Business Models

Question 1

Customer Segments

Answer 1

The customer segments can be defined as the target market. The customer segment defines the groups of people / organisations an enterprise aims to reach and serve.

Company may group customers in different segments based on their needs and companies need to decide which customer segment to serve and which to ignore.

Question 2

Value Propositions

Answer 2

The value proposition describes the products and services offered by companies which create value for customers / stakeholders. The Value proposition solves customers problems or satisfies their needs. The value proposition is why customers turn to one company over the other.

Question 3

Channels

Answer 3

Channels can be defined as the how the business communicates with its customer. Companies may use traditional or digital channels to get across to their customers.

Channels raise awareness, helps customers choose their products / services and creates value for the customer.

Question 4

Customer Relationships

Answer 4

This is the relationship a company has with its customers and target market. Customer relationships can be assisting people be it virtually or personal assistance.

Question 5

Revenue Streams

Answer 5

Revenue streams represent the cash a company generates from each customer segment.

Question 6

Key Resources

Answer 6

These are important assets that allow the business to function and keep up with demand on a day to day basis.

Question 7

Key Activities

Answer 7

This refers to how a company does things to make things work.

Question 8

Key Partnerships

Answer 8

Companies create partnerships for many reasons such as to reduce risks or acquire resources

Question 9

Cost Structures

Answer 9

This is all the costs that has incurred to operate the business model.