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Lean Canvas Example: Lean Canvas Business Model Example For 2022

Lean Canvas Example: Lean Canvas Business Model Example in 2022. Lean Canvas Model Example. Example of Lean Canvas Business Model.

Lean Canvas Model

The Lean Canvas model refers to a business plan template outlining nine essential elements of the new business. In 2010, Ash Maurya developed the one-page business template and termed it the Lean Canvas Model. The lean canvas model assists entrepreneurship in pre-assume the nine essential critical ideas related to the Business.

Lean Canvas is adapted from Business Model Canvas introduced by Alex Osterwalder in 2005. Therefore, the lean canvas model is also known as the Lean Canvas Business Model. The alternative names of the Lean Canvas are the Lean Canvas Model, Lean Business Canvas, Lean Business Model, Lean Startup Canvas, and Lean Canvas Online.

Lean Canvas Business Model

Lean canvas business model refers to a one-page business plan template describing nine key idea elements related to the market: problem, solution, unique value proposition, unfair advantage, customer segments, key metrics, channels, cost structure, and revenue structure. However, the additional elements of the lean canvas model are existing alternatives, high-level concepts, and early adopters. It replaces detailed business plans with a concise and single-page business template.

History of the Lean Business Model

Lean Canvas Business Model is adopted from Business Model Canvas, and Business Model Canvas was adapted from Business Model Ontology. In 2004, Alex Osterwalder introduced Business Model Ontology for digital business. After one year, In 2005, he introduced the Business Model Canvas based on the previous theory “Business Model Ontology.” In 2010, Ash Maurya introduced the Lean Canvas model for entrepreneurship to start a new business with concise information regarding the business, including problem, solution, target audiences, competitors, and so more.

Lean Canvas Example

The example of the lean canvas has been presented in this article so that students and viewers can understand how to create a lean canvas business model template for new businesses. Sometimes, lecturers provide assignments to students on how to create a lean canvas model template for starting up a new business.

Lean Canvas Example – Word File Download Link

Lean Canvas Business Model Example

How to Fill Out a Lean Canvas

Lean Canvas Business Model- Lean Canvas Word Template Example — Figure 2: Example of Lean Canvas business model

Lean Canvas Business Model Example

BambooS- An Eco-Friendly Company in Malaysia

BambooS is an environment-friendly company in Malaysia that produces bamboo straws. Nowadays, restaurants do not provide plastic straws due to polluting the ocean extremely. So, the BambooS has come up with straw made of Bamboo. These products are cheap, portable, reusable, and decomposable. The government of many countries, including Malaysia, has given directives to reduce the use of plastic. Therefore, many restaurants, including McDonald’s, KFC, PizzaHut, and Nando’s, do not provide plastic straws. It is challenging to drink juice without a straw; hence BambooS has started to sell portable and reuseable bamboo straws.

It is an example of a Lean Canvas template filled out by BambooS, an eco-friendly company in Malaysia. The student at University Putra Malaysia students completes these lean startups for assignment purposes. However, entrepreneurship also follows the same instructions to complete the lean canvas template. Hopefully, it will assist employees in obtaining ideas on how to fill out a lean canvas.

The Lean Canvas example will help students and employees to know how to fill the lean canvas word template. The author has attached a blank and filled lean canvas word template for entrepreneurship. It will definitely assist the new businessmen to start new businesses wisely.

Elements of Lean Canvas

The 9 Elements of the Lean Canvas Business Model are:

Problem
Solution
Unique Value Proposition
Unfair Advantage
Customer Segments
Key Metrics
Channels
Cost Structure
Revenue Structure

1. Problem

Firstly, as an entrepreneur, you have to identify existing problems that you want to solve with the new products and services. It is crucial to find out at least three essential problems that your product and service will completely solve. Therefore, the entrepreneur needs to list down three problems under the problem section in the lean canvas.

For example, according to BambooS’ lean canvas, the three problems are environmental pollution, one-time use, and restaurants do not provide plastic straws now. So, BambooS is a new company that has outlined these three problems.

2. Solution

The solution is the goal of your business. So, you have to outline the solution to the problems mentioned in the problem section. The solutions have to be concise, significant, and capable enough to resolve the problems.

For example, according to figure 3, the three solutions are eco-friendly products, reusable and portable. These three proposed solutions are sufficient to resolve the problems.

