Business Model Deconstruction Samples †MyAssignmenthelp.com

Question: Discuss about the Business Model Deconstruction. Answer: Introduction: In the current scenario, it is crucial for the firm to adopt new strategic and techniques to maximize the success rate. Business model canvas is a strategicmanagement tool that helps in creating new or documenting existing business models (Bocken et al., 2015). The report helps in analyzing the business canvas model of the firm Rang Rover. The vehicle is positioned to be a higher end vehicle having immense potential for high on-road style. The major purpose of the report is to analyze and understand the business model canvas of Range Rover. The vital factor for attaining sustainable growth by the company is to be analyzed. The relationship between the nine building blocks is to be evaluated to analyze the success factor within the organization. Through the help of business model canvas for Range rover, the relationship between the existing building blocks is to be evaluated. Moreover, recommendation is to be provided for any relevant changes that are to be made in the business, if I would be the owner. The report will help in evaluating the contribution to downside risks effectively. The main focus is on the analysis of nine buildings blocks to determine business success. Range rovers Background: Range rover also known as Land Rover is a luxurious sports utility vehicle (SUV). The Rover Company was experimenting with a more enhanced model of Land Rover Series since the year 1951. The car is under the umbrella of Jaguars Land Rover and was launched in the year 1970 by British Leyland (Landrover.com, 2018). The vehicle was previously sold in the United States through the grey market between the year 1987 and 1974. This model is now under in its fourth generation. The company officially began to sell the Range Rover in U.S. in March, 1987. Since that period till 1993 Range Rover was the only model that was offered in the US market. In 2004, Range Rover Sport was launched that is completely based on the Land Rover Discovery Platform. The worldwide sales of Range Rover has exceeded beyond 60,000 in 2015. The success rate of Range Rover is determined by its rising sales. Business Model of Range Rover Company: Key Partner Information Technology companies Visionaries Supply Chain Partners Other car companies (e.g. Mercedes-Benz) Key Activities Innovation for better driving experience Setting a new status quo regarding automotive services. Developing the future of mobility Production and Sales marketing Accelerating the pulse of the time Value Proposition Ultimate Driving experience Longest Range Quickest Acceleration Land Rover Series. Active Cruise Control with Stop Go Remote services that facilitate services like find car, comfort and lock. Connected Drive that includes both charging and parking Reaching destination on accurate time and relaxes. Customer Relationships Co-Pilot Driver Assistance System monitoring Schedule test drive Brand name (car for life) Smart Alerts Customer Segments Quality minded people, performance driven. Conscious people, urbanites and sports life. Safety conscious people Key Resources Range Rover Brand Talented people Efficient Dynamics Agile Manufacturing System Different thinking mindset regarding everything Channels Online rental bookings Third party mobility service providers Dealership Cost Structure Innovation and Exploration Research and Development Production People Training Sales Marketing Revenue Streams Service and maintenance Leasing fees Rental fees Car Sales Key Relationship between nine building blocks: Range rovers crucial relationship among the companys nine building blocks can be described effectively (Carayannis, Sindakis Walter, 2015). The major vital elements of Range rover business model are its customer segment. The company cannot survive at long-term People are highly safety and environmentally conscious and are quality minded people. The urbanites are targeted mostly and people those prefer electric cars and faster mobility services. Range rover offers luxurious sports car that give its potential customer the ultimate experience required for driving. Value proposition is another vital reason that makes the company gains major competitive advantage through specialized services (DaSilva Trkman, 2014). The customers experience is enhanced constantly by the application of new and latest technology. Range rover series comes along with Connected Drive that makes the individual to reach their destination in more relaxed manner and on time (Foss Saebi, 2017). The car has special features such as active cruise control so that the individuals can be easily assisted and in time. Various features are also added by the Range rover to provide assistance and prevent the car from any kind of mishaps or accidents. Range rover is known for its brand and rich heritage. It has efficiently maintained smooth relationship with its customer. Customer satisfaction should be the main goal of the organization (Klang, Wallnfer Hacklin, 2014). Range rover fulfills the needs of its target customer by launching product as per their demand. For most of the individuals it becomes a car for life and is therefore people consider this car with the most effective mileage. Major revenue of the Range rovers company is earned through car sales. In addition to this, the other key resources for revenue are in the form of rental fees, leasing fees and service and maintenance. The channel of the company allows the company to reach various customers so that value propositions can be delivered to them in a highly efficient manner (Metallo et al. 2018). The main channels of Range rovers are through dealership, third party mobility services and online booking. This helps the firm to gain advantage over its competitors in the business markets (Schaltegger, Hansen