GrandGrasshopper2474
Hello, I need help with this assignment – Business Model…
Hello, I need help with this assignment –
Business Model Canvas
The Business Model Canvas is a powerful tool to quickly map, communicate, and innovate how a business creates and delivers value to its customers. For more information, students can watch this 2 minute video clip: https://vimeo.com/78350794
Step 1:Ulta Beauty recently laid off corporate and field management employees due to changing market dynamics brought on by the pandemic. In a memo to Ulta Beauty leadership, evaluate Ulta Beauty’s financial position using relevant indicators and advise how elements of the Business Model Canvas should change to help Ulta Beauty recover its market position while staying true to the company mission. Properly cite external sources used to support your Business Model Canvas and narrative.
Step 2:
Customer Segments: An organization serves one or several Customer Segments.
Questions to ask:
1. Which customers and users are being served?
2. Which jobs do they really want to get done?
3. For whom is the organization creating value?
4. Who are the most important customers?
Value Propositions: Organizations seek to solve customer problems and satisfy customer needs with Value Propositions.
Questions to ask:
1. What is the organization offering them?
2. What is that getting done for them?
3. Do they care?
4. What value is the organization delivering to the customer?
5. Which one of the customer’s problems is the organization helping to solve?
6. What bundles of products and services is the organization offering to each Customer Segment?
7. Which customer needs are we satisfying?
Channels: Value Propositions are delivered to customers through communication, distribution, and sales Channels.
Questions to ask:
1. How does each Customer Segment want to be reached? Through which interaction points?
2. How are they being reached now?
3. How are the Channels integrated?
4. Which ones work best?
5. Which ones are more cost-efficient?
6. How are they being integrated with customer routines?
Customer Relationships: Organizations establish and maintain relationships with each Customer Segment.
Questions to ask:
1. What relationships is the organization establishing with each segment? Personal? Automated? Acquisitive? Retentive?
2. Which ones have been established?
3. How are they integrated with the rest of the business model?
4. How costly are they?
Revenue Streams: Result from Value Propositions successfully offered to customers.
Questions to ask:
1. What are customers really willing to pay for?
2. How are they paying?
3. How would they prefer to pay?
4. Is revenue generated transactional or recurring?
5. For what value are customers really willing to pay?
6. How much does each Revenue Stream contribute to overall revenue?
Key Resources: Assets required to offer and deliver the previously described elements.
Questions to ask:
1. Which resources underpin the business model?
2. Which assets are essential?
3. What Key Resources do the Value Propositions require?
4. What Key Resources do the Distribution Channels require?
5. What Key Resources do the Customer Relationships require?
6. What Key Resources do the Revenue Streams require?
Key Activities: Required to deliver the Value Proposition.
Questions to ask:
1. Which activities are needed to perform well in the business model?
2. What is crucial?
3. What Key Activities do the Value Propositions require?
4. What Key Activities do the Distribution Channels require?
5. What Key Activities do the Customer Relationships require?
6. What Key Activities do the Revenue Streams require?
Key Partners: Some activities are outsourced, and some resources are acquired outside the enterprise.
Questions to ask:
1. Who are the Key Partners?
2. Who are the key suppliers?
3. Which are acquired from partners?
4. Which Key Activities do partners perform?
5. Which partners and suppliers leverage the business model?
6. Who does the organization rely on?
Cost Structure: Business model elements result in the Cost Structure.
Questions to ask:
1. What are the most important costs inherent in the business model?
2. Which Key Resources are most expensive?
3. Which Key Activities are most expensive?
4. What is the resulting cost structure?
5. Which key elements drive your costs?
Sources:
https://insight.kellogg.northwestern.edu/article/the-secret-to-ulta-beautys-success-joy
https://www.forbes.com/sites/walterloeb/2019/03/18/why-ulta-beauty-wins-customers-and-keeps-growing-rapidly/?sh=57a0eace664a
https://www.forbes.com/companies/ulta-beauty/?sh=6b112aae45a3
