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FUNDAMENTALS OF ENTREPRENEURSHIP
ENT300

Business Model Canvas

KUIH KAPIT ENTERPRISE

NO. 1 JALAN ROS 3
TAMAN BUNGA ROS
85200 JEMENTAH SEGAMAT JOHOR

FACULTY OF BUSINESS ADMINISTRATION

DIPLOMA IN BUSINESS STUDIES
JBA1144I

PREPARED BY
NAME, UiTM ID NO.

PREPARED FOR
MADAM SITI FARRAH SHAHWIR

SUBMISSION DATE
1st JULY 2020

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SUBMISSION LETTER

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TABLE OF CONTENTS
SUBMISSION LETTER ............................................................................................................................ii
EXECUTIVE SUMMARY......................................................................................................................... 1
1.0 Business Background ....................................................................................................................... 2
1.1 Environmental Scanning Analysis ................................................................................................... 3
2.BUSINESS MODEL CANVAS MODEL ............................................................................................. 4
2.1 Key Partners........................................................................................................................................ 5
2.2 Key Activities ..................................................................................................................................... 6
2.3 Value Proposition ............................................................................................................................... 7
2.4 Customer Relationship ...................................................................................................................... 8
2.5 Customer Segment ............................................................................................................................ 9
2.6 Key Resources ................................................................................................................................. 10
2.7 Channel Structure ............................................................................................................................ 11
2.8 Cost Structure................................................................................................................................... 12
2.9 Revenue Stream .............................................................................................................................. 13
3.0 Conclusion ........................................................................................................................................ 14
4.0 Appendices ....................................................................................................................................... 15

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EXECUTIVE SUMMARY

• Business concepts
• Products or services being offered
• Market potential/Target market/ Location
• Competitive advantage
• The profitability
• Management team

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1.0 Business Background

• Name of the Business
• Business Address
• Form of Business
• Main Activities
• Owner Background
• Skills& Qualifications

1.1 Environmental Scanning Analysis

Elaboration on:

- General characteristics of market segment

- Industry characteristics you are in
- Existing problems addressed by industry and markets

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2.0 BUSINESS MODEL CANVAS MODEL

Business Idea: What for whom and how?

Product / Service Idea: Key functionality of the product / service.

Key Partners Key Activities Value Propositions Customer Customer Segments

Who are our Key What Key Activities does our What value do we deliver to Relationships For whom are we creating the
Partners? value proposition require? the customer? value?
What type of relationship /
Who are our Key Our Distribution Channels? Which one of our customer How many potential paying
resources do each of our
Suppliers? Customer Relationships? problems are we helping to customers?
Customer Segments expect
Which key Revenue Streams? solve? Who are our most important
Categories: us to establish and
resources are we What business products and paying customers?
Production maintain with them?
acquiring from Problem solving
services are we offering to How big a market share could
Which ones we have
partners? Platform/Network each Customer Segment? you capture in what time
established?
Which key activities Which customer needs are we frame?
How are they integrated Demographic
do partners satisfying?
with the rest of our Geographic?
perform? Who are our competitors and Benefit
Motivation for
business model?
how are we different? Psychographics
partnership: How costly they are?
Price? Examples:
Optimization and economy Mass Market
Reduction of risk and Personal assistance Niche Market
uncertainty Dedicated personal assistance Segmented
Acquisition of particular Self-service Diversified
resources and activities Characteristics: Automated services Multi-sided Platform
Newness Communities
Performance Co-creation
Customization
“Getting the job done”
Design
Brand/Status
Key Resources Price Channels
What Key Resources do our Cost reduction Through which channels do
Accessibility
Value Propositions require? Convenience/utility our customer segments
Our Distribution Channels? want to be reached?
Customer Relationships? How are we reaching them
Revenue Streams? now?
How are our channels
integrated?
Which ones work best?
Which ones are most cost-
efficient?
How are we integrating
them with customer
routines?

Cost Structure Revenue Streams

What are the most important costs inherent to our business? For what value are our customer really willing to pay? How much?
Which key resources are most expensive? For what do they currently pay?
Which key activities are most expensive? How are they currently paying?
How would they prefer to pay?
How much does each revenue stream contribute to overall revenues?