Ldeke-Freund, 2016). The key activities led by Range rover are usage of better innovative practices for excellent driving practices. This can be achieved only through the organization key resources that involve agile manufacturing system, better and experienced talented people. The key partners are visionaries, supply chain companies and several IT companies. Furthermore, the cost structure of Range rover is value and cost driven in nature. They provide different types of cost to the various services provide to them. Moreover, the company tries to fulfill the needs of customers by launching products as per their choice and preference (Toro-Jarrn, Ponce-Jaramillo Gemes-Castorena, 2016). Critical factors to achieve Sustainable Success: There are various factors involved to gain maximums success through critical success factors are as follows: Range rover core concern is to minimize emissions by using low carbon and energy that are renewable in nature. Combined energy efficient measures help to reduce CO2 emissions even though the volume of production continues to increase. Range rover need to decrease it cost for increased market penetration and therefore gain competitive advantage in the business environment. Recycled aluminum are to be used for Range rover Sports and Range rover models. The organization has closed loop waste recycling and recovery system at its Castle Bromwich production centre (Souto, 2015). Various kinds of incentive measures should also be allowed by the organization to the increase the level of satisfaction among the employees. Bonus rewards and incentives should be allowed to the workers from time to time. Range rover should focus on improving the safety and security issues of the car to achieve maximum excellence. Customer requirement should be clearly understood as increase levels of thefts render the luxurious sports car not insurable. Downside risks contribution: When the market condition changes it leads to cause decline in the value due to estimation of certain consequences or downside risks (Schaltegger, Hansen Ldeke-Freund, 2016). Range rovers needs to completely analyze the market situation before while performing its operational activities in an efficient way. Various kinds of strategies are to be implemented by the company so that the risks can be reduced to a great extent. The downside risks needs to be managed by Range rover by using latest version of turbocharged engines as it reduces the overall cost and has more horsepower. Improvement in the designing process of the car would lead to reduction of high operational costs. This could therefore help the Range rover to manage the downside risk. Changes required: If I would be the owner of Range rover business, to increase the key channels I would have certainly made minor changes. The key resources for the organization should be increased to maximize profitability. The products that are used to make or design the car should be more eco-friendly in nature. Energy efficient measures should be implanted to minimize the organization negative impact. Furthermore, I would send the delivery of vehicles to the dealers directly rather than via a distribution centre. This approach would save enough of my extra cost spent while delivery the cars throughout the globe. These changes could therefore lead the business to achieve its realistic goals more easily. Conclusion: Range rover fulfils all the criteria that are required in the checklist before purchasing a car. This includes luxurious amenities, comfort and power folding equipments. Therefore, it can be concluded that business model canvas is required and it helped the Range rover to succeed in the competitively. Various techniques that have been applied by the organization to solve various issues besides downside risk management. Moreover, few changes have also been recommended that could have been effectively implemented. References: Bocken, N. M., Short, S. W., Rana, P., Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. Carayannis, E. G., Sindakis, S., Walter, C. (2015). Business model innovation as lever of organizational sustainability.The Journal of Technology Transfer,40(1), 85-104. DaSilva, C. M., Trkman, P. (2014). Business model: What it is and what it is not.Long range planning,47(6), 379-389. (DaSilva Trkman, 2014) Foss, N. J., Saebi, T. (2017). Fifteen years of research on business model innovation: how far have we come, and where should we go?.Journal of Management,43(1), 200-227. (Foss Saebi, 2017) Gemes-Castorena, D., Toro, M. A. (2015, August). Methodology for the integration of Business Model Canvas and technological road map. InManagement of Engineering and Technology (PICMET), 2015 Portland International Conference on(pp. 41-52). IEEE. 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. Klang, D., Wallnfer, M., Hacklin, F. (2014). The business model paradox: A systematic review and exploration of antecedents.International Journal ofManagement Reviews,16(4), 454-478. Landrover.com. (2018).Improved refinement, luxury and capability for Range Rover.Landrover.com. Retrieved 22 March 2018, from https://www.landrover.com/experiences/news/improved-refinement-luxury capability.html# Metallo, C., Agrifoglio, R., Schiavone, F., Mueller, J. (2018). Understanding business model in the Internet of Things industry.Technological Forecasting and Social Change. Schaltegger, S., Hansen, E. G., Ldeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues. Souto, J. E. (2015). Business model innovation and business concept innovation as the context of incremental innovation and radical innovation.Tourism Management,51, 142-155. Toro-Jarrn, M. A., Ponce-Jaramillo, I. E., Gemes-Castorena, D. (2016). Methodology for the of building process integration of Business Model Canvas and Technological Roadmap.Technological Forecasting and Social Change,110, 213-225.