TO2GETHER_CASESTUDY ROUND 3

The Business Model canvas is a tool for visual representation of the business model,
highlighting all the important strategic elements. In other words, this is a general,
comprehensive overview that fully demonstrates operations, customers, and revenue
streams in the most intuitive way.

The canvas business model definition first appeared in 2008, created by Alexander
Osterwalder - a Swiss businessman and consultant. Today, the Business model canvas
model has been used around the world because of certain benefits it brings to
businesses.

9 elements in the Canvas business model

The 9 elements in the Canvas business model give you an overview of your business
ideas and goals. The questions we provide below will help you brainstorm and
compare ideas for your next strategy or variations on old projects:

2.1. Key partner

This is an element that describes partners, organizations or suppliers that help

businesses maintain and develop their business activities. Major partners include
strategic partners between non-competing companies, partners between competing
companies,...

Please answer 2 questions:

● Who are the main partners/distributors of your business?

● What were the drivers for this partnership?

2.2. Key activities

The key activities that the business must perform to deliver its value proposition and
operate successfully. This building block helps you to define your most
mission-critical actions and prioritize them accordingly.This element describes the
activities a company must undertake to maintain growth, production and service to its
customer base.

● What main tasks will create profitable value for the company?
● What activities are key in distribution channels, revenue streams, and buyer
connections?

2.3. Key resources

The key resources the business requires to operate, including human resources,
physical assets, and intellectual property. This can also include relationships,
distribution channels, and virtual assets. Key resources are important strategic
resources of the company. To create the above value, you must have key resources to
maintain your business. These can be intellectual resources, physical resources,
human resources and financial resources.

● What key resources does your company have that bring value?
● Which resources are most important in supply channels, revenue streams, and
the connection between shoppers and the business?

2.4. Value propositions

The unique value the business provides to its customers and how it differentiates itself
from competitors. In other words, it’s what sets your business apart, what makes it
special, and what value it brings. The value a business provides should be based on
customer needs and problems. This means businesses need to sell products that
customers want.

● What is the most core result you provide to your customers?

● What customer needs are you meeting?

2.5. Customer relationships

The business' relationships with its customers and how it interacts with them. This is a
fundamental building block as not only does it help you build and maintain a
relationship, it also enables you to map out the cost and deliverables needed to
continue to improve that relationship. Businesses need to determine the relationships
they want to build with customers. At the same time, companies need to build and
maintain this relationship with their customers.

● What relationships are your key customer groups waiting for you to establish?
● How to integrate this into your business?

Buyer connections are often different, specifically as follows:

● Self-service: This relationship is created in the form of indirect interaction

between the business and the customer. Businesses provide customers with
effective and simple indirect self-service tools.
● Personal help and support: Provide support in the form of interactions between
staff and buyers. Such assistance and support will be provided during or after
the sales process.
● Professional Personal Support: The most dedicated and dedicated personal
assistance and support from an assigned sales representative, to address all the
needs and queries of our valued group of shoppers attention.
● Automated service: A system similar to self-service but more personalized as it
provides the ability to identify customers and their preferences. For example,
Amazon.com recommends books based on previous book purchases.
● Community: Create a community that allows personal interaction between
different buyers and companies.
● Co-creation: Personal connection through direct customer input with the end
result being a commercial product/service.

2.6. Channels

This is how products and services are brought to customers and become known to
more customers. Common communication channels that companies can use are
indirect sales channels (agents, partner stores,...), direct sales channels (direct sales
team, online stores, etc.). direct sales point,...)

● Which channels do your customers want to reach?

● Which channels perform best? How do they fit into business and buyer habits?

2.7. Customer segmentation

The different groups of customers the business targets with its products or services.
This building block looks at your most important customers. This is one of the factors
that helps companies identify potential customers.

● Which customer segments do you want to create value for?

● Who are the main buyers of your business?

Different types of leads, including:

● Mass market: No clear segment yet.

● Niche market: Potential customers identified based on specific customer needs
and characteristics.
● Diversification: Companies serve multiple customer segments with different
needs and characteristics.
● Mixed markets: Potential for interdependence. For example, credit card
companies provide services to cardholders and help cardholders get their credit
cards approved.

2.8. Cost structure

The various costs that the business incurs to operate, including fixed costs, variable
costs, and other expenses. It also helps you identify your most expensive assets and
activities to make effective financial plans for the future. This factor describes a
company's costs to maintain and grow its business.

● What costs the most in your sales?

 ● Which key resources/activities consume the most?

Analysis of spending structure includes:

● Focus on costs: Focus on reducing unnecessary costs. An example of a

low-cost airline.
● Value orientation: Focus less on costs and more on creating value for products
and services.

2.9. Revenue stream

The different sources of revenue that the business generates from its customers,
including one-time sales, recurring revenue, and other revenue streams. This building
block also helps determine how each stream contributes to the business profit. This
factor describes the source of profit a company receives from its customers.

● What business value are customers willing to pay?

● What to do to get customers to accept payment?
● How much does each revenue stream contribute to total revenue?