3. Unique Value Proposition

A unique value proportion refers to a commitment of value that the product or service will definitely provide. It is the fundamental reason for what the customer will buy the products or services. So, you have to differentiate your product or services from others to grab customers’ attention. The unique value proposition also represents the company tagline, somewhat relevant to the mission and vision.

For example, the unique value proposition of the BambooS products is bamboo straws- reusable and eco-friendly products, customized products- of different sizes and made of natural material. The tagline is Grab me with zero pollution to save the planet.

4. Unfair Advantage

Unfair advantage denotes something of the company that competitors will not be able to replicate. The exceptional quality of the product or services makes the company distinguished. However, it would help if you had to remember that your unfair advantages are sustainable.

For example, BambooS company’s unfair advantages are the new eco-friendly product, unique packaging with a jute pouch bag, and engraved service. These unfair advantages are sustainable and exceptional that no company offers now in Malaysia.

5. Customer Segments

The problems and customer segments are interconnected issues; because the customers create problems. So, the problem can not endure without customers. Additionally, customers are the consumer of your products and services. Therefore, you have to analyze your target customer before identifying the problems. Additionally, you have to keep in mind some issues related to the customers, such as where your customer lives, the economic conditions, the demographic factors, and so more. Customer segmentation is also known as geographics, psychographics, and demographics in marketing.

For example, the BambooS authority has chosen the University Putra Malaysia to target audiences. Additionally, they have included Cafe and Restaurant at UPM, Facebook and Instagram Users, and eCommerce Marketplaces (Lazada & Shopee Users) in the customer segment section.

6. Key Metrics

Key metric refers to the factors that the company owner measure to run the business properly. The key metric drives the performance of the business, so the owner must need focus on these factors to keep the record. Actually, key metrics are the statistical data related to market share, consumers, number of new users, revenue per customer, and so more. For example, how many followers of the social media pages and the monthly sales revenue. Sometimes, management invests in marketing based on the key metrics data. Every company invests to get

For example, the three key metrics of the BambooS company are active community growth rate at UPM and bamboo straw users, Social media page followers and monthly selling rate, and customer positive feedback vs. sales revenue. These data will definitely help the authority to adopt a strategic marketing policy to increase sales revenue. If the company can sell the product properly on social media platforms compared to offline sales, they definitely focus on increasing followers on social media pages to earn more.

7. Channels

Channels are the media in which management reaches the customers. The channel plays an essential media in conducting a marketing campaign. Many types of channels or media allow you to reach customers as well as regulate campaigns. The two most important types of communication channels are offline and online channels. The offline channels are face-to-face marketing, placard, banner, festoon, newspapers, TV, and radio.

On the other hand, online media are social media platforms, e-commerce sites, and website traffic. Usually, the market analyzer researches the customer’s background to decide which channels they want to use to conduct a marketing campaign. Nowadays, most companies utilize e-commerce and social media channels to conduct digital marketing. The covid-19 pandemic has changed people’s lifestyles, business patterns, and education procedures. Many organizations use online webinars to conduct organizational meetings and regulate business properly.

For example, the BambooS’ authority has chosen Facebook, Instagram, LinkedIn, company’s official website, Lazada, Shopee, and Word-of-mouth marketing- WOM for the UPM community.

8. Cost Structure

Cost structure refers to the costs of launching a new business, for example, equipment acquisition costs, marketing costs, operational costs, and website domain and hosting costs. According to a statistic report, around 90 percent of new companies fail to operate due to not considering the total cost of starting and driving the business. Therefore, the owner needs to launch a new business after arranging the full payment.

For example, the BambooS’ authority outlines the sectors where they have to initially invest money to launch the business. The list is following:

Purchasing Bamboo, Pouches, Coconut fiber cleaning brush, and Paper box.
Delivery fee.
3D Printing service cost.
Website design and online Paid-advertising.

9. Revenue Structure

Revenue is the key performance indicator of a company. The factors of the company’s performance and the revenue has a positive relationship that influences each other. Revenue structure is also known as a revenue stream. You have to assess and set the price of the product before releasing it to the market. Many companies make the mistake of setting a meager price when launching the product in the market.

