BM Components:: 1. Core Strategy The core strategy defines how a company differentiates itself in the market and competes effectively. It includes: * Business objectives: What the company aims to achieve (e.g., increasing market share, innovation, customer satisfaction). * Competitive advantage: How the business stands out (e.g., offering lower prices, superior quality, or unique services). * Value delivery: How the company ensures that customers receive consistent value over ATs For example, Apple's core strategy focuses on premium quality, innovation, and brand loyalty, UT EM ACL ees ari ceN a CelZel sey gel tT te] Coa ETC Ure icecer ls] (a2. Strategic Resources Strategic resources are the essential assets that allow a company to function and compete. These resources include: * Human resources: Employees, management, and leadership that drive the business. ¢ Financial resources: Capital investments, funding, and cash flow management. * Intellectual property: Trademarks, patents, and proprietary technology. * Physical resources: Factories, office spaces, supply chains, and distribution networks. For example, Tesla’s strategic resources include patented battery technology, a strong brand, and a skilled workforce specializing in electric vehicle production.3. Partnership Network A company rarely operates alone—it relies on external partners, suppliers, and distributors to enhance efficiency. Key aspects include: * Suppliers: Companies that provide raw materials or products (e.g., Apple's suppliers for iPhone components). * Distributors: Businesses that help sell and deliver products to customers (e.g., Amazon for online retailers). * Strategic alliances: Partnerships with other companies to strengthen business operations (e.g., Nike collaborating with retailers to sell its products worldwide). For instance, Starbucks collaborates with coffee bean farmers, logistics providers, and retail locations to maintain a steady partnership ee4. Customer Interface The customer interface defines how a business interacts with and serves its customers. It includes: * Customer segmentation: Identifying and categorizing customers based on preferences, needs, and demographics. * Marketing and branding: How a company positions itself in the market to attract CUE Ken T ES * Customer service and experience: Ensuring smooth interactions, loyalty programs, and effective support. aC Muha CU eR Cm UC Ly ACM Ueto CL and multiple subscription plans to enhance its Ue ce)nals MeLThe Nine Buildina Riocks of the Business Model Canvas 1. Customer Segments Businesses serve different types of customers. These can be: ¢ Mass market: A broad, general audience (e.g., Coca-Cola). * Niche market: A specialized customer base with unique needs (e.g., Rolex). * Segmented market: Different groups with slightly different needs (e.g., airline economy vs. business class passengers). * B2B (Business-to-Business): Serving other businesses (e.g., Intel selling chips to laptop manufacturers).2. Value Proposition The value proposition explains the unique benefits a company offers to its customers. It answers: Why should a customer choose this business over competitors? Examples include: * Convenience: Amazon Prime's fast delivery. * Luxury & Prestige: Louis Vuitton’s brand image. * Cost Savings: Walmart's low prices. * Customization: Nike’s personalized sneakers.3. Channels BU EMccicem oN eve McC ec Nar UCL products or services to customers. Common channels include: * Online stores (Amazon, Shopify). * Brick-and-mortar retail (physical stores like VALE) * Third-party distributors (wholesale partnerships). * Social media (Instagram shops, TikTok marketplace).4. Customer Relationships This block defines how a business engages with its customers to maintain loyalty and satisfaction. Types of relationships include: * Personalized services (consultations, VIP i oyoe) a) ORY era eM (Nad pace eee recommendations). * Community engagement (social media interactions, influencer marketing). ya c\ CBs y Ucct- Ty A business must generate revenue to be sustainable. Common revenue models include: * Direct product sales (Apple selling iPhones). * Subscription services (Netflix, Spotify). * Advertising revenue (YouTube ads, Google Ads). * Licensing fees (Microsoft licensing its software).(Meyer cok) The essential assets a business needs to function, including: * Human resources (employees, developers, managers). * Technological resources (proprietary software, Al tools). Oe aN Fer Mattel get Soe OTC HOU IS rMme CINTA fleets). ye CB Nea h(a These are the crucial actions a company must perform to succeed. They include: * Manufacturing (Tesla producing electric cars). * Marketing & Sales (Nike's global campaigns). * Customer service (Amazon's responsive support team).PCM aT oy Companies often collaborate with other businesses to improve operations. Examples include: * Joint ventures (Starbucks and PepsiCo partnering for bottled coffee). * Supplier relationships (Toyota sourcing car parts from global suppliers). * Technology partnerships (Apple and oy crt 9. Cost Structure Understanding costs is crucial for profitability. Costs can be: * Fixed costs (rent, employee salaries, insurance). * Variable costs (raw materials, marketing campaigns). * Operational costs (production expenses, logistics).Aspect LCT EET ry Components | Model Cy eS Sta er Et Model Ug tones) Conceptual Practical tool framework for designing for and refining understandin | business gabusiness. | models. Scope 1 Yaoye (el Detailed strategic operational CoN TAIN Si dae lea vig oe Level of High-level Specific, Detail insights. actionable components. Number of mele Nine building Patty elements. blocks. eet ag Helps define | Helps plan aren ar) how a business is TUSTIN -Sct) about. Oyo eeeWhy is a Business Model Important? 1/4 . Gives Clear Direction - It helps business owners understand how their company will run and grow. . Attracts Investors — A strong business model shows investors how the business will make money, making them more likely Rca . Helps in Decision-Making — It guides businesses in choosing the right strategies for success. . Ensures Profitability - A good model ensures the business earns more than it Eel tale (om . Improves Efficiency — It helps in managing costs, marketing, and customer service effectively.We need a business model because it acts as a roadmap for success. Without it, a business might struggle to make money, attract customers, or grow. Here's why it's essential: SPOT ye Moelle (el selling, who your customers are, and how WML eoiie rae 2. Attracting Investors — Investors need to see a clear plan before funding a business. 3. Competitive Advantage — A strong model helps businesses stand out in the market. 4. Sustainability — It ensures a business can survive and grow over time. 5. Efficiency & Growth - A well-structured model helps in managing costs and increasing profits.