Description
Task summary: Dear freelancer, you are to write a 300 words discussion post analyzing the components of the business model canvasFull order description: Dear Freelancer, please complete the taskThink about the information you will need to create your business model using the nine segments of the business model canvas (BMC). Also keep in mind that for your elevator pitch in Milestone One, you will need to include at least a few of these segments. Then, in your initial discussion post, address the following: Which of the segments do you think you can complete immediately? Which segments do you think might need more work? Are there any factors or segments you had not considered so far? Which ones? Explain.Attached:- sources (milestone 1, book the business model should be based on)
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Module One – Tesla Blog
1
Assignment 1-2 Tesla Blog
Southern New Hampshire University
BUS-400
01/08/2024
Module One – Tesla Blog
2
A Vision for Tesla’s Future
As a newly appointed Chief Innovation Officer of Tesla, it is entirely my responsibility to
make sure that I bring unique innovations in terms of the products offered and ensure we remain
competitive. In this blog post, we will trace the path to introducing a new and unique product or
service in North America. Being well known for its electric cars and energy solutions powered
by renewable resources, Tesla is geared to take an unprecedented step that will redefine the
world of automobiles in general and define how this sector gets harnessed with power from
nature (Barrie, 2023).
Company Overview
Elon Musk, the creative entrepreneur behind Tesla, has become a pioneer in electric
vehicles, energy storage, and solar technology. The fact that the company ensures it produces
sustainable products, a desirable move, especially when individuals are going green, is in line
(Barrie, 2023). The 10K report of Tesla gathered from MarketLine, Yahoo Finance and the
investor relations page allows for a thorough understanding of the current condition affecting its
operations in North America.
Value Proposition
Tesla’s core business is electric vehicles, energy products, and services that prioritize
sustainability. It differentiates itself from traditional gasoline–powered cars and energy sources
by providing consumers with an eco-friendly alternative, consequently making it the company’s
value proposition (Matthews et al., 2020). Tesla’s unwavering focus on innovation and
technological superiority has built an impressive client base that appreciates environmentally
friendly solutions without sacrificing performance.
Module One – Tesla Blog
3
Profitability
Tesla’s financial strength is strong, characterized by relatively steady profitability in the
recent past. The organization’s profitability demonstrates its capability to compete in a market
characterized by fierce competition (Matthews et al., 2020). This financial solvency gives a solid
base to invest in innovative routes and increase product range.
SWOT Analysis Strengths
A SWOT analysis of Tesla uncovers critical strengths that can be strategically harnessed
to launch a new product or service. Tesla’s core competencies include a powerful brand image,
technical innovativeness, advanced charging network infrastructure, and an inspiring team of
leaders (Matthews et al., 2020). The following elements put Tesla in an excellent position to
respond adequately to difficulties and exploit their opportunities.
Product or Service Singularity
Tesla should develop a commodity or offering that is not easily imitated and appeals to
consumer requirements if it wants to stay ahead of its rivals in the market. Based on Tesla’s
strengths, a differentiated offer might involve combining AI and machine learning functionalities
in its automobiles (Huang et al., 2023). Envision Tesla cars becoming AI-driven companions that
learn from the user behaviors to optimize the driving experience, make it more secure, and
optimize energy efficiency. This integration would form a unique and unrivaled proposition in
the automotive market.
Module One – Tesla Blog
4
New Product or Service Projections
Implementing AI-enabled functionalities in Tesla cars has excellent potential to enhance
profitability. As a result, Tesla can appeal to tech enthusiasts and those interested in a more tiedtogether driving experience by providing individualized and adjustable car use (Barrie, 2023).
This may lead to higher sales of vehicles, recurring revenue from software updates, and the
opportunity to partner with tech companies that want to collaborate on AI solutions.
Besides, the data gathered through AI interactions can be used to improve autonomous
driving features, reinforcing Tesla’s status as a top player in the space of self-driving vehicles.
This strategic decision aligns with the global direction towards an expansive trend of AI
integration in different industries. It makes Tesla not only an innovator when it comes to electric
vehicles but also an intelligent transportation general (Barrie, 2023).
Conclusion
In conclusion, Tesla’s adoption of AI-driven cars is a path toward consolidating its
leadership in the market and ensuring ongoing profitability. The proposed innovation meshes
perfectly with Tesla’s current strengths, financial stability, and commitment to high technology.
