What does a Business Model mean?
A business model describes the rationale of how an organization creates, delivers, and captures value.
We believe a business model can be better described through nine basic building blocks that show the logic of how company intends to make money.
THE 9 BUILDING BLOCKS by Alex OsterWalder
Customer Segments: An organization serves one or several Customer Segments.
Value Propositions: It seeks to solve customer problems and satisfy customer needs with value propositions.
Channels: Value propositions are delivered to customers through communication, distribution, and sales Channels.
Customer Relationships: Customer relationships are established and maintained with each Customer Segment.
Revenue Streams: Revenue streams result from value propositions successfully offered to customers.
Key Resources: Key resources are the assets required to offer and deliver the previously described elements…
Key Activities: … by performing a number of Key Activities.
Key Partnerships: Some activities are outsourced and some resources are acquired outside the enterprise.
Cost Structure: The business model elements result in the cost structure.
To know more: http://www.businessmodelalchemist.com/2005/11/what-is-business-model.html