BUSINESS SIMULATION

MBA FT (2021-23)

Individual Assignment - 1

Submitted To:
Prof. Punit Saurabh
Prof. Ansita Aggarwal

Submitted By:
Tanvi Talesara
Roll No. - 211151

Date of Submission:
19th July 2022

1
The Tech company here is Brown Mobile.

Mission
Provide cost-effective, high-quality mobile to people.
Vision
To make difference in people’s lives and be a leading performer in the industry.

BUILDING BLOCKS

The nine building blocks are:

1. Customer Segment
There are different customer segments like:
Mass Market, Niche Market, Segmented, Diversified, and Multi-sided Platform
Here, in this case, the Brown Mobile company uses a Diversified Customer Segment,
as every age group person

2. Value Propositions
A company's overall marketing plan includes a value proposition. The value
proposition offers a declaration of purpose or a statement that establishes a company's
brand by explaining to customers what the company stands for, how it functions, and
why it merits their patronage.
In Brown Mobile Company, Brand/Status, Performance of the model, Design, Price
has a very important role as while buying any technology its newness is seen as
technology becomes obsolete with time and requires timely up-gradation and which
buying technology people look for a specific brand image or status.

3. Channel
It is very important to select the right channel to deliver the value proposition to the
customer segment. Channel type can be a direct or indirect channel and in the case of
the Brown Mobile Company, indirect channels are used. The company provides its
product to different distributers who look after the purchase, delivery, and after-sales
services.

2
4. Customer Relationship
The business model canvas' fourth block is titled "Customer Relationships." Making
decisions that maximize capabilities for attracting, keeping, and expanding a client
base can be accomplished by carefully considering the Customer Relationships
section of the business model. It strikes a balance with the fact that obtaining new
clients is far more expensive than keeping existing ones. It also encourages reasonable
growth aspirations.
The effort in customer relationships is also never finished. The secret is to create and
test customer relationship-related hypotheses, then modify or change course as
necessary. In Brown Mobile Company, automated services are used, and also some
places dedicated personal assistance is there based on the requirement of customers.

5. Revenue Stream
Any firm depends on a source of income. It is the source of your income. Your startup
needs assets before it can start earning money. However, the same item can be used to
create income in a number of ways. It's critical to avoid being overly dependent on a
single source of income.
There are various revenue streams used by the tech company that not only focus on
one thing. The company provides a monthly subscription for the use of extra storage
and also an ad for their very own music app. Advertisement is also one of the
important revenue streams for a tech company.

6. Key Resources
Key resources are needed by every firm. These resources enable the business to
develop a value proposition for their enterprise, establish relationships with their
markets and customers, and generate income. Depending on the business model,
different essential resources are required.
Key resources can be physical, intellectual, human, and financial. Tech company here
uses intellectual as a key resource as it is very important for an IT company.

7. Key Activities
Several Key Activities are required by your business strategy. These are the most
crucial tasks that your business must complete in order to be successful. Key
3
 Activities also vary depending on the sort of company strategy, just like Key
Resources.
Business Model Generation suggests grouping all of your activities into three broad
categories:
• Production.
• Problem-solving.
• Platform.

Tech company i.e., Brown Mobile Company here uses other platforms/networks to
outsource the software or the mobile body so that the production takes place smoothly
and at a low cost, production is done.

8. Key Partnership
This component outlines the network of suppliers and partners that support your
business model. Recall that not all of your partners will be Key Partners. You can
divide the team into different partners.
Rather than owning all the resources companies extend their own capabilities and
extend their networks and outsource from other companies. A mobile phone
manufacturer may license operating systems and software rather than in-house
development as it is comparable convenient for the company.

9. Cost Structure
One of the foundational components of a business model is the cost structure. It
exemplifies how businesses invest the majority of their efforts in maintaining demand
for their goods and services. The cost structure and income sources aid in determining
an organization's operational scalability.
The cost structure is usually cost-driven. The cost activities involve research and
development, product design, production, and marketing, and these all are based on
cost-driven as they are dependent on the price of the product which is going to be
available in the market.

4
5