As the Chief Innovation Officer, Tesla is poised to take a significant step forward into an age of
intelligent and personal transportation, thus setting the standard in the automotive industry.
Moving from one point to another in the face of innovation is a roller coaster at once exciting
and challenging, but with Tesla, borders are ceaseless.
Module One – Tesla Blog
5
References
Barrie, G. (2023). An analysis of Tesla’s market competitiveness using the SWOT-PEST analysis
https://cyberleninka.ru/article/n/an-analysis-of-tesla-s-market-competitiveness-using-theswot-pest-analysis-tesla-transnational-ecosystem-laboratory-and-actions.
Huang, J., Jiang, X., & Wang, Y. (2023). Research on Tesla’s Pricing Strategy in China Based
on Bertrand Game and SWOT Analysis. BCP Business & Management, 38, 1373–1379.
https://doi.org/10.54691/bcpbm.v38i.3899.
Matthews, T., Hirve, M., Pan, Y., Dang, D., Rawar, E., & Daim, T. U. (2020). Tesla Energy.
Science, Technology and Innovation Studies, 1(1), 233–249. https://doi.org/10.1007/9783-030-58301-9_15.
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Marc Faltheim
Nicolas De Santis
Antoine Perruchoud
Bernd Nurnberger
Patrick van Abbema
Terje Sand
Leandro Jesus
Karen Davis
Tim Turmelle
Anders Sundelin
Renata Phillippi
Martin Kaczynski
Frank
Bala Vaddi
Andrew Jenkins
Dariush Ghatan
Marcus Ambrosch
Jens Hoffmann
Steve Thomson
Eduardo M Morgado
Rafal Dudkowski
António Lucena de Faria
Knut Petter Nor
Ventenat Vincent
Peter Eckrich
Shridhar Lolla
Jens Larsson
David Sibbet
Mihail Krikunov
Edwin Kruis
Roberto Ortelli
Shana Ferrigan Bourcier
Jeffrey Murphy
Lonnie Sanders III
Arnold Wytenburg
David Hughes
Paul Ferguson
Frontier Service Design,
LLC
Peter Noteboom
Ricardo Dorado
John Smith
Rod
Eddie
Jeffrey Huang
Terrance Moore
nse_55
Leif-Arne Bakker
Edler Herbert
Björn Kijl
Chris Finlay
Philippe Rousselot
Rob Schokker
Wouter Verwer
Jan Schmiedgen
Ugo Merkli
Jelle
Dave Gray
Rick le Roy
Ravila White
David G Luna Arellano
Joyce Hostyn
Thorwald Westmaas
Jason Theodor
Sandra Pickering
Trond M Fflòvstegaard
Jeaninne Horowitz Gassol
Lukas Feuerstein
Nathalie Magniez
Giorgio Pauletto
Martijn Pater
Gerardo Pagalday Eraña
Haider Raza
Ajay Ailawadhi
Adriana Ieraci
Daniël Giesen
Erik Dejonghe
Tom Winstanley
Heiner P. Kaufmann
Edwin Lee Ming Jin
Stephan Linnenbank
Liliana
Jose Fernando Quintana
Reinhard Prügl
Brian Moore
Gabi
Marko Seppänen
Erwin Fielt
Olivier Glassey
Francisco Conde
Fernández
Valérie Chanal
Anne McCrossan
Larsen
Fred Collopy
Jana Görs
Patrick Foran
Edward Osborn
Greger Hagström
Alberto Saavedra
Remco de Kramer
Lillian Thompson
Howard Brown
Emil Ansarov
Frank Elbers
Horacio Alvaro Viana
Markus Schroll
Hylke Zeijlstra
Cheenu Srinivasan
Cyril Durand
Jamil Aslam
Oliver Buecken
John Wesner Price
Axel Friese
Gudmundur Kristjansson
Rita Shor
Jesus Villar
Espen FigenschouSkotterud
James Clark
Jose Alfonso Lopez
Eric Schreurs
Donielle Buie
Adilson Chicória
Asanka Warusevitane
Jacob Ravn
Hampus Jakobsson
Adriaan Kik
Julián Domínguez Laperal
Marco W J Derksen
Dr. Karsten Willrodt
Patrick Feiner
Dave Cutherell
Di Prisco
Darlene Goetzman
Mohan Nadarajah
Fabrice Delaye
Sunil Malhotra
Jasper Bouwsma
Ouke Arts
Alexander Troitzsch
Brett Patching
Clifford Thompson
Jorgen Dahlberg
Christoph Mühlethaler
Ernest Buise
Alfonso Mireles
Richard Zandink
Fraunhofer IAO
Tor Rolfsen Grønsund
David M. Weiss
Kim Peiter Jørgensen
Stephanie Diamond
Stefan Olsson
Anders Stølan
Edward Koops
Prasert Thawatchokethawee
Pablo Azar
Melissa Withers
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
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Edwin Beumer
Dax Denneboom
Mohammed Mushtaq
Gaurav Bhalla
Silvia Adelhelm
Heather McGowan
Phil Sang Yim
Noel Barry
Vishwanath
Edavayyanamath
Rob Manson
Rafael Figueiredo
Jeroen Mulder
Emilio De Giacomo
Franco Gasperoni
Michael Weiss
Francisco Andrade
Arturo Herrera Sapunar
Vincent de Jong
Kees Groeneveld
Henk Bohlander
Sushil Chatterji
Tim Parsey
Georg E. A. Stampfl
