Business Model Canvas Of Bluesmart Organization

The business model canvas of Bluesmart includes nine blocks which are described below;

For offering its products and services, Bluesmart Organization has targeted different market segments. The organization is targeting the people who travel for longer distance. The smart bags of the organization provide safety travel experience to people as it includes smart locks and tracking system. In addition to this, the organization has manufactured its products considering tech savvy people and smart phone users.

Bluesmart has introduced smart technology travel bags by considering the needs and wants of customers. This business is creating value for the customers as a first smart traveller bag producer. To attract the long-distance travellers, it has used smart technology and Internet of Things. It is offering variety of products with smart features like smart lock, charger, tracking system, smart weight system, trip planning and digital alerts (Amit, & Zott, 2012).

The organization has established various distribution channels through which it is offering its products to customers. The major distribution channels of this firm are Mobile application, web partners and online website of Bluesmart. The major retail partners of the company are Selfridges, Sake 5^th Avenue, Moma Design Store etc.

Business Model Canvas

The organization has maintained better relationships with its customers. It is manufacturing the bags by identifying the needs of customers. It is implementing effective advertising and promotion strategies. It is using after-sales services and taking customers’ feedback on its products (Hatten, 2015).

This company is offering innovative products so it is able to generate significant revenues from the sale of smart bags. It is raising revenues from product crowd-funding from websites like Indiegogo. It is providing effective customer satisfaction that assists it in generating more revenues and profits (Kohler, 2015).

Key activities of Bluesmart Organization are manufacturing the smart luggage bags by using effective technology innovation (Amit, & Zott, 2012). It has focused on delivery the traveler bags on time and it is fulfilling the order on time.

 The key resources at Bluesmart are such as physical resources, finances, human resources, and IT infrastructure and software developer. The organization is managing its human resources by conducting training program so that they can learn new and innovative things.

Key partners of this organization are technical partners, retail partners, logistics partners and suppliers. These are the partners which are assisting the organization in completing Bluesmart’s business operations (Yang, 2014).

Cost structure includes different costs like technology costs, administrative costs, salaries to people and costs of website maintenance. It has managed its cost structure with the transparency and effectively.

There is an effective relationship between nine building blocks of business model canvas of Bluesmart. By the above analysis, it can be stated that all the blocks are related to each other as Bluesmart needs all the business components for reaching to the top position in smart luggage industry. To start its key activities, Bluesmart needs to target a specific customer segment considering its key resources. Value proposition of the company can assist it in developing relations with the customers. The organization that develops business model canvas needs to establish coordination among each and every component (Gil, 2018). The organization is able to generate significant revenues by managing its key activities and resources. Bluesmart is working on the interrelated functions like reliability and responsiveness. So, it is very important for managing the relationships between all the blocks of business model canvas.

At Bluesmart Organization, one of the major success factors is innovation that is implemented by the organization in its Smart luggage bags. The organization is manufacturing its products by adopting technology innovation. Technology innovation is the type of innovation that includes updated technology in production process. Bluesmart produces Internet of Things travel products and bags that is the major attraction towards its products (Dijkman, et al, 2015). There is an application of Bluesmart that controls the suitcase and bags. The major technology of smart cases includes the smart lock that enables the users to unlock and lock the bags using phone application. In this sensors can lock the bags automatically when it is detached from users. In addition to this, the promotional strategy of the company is very effective (Garun, 2016). Another success factor of the company is that it is able to fulfill the needs and wants of targeted customers. It has provided committed products to its customers. The company is crowd-funding through websites for selling its products. It has proven key success factor of Bluesmart Organization. Thus, these are the factors which the company has to get right to attain sustainable success.

Customer Segments

Downside risk is a forecast of security to suffer a decline in the value of products if there will be changed in the market conditions. At Bluesmart, one of the major contributions to downside risk is its pricing strategy. The company is manufacturing its products by the use of updated technology that increases its cost of production. So, company charges higher prices to the customers for its smart luggage bags. In the country, there are various people who are still not aware about the smart technology that is used in smart traveller’s bags. They are not using smart bags that can affect the business of Bluesmart Organization (Ang, Chen & Xing, 2006). Moreover, the organization may face the risk due to technology issues. There may be possibility of defects in the smart technology system such as smart locks, charger and tracking system. The organization should prepare a pre-plan and strategies to overcome the future downside risks.

In the case of Bluesmart Organization, some changes can be introduced to improve its business operations and activities. First, the organization needs to innovate its website and make it more attractive. It can make it more customer-friendly so that they cannot face any issue while surfing it. The technology innovation in the products should be at the fullest (Andersson, et al, 2016). It should not cause any technical issue to the customers. The business will provide effective technical training to product and software developer. Under business model, Bluesmart can expand and diversify its key activities. In addition to this, I would like to make changes in its pricing strategies. The current prices of the company’s products are very high so it needs to lower its prices. However, the business model of Bluesprint Organization is effective and consistent but it needs to update the business model and products time to time. Looking at the market trends, it can be seen that people are very much active on social media networking sites so this organization can advertise its products on social media sites such as Facebook, Instagram and Twitter (Johnson, Christensen & Kagermann, 2008).

Conclusion

Thus, the above report concludes that Bluesmart is one of the most innovative organizations that have started its business operations within last five years. The organization has introduced its products with smart technology. The report includes the business model canvas for Bluesmart Organization. It shows that organization has managed all of its components effectively. For a company, it is very important to update its business model so that it can update the products according to changing needs and trends of targeted customers.

References

Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3).

Andersson, U., Dasí, À., Mudambi, R., & Pedersen, T. (2016). Technology, innovation and knowledge: The importance of ideas and international connectivity. Journal of World Business, 51(1).

Ang, A., Chen, J., & Xing, Y. (2006). Downside risk. The review of financial studies, 19(4).

Bluesmart. (2018). Bluesmart | Home, retrieved from https://www.bluesmart.com/about.

Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the Internet of Things. International Journal of Information Management, 35(6).

Garun, N. (2016). This smart bag can charge phones, weigh itself… and nearly got me kicked off a flight, retrieved from https://thenextweb.com/gadgets/2016/01/30/welp/.

Gil, D.S. (2018). How Diego Saez Gil built a smart luggage company into a multi-million dollar company, retrieved from https://mixergy.com/interviews/bluesmart-with-diego-saez-gil/.

Hatten, T. S. (2015). Small business management: Entrepreneurship and beyond. Canada: Nelson Education.

Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard business review, 86(12).

Kohler, T. (2015). Crowdsourcing-based business models: how to create and capture value. California Management Review, 57(4).

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want. US: John Wiley & Sons.

Yang, S. H. (2014). Internet of things. In Wireless Sensor Networks (pp. 247-261). London: Springer