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2.1 Key partners

Key partners are the companies or people your business works with to create a strategic
relationship. A few examples of key partners are suppliers or distribution partners in
the supply chain

2.2 Key Activities

Key activities are specific activities or tasks that are fundamental to the operation of your
business.

Here are a few things to consider about key activities:

• What key activities are necessary to deliver your value proposition?
• What activities set your company apart from others?
• How do your revenue streams, distribution channels, and customer
relationships differ from competitors? How do your key activities affect these?
• Do you need to procure specific niche resources?
• Do you need to streamline to keep costs and prices low?

2.3 Value Proposition

Value propositions are arguably the most important element of the business model canvas
template. The value proposition determines the fundamental offering the company is trying
to give its customers. It is the primary driver of business operations

Here are a few things to consider about value propositions:

• What exactly is your company trying to give to customers?
• What problem is your company trying to solve and what needs are your company
satisfying?
• How do you offer something unique that satisfies the demands of your customer
segments (e.g. price, quality, design, status, etc.)?

2.4 Customer Relationship

Customer relationships are the different types of interactions a company has with its
customers.

Here are a few things to consider about customer relationships:

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• What type of relationship does your company have with its customers? For example,
do you provide dedicated assistance or are they expected to self-serve their needs
through provided support channels?
• How does the business interact with customers and how does this differ
between customer segments?
• Does your company frequently communicate with customers and how?
• How do you maintain and retain your customer in long term period?
• How much support is provided by your company?

2.5 Customer Segment

Customer Segments are the different types of customers that a company manages. A
company that produces different products will need to interact with different types of
customers.

Here are a few things to consider about customer segments:

• Who is the main focus of your value proposition? Who are you creating value for?
• Who are your most important customers? What are they like? What do they need?
What do they enjoy?
• What are your different types of customers?
• What is the customer market like? Is your company targeting a small niche
community or a mass market?

2.6 Key Resources

Key resources are the assets necessary to operate and deliver your value proposition.
Here are a few things to consider about key resources:

• What specific assets are necessary to operate your business and deliver your value
proposition?
• What resources do your distribution channels and revenue streams need to
function?
• What resources are needed to maintain customer relationships and customer
satisfaction?
• Does your company require significant capital or human resources?

2.7 Distribution Channel

Channels are the different structures and methods that are used to deliver your company’s
product and value proposition to its customers. Channels encompass all of a company’s
supply, distribution, and marketing channels. It is important to consider all channels of a
company and make sure they are functioning cohesively.

Here are a few things to consider about channels:

• How do you deliver your value proposition?
• How do you reach your customer segments? What channels are used?

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• Are your supply, distribution, marketing, and communication channels well-

integrated and cost-efficient? Are they being utilized effectively?

2.8 Cost Structure

The cost structure is how a company spends money on operations. It consists of the
company’s key costs and the company’s level of focus on costs. If a company is cost-
driven, it focuses on minimizing costs and thus prices for customers. Alternatively, if a
company is value-driven, it focuses on creating value for its customers with less focus on
cost.

Here are a few things to consider about cost structure:

• What are the key costs in your company’s business model

• What are the major drivers of cost?
• How do your key activities and key resources contribute to the cost structure?
• How do your costs relate to your revenue streams?
• Is your company properly utilizing economies of scale?
• What proportion of costs are fixed and variable?
• Is your company focused on cost-optimization or value?

2.9 Revenue Stream

Revenue streams are a company’s source of cash flows. They are the final element of the
business model canvas template. Revenue streams are the different ways your company’s
value proposition generates money. A company might have multiple revenue streams.

Here are a few things to consider about revenue streams:

• Does your company have multiple methods of generating revenue?
• What is the pricing strategy for the products offered by your company?
• Through what channels do your customers pay?
• Does your company offer multiple forms of payment (up-front, payment plans,
financing, etc.)?

3.0 Conclusion

Summary of BMC

4.0 Appendices
Any support materials

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