Advantage Of A Business Model

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The business model is a business identity or blueprint for a business. "A business model describes the rational of how an organization creates, delivers, and captures value" (Osterwalder & Pigneur, 2010, p. 14). A business model is the force behind any business growth and development. All business arrangements and procedures are a linked to that particular model. According to Fielt (2013), a business model answers the following questions: Who is your client, what does the client esteem, and how would you convey an incentive at a suitable cost? The advantages of a business model include key points such as, maintaining emphasis on corporate objectives, inspecting operational practices and insuring consistency. An organization's plan of action can be used as advertising (PR) material and is essential to clients and associates. A statement of purpose or mission statement might be incorporated into a plan of action (Fielt, 2013).
Business Model in Depth Osterwalder & Pigneur (2010) states that there are nine essential building blocks that display the development of how an organization …show more content…

The types of relationships a company has with its clients help strengthen customer relationships. The target market of people a company aims to reach are customer segments. Value propositions can be defined as the quality of products or services that a company has in order to reach a specific target market. Key resources are resources that a given company can use to offer and create quality products for their consumers. Revenue streams are monies a company renders from its customers. Key activities are steps required by a company to operate successfully. Key partnerships are one of the driving forces to making the business model work. Lastly, the cost structure describes the costs incurred to operate a business model (Osterwalder & Pigneur,

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