Business Model Canvas for Enterprise - Essay Example

? number: Email Address: Word Count for Task and 2 828 words Task 1. Business Model Canvas for Sotify.com Key partners Key Activities Value Proportions Customer Relationship Customer Segments Rightholders Value proposition Advertising Access to music via streaming and download service Advertizing Free drivers paid Automated online relationships 3rd party APIs Communities Advertisers Key Resources Channels Royalties to the shareholder Salaries Bandwidth costs Global Music fans Core Structure Revenue Streams This business operates on a multi-sided platform. This is because it is the advertisers and the users who support the business. They have a symbiotic relationship; hence, this makes up the value proposition for the business. Advertising fees Subscription fees pc Subscription fees pc and mobile. 2. Description of the business using the Business Model Canvas a. Customer Segments Spotify.com operates on a multi-sided platform business model. This is because there is one customer segment supported by advertisers who are the main users. The unit serves two customer groups who are co-existent. Blecker (2012) affirms that they have a symbiotic kind of a relationship whereby Spotify.com offers a proposition for them both. For the user, their main expectation is to get some spectacular music to listen to and an out of this world musical experience. The advertiser is always looking out for an audience to promote the product. This is spotify.com offers to the broad consumer base at no cost whatsoever. b. Company’s value proposition According to Clark, Osterwalder, & Pigneur (2012), Spotify.com’s value propositions are advertising for those who want to know about the nature of the business. For those who want to access the music freely can get free unautomated access to the music via downloadable links that are offered at no cost whatsoever. For those who can afford, they can subscribe to get unlimited access to the music on their personal computers and mobile phones. By advertising, the company is able to introduce the customer to the product in question. This enables them to enlarge their customer base hence leading to customer satisfaction. c. Channels Spotify.com‘s distribution channel is made up of international music fans who mainly download music. They subscribe to the downloadable music services hence acting as the main source of revenue for the company. The website and the social media i.e. facebook and twitter are also used for internet marketing. Facebook works best as the company boast a whopping 1,000,000 fans. Facebook usually reaches the explicit core of the youths who comprise our largest customer base (Porterfield, Khare, & Vahl 2011). This s being integrated with customer routines by awarding the highest subscribing consumers through paying for their monthly subscriptions. d. Customer Relationships According to Dunford (2011), spotify.com customer relationship mainly comprise of the online communities since they are the ones who use the service more than any other community does. 3rd party Programmers, which include marketing companies, also make a segment of the customer relationship. These marketing companies are accessed online since we have automated online relationships whereby the music may be accessed globally. The customers make subscriptions to our music where subscriptions cost vary depending on the high and low seasons of the business. Conversely, the cost for the service depends on the amount that was used for advertising, bandwidth, plus the salaries and royalties. e. Revenue streams Hesselbach and Hermann (2011) said that the revenue streams in from advertising fees, subscription fees for the pc, and subscriptions for the pc and mobile. The customers are able to pay for their monthly subscription fees through credit cards and PayPal. For the annual subscribers, we offer them a twenty percent discount. This revenue streams significantly foot salaries, advertising costs, bandwidth fees and the royalties to the right holders. f. Key Resources According to Tamodia 2009, & England (2010), the key resources that spotify.com manages are the royalties to the right holder. Our right holders include the artist aggregators, and the recording companies. The salaries to the rightholders and royalties paid to the rightholders are also key resources for the company. Rightholders are our key suppliers and distributors. Through them, we are able to have a constant supply of music. The other important resources to us are the bandwidths and other parties. They both play a key role in ensuring that spotify.com remains in market. g. Key activities Tamodia 2009, & England (2010) states that the key activities that the company engages in are advertising, value proposition, providing access to music via streaming and download service. The company also offers unautomated access to the company’s music. At times, the company educates the workers and the public on their mandate in the music industry. The value propositions are also part of the key activities of spotify.com this is used to deliver the product timely and in a consumer friendly manner to our esteemed consumers. Adverts are posted regularly on the website, blogs and fan pages. In addition, Spotify.com offers unautomated access to downloadable music links. h. Key Partnerships Maurya (2012) affirmed that the key partnerships to spotify.com have been with the right holders who are generally the recording companies and the artist aggregators. They provide access to the music that the company deal in. They also offer the legal rights to distribute the music. These online communities are also partners in that; they offer market for the product. The Online 3rd party Programmers and interface stylists offer 3rd parties partisan to spotify.com, they are concerned with graphics and technology issues. The IT companies selling bandwidth are partisan to spotify.com, since, without them spotify.com cannot operate. The advertising companies are partners too. i. Cost structure According to Kaplan (2012), the cost structure of the spotify.com is composed of the salaries paid to all the shareholders to the company. It includes the bandwidth costs of spotify.com, advertising costs, and the royalties paid to the right holders. This is reflected in the maintenance costs for the organizations websites. The most expensive key resources are advertising fee, salaries, and royalties paid to right holders. The key activities that are most expensive are bandwidth costs and salaries. Advertising fees and subscription fees, and the free drivers are the most expensive resources. 