Thesis - Business model for start up

1. Supervisor : Dr. Tien Minh Do
Student : Ngoc Anh Nguyen
Class : VUW10B
Student No. : 20118338
Analyzing and proposing the business model
for start-up in Viet Nam
Graduation Thesis. 2015
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2. Introduction research and business model definition
Basic Business models and case studies
Proposal and conclusion
CONTENT
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3
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3. Introduction to research and
business model definition
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4. Introduction Business Model & Case study Proposal & Conclusion
Why research on business models?
The high failure rate
of start-up
businesses
Billion-dollar brand (Uber,
Grabtaxi, Airbnb, etc.) creates
huge success through new
business models
Change in the
Government policy
orientation
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5. Business Model & Case study Proposal & ConclusionIntroduction
•1911 :Why do some firms continual outperform other ?
•1950 : Organization’s structure is a combination
between internal and external expectation.
•1982 : SWOT
•1985 : Five competitive forces
•Loosing conception of how a company does business and
generates revenue
•Talking about strategy and competitive advantage
•Mean everything and end up meaning nothing.
Business
modelStrategy
•Making it difficult to separate the two notions
•Strategy and business model are different
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6. Business Model
Strategy
Tactical Set A
Tactical Set B
Tactical Set C
Tactical Set D
Introduction Business Model & Case study Proposal & Conclusion
Which approaching way do I support ?
Possible business models
Strategy-plan of which
business model to adopt
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7. Business Model ways of thinking
Logic of earning
money
The business model describes the
rationale of how an organization creates,
delivers and captures value
Logic of using
competitive advantage
Plan of all business
activities
The business model as a possible integrator of
different strategic perspectives on firms‟
sustained competitive advantage to create a
wider understanding of a firm’s sustained
competitive advantage
The business model is its plan or diagram for
how it competes, uses its resources,
structures its relationships, interfaces with
customers, and creates value to sustain itself
on the basis of the profits it generate.
Introduction Business Model & Case study Proposal & Conclusion
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8. 2
Basic Business models & Case studies
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9. Product Development model 1
Model
1
Idea/ Concept Developing product
A/B test & make
change
Launch 1st trip
Introduction Business Model & Case study Proposal & Conclusion
For example
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10. Product Development model 2
Idea/ Concept
Developing
product
A/B test & make
change
Launch 1st trip
Introduction Business Model & Case study Proposal & Conclusion
Model
1
Windows Phone 10
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11. Product Development model
Introduction Business Model & Case study Proposal & Conclusion
It only suitable with the
available market
Concentrating in resources to
optimize products in the areas
of product shortages
The shortage of customer
The first customer ship
Lack of methodological
research to study and explore
The shortage of research to
choose customer and market.
Model
1
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12. Customer Development model
Introduction Business Model & Case study Proposal & Conclusion
Model
2
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
STOP STOP STOP
Pivot
Finding the right product/market fit Transition from start-up to a real business
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13. Customer
discovery
• Make these hypotheses ( Product, Customer, Channel and price, Market types, Competition )
• Checking and adding the problem of assumptions
• Checking and adding the problem of product concepts
• Confirming
Customer
validation
• Ready to sell
• Selling for customer –who have vision
• Positioning
• Confirming
Customer
creation
• Preparing to appear before public
• Positioning company and product
• Presenting your company and your products before public
• Creating need
Company
Building
• Approaching the major customer
• Reviewing managing system
• Customer development group complete the functional department
• Building the fast response function.
Introduction Business Model & Case study Proposal & Conclusion
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14. Customer Development model
Introduction Business Model & Case study Proposal & Conclusion
Model
2
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
STOP STOP STOP
Pivot
Example:
Airbnb
Price is an important concern of
customers booking travel online
Hotels leave you disconnected
from the city and its culture
No easy way exits to book a room
with a local or become a host
A web platform where
users can rent out their
space to host travelers
to :SAVE MONEY, MAKE
MONEY, SHARE
CULTURE
630,000 on
temporary housing
site couchsurfing.com
17,000 temporary
housing listings on SF
& NYC Craigslist from
07/2009-07/2016 $24 Billion Valuation
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15. Customer Development model
Introduction Business Model & Case study Proposal & Conclusion
Model
2
Developing products for
a small group
Good enough” product and
right sale process ?
What is your
kind of market
and Marketing
strategy for
each ?
Building culture
and organization
which focusing on
mission
Minimum Viable Product (MVP
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
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16. Business model canvasModel
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Introduction Business Model & Case study Proposal & Conclusion
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17. Business model canvasModel
3
Introduction Business Model & Case study Proposal & Conclusion
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18. Customer value canvas for each segments- ( Product / Market fit )
(5)Value proposition (1)Customer segment
(6) Product and
services
(7) Gain creator ( 2)Gains (2)Job to done
Understand
customer
(8) Paint reliever (3) Pains
Each approach requires completely different
logistics, resources, and activities
To have completed business model cavas
for your company you need always learn
and improve
Model
3
Business model canvas
Introduction Business Model & Case study Proposal & Conclusion
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19. Business model canvasModel
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Introduction Business Model & Case study Proposal & Conclusion
Example:
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20. UBER research and testing
1. The problem with local Taxis
2. The efficiency of the status quo or producers/consumers
3. The early adopters and approaching plan
Treat your initial users as kings
Uber offered rides from club venues to user’s doorstep so the party
people were amazed. It offered rides to the corporate sector who worked
in offices helping them to save time
4.Testing and evaluating hypothesis many time
Uber often experiments with new concepts .Everything starts with a small
city launch team and Expand step by step. Every city has a general
manager who heads the customer acquisition as well as driver acquisition
Treat your workforce an important part of your business
5.Main Growth opportunities tapped by Uber (use each canvas for each
case )
UBER Uber is an on-demand transportation service - an
intermediary services.
