Business model canvas Flashcards
Name all the parts of the regular business model canvas?
- Customer segment
- Value proposition
- Channels
- Customer relationships
- Revenue structure
- Key resources
- Key activities
- Key partnership
- Cost structure
Additional: environmental costs/benefits and social costs
For 1. customer segment, explain
Define customer: The group interested in your product or service.
Segmentation: Dividing the market into smaller, specific groups.
Targeting: Selecting the groups to focus on.
Needs: The problem or desire your product solves.
Wants & Demand: What the customer values and is willing to buy.
- value proposition, what is this?
What do we offer the customer?
Innovation: new product or service, improvement of existing products or services, differentiate
Why should the customer be willing to buy our product?
- Channels, what is this?
How does the company reach customer?
- Direct to customer or using retailer
- Retailer/distributor/wholesaler
- Important to choose the right way, the total experience of the product is affected by the customer service:
bad service → bad product
- Customer relationship, what is this about?
How does the company interface with customers?
- Social Media Engagement:
Use platforms like Facebook, Instagram, and TikTok to engage customers directly through posts, responses, and interactive content. - Contests
Run contests (e.g., product design challenges) where the winner’s creation is featured in advertising, encouraging customer involvement and feedback. - Asking what customers think about the product etc
get feedback directly
- Revenue structure, explain what this is
How does the company achieve revenues? (pricing model)
- Netflix: Subscribe monthly to watch unlimited movies.
- PrimeMovie: Pay per movie you want to watch.
- FreeMinimum: Choose from different account types, with a basic free options
- Key resources, what is this?
Which are the strategic resources for the company?
- Physical resources: plants, machineries, technologies, selling points
- Intellectual: know-how, patents, brands
- Human: workforce
- Financial: investments etc.
- Circular economy can affect the know-how, the people getting greater knowledge, which is good for the company
- Key activities, explain what this is
Which are the strategic activities for the company?
- production and logistic
- problem solving
- platform or network development
If i am providing a service to the customer:
- key activities = customer service
- vs key resource = staff
Producing clothes with high price
key activities = design phase
vs key resource = designers
Consulting
- key resource = simulations software
- Key partnership, explain what this is
Why do companies need partners?
- Developing economic of scale
- Reducing risks from competition
- Having access to special resources or activities
- Diffusing the products more efficiently
- Achieving new customers, this can be made through:
- Collaboration with other companies is crucial for business growth.
- Co-design helps develop better products.
- Partnerships with limited suppliers ensure access to rare materials.
- Working with sellers provides customer insights (e.g., preferences, buying habits) for improved product design.
- Cost structure, explain what this is about
Which are the main costs for the company?
1. Fixed costs
- Variable costs:
- If i produce high quality clothes, the cost for the salary for the designer is important - Economies of scale:
Producing a lot of products in order to reduce the marginal cost - Economies of scope:
Producing different products or services in order to reduce the marginal cost
What are environmental costs?
Using resources like e.g. fossil fuels can lead to significant environmental impacts/damage, including air pollution and water contamination.
What are social costs?
Pollution and resource exploitation can harm communities, leading to social consequences