3. The Business Model Pattern According to Porterfield, Khare & Vahl (2011), Business Model Pattern retrieved from the architecture represents the ideas of capturing the architectural design ideas as well as the archetypal and reusable descriptions. Hereby, the archetypal business models were described or mapped using the business model canvas as a way of describing businesses with similar characteristics, similar arrangements of business building block. They include unbundling, the long tail, multi-sided platforms, free and open business models. According to Tamodia 2009 & England (2010), Spotify.com utilizes the multi-sided platform as it has the user segment and the advertisers on the other hand. They both face a symbiotic relationship, hence the multi-faceted nature of the business. The company is mandated to meet the needs of both platforms. Spotify.com strives to meet the customer’s needs through an excellent reputation, which is the secondary factor to meet the value propositions that the organization envisions to achieve. The business does not quote any fee for access to their product; therefore, this serves as an attracting ingredient for spotify.com to increase its customers segment. They have a huge customer segment that streams in enough revenue to meet the company’s cost structure. Spotify.com operates on “no location-bound” business premises that create global markets to the customer with no timeframe whatsoever. The business model is therefore free. Task 2 1. Strengths and weaknesses One of the strengths I posses is that I am well organized. I run all my activities with a time schedule to ensure that I meet the expectations. I am sensitive to deadlines and I endeavor to follow instructions to be able to deliver my work in the most organized manner. In addition, I take full responsibility for all my activities. For example, I have to juggle between classes and other activities. I therefore have to plan my time to be able to be in the right place at a particular time without necessarily being pushed to do so. Second, I am good in time management. I first ensure that I am well versed with all the activities and their particular expected time of occurrence. This enables me to be able to carry out all my activities efficiently and in a timely manner. For example, I usually study every day from 7a.m -9a.m. I spend the better part of the day doing a part time job. With this, I therefore have a definite schedule for the day. Third, I am good at problem identification and coming up with a solution. Like for example in my class, I am able to come up with solutions to problems even when everybody else feels its impossible to do that. When I cannot meet that, I am not shy at consulting. This has always broadened by knowledge base hence preparing me more for harder tasks. My weaknesses are many but I will mention two. I have a problem with procrastination. Due to tight schedules, I often find myself postponing some activities to some later date. In so doing, I have found myself loosing various one off opportunities. I most of the time find them outdated when I want to engage in. Impatience is another weakness that can be used to describe me. This is because of the tendency to carry out tasks in haste. This has always made me to perform task below perfection. 2. Roles of team players From the list provided, I find myself more inclined to the organizer and moderator roles. Through the tasks I have handles so far in life, I often find myself more comfortable with the organizer role. My attention to details and ability to foresee how ideas and plans are to be carried out, I am able to execute the plans, procedures, and implementation process. I would then organize the people into smaller teams, which would enable us to meet the team’s goals and objectives. As a moderator, I am able to champion for the rights of the team. I am able to make sure the voice of all the group members is heard in all facets of society. I offer Impartiality to all parties involved. This has always made the team enjoy a smooth sailing in resource management, conflict resolution and directing our efforts to a common goal and objective. I often encourage my team to ensure they are in good stead before proceeding to the next step. The controller is not a favorable role to me. Controllers are usually concerned with the following of stringent rules to the latter including, adherence to various set codex. They also insist on discipline and also perfection and keenness to the detail. They often despise team members and always end up sad and disappointed in the group members. All those characteristics make me avoid taking the role of a controller. References Blecker, T 2012, Pioneering Supply Chain Design: a comprehensive insight into emerging trends, technologies, and applications. Lohmar: Eul. Clark, T., Osterwalder, A., & Pigneur, Y 2012, Business model you: A one-page method for reinventing your career. Hoboken, N.J: Wiley. Dunford, E 2011, Architecture Principles The Cornerstones of Enterprise Architecture. Berlin: Heidelberg, Springer Berlin Heidelberg. Frisendal, T 2012, Design thinking business analysis: business concept mapping applied. Berlin: Springer. Hesselbach, J., & Hermann, C 2011, Functional Thinking for Value Creation Proceedings of the 3rd CIRP International Conference on Industrial Product Service Systems, Technische Universita?t Braunschweig, Braunschweig, Germany, May 5th - 6th, 2011. Berlin: Heidelberg, Springer-Verlag Berlin Heidelberg. Http://dx.doi.org/10.1007/978-3-642-19689-8. Kaplan, S 2012, The business model innovation factory: How to stay relevant when the world is changing. Hoboken, N.J: John Wiley & Sons. Maurya, A 2012, Running lean: iterate from plan A to a plan that works. Sebastopol, CA: O'Reilly. Osterwalder, A., & Pigneur, Y 2010, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers (6th edition). Hoboken: John Wiley & Sons. Porterfield, A., Khare, P., & Vahl, A 2011, Facebook marketing all-in-one. Hoboken: John Wiley & Sons. Tamodia 2009, & England, D 2010, Task models and diagrams for user interface design: 8th international workshop, TAMODIA 2009, Brussels, Belgium, September 23-25, 2009 : revised selected papers. Berlin, Springer.For dummies. Hoboken, NJ, Wiley Pub. Read More