Business Model Canvas Overview

Study Notes

A business model describes how an organization creates, delivers, and captures value.
It includes a framework for understanding various components of a business's value creation process.

Developed by Alexander Osterwalder and Yves Pigneur, the Business Model Canvas consists of nine building blocks.
The canvas aids in visualizing and structuring the business model for clarity and efficiency.

Organizations can serve one or multiple customer segments.
Important questions include:
- For whom are we creating value?
- Who are our most important customers?
- Customer base types include mass market, niche market, segmented, diversified, and multi-sided platform models.

Value propositions aim to solve customer problems and meet their needs.
Key considerations include:
- What value do we deliver?
- Which customer problems are we addressing?
- The offering could include bundles of products and services tailored for specific segments.
Characteristics of value propositions may comprise:
- Newness, performance, customization, design, brand/status, price, cost reduction, risk reduction, accessibility, convenience/usability.

Value propositions reach customers through various distribution and sales channels.
Essential channel-related inquiries involve:
- Through which channels do customers want to be reached?
- How are current channels performing?
- Which channels are most cost-efficient?
- How are channels meshed with customer routines for optimal effectiveness?

Organizations establish and maintain specific relationships with each customer segment.
The nature of customer relationships can significantly influence customer loyalty and satisfaction.