Developing a Business Model Canvas for Online Classified Ads Platform: A Startup Case Study

: A growing culture of using the internet, aims to provide products and services that are modern and safe in the online advertising market. This study proposes a business model canvas for new startups classified online ads to gain a competitive advantage in the Indonesian market. Utilizing qualitative research, this study explores the development of an online classifieds business, with a focus on the integration of AI technology and in app payment systems. The proposed model includes product development, marketing and gathering user feedback. Likewise, the company can implement the proposed business model by developing its platform features and customer service.


RESEARCH DESIGN
Researchers will use qualitative research to fulfill the objective aspects of this study and focus on developing an online classifieds business. A qualitative methodology is used to better understand the needs of users of online classifieds services in order to provide better services and features to users. Qualitative research studies can provide the capacity to analyze through in-depth and flexible interpretation using only limited data (Azungah, 2018). Theoretical foundations and guidelines serve as the framework for research designs, encompassing assumptions, principles, and regulations that unify various concepts. In this particular study, the authors employ a conceptual framework to gain a competitive advantage, systematically dissecting ideas from identifying business issues to proposing implementation strategies. This study follows a structured approach influenced by Rothaermel (2017), encompassing three interrelated tasks in strategic management: analysis, formulation, and implementation of a strategic framework aimed at developing the most effective strategy for achieving a competitive advantage.

DATA COLLECTION METHOD 2.4.1 PRIMARY DATA
The main source of data for this study is derived from in-depth interviews conducted with individuals who are users of competing company products. These interviews were conducted by selecting specific research subjects rather than using the entire population as research respondents. This approach is in line with Sugiyono's (2005) assertion that qualitative research is based on specific cases and social situations, rather than being determined by the population. The researcher establishes criteria for selecting respondents and categorizes them into two distinct groups, as follows:

A. Seller
As a seller through an application or website. Gender male or female aged between 18 to 35 years old. Have used at least one of OLX, Carousel, Trovit, Mitula to sell new or used products online in 2022.

B. Buyer
As a buyer through an application or website. Gender male or female aged between 18 to 35 years old. Have used at least one of OLX, Carousel, Trovit, Mitula to buy new or used products online in 2022.
After determining the criteria for respondents, the researcher arranged the interview questions as • What is the process of selling goods in the application that you use? Please explain! • Tell me about the shortcomings when selling new / used goods in the application (can be from features or during the process of selling goods) • Tell me about the advantages when selling new / used goods in the application (can be from features or during the process of selling goods) • Are you charged with other additional costs if you buy through the application? • What do you think of the ad posting fees charged in the application? (already cheap or expensive) • What do you think about the UI/UX appearance of the application? • How is the payment system provided in the application, and what do you think? Please explain! • What delivery system does the application provide? Please explain! • How long does it usually take for the goods to arrive and what you advertise sells well in the application, what is your opinion? • What's your opinion on the length of time items are sold in the app?

Secondary Data
Secondary data to be used in research can be in the form of qualitative data and quantitative data. Qualitative data was obtained through online media, articles and publications while quantitative data was obtained through statistical reports from the government, statistical agencies or other institutions.

DATA ANALYSIS METHOD
In this study, the researcher acts as a collector of research data and other instruments, such as users of competing products or the various data and documents that researchers take are only used as basic supporting analysis. Data analysis is done by managing data, looking for and finding patterns to find out what is important and what can be learned through the data obtained. The data analysis method uses several research frameworks as

ANALYSIS
The study employs a qualitative research approach, utilizing in depth interviews and document analysis to gather data. The data is then analyzed using thematic analysis to identify key themes and patterns.  As shown in table 3.3, company has different competitive levels applied to its resources and capabilities: 1) Temporary competitive advantage The company possesses two temporary competitive advantages: technological resources and innovative product offerings, which are valuable intangible assets. These resources have been effectively managed by the company. However, these advantages are temporary as there are currently no competitors utilizing similar resources to innovate online classified advertising products and services. It is important for the company to continuously reassess these advantages in light of future growth conditions to maintain a competitive edge over rivals.

2) Competitive parity
The company possesses three competitive parities in the form of human, financial, and physical resources, which are valuable but commonly owned by other online classifieds service providers. Relying solely on these tangible resources is insufficient to attain a competitive advantage. It is crucial for companies to explore and acquire additional resources that can provide a distinct competitive edge.

