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A business model describes the rationale of how an organization creates delivers and captures value in economic social cultural or other contexts.
Business model generation meaning. Business model canvas click on the template to edit it online why you need a business model canvas. Creating a business model is essential whether you are starting a new venture expanding into a new market or changing your go to market strategy. A business model is the conceptual structure supporting the viability of a business including its purpose its goals and its ongoing plans for achieving them.
The business model canvas was originally developed by alex osterwalder and yves pigneur and introduced in their book business model generation as a visual framework for planning developing and testing the business model s of an organization. A plan for the successful operation of a business identifying sources of revenue the target customer base products and details of financing. It answers fundamental questions about the problem you are going to solve how you will solve it and the growth opportunity within a given market.
It identifies the products or services the business plans to sell its identified target market and any anticipated. At its simplest a business model is a specification describing how an organization fulfills its purpose. A business model is a dynamic system and not a collection of independent parts.
A business model is defined as. Ultimately it distills the potential of a business down to its essence. Essentially it tells us how the key drivers of a business fit together.
The process of business model construction and modification is also called business model innovation and forms a part of business strategy. A business model is a framework for how a company will create value. Business model innovation is an iterative and potentially circular process.
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