The business model
What a business model is and the nine blocks of the Osterwalder and Pigneur canvas: customer segments, value proposition, channels, customer relationships, revenue, resources, activities, partners and costs.
- 26 cards
- 5 topics
- Free
The outline, topic by topic
Each topic is weighted the way the exam weighs it.
- Concepts
- Questions
- Sort and link
- Scenarios
- Understand
A few cards from the deck
Business model: what is it?
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A description of how a business creates value for its customers, delivers it to them and earns revenue from it.
It answers a question that the product alone does not settle: who pays, why, and how much it costs to serve them.
A carpooling platform takes 15% of every booked trip. In which canvas block does this commission go?
- Revenue streams
- Cost structure
- Value proposition
- Customer relationships
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Revenue streams
The commission is money the platform takes in: it is revenue. For drivers it is a cost, but the canvas describes the business, not its customers.
At the centre of the canvas sits the …; in the bottom band, on the left, the … structure, and on the right the revenue streams.
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At the centre of the canvas sits the value proposition; in the bottom band, on the left, the cost structure, and on the right the revenue streams.
The bottom band compares what the business costs (left) with what it earns (right): the gap is the profit.
Business model canvas: what is it?
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A nine-block table by Osterwalder and Pigneur that describes a business model on a single page.
On the right, the customer side (segments, relationships, channels, revenue); on the left, infrastructure (partners, activities, resources, costs); in the middle, the value proposition that links the two.
A free app has 200,000 users, of whom 0.5% are paying subscribers, and loses money every month. What should be done first?
- Buy advertising to win even more free users over time
- Double the subscription price for the current 1,000 subscribers
- Keep for subscribers part of what users come looking for
- Add a customer segment without changing the offer
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Keep for subscribers part of what users come looking for
Only 0.5% pay because the free version is enough: the flaw is in the value proposition. More free users raise costs without revenue, and doubling the price on 1,000 subscribers does not close the gap.