A business model can best be described through nine basic building blocks that show the logic of how a company intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure and finance viability. The business model is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems.
1. Customer Segments (CS): an organization serves one or more customers segments.
2. Value Propositions (VP): It seeks to solve customer problems and satisfy customer needs with value propositions.
3. Channels (CH): VP are delivered to customers through communication, distribution, and sales channels.
4. Customer Relationships (CR): CR are established and maintained with each CS.
5. Revenue Streams (RS): RS result from VP successfully offered to customers.
6. Key Resources (KR): KR are the assets required to offer and deliver the previously described elements.
7. Key Activities (KA): ... by performing a number of KA.
8. Key Partnerships (KP): Some activities are outsourced and some resources are acquired outside the enterprise.
9. Cost Structure (CS): The business model elements result in the cost structure.
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