Business Model Canvas and Apple

When starting a new business if you are not prepared and have the right attitude your business with fail no matter how hard you try at the beginning. You need a solid business model, you need to not only know the product in and out but the customers who will be buying from you and know when and where to accept help. Even if you have a brilliant idea success is far from assured as with every great and successful business there are many who fell before it. “In order to succeed a great business idea needs a great business model” (FoundersFilms, 2014)

In class we were introduced to the “Business model canvas”, it maps out the nine essential business blocks which make up the full business model ready for you to process further and test in the field.

business-model-canvasb

As an example I will use Apple in the nine segments for a better understanding of the model. Why? Steve Jobs is an inspiring entrepreneur from a young man with a hobby for making and marketing computers with friend Steve Wozniak (Jason Fell ,??) to creating the $498 billion corporation it is today. (Paul R. La Monica 2016) Not without its trouble along the way.

  1. Customer Segments:

“These are all the people or organisations for which you are creating value, this includes simple users and paying customers” (Strategyzer, 2011) In the section I need to take into consideration who is my customer? What age, gender, ethnicity, disability, location, hobbies etc I need to know exactly who will want my product and why that particular person is going to want this product. When researching it was hard to find a pin point exact demographic, apple make a lot products as they want to capture the attention of anyone and everyone. (As long as you can afford it)

  1. Value Proposition:

“These are the bundles of products and services that create value for your customers”(Strategyzer, 2011). So what value does my product have? What is it going to offer my target audience? Apple had the idea in mind that their product would be intelligent and easy to use for their customers when saving and ordering music through iTunes as one example. Apple would also provide a sense of an exclusive community by offering their products in a clear design and signature white earphones.

  1. Customer Segments:

“These are all the people or organisations for which you are creating value, this includes simple users and paying customers” (Strategyzer, 2011) In the section I need to take into consideration who is my customer? What age, gender, ethnicity, disability, location, hobbies etc I need to know exactly who will want my product and why that particular person is going to want this product. When researching it was hard to find a pin point exact demographic, apple make a lot products as they want to capture the attention of anyone and everyone. (As long as you can afford it)

2. Value Proposition:

“These are the bundles of products and services that create value for your customers”(Strategyzer, 2011). So what value does my product have? What is it going to offer my target audience? Apple had the idea in mind that their product would be intelligent and easy to use for their customers when saving and ordering music through iTunes as one example. Apple would also provide a sense of an exclusive community by offering their products in a clear design and signature white earphones.

3. Channels:

“The channels describe in which touch points you’re interacting with customers and delivering value” (Strategyzer, 2011). Most products would distribute through retail, so I need to consider whether my product would be suitable for this and if not where would it be suitable? Social media? Television? Flyering? Where would my product get the most customer interaction from. Apple have their own stores to sell their product but do not limit to this by offering a selection of their products in stores and sites such as “Currys” and “PCWorld”. They also use television advertisements and social media but due to its overwhelming popularity word and mouth does most of the work.

4. Customer relationships:

“The customer relationships outline the relationship you’re establishing with your customers”(Strategyzer, 2011). Do i want a long-term relationship with my customer? Apple are incredibly smart and pretty evil when it comes to their customer relationship. They create long-lasting unofficial contract with their customer in the sense that once you started using iTunes it would be very difficult to then move back onto another system causing a lock in effect.

5. Revenue Stream:

“The revenue stream make clear through how and through which pricing mechanisms your business model is capturing value” (Strategyzer, 2011). The company gets their revenue from a number of sources, from the purchases of their product but to also the purchase of apps, in app extras, iTunes extras such as music and film but also gift cards and subscriptions.

Then we move onto the backstage of the business model, this part is where the customer does not see but most start of business entrepreneurs forget about.

6. Key Resources:

“Then you need to describe the infrastructure to create, deliver and capture value. Key resources show which assets are indispensable in your business model” (Strategyzer, 2011). Most if not all services need human resources to help sell the product and also respond to customers when they have queries and complaints.

7. Key Activities:

“Key activities show which things you really need to be able to perform well” (Strategyzer, 2011) Constantly looking to improve, marketing. In order to perform well they needed to make sure their product was always to a high standard, quality controlled and with the latest software and technology available for it. The design needed to be sleek and appealing to the customer and keep the Apple look trademark.

8. Key Partnership:

“The Key Partners show who can help you levership your business model since you won’t earn all key resources yourself nor will you perform all key activities” (Strategyzer, 2011) Customers, Supermarkets such as Asda. For Apple it is their manufacturers, app developers and getting new and exciting content from the music and media industry.

9. Cost Structure:

“Then once you understand your business models infrastructure you’ll also have an idea of its cost structure” (Strategyzer, 2011).What is this going to cost me to start-up, who will I have to pay one of or on a salary? Who will I need to hire in order to keep the business running. Very importantly the marketing also. For Steve, he faced many of these hurdles “Jobs had envisioned the Mac as a home computer, but at $2,495, it was too expensive for the consumer market.” (Jason Fell , ??). He had to think of production costs, costs for marketings

This is now a base outline for the Apple organization’s business model and from this i can adapt and learn to create my own.

 

 

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