Business Canvas Model
The Business Canvas Model is a Business Plan preparation tool that was developed on Alex Osterwalder and took an important place in the “Lean Entrepreneurship” mind led by Eric Ries.
This model has the 9 structure.
Summary information on this subject is below.
1 –Client Segments
These stand for the corporations or groups that a business aims to reach and serve.
Client segments can come in a wide variety.
Examples include;
Mass Market
Niche Market
Market in Separated Segments
Market in Diversity
Multilateral Platforms
2 –Value Proposition
It refers to a product or service packages that create a value for a certain client segment.
Novelty
Performance
Personification
Getting the work done
Design
Brand/Status
Price
Reduced Expense
Reduced Risk
Easy Access
Usefulness
3 –Channels
These refer to the ways a business employs to establish communication and reach out to the Client Segment that such business aims to provide a Value Offer.
Merchandising: Having a concrete location, they ensure that customers receive merchandise and services. Examples: BOYNER, İSTİKBAL.
Subscription: It is a model that aims to obtain income on a monthly or annual basis. Examples: D SMART, DIGITURK, FORBES MAGAZINE.
Fish meal & Fishing rod: Examples clarify what these refer to: cartridge selling by printer manufacturers, replaceable blade razors, selling mobile phones & prepaid plans.
Network Marketing: Sales conducted through distributor networking. Examples: COCA COLA, ÜLKER, P&G.
Direct Sale: A way of selling in which the manufacturer offers the product directly (first-hand) to the customer. Example: drop-ship.
Service: It is a business model based on customer satisfaction and loyalty. Examples: TOURISM, EDUCATION, RESTAURANTS.
After sale: It is linked to the ways through which the customer is provided after-sale support.
4 –Customer Relations
These refer to the different kinds of relationships that a company establishes with certain customer segments.
Personal assistance: Call centres and e-mailing.
Tailor made assistance: Private customer representative.
Self-service
Automatic Services: Online offers in line with shopping habits.
Communities: Establishing a community of diabetic patients and providing special service and care to them.
Co-investment: Service for providing criticism and presenting an opinion (in the way conducted by E-commerce companies).
5 –Revenue stream
It refers to the cash and method that a company gains from each different Customer Segments.
Product or Service Sale: Books, furniture and automobile.
Usage Fee: Communication services, renting a hotel room and natural gas fees.
Subscription Fee: Spotify, LinkedIn, fitness centres.
Renting: Automobile renting.
Licenced Usage: Music sale.
Intermediary Services: Real estate agency.
Advertising: Media sector.
6 –Key Sources
They refer to the most critical assets essential for conducting a certain business model.
Physical: Factory, storehouse, workplace.
Intellectual: SAP with licence income, Microsoft.
Human: Human Resources, experience people of Novartis.
Financial: It refers to how effectively a company has access to financial sources.
7 –Key Activities
As a cornerstone, they refer to the most important activities that a company should be involved in for processing the business model.
Manufacturing: High-quality designing, manufacturing and offering a product.
Problem solving: Consultancy, hospitals, educational institutions.
Platform/Network: Social networks, e-Bay, credit cards.
8 –Key Partnerships
As a cornerstone, these refer to a network made up of suppliers and partners that ensure the smooth progress of the business model.
Economies of Scale Optimisation: Outsourcing.
Strategical Cooperation: As an example, Blu-ray’s cooperating with personal computer manufacturers and digital media developers for developing the consumer electronics.
Management of Specific Sources and Activities: Examples include mobile phone manufacturers’ cooperating with service providers or insurance companies’ cooperating with agencies.
9 –Costs
It refers to all costs in relation to employing a business model.
Cost-driven Business Models: VESTEL, POLİNAS.
Value-driven Business Models: LUXURIOUS HOTELS.
Characteristic Cost Items
Fixed Costs: Rent, salaries.
Variable Costs: Raw material, fair organisation, festivals.
Economies of Scale: Increased turnover and reduced purchasing costs.
Economies of Scope: ÜLKER (a Turkish Brand)’s being able to distribute its each product with a distribution network.
BUSINESS PLAN
Now, we will integrate the Competitively Advantageous Elements into our Business Plan.
Examples:
- A unique way that will meet Niche Market needs
- Brand Recognition in Market
- Patents
- Registered Software or Technology
- A unique combination of products and services
- Creative and competent staff
- A prestige based on quality and novelty
THINK ABOUT THE EXIT IN THE BEGINING
- Merging with another company
- Acquisition of your company by another company
- Putting up your Company for Sale
- Franchising
- Share selling to the Employee
- Public Offering
You can see the details of Business Canvas Model : Strategyzer