You are on page 1of 12

Case Study on

Business Model
Adopted by the Pogo

Abu Sufiyan
R V Institute of Management
Canvas business model is a one page picture that lays out both what you do and what you want to do.

The canvas model is powerful model and can be applied to any form of business as each and every
business will have nine building blocks in their business operation which can be understood by using
canvas model.

The purpose of this study is to understand the business model of the pogo travels and study all the
activities involved in the business.

Business model includes all the aspects from starting to the end of the business process, it aims to
know all the activities involved in business from sellers to customers.

Tourism Industry
Travel & Tourism industry is the one of the largest industries in the world.
The World Travel and Tourism Council (WTTC) is having the worldwide power on
the financial and social commitment of Travel and Tourism.

The aim of Travel and Tourism industry is being an instrument for monetary
development and employment creation.

In some creating nations, prominently little island states, tourism can represent more
than 25% of GDP.
About Company

Pogo travels was established in the year 2003 as a sole trade concern.

Company has its branches in Bannerghatta road, Jayanagar and Shivaji Nagar in Bangalore.

Company create elite Annual Tours Brochure for Adventure, Cultural, Religious, slope
station and natural life visits in India.

Company sets its tour packages Before three months for the benefit of better advertising.
Case Analysis
Nine Building Blocks of Canvas
Business Model
1.Key Partners:
Key partners in a business are the firms form an alliance and both firms retain their
independence and liberty, to form more partnerships. Key partners for Pogo Travels are
Airlines, Hotels, Resorts, Insurance Providers etc.

2.Key Activities:
Key activities means activities performed by the company with the intension of
customer satisfaction and retention, some of the key activities of Pogo Travels is to
design travel route for customers and offers perfect arrangements of food and
accommodation, and also maintain the healthy relationship with the customers for a
long period to smooth and effective running of the business.
3.Key Resources:
The key resources are necessary to create value for the customer, they considered as to be
assets of the company. Key resources for pogo travels are Skilled Employees, Travel
Guides, Brand Name, etc.

4.Value Proposition:
A value proposition is a promise made by the company regarding to benefit to be
delivered and acknowledged. The following are the strategies adopted by the company to
increase its value proposition like, All inclusive travel packages, Average prices, Seasonal
dependent offerings, etc.
5.Cost structure
Cost structure means which describes all the liabilities or expenses incurred to operate
business. Most of the costs are incurred in a particular business is for creating and
delivering value and maintaining customer relationships. Key cost structure of Pogo
travels are Employee Salaries, Rent, Marketing, and other Utilities.

6.Customer relationship
When it increases in sales its will tempts the company to concentrate on making the
new sales or pursuing the bigger accounts. but it is essential to maintain the good
relationship with the old customers. Therefore Pogo travels has taken many steps to
maintain good relationship with the old customers. such as it is investing on the CRM
activities Personal assistance and providing special seasonal dependent offers.
7. Channels:
A distribution channel in which the products reaches the customers directly or through some

stages. It mainly explains the distribution path from company to the customer. Most of the

times company requires some channels to sell its products, some of the channels accepted by

the Pogo travels is discussed below. Front office, Websites, etc.

8.Customer segments:
Customer segmentation is the practice of dividing the customers on the basis of groups and

individuals, and also other specific ways relevant to marketing such as, age, gender, interests

and spending habits. Pogo travels also segmented the market as people who wants all inclusive

prices, and exclusive prices.

9.Revenue streams:
A revenue stream is a structure of revenue. It is viewed as one of the building pieces of
plan of action canvas. For Pogo travels important revenue stream is sales of tour
packages, also other sources of revenue is discounts from the hotels and resorts and
commission paid by the hotels and resorts.
1.All-inclusive offering 1.Customer base (variable)
2.Partner network 2.Seasonality of offering
3.Market sensing and positioning 3.Online presence (website)
4.CRM 4.Customer segmentation

1.Small agencies going bankrupt and selling 1.Low brand loyalty
valuable resources 2.Removal of commission by airlines
2.Three new destinations (new partners) 3.Substitute products offered by competitors
3.New segment (retired people, businesses) 4.All-inclusive vacations perceived as a luxury
4.Innovations in transportation (higher capacity and range)