Detailed Business Model Analysis Report: Water Festival Malaysia

This report provides a detailed analysis of the business model for the Water Festival Malaysia, covering key aspects such as customer segments, value propositions, channels, customer relationships, key resources, key activities, key partners, cost structure, and revenue streams. The report identifies the festival's target customer segments, primarily focusing on tourists and individuals seeking leisure activities, and highlights how the festival creates value by providing relief from work routines through water rides, food, and social interaction. It examines the absence of traditional distribution channels due to the service-based nature of the festival and details the key resources, including physical, intellectual, human, and financial aspects. The report also outlines the key activities involved in event management, layout planning, and post-event analysis, along with the key partners such as suppliers and entertainment providers. Furthermore, it explores the cost structure, encompassing expenses related to location booking, equipment, and marketing, and analyzes the revenue streams generated through ticket sales and various service offerings, emphasizing the flexibility in pricing to cater to different customer needs. The report concludes by emphasizing the importance of customer relationships and the festival's commitment to providing flexible and valuable services to ensure customer satisfaction and long-term sustainability.

Running head: WATER FESTIVAL MALAYSIA
Water Festival Malaysia
Name of the Student
Name of the University
Author Notes:

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Table of Contents
1. Customer Segments.....................................................................................................................2
2. Value Proposition........................................................................................................................2
3. Channel........................................................................................................................................2
4. Customer Relationships...............................................................................................................3
5. Key Resources.............................................................................................................................3
6.Key Activities...............................................................................................................................4
7. Key partners.................................................................................................................................5
8. Cost structure...............................................................................................................................6
9. Revenue streams..........................................................................................................................6

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1. Customer Segments
The authorities of the festival have created a particular segment in mind while
formulating the initial plan for the festival. The segment that the management of the festival
targeted were based on two types of segmentation. The market was segmented on the basis of
geographical border and behavioural approach of the people who are likely to get exposed to the
event. By segmenting the market on geographic and behavioural basis, the market festival aims
to create value for the people who have affinity for travelling and enjoying leisure. All the
customers that is the guest visiting the festival are important, however, the foreign tourist are the
important customers of the festival.
2. Value Proposition
The aim of every organisation is to create value for the stakeholders (Crane et al. 2014).
The water festival helps in creating value for the customers by ensuring that the guests of the
festival leave with favourable experiences when they leave the festival. It has been found that
most of the people of Malaysia are subject to gruesome work routines (Liu et al. 2016). Thus, the
organisation has been able to identify that they latter need relief from their regular schedules.
Thus, it is helping in solving the problem of stress and anxiety that are associated with the jobs.
By the help of the festival, the latter are being supplied with leisure services, such as water rides,
food, drinks and most importantly interaction with the fellow guests who visit the festival. The
guests of the festival are offered different prices for the tickets depending on which the nature of
the services are determined.

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3. Channel
Since, the festival offers services and is not product based, there exists no distribution
channel as such. As the ultimate offering of the festival are services, there is absence of a one or
a two tier distribution channel. The services can be availed by the guests once they visit the
Penang National Parks and the Pangkor Island. The nature of services will depend on the prices
of the tickets at which the tickets will be offered to the guests. Since majority of the portion of
the guests are students and teenagers, the tickets that are meant for them are the most cost
efficient. The tickets that are priced most aggressively as they provide the maximum amount of
value to the guests.
4. Customer Relationships
The aim of every company is to create healthy relationships with the customers
(Khodakarami and Chan 2014). The Water festival has developed a business model which is
highly customer oriented. The services offer value to the customers through which the
organisation expects to formulate healthy relations with the customers. The nature of
relationships have been formulated by keeping in mind the long term sustainability of the
organisation. The latter offers to aim the value and services filled with leisure. They provide
value for money services which helps the guest gain freedom from stress and anxiety,
furthermore, it also helps them in formulating and creating relationships with one another.
Regardless of the nature of the services, the prices of the tickets do not affect the nature of
services. In order to maintain the established relation with the guest the company intends
introduce more flexibility to the services as the same determines the values that have been
established by the business model of the company.

