Case Study: Developing the Geometry Game Using the Business Model Canvas

What is the Business Model Canvas?

The Business Model Canvas (BMC) is a strategic management tool that provides a visual framework for developing, describing, and analyzing business models. It consists of nine building blocks that capture the essential components of how a business creates, delivers, and captures value.

The Nine Building Blocks:

1. Customer Segments: Who are your customers?
2. Value Propositions: What value do you deliver to your customers?
3. Channels: How do you deliver your value proposition to customers?
4. Customer Relationships: What type of relationship do you establish with your customers?
5. Key Activities: What key activities must your business perform?
6. Key Resources: What resources do you need to deliver your value proposition?
7. Key Partnerships: Who are your key partners and suppliers?
8. Cost Structure: What are the major costs associated with your business model?
9. Revenue Streams: How does your business earn revenue?

Why Use the Business Model Canvas?

1. Clarity and Focus: The BMC simplifies complex business concepts, making it easier to focus on essential elements.
2. Visual Representation: It provides a clear, visual layout of the business model, facilitating understanding and discussions among stakeholders.
3. Collaboration: The BMC encourages teamwork and collaboration, allowing different perspectives to contribute to the business model.
4. Flexibility: It is easy to modify and adapt, enabling businesses to pivot and adjust strategies as needed.
5. Holistic View: The BMC offers a comprehensive overview, helping to identify strengths, weaknesses, and opportunities.

How to Use the Business Model Canvas for Business Development

Step 1: Prepare Your Team

Gather a diverse group of stakeholders, including team members from different departments such as marketing, sales, product development, and finance. This diversity will enrich the discussion and lead to a well-rounded business model.

Step 2: Define Customer Segments

• Identify and categorize the different groups of people or organizations your business aims to serve.
• Consider factors like demographics, behavior, and needs.

Step 3: Articulate Value Propositions

• Determine what unique value your product or service provides to each customer segment.
• Focus on solving customer problems or fulfilling their needs.

Step 4: Identify Channels

• Outline how you will deliver your value proposition to customers.
• Consider various channels such as online platforms, physical stores, or direct sales.

Step 5: Establish Customer Relationships

• Define the type of relationship you will build with each customer segment.
• Decide whether it will be personalized service, self-service, automated, etc.

Step 6: Identify Key Activities

• List the most important activities your business must perform to deliver its value proposition.
• This may include production, marketing, sales, and customer support.

Step 7: Identify Key Resources

• Determine the vital resources needed to deliver your value proposition effectively.
• Resources can be physical, intellectual, human, or financial.

Step 8: Establish Key Partnerships

• Identify external organizations or entities that will help you achieve your business objectives.
• Partnerships may include suppliers, distributors, or strategic alliances.

Step 9: Analyze Cost Structure

• Outline the major costs involved in operating your business model.
• Differentiate between fixed and variable costs and consider the impact on profitability.

Step 10: Identify Revenue Streams

• Determine how your business will generate income.
• Explore various revenue streams such as direct sales, subscriptions, licensing, or advertising.

BMC Case Study

Company Name: GeoPlay
Industry: Educational Technology
Founded: 2023
Location: New York, NY

GeoPlay is an educational startup focused on creating engaging digital games that help students learn geometry concepts. The team aims to provide teachers and students with innovative tools to enhance learning outcomes in mathematics.

Problem Statement

GeoPlay needed a structured approach to develop its business model for the Geometry Game. The founders aimed to clearly define their target market, value propositions, and operational strategies to ensure the game’s success in schools.

Step-by-Step Guide to the Business Model Canvas Process

Step 1: Define Customer Segments

Objective: Identify the primary users and beneficiaries of the Geometry Game.

• Mathematics Teachers at Private Schools: Targeting educators who need supplemental teaching tools.
• Students: Engaging middle school students who struggle with geometry concepts.
• Parents: Involving parents who seek educational resources for their children.
• PTAs (Parent-Teacher Associations): Collaborating with PTAs to facilitate game adoption in schools.

Step 2: Articulate Value Propositions

Objective: Define what unique value the Geometry Game offers to each customer segment.

• For Teachers: A curriculum-aligned game that enhances student engagement and understanding of geometry.
• For Students: Fun, interactive gameplay that makes learning geometry enjoyable.
• For Parents: A tool to support their child’s learning and provide additional practice.
• For PTAs: A chance to invest in educational tools that improve academic performance.

Step 3: Identify Customer Relationships

Objective: Determine how GeoPlay will interact with each customer segment.

• Personalized Support: Offering training sessions for teachers on how to integrate the game into their classrooms.
• Community Engagement: Creating forums for teachers and parents to share experiences and strategies.
• Feedback Mechanism: Establishing channels for users to provide feedback for continuous improvement.

Step 4: Establish Key Activities

Objective: Outline the crucial activities needed to deliver the value propositions.

• Game Development: Designing and programming the Geometry Game.
• Curriculum Alignment: Collaborating with educators to ensure the game meets educational standards.
• Marketing Campaigns: Promoting the game through online channels, educational conferences, and school demos.

Step 5: Identify Key Resources

Objective: Determine the essential resources required to operate the business.

• Development Team: App developers and game designers skilled in creating educational software.
• Educational Experts: Mathematics educators who can provide insights on curriculum alignment.
• Marketing Team: Professionals to manage outreach and communication strategies.

Step 6: Establish Key Partnerships

Objective: Identify strategic partnerships that can enhance the business model.

• School Districts: Collaborating with local school districts to facilitate game adoption.
• Educational Organizations: Partnering with organizations focused on math education for joint promotions.
• Technology Providers: Working with tech companies for app distribution and support.

Step 7: Analyze Cost Structure

Objective: Outline the primary costs associated with the business.

• Development Costs: Estimated initial investment of $200,000 for game development.
• Marketing Expenses: Budget for promotional activities, estimated at $50,000 annually.
• Operational Costs: Ongoing costs for maintenance and support, approximately $50,000 annually.

Step 8: Identify Revenue Streams

Objective: Determine how GeoPlay will generate income.

• Direct Sales: Selling the game to schools and educational institutions.
• Subscription Model: Offering annual subscriptions for schools that provide ongoing access to the game.
• In-App Purchases: Introducing additional content or upgrades within the game.
• Grants and Sponsorships: Seeking funding from educational grants and sponsorship from educational organizations.

Results

By following the Business Model Canvas process, GeoPlay developed a comprehensive strategy for the Geometry Game. This structured approach provided clarity and alignment among the team, helping them focus on key areas for success.

Key Outcomes:

• Clear Value Proposition: The team refined the game’s unique offerings, ensuring it meets the needs of teachers and students effectively.
• Strategic Partnerships: GeoPlay established initial partnerships with two local school districts, increasing credibility and reach.
• Successful Marketing Campaign: The team launched a targeted marketing campaign, resulting in pre-orders from several schools before the official launch.

Conclusion

The Business Model Canvas is an effective tool for business development, providing a structured approach to understanding and developing business models. By following the steps outlined, organizations can create a comprehensive, flexible, and collaborative framework that drives strategic decision-making and fosters innovation. This process not only clarifies the business model but also aligns the team toward common goals, ultimately enhancing the chances of success.

The Business Model Canvas proved invaluable for GeoPlay in developing a focused and actionable business model for the Geometry Game. By systematically analyzing each component, the startup positioned itself for successful market entry and growth in the educational technology sector. This case study highlights the effectiveness of the BMC process in aligning team efforts and driving strategic decisions forward.