What is BUSINESS MODEL CANVAS?

Have you ever wondered what makes one company different from another? What makes you choose Brand Y’s product when Brand Z is selling the same thing? It’s the Business Model of the company. Just like DNA is unique to every individual, a business model is unique to every company.

So what is Business Model Canvas?

It is a Strategic management tool that allows entrepreneurs and business leaders to visually describe, design, and innovate their business models.

Developed by Alexander Osterwalder, the Business Model Canvas provides a clear and concise way to document and communicate a business model using a single-page template divided into nine key components. Where each component represents a critical aspect of the business.

Let’s take a brief look at each component with the help of A hypothetical online education platform.

1. Customer Segments can be — Students, Working professionals ,Corporations (for employee training)
2. Value Propositions: Accessible, affordable, high-quality courses, Certificates of completion ,Flexible learning schedules.
3. Channels: Website, Mobile app, Email newsletters
4. Customer Relationships: Online support, Community forums, Personalized course recommendations
5. Revenue Streams: Course fees, Subscription plans, Corporate training packages
6. Key Resources: Educational content, Technology platform, Teaching staff
7. Key Activities: Course creation, Platform maintenance, Marketing and sales
8. Key Partnerships: Universities and educational institutions, Content creators ,Technology providers.
9. Cost Structure: Content development costs, Technology infrastructure, Marketing expenses.

In the upcoming posts we will cover each component one by one in the most relevant, practical and interesting way possible.