Business Model Canvas Applied to Hanson Logistics Expansion
This paper applies Alexander Osterwalder and Yves Pigneur's Business Model Canvas framework to evaluate Hanson Logistics' proposed expansion into the Indiana and greater Chicago market. Hanson Logistics, a specialist in frozen food distribution, is considering a new state-of-the-art warehousing facility in Hobart, Indiana. The analysis examines each of the nine building blocks — customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key partnerships, and cost structure — to assess the viability of this expansion. The paper concludes that Hanson's existing relationships, operational capabilities, and strategic location choice collectively support a strong foundation for successful market entry.
- Introduction to the Business Model Canvas: Framework overview and Hanson Logistics context
- Customer Segments and Value Proposition: Target markets and Hanson's competitive differentiation
- Channels and Customer Relationships: Distribution role and key client relationship strategy
- Key Resources and Partnerships: Facility specs and strategic supply chain partners
- Cost Structure and Location Strategy: Hobart site advantages and Indiana tax benefits
- Conclusion: Recommendation for Indiana expansion site
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What makes this paper effective
- The paper methodically walks through each relevant building block of the Business Model Canvas, maintaining a clear one-to-one correspondence between the framework and the company's specific situation.
- It grounds the abstract framework in concrete operational details — such as the facility's 227,678 square feet, 36 dock doors, and Indiana tax advantages — giving the analysis credibility and specificity.
- The paper acknowledges strategic tradeoffs (e.g., Illinois taxes vs. Chicago proximity) rather than presenting the business case as wholly positive, which strengthens its analytical balance.
Key academic technique demonstrated
The paper demonstrates applied framework analysis: taking a well-known theoretical model (the Business Model Canvas) and systematically using its components as analytical lenses to evaluate a real business scenario. Each section introduces a building block, defines or contextualizes it briefly, and then connects it directly to Hanson Logistics' circumstances, showing how theory translates into practical business planning.
Structure breakdown
The paper opens by introducing the Business Model Canvas and the company under study. It then moves sequentially through the relevant building blocks — customer segments, value proposition, channels, customer relationships, key resources and partnerships, and cost structure — dedicating a paragraph to each. A brief conclusion synthesizes the findings and recommends the Indiana site. The structure mirrors the framework itself, making the argument easy to follow and assess.
Introduction to the Business Model Canvas
The Business Model Canvas contains nine building blocks related to creating a business model that translates a good idea into a viable business. These nine building blocks are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure (Osterwalder & Pigneur, 2009). The company in question is Hanson Logistics, a specialist in frozen food distribution. The company already exists and is successful enough to work for Walmart, so it could be argued that it does not need a new business model — it already has one. Nevertheless, several elements of the Business Model Canvas are used here to discuss a proposed new warehousing facility in Indiana.
References
Investopedia. (2014). Value proposition. Investopedia. Retrieved October 27, 2014, from http://www.investopedia.com/terms/v/valueproposition.asp
Leeb, S. (2013). Wal-Mart fattens up on poor America with 25% of U.S. grocery sales. Forbes. Retrieved October 27, 2014, from http://www.forbes.com/sites/greatspeculations/2013/05/20/wal-mart-cleans-up-on-poor-america-with-25-of-u-s-grocery-sales/
Osterwalder, A., & Pigneur, Y. (2009). Business model generation. Self-published.
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