Business Model Canvas – American Airlines Group

Business Model Canvas – American Airlines Group

Segments that Can be completed immediately

American Airlines Group can address the issue of cost structure immediately. By analysing the current business costs, it is possible to establish the most expensive resources and activities (50MINUTES, 2017). The most important costs to the business can easily be identified from the analysis results. The value proposition can be identified by assessing the current value and the company’s products and services offered to the market segments. The value will be tailored to meet the clients’ needs (Osterwalder, Pigneur, & Bernarda, 2015). The issues related to the problem being solved and client needs being fulfilled will be addressed immediately because the company already has a clear product and service portfolio. The customer segments can also be identified immediately because American Airlines has a varied client portfolio. The main task would be to identify the market segments from the low-cost structure (50MINUTES, 2017). The re-segmenting process will facilitate future marketing activities.

Segments Needing More Work

Channels may require more work because the airline must calibrate its channels and distribution networks to suit the new market segments. Consequently, testing the new channels will be time-consuming as the carrier tries to identify the most effective ones. Their effectiveness will be assessed based on the costs incurred, the clients reached, and the revenue gained from these clients. Customer relationships will also take time because the marketing department will assess the different relationships with each segment (Osterwalder, Pigneur, & Bernarda, 2015). It will also seek to establish new relationships with the new segments.

Factors or Segments That Were Not Considered

Key resources, activities, partnerships, and revenue streams were not considered initially. The resources are connected to their facilitation of distribution channels, customer relationships, streams of revenue, and value propositions (50MINUTES, 2017). The company’s activities to sustain the business model are important for success. Finally, the airline’s employees had not also considered exploring partnerships with other airlines, an aspect that could deliver more benefits.

References

50MINUTES. (2017). The Business Model Canvas: Let your business thrive with this simple model Management & Marketing. 50Minutes.com.

Osterwalder, A., Pigneur, Y., & Bernarda, G. (2015). Value Proposition Design: How to Create Products and Services Customers Want The Strategyzer Series. John Wiley & Sons.

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Think about the information you will need to create your business model using the nine segments of the business model canvas (BMC). Also keep in mind that for your elevator pitch in Milestone One, you will need to include at least a few of these segments.

Then, in your initial discussion post, address the following:

Which of the segments do you think you can complete immediately?
Which segments do you think might need more work?
Are there any factors or segments you have not considered so far? Which ones? Explain.