Ent300 2 Swot & BMC

BUSINESS TOOLS
Dr. Azlin Shafinaz Mohamad Arshad

SWOT
ANALYSIS
SWOT ANALYSIS
BUSINESS MODEL
CANVAS
(BMC)
 The Business Model Canvas (BMC) gives you
the structure of a business plan.
6 4
2 1
8
7 3
9 5
Business Model Canvas
Product/Service
Create Deliver
Organization Customers
Capture Pay
Revenue ($$)
1. CUSTOMER SEGMENTS
 Customers comprise the heart of any business model.
 Without customers, no company can survive for long.
 Important to group into distinct segments with
common needs, common behaviors, or other attributes.
 Make a conscious decision about which segments to
serve and which segments to ignore.
2. VALUE PROPOSITIONS
 Summarize why a consumer should buy a product or use a
service.
 Convinces a potential consumer that one particular product or
service will add more value or better solve a problem than other
similar offerings.
 Explains how a product solves a pain point, communicates the
specifics of its added benefit, and states the reason why it's better
than similar products on the market.
 Value proposition canvas zooms in two building blocks in BMC
(value proposition and customer segment).
3. CHANNEL
 Describes how a company communicates with and
reaches its customer segments to deliver its value
proposition.
 Either own channels (B2C), partner channels (B2B)
or through a mixture of both.
4. CUSTOMER
RELATIONSHIP
 Dictates the nature of the relationships that an
organization will develop with its various customer
segment.
 Driven by customer acquisition, customer retention,
and boosting sales (to get, keep, and grow your
customer relationships).
Types of customer r/ship:
 Personal assistance – Based on human interaction
 Dedicated personal assistance – Key account
managers maintaining personal relationships with
important customers
 Self-service – Maintain no direct relationship
with customers
 Automated services – Mixed customer self
service with automated processes
5. REVENUE STREAM
 Identify how your business makes money.
 Represents the cash a company generates from each
customer segment
 Source of revenue stream : one times sales or recurring
sales (usage fee, subscription-annual or monthly,
renting, booking, licensing, brokerage, advertising).
 Look at cost, competition and also value to customer.
Examples:
 Asset sale – Amazon.com sells books…
 Usage Fee – Telecom, hotels, package delivery service
 Subscription fees – Gyms, Astro, Telecommunication
 Lending/Renting/Leasing – Avis: provide car rental
services
6. KEY ACTIVITIES
 Tasks a company must carry out in order to fulfill its

business purpose.
 Describes the most important things a company
must do to make its business model work
 Involves R&D, production, marketing, sales &
customer service, etc.
7. KEY PARTNER
 Relationships that you have with other business,
governmental, or non-consumer entities that help
your business model work. These can be the
relationships that your company has with your
suppliers, your manufacturers, business partners, etc.
 These partnerships that you will undoubtedly create
will be forces that help your business succeed in
areas that would be inefficient for you to do yourself.
Types of partners
1. Strategic alliances between non-competitors: This means that you and a company that you have no direct
competition with, industry wise, will partner together in ways that will benefit the both of you.
Example: You can partner with a manufacturer to produce a part of your business product that you yourself may not
be able to manufacture. In return, you have a contract to pay for these parts that your partner has made you.
2. Coopetition: This is the strategic partnership between competitors. This one is a little wacky; it means that
companies who may be directly competing will still work together to generate awareness for their shared industry, in
the attempt to gain new users for all those in the industry to compete for.
3. Joint Ventures to develop new businesses: Here you may join your company with another to create an entirely
different entity, which may be more profitable for the both of you than if you were to operate separately. Example:
Blu-ray is an optical disc format jointly developed by a group of the world’s leading consumer electronics, personal
computer, and media manufacturers.
4. Buyer-supplier relationships: Specifically, building reliable relationships with a buyer or supplier. You need to
incorporate the characteristics of trust, quality, and commitment between the two entities.
Why partnerships??
 Optimization and economy of scale – Formed to reduce cost, and often
involve outsourcing or sharing infrastructure.
 Reduction of risk and uncertainty – Group of consumer electronics,
personal computer, and media manufacturers bring Blu-ray technology
to market, at the same time, individual members compete in selling
similar products.
 Acquisition of particular resources and activities – Mobile phone
manufacturers may license an operating system for their handsets
rather than developing one in-house – Insurer may choose to rely on
independent brokers rather than develop its own sales force.
 The Canvas has nine elements:
 Customer Segments: Who are the customers? What do they think? See? Feel? Do?
 Value Propositions: What’s compelling about the proposition? Why do customers
buy, use?
 Channels: How are these propositions promoted, sold and delivered? Why? Is it
working?
 Customer Relationships: How do you interact with the customer through their
‘journey’?
 Revenue Streams: How does the business earn revenue from the value
propositions?
 Key Activities: What uniquely strategic things does the business do to deliver its
proposition?
 Key Resources: What unique strategic assets must the business have to compete?
 Key Partnerships: What can the company not do so it can focus on its Key
Activities?
 Cost Structure: What are the business’ major cost drivers? How are they linked to
revenue?

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BUSINESS TOOLS

Dr. Azlin Shafinaz Mohamad Arshad

 Tasks a company must carry out in order to fulfill its

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