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5. Key Resources
The resources that are incorporated into the business model of the company can be segregated
into physical resources, intellectual resources, human and financial resources.
1. Physical resources: The physical resources that are require by the organisation in order to
offer their services to the guest of the festival are the slots that are required for organising
the festivals on a weekly basis, the adequate supply of water, the tents that are required
for offering the refreshments to the guests, vending machines for the drinks, bars, food
stalls, medical facilities and washrooms, changing rooms and guest accommodation
centres which are key requirement for maintaining the customer relationship and
distribution channel and the revenue streams.
2. Intellectual resources: These fall under the intangible assets that are required by the
company. The innovative ideas, the patents and the goodwill that the company has earned
over the years of providing the services. These are essential for the value propositions.
3. Human resources: The volunteers and the service providers who deal with the guest are
the human resources that are needed by the operation of the festival. The employees of
the organisation are the human resources (Noe et al. 2017). Such resources the key
requirements of the distribution channel and the customer relationships.
4. Financial resources: The nature of operation of the business is through bank loans and
sponsorships. There are negative balances associated with the operations of the company.
The revenue that is generated by the business is used to pay of the outstanding debt.

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6. Key Activities
Key activity are business exercises that incorporate any action occupied with the main
role making a benefit. This is a general term that incorporates all the monetary exercises did by
an organization during business (Jane M. Wiggins ,2010).
Event allocating and booking: Before carrying any planning, event allocation and booking must
be completed first. This activity must be done to ensure that there are locations available for the
event to be carried on. If the company are unable to make booking on a location, this will cause a
huge delay or even a cancellation on the event that will the company a lot of money. This will
lead to unsatisfied customers that will result in loss of customerss (Murray and Scuotto 2016).
Layout planning: Layout planning is carried out to arrange the stations such as games stations,
food booth, and storages to optimize the space available and to make all the stations convenient
and give easy access for the customer. Having an organized layout will make the set-up more
efficient and help keep track of everything.
Event setup: Maintenance are done before and after every event. This is to ensure that all
equipment is in good condition and could be used for the next event. This could also help to
avoid any future problems and cancel any delay. By performing constant maintenance, the
organisation can keep tract of the needs of the business.
Post mortem: This process will incorporate reflection after the service every year. The aim of this
process is to check the processes that went well and the processes that have to be improved.
7. Key partners
The key partners of the business are the owners of the company, the suppliers, the
transporters, the entertainment partners and the advertisement partners.

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The key suppliers are the supply partners from whom the food and drinks are sourced. They are
the most important supplier as the latter form an essential part of the services the festival. The
key resources that are being acquired by the partners, are capital, food and drinks supply, music
and entertainment facilities and advertisement expertise. The key partners of the business are the
major contributors to the sustainability of the business in the future.
8. Cost structure
Expenses: The key expenses are the costs that occurs as part of a company's operating activities
during a specified accounting period (Zafar et al. 2013). In this case, Canopy, plastic water tank,
and game stations, PA system are all onetime purchases and does have to be purchase anymore,
unless it is damage and have to be replace. The canopy will be used to protect the vendors or
stations from the rain and the heat of the sun. The plastic water tanks will be used to store the
waters that the customers as they will be playing with water and the game stations would be
extra activities that the customer could enjoy during the event. The PA system will be used to
play music. Ticket printing, Location booking, advertisement, man power, and entertainment
needs the expenses annually for every event.
The location booking expenses have been identified as the costliest expense of the
business over the past month. The second costliest expenses are the expenses for the PA systems
and the later have been also identified as the most expensive activity that is undertaken by the
company.
9. Revenue streams
The company offers services to the customer at various price ranges as a result of which
they are considered flexible by the guest of the organisation. The range of services which are

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available for the guests help in making flexible ticket prices for the customers. The guest who are
willing to utilise a particular service can opt for that particular service rather than choosing the
service that is not useful for them. They aim the festival is too offer value to the customers, thus
flexibility is one of the biggest contributors to the viability of the services of the company. The
customers are willing to pay for the services which is deemed to be most suitable for them.
The customers pay for a range of services, such as gaming booths, water rides facilities,
music, entertainment, food, drinks and various other services. The guest of the festival who wish
to avail the services book the services online and through call. They can pay with cash once they
visit the festival grounds. Credit card are also accepted by the festival. It has been found that
some customers are willing to pay later rather than at point of purchase of the tickets. Thus, the
same is supposedly in the plan of the authority who are behind the establishment of the revenue
streams of the services. The revenue streams of the festival are the major contributors to the
overall revenue.

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