Business Model Development

Recap

WHAT IS A BUSINESS WHEN IT IS DONE? WHAT ARE KEY

MODEL? COMPONENTS?
The Business Model Canvas

Source : https://en.wikipedia.org/wiki/Business_model_canvas
Key Components of the Business Model
Canvas
Customer Value Customer
Channels
Segments Propositions Relationships

Revenue Key Key

Key Activities
Streams Resources Partnerships

Cost
Structure
How to Use the Business Model Canvas

1 2 3 4
Identify and Validate Iterate and Align teams
define each assumptions refine based and
block. with real-world on feedback. stakeholders
data. .
Business Model
Canvas
 Designed For Designed By Date Version
05-02-2025 1.0
IIITL Students
Business Model Canvas

Customer Segments
Key Partners Key Activities Value Propositions Customer Relationships • Young professionals and trendsetters
• Fabric suppliers and manufacturers • Designing an d manufacturing trendy, high-
• Unique, stylish, and high-quality • Personalized customer service and support • Eco-conscious and sustainable fashion
• Designers and stylists quality fash ion prod ucts • Loyalty programs and exclusive discounts advocates
• So urcing sustainable an d co st-effective clothing
• E-commerce platforms (Amazon, Shopify, Etsy) • Engaging social media content and interactions • Online shoppers looking for affordable,
• Logistics and delivery partners
materials • Sustainable and eco-friendly fashion
• Mar keting and brand ing efforts (social • Fashion advice and styling guides quality fashion
• Influencers and brand ambassadors • Affordable luxury for fashion- • Customers sharing their outfits
media, ads, influencer collaborations)
conscious consumers • Boutique retailers and wholesale
• Retail distributors and wholesalers • Man aging e-commerce and retail sales
• Limited-edition and exclusive designs buyers
• Customer en gagement and feedback
collection • Customization and personalization • Special occasion buyers (wedding,
• Inventory an d supp ly chain management
options formal wear, streetwear, etc.)
• Strong brand identity and ethical
sourcing

Key Resources Channels

• Talented fashion designers and production • Own website and online store
team • Social media platforms (Instagram, TikTok,
• Strong branding and marketing team Pinterest, Facebook)
• E-commerce and retail distribution • Online marketplaces (Amazon, Etsy,
channels Zalando)
• Reliable fabric suppliers and ethical • Physical retail stores or pop-up shops
production facilities • Collaborations with influencers and fashion
• Customer database for targeted marketing bloggers

Cost Structure Revenue Streams

• Manufacturing and material sourcing costs • Direct online sales via website and e-commerce platforms
• Marketing and advertising expenses • Retail and wholesale sales to boutiques and department stores
• Website and e-commerce maintenance • Limited-edition collections and exclusive drops
• Logistics and shipping costs • Subscription-based fashion boxes
• Salaries for design, marketing, and operations teams • Customization and premium services (personalized designs)
• Retail and store-related expenses • Collaborations and brand partnerships
 Designed For Designed By Date Version
05-02-2025 1.0
IIITL Students
Business Model Canvas Amazon

Customer Segments
Key Partners Key Activities Value Propositions Customer Relationships • Macro segments:
• Suppliers Continuo us impr ovement
For consumers: • Self-serving / convenience • Geo-demographic: age bracket,
• Transport partners (incl Flex drivers) Add more demand & supply side par ticipants • Low prices gender, urban vs rural, lifecycle,
Stimulate consumption • Low Prices
• Manufacturers for Amazon goods • Safe purchase occupation, etc
• Marketplace sellers • Fast Delivery
• Large Choice of products (and • Behavioural (degree of loyalty, offers
• Tech partners (tech infrastructure) taken up, benefits sought, etc)
services)
For sellers: • and more
• Amazon Marketplace (w/ millions of • Micro segmentation for personalised
buyers) offers
• Fulfilment services (incl store front)
• Shipping services

Key Resources Channels

• Fulfilment network • New B2C channel
• Brand • Website, app
• Retail IT assets • Delivery network
• Value delivery IT assets (Subscription • Online help / support
services) • Various marketing chnls

Revenue Streams
Cost Structure
• Online stores: $220b
• Cost of sales: 56%
• Fulfilment: 16%
• Amazon Marketplace: $118b
• Technology & content: 14% • Physical stores: $19b
• Marketing: 8% | G&A: 2% • Subscription services: $35b
• AWS: $80b
• Advertising: $38b
• Other: $4b
Data Source: Internet
 Designed For Designed By Date Version
05-02-2025 1.0
IIITL Students
Business Model Canvas Netflix

Customer Segments
Key Partners Key Activities Value Propositions Customer Relationships • Macro segments:
• Content owners • Content creation
• Content library • Mission / positioning • Demographic: family, individual, etc
• IP holders • Content licen sing and acquisition • Empowerment, trust • Age bracket, gender
• Mar keting / influ encing • Exclusive content
• Content delivery partners (ISPs, etc) • Self-service (App) • Geo-demographic: country, city vs
• Investors (bonds) • Convenience & mobility
• Personalisation rural, etc
• Industry-specific Influencers (eg. Prizes)) • Usage parameters:
• Unlimited access (incl binge
watching) • Device type, Screen size, connection
• On-demand speed
• Localisation • Micro segmentation:
• No ads • Interest: 2,000 taste Clusters and
• Easy cancelation more

Key Resources Channels

• Brand • Consumer electronic devices (value
• Content library (owned / licensed) delivery)
• App/website • Social media / WOM
• Algorithms & data • Media outlets
• Industry-specific

Revenue Streams
Cost Structure
• Subscription plans (US: 43%, EMEA:
• Costs of Revenue (biggest: content amortisation): 58% (!)
• Marketing
32%, LATAM: 12%, APAC: 11%)
• Technology & Development • Licensing out own content
• General & Admin

Data Source: Internet

Business Model Canvas for SaaS