Contents 1)Presentation Date 2)Group Members 3)Report submitted to 4)Declaration 4)Introduction 4.2)Advantages of BMC 4.2.1)Focus 4.2.2) Common language 4.2.3)Value proposition 4.3)Dissadvantages of BMC 5)Business model canvas: Paypal 5.1)Segmentation 5.1.1)Customers 5.1.2)Value Propositions 5.1.3)Channels 5.1.4)Customer Relationships 5.1.5)Key Resources 5.1.6)Key activities 5.1.7)Key Partnerships 5.1.8)Cost Structure 5.1.9)Revenue Streams 6)Conclusion Bibliography
Our group has decided to choose Paypal to analyse their business model canvas. Generally, business model describes the rationale of how organisation â€œcreates, delivers and captures valueâ€ (Osterwalder, 2010).Therefore, Business model canvas is â€œstrategic managementâ€ (Pigneur, 2014) tool. It is composed of nine building blocks.The reason we have chosen business model canvas because it helps organizations to conduct structured, tangible, and strategic conversations around new business or existing ones. Organisations such as paypal use the canvas to manage their strategy or create new growth engines.
The concept of business model canvas is to provide a â€œsimple,intuitive and flexibleâ€ (Webb, 2014) tool that can be created quickly and applied to a ongoing or new business sturcture. It is used as a single page that displays overview of the business â€œoffering,infastructure, market and financesâ€ (Webb, 2014). There key advantages considered by our group are:
Business model canvas is designed to guide thinking through each of the key components. It allows business to understand how each aspect relates to the others. It allows to approach business in a systematic and formal way.The key principle of business model canvas is to concentrate on â€œquality rather than quantityâ€. Its main purpuse is to determine key inputs in each building block, its simple and focused.
The beauty of business model canvas is that it creates a common reference and language that can be used to articulate, share and gain feeback on each business model and its consitutent parts.
Critically, at the heart of business model canvas is the value proposition. Business model canvas addresses issues which are internal and external in nature and focuses on business ability to generate value. The ability to generate value is key component and all behaviours of a business focuses around that internal component. Even with significant advantages of business canvas, there are dissadvantages which have to be taken into consideration.
The BMC has some important dissadvantages as well. It completely ignores competition, therefore will not help define differentiators and market share, among other things. It also doesnâ€™t assist the user about roles and responsibilities in a business, or competence and capacity. It doesn’t define measurable goals.
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