What is a Business Model Canvas-CUSTOMER RELATIONSHIPS

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What is a Business Model Canvas-CHANNELS

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What is a Business Model Canvas Values Propositions

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What is a Business Model Canvas-Key Resources

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What is a Business Model Canvas-Key Activites-Key Partnerships-Cost Structures

BLOCK N°7: Key Activites

Like the Key Resources, the Key Activites is the most important actions the company must take to operate successfully.

Also, they are important to allow the company to:

• Create ValuePropositions,
• Reach Customers Segments,
• Maintain Relationships,
• Earn Revenues.

There are three categories of Key Activites:

• Production: Design, making, delivering,
• Problem-solving,
• Network/Platform: Developing and improving platforms. Exp: Improving website.

Example: iPod Key Activites:

The Key Activites related to the iPod business is:

Hardware design

Marketing

BLOCK N°8: Key Partnerships

 

The Key Partnerships block is the list of the most important suppliers and providers.

We can find four types of partnerships:

1. Strategic: Between non-competitors,
2. Coopetition: Between competitors,
3. Joint ventures: Development of new business,
4. Buyer-Supplier.

The motivation behind partnerships are:

• Economy of scale,
• Risk reduction,
• Acquisition of particular resources.

Example: iPod Key Partnerships:

• Record companies.
• Hardware manufacturer.

BLOCK N°9: Cost Structure

 

This block groups all the important costs incurred to operate a Business Model.

We can distinguish between two kinds of Cost Structure. The first one focuses on reducing the costs wherever possible (Cost-driven). The second one is the Value-driven, where companies are less concerned with costs, instead, they focus on offering  high-value products.

The characteristic of Cost Structures are as follow:

• Fixed costs,
• Variable costs,
• Economies of scale,
• Economies of scope.

Example: iPod Cost structure:

• People,
• Manufacturing,
• Marketing&Sales

iPod Business Moel

Finally

Compiling all of this data and blocks you find a unique Business Model, highly effective to compete in the market even the product is not an innovation.

Below you can find the link to download the Business Model canvas:

Business Model Canavas

For more information read the Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers Book

What is a Business Model Canvas-Key Resources

BLOCK N°6: Key Resources

 

 

 

The Key Resources building block groups the most important elements needed to make the Business Model work.

The Key Resources is the building block pivot who allows the company to:

• Create ValuePropositions,
• Reach Customers Segments,
• Maintain Relationships,
• Earn Revenues.

Depending on the type of the Business Model, different resources are needed such as:

1. Physical: like factory, vehicles, machines.
2. Intellectual: such as knowledge, licenses, brands.
3. Human.
4. Financial.

Also, companies can own, or lease resources from partners.

Example: iPod Key Resources

 

The resources used by Apple to make the iPod Business Model work are:

• Physical: iTunes software
• Intellectual:  Apple brand, iPod design.
• Human: Performant people.
• Financial.

BLOCK N°7: Key Activities