International Business Administration students share their adventures and experiences at La Salle Campus Barcelona. Not to be missed!

01 June 2010 | Posted by Students of Business and Technology

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:


Add new comment

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
9 + 9 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.