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Business Model Canvas: Maria Saeed Khattak

The document discusses the Business Model Canvas tool. It describes the 9 building blocks that make up the Business Model Canvas: customer segments, key partners, value proposition, key activities, channels, customer relationships, revenue streams, key resources, and cost structure. Each block is defined using examples from Canva, a graphic design platform company. The Business Model Canvas provides a one-page visual overview of the key factors needed for a business, including the 9 building blocks. It is a useful tool for startups to think through the elements of their business idea.

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282 views19 pages

Business Model Canvas: Maria Saeed Khattak

The document discusses the Business Model Canvas tool. It describes the 9 building blocks that make up the Business Model Canvas: customer segments, key partners, value proposition, key activities, channels, customer relationships, revenue streams, key resources, and cost structure. Each block is defined using examples from Canva, a graphic design platform company. The Business Model Canvas provides a one-page visual overview of the key factors needed for a business, including the 9 building blocks. It is a useful tool for startups to think through the elements of their business idea.

Uploaded by

Whatsapp Stories
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Business Model

Canvas
MARIA SAEED KHATTAK
Business model: Definition

• A business model describes how an idea will create


value.
What is Business Model Canvas?

Business Model Canvas is a tool to help you


visualize a one-page summary used to describe the
high-level strategic details in order to startup a
business.
Nine building blocks of a business organization
Joyce & Paquin (2016) have commented that the business model canvas describes the nine
building blocks of a business organization.
The nine building blocks of the business model canvas are-
1. customer segment
2. key partners
3. value proposition
4. key activities
5. channel
6. revenue streams,
7. cost structure
8. key resources
9. and customer relationship
Key activities Customer Customer
Key partners What will your relationships segments
business spend the What types of Who are your paying
What external most time doing? interactions will your customers?
partnerships customers expect to
Product development? Do you have any
should you invest
Sales? Other? Value have with you?
non-paying
in?
proposition customers?
Key resources Channels
• Mentors? How large is this
How will customers
• Lawyers? What will it cost for: group?
find out about you?
• Distributors?
• Suppliers? Manufacturing? Do you have
Intellectual property? How will you get
multiple customer
Human resources? products to them?
segments?

Cost structure Revenue streams


• How might you make $ from this?
How much time and money will be required • What value, other than money, are you
to do this? hoping to create?
Customer Segment:
Customer segment of a particular business organization involves the
individual people or a group of people, which the organization has targeted
to reach and sell their product and services.
Example:
Marketers
Bloggers
Graphic Designers
Small Business
 Key Partners: 
Key partners of a business organization involve the commercial entities
that work mutually with the organization to increase the profit of both
the organizations.
Saebi & Foss (2015) have stated that key partners can play important
role in increasing the effectiveness of a business organization.
Value Proposition
Value proposition involves the entire products and service of a particular
business organization that is offered to the customers to satisfy their demands.
Kavadias, Ladas & Loch (2016) have lectured that the value proposition of a
business organization contributes to its uniqueness and creates a distinct image
in the customers' mind.
The value proposition can be quantitative and qualitative depending on the
price and efficiency of the products and services and the customer experience.
Example:
photography editing facilities
Professional printing quality
Customized design
Templates of common activities
Key Activities
The key activity in the business model canvas involves the major activities
that are performed by a business organization to execute the value
proposition of that organization.
Examples:
Providing a collaborative design platform over the internet
Providing a simple to use design platform to the customers for creating
professional quality designs
Software Development (Application Development)
Software Systems Integration
Graphic Design (Web & Print Design & Development)
IT Consulting
Channels: 
In order to deliver the value proposition to the targeted customers,
every business organization requires some channels.

Examples:
Blogging
Web applications
Web Site
Mobile applications
Events & Seminars
App
Cold Calling
Social media notifications
Warm Calling
Twitter
Partnerships
Facebook
Revenue streams
Revenue streams are the ways in which a business organization earns
the profit from the different customer segments.
Examples:
The revenue stream of Canva is the selling of the graphical assets of the
company which are utilized in customers' designing.
In the year 2017, the revenue of Canva has tripled and has reached
$23.49 million (Blackcitrus.com.au, 2018).
Advertising
Subscription fee
Cost Structure: 
As per Ovans (2015), the cost structure of a business organization can be cost-
driven or value driven, depending on the priority of the business organization.
Examples:
The cost structure of Canva is value-driven, as the priority of the organization is
to improve the quality of the product and services to attain better satisfaction of
the customers.
Research and development
Complaint management
*The focus of value-driven cost structures is to create more value in the product
itself, not necessarily producing the product at the lowest possible cost.
 *Cost-driven business models minimize costs wherever possible, often through a
low price
Customer Relationship: 
Building a loyal relationship with the customers is probably the most
crucial factor for the long-term survival of any business organization.
Antikainen & Valkokari (2016) have commented that a loyal customer
base can create a distinct band name of a particular company in the
competitive business market.
Examples:
Canva maintains its relationship with the customers through their
website and web application. Moreover, they have a 24/7 support center
for providing assistance to the customers.
Mass customization
Discovery (Pinterest)
Key Resources: 
Key resources are required by a business organization to create value and to
improve the experience of the target customers.
The customer base is the assets of every business organization, as the customers
contribute to the long-term sustainability of an organization.
Key resources can involve human resources, monetary funds, physical resources
or intellectual resources.
Example:
The key resources of Canva are the web applications and mobile applications, as
without these the organization cannot offer their services and products to the
customers.
Developers
Users
Why is Business Model Canvas good for my
business?

Business Model Canvas gives you a clear overview of these key factors
for your startup business:
Key Partners, Key Activities, Key Resources, Value Propositions,
Customer Relationships, Channels, Customer Segments, Cost Structure
and Revenue Streams.
Example: Google
Foursquare City Guide,
commonly known as
Foursquare, is a local
search-and-discovery
mobile app developed
by Foursquare Labs
Inc. The app provides
personalized
recommendations of
places to go near a
user's current location
based on users' previous
browsing history and
check-in history.
Tesla business canvas
Business Model Canvas
Assignment
Your task is to build a Business Model Canvas (BMC) for your business
idea . Build a BMC for a new business.  If you’ve ever thought about
starting your own business, now is your chance to see how well you’ve
thought through all of the elements we’ve discussed.
Grading will be based on the level of depth, detail, and thought put into
each section of the canvas as well as the degree to which you applied class
concepts to the analysis. 
The BMC template may be downloaded here. 
https://online.visual-paradigm.com/app/diagrams/#diagram:proj=0&type
=BusinessModelCanvas&gallery=/repository/17616169-7c05-4fd6-9747-5
a5be357d488.xml&name=Airbnb

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