Business Model Canvas.
The Business Model Canvas is a strategic management tool that helps
businesses design, innovate, and iterate their business models. It consists
of nine building blocks:
1. Key Partners
2. Key Activities
3. Key Resources
4. Value Proposition
5. Customer Relationships
6. Customer Segments
7. Channels
8. Revenue Streams
9. Cost Structure
Let’s break down each building block:
1. *Key Partners*: Who are the key partners that help your business
operate? Examples include suppliers, distributors, and strategic
partners.
2. *Key Activities*: What are the key activities that your business
needs to perform to deliver its value proposition? Examples include
production, problem-solving, and platform/network management.
3. *Key Resources*: What are the key resources that your business
needs to operate? Examples include physical resources, intellectual
property, human resources, and financial resources.
4. *Value Proposition*: What value does your business offer to its
customers? Examples include newness, performance, customization,
and cost reduction.
5. *Customer Relationships*: What type of relationships does your
business have with its customers? Examples include personal
assistance, self-service, and automated services.
6. *Customer Segments*: Who are the target customers of your
business? Examples include mass market, niche market, and multi-
sided platform.
7. *Channels*: Through which channels does your business reach its
customers? Examples include social media, advertising, and sales
teams.
8. *Revenue Streams*: How does your business generate revenue?
Examples include asset sales, usage fees, subscription fees, and
advertising.
9. *Cost Structure*: What are the main costs associated with your
business? Examples include fixed costs, variable costs, economies of
scale, and economies of scope.
By understanding these building blocks, businesses can design and
innovate their business models to better serve their customers and stay
competitive in the market.