1) Customer Segments

An organization serves one or several Customer Segments

For whom are we creating value?

Madinety residents, el rehab residents, tagammo offices

Who are our most important customers?

Madinety residents

Niche Market (High priced paintings with good quality, one time painting)

2) Value Propositions

It seeks to solve customer problems and satisfy customer needs with value propositions.

What value do we deliver to the customer?

Which one of our customer’s problems are we helping

to solve? Which customer needs are we satisfying?

What bundles of products and services are we oΩering

to each Customer Segment?

What my business is offering to customers is

Uniqueness as no painting is made twice, there will be one edition of any painting

Convinence as Madinety is yet to have décor shops that sell paintings

Accessibility because delievery is easy. I myself will meet with the client in the nearest place possible to
them

and deliever the paintings myself.

Customization; in a later phase of the business, the clients will be able to order customized paintings
(the size, the design (1 block, 2 or 3 blocks of canvas) and their choice of colors)

Newness

Performance

Customization

Getting the job done

Brand/status

Price

Cost reduction

Risk reduction

Accessibility

Convenience / usability

3) Channels

Value propositions are delivered to customers through communication, distribution, and sales channels

The Channels Building Block describes how a company communicates with and reaches its Customer
Segments to deliver a Value Proposition

Communication, distribution, and sales Channels comprise a company's interface with customers.
Channels are customer touch points that play an important role in the customer experience.

Channels serve several functions, including:

Phases

• How do we raise awareness among customers about our company’s products and services?

Through Madinety facebook groups (from the resident union to the selling groups) and through my
facebook page

• How do we help customers evaluate our company’s Value Proposition?

I will ask them to take a picture of the painting they bought after it is hung and give a review on it
through social media

• How do we allow customers to purchase specific products and services?

Through phone and personal messages in facebook messenger

• How do we deliver our Value Proposition to customers?

By keeping the brand unique, preserving the niche status, and providing the best quality of service in
sales and delievery.

• How do we provide post-purchase customer support?

Through which Channels do our Customer Segments 27

want to be reached? How are we reaching them now?

How are our Channels integrated? Which ones work best?

Which ones are most cost-efficient? How are we

integrating them with customer routines?

Channel types:

Sales force

Web sales

Own stores

Partner stores

Whole saler

4) Customer Relationships

Customer relationships are established and maintained with each Customer Segment.

The Customer Relationships Building Block describes the types of relationships a company establishes
with specifi c Customer Segments

A company should clarify the type of relationship it wants to establish with each Customer Segment.
Relationships can range from personal to automated. Customer relationships may be

driven by the following motivations:

• Customer acquisition

• Customer retention

• Boosting sales (upselling)

What type of relationship does each of our Customer Segments expect us to establish and maintain with
them?

Which ones have we established? How costly are they?

How are they integrated with the rest of our business model?

Personal assistance
Dedicated personal assistance

Self-service

Automated service

Communities

Co-creation

5) Revenue Streams

Revenue streams result from value propositions successfully offered to customers.

For what value are our customers really willing to pay?

For what do they currently pay? How are they currently

paying? How would they prefer to pay? How much does

each Revenue Stream contribute to overall revenues?

Types

Asset sale

Usage fee

Subscritption fee

Renting / lending / leasing

Licensing

Brokerage fee

Advertising

Fixed Pricing

List price

Product feature dependent

Customer segment dependent

Volume dependent

Dynamic Pricing
Negotiation (bargaining)

Yield management

Real-time-Market

6) Key Resources

Key resources are the assets required to offer and deliver the previously described elements . . .

Canvas

Paint

Palette tools

Brushes

Cash

Paint fixer

What Key Resources do our Value Propositions require?

Our Distribution Channels? Customer Relationships?

Revenue Streams?

Key resources can be physical, financial, intellectual, or human.

Key resources can be owned or leased by the company or acquired

from key partners.

7) Key Activities

. . . by performing a number of Key Activities.

the most important actions a company must take to operate

successfully. Like Key Resources, they are required to create and

oΩer a Value Proposition, reach markets, maintain Customer

Relationships, and earn revenues. And like Key Resources, Key

Activities diΩer depending on business model type. For software

maker Microsoft, Key Activities include software development.

management. For consultancy McKinsey, Key Activities include

problem solving.

Production

Problem solving

Platform

Marketing & Sales

Selling Paintings

Financing

Buying supplies

8) Key Partnerships

Some activities are outsourced and some resources are acquired outside the enterprise

Companies forge partnerships for many reasons, and partnerships

are becoming a cornerstone of many business models. Companies

create alliances to optimize their business models, reduce risk, or

acquire resources.

We can distinguish between four diΩerent 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

Samir & Ali (Buyer-supplier), Al Maghyrgi (Buyer-Supplier)

Eid (Makes customized canvas)

Who are our Key Partners? Who are our key suppliers?

Which Key Resources are we acquiring from partners?

Optimization and economy of scale

Reduction of risk and uncertainty

Acquisition of particular resources and activities

9) Cost Structure

The business model elements result in the cost structure.

What are the most important costs inherent in our business

model? Which Key Resources are most expensive? Which

Key Activities are most expensive?

Is your business more: Cost driven? Value Driven

Fixed costs

Variable costs

Economies of scale

Economies of scope

Value driven

Fixed costs; marketing & Sales, & delievry

Variable costs; Painting supplies and canvas

It it a small firm, so high average cost until breakeven points are increased during sales

Using cheaper canvas and custom made sizes, as well as purchase paint in bulks