3) Unused competitive advantage
The company possesses an untapped competitive advantage in the form of sales and marketing, which falls under intangible resources. Currently, the company has not leveraged this advantage to gain a competitive edge. It is crucial for the company to effectively manage their sales and marketing resources to establish a sustainable competitive advantage. By offering attractive discounts and implementing effective promotions, the company can attract more users to their online classified ad applications and ultimately increase their user base.

SEGMENTATION
Segmentation is analyzed to divide the broad market into smaller groups based on demographic, geographic, psychographic and behavioral characteristics. Therefore, researchers analyze market segmentation conditions as follows:

3) Psychological and Behavioral
Companies offering online classified ad services can use psychological segmentation to understand users' preferences for used goods based on social class, lifestyle, and hobbies (APJII, 2020; Katadata.co.id, 2021). This strategy involves targeting users seeking cost savings and value, those interested in sustainable living and environmental care, and individuals searching for unique or rare items for self-expression (IDN Research Institute, 2022). Furthermore, research indicates that 98% of respondents rely on social media for information, highlighting the active presence of online classified ad service users on these platforms. Thus, companies can leverage social media in their marketing strategies, emphasizing the need for a strong online presence and a user-friendly interface to enhance the user experience (IDN Research Institute, 2022). Effective marketing strategies should be tailored to the psychological characteristics and specific needs of each user. Companies can make efforts to understand the different preferences of users and adjust their marketing strategies, so that the activities of selling or buying used goods can attract more users. By considering psychological segmentation and utilizing social media as a marketing tool, companies can increase sales and achieve success in the online classifieds industry.
Based on the explanation above, researcher has mapped the market into 3 segmentation category, as follows: a. Segment A Man and woman aged between 10-17 years old domiciled in Indonesia. Elementary to high school education with an income between IDR 0 -IDR 1,500,000. Do not really need used items because they have been fulfilled by their parents. b. Segment B Man and woman aged between 18-35 years old domiciled in Indonesia. College student to workers with an income between IDR 3,000,000 -IDR 12,500,000. Looking for used items to save costs, sustainable lifestyle and get unique or rare items with a cheap price. Tech savvy, likes a variety of products and gets more information from social media and search engines. c. Segment C Man and woman aged between 36-60 years old domiciled in Indonesia. Workers to retirees with an income between IDR 8,000,000 -IDR 35,000,000. Looking for used items to save costs, sustainable lifestyle and get unique or rare items with a cheap price. Get information from television and billboards.

TARGETING
This is determined based on the results of interview analysis and data that has been collected in the discussion of segmentation. A brief explanation of the predetermined target market can be seen as below. Benefit Sought a) To save costs and low prices b) Wants a sustainable lifestyle and cares for environment c) Wants to find unique/rare items and want to express themselves

POSITIONING
The company has an online classified ad application that provides quality service by offering various product categories to sell or buy used goods. In addition, the company also provides features for users to make transactions in the application. This is in line with the characteristics of the target market who are more familiar with technology so that if given features that can be directly implemented in one application, it will be more attractive to users of online classified ad services. The company also tries to give the impression that the brand it wants to convey to its users is one application for all the needs of buying and selling used goods easily, safely and more modernly so that the position of the company's products can be seen in Figure 3.1.

PESTLE
Based on the analysis that has been done using the PESTLE framework by looking at the conditions and the impact on the company, the following conclusions are obtained in Table 3.5. Table 3.

Type Condition Classification (based on impact for business)
Political Factors Indonesia is entering a period of legislative and presidential elections in 2024. President Joko Widodo can no longer compete in the upcoming presidential election because he has served two terms. Labor laws, trade restrictions, political stability and more could change with a new leader.

Economic Factors
The World Bank predicts a global economic recession in 2023. President Jokowi said that this uncertainty is very worrying for many countries, including Indonesia. Indonesia also

Social Factors
The development of technology and information makes it easier for the Indonesian people to obtain information about products and necessities. Annual spend on online search advertising in Indonesia is $828.6 million, 62.6% of which are purchases of products/services online and 13.7% of which are purchases of used goods through online shops.

Opportunities Technological Factors
Artificial intelligence makes work easier by having mechanisms running on machine learning to applications and improving product quality and optimizing platform operations. AI detects suspicious activity, flags fraud, helps make transactions faster, and assesses threats to devices.

Legal Factors
Article 1320 of the Criminal Code states that a sale and purchase agreement is an agreement between the parties to make a lawful agreement in buying and selling online. According to Law No. 8 of 1999 concerning consumer protection, states that consumers have several rights, namely the right to choose goods, the right to receive compensation, and the right to act of discrimination.

