"The Business Model Canvas (BMC) is a strategic management tool to
quickly and easily define and communicate a business idea or concept."
(Ebinum, 2019). It includes the following 9 sections:
• Key Partners
• Key Activities
• Key Resources
• Value Propositions
• Customer Relationships
• Channels
• Customer Segments
• Cost Structure
• Revenue Streams
When considering my project, which is an improvement and expansion
of drink delivery systems to homes and offices from Coca Cola, there
are a few areas I think we can address immediately:
• Value Proposition: the idea provides value to homes and offices
which are limited to typical water delivery or high waste products
such as cans and bottles
• Customer segment: the customer segment includes families and
working individuals, including small businesses, looking to reduce
waste and expand options for themselves and their customers
• Customer relationships: the idea is to expand and improve an
ordering system that allows customers to interact via an app or
online market place to quickly and easily order, for delivery, their
drink of choice (sparkling water, etc), in a lower cost, lower waste
way.
• Key activities: this is not necessarily a new activity as much as it is
an improvement and expansion of current systems. It will require
some new strategy and technical development to roll out
smoothly.
• Key resources: many of the resources are already in place, but
additional staff will likely be necessary in addition to
technological advancements to handle the only ordering system.
• Revenue streams: I think creating an easy to use system for
delivery of these beverages opens up a good opportunity for a
subscription based fee system where the consumer can subscribe
to whatever beverages they like to be delivered on a set schedule.
Similar to current water delivery systems, but will a focus on
better beverages.
There are some areas that need a little bit more work as well:
• Channels: the way customers will come into contact with the
business needs a little bit more work. Ideally, we could begin
marketing to those already ordering through traditional systems
for things like plain water and water coolers, and allow them to
opportunity to expand into other beverages. There may be some
challenges in advertising to traditional consumers since grocery
stores and other retailers may have concerns around loss of their
profit.
• Key partners: similar to the challenges from the channels
sections, we will have to be delicate in how we handle some of the
transitions. Some retailers may have concerns related to loss in
sales of products that would traditionally be sold in store. When
this system is created, it may cause more sales to come direct
from Coca-Cola, however there may be relationships for
distribution of the product that could be mutually beneficial.
• Cost structure: ideally, this could save money for the consumer
and for the producer. There will be fewer supplies needed in the
form of cans and bottles, however the company typically makes
more money from the sale of smaller cans and bottles than larger
bottles. We will have to be cautious in the structuring here to
ensure that we are not loosing to much in profit when selling in
bulk.
Ebinum, M. (2019, October 17).
How to: Business Model Canvas
Explained
. Medium. Retrieved May 18, 2022, from
https://medium.com/seed-digital/how-to-business-model-canvas-
explained-ad3676b6fe4a