Markus Kreutzer
Iwan Schneider
Michael Schuster
Ingrid Beck
Antti Äkräs
EHJ Peet
Ronald Poulton
Ralf Weidenhammer
Craig Rispin
Nella van Heuven
Ravi Sodhi
Dick Rempt
Rolf Mehnert
Luis Stabile
Enterprise Consulting
Aline Frankfort
Manuel Toscano
John Sutherland
Remo Knops
Juan Marquez
Chris Hopf
Marc Faeh
Urquhart Wood
Lise Tormod
Curtis L. Sippel
Abdul Razak Manaf
George B. Steltman
Karl Burrow
Mark McKeever
Linda Bryant
Jeroen Hinfelaar
Dan Keldsen
Damien
Roger A. Shepherd
Morten Povlsen
Lars Zahl
Elin Mørch Langlo
Xuemei Tian
Harry Verwayen
Riccardo Bonazzi
André Johansen
Colin Bush
Alexander Korbee
J Bartels
Steven Ritchey
Clark Golestani
Leslie Cohen
Amanda Smith
Benjamin De Pauw
Andre Macieira
Wiebe de Jager
Raym Crow
Mark Evans DM
Susan Schaper
Are you an entrepreneurial spirit?
yes _______ no _______
Are you constantly thinking about how to
create value and build new businesses, or how
to improve or transform your organization?
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
yes _______ no _______
Are you trying to find innovative
ways of doing business to replace
old, outdated ones?
yes _______ no _______
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
If you’ve answered
“yes” to any of these
questions, welcome
to our group!
You’re holding a handbook for visionaries, game
changers, and challengers striving to defy outmoded
business models and design tomorrow’s enterprises.
It’s a book for the business model generation.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Today countless innovative business models
are emerging. Entirely new industries are
forming as old ones crumble. Upstarts are
challenging the old guard, some of whom are
struggling feverishly to reinvent themselves.
How do you imagine your organization’s
business model might look two, five, or ten
years from now? Will you be among the
dominant players? Will you face competitors
brandishing formidable new business models?
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
This book will give you deep insight into the nature of business models.
But the scale and speed at which innovative business models are
It describes traditional and bleeding-edge models and their dynamics,
transforming industry landscapes today is unprecedented. For entre-
innovation techniques, how to position your model within an intensely
preneurs, executives, consultants, and academics, it is high time to
competitive landscape, and how to lead the redesign of your own organi-
understand the impact of this extraordinary evolution. Now is the time
zation’s business model.
to understand and to methodically address the challenge of business
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Certainly you’ve noticed that this is not the typical strategy or man-
model innovation.
agement book. We designed it to convey the essentials of what you need
Ultimately, business model innovation is about creating value, for
to know, quickly, simply, and in a visual format. Examples are presented
companies, customers, and society. It is about replacing outdated models.
pictorially and the content is complemented with exercises and workshop
With its iPod digital media player and iTunes.com online store, Apple
scenarios you can use immediately. Rather than writing a conventional
created an innovative new business model that transformed the company
book about business model innovation, we’ve tried to design a practical
into the dominant force in online music. Skype brought us dirt-cheap
guide for visionaries, game changers, and challengers eager to design or
global calling rates and free Skype-to-Skype calls with an innovative
reinvent business models. We’ve also worked hard to create a beautiful
business model built on so-called peer-to-peer technology. It is now the
book to enhance the pleasure of your “consumption.” We hope you enjoy
world’s largest carrier of international voice traffic. Zipcar frees city dwell-
using it as much as we’ve enjoyed creating it.
