Module II·Article I·~2 min read
Business Model Canvas: Anatomy of a Business Model
Business Models and Value Proposition
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What Is a Business Model
A business model describes the logic of creating, delivering, and capturing value. It answers the questions: Who are your customers? What are you offering them? How do you deliver this offer? How do you make money?
A business model and strategy are different concepts. Strategy describes how to win in competition. A business model describes how the business is structured. You can have an excellent business model and a poor strategy (no differentiation), or a good strategy and a non-working business model.
The Nine Blocks of the Business Model Canvas
1. Customer Segments (CS) — for whom are you creating value? Mass market, niche, segmented, multi-sided (platform)?
2. Value Propositions (VP) — what value do you create for each segment? Novelty, performance, customization, design, brand, price, risk reduction, convenience.
3. Channels (CH) — how do you deliver the value proposition? Direct (own website, stores) vs partner (distributors, retailers).
4. Customer Relationships (CR) — personal assistance, self-service, automated services, communities, co-creation.
5. Revenue Streams (R$) — what do customers pay for and how? One-time sale, subscription, rental, licensing, advertising, brokerage.
6. Key Resources (KR) — physical, intellectual, human, financial.
7. Key Activities (KA) — production, problem-solving, platform/network.
8. Key Partners (KP) — strategic alliances, joint ventures, suppliers.
9. Cost Structure (C$) — what are the main costs? Cost-driven vs value-driven.
Business Model Analysis Using Airbnb as an Example
- CS: tourists seeking a unique experience at a reasonable price + property owners wanting to monetize their space
- VP: for tourists — unique accommodation cheaper than a hotel; for owners — additional income
- CH: mobile application, website
- CR: automated (booking), element of community (reviews)
- R$: commission from host (3%) + commission from guest (14%)
- KR: platform, algorithm, trust brand, data
- KA: platform management, marketing, fraud prevention
- KP: photographers, insurers, payment systems
- C$: platform development and maintenance, marketing
Practical Assignment
Build a Business Model Canvas for a real or invented business of your own. Fill in all 9 blocks. Then answer: (1) In which block is the main competitive advantage concentrated? (2) Which block is most vulnerable? (3) How can the business model be copied by competitors and how can it be protected?
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