Nested Business Canvas Model: 9 Pillars Driving Operation Success
Task Description: To be completed individually, you are required to prepare a business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings.
Before commencing, you must seek your lecturer's approval to undertake an analysis of the business you have chosen. The type of organisation that should be identified for study is one that is relatively new, innovative in how they operate, and have most likely been established in the last five years.
To achieve a result that meets your study objectives, please ensure the business report addresses each of the assessment criteria detailed below and which is elaborated in the marking rubric.
The following paper has provided a detailed overview of the business model canvas followed by the London based start-up organisation Nested operating since 2016. It is an online platform that seeks to provide property selling and buying options to customers in a hassle-free and convenient manner. The operational process seeks to make effective use of customer value creation in developing high degree of loyalty which further strengthened its revenue earning capacity significantly.
The London based online real estate organisation Nested works as an agent in helping people find suitable options to move from one home to another as per their convenience and need. Established in the year 2016, the organisation has gone ahead with raising a total sales revenue of €135 million in the year 2018 (Loritz, 2019). The primary significance of the organisation lies in the fact that it tends to offer people with the immense benefits associated with being a chain-free seller. As a result, it is successfully experiencing a whooping demand with the customer base comprising of nearly 400 people (Nested, 2019a).
2.0 Company Background
The business operational activities of Nested comprises of a step by step process looking forward to help people to own new homes as per their convenience. In the very first stage, the home sales platform comes up with an accurate property valuation of customer’s homes through the process in-depth data analysis. The following stage comprises of the organisation to proceed forward and take control on each and every aspect relating to home’s sale. It comprises of taking photographs of the property, managing visits as well as negotiation with potential buyers (Loritz, 2019). The unique business prospect of this online agent organisation is that if they are not being able to sell the house of an individual within thirty days, then it itself goes ahead with offering an advance amount of 90-95% of the total property valuation. It is being done to ensure that the concerned individual is able to afford a new home. This business model of Nested has ensured that the organisation is in a position of selling nearly twice as many properties as possible in London in comparison to the traditional brick and mortar real estate organisations. This along with immense positive growth statistics experienced in the commercial real estate sector of the United Kingdom has been identified to be a critical aspect underlying the growth rate of Nested.
3.0 Business Model Canvas
Business model canvas is an important strategic management tool used by business organisations for the purpose of improving the operational focus as well as clarity significantly (Joyce & Paquin, 2016). It is of immense significance in ensuring that the strategies implemented by an organisation results in helping it accomplishing high performance standards. The business model canvas of Nested are as follows:
3.1 Building Blocks: The nine building blocks identified from the business model canvas proposed by Osterwalder and Pigneur from the perspective of Nested is as follows:
- Customer Segments: The customer segment of Nested comprises of people who are looking forward to selling their present home properties with the hope of finding a new and better one. It comprises of both male and females who own a home and looks forward to selling them for a new one.
- Key Partners: The business partners of Nested comprises of various real-estate construction companies presently operating in London. It also accounts for customers who registers themselves with the organisation to seek help for selling their home properties. Furthermore, it is also backed by a large number of successful entrepreneurs who are generally recognised as venture capitalists of the organisation (Robinson, 2018).
- Value Proposition: The organisation is found to strongly driven by its values, that comprises of exhibiting a strong focus on its customers and the team which supports it to accomplish its operational objectives. It tends to offer customers with an advance of 90-95% valuation of the property that they intend to sell if the sales process is not successfully completed within 30 days.
- Key Activities: The operational activities of Nested comprises of performing an in-depth analysis of the property to be sold. Furthermore, the organisation looks forward to arranging and managing visits of prospective buyers to the home property put for sale. It also accounts for about finding potential buyers for the sales process to take place along with negotiating with them in fixing the final sales price. Each of these activities are found to successfully comply with the rules and regulations associated with chain free buyer experience. As a result, it ensures that the customers are largely able to operate in accordance to their own terms and conditions in due course of the selling process.
