Building Business Models: Business Model Canvas and Value Proposition

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12 Questions

What is the primary purpose of the Business Model Canvas?

To visualize a company's key business components

Which of the following is NOT one of the key components of the Business Model Canvas?

Key Processes

According to the sample bakery business model, which of the following is NOT a key activity performed by the bakery?

Inventory management

What is the primary value proposition of the bakery, as described in the sample business model?

Freshly baked breads specialized in organic bread

Which of the following is NOT a customer segment identified in the sample bakery business model?

Corporate event planners

What is the primary revenue stream for the bakery, as described in the sample business model?

Volume sales from supermarkets

What is the Business Model Canvas?

A visual tool for describing a company's business model

How many building blocks or segments does the Business Model Canvas consist of?


Who is credited with describing the Business Model Canvas in their book "Business Model Ontology"?

Alexander Osterwalder

What is the purpose of the Business Model Canvas?

To describe and design a company's business model

What is true about the building blocks or segments of the Business Model Canvas?

They are interconnected, and changing one may require revising others

How many major parts does the Business Model Canvas have, according to the text?


Study Notes

The Business Model Canvas

  • The Business Model Canvas consists of nine segments or building blocks that describe a business model.
  • It is divided into four major parts:
    • Key Partners: Identify important suppliers in the supply chain and the resources received from them.
    • Key Activities: Identify specific activities necessary to deliver the value proposition.
    • Key Resources: Identify specific resources necessary to deliver the value propositions.

Key Propositions

  • Identify the core value of the company that provides to customers.
  • Define how the company offers something different that satisfies customer demands.

Customer Relationships

  • Define the type of relationship with customers.
  • Identify how the company interacts with customers and how this differs amongst customer segments.

Customer Segments

  • Identify who the value proposition targets.
  • Describe the target customers, their needs, and what they enjoy.
  • Define the customer market, whether it's a small niche community or a small market.

Case Study: Business Model Canvas of a Bakery

  • Key Partners: Vendors of organic raw materials, packaging suppliers, and retail partners.
  • Key Activities: Introduce organically produced bread, marketing and sales, branding, and consumer education.
  • Key Resources: Team cooperation, raw materials, social media, and retail network.
  • Key Propositions: Freshly baked breads specialized in organic bread, breads of consistent quality, and competitive pricing.
  • Customer Relationships: Hotline number, email for questions, Facebook page, and loyalty discounts.
  • Channels: Social media, rider delivery, on-call delivery, direct selling using own website, physical store, and events planning.
  • Customer Segments: Health-conscious individuals, neighborhood communities, neighborhood supermarkets, and neighborhood bakeries.
  • Cost Structure: Equipment and facilities, staff salaries, and product ingredients.
  • Revenue Streams: Volume sales from supermarkets, sales to customers, and sales to events.

Join us for a presentation on building business models. Learn about the Business Model Canvas, Key Partners, Activities, Resources, and the Value Proposition. Explore Customer Segments, Relationships, Channels, and the Value Proposition Canvas.

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