Case Study: Use of Business Model Canvas for a better understanding of the Business Structure
I’d like to share my experience of using Business Model Canvas (BMC) to gain a better understanding of the company’s detailed business structure. As part of my research, I conducted a digital transformation project in collaboration with one SME in Japan. The company has been established since 2001 and sells more than a thousand products, including traditional souvenirs and daily commodities.
Business Understanding
For a better understanding of the business, I interviewed and discussed with key stakeholders, including the CEO of the company. The purpose is to get a deep understanding of the company’s business, goals, and problems. However, the overall structure of the business cannot be understandable through interviews and discussions only. Therefore, I used the Business Model Canvas (BMC) to analyze the business structure and created a user persona based on the observations to reflect the aims and motivations of users.
Business Model Canvas (BMC)
The Business Model Canvas includes nine essential components, namely customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. These components represent the logic of how a company creates money and cover the four essential areas of the business, such as customers, offers, infrastructure, and financial viability.
In this project, I primarily focused on two components in the development of the Visual Merchandising project, which are as follows:
Customer Segments: The company has three main customer segments, such as foreign customers, Japanese sightseeing, and Japanese resident customers.
Value Propositions: The value propositions are to attract many customers with attractive store displays and layouts in the stores, and also to provide customers’ satisfaction with excellent services and high-quality products.
The following figure shows the result of the business model analysis of the company:
To conclude, the Business Model Canvas is a powerful strategic planning tool and it allows me to get a deep understanding of the company’s business structure. In addition, it can assist me to gain a clear picture of the whole business.
For more understanding of user persona, you can read my previous story related to this one.
Thanks for reading!