- Channels: The entire operational activity of Nested is found to take place via online medium. The agents associated with the organisation are found to make effective use local data to offer the customers an accurate valuation of the home to be sold. Furthermore, it also makes effective use of other online real estate selling platforms like Zoopla as well as RightMove listing in relation to conducting the number of view that the property to be sold had (Nested, 2019b).
- Revenue Streams: The total revenue earning capacity of Nested is found to increase rapidly from its inception in 2016 with the amount accounting for about €135 million in 2018. The organisation is found to experience such rapid increase in its revenue streams from raising the property funding valuation to as high as possible. It has successfully raised a total sales revenue of £36 million in one of its property sale activity. As a result, the organisation was found to experience a whooping increase in its total revenue by at least £50 million within a period of two yea of is inception (O’Hear, 2017).
- Cost Structure: The cost structure of Nested is found to gradually progressing in a positive direction, with the sales revenue increasing day by day by a large amount.
- Key Resources: The key operational resources relating to operational activity of Nested comprises of online real estate business model, large number of venture capitalists who are recognised to be entrepreneurs, dedicated team of employees and their data analysis capability.
- Customer Relationships: Nested is found to enjoy a positive and cordial relationship with its customers which is found to exhibit immense value and satisfaction. The advance payment process followed by organisation to the customers has been identified as one of the most striking features associated with the business operational scope.
4.0 Interrelationship Existing Among Different Blocks
The primary success underlying the business operational scope of Nested lies in its widespread customer value creation process. The customers upon offering with an advance amount if their property is not being sold by the organisation within a period of 30 days has resulted in Nested to develop a significant impact in its customer relationship development process. Furthermore, the process seeks to gain the attention of a large number of investors who seems to be largely attracted to the business policy followed by Nested.
5.0 Critical Success Factors
The critical success factors identified from the business canvas model of Nested is the unique data driven approach that the organisation has adopted. In doing so, the organisation has largely been able to offer its customers with a chain free buying and selling process. As a result, the customers were largely able to impose their rules and regulations without being restricted to any standard ones. As a result, the organisation was largely able to gain the attraction of a large number of customers.
6.0 Factors Impacting Success of Business Model
The primary success factors underlying the business model of Nested has been identified to be effective use of online portal for the purpose of dealing with customers. Furthermore, the organisation is found to take the entire responsibility of dealing with buyers as well as negotiate with them in fixing the final sales price. As a result, the customers looking forward to selling their homes are not required to face any form of direct interaction with the buyers. Therefore, it can be largely said that the high degree of operational convenience and hassle-free activity is responsible for bringing in success to the London based start-up organisation.
7.0 Changes to be Implemented in Business Model
The suitable changes to be made to the business model of Nested comprises of increasing its business partners further, The inclusion of property dealers as well as builders is likely to further help the organisation in enhancing its business operational scope further and thereby offer people with smart and convenient selling options.
The business operational scope of Nested has been identified to be unique and the business model canvas developed in relation to it seems to be appropriate in accomplishing its operational objectives. The data driven approach followed by it along with customer value development process seems to the primary factors that has resulted in helping Nested experience immense sales revenue. Nested business model assignments are being prepared by our management assignment help experts from top universities which let us to provide you a reliable online assignment help service.
Appleton, N. (2017). London Start-up ‘Nested’ Is Disrupting the Real Estate Industry. Retrieved from https://collectivehub.com/2017/05/london-startup-nested-is-disrupting-the-real-estate-industry/
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Loritz, M. (2019). 10 UK startups to look out for in 2019. Retrieved from https://www.eu-startups.com/2019/01/10-uk-startups-to-look-out-for-in-2019/
Nested. (2019a). About Nested. Retrieved from https://nested.com/about
Nested. (2019b). How it works. Retrieved from https://nested.com/how-it-works
O’Hear, S. (2017). Nested raises another £36M to help you buy a new house before you sell your old one. Retrieved from https://techcrunch.com/2017/10/23/nested-36m/
Robinson, M. (2018). Announcing £120m in new funding. Retrieved from https://nested.com/blog/posts/announcing-120m-in-new-funding