Canada eh Company: Business Model


The description and representation of ways used by an organization for capturing, creating, and delivering value to its targeted customers are carried out using a business model. Canada eh will use the model in its attempts to describe the targeted customers and analyze the particular goods that they value. The company will create a good business model by outlining different ways that it will use to generate revenue. It will analyze the competitive environment and the market to understand prevailing needs of the customers and deliver value to them at an appropriate cost. The paper will hence describe the business model that Canada eh will apply to win customers’ loyalty, gain a significant market share, generate optimal profits and overcome the high level of competition in the market.

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Value Proposition

The value proposition in a business aims at differentiating the brand from competitors in the market (Hassan (2012). The online store business will be selling a broad range of products that signify the culture of Canadian people. It will reduce the pain of searching different products from various vendors. To overcome competition, Canada eh will specialize in offering goods in a one-stop shop and sell items that are truly Canadian. It will also attract the attention of customers who like associating with local brand.

The business is aiming at selling various products at one place to ensure that it meets the current demand of the targeted customers. The store will be stocked with different types of goods such as trapper hats, moccasins, maple syrup, Tim’s coffee, basic red plaid button shirt, team Canada jerseys, wooden mallard ducks and Inukshuk statues. It will also sell commodities that are purchased to meet the demand that arises at different times of the year, occasions and holidays. For instance, customers can buy attires that are worn during the Olympics, Canada day, Halloween and Remembrance Day. During cold seasons, like in mid-January, individuals in Ottawa can buy toque that will keep them warm. Hassan (2012) supports that offering a broad range of products from one-stop shop helps the business increase accessibility of commodities and win a massive customer base compared to its competitors. It will reduce the pain of thinking about different stores that are available when buyers want to purchase the wide range of products.

Revenue Model

The model is used in business as a framework to generate revenues. Barnes, Pinder, and Blake (2009) argue that revenue model is used in identifying the source of income, pricing strategy and the value a firm will offer to its customers. It is used in describing the product to be sold and different ways that are applied by the business to sell goods and generate revenue. The primary source of income for Canada eh will be from online sales of the products using the company website. The online store business will entail buying products from vendors and selling them on a retail basis.

Canada eh will be displaying a wide range of goods on its websites. The site will be utilized as an advertising platform since it will be displaying a broad range of products that are manufactured by many vendors. As a result, Canada eh will generate revenue from advertising various commodities that are produced and sold by different vendors. Different vendors, like Canada Goose, Tim Hortons, Minnetonka, and The great Canadian gift shop Company will be paying a percentage of their sales to the business. The vendors will be benefiting from their products being displayed on the Canada eh’s website.

Market Opportunity

Canada eh has currently focused on selling its products to consumers that are within the local market. Selling goods that promote the culture of Canadian people is a clear indication that the business targets tourists and local citizens as the two largest groups of customers. According to Kaartemo and Zettinig (2016), the rate of exchange plays a significant role in determining the number of tourists in a country within a given period. Currently, the Canadian dollar exchange rate has been decreasing. As a result, people from other parts of the world will incur minimal amount to travel to Canada. For instance, in July year 2016, there were 3.2 million people who visited Canada. The number has increased by 13.2% compared to tourists who had toured in the country during the same period of the previous year. A high number of people visiting the country indicate the availability of market opportunity to sell commodities that are truly Canadian.

Income from tourism in Canada is increasing by a substantial percentage. The results hence indicate the large customer base that is available and ready to buy Canadian goods at a one-stop shop. Increasing revenue from tourism is also an indicator of Canadian souvenirs business opportunity (Kaartemo & Zettinig, 2016). Selling Canadian products creates the market opportunity since it acts as a social responsibility of marketing the culture of local people. Additionally, the reason for targeting Canadian market is that the souvenirs only carry the meaning when they are bought at the tourist sites. Selling a broad range of products to tourists creates a market opportunity since they prefer saving time by buying various commodities at a one-stop shop.

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Competitive Environment

According to Barnes et al. (2009), the competitive environment is a dynamic external system that a business operates and competes with other companies. Canada eh will face a lot of competition because it targeted a market that is saturated. The competitive market environment for the business will be occupied by two main types of competitors. Canada eh will face major competition from large chain stores like The Bay and Roots. It will also compete for a market share with small size stores like Dollar stores and Souvenir and gift shops. Many large chain companies hold substantial market share for clothing and apparel items while the smaller stores cover the other range of goods like art, home decor, and consumables. Canada eh aims at selling every commodity that is wholly Canadian. As a result, it will face competition from small and large stores for the market share and customers base.

Canada eh has to apply a value proposition that will help it win customers from existing large chains and small stores. The business has developed a competitive advantage as a result of focusing on three major areas. It has brought a variety of classically Canadian products to one place, which made them more accessible and at a lower cost. Tourists and residents can buy various products of their choice at a one-stop shop and hence save time spent when shopping. Canada eh has provided its products at a lower cost than traditional souvenir stores because it does not have the high overheads that are associated with a brick and mortar store (Barnes et al., 2009).

Market Strategy

Companies implement a marketing strategy that will help them achieve the maximum revenue and sustain operations. The plan is meant to help a business acquire a more significant market share than the competitors and increase the number of customers demanding its products (Riihimaki et al., 2016). Canada eh is an online store and its targeted customers are individuals who can access and use internet. The company will, as a result, use various online platforms to market its value proposition of a one-stop shop plan that will contribute to reducing time spent when shopping. Canada eh market strategy will be based on online marketing. For instance, the use of Facebook, Instagram, Twitter, and Youtube ads will help it increase the engagement level with individuals who frequently use social media for communication purposes.

The business has focused on increasing its presence in online platforms like Instagram to help it drive business operations. It is also aiming at posting products on Instagram and use feature events and contests to increase the engagement levels. The company intends to increase the brand awareness among the targeted customers by sponsoring individuals like athletes, online figures such as YouTube personalities, bloggers, and events. The business is also intending to increase its engagement levels with the community through offering sponsorship to events like 5ks and marathons and food festivals. Sponsoring events will increase the number of people searching for its products online and increase the level of awareness among the targeted groups of customers (Barnes et al., 2009).


Barnes, C., Pinder, D., & Blake, H. (2009). Creating and Delivering Your Value Proposition: Managing Customer Experience for Profit. London, UK: Kogan Page.

Hassan, A. (2012). The value proposition concept in marketing: how customers perceive the value delivered by firms: A study of customer perspectives on supermarkets in Southampton in the United Kingdom. International Journal of Marketing Studies, 4(3), 68-88.

Riihimaki, T., Kaartemo, V., & Zettinig, P. (2016). Co-evolution of dynamic capabilities and value propositions from a process perspective. Advances in Business-Related Scientific Research Journal, 7(1), 63-76.

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