Business Model Analysis
Your Name: Mr. A
Your Company Name: XYZ Pvt. Ltd.
Your Key Products and Services:
Guidelines:
Take action one step at a time
You will unlock each step after completing the previous one and sharing your progress, challenges and data with
the action coach
Our speed is directly proportionate to your speed
Do things outside your Comfort Zone
Business Model: The story which explains how an enterprise works.
Building Blocks of a Business Model
What would be an ideal business model for achieving your Business Aspiration Goal?
Sl. No Parameters Desired
1 Customer Focus – B2B vs. B2C B2B
2 Product Nature – High Value vs. High Volume High volume
3 Organization Nature – Solo, Micro, SME, SME Corporate
Corporate
4 Sales Channel – Offline vs. Online Offline Online+Offline
5 Technology – Brick & Motor vs. High Tech Brick and motor
How do you enable repeat purchases/continuous revenue generation/upsell etc to your
customer? What is your Revenue funnel?
Primary product – Export packing once approved is a regular requirement of customer.
Industrial product – One time requirement of customer.
• What internal operating functions you need to set up to provide your product/service to your
customer?
Purchase PPC Production Quality Check Dispatch -Logistics
• What are the key resources required to provide your product/service to your customer?
4M Material , Manpower, Machine , Method
Finance
• What expert competence areas you need to have?
1. Sourcing
2. Fast throughput in manufacturing
3. RnD – continuous improvements and new products
4. Techno Commercial team for sales
• What infrastructure & facilities you need to have?
Manufacturing plant and machinery
Multi locations along geography
What key partners do you need to have to provide your product/service etc? (Vendors,
suppliers, Consultants, etc.)
Suppliers – Raw material
Logistic partners
Manufacturing contractor
Manf consultant – guide to efficient production
Branding and digital partner
HR
Sales team
Pricing Strategy
How will you charge your customer? What is your pricing model?
Price sensitive product – primary
High value product – pricing manage as per quantity
Will your customer be willing to pay for your product/service? Rate the intensity on a scale of 1 to 10.
Primary – identify the value given to your customer – then 9 else – not interested to change
High value – 6
• What are the various revenue streams for you to generate revenue from your customer?
Direct product sales.
Rental schemes
Consultancy (just an idea)
Cost & Profit Structure
• What would be the costs involved in provide your product/service to your customer? Define the
cost of the transaction.
65% RMC
10% Manufacturing
15% Admin
10% profit
Average selling price : 1500 per piece
• What will be the impact of volume on your product or service? Please chose the relevant options
below:
Increase transaction cost
Decrease transaction cost
Increase product/service quality?
Decrease product/service quality?
• What would be the ideal Gross Profit Margin you should make, based on the costs, per
transaction?
25%
• Would the gross Profit margin increase if the volumes are scaled up? By what extent?
Negligible impact – max 2% on gross profit
Net operating profit – increase by 3- 5%
• To achieve the above mentioned gross profit margins, how much should you charge your
customer?
Increase by 10% price
Competitive Advantage
What is your competitive identity?
Cost Centric – 8/10
Product Centric – 6/10
Service Centric - N/a
Sales Centric – N/a
Is your Business Model Scalable?Yes
By answering the above questions:
o What were your key lessons and/or insights?
Competence areas
Focus of customers – types
o What are some of the ideas you could think of?
I can trade in some easy to buy products which my customers need.
