JDBR27 Business Model Canvas - Free Samples to Students
1. Provides a succinct description of the business, the industry in which it operates, the market(s) it serves, and the products and services it provides
2. Describes the business model canvas of the selected business using the nine building blocks
3. Explains the key relationships that exist across the nine building blocks
4. Identifies and discusses the critical success factors the business has to get right to achieve sustainable success
5. Evaluates what will contribute to downside risk
6. Discusses the changes you would make to the business model if this was your business
7. Quality of critical thinking (ability to critically evaluate evidence, and demonstrate the ability to identify strengths and weaknesses logically)
8. Quality of communications (ability to clearly and professional deliver information both from the scholarly and non-scholarly sources and maintain a clear line of argument)
Answer:
Introduction
Pelican Airlines Private Limited is best known as Fly Pelican. It operates with the latter name and is an Australian regional Airline (flypelican.com 2018). Initially it started operations as chartered Airlines. However the Company started operating scheduled Commercial flights from 1st June, 2015. Headquartered in Newcastle of New South Wales, the company has its main operating base as the Newcastle Airport. The company was formed by the staff of aero pelican and uses the former aircrafts used by the mentioned company. The management of the company focuses mainly on Sydney but has its destinations all over Australia. This includes the likes of Canberra, Ballina, Dubbo, Mudgee, Newcastle, Taree and most importantly Sydney and Adelaide. The company currently operates 5 different British Aerospace Jetstream 32 with a capacity of 19 passengers each. The logo of the mentioned Airlines is pasted below;
Business Model
As with any other business, the main thing to consider while looking at Airline Business and Airline Management are the most commonly used business models in Airline. The business model in general, determines the way a business intends to make money or earn revenue. There are different kinds of possibilities as such. However
the management of “Pelican Airlines” has chosen two specific sets of Business Models that tends to provide the best solution to their business needs. The management of the mentioned Airlines has chosen holiday excursions that offer holiday trips all across Australia especially Canberra. According to, Pereira & Caetano (2015) the company regional Airlines thee management of the Airlines has the aim to transport people from smaller towns and cities to larger hubs like Sydney and Adelaide.
Building Blocks
The Business Model Canvas is one of the most daunting tasks for new business. A large number of aspects need to be considered when starting the business. There are generally 9 different building blocks that are to be considered before the start of any business. The management of the mentioned airlines has addressed the needs of the following blocks accordingly. They are discussed separately in the below mentioned boxes.
Customer Segments
Customer Segments is perhaps the most important consideration amongst all the other 8 aspects because the management of the business have to consider the target range of customers or the people for whom the business will deliver its services. The targeted customers are to be offered with the highest value for the different types of products and services that are to be offered by the company. In this particular regard the management of the company has to ensure that they mark out the fliers who will avail their services for travelling from small cities to large towns (Joyce & Paquin, 2016).
Key Partners
Partnership is one of the key segments of survival within the industry (Dudin et al. 2015). It is essential to enter into strategic business partnerships with other companies to survive in the highly competitive market. The Company has recently entered into a strategic deal with Alliance Air to start a nonstop New Castle to Adelaide service. The first scheduled flight took the skies on 26th March, 2018. The company announced it its website that for the time being the scheduled service will be thrice in a week whereas the company has plans to increase the length of the service in the coming years depending upon the popularity of the flight. The following partnership is a key one to the success of Pelican Air as they took the first step to acquire and operate large scale regional services. Apart from this the suppliers of the company, the logistical support provider also serve as the valuable partners of the company. Last but not the least; the company has recently signed a deal with New Castle Jets FC which will make them the flying partners of the football team.
Value Proposition
The Airlines Company aims to attract most of the business class people to its flight to help them travel in a much shorter and efficient way (Dudin et al. 2015). The management of the company has pledged itself to corporate vows and expects the best corporate behavior and appearance from all the employees. First and foremost there is a separate dress code for the employees and secondly the company has kept the price of the tickets reasonable for helping even the small businesspersons to avail the flight. However it also provides people travelling with them with attractive discounts and gifts to woo the customers and achieve a competitive edge in the market.
Key Activities
Pelican Airlines Private Limited has implemented the low operating cost feature to stay sustainable in the market. Apart from this the organization also projects it as the non business passengers and presents them as the best option for the leisure and casual travelers.
Channels
The proposed value of Pelican Airlines is delivered to the customers through different kind of channels that helps the company to prove their statement regarding value proposition correct. The Airlines Company generally uses Online content especially the websites to enable the people to buy tickets and also to post their queries regarding the Airlines or their service. The growth in the use of mobile devices has also been kept into consideration as because a Mobile based application of the regional Airlines has been launched to facilitate the use from these devices.
