The Revenue Streams: Osterwalder And Pigneur

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REVENUE STREAMS
The Revenue Streams represent the cash a company generates from each Customer Segment (Osterwalder & Pigneur, 2010). Lego derives revenue from the toy and play material, production and sales, and the licensing of its brands and intellectual properties. The 2016 Financial Year generated 37,934 (mDKK) in annual revenue, with the vast majority of revenue, consisting of the Sale of goods, compared to the Company’s licensing activities, which generated the balance of income (See Appendix C) (LEGO A/S, 2016).
KEY RESOURCES
Key Resources, identify the physical, financial, intellectual or human assets, necessary for making the business model work (Osterwalder & Pigneur, 2010). The Lego Group, as a toy and play material manufacturer, …show more content…

The Lego Group accomplishes this task through manufacturing, marketing, and selling toys and play materials, globally, to a consumer base spanning in all age groups. Lego licenses its brand and intellectual properties, for use in various forms of media, including video games, television programming, and motion pictures. The company further provides a range of signature products, basing its range on licensed franchise brands, including Star Wars and Winnie the Pooh (Wikia, Inc, 2017), its own proprietary brands, such as Ninjago, and non-franchise brand …show more content…

The major costs incurred by the Lego Group, before income tax, represent mostly from production costs, and further from sales and distribution, Administrative, and financial expenses. The 2016 financial year, saw Lego expenses total 25,558 (mDKK) (See Appendix D) (LEGO A/S, 2016). CONCLUSION
In conclusion, the BMC analysis identified strong points in the structure, which include the visual representation, aimed at making the business model design more simplistic and motivate different thoughts from business people. The BMC represents the centrality of capturing and delivering the value proposition, and the focus of creating value with revenue in return. Furthermore, the BMC acts as a function for communicating between business managers, business model designers, customers, and partners. Conversely, it recognises clear limitations, by the absence of external factors and the tool focusing internally, aimed at what, how, and when the company delivers products and limits detailed canvas descriptions. Further, the BMC excludes the business mission, vision, measurable goals and objectives, and a competitive strategy, for coping with external harm to the company, such as competition, market factors and other external

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