A concept that allows you to describe and think

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“…a concept that allows you to describe and think through the business model of your organization , your competitors, or any other enterprise.” A shared language, without which “it is difficult to systematically challenge assumptions about one’s business model and innovate successfully.”
Customer segments: defines the different groups of people or organizations an enterprise aims to reach and serve. Customer groups represent separate segments if: Their needs require and justify a distinct offer They are reached through different Distribution Channels They require different types of relationships They have substantially different profit abilities They are willing to pay for different aspects of the offer Value propositions: describes the bundle of products and services that create value for a specific Customer Segment. Elements from the non-exhaustive list can contribute to value creation: Newness Performance Customization Getting the job done Design Brand/Status Price Cost reduction Risk Reduction Accessibility Convenience/Usability Channels: describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition. Serves several functions, including: Raising awareness among customers about a company’s products and services Helping customers evaluate a company’s Value Proposition Delivering a Value Proposition to customers Providing post-purchase customer support Customer relationships: describes the types of relationships a company establishes with specific Customer Segments. Driven by the following motivations: Customer acquisitions Customer retention Boosting sales (upselling) Revenue streams: represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings). A business model can involve two different types of Revenue Streams: 1. Transaction revenues resulting from one-time customer payments 2. Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support Key resources: describes the most important assets required to make a business model work. Resources can be categorized as: Physical Intellectual Human Financial
Key activities: Block describes the most important things a company must do to make its business model work. Activities can be categorized as: Production Problem solving Platform/Network Key partnerships: describes the network of suppliers and partners that make the business model work. Types of partnerships Strategic alliances between non-competitors Coopetition: strategic partnerships between competitors Joint ventures to develop new businesses Buyer-supplier relationships to assure reliable supplies Cost structure: describes all costs incurred to operate a business model. Two

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