Application of a business model to the business of the nightclub - An analysis of Culture Club Revelin’s business using the Business Model Canvas

Abstract

Globalization is rapidly changing the world. The business environment is being changed on a daily basis and those who don’t follow the trends and keep up with the competition, are out of the game. Business decisions are becoming more and more complexed and difficult because of uncertainties in a volatile global market. Culture Club Revelin is a nightclub located in the city of Dubrovnik in Croatia, destination with growing popularity and vastly increasing number of tourists every year. The nightclub has two different oriented business segments, namely summer and winter season. This segmentation of the work represents a big challenge in order to combine these segments together, but at the same time, keep the consistency and core of the company’s business the same. This reflects on many levels, with the focus on different customer segments, adapted value propositions, different marketing channels that are used to reach the customers, different type of relationships that every customer segment require and with quite different revenues in each of these two business segments. My work in the company as program and marketing coordinator made me realize that company needs to follow more standardized processes and formalize their way of doing business in order to identify the challenges that is facing and most crucial areas to improve their business operations. Therefore the study of business model concept, that reflects on company’s work and represents architecture of company’s business by easily communicating it with all involved parties, came as a logical choice to conduct a case study with ethnographic method. More precisely, the Business Model Canvas, as a creative and visually appealing tool that is easy to understand without previous knowledge, seemed like an appropriate choice to represent CC Revelin’s work in nine different business segments. Focusing on five segments in particular, namely customer segments, value propositions, channels, customer relationships and revenue streams, I got to some conclusions and recommendations for the company. Firstly, this thesis provides which are the biggest challenges that CC Revelin faces. Secondly, provides an answer on how to apply the BMC in the nightclub industry. And lastly, by applying it, what are the crucial areas on which CC Revelin needs to focus in order to improve their business operations.