Những sai lầm khi thực hiện mô hình KD

Business model canvas is a great tool for businesses to understand your businesses’
value proposition, identify your customers, and analyze your strengths and
weaknesses. However, many people use it ineffectively; sometimes creating a business
model canvas that can actually cause more harm than good.
1. Failing to research the target market

The first step in creating a successful business model canvas is to know who your
potential customers are, their needs and how your product or service meets those
needs. Without this knowledge, it is difficult to create an effective marketing strategy.
New entrepreneurs should take the time to thoroughly research their target market.
This means identifying their needs and wants, understanding their buying behavior
and knowing where to find them. Only then can entrepreneurs develop an effective
marketing plan that will help them reach their potential customers.

2. Misunderstanding the Purpose of the Plan

The main mistake entrepreneurs make when writing a business plan is not
understanding who they are writing it for. Not all entrepreneurs use their business
plans to raise venture capital. If that’s you, you don’t need a comprehensive plan, but
you do need a thorough market analysis and financial picture.
A business plan is a flowing document, not a fixed document. Business plans can be
one page or even written on a napkin. If you are a business or a company not seeking
financing, it should:
State the basic idea or concept; thoroughly investigate the competition and viability of
the product or service; detailed a one-year marketing plan and a one-year budget and
financial plan. You need to know your idea, the market and the money in as few pages
as possible. If it’s too long, don’t read or follow it.

3. Forgetting to update it

The BMC is not a static tool. It doesn’t exist in a vacuum, but it’s constantly changing
with the business.
What we see most often is that people use the BMC once and then leave it be for a
long time.
There are two reasons for this: either they find it too hard or they think that filling in
the BMC is a one-time-only kind of thing. Yet, the majority of teams seem to think
precisely that. After having used it once, they never look back at it and move on to the
next stage.
What we recommend instead is to go back to the Canvas repeatedly, every once in a
while, especially when you gather new insights or information likely to affect your
business.

Although it may sound boring (unless you’re a geek), fill it out over and over again,
adjusting your BMs or designing more solid ones all while mapping critical
assumptions that will later need to get tested out.

4. Misunderstanding Customer Relationships

The customer relationships box is about how your company interacts with its
customers.
The most important element of this is how you design these interactions.
This is the least understood part of the canvas, because it’s so broad. It’s also arguably
the most important part, since it has such a big impact on your success.
Think of it like this: you’ve identified a customer segment, and the value proposition
they’re seeking. Now the question is, how will this interaction unfold?
Gradually, or within seconds? Online or face-to-face? Are we expecting repeat
business? Will they describe us as friendly or formal? This is what the customer
relationships box is for; to design and identify how these interactions are best
structured for each type of customer. There is no perfect answer; it’s about choosing
an approach that matches what you’re selling.

5. Not putting in numbers

One dangerous mistake is to skip the numbers, opting for broad-brush statements,
according to Isaac Jeffries.
The only person you cheat here is yourself.
Let’s say your customer segment is “Socially conscious inner city professionals who
own two cats and pay top dollar for ethical products”.
How many of these people exist?
Write down the number.
Since it is a finite market, we can’t assume that this group can magically double
overnight just because we want them to.
Or perhaps your customer base is wider, how many units can your team sell in a year?

This is even more important when we hit the financials.

How much does it cost to acquire a customer?
How many times does a repeat customer come back in a year?
This can be a difficult process, but it can save heartbreak (and even bankruptcy) down
the road.

Challenges of Business Model Canvas

While business reliability ratings provide valuable information on a company's
sustainability performance, they are not without their challenges and limitations. Some
of the key challenges include:
1. Data Availability and Quality:
- Ratings agencies heavily rely on the data provided by companies themselves.
However, the availability and quality of this data can vary significantly. Some
companies may not disclose relevant information or may provide incomplete or
misleading data, making it challenging to assess their sustainability performance
accurately.
2. Industry-Specific factors:
- Ratings agencies need to consider industry-specific factors when assessing business
reliability. Different industries have unique environmental, social, and governance
challenges, making it difficult to apply a standardized framework across all sectors.
For example, energy-intensive industries may face different challenges in reducing
their carbon emissions compared to service-based industries.
3. Subjectivity in Rating Methodologies:
- Ratings agencies use proprietary methodologies to assess business reliability, which
can create subjectivity in the ratings. The weighting of different factors and the
interpretation of data can vary between agencies, leading to inconsistent ratings across
different platforms.
4. Lack of Global Standards:
- There is currently no globally accepted standard for business reliability ratings.
Different ratings agencies and organizations have developed their own frameworks
and metrics, leading to a lack of consistency and comparability. This makes it
challenging for stakeholders to effectively compare and evaluate companies'
sustainability performance.
Despite these challenges, business reliability ratings provide a valuable tool for
stakeholders to assess a company's sustainability performance and promote positive
change. By understanding the limitations and actively engaging with ratings agencies,
businesses can address these challenges and drive greater transparency and
accountability.
RISK
1. Limited resources: One of the main challenges faced by business accelerators is
the availability of limited resources, both in terms of funding and mentorship.
accelerators often have a fixed budget and a limited number of mentors, which can
make it difficult to cater to the needs of all the startups in the program. This can result
in a lack of personalized attention and support for some entrepreneurs, potentially
hindering their growth and success.

