The document presents the Business Model Canvas, a framework designed to help entrepreneurs describe, visualize, and innovate business models using nine essential building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. Each block highlights critical elements such as types of customers and relationships, revenue generation, required resources, key activities needed for success, and the partnership network essential for operations. This tool is aimed at fostering creativity and strategic thinking for businesses looking to create value and improve their models.

1. Written by :
Alexander
Osterwalder &
Yves Pigneur
Presented by : Manpreet

2. Are you an entrepreneurial spirit?
Are you constantly thinking about how to
create value and build new businesses, or how
to improve or transform your organization?
Are you trying to find innovative ways of doing
business to replace old, outdated ones?

4. Canvas

5. The Business Model Canvas :
A shared language for
Describing, visualizing, assessing, and Changing
business models
•
The 9 Building Blocks
•
The Business model canvas template

6. The 9 Building Blocks

7. 1. Customer Segments
The Customer Segments Building Block defines the different groups of
people or organizations an enterprise aims to reach and serve.
There are different types of Customer Segments.
1. Mass Market
2. Niche Market
3. Segmented bank
4. Diversified amazon
5. Multi sided credit card, news paper

8. A Customer

9. 2. Value Propositions
The Value Propositions Building Block describes the bundle of products
and services that create value for a specific Customer Segment

10. Customer segment & Value proposition

11. The Value Proposition is an aggregation, or bundle, of
benefits that a company offers customers.
Values may be
Quantitative (e.g. price, speed of service)
Qualitative (e.g. design, customer experience).
Following elements can contribute to customer value creation
1. Newness
2. Performance
3. Customization
4. Getting the job done
5. Design
6. Brand/Status
7. Price
8. Cost reduction
9. Risk reduction, 10. Risk reduction, 11. Accessibility, 12. Convenience

12. 3. Channels
The Channels Building Block describes how a company
communicates with and reaches its Customer Segments to
deliver a Value Proposition
Channels serve several functions, including:
• Raising awareness
• Evaluate a company's Value Proposition
• To purchase specific products and services
• Delivering a Value Proposition to customers
• Post-purchase support

14. Channels have five distinct phases. Each channel can cover
some or all of these phases
Channel types
Channel Phases
Direct
Own
Sales Force
1. Awareness
Web sales
Indirect
Partners
Own Stores
2. Evaluation
3. Purchase
4. Delivery
Partner
stores
Wholesaler
5. After sales

15. 4. Customer Relationships
The Customer Relationships Building Block describes the types of
relationships a company establishes with specific Customer Segments
Customer relationships may be driven by the following motivations:
• Customer acquisition
• Customer retention
• Boosting sales (up selling)
Types of Customer Relationships
1.
2.
3.
4.
5.
6.
Personal Assistance
Dedicated personal assistance
Self service
Automated Services
Communities
Co-creation
(banks)
(Online shopping)
(Customization online)
(forums)
(Duster clinic)

17. 5. Revenue Streams
The Revenue Streams Building Block represents the cash a company
generates from each Customer Segment (costs must be subtracted from
revenues to create earnings)
Two types of Revenue Stream
1. One time customer payments
2. Recurring Payments

19. Ways to generate Revenue
1.
2.
3.
4.
5.
6.
7.
Asset sale
Usage fee
Subscription fees
Lending/renting/leasing
Licensing
Brokerage fees
Advertising
Pricing Mechanisms
1. Fixed Menu pricing
2. Dynamic pricing
(hotel room)
(gym, nokia music)
(zipcar)
(Movies)
(Real estate)
(pepsi IPL)

20. 6.Key Resources
The Key Resources Building Block describes the most important assets
required to make a business model work
Depend upon the type of business model
Key resources can be categorized as follows:
1. Physical
(buildings)
2. Intellectual
(brands, Patents)
3. Human
4. Financial : to carry on operations

22. Key Activities
The Key Activities Building Block describes the most important things a
company must do to make its business model work
Key activities can be categorized as follows:
1. Production
2. Problem solving
3. Platform/network

24. 8.Key Partnerships
The Key Partnerships Building Block describes the network of suppliers
and partners that make the business model work
We can distinguish between four different types of partnerships:
1. Strategic alliances between non-competitors
2. Coopetition : strategic partnerships between competitors
3. Joint ventures to develop new businesses
4. Buyer-supplier relationships to assure reliable supplies
Three Motivations for creating Partnerships
1. Optimization & economy of scale
(lays, coke)
2. Reduction of risk & uncertainty
(Blue ray)
3. Acquisition of particular resources
(micromax)
& activities

26. 9. Cost Structure
The Cost Structure describes all costs incurred to operate a business
model
Two types of cost structures
1. Cost driven
2. Value driven
Characteristics of cost structure
1. Fixed costs
2. Variable costs
3. Economies of scale
4. Economies of scope

29. Brain
logic
Left
Emotion
Right

30. Efficiency
Value

36. Suppliers
Competitors
Coca cola
Joint venture