ers from automobile ownership by offering hourly or daily on-demand
An online community complements this book (and was integral to
car rentals under a fee-based membership system. It’s a business model
its creation, as you will discover later). Since business model innovation
response to emerging user needs and pressing environmental concerns.
is a rapidly evolving field, you may want to go beyond the essentials in
Grameen Bank is helping alleviate poverty through an innovative business
Business Model Generation and discover new tools online. Please consider
model that popularized microlending to the poor.
joining our worldwide community of business practitioners and research-
But how can we systematically invent, design, and implement
ers who have co-created this book. On the Hub you can participate in
these powerful new business models? How can we question, challenge,
discussions about business models, learn from others’ insights, and try
and transform old, outmoded ones? How can we turn visionary ideas
out new tools provided by the authors. Visit the Business Model Hub at
into game-changing business models that challenge the establishment—or
www.BusinessModelGeneration.com/hub.
rejuvenate it if we ourselves are the incumbents? Business Model Generation
Business model innovation is hardly new. When the founders of Diners
aims to give you the answers.
Club introduced the credit card in 1950, they were practicing business
Since practicing is better than preaching, we adopted a new model
model innovation. The same goes for Xerox, when it introduced photo-
for writing this book. Four hundred and seventy members of the Business
copier leasing and the per-copy payment system in 1959. In fact, we might
Model Innovation Hub contributed cases, examples, and critical com-
trace business model innovation all the way back to the fifteenth century,
ments to the manuscript—and we took their feedback to heart. Read more
when Johannes Gutenberg sought applications for the mechanical printing
about our experience in the final chapter of Business Model Generation.
device he had invented.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Seven Faces of
Business Model
Innovation
The Senior Executive
The Intrapreneur
The Entrepreneur
Jean-Pierre Cuoni,
Dagfinn Myhre,
Mariëlle Sijgers,
Chairman / EFG International
Head of R&I Business Models / Telenor
Entrepreneur / CDEF Holding BV
Focus: Establish a new business model
Focus: Help exploit the latest techno-
Focus: Address unsatisfied customer
in an old industry
logical developments with the right
needs and build new business models
Jean-Pierre Cuoni is chairman of
business models
around them
EFG International, a private bank
Dagfinn leads a business model unit
Marielle Sijgers is a full-fledged
with what may be the industry’s most
at Telenor, one of the world’s ten larg-
entrepreneur. Together with her
innovative business model. With
est mobile telephone operators. The
business partner, Ronald van den
EFG he is profoundly transforming
telecom sector demands continuous
Hoff, she’s shaking up the meeting,
the traditional relationships between
innovation, and Dagfinn’s initiatives
congress, and hospitality industry
bank, clients, and client relationship
help Telenor identify and understand
with innovative business models.
managers. Envisioning, crafting, and
sustainable models that exploit the
Led by unsatisfied customer needs,
executing an innovative business
potential of the latest technological
the pair has invented new concepts
model in a conservative industry with
developments. Through deep analysis
such as Seats2meet.com, which allows
established players is an art, and
of key industry trends, and by develop-
on-the-fly booking of meetings in
one that has placed EFG International
ing and using leading-edge analytical
untraditional locations. Together,
among the fastest growing banks
tools, Dagfinn’s team explores new
Sijgers and van den Hoff constantly
in its sector.
business concepts and opportunities.
play with new business model ideas
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
and launch the most promising
concepts as new ventures.
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
The Investor
The Consultant
The Designer
The Conscientious Entrepreneur
Gert Steens, President & Investment
Bas van Oosterhout, Senior
Trish Papadakos,
Iqbal Quadir, Social Entrepreneur /
Analyst / Oblonski BV
Consultant / Capgemini Consulting
Sole Proprietor / The Institute of You
Founder of Grameen Phone
Focus: Invest in companies with the
Focus: Help clients question their
Focus: Find the right business model
Focus: Bring about positive social and
most competitive business models
business models, and envision and
to launch an innovative product
economic change through innovative
Gert makes a living by identifying the
build new ones
Trish is a talented young designer
business models
best business models. Investing in the
Bas is part of Capgemini’s Business
who is particularly skilled at grasp-
Iqbal is constantly on the lookout
wrong company with the wrong model
Innovation Team. Together with
ing an idea’s essence and weaving it
for innovative business models with
could cost his clients millions of euros
his clients, he is passionate about
into client communications. Currently
the potential for profound social
and him his reputation. Understanding
boosting performance and renewing
she’s working on one of her own ideas,
impact. His transformative model
new and innovative business models
competitiveness through innovation.
a service that helps people who are
brought telephone service to over
has become a crucial part of his work.
