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Critical Evaluation Of Shippit Business Model


Task: 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.


Executive Summary
The current examination assesses the plan of action of the association of Shippit with the nine parameters of Shippit Business Model. The examination has helped in deciding the key elements which influenced the procedure of business alongside the manner in which it very well may be improved. The current report has been broken down the particular key variables for better yield of business.?

According to Carter and Carter (2020), Shippit Business Model is considered to be a conceptual structure that supports the viability based on a business involving its purpose along with its goals and the ongoing plans as well to achieve them. A BM seems to be a specification that describes the way an organisation can fulfil its purpose. A good BM generally involves information related to the target customers; the strengths and challenges of the organisation; the market and similar other effective elements as well. Hence, the present study deals with the evaluation of BM deconstruction for the organisation of Shippit, Australia with the help of Shippit Business Model Canvas (BMC) suggested by Osterwalder & Pigneur.

Description of the business and the industry
Shippit, Australia is known to be a start up of logistics that offers the services for both the sides based on online transactions. The merchants are able to offer a much more flexibility along with the options to the customers; for deliveries along with having more and more information regarding the time and the way through which their packages can be arrived. The organisation was established in the year of 2014 in Sydney, Australia (Shippit | Order Fulfilment, Shipping Rates, Customer Satisfaction. 2020). The company is known to power the deliveries for most of the retailers across Australia, nearly 100 retailers and send thousands of deliveries within a month. The mission of the organisation is to revolutionise the way they send anything to the customers in any place. The industry in which they work in is considered to be computer software. The size of the company consists of 51-200 employees and is headquartered in Sydney, New South Wales. The specialties of the organisation are within E-commerce; logistics; customer experience and shipping as well. The online shipping tools such as Shippit are able to deliver to the global market. With the use of computer software, it provides different services to the customers. 

Trusted services
The company used to illustrate the Shippit Business Model makes it easier as well as safer for the customers for making use of the online services along with in-store through building an easy for using services that are backed through advanced cyber capabilities.

Digital government services
This helps the organisation to ensure in improving the way Australian citizens might access as well as utilise the services of government along with their needs (Australia Post | Shippit 2020). With the use of market trials for new technologies, it helps in transforming the way citizens are able to access the government services within remote; regional as well as the metropolitan areas.

The future logistics
In this case of Shippit Business Model, the company applies insight and expertise for the data through their parcel deliveries and trucks for driving advances within the supply chain management along with the methods based on delivery.

Deconstruction of the Shippit Business Model with the use of nine building blocks of Osterwalder & Pigneur canvas
The Shippit Business Model based on the respective organisation can be understood in a better way with the use of Osterwalder & Pigneur BMC.

Key partners
Within the initial years of its starting, the organisation was known to work as a shipping and delivery platform based on home ware and fashion boutiques within Sydney (Track Your Package | Shippit. 2020). Within the next few years, it expanded its business with an introduction of 750 retail companies within its business process. One of the main key partners of the company seems to be Australia Post. With this partner, the organisation was renowned as the largest organisation of logistics. However, the Australian sector of BigCommerce is yet another collaborator principle within the organisation. 

Key activities
Shippit is known to be an application of delivery that seems to be a channel within the customers and the retailers (Felin, Gambardella, Stern & Zenger, 2019). It is an E-commerce platform where the customers purchase their products across 800 stores of retail. 

Key resources
The distinct offerings for Shippit Business Model include the physical assets, for example, correspondence mediums; distribution centers; centers of cold stockpiling; production hardware and security services too. According to the scholarly assets, it includes distinct methods of business; promoting parameters; associations and copyrights; brand. In view of the HR, this incorporates the representatives and the laborers; production network and operational administrators; specialized help and client support officials alongside the other staff to be an essential part inside the organization. By the by, money related assets are likewise included, for example, the business capital; the credit lines and the funds too.

Value propositions
The main aim of the organisation is to deliver a flawless experience regarding the customers through the introduction of ideas based on a three-hour delivery window. However, the online application is also involved presenting a wider spectrum of features including an improved system of tracking (Yun and Zhao, 2020). Lenient business policy for the customers has also been considered.

Customer relationship
This is maintained within the company through conducting regular communication with the customers by the text messages and electronic mails. The grievances of the customers are prioritized and solved on an emergency basis, while offering small tokens for bearing up with the organizational flaws.

For the respective Shippit Business Model, the key distribution channel seems to be direct. This ensures that the company must act as a medium within the customers and the retail organisations. The online application is also considered as an initial channel of communication. 

Customer segments
The customer segments involve the population through age groups that is demographic segmentation (Jab?o?ski and Jab?o?ski, 2020). The company mainly functions within Australia and the customers and market are segmented through the economic scenario, needs and the behavioural patterns as well. The company has recently planned for a global expansion starting with US.

