Q: Using one real world company as a case study, discuss how the business model canvas approach can provide researchers with a framework for assessing the feasibility of a business’s design
The feasibility of a business’s design depends on whether the business is able to effectively establish a systematic model. Thompson (2005) defines feasibility as a “controlled process for identifying problems and opportunities, determining objectives, defining successful outcomes and assessing costs and benefits of several alternatives to solve a problem”. This is used to determine whether the business model canvas (BMC) is a viable framework to assist organisations in creating a configured, palpable and prudent structure sought to shift towards informed …show more content…
An analysis of Airbnb’s implementation of these crucial components of the BMC will also be made to establish whether its integration has assisted in a successful performance by the enterprise to determine its plausibility as a design.
The process of creating value proposition is intrinsically linked to all components of the canvas approach. Since share economy businesses have two principle market subdivisions, the customer segment component of the BMC must be taken into consideration to address its feasibility. This element intends to create value for both the owner, to transfer resources to a peer sharing company, and the customer, to participate in collaborative consumption. A business creates a customer-driven service by understanding the segments through behavioural studies (Lenaerts 2013). The value proposition of Airbnb is to establish a “trusted community marketplace for people to list, discover and book accommodations” through customer benefits such as personalised service (Lepers 2014). This reveals the integration of value propositions and customer segments …show more content…
The key activities and resources component of the BMC is used for an analytical study of the business’s structure. Management of resources for share economy business’s play a significant role in meeting standards established through the value proposition. The study by Choo & Woo (2014) classifies resources into material, rational, human and economic resources that must be controlled and maintained effectively to warrant efficient performance. According to one of the founder’s of Airbnb Joe Gebbia, the enterprise “helps people become more resourceful by connecting people around the world” (Entrepreneurial Insights 2014, para. 1). This suggests that an effective utilisation of resources is imperative for a share economy business to solve problems by determining objectives and measuring success to determine feasibility. A study of Airbnb’s business model reveals funding from Silicon Valley investors such as Google and Facebook resulting in long-time operation periods and increased revenue (Kenontek 2014, para. 11). This is shown through Airbnb valuing at $10 billion, significantly higher than top tiered hotel chains such as Hyatt (Spors 2014), revealing the ways BMC can be used to determine the feasibility of a business’s design upon implementing the crucial components. Despite this however feasibility study is based on
The feasibility of a business’s design depends on whether the business is able to effectively establish a systematic model. Thompson (2005) defines feasibility as a “controlled process for identifying problems and opportunities, determining objectives, defining successful outcomes and assessing costs and benefits of several alternatives to solve a problem”. This is used to determine whether the business model canvas (BMC) is a viable framework to assist organisations in creating a configured, palpable and prudent structure sought to shift towards informed …show more content…
An analysis of Airbnb’s implementation of these crucial components of the BMC will also be made to establish whether its integration has assisted in a successful performance by the enterprise to determine its plausibility as a design.
The process of creating value proposition is intrinsically linked to all components of the canvas approach. Since share economy businesses have two principle market subdivisions, the customer segment component of the BMC must be taken into consideration to address its feasibility. This element intends to create value for both the owner, to transfer resources to a peer sharing company, and the customer, to participate in collaborative consumption. A business creates a customer-driven service by understanding the segments through behavioural studies (Lenaerts 2013). The value proposition of Airbnb is to establish a “trusted community marketplace for people to list, discover and book accommodations” through customer benefits such as personalised service (Lepers 2014). This reveals the integration of value propositions and customer segments …show more content…
The key activities and resources component of the BMC is used for an analytical study of the business’s structure. Management of resources for share economy business’s play a significant role in meeting standards established through the value proposition. The study by Choo & Woo (2014) classifies resources into material, rational, human and economic resources that must be controlled and maintained effectively to warrant efficient performance. According to one of the founder’s of Airbnb Joe Gebbia, the enterprise “helps people become more resourceful by connecting people around the world” (Entrepreneurial Insights 2014, para. 1). This suggests that an effective utilisation of resources is imperative for a share economy business to solve problems by determining objectives and measuring success to determine feasibility. A study of Airbnb’s business model reveals funding from Silicon Valley investors such as Google and Facebook resulting in long-time operation periods and increased revenue (Kenontek 2014, para. 11). This is shown through Airbnb valuing at $10 billion, significantly higher than top tiered hotel chains such as Hyatt (Spors 2014), revealing the ways BMC can be used to determine the feasibility of a business’s design upon implementing the crucial components. Despite this however feasibility study is based on