Archives: Business Model Canvas

“Uber” Revolutionizing the Taxi Market?!

Source: https://utstatic.a.cdnify.io/wp-content/uploads/2014/04/uber11.png

Uber is a taxi brand that uses technology in order to get its customers just by clicking on the app on their phones. I think that Uber’s ability to integrate technology into their business is what makes it a very successful company because their operations are in the most cost efficient manner. Due to this they are able to avoid variability in demand as the demand for Uber is increasing tremendously due to its convenience and its cheap fares as compared to other taxi rates while also the supply of Uber taxis remain plenty.

This convenience is what resulted of Uber  targeting families instead of just individuals who needs cab rides. Uber’s customer segment has been the cause of its rising demand because in families, parents are always busy with work that they are unable to drive their kids around themselves. Therefore, by potentially tapping into the customer segment of families, they are able to appeal to teenagers – which will be the customers of the future and help multiply Uber’s growth. 

However, there is always the problem about parents’ worries about safety especially letting their children go on cabs alone. This is why Uber implemented its business solely around technology because it provides parents the ability to monitor their child by using GPS tracking so that they know where their child is at all times. This therefore helps foster the relationship between the customers, an aspect of customer relationships in the Business canvas model.

All in all, Uber is a business that will continue to flourish in the future due to its close knitted business model.

Source:

http://www.theglobeandmail.com/technology/digital-culture/busy-parents-call-uber-for-kids-and-ditch-the-carpool/article21397868/

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Target Segment vs Differentiation – which explains better?

According to Kristy’s post about HMV music stores VS online stores, I totally agree with her that due to technological advances that online stores is the easiest and most convenient ways to get music. However, I would like to add on the fact that music stores is not able to compete with online stores is also due to its small target segment

Although online stores are the most efficient way to get music without going out to buy albums, the customer segments which is being targeted here are those that do have access to the internet, specifically for teens till the early 30s.  However, for music stores such as HMV’s customer segment would be those who do not have access to the internet and still has passion or love in collecting CDs and albums for their own personal collection mainly those in their early 40s and 50s. Therefore, identifying a customer segment is one of the important aspects before it can be compared.

Noting the difference in customer segments, Online stores tend to be more popular because most people nowadays have access to the internet with the ability to get the music with just a simple click. However, Music stores tend to lack popularity because they are simply outdated due to the change in consumer trends and new technology. Although this may be true, online stores tends to be overpowering because the target segment tends to be larger in size and comprises a larger part of the population as compared to the target segment of music stores.

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