Business Model Canvas

Explanation Business Model Canvas

The Business Model Canvas contains 9 building blocks, as presented in the table above. The table is used for a company to reflect on itself, put its activities in a nutshell while describing and innovating the business, plan the transition. The following part will describe 9 building blocks separately and more in-depth.

Customer segments

First of all, we will start with the right (value) side of the table- customer segments. Before the expansion process, one of the most important aspects is to define the target group. Since CleanCall is a for-profit company focusing on fair-trade and recyclable electronics, the target audience is a middle or higher-income working-age group (15-65) who care about the environment and sustainability.

CleanCall is both- B2B and B2C company, therefore, the second target group is businesses who are interested in sustainability and want to improve their environmental performance as well as keep a high reputation.

Customer relationships

After determining the target segment, it is crucial to decide through which channels the company can communicate with its customers to contain long-lasting relationships. As being an electronics industry, the company provides access to 24/7 customer service via email, chats, or telephone, guarantees and repair services. Despite the main website, the company also has and maintains social media platforms through which it updates the customers about the new upgrades or other relevant information.

In order to maintain long-lasting relationships, the company provides special discounts based on each customer's or business' profile.

Channels

Cleancall company has three main channels through which the company communicates with its customers: web-shop, third-party electronics stores, and social media platforms. As mentioned before, social media platforms play a crucial role in customer relationship maintenance and retention. For that channel, CleanCall company chose to use Instagram, Facebook, Twitter, and Linkedin since they are the most popular social platforms nowadays.

Another very important channel to discuss is third-party electronics stores. Since the company will not have a physical store in the UK, many third-party retailers will be used in order to import the product into the UK market.

Lastly, the web-shop will still remain the main channel where people can browse and buy undisturbedly.

All of the above-mentioned channels will help the company spread brand awareness and gain recognition..

Value proposition

The value proposition segment focuses on customers‘ profiles, helps to recognize pains, customer jobs, and to finds a solution to create relievers, gains (B2B International, 2020). Since the company was founded as an awareness campaign about conflict minerals and evolved into the conflict-free electronics industry, its value proposition focuses on 5 aspects: fair trade and conflict-free devices, recyclable phones, fair prices, variety of products and modular upgrade facility.

The aim of the company is to establish a market for fairer electronics, and create a positive impact and build new relationships between people and their products by making recycled devices.

Key activities

Online store development: Having a good online store and gradually improving it is key for worldwide recognition and customer attraction/retention.

Merchandising goods: This is the main activity that generates income as the sales of mobile phones is the core of our business.

Collecting feedback: Feedback is important to look into, to reflect on what to improve from the eyes of our customers. Feedback can be collected through the website, comments can be left post-purchase or later, after receiving the product.

Manage logistics: Calculating and assigning the correct amount of goods is crucial to keep the business running smoothly, so working on logistical management is a no-brainer.

Secure and build partnerships: Good relationships with partners can result in smoother and quicker business and better deals in the future, as the partnership extends for several years and both parties benefit from the partnership.

Manage marketing and communications: Having a good image in the eyes of the customer is crucial when a company wants to be known and likable. So, taking care of marketing and communication with the press, customers, and partners is key.

Sourcing: The company Cleancall focuses on sourcing materials from non-conflict countries, and in a fair-trade way.

Repair and upgrading: To retain our customers and keep the word as a company that is against disposing of your electronics every two years, we must provide a proper repair and upgrade service that would allow customers to use our phones and services for longer.

Key partners

For parts-

Hi-P: final assembly, manufacturer
Murata: semi-conductors
Sunnyoptical: cameras
Largan: lenses
Ats: circuit board
Synaptics: integrated circuits
Highpowertech: battery
Yuto: packaging
broadway-int: producer for a phone cover

Third-party sellers: These businesses will be the key for our sales channels in the UK, as making your device available and easily findable at many stores can increase the volume of phones sold.

Webshop hosting provider: Choosing a good provider and maintaining your web-shop well can result in increased sales too, as the customers who are more pleased by the effectiveness of our website are more willing to buy.

Key resources

The main resources needed for our business to operate smoothly are both physical assets and human resources. In addition to that, fluent work from our key partners is needed so that they could guarantee that the parts reach us since our company does not manufacture different parts of the mobile phones. More than anything we value our long lasting partnerships which as of for now worked well because of the same vision we share with our partners. Only by working together we are where we want to be today.

Cost structures

Since we buy finished products from our partners the costs of it would be warehousing and distribution, as well as paying additional taxes. All the shipping costs are paid beforehand. Part of our money goes to wages of our employees and our online store maintenance. We have to keep it up to date and look after errors, because if our website goes down for an hour or two customers who wanted to buy our products might look at our competitors. Since we are building long lasting relationships with our customers we value our customer service centers which are part of our cost-structure as well. As of for moving in to a new market (The United Kingdom) a big margin our revenue goes towards marketing costs. While adjusting in a new market getting your name out to public is a must. We look at marketing costs as an investment because by having a great campaign we can expect to get our money back from new customers that we attract.

Revenue streams

CleanCall is an electronics industry, therefore, the main income comes from recycled device sales. As the company is based on e-commerce, it focuses on building a user-friendly website so the browsing and buying process would be easy, and the main revenue stream would come from purchases made online. The second revenue stream is third-party electronics stores that are based in the UK. The revenue of this channel will come from the income received from the commissions, however, some of it will be spent on commissions paid to the third-party partners.

The last revenue stream is received from continuous upgrades and repairs- it can lead to extra sales and exposure as the website might appear when searching online for "smartphones repair".