The minimum price may bring an adverse impact on business. It damages the future probabilities of your business. Firstly, you might lose a customer when increasing your product price later. The price module must be tested several times through multiple ways to catch the market by the products. The revenue structure depends on the type of business, whether you want to sell products or services. It also depends on whether the company is online platforms based or physical market-based.

For example, BambooS includes the factors to the revenue model, such as physical product selling, launching price is not so much low or high, and online selling price lower than direct selling.

Difference Between Lean Canvas and Business Model Canvas

Lean Canvas Business Model- Lean Canvas Word Template Example

Firstly, Ash Maurya developed the Lean Canvas Model in 2010, whereas Alex Osterwalder introduced the Business Model canvas in 2005.

Secondly, the nine basic elements of the lean canvas model are the problem, solution, unique value proposition, unfair advantage, customer segments, key metrics, channels, cost structure, and revenue structure. On the other hand, the nine fundamental elements of the Business model canvas are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.

Additionally, the Lean canvas model is suitable for new entrepreneurs who want to start a new business and startup. In contrast, Business Model Canvas is suitable for an existing business.

Usually, entrepreneurs, founders, and investors of the company apply the lean canvas model. However, the senior manager, marketing manager, and operation manager utilize the business model canvas to yield positive outcomes from the business.

Moreover, applying lean canvas aims to identify the problem and solution to fit new entrants. On the other hand, using the Business model canvas understands the existing market and identifies opportunities.

Furthermore, the basis of the lean canvas model indicates testing ideas, assessing the assumption, and focusing on the value proposition. In contrast, the basis of the Business model canvas shows advanced and progressive innovation.

Lean Canvas Versus Business Model Canvas Example

Lean Canvas Business Model, Lean Canvas Word Template & Example

Lean Canvas Business Model Example For Google

A sample of a lean model canvas of Google has been presented here to better understand how to fill out the template.

Lean Canvas Business Model, Lean Canvas Word Template & Example

Lean Canvas Business Model Example For YouTube

Lean Canvas Business Model, Lean Canvas Word Template & Example

Hardball Tactics in Negotiation Definition & Examples

Hardball Tactics in Negotiation, Definition & Examples. This article explains the top 8 Hardball Tactics in Negotiation: Good cop, bad cop, Lowball Highball, Bogey, Nibble, Chicken, Intimidation, Aggressive behavior, and Snow Job.

Hardball Tactics

Hardball Tactics refer to the typical method applied by negotiators to achieve a goal anyhow. Any part of the negotiation can use hardball tactics to gain an advantage. Hardball tactics are a deceptive way to gain the objective. The negotiator usually employs these tactics to benefit from another party’s detriment. People use these hardball tactics for personal, social, political, and business purposes. They adopt them to purchase a product, make an agreement, and deal with other parties. It is a significant strategy in business communication.

Hardball tactics in negotiation are arguably not ethical practices for dealing with other parties. Many scholars term them unethical and tricky way to achieve advantages.

The Most Common Hardball Tactics

Hardball Tactics Examples-The 8 Typical Hardball Tactics in Negotiation — The 8 Typical Hardball Tactics in Negotiation

What are the hardball tactics in negotiation?

The 8 Hardball Tactics in Negotiation are:

Good cop/bad cop
Lowball/Highball
Bogey
The nibble
Chicken
Intimidation
Aggressive Behaviour
Snow Job

Good Cop Bad Cop Tactic

A good cop/ bad cop negotiation refers to tactical bargaining between two parties to benefit from the other party’s detriment. It occurs amid two parties’ negotiation when two people in the same party deal with the other party as good and bad.

Good Cop Bad Cop Tactic Example -1

For example, the police want to ask questions at a police station, but the prisoner would not want to say anything. So, two police officers plan to play a game, and one acts like a rude, devilish person so that he can ask the question fiercely. On the other hand, another police officer interrogates the prisoner politely. Finally, the prisoner shared all the information with them.

Good Cop Bad Cop Tactic Example -2

For example, A customer goes to a mask shop where the shop owner and his manager sell products. The customer wanted to buy a mask, so he negotiated with them. The shop owner is persuading the customer, saying that the facemask will protect you and your family from Coronavirus. It would be best if you bought it without focusing on only RM 5 per piece. On the other hand, the manager says to the customer that you have to pay RM 5 if you want to buy or not sell it for less than RM5. The manager also intimidates the customer, saying that you can go now without paying RM 5. However, the owner is still trying to persuade the customer to buy the mask for RM5. The owner is dealing in a friendly manner, whereas the manager threatens the customer. However, both (the owner & manager) want to sell the product. This kind of negotiation is called a good cop/bad cop negotiation.