Revenue Streams
Revenue is no doubt the most important consideration of the business. The Airlines earns significant revenue from operating both chartered and regular commercial flights. The main source of revenue is however the “Canberra-Sydney Route” which accounts to 30% of its profits. The table below shows the revenue streams of Pelican Airlines,
According to different sources the stock costs of Pelican Air are 45% of their sale. Distribution and selling costs of the organization are about 30% of their sale. On the other hand, the administrative costs of the Company accounts to around 15% of their revenue. Fly Pelican generally has lots of expenses in its operations as like most other Airlines Fuel stands out to be the costliest item that has to be bought by the management of the company. The mentioned Airlines being a regional company is prone to suffer from such huge costs of fuel. Thus they restrict themselves in other possible ways to operate in a proper and efficient manner.
As suggested by the name resources are another important consideration or building blocks of the business and helps the business house to stand on a strong feet (Burns, 2016). The key resources of the organization include the fleet of the Aircrafts that it operates. The company owns a fleet of 5 British Aerospace Jetstream 32 with a capacity of 19 passengers each. Apart from this the Human Resources starting from that of the administration, the management, the suppliers and most importantly the buyers are the resources of Pelican Airlines Private Limited.
Customer Relationships
The Marketing team of the company along with the Human Resource team of the company is entrusted with the duty to reach out to the target customers as well as the potential customers. They reach out to the people by means of online interactions and through mobile applications. The customer relationships is maintained by offering quality services at low cost, providing low cost services to the airlines of the company, providing gifts, promotions and discounts. According to, Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena (2016) the following kinds of interactions and offers help the company to establish a great relationship with the people.
Interrelationships
As mentioned in the Value proposition the organization aims to satisfy the needs of the customers by means of providing proper, easy and efficient services through its online applications and mobile applications. In such a way the company is also able to maintain a proper and efficient relationship with the customers and the suppliers. This helps them to be successful in the business.
Critical Success Factors
There are a number of different critical success factors for the following business. Being a low cost regional Airlines and almost new to the commercial business, the management of the Airlines Company has formulated different types of simple success factors for the business. This includes;
- Low Cost-The Airlines generally operates short haul flights which helps them to maintain low fares. It also helps to increase demand as Australia has a large regional market still left to be utilized.
- Point to Point Model-The plan to connect secondary and regional airports has been one of the best decisions of the management. The point to point operations on a regular basis help to eliminate the necessity of frills services and allow the Airlines to operate flights smoothly (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016).
- Low Operating Costs- The low operating costs of the Airlines is one of the basic features of the organization as because the Airlines concentrates on regional traffic and thus it ensures the least use of the resources to increase revenue and earn profit.
The years in between the start of the first commercial operations of the business organization, a number of investors came and withdrew from the organizational structure. However the organization never had the risk of disinvestment on a large scale as the management was capable to find new investors in place of the other. Recently a large private group is interested in investing in the business and has been closely monitoring the financial condition and other operational conditions for a time being. The risks can also be down sided by means of careful assessment of the assets and the proper and efficient use of the available resources. The company can also plan to lease one or two aircrafts to other small entities which will surely be a huge profit for them.
Business Model Changes
High growth, business expansion, targeting expansion to other regional markets and most importantly acquiring new jets of 50 to 100 people is one of the most important changes that need to be done in the coming years. The company has also been looking into the different types of the opportunities in the regional Airlines market to make the company a much bigger entity. The business could also be expanded to attract new investors in the fold.
Conclusion
The following report has been formulated using all the different details regarding the mentioned organization. The information regarding the company has been gathered from the official website of the company. The marketing practices and the different types of strategies has been explained in detail.
Recommendations
- The company must concentrate on operating turboprop flights to New Zealand which is the closest International Destination.
- target the business customers to provide them a much better flight experience
- provide unique services to attract more customers
References
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.
FlyPelican. (2018). FlyPelican - Your local NSW Airline. [online] Available at: https://www.flypelican.com.au [Accessed 1 Aug. 2018].
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Pereira, B. A., & Caetano, M. (2015). A conceptual business model framework applied to air transport. Journal of Air Transport Management, 44, 70-76.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., & Güemes-Castorena, D. (2016). Methodology for the of building process integration of Business Model Canvas and Technological Roadmap. Technological Forecasting and Social Change, 110, 213-225.
Vargas, I. S., Calva, A. L. G., & Camacho, J. H. (2015). Business model canvas. Ciencias Huasteca Boletín Científico de la Escuela Superior de Huejutla, 3-5.
Wrigley, C., & Straker, K. (2016). Designing innovative business models with a framework that promotes experimentation. Strategy & Leadership, 44(1), 11-19.
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