Revenue streams 
The shipping industry of Australia is known to earn revenue based on 13 billion dollars where the concerned organisation has been found to contribute the considerable amount within the overall earned revenue. The overall cost of the company seems to contribute 40% of the income.

Key interrelationships existing across the nine blocks
It has been evidenced that the nine parameters related to the respective Shippit Business Model have been interlined with one another. However, they all together tend to make up a successful process of business. As stated by Annarelli, Battistella & Nonino (2019), the significant factor seems to determine the concerned scenario related to the country where it functions and the way through which it can be referred to align with the overall structure of the business. For instance, the value proposition based on the respective organisation relies upon the overall plan of trade for the organisation along with its primary objectives and aims. Nevertheless, for determination of the value proposition, the determination of target market segment and customer needs are considered to be important. The process and the functioning of the business seems to determine the partnerships situations along with merging with the other companies. On the other hand, the distribution channels associated with Shippit are known to be the determining factors related to its overall revenue of the business and its output as well. However, as opined by Balcombe et al., (2019), a transparent relationship with the customers can determine the sales along with the overall business process.

Evaluation of the factors impacting Shippit Business Model success
After the initial days of the respective organisation, in the year of 2016, it was found to handle the parcels of about 800 retail brands within the areas of Australia. However, after passing 2 years of its business initiation, the company was known to get merged with the Australian Post that turned out to be a considerable factor regarding its success (Carter and Carter, 2019). BigCommerce Australia has also been found to recently partner with the concerned company. The main parameter of its success has been the distinct approach of the company for its business process as compared with the other organisations such as Temando. The organisation has also developed user friendly software of tracking along with delivery assurance of three hour. This has been a major reason for its expansion of the customers. 

On the other hand, the significant risk of the organisation which has been witnessed seems to be a notable competition as compared with its competitors in the market (Celik Girgin, Karlis & Duru, 2020). The organisation is also required for adopting new strategies to lead to a better positioning in the market. Consideration of its expansion in the US might impact its business policies and structures as compared with its competitors in US.

Can you suggest a valuable recommendation for the changes of Shippit Business Model?
The company has been found to expand as a global market leader and this makes it significant for Shippit to develop innovative ideas for competing with other organisations in US. However, as evidenced by Caesar, Cahoon & Fei (2020), enhancement in the customer base should also emphasize within the introduction of some new tactics along with a more user friendly approach of service along with a good approach for the international customers. Apart from this, it should also develop new policies of business for a better trade along with implementing an advanced medium of transportation. 

To conclude, the present study has evaluated the segmented process of the business with the help of nine parameters related to Shippit Business Model Canvas. The critical business factors and the interrelationships within the nine parameters have also been considered in the above discussion.

Annarelli, A., Battistella, C., & Nonino, F. (2019). How Product Service System Can Disrupt Companies’ BM. In The Road to Servitization (pp. 175-205). Springer, Cham.

Australia Post | Shippit - Shipping Made Simple. (2020). Retrieved 11 April 2020, from

Balcombe, P., Brierley, J., Lewis, C., Skatvedt, L., Speirs, J., Hawkes, A., & Staffell, I. (2019). How to decarbonise international shipping: Options for fuels, technologies and policies. Shippit Business Model Energy conversion and management, 182, 72-88.

Caesar, L. D., Cahoon, S., & Fei, J. (2020). Understanding the complexity of retention among seafarers: a perspective of Australian employers. Australian Journal of Maritime & Ocean Affairs, 1-26.

Carter, M., & Carter, C. (2019). The creative BMC as a tool for entrepreneurship education. ICERI2019 Proceedings, 3540-3544.

Carter, M., & Carter, C. (2020). The Creative BMC. Social Enterprise Journal.

Celik Girgin, S., Karlis, T., & Duru, O. (2020). Valuation mismatch and shipping q indicator for shipping asset management. Maritime Policy & Management, 47(1), 109-126.

Felin, T., Gambardella, A., Stern, S., & Zenger, T. (2019). Lean startup and the BM: Experimentation revisited. Forthcoming in Long Range Planning (Open Access).

Jab?o?ski, A., & Jab?o?ski, M. (2020). Conceptualization and Operationalization of Social BMs in the Digital Economy. In Social BMs in the Digital Economy (pp. 173-180). Palgrave Macmillan, Cham.

Shippit | Order Fulfilment, Shipping Rates, Customer Satisfaction. (2020). Shippit Business Model Retrieved 11 April 2020, from

Track Your Package | Shippit. (2020). Retrieved 11 April 2020, from

Yun, J. J., & Zhao, X. (2020). Rectangular Compass for BM Enlargement. Special Issue “Ambedixtrous open innovtion; technology, market and complexity, 71.

Appendix 1: Shippit Business Model Canvas

Shippit Business Model

Figure 1: BMC
Source: (Developed by the Learner)


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