In this session, we'll go through the business model canvas in depth to help you flesh out your ideas by mapping out your client groups and value propositions, the channels you'll use to reach them, and the connections you'll maintain with them.
3. ● The search to deﬁne what Business Model is goes back to 1994.
● Peter Drucker published his theory of businesses in an HBR article describing
what should a business do and don’t.
● In the middle of the 2002 dot com crisis, Joan Magretta built on Drucker’s
business deﬁnition to exclaim that business models are “at heart, stories. Stories
that explain how enterprises work. A good business model answers Peter
Drucker’s age-old questions: ‘Who is the customer? And what does the customer
● It can be described through 9 building blocks:
Customer Segments, Value Propositions, Channels, Customer Relationships,
Revenue Streams, Key Resources, Key Activities, Key Partnerships & Cost
4. You may call it a framework or just a set of points about key
areas of your business.
What is important to know is -
It describes how an organisation creates, delivers and
6. ● A Template having 9 blocks to see the business model of the company in just 1 page.
Business Model Canvas
7. ● A Template having 9 blocks to see the business model of the company in just 1 page.
Business Model Canvas
essential to the
The people and
take some of the
The processes and tasks
that must be completed in
order for our customers to
What value shall
you deliver to
How will they
interact with your
Who are your
machines, patents and
intangible assets that
are used every week.
Where will you ﬁnd
How much we spend, how frequently we spend it,
and whether it changes as sales go up and down.
The prices each type of customer typically pays, as
well as how frequently they come back.
9. Step 1: Customer Segments and Value Propositions
Customer is the kings and we do really believe that. We will try to answer hee who we are serving and what are we serving?
Step 2: Channels and Customer Relationships
Now that we have a clear picture of who we’re serving and how we’ll delight them, we get to design three things: how we acquire
them, how we keep them, and how we interact with them.
Step 3: Key Resources, Key Activities and Key Partners
These three boxes describe how the business will work “behind the scenes” – all of the operational components that make the
Value Propositions a reality.
We want to list all of the vital ingredients, important processes and invaluable allies that enable our business to exist.
Step 4: Cost Structure and Revenue Streams
The bottom line of the canvas represents the bottom line of your business:
Money in, money out, hopefully some money left over.
We want to understand the ways in which money moves through the business.
That means understanding the quantities (how our costs/prices are set) and frequencies (how often we get repeat
Operations like inventory
management, delivery, after
Anyone who uses
Middle n High
Tie ups with other
IT ops, marketing, outsourcing costs,
Commission per sale, Ad business.
Let’s make one! for AmazonECommerce Business
13. Based on Pricing
1. Advertising - The goal is to generate revenues by selling advertising space.
Slightly more complex as the company ﬁrst need to invest in order to create a large audience
before it can attract advertisers.
2. Freemium -
3. Subscription - The company receives revenues from its subscribers at regular intervals.
The Drawback with it is that it often takes several months to recover the subscriber
acquisition costs leading to a lower cash generation at the beginning of the cycle.
The company offers 2 versions of its product. A free version with a limited set of features which
goals are either to raise awareness about the product or to create a network effect. And a paid
version, comprising more features, from which it can generate enough margin to cover the cost of
the free users.
The company acts as an intermediary between the seller and the buyer and takes a cut of
every sell it helps generate.
Such kind of businesses are called Multi sided markets/ Platform or Aggregators.
The company offers one product for free or at a price close to its production cost and generates a
proﬁt on the sale of accessories.