Users will install and set up Uber on their
smartphone .The application provide a map
locations of car to make the active interaction
about time and transportation
Uber has been able to grow at exponential rates
since its founding in 2009 and appear in Vietnam
from 6/2014 as “ Sharing economic
Uber is one of those few tech companies in the
world that has been valued over $50 Billion. Uber
has already received an equity funding of $8.2
Billion and is present in 60 countries.
Model
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Business model canvas
Introduction Business Model & Case study Proposal & Conclusion
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21. Key Partner
1.Driver with their car
2.Payment processors
3.Map API providers
Investors
4.Car maker
Key Activities
1.Marketing product and
customer acquisition
2.Hiring driver
Managing driver payouts
3.Customer support
Product 4.Developmnet and
Management
5.Building greater communities
driver , rides
Value Proposition
Customer
1.Minimum waiting time
Prices
2.Can see ETP and track a car on
the map
3.Cheaper prices
4.Cashless drives
Driver
1.Additiional income
2.Work Part time
3.Easy payment proceduce
4.Pay online without requests
Customer relationship
1.Social media
2.Customer support
3.Review ,rate and feedback
system
Customer segment
Customers
1.No have a car
2.Do not want to drive
themselves to Party
3.Like to travel style and want
to be a VIP
Driver :is not customer but is
complementary services
1.Have a car and want to earn
money
2. Wished to be a partner ,not
called driver.
Target customer
Upper class, Business,
Technology , Urban middle Class
Channel
1.Website
2.Mobile app for android or
iOS
Key resource
1.Skilled driver
2.Technology
3.Platform
Cost
1.Technology infrastructures
2Salaries to payment employees
3.Launches event and Market expenditure
4.Goverment and regulator relationship
5. No investment (car )
Revenue
1. Driver per km
2.Surge Prices, Uber rideshare
3.Uber kind : Uber X, Uber black ,Uber taxi, Uber SUV, Uber pool,
Uber -Business model canvas
Model
3
Introduction Business Model & Case study Proposal & Conclusion
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22. Key
point
for
Uber’
lesson
Scale the personalised customer experience
Scale unit economics :predict the unit economics to begin with which can generates revenue
 confirm model can earn revenue
Scale the right mindset for the right time
Scale simplicity Uber is a classic example of elegant simplicity solving a single problem
Scale through validated learning
Scale thoughtfully : Each function must mature at the same rate, or at least close to it. Uber has achieved this. By
avoiding the trap of ‘one-size fits all’, and smaller thinking, and iterating on one element of the taxi experience
Scale Out (Think outside ) :Most startups focus on scaling up customers and revenues, but you need to build
your architecture in an intelligent way that will allow you to grow to realise your potential and get the new opportunities from
environment and customer, without over taxing your team or endangering your roadmap
Model
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Business model canvas
Introduction Business Model & Case study Proposal & Conclusion
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23. 3
Proposals and conclusion
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24. The reason for proposals
 Entrepreneurship as a Science. Each time a standard solution emerged, innovation didn’t stop. It just allowed new
innovation to begin at a higher level.The assumptions in their original business model in reality often has some wrong
thing (wrong sales channel, revenue model, target market or customer) which creates a crisis which can destroy your
company quickly
 Customer Development has no structured and systematic way of describing a business model and your business
model is nothing more than a set of untested hypotheses
 Business Model canvas should be used for something much more than a static planning tool
Introduction Business Model & Case study Proposal & Conclusion
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25. My model proposals
Introduction Business Model & Case study Proposal & Conclusion
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27. Proposal &
Conclusion
Case studyBusiness Model
Introduction to
research
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28. Proposal &
Conclusion
Case studyBusiness Model
 eliminates bad online shopping experiences through its online product search
engine
 establishes the direct relationship between the buyer and seller
Products and features
The failure and the lesson
 They focused on calling for investment capital from
venture investors. With the time commitments
following investor’s acception
 Product development with ideas, the hypothesis has
not been inferred through verifiable fact
 Never found the right initial customer
 Never analysis of cultural habits of users
use customer development to overcome the
common mistake in building business.
Introduction to
research
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29. Having customer for the initial products
Find development model before spending large
sums of money for marketing activities.
Saving money :Find new ways to reduce costs,
help shape the initial products and how you first
introduce the differentiation to customer
Have process with these clear milestones
No structure :It do not show the structure of company with
each spate part and their correlate relationship
No tools and standard :do not support these tools and standard
to optimize business model in the long-term period. It only
draws milestones in business .
Customer opinion :It only stands at customer’ opinion so it can
not indicate all opportunity, threat or tradeoffs cost which come
from other part.
Advantage
Model
2
Customer Development model
Introduction Business Model & Case study Proposal & Conclusion
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30. Advantage Disadvantages
A general and structured view
Integration :It can combine with some famous model theory SWOT
,Porter's Five Forces ,Lean Start up, Blue Ocean
Innovation : starting and adding a small point in the separate times
(predicting some cases in the future )
Convenience :Help you to orient the choice of values ​​and understand the
cost tradeoffs respectively
A static planning : don’t have a schedule with specific processes
and essential starting point
It do not provide the measuring tools : mearsuring, learning and
research the external factor
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31. Time
Sale
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