Marketing Model Of A Business Model

1830 Words Aug 29th, 2014 8 Pages
Introduction
When starting a business it is very important to identify the business model needed to increase the chances of its success. But first, the concept of business model should be understood. In general, the business model is clear about how a company generates revenues and where it is positioned in the value chain. Most definitions emphasize on how a firm makes money, some go beyond this and discuss creating value. The strength of a business model is that it tells a story about the business, focusing attention on how pieces of the business fit together, describing how the firm differentiates itself and deals with competition (Weill, et al., 2005).
The Business Model Canvas (BMC) pattern was created by Alexander Osterwalder under establish a logical relationship between each of the components of the organization and all the factors that influence whether or not success. For Osterwalder (2009), a business model describes the rationale of how an organization creates, delivers, and captures value.
The BMC is great for creating and designing business models in a simple, straightforward, organized tool, dynamic. Through a job template consists of nine blocks overall business proposal is displayed (Seumenicht, 2013). The Model is really clear and easy to use; it can help the founders of companies to understand different dimensions of a business.
The Model
The Canvas is conceptually divided into two halves. The first has to do with the profit the company generates for both,…

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