
Location:
The Hive Business Resource Center
140 Independence Blvd
Virginia Beach, VA 23462
The Business Model Canvas (BMC) is a strategic management tool that provides a visual framework for developing, describing, and analyzing business models. It is designed to help businesses map out the essential components of their operations and value propositions in a structured and intuitive way. The BMC consists of nine key building blocks:
- Customer Segments: Identifies the different groups of people or organizations a business aims to serve. It highlights the distinct needs and characteristics of each segment.
- Value Propositions: Describes the unique products or services that create value for each customer segment. It answers the question of why customers would choose the business over competitors.
- Channels: Outlines how a business delivers its value proposition to its customers. This includes the various touchpoints through which customers are reached, such as physical stores, online platforms, or direct sales.
- Customer Relationships: Defines the type of relationship a business establishes with each customer segment. This can range from personal assistance to automated services or community-building efforts.
- Revenue Streams: Explains how the business earns money from each customer segment. Revenue streams can include sales, subscriptions, licensing fees, or advertising.
- Key Resources: Lists the most important assets required to create and deliver the value proposition. This includes physical, intellectual, human, and financial resources.
- Key Activities: Describes the critical actions and processes the business must perform to deliver its value proposition, such as production, marketing, or research and development.
- Key Partnerships: Identifies the external organizations or suppliers that the business works with to achieve its objectives. These partnerships can provide resources, activities, or reduce risk.
- Cost Structure: Outlines the major costs involved in operating the business model. This includes expenses related to key resources, activities, and partnerships.
The Business Model Canvas is typically presented as a one-page diagram, with each of these nine blocks placed strategically on the canvas to provide a clear and comprehensive overview of how the business operates and delivers value. This tool is widely used for business planning, innovation, and alignment within teams.