What is a business model?

It is a conceptual tool through a set of elements and their relationships expressed the logic by which a company plans to make money creating and delivering value to customers in a specific market. It also expresses the structure of the firm, its network of providers to create, market and bring that value to customers and sources of capital to generate profitable revenue.

Alexander Osterwalder established a new methodology from nine thematic blocks that enclose the main stakeholders of a business.

The center of this model is the value proposition aimed at a specific market channels and using a particular form of relationship with the respective customers.  This is described by the 3 blocks to the right

The blocks on the left You describe resources, the network of allies and all activities required to create, maintain and deliver the core value proposition.

Blockages in the lower part of the figure describes the flow of revenues and costs of the previous group.

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