Business Model Canvas: Blue Buddies
Editable: https://canvanizer.com/canvas/wqatP05HhUfOW
Basics
An ideal business model comprises of 9 building blocks which describe the specific parts of the business (Wirtz, 2010).
Key Partners: These are the alliances created by a business to help in its operations (Wirtz, 2010). At Blue Buddies, they do not manufacture most accessories. Instead, they source them from the far east.
Customer Segments: The company serves different customer segments. Segmentation at Blue Buddies is by demographics, personality, and behavior.
Value Proposition: Involves giving the different segments a product that is useful to them (Lindic & Marques da Silva, 2011).
Channels: Include communication, distribution, and sales channels utilized by Blue Buddies to cater to their customers.
Customer Relationships: Involves how Blue Buddies relate with each customer segment.
Key Resources: These are the resources which are vital to the functioning of the business (Chesbrough, 2010). They include human, physical, intellectual, and financial resources.
Key Activities: These are the activities which are vital for business functioning (Amit & Zott, 2012). Blue Buddies produce gaming consoles. They distribute the consoles and games too.
Revenue Streams: Describes how the business makes money (Wirtz, 2010). Blue Buddies make money through one-time sales.
Cost Structure: Arises as a result of the elements of the business model.
Customer Segments
At Blue Buddies, customers are segmented according to personality, age, and shopping behavior.
In terms of personality, there are the parents who view getting their children consoles as a way of monitoring how they spend their time. They make up part of the market targeted by Blue buddies.
Shopping behavior is related to age (Parment, 2013). People aged 6-21 like sophisticated controllers and enjoy online gaming too. This age group is highly sensitive to price. Individuals aged between 25 and 35 are usually after great gaming experiences and many multimedia add-ons. They are not as price sensitive as the previous group. Individuals aged 36 and above are not price sensitive, and they are usually after high graphic and audio sophistication.
The company targets the parents of kids who love gaming and the adult gamers too.
References
Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), 41.
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range planning, 43(2), 354-363.
Lindic, J., & Marques da Silva, C. (2011). Value proposition as a catalyst for a customer focused innovation. Management Decision, 49(10), 1694-1708.
Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189-199.
Wirtz, B. W. (2010). Business model management. Gabler, Wiesbaden.
