytics Programs: Role of Advisory
Board Members.
Netland, T. H. (2016). Critical success factors for implementing lean production: the effect of
contingencies. International Journal of Production Research, 54(8), 2433-2448.
Osei-Kyei, R., & Chan, A. P. (2015). Review of studies on the Critical Success Factors for
Public–Private Partnership (PPP) projects from 1990 to 2013. International Journal of
Project Management, 33(6), 1335-1346.