Good Cop Bad Cop Tactic Example -3

When I was a secondary student, I had violated the school rules for being late to school. The school discipline teacher acted as the “Bad Cop” who commanded on punishing me according to the school rules and regulations. Meanwhile, the counseling teacher held an open-minded talk to understand why I was late and advised me patiently. Finally, I will never be late again in the next five years.

Lowball Highball Tactic

The negotiator applies a lowball/highball tactic to get the other party’s attention. They know that they will not be able to achieve it but offer. Actually, the lowball/highball tactic begins with an extremely low or high opening offer to the opposite party. The extreme proposal will stimulate the other party to re-evaluate their opening offer and move closer to or beyond their resistance point.

Lowball Highball Tactic in Negotiation Example-1

For example, your son does not want to go to school by bus because his friends come by private vehicle. Therefore, he decided not going school till buying a private car. You offer him to gift a new personal car by next month to make him happy. You know very well that you will not be able to buy a new private car by next month. It is a ridiculous offer that is called a lowball/highball tactic. Later, you manage to persuade him to go to school by bus for six more months, but you will buy a motorbike for him after six months.

Lowball Highball Tactic in Negotiation Example-2

For example, imagine that you want to buy a woody chair. They negotiate with the seller, and the set price is 100RM; you might think it is unacceptable, so you say can I buy it for 20 RM because it does not seem that high? The seller might shock for a while, and after that, the seller might say,” 50RM, take it okay?” Finally, your goal has been achieved.

Lowball Highball Tactic in Negotiation Example-3

For example, my girlfriend (ELA) stopped talking to me because another girl likes my photos uploaded on Facebook. ELA is jealous of girls who like and comment on my Facebook photos. I offered him not to use Facebook anymore to continue our communication. She also knows that It is quite impossible to stop using Facebook. However, this tactic stimulates her to talk to me for bargaining. We argue for an hour to finally agree that I would block the girl from following me on Facebook. Finally, I managed to think that blocking is so much better when it is a bad idea to stop using Facebook due to the girl.

Bogey Tactic

Bogey tactics in negotiation are demonstrated when negotiators conceal their interest in front of the other party. Negotiators pretend that the issue is of very little importance to them, the opposite party offering. The issue is significant for them, but they do not want to show their interest in front of the opposing party.

Bogey Negotiation Example-1

For example, you want to buy a new Samsung mobile phone with a face lock feature. Now, the shop owner shows you the latest Samsung mobile phone and indicates the new feature. You will be glad to see the new feature on the phone. However, you are not showing interest in the face lock feature. You are concealing your interest in front of the shop owner. You think that the shop owners can increase the price if you show more interest in the new feature. Therefore, you pretend you are not interested in buying this new phone. Eventually, you buy a low price phone with the new face-lock feature.

Bogey Negotiation Example-2

This tactic is usually applied to the gambling situation. When I play mahjong with my family members, I maintain my poker face even though the mahjong I drew is good, and I win the game. But, I stay calm to distract my opponents’ attention, not to sense my happiness. After that, I pretend that I want mahjong A, but my target is mahjong J. Then, I successfully won the game by misleading the other family members to discover my true intention.

Nibble Tactic

The nibble tactic refers to asking for a minor concession to make the deal final. Usually, negotiators use this tactic after a long time of negotiation between them. The negotiator needs to add a small item to complete the deal or agreement.

Nibble Negotiation Example-1

For example, the customer will purchase the secondhand iPhone if the seller provides headphones and a charger and at the same price. It happens at the ending period of the negotiation when any party wants to close the deal.

Nibble Negotiation Example-2

For example, the tenant will rent the house if the owner replaces the old refrigerator with a new one. Finally, the owner agrees to add a new refrigerator to complete the agreement.

Chicken Tactic

In a negotiation tactic, the negotiator uses a big bluff with a frightening action to force the other party to fulfill their demands. The negotiator forces another party to close the deal immediately.