Neutral Environmental Factors
Carbon dioxide has a negative impact on global warming. This comes from the use of electricity, such as surfing in cyberspace which requires 365 kWh of electricity and online searches of 3.4 Wh per search. Overall, the IT industry contributes 2% of total greenhouse gas emissions due to the huge consumption of electricity.

VALUE PROPOSITION MAP
Based on the results of the analysis that has been carried out, the relationship between the value proposition and the customer profile of users as sellers in online classified advertising services can be seen in Figure 3.2.  Based on the results of the analysis that has been carried out, the relationship between the value proposition and the customer profile of users as buyers of online classified advertising services can be seen in Figure 3.3.

Figure 3.3 Value Proposition Map For Buyers
After identifying a value proposition map, companies can focus on creating products and services in online classified ads with several features and benefits from using AI. This feature can be developed by the company's programming team to accelerate feature development and get more loyal users of the application. To provide additional value to sellers or buyers, companies can provide a secure payment system through an application so that if there are users who want to make transactions quickly and safely, they can go through the system provided by the application. The development of mobile applications and desktop web applications needs to be built to provide convenience for users in creating online classified ads. For better transaction security, users can buy coins in the application which can be purchased using the rupiah currency, these coins will be used as a transaction authorization tool, but to maximize the customer experience, and also as a marketing tool to provide discounts and attractive offers to other application users.

BUSINESS SOLUTION
The solution proposed by researchers for companies is the application of the BMC (business model canvas) framework. This is because a sustainable business model will describe the relationship between the company's value proposition and business components. After analyzing the previous sub-chapters, the authors use the business model canvas to describe the relationship between the company's value proposition and other business components to ensure competitive advantage. The new business model described by researchers can be seen in Figure 3

IMPLEMENTATION PLAN
The company's current platform is a website based product. The proposed implementation plan includes stages such as product development, completion, sales and marketing, and gathering user feedback. Later, based on the user feedback, the company can then make improvements to the website and potentially develop a mobile application. The implementation plan details can be found in Figure 3.5.  Companies have the chance to foster original products and attract a larger user base. This opportunity arises from various factors: advancements in AI technology that facilitate fraud detection and prevention, a downturn in the economy that motivates individuals to generate additional income by selling secondhand items, and the growing preference for online shopping, which creates prospects for online classified advertising platforms. Furthermore, the company possesses a competitive edge by incorporating AI integration features and in app payment systems that are currently lacking in rival products. Additionally, the company's current focus is on enhancing product development and refining business models, thus it has yet to capitalize on the advantage it holds in sales and marketing activities.
Companies have the opportunity to focus on urban areas across Indonesia, targeting individuals aged 18-35, including students and workers earning between IDR 3,000,000 and IDR 12,500,000. By leveraging advancements in AI technology, companies can establish themselves as an online advertising platform that utilizes AI for fraud detection and provides convenient payment systems to users. Marketing and recruitment efforts make use of communication channels such as websites, social media, and mobile applications. The company also nurtures customer relationships through reward programs, FAQs, and live chat, ensuring customer satisfaction. This strategy enables companies to effectively reach their target markets and generate revenue through various means, including charges for creating online classified ads, additional fees for enhanced features and highlighting, and advertising fees from other brands looking to promote on their website or application. This revenue generation allows the company to cover operational costs.
Companies have the option to execute the suggested business model by establishing payment functionalities, shipping initiatives, and customer support services. Subsequently, the company can introduce a website and initiate sales and marketing endeavors. Users have the opportunity to share their feedback regarding the website's usability, which is then assessed for the purpose of enhancing the service. Additionally, companies can develop mobile applications that are compatible with Android and iOS devices, expanding their reach. Ultimately, companies can enhance customer experience and satisfaction, continuously assess and fulfill the requirements of online classifieds users.

RECOMMENDATION
This study proposes a competitive business model canvas for online classified startups, emphasizing the integration of AI technology and in-app payment systems. Future research should explore the implementation of this model in different market contexts. Also, The company can move forward with implementing the business model canvas and implementation plans created by researchers to bring them into reality. To thoroughly analyze customers, particularly those using the company's products, it is crucial to gather feedback and gain deeper insights into their preferences and constraints. This approach empowers the company to maintain its competitive edge and successfully contend with rival companies' offerings.