Strategic Retail Report: Strategic Recommendations

Strategic Possibilities using the Business Model Canvas One way to think of strategy creation is to ask yourself what goals and actions can be built around the 9 areas of the Business Model Canvas (https://www.strategyzer.com/canvas/business- model-canvas). Below you will find each area of the BMC and a sample list of some possible strategic directions. Note that you cannot possibly do everything – you should think about what makes sense in light of what you have discovered through your SRR Status Report analysis.

1. Customer Segments. Who are you selling to or serving? • Find a new segment. • Penetrate an existing segment further.

2. Value Proposition. Why do customers buy from you? What is the gain that you provide?

• Add another attribute (feature, benefit, service) to the offering. • Educate customers about how your offering fills certain salient needs/wants.

3. Channels. How are your products and services delivered to the market? How do you

reach the customers, and how to they reach you? • Strengthen and improve existing channels. • Create a new channel.

4. Customer Relationships. How do you get, keep, and grow your customers? • Improve the relationship in an existing segment (loyalty program, perhaps) • Streamline the customer journey at key touchpoints.

5. Revenue Streams. How does your business earn money?

• Develop a new revenue stream. (For example, the sale of products, membership fees, services, add-ons, etc.)

• Improve the cost structure of a given revenue stream (for example, automate parts of the system)

6. Key Resources. What unique resources does your business have?

• Capitalize on underutilized resources. (Key resources include physical, intellectual, human, and financial.)

7. Key Activities. How (through what activities) does your business deliver your value

proposition? • Improve the design, delivery, service, or other operations area of the business (think

about how the supply chain management is a key activity for Zara) • Utilize technology (or other resource) to improve the customer experience

8. Key Partnerships. What activities can/should you outsource to other companies?

• Find new partners. (Joint ventures, suppliers, marketing intermediaries…) • Build more value into an existing partnership. • Look at what can be outsourced.

9. Cost Structure. What are the major costs incurred by your business?

• Reduce costs in an area of the business (careful with this – you don’t want to reduce value to the customer)

• Outsource • Bring outsourced functions into the business