Business Model Innovation is now a
transitioning between careers. After
100 million Bangladeshis, utilizing
He goes far beyond the usual financial
core component of his work because
weeks of in-depth research, she’s now
Grameen Bank’s microcredit network.
analytics and compares business
of its high relevance to client projects.
tackling the design. Trish knows she’ll
He is now searching for a new model
models to spot strategic differences
His aim is to inspire and assist clients
have to figure out the right business
for bringing affordable electricity to the
that may impart a competitive edge.
with new business models, from
model to bring her service to market.
poor. As the head of MIT’s Legatum
Gert is constantly seeking business
ideation to implementation. To achieve
She understands the client-facing
Center, he promotes technological
model innovations.
this, Bas draws on his understanding
part—that’s what she works on daily
empowerment through innovative
of the most powerful business models,
as a designer. But, since she lacks for-
businesses as a path to economic and
regardless of industry.
mal business education, she needs the
social development.
vocabulary and tools to take on the
big picture.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Design
Table of Contents
Patterns
The book is divided into five sections: 1 The Business Model Canvas, a tool for describing, analyzing,
and designing business models, 2 Business Model
Canvas
Patterns, based on concepts from leading business
thinkers, 3 Techniques to help you design business
models, 4 Re-interpreting strategy through the
business model lens, and 5 A generic process to
help you design innovative business models, tying
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
together all the concepts, techniques, and tools in
Business Model Generation. }The last section offers
an outlook on five business model topics for future
exploration.
Afterword
Finally, the afterword provides a peek
into “the making of” Business Model Generation.
Outlook
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Process
Strategy
1
14
Canvas
Definition of a Business
Model
2
56
Patterns
Unbundling Business
Models
3
Design
126 Customer Insights
4
Strategy
200 Business Model
5
244 Business Model
Environment
Design Process
134 Ideation
16
44
The 9 Building Blocks
The Business Model
Canvas
66
76
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
88
The Long Tail
212 Evaluating Business
146 Visual Thinking
Models
160 Prototyping
226 Business Model
Multi-Sided Platforms
Process
}
Outlook
262 Outlook
FREE as a Business Model
170 Storytelling
Perspective on Blue
Ocean Strategy
180 Scenarios
232 Managing Multiple
108 Open Business Models
Business Models
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
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Afterword
274 Where did this book
come from?
276 References
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Can
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
nvas
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
The Business
Model Canvas
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
A shared language for describing, visualizing,
assessing, and changing business models
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Definition of a
Business Model
16
The 9 Building Blocks
44
The Business Model
Canvas Template
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
14
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
14
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Def_Business Model
A business model describes
the rationale of how an
organization creates, delivers,
and captures value
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
15
The starting point for any good discussion, meeting,
This concept can become a shared language that
or workshop on business model innovation should
allows you to easily describe and manipulate business
be a shared understanding of what a business model
models to create new strategic alternatives. Without
actually is. We need a business model concept that
such a shared language it is diΩicult to systematically
everybody understands: one that facilitates descrip-
challenge assumptions about one’s business model
tion and discussion. We need to start from the same
and innovate successfully.
point and talk about the same thing. The challenge is
that the concept must be simple, relevant, and intui-
We believe a business model can best be described
tively understandable, while not oversimplifying the
through nine basic building blocks that show the
complexities of how enterprises function.
logic of how a company intends to make money. The
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
nine blocks cover the four main areas of a business:
In the following pages we oΩer a concept that allows
customers, oΩer, infrastructure, and financial viability.
you to describe and think through the business model
The business model is like a blueprint for a strategy
of your organization, your competitors, or any other
to be implemented through organizational structures,
enterprise. This concept has been applied and tested
processes, and systems.
around the world and is already used in organizations
such as IBM, Ericsson, Deloitte, the Public Works and
Government Services of Canada, and many more.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
[[
The 9 Building Blocks
CS
1 Customer
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Segments
An organization serves
one or several Customer
Segments.