Chicken Negotiation Example-1

For example, one party is threatening the other party with, “If you do not sell this phone at RM 1000, I will buy the same phone from the next shop who is interested in selling it at the same price. The owner believed the customer’s bluff and agreed to sell the phone at RM 1000.

Chicken Negotiation Example-2

For example, The customer said he wants the furniture ready on the weekend or to find another shop. The shop owner became agree to deliver furniture before the due date believing the customer’s bluff.

Chicken Negotiation Example-3

For example, after a long negotiation, both sides are not satisfied with each other. Then one side says, “if you really oppose accepting my ideal price, I will find another person who will provide my ideal price.”

Intimidation Tactic

Intimidation tactics attempt to force the other party to agree by applying emotional appeal. They use emotion, anger, or fear to agree with the opposite party. The other side may deliberately use anger to show the seriousness of the position.

Intimidation Negotiation Example-1

Calvin is a small employee in a company. David is a well-known violent temper person in the organization. They are bargaining for various issues for a long time. Suddenly, David slapped the table, glared at Calvin, and said: Think about the difficulty of your job. Your wife and children at home are still waiting for dinner. Finally, Calvin accepted the conditions.

Intimidation Negotiation Example-2

For example, if someone bought a television, it did not work when he wants to open it at home. Still, it was nothing wrong when he checked the tv in the store, and then he asked the store to replace one for him, but the store refused to return it because it is available when he checked in the store. Finally, he said if you do not replace it for me today, I will post this on social media; nobody will come afterward.

Aggressive Behaviour Tactic

Aggressive behavior refers to the strategy of being aggressive in pushing your position or attacking the other person’s position to gain advantages. It is similar to intimidation tactics, but negotiators use their position to intimidate others psychologically. It includes asking for further concessions.

Aggressive Behaviour Negotiation Example-1

For example, one customer comes to buy a mobile phone formally and says: Let’s not waste time; what is the maximum price? Here, the customer wants to emphasize that their time is significant, so close the deal soon.

Aggressive Behaviour Negotiation Example-2

For example, a sales manager offers RM 5000 for iPhone 12, but the customer is still negotiating to reduce the price. Instantly, the owner gets angry at the manager and “how can you make such a low offer.” Do you know today I have sold three iPhone 12 at RM5500 within 30 minutes? You are really wasting our time. It stimulates the customer to buy it at RM5000.

Aggressive Behaviour Negotiation Example-3

For example, a customer goes to buy a personal car in the showroom—the salesmen bargains with him regarding the price for a long time. Eventually, the customer brought out his identity card and showed the salesmen said, “I am also marketing manager, so please do not apply the marketing policy on me.” Here, the customer uses his position to win the negotiation.

Snow Job Tactic

Snow job tactic is demonstrated when negotiators surprise the other party with huge additional information. These additional confuse the opposite party about figuring out which facts are fundamental and essential. It occurs when negotiators overwhelm the other party with so much information to get distracted.

Snow Job Negotiation Example-1

For example, you want to buy a new mobile phone, and the seller provides you with so much information about the additional factors. They ensure that this phone is eco-friendly. It will not harm you. They also show you how many people are dying due to mobile blasts and so more. The use of many technical terms confuses anyone who is not familiar with the topic.

Snow Job Negotiation Example-2

The negotiator explains the deal in English, but Ahmad, a non-native English speaker, will see him as educated. Ahmad will say yes without asking many questions to avoid embarrassment because the negotiator seems knowledgeable and more expert than him.

Snow Job Negotiation Example-3

Snow Job tactics are frequently used in government project tendering. When the government starts a new development project, it will publish massive amounts of information to hide the accurate worthy information behind the overwhelming information. This tactic is used to prevent the misuse of precious data for any illegal activity.

Conclusion

The top 8 Hardball Negotiation Tactics are Good cop, bad cop, Lowball Highball, Bogey, Nibble, Chicken, Intimidation, Aggressive behavior, and Snow Job. These typical tactics are crucial elements for win-win and win-loss negotiations.

Citation For This Article (APA 7th Edition)

Kobiruzzaman, M. M. (2024, March 10). Hardball Tactics in Negotiation- Hardball Tactics Definition & Examples. Newsmoor- Educational Website For Online Learning. https://newsmoor.com/hardball-tactics-examples-example-of-hardball-tactics-in-negotiation/