Business Model Canvas : A Coherent Framework

A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.

“Competitive Advantage introduces the concept of the value chain, a general Framework for thinking strategically about the activities involved in any business and assessing their relative cost and role in differentiation”. Michael Porter, (1985).

After thorough analysis of the business model canvas for Alpha Troop 1/150th Armored Reconnaissance Squadron it is apparent that the organization leans heavily on its established partnerships. The greatest number of partners for the unit are sister units who perform the same type of mission as its own entity. Other key partnerships are higher headquarters who develop plans and provide, the who, what, when and where for operations to take place. Sister units are essential partnerships because they can provide additional support for the successful accomplishment of missions and operations. Some key partnerships are outsourced while a great deal of them will be attained from other outside entities (Osterwalder, 2010).

The business model canvas is an excellent choice for businesses to use when starting a business. It was created by Alex Osterwalder and Yves Pigneur. The Business Model Canvas, is a strategic management and entrepreneurial tool and it allows you to describe, design, challenge, invent, and pivot your business model (The Business Model Canvas, 2015).

Value creation means increase the value of products, service and even business to meet the customers’ needs and requirements so that they can get competitive advantages. (Business Fundas, 2012) As we analyzed, fast food industry’s threat of new entrants is low and the availability of substitutes is high. It’s a fare market which the buyers have strong powers.

The categories of value creation on which BestValue currently relies come from the “Communicating Value in the Sales Message” section of the chapter and include product quality, quality of the buyer-seller relationship (trust), service quality, salesperson professionalism, corporate reputation, application of technology, and price. BestValue Computers is providing quality products in an atmosphere of trust with a sales representative who has developed high-quality relationships with her clients. In addition, BestValue provides a variety of technology products with local service at reasonable prices. Finally, the success of Leroy’s business is an indicator that BestValue has developed a highly respected reputation among his existing and

The categories of value creation on which Best Value currently relies most on are product quality, quality of the buyer seller relationship, service quality, salesperson professionalism, corporate reputation, application of technology, and price. BestValue has demonstrated, by their customer reviews, that the quality of their products exceeds their customer’s expectations. The company has also demonstrated that they have been able to develop relationships with their customers that are based on trust. This trust has been demonstrated by BestValue salesperson who explains to their customers what to expect from their products and services. Customers who have trust in a company become loyal long time customers (Blocker, 2012). The salesperson has a level of professionalism and integrity that provides value to the company. Because of the company’s quality products and their ability to leverage the professionalism of their sales team the company has built a reputation of a company that not only exceeds expectations but is a company with integrity and can be trusted. In addition to BestValue’s quality and professionalism they also offer a wide range of technology products and services at reasonable price ranges.

Striving to be accurate and honest with customers in quoting estimated cost and estimated time for repairing completion

Figure 3 represents Alex Osterwalder’s business canvas model and is separated into a total of nine segments (Strategyser, 2015). Below are the different segments of the model in relation to the crowdsourcing platform, Indiegogo.

By definition a business model is the way in which a company generates revenue and makes a profit from company operations.For this to happen a business needs to create a plan to attract the publc. Two ways to attract the public are to have higher qualities products than the competitors and to create a vision that empowers the public to come back for their services.

Business model design and innovation is a multi-faceted topic that goes beyond the products or services a company sells. It requires the firm to analyze the desires of the customers, required and available resources, and to subsequently develop a business model in line with these findings. The ultimate objective of this exercise to create growth and obtain greater profitability. Business model innovation is derived from one of the four strategic objectives outline the textbook by Osterwalder and Piqneur. These four objectives include identifying and solving a need which the market has not resolved, offering a new product or service that customers did not have access to before, to improve options available to the existing

A business model is a company’s perception and conception of how the set strategies that a company pursues

As mentioned in the article, a good business model tells a good story. Effectively communicating an organization’s business model and strategy to all the members (employees) of the organization can enhance the company’s performance. By understanding where each individual stands and how they contribute to the value chain,

Firstly, Value Maps was the most important research study and we ordered it consistently every quarter. It reported our firm’s position in terms of prices (the vertical axis) and benefits (the horizontal axis), which is a combination of end-customer price, perceived product quality, perceived service quality, and perceived availability compared to all firms. Based on these reports we were able to decide the tradeoff

However, this paper chooses this definition as theoretical perspective of analysis for this paper subject to the following modifications: A business model is overall framework and philosophy by which a company (intends or) creates value in the market place through enhancement of its own combination of raw or in-put materials to create products (tangible and intangible including services), product packaging and systematic distribution in order to generate some or the best possible profit.