VP
CH
2 Value
Cr
3 Channels
4 Customer
Value propositions
Relationships
are delivered to customers Customer relationships
It seeks to solve customer
through communication,
problems and satisfy
are established and
distribution, and sales
customer needs with
maintained with each
Channels.
value propositions.
Customer Segment.
Propositions
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
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17
r$
5 Revenue
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Streams
Revenue streams result
from value propositions
successfully oΩered to
customers.
Kr
KA
KP
C$
6 Key
7 Key
8 Key
9 Cost
Resources
Key resources are the
assets required to oΩer
and deliver the previously
described elements . . .
Activities
. . . by performing a number of Key Activities.
Partnerships
Some activities are
outsourced and some
resources are acquired
outside the enterprise.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
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Structure
The business model
elements result in the
cost structure.
18
KA
Key Activities
KP
Key Partners
Kr
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Key Resources
C$
Cost Structure
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
19
Cr
Customer Relationships
CS
Customer Segments
VP
Value Propositions
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
CH
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
Channels
r$
Revenue Streams
CS
1 Customer Segments
The Customer Segments Building Block defines
the diΩerent groups of people or organizations an
enterprise aims to reach and serve
Customer groups represent separate segments if:
• Their needs require and justify a distinct oΩer
• They are reached through diΩerent Distribution Channels
• They require diΩerent types of relationships
• They have substantially diΩerent profitabilities
• They are willing to pay for diΩerent aspects of the oΩer
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
Customers comprise the heart of any business model. Without
(profitable) customers, no company can survive for long. In order
to better satisfy customers, a company may group them into
distinct segments with common needs, common behaviors,
or other attributes. A business model may define one or several
large or small Customer Segments. An organization must make
a conscious decision about which segments to serve and which
segments to ignore. Once this decision is made, a business model
can be carefully designed around a strong understanding of
specific customer needs.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation : A handbook for visionaries, game changers, and challengers. John Wiley & Sons, Incorporated.
Created from snhu-ebooks on 2024-01-10 19:43:02.
For whom are we creating value?
Who are our most important customers?
21
Diversified
An organization with a diversified customer business
model serves two unrelated Customer Segments
Copyright © 2010. John Wiley & Sons, Incorporated. All rights reserved.
with very diΩerent needs and problems. For example,
There are diΩerent types of Customer Segments.
in 2006 Amazon.com decided to diversify its retail
Here are some examples:
business by selling “cloud computing” services: online
Segmented
storage space and on-demand server usage. Thus
Mass market
Some business models distinguish between market
it started catering to a totally diΩerent Customer
Business models focused on mass markets don’t
segments with slightly diΩerent needs and problems.
Segment—Web companies—with a totally diΩerent
distinguish between diΩerent Customer Segments.
The retail arm of a bank like Credit Suisse, for example,
Value Proposition. The strategic rationale behind this
The Value Propositions, Distribution Channels, and
may distinguish between a large group of customers,
diversification can be found in Amazon.com’s powerful
Customer Relationships all focus on one large group
each possessing assets of up to U.S. $100,000, and
IT infrastructure, which can be shared by its retail sales
of customers with broadly similar needs and problems.
a smaller group of aΩluent clients, each of whose net
operations and the new cloud computing service unit.
This type of business model is often found in the
worth exceeds U.S. $500,000. Both segments have
consumer electronics sector.
similar but varying needs and problems. This has
Multi-sided platforms (or multi-sided markets)
implications for the other building blocks of Credit
Some organizations serve two or more interdepen-
Niche market
Suisse’s business model, such as the Value Proposi-
dent Customer Segments. A credit card company, for
Business models targeting niche markets cater to
tion, Distribution Channels, Customer Relationships,
example, needs a large base of credit card holders
specific, specialized Customer Segments. The Value
and Revenue streams. Consider Micro Precision
and a large base of merchants who accept those credit
Propositions, Distribution Channels, and Customer
Systems, which specializes in providing outsourced
cards. Similarly, an enterprise oΩering a free news-
Relationships are all tailored to the specific require-
micromechanical design and manufacturing solutions.
paper needs a large reader base to attract advertisers.
ments of a niche market. Such business models
It serves three diΩerent Customer Segments—the
On the other hand, it also needs advertisers to finance
are often found in supplier-buyer relationships. For
watch industry, the medical industry, and the industrial
production and distribution. Both segments are
example, many car part manufacturers depend heavily
automation sector—and oΩers each slightly diΩerent
required to make the business model work (