2. Selection bias: Business accelerators typically have a rigorous selection process to

choose the startups they work with. While this ensures that the program admits
high-potential companies, it also introduces a selection bias. Some startups with great
potential may be overlooked, while others that may not be as promising could make it
into the program. This bias can limit the diversity and variety of startups within an
accelerator, potentially affecting the overall success of the program.

3. Time constraints: Accelerators typically operate within a fixed time frame, often
ranging from a few months to a year. This limited time can create challenges for
startups, as they may have to rush through important milestones and decision-making
processes. It can also put pressure on entrepreneurs to achieve significant growth
within a short period, which may not align with the natural growth trajectory of their
business. Startups that require more time to develop their product or market may find
it difficult to meet the expectations set by the accelerator.

4. Lack of fit: Not all startups are suitable for business accelerator programs. Some
businesses may be at a stage where they require more foundational support or are not
yet ready to scale rapidly. Joining an accelerator without the appropriate readiness can
lead to wasted resources and missed opportunities for both the startup and the
accelerator. It is crucial for entrepreneurs to carefully evaluate their own needs and
readiness before applying to an accelerator.

5. Limited network access: While business accelerators often boast about their
extensive networks, the reality is that not all startups benefit equally from these
connections. Some entrepreneurs may struggle to tap into the network of mentors,
investors, and industry experts provided by the accelerator, due to various factors such
as their industry focus or geographical location. This limitation can hinder startups'
ability to secure follow-on funding, partnerships, or customer acquisition
opportunities.

6. Sustainability and long-term support: Once the accelerator program ends,

startups may face challenges in sustaining and building upon the initial momentum
gained. The transition from the accelerator to the broader business ecosystem can be
daunting, as startups lose the structured support and resources provided by the
program. It is essential for accelerators to consider how they can provide ongoing
support and guidance to their alumni, beyond the duration of the program, to ensure
their long-term success.

7. Overemphasis on speed: Business accelerators are designed to fast-track startup

growth, often prioritizing speed and scale. While this can be advantageous for some
businesses, it may not be suitable for all. Startups that prioritize sustainability,
profitability, or product refinement over rapid growth may find it challenging to align
with the accelerator's expectations and pressures. It is crucial for entrepreneurs to
evaluate whether an accelerator's focus on speed aligns with their own business goals
and values.

In conclusion, while business accelerators offer valuable resources and support, they
also come with their own set of challenges and limitations. Entrepreneurs considering
joining an accelerator should carefully evaluate these factors and ensure that the
program aligns with their specific needs and goals. Overcoming these challenges can
pave the way for accelerated success and growth in the dynamic world of startups.

2. Business Model Canvas của TO2GETHER

 Business Model Canvas

Partnership Key Value Customer Customer

- Viet Trust Activities Proposition Relationships Segments
Technology
Application - Research, - Inclusive - Self service - Families with autistic
and Co., Ltd improve and educational - Personal support children
(Công ty develop toys - Centers for caring for
TNHH và Ứng products autistic children under
dụng công 6 years old in Hanoi,
nghệ Niềm tin - Marketing Vietnam
Việt) activities
(Tiktok,
Website)

Key Channels
Resources
- Channels
- Raw affiliated with
materials: businesses
Leftover (Tiktok/Tiktok
wood Shop, Website)
- Finance: - Channel partners:
Personal bookstores, toy
capital, loans stores
 - Human
resources and
labor
- Equipment
of production

Cost Structure Revenue Stream

- Fixed costs: labor, factory (rental) Sell ​products
- Variable costs: raw materials,
advertising...

Mistakes and challenges when implementing the business model:

1. Not focusing on the user (customer):The most important aspect of building a
BMC is understanding the target users and the problems they face. If the
customer is not placed at the center of BMC development, it can lead to
developing a product that does not fit market needs.

2. Lack of competitive analysis:Sometimes BMC creators focus too much on

their own product and overlook researching competitors. Lack of market
information and understanding of competitors can diminish your competitive
edge or make the BMC unrealistic.

3. Lack of clear marketing strategy: A good BMC should include a clear

marketing strategy to introduce your product to the target customers. Without a
marketing strategy or insufficient consideration of appropriate marketing
channels, you may struggle to reach and attract customers.

4. Lack of flexibility and adaptability: BMC is not a static document; it needs

to change and adjust over time based on market feedback. If you're not flexible
in adjusting BMC when needed, you might miss opportunities or face
challenges in addressing emerging issues.

5.Ignoring external factors:Sometimes BMC focuses only on internal business

aspects and neglects external factors such as policy changes, market trends, or
socio-economic factors that can impact business operations.

6. Lack of testing and evaluation: BMC is not just a diagram; it needs

real-world testing to evaluate feasibility and effectiveness. Without testing
BMC before implementation, you may overlook potential issues or miss
opportunities to optimize parts of the model.