How Business Model Structure Restores & Grow Business

My friend is looking at a business in TV, Radio, and other electronic gadget repair in a small city in India.

He is not able to run this business in the shop which he took for rent. With this business he is no longer able to feed his family.

Customers were not turning to his shop to repair the electronics gadget. The market has changed in dacede.

He was wondering what he could do?

He is good at his job, but he requires to work so that he can exercise his skills.

A couple of his friends had helped him reformulate his business.

All of his acquaintances are fully versed in the business model structure.

All of them backed him to explain this model to redesign the business in a distinctive way

Osterwalder and Pigneur describe typical patterns of business models using the Business Model Canvas. All of his associates revealed this model to set up a freshly amended business for him.

It worked for him and his business.

We recognize every business model has a product and/or service at its center that concentrates on a customer’s job to-be-done.

They were coming up with to establish a new business to repair the same electronic items, but in a unique manner.

He has contacted all the consumer electronics manufacturers and passed the test to obtain a certified repair engineer for washing machines, microwaves, etc

He has tied up with all the dealers to call him when customers call for repairs.

Let us look at all the building blocks of this recent business model. How it was formed, what all aspects have been considered into.

First, we look at the desirability:

Value Block:

A few questions we have asked here:

• What are we offering?
• What problem are we solving and why do people come to us?

We have glanced into the value proposition of this service. There are many individuals in that town who are using different gadgets which are going bad and those that need repair. People prefer to go to authorized dealers to repair the gadgets. So now he is not just depending on his shop customers, as he is getting the call from them to serve them off course through dealers and agents. The customer always looks for service engineers at the local place, quick to repair the gadgets instantly. He was promptly accessible. He got the genuine spare parts from the dealer, if anything called for to be replaced. He is not on any company payroll, so he runs as a contractor for those dealers and agents.

Customer Block:

A few questions we have asked here:

• Who are our clients and why should they purchase from us?
• Who are our most critical customers?
• Who else can the customer move to than us?
• Who are our competitors?
• Why will they stick to us?

His fundamental target customer comes from call center support in that locality. They are predominantly middle-class individuals who do not replace gadgets very quickly. They prefer to keep servicing the gadgets for many years. Most of them call him, as he has already built relationships.

Rich people replace the gadget after 2-3 times the service of the gadget.

The target customer will not go elsewhere comfortably.

Channels Block:

A few questions we have asked here:

• How do we want to reach our customers?
• What is the highly optimal way to reach them?
• What are the numerous ways we can approach our customers?

His first line of orders comes from the call center. His other familiar support call comes from his own network. His network has expanded over a period of time.

Due to his relationship and service, people call him by default. Now he has kept a few support guys for his assistance.

He also offers installation demos and service demos. That was also another platform through which he shared his support.

Customer Relation Block:

A few questions we have asked here:

• How do we support our customer relationship?
• What is the current practice now?
• How do our customers want us to associate with them?
• How are we gaining/losing customers here?

In this business, relationships are vital. As it is a small town, everyone knows everybody. So he has built that support efficiently.

We look into the Viability:

Revenue Streams Block:

A few questions we have asked here:

• How will we make money?
• How are they paying today?
• What is our proposal?
• Value for money in our offering?
• Are we able to fetch recurring revenue?

He gets the % from customer support. He has his shop where he again repairs the gadgets if he is not on the support call. He gets orders from dealers for a large installation at the housing society.

Cost structure Block:

• What is the most fundamental cost?
• What are the Fixed and Variable costs
• How will we meet break-even?
• Can we scale up?
• Is it a game-changing model?

He has to pay rent for his shop. He has to pay a salary to a few of his assistants. He has to pay some commission to the dealer to get the support call.

We looked into the feasibility:

Key resource Block:

• Who are our key partners?
• Where are the key revenue channels

We look into his skill set to repair such gadgets. He has to do a few certification courses to become authorized. He had completed 3 yrs Electronics gadget repair course from the nearby capital city initially. and now he has to continue his skill-up-gradation, which costs money.

He has his friend circle who has helped him with advice if required.

Key activities Block:

A few questions we have asked here:

• How are we securing Value proposition?
• How are we dealing with our partners and distributors?
• How are we safeguarding a revenue channel?
• Are we competent to obtain recurring revenue?

He goes to dealership meetings and enhances knowledge of latest introductions of the new gadgets into the market

He also has to give sales demos, so he gets training from the company

Partnership Block:

A few questions we have asked here:

• Who are our necessary partners?
• Who are our key suppliers?
• What do we want them to do?
• What do we give them?

His dealers are his major partners,

They get the business and he is part of their network

There are many agencies through which he is able to get support calls. He is going to preserve those relations.