Business models are a great driver for innovation and allowing businesses to come up with new ways to offer value in a sustainable way. The era of just buying low and selling high is over. Ok, it’s not over; if I go to my supermarket I will still be able to just buy my milk, bread and eggs at a marginal higher prices then the cost of the supermarket to sell it and behind this is a basic value/supply chain going back to the producer of the products. However more and more businesses are looking at a more complex structure of value proposition and revenue.
Business models allow us to rethink the way we present value to a customer and find new ways to be rewarded for offering this value.
The Business Model Canvas, as described in the book Business Model Generation, is a great way to start playing with the building blocks that make up a business model. 9 building blocks in this case:
- Customer Segments
- Value Propositions
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partnerships
- Cost Structure
I highly recommend you to get this book if you are interested in business strategy and new opportunities to build a sustainable business. Check out the first 72 pages of the book. And join the Business Model Hub to share ideas.