Business Model Canvas

The Business Model Canvas from https://www.strategyzer.com/ is used to define all aspects of a company. It was developed for a startup with one product.

“The Business Model Canvas is great because it lets us write down all of our hypotheses, from opportunity to distribution, in one place. Using the Business Model Canvas alone, it takes some deep thought to find a great opportunity hypothesis. ”

Key partners

"Who are the people outside the company, from suppliers to contractors, who make the business model work? What key resources do we get from them and what key activities do they perform? Companies rarely do everything themselves, and working with partners lets you reduce risk and optimize your activities. There are generally three types of partnerships: alliances between non-competitors, strategic partnerships between competitors, and joint ventures to build something new.”

Key activities

"What are the tasks a company must do well to deliver on its value? For example, Apple owns a number of key activities: software development, supply-chain management, store management/distribution, and more. Samsung’s phone unit is focused more on supply-chain management and software development.”

Key resources

"What are the most important physical, financial, intellectual (patents, copyrights, etc.), or human resources the company needs to succeed? They can be owned or leased. For many companies making hardware, human and intellectual resources are key, whereas manufacturing is outsourced to an Asian partner.”

Value propositions

"What’s the benefit/value that a certain group of your products or services provides for a given persona? What customer pain points are you solving? The Value Proposition Canvas will dig into this more, too.”

Customer relationships

"What type of relationship, from personal to automated, do you want to establish with each persona? For example, a high-value customer might have a direct email for an account manager whereas the average customer might only have online support forums available. Also consider what each segment expects, what you have now, how costly each relationship is, and how you expect to maintain each relationship.”

Channels

"How does the company reach each persona to deliver the value, including marketing, communication, distribution, sales, and support? How are you reaching them now? What works best? How are the channels integrated, for example, are sales only via your website?”

Customer segments

"Who are the key personas the company/product will serve? These are the most important personas that you believe you’ll create the most value for, and they’re who you want to prioritize opportunities for. The Value Proposition Canvas will dive into this more.”

Cost structure

"Where do your costs come from? This breaks down into fixed costs (salaries, rents, utilities) and variable costs (equipment purchases). For many companies, human resources are the greatest expense because people are needed to do key activities so that the businesses can deliver your value to their personas.”

Revenue streams

"This represents the company’s incoming cash—revenue minus costs is the company’s earnings. A company might have multiple revenue streams, depending on its customer segments, and asking what value you deliver that each customer segment will pay for, what they currently pay, and how they’d prefer to pay—e.g., lower recurring fee vs. higher one-time fee—helps you determine how to monetize each segment. For example, some companies offer discounted “Home” editions of their products, which lack features that matter at work such as document collaboration that aren’t useful in an average household. The “Home” edition is one revenue stream and the regular version is another.”



Excerpts From: Josh Anon. “The